Fifth Third-Comerica bolsters Texas deal activity

Group 1: M&A Activity Overview - U.S. bank M&A activity reached a four-year high in Q3 2023, with 52 bank deals announced, the largest quarterly number since Q3 2021 [2] - The aggregate deal value for Q3 was $16.63 billion, the highest since Q4 2021, with PNC's $4.1 billion acquisition of FirstBank accounting for 79% of September's total [3][4] - The largest bank deal of the year is Fifth Third's acquisition of Comerica for $10.9 billion, which will create the ninth-largest U.S.-based retail bank with approximately $288 billion in assets [4] Group 2: Texas Market Dynamics - Texas remains the most targeted state for bank mergers and acquisitions, driven by population and business growth, leading to increased M&A activity [6] - Notable transactions in Texas include Huntington Bank's acquisition of Veritex Holdings for $1.9 billion and Glacier Bank's acquisition of Guaranty Bancorp for $476.2 million [6] Group 3: Comerica's Strategic Moves - Comerica faced pressure from activist investor HoldCo Asset Management to sell itself to a larger bank due to perceived poor performance [7] - Comerica's executives have committed to revenue-boosting efforts and a thorough review of expenses [7] - Analysts suggest that Fifth Third's size and strength may mitigate Comerica's legacy issues [8]