Core Viewpoint - HoldCo Asset Management LP is challenging Comerica Inc. regarding its acquisition by Fifth Third Bancorp, labeling the sale process as "flawed" and demanding more transparency ahead of a shareholder vote scheduled for early January [1][2]. Group 1: Acquisition Details - Fifth Third Bancorp announced an all-stock acquisition of Comerica valued at $10.9 billion on October 6, following pressure from Comerica investors due to its underperformance in loan growth and cost management [3]. - The acquisition is seen as a strategic move for Fifth Third to accelerate its expansion efforts after years of building branches in the Southeast [3]. Group 2: Investor Concerns - HoldCo claims that Comerica did not conduct a competitive sale process and instead favored Fifth Third as a preferred bidder, which may not maximize shareholder value [2][4]. - The activist investor is requesting additional disclosures about the sale process, including details about another unidentified bidder that proposed a merger to Comerica's CEO in September [4][6]. Group 3: Negotiation and Valuation - HoldCo criticized Comerica for accepting Fifth Third's offer, which was at the low end of the valuation range, suggesting inadequate negotiation efforts [2][6]. - The initial proposal from Fifth Third indicated that Comerica shareholders would receive at least 1.8663 shares of Fifth Third common stock for each share of Comerica, raising questions about the negotiation process [6]. Group 4: Potential Legal Action - If Comerica does not provide the requested disclosures, HoldCo is considering legal action in the Delaware Court of Chancery to obtain this information and may also sue for breaching fiduciary duty related to the sale process [7]. - HoldCo currently holds approximately 2 million shares of Comerica, representing about 1.6% of the outstanding shares, and had previously urged the company to pursue an immediate sale [8].

Core Viewpoint - HoldCo Asset Management expresses dissatisfaction with Comerica's acquisition by Fifth Third Bancorp, labeling the sale as "flawed" and criticizing the lack of an independent, competitive process [2][3]. Group 1: Acquisition Details - Fifth Third Bancorp is set to acquire Comerica in a nearly $11 billion all-stock transaction, aimed at expanding its presence in the Southwest [4]. - The acquisition is part of a trend in regional banking mergers, including PNC Bank's acquisition of FirstBank for $4.1 billion [5]. Group 2: Investor Concerns - HoldCo, initially supportive of the deal, now demands further disclosures regarding the sale process, including the identity of another bidder and details of discussions with "Financial Institution A" [3]. - The report from HoldCo accuses Comerica of not engaging with unsolicited proposals from the competing bidder and failing to disclose a competing bid [3]. Group 3: Strategic Implications - The merger is expected to facilitate technology integration, consolidating core systems and enhancing data analytics and payments infrastructure, which could lower costs and improve operational flexibility [6].

Core Viewpoint - The law firm Wohl & Fruchter LLP is investigating the fairness of the proposed merger between Comerica Incorporated and Fifth Third Bancorp, focusing on the exchange ratio and the sales process leading to the merger [1][3][8] Summary by Sections Merger Details - Comerica stockholders will receive 1.8663 shares of Fifth Third stock for each Comerica share, implying a sale price of $82.88 per share based on Fifth Third's closing price on October 3, 2025 [2][5] - The stock price of Fifth Third has declined since the merger announcement, reducing the value of the consideration for Comerica stockholders [2][6] Allegations and Concerns - HoldCo Asset Management has alleged that the sales process was flawed, lacking an independent and competitive process, and suggested that Comerica favored Fifth Third as a bidder [3][7] - HoldCo's 65-page presentation claims that Comerica did not conduct an open process to maximize shareholder value [3][7] Investigation Focus - The investigation by Wohl & Fruchter LLP aims to determine if the Comerica Board acted in the best interests of shareholders, including the fairness of the exchange ratio and the completeness of information disclosed regarding the transaction [8]

Core Viewpoint - HoldCo Asset Management is urging Comerica to provide more transparency regarding its planned sale to Fifth Third Bancorp, labeling the sales process as "flawed" [3] Group 1: Company Actions - HoldCo Asset Management has been advocating for Comerica to pursue a sale earlier this year [3] - The request for additional details indicates concerns over the adequacy of the sales process [3] Group 2: Market Reactions - The criticism from HoldCo may impact investor confidence in Comerica's strategic decisions [3]

HoldCo is demanding that Comerica release additional details on its deal to be acquired by Fifth Third, calling the sale process “flawed” ahead of a shareholder vote https://t.co/Xn3bbVEuWh ...

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with high potential for market outperformance [3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] - Each stock receives a rating from A to F based on its characteristics, with A indicating the highest potential for outperformance [3] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [5] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [6] VGM Score - Combines Value, Growth, and Momentum Scores to provide a comprehensive assessment of stocks [7] Zacks Rank Integration - The Zacks Rank leverages earnings estimate revisions to guide investors in building successful portfolios [8] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, averaging a +23.93% annual return since 1988 [8] Stock Selection Strategy - For optimal returns, investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as declining forecasts can indicate potential price drops [11] Company Spotlight: Fifth Third Bancorp - Fifth Third Bancorp has assets of $209.9 billion and operates 1,087 banking centers across 11 states [12] - Currently rated 3 (Hold) with a VGM Score of B, it has a Momentum Style Score of B and a recent share price increase of 0.7% [12][13] - The Zacks Consensus Estimate for fiscal 2025 is $3.52 per share, with an average earnings surprise of +4.5% [13]

Core Viewpoint - Companies with a strong history of dividend payments and consistent increases are attractive to income-focused investors, with Virtus Investment, Fifth Third Bancorp, and VICI Properties recently announcing dividend hikes and offering yields up to nearly 6% [1] Group 1: Virtus Investment Partners - Virtus Investment Partners Inc. is an asset management company providing investment products and services to individual and institutional clients [2] - The company has raised its dividends every year for the last eight years, with a recent increase of 7% to $2.40 per share, resulting in an annual figure of $9.60 per share, leading to a current dividend yield of 5.99% [3] - As of June 30, the annual revenue stood at $884.72 million, with Q3 2025 revenues of $216.38 million reported on Oct. 24, surpassing the consensus estimate of $197.11 million, while EPS of $6.69 was slightly below the consensus of $6.75 [4] Group 2: Fifth Third Bancorp - Fifth Third Bancorp operates as the bank holding company for Fifth Third Bank in the U.S. [4] - The company has consecutively raised its dividends for the last 10 years, with an 8% increase in the most recent announcement to $0.40 per share, equating to an annual figure of $1.60 per share, resulting in a current dividend yield of 3.85% [5] - As of June 30, the annual revenue was $8.45 billion, with Q3 2025 revenues of $2.31 billion and EPS of $0.93, both exceeding market expectations [5] Group 3: VICI Properties - VICI Properties Inc. is a real estate investment trust specializing in casino and entertainment properties [6] - The company has increased its dividends every year for the last eight years, with a recent hike from $0.4325 to $0.45 per share, leading to an annual figure of $1.80 per share and a current dividend yield of 5.98% [7]

Company Overview - Fifth Third is headquartered in Cincinnati, Ohio, and has approximately $200 billion in assets [1] - The company operates in three principal segments: commercial banking, consumer and small business, and wealth and asset management [1] - Fifth Third demonstrates strong profitability metrics, with an ROTCE of about 18% and an ROA of 1.25% [1] - Noninterest-bearing deposits constitute 25% of total deposits, indicating a favorable funding structure [1] - The company's valuation is at 10.5 times next year's earnings [1] Leadership - Bryan Preston serves as the Executive Vice President and Chief Financial Officer, responsible for functions including FP&A, corporate development, accounting, and tax [2] - Preston was appointed CFO in January 2024 after four years as Treasurer and has been with Fifth Third since 2003 [2][3] - Jamie Leonard is the Chief Operating Officer, overseeing areas such as retail banking, consumer lending, business controls, marketing, operations, and strategy [3] - Leonard became COO in January 2024 after three years as CFO and previously held the position of Chief Risk Officer at Struthers [3] Strategic Direction - The company has historically focused on organic growth rather than mergers and acquisitions (M&A) [4] - The recent interest in pursuing the Comerica acquisition marks a strategic shift, prompting questions about its alignment with the company's overall strategy [4]

Summary of Fifth Third Bancorp Conference Call (November 07, 2025) Company Overview - **Company**: Fifth Third Bancorp (NasdaqGS:FITB) - **Headquarters**: Cincinnati, Ohio - **Assets**: Approximately $200 billion - **Segments**: - Commercial Banking - Consumer and Small Business - Wealth and Asset Management - **Profitability Metrics**: - ROTCE: ~18% - ROA: ~1.25% - **Deposits**: Non-interest bearing deposits constitute 25% of total deposits - **Valuation**: 10.5 times next year's earnings [1][1][1] Acquisition of Comerica - **Strategic Rationale**: - Fifth Third has historically focused on organic growth but sees the acquisition of Comerica as a strategic opportunity to enhance its retail and middle market banking capabilities [4][5][6] - The acquisition aims to leverage Fifth Third's strengths in branch building and deposit growth to enhance Comerica's platform for future growth, particularly in the Texas market [6][6][6] - **Cultural Alignment**: Emphasis on ensuring cultural alignment between Fifth Third and Comerica to facilitate integration and customer service [5][5][5] - **Growth Potential**: The acquisition is expected to create a pathway for growth over the next five to ten years, shifting the growth profile from a Midwest focus to include Texas [6][6][6] Integration Lessons from Previous Acquisitions - **MBFI Transaction Insights**: - Successful early appointment of regional leadership was crucial for retention and integration [9][9][9] - The importance of a longer integration window was highlighted, with plans for a seven-month window for the Comerica integration compared to a tighter timeline in the MBFI deal [10][10][10] - Emphasis on careful management of customer data and fraud controls during integration [12][12][12] Market Expansion Plans - **Texas Market**: - Plans to invest in 150 new branches in Texas by 2029, with a focus on Dallas and Houston [22][22][22] - The goal is to achieve a top five market share in key Texas cities [23][23][23] - **Southeast Expansion**: - Continuing to open new branches in the Southeast, with 50 planned for 2026 and a total of 200 by the end of 2028 [25][25][25] - The Southeast program has shown strong performance, with new branches exceeding deposit goals [26][26][26] Financial Strategy and Capital Management - **Balance Sheet Composition**: - Fifth Third aims to maintain a balance of retail deposits, targeting around 60% of funding from insured retail deposits [19][19][19] - The acquisition of Comerica is expected to help achieve a more balanced funding mix [20][20][20] - **Capital Plans**: - No material impact on capital plans from the acquisition; share repurchases are expected to resume shortly after the deal closes [33][33][33] - Targeting a CET1 ratio of 10.5% and maintaining a marked capital ratio above 9% [34][34][34] Regulatory Environment and Innovation - **Regulatory Changes**: - The current regulatory environment is seen as more conducive to facilitating acquisitions and innovation in the banking sector [46][46][46] - Fifth Third is positioned to leverage partnerships with innovative companies in the payments space [47][47][47] Direct Express Program - **Growth Opportunities**: - The acquisition will allow Fifth Third to own the BINs for the Direct Express program, simplifying conversion for participants [49][49][49] - The program is expected to benefit from the government's push towards digital payments, creating long-term growth opportunities [50][50][50] NDFI Lending Exposure - **Portfolio Overview**: - Fifth Third's NDFI portfolio is valued at $10.2 billion, with a focus on warehouse-related facilities and traditional corporate credit [54][54][54] - The bank has maintained a strong credit performance in its primary portfolios, with no credit losses in over a decade [56][56][56] - **Cautious Approach**: - The bank remains cautious about expanding into newer asset classes within NDFI lending, focusing on established partnerships [57][57][57] Conclusion - Fifth Third Bancorp is strategically positioned for growth through the acquisition of Comerica, with a focus on enhancing its retail and middle market banking capabilities while maintaining a strong emphasis on cultural alignment and integration. The company is also well-prepared to navigate regulatory changes and leverage innovation in the financial sector.

Core Viewpoint - Fifth Third Bancorp's acquisition of Comerica for $10.9 billion marks a significant shift in the regional banking landscape, driven by favorable conditions for bank mergers and acquisitions under the Trump administration [1][8]. Group 1: Acquisition Details - The acquisition will create the ninth-largest bank in the U.S., with total assets of $288 billion [2]. - Fifth Third will gain the No. 1 retail-deposit franchise in Michigan and expand its presence in rapidly growing markets like Texas [2]. - Post-acquisition, the combined bank will have over two-thirds of its loan portfolio in commercial real estate and commercial and industrial loans, along with strong fee-based businesses in commercial payments and asset management [3]. Group 2: Financial Implications - Fifth Third asserts that the acquisition will not dilute its tangible book value or net worth, which is a positive indicator for investors [6][8]. - The bank plans to reduce approximately 35% of Comerica's expenses, a common strategy in bank acquisitions [6]. - The deal is projected to be 9% accretive to earnings by 2027 and yield a 22% internal rate of return, assuming no revenue synergies [6]. Group 3: Management Expectations - Management anticipates that the acquisition will enhance Fifth Third's return profile, increasing return on assets to between 1.3% and 1.4%, and return on tangible common equity (ROTCE) to 19% or higher [7].