Two significant bank mergers have been announced this month that will impact the banking scene in the Midwest and beyond. First, Comerica and Fifth Third announced their $10.9 billion dollar transaction. The surviving Fifth Third will have $288 billion in combined assets and $224 billion in deposits. It is expected to be the 9th largest bank measured by assets managed upon its expected closing in Q1 2026.
Now we learn that Huntington Bank (through its parent company, Huntington Bancshares Incorporated), will acquire Cadence Bank, expanding its reach throughout the southeast United States all the way over to Texas. The new Huntington won’t be far behind Fifth Third, with $276 billion in combined assets and $220 billion in deposits. When announcing the deal, Huntington asserted that it will become a top ten bank. This is also anticipated to close in Q1 2026.
Although Comerica left its Michigan headquarters for Texas years ago, these two announcements just solidify the dominance of Ohio as a financial hub and home to many big banks. (Fifth Third is headquartered in Cincinnati and Huntington’s home is Columbus.) We in Michigan will try not to dwell on that for too long.
You may recall our blogs of 2024 discussing the proposed and then final rules of the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). Those rules were widely understood as impediments to large-scale bank merger activity. Higher scrutiny. No more streamlined or expedited processes. The Federal Reserve was expected to follow suit, although not with formal rules. The FDIC regulates state-chartered banks that are not members of the Federal Reserve System, and the OCC regulates national banks and federal savings associations.
So why are these big transactions occurring now? There’s one answer: the new administration. Generally perceived as friendlier to the financial sector, big business, and deal-making, the administration acted quickly to rescind those new OCC and FDIC rules.
Although each of these deals must be approved by the appropriate regulators, it’s widely expected that they will be approved. After all, Capital One’s acquisition of Discover was approved earlier this year. These are just some of the many consequences of an election, and they are resulting in a major shift in the banking landscape. Expect more to follow.
The Banking and Financial Institutions Team at Dalton & Tomich has decades of experience in all phases of the process, including transactions, workouts, litigation, and regulatory compliance. Contact us today to learn more.
