Comerica (NYSE: $CMA) is a major US financial institution whose main areas of focus are small business banking, commercial banking, and wealth management. On Wednesday, it reported market-beating results. Let us take a closer look at those earnings and other recent developments around the bank.
Market Beating Results
In its Wednesday, January 21, 2026 earnings report, Comerica reported an adjusted EPS of $1.46 for Q4, beating estimates of $1.29. Revenue for Q$ was reported at $850 million, in line with estimates of $850.16 million.
Net income came in at $176 million, a 4% YoY increase, while revenue rose slightly YoY. The company reported $577 million in net interest income, a slight increase from the $575 reported last year. Its net interest margin increased to 3.07% from 3.06% last year. Its total loans rose to $50.8 billion in Q4, up from the $50.5 billion last year.
Pending Fifth Third Bancorp Merger
The market remained unmoved by the results, with investors focused on the Fifth Third Bancorp merger announced on October 6, 2025. The deal is ecpected to close in the first quarter of this year. On January 6, 2026, shareholders at both banks voted to approve the merger.
Fifth Third Bancorp (Nasdaq: FITB) plans to buy Comerica for $10.9 billion in an all-stock purchase. The deal is expected to close on February 1, 2026, and is one of the biggest consolidations in the banking sector since the 2023 regional banking crisis. Once finalized, it will make the new entity the ninth-biggest bank in the US, with around $290 billion in total assets.
Management expects an immediate impact on profitability metrics. They forecast net interest income of $8.6 billion to $8.8 billion. The goal is to capture a massive share of the middle-market business, with a focus on high-growth regions, such as the Sun Belt.
Investors are watching the merger closely as the closing date nears. Analysts expect annual cost savings of $850 million and a pivot towards digital-first banking across the legacy footprint of Comerica.
Comerica Wins Applause From Fed
Recently, the Federal Reserve Board awarded Comerica the best possible overall rating of Outstanding in the 2025 Community Reinvestment Act (CRA) Performance Evaluation. The act, passed in 1997, required the Fed and other federal banking regulators to encourage financial firms to help meet the credit needs of communities where they do business, including LMI areas.
Market Performance
Since the merger was announced on October 6, 2025, Comerica shares have risen 18.38%. That signals that the market is gradually pricing in the potential benefits of the merger. Its recent results have also had a positive impact on the stock price, with the price up 0.74% this week to $94.18 as of Friday, January 23, 2026, 1:30 PM in New York.
Year to date, the stock price is up 8.33%, while over the past six months, the price has risen 41.33%. Meanwhile, the stock price is up 50.60% in the past 52 weeks. The current price is above both the 50- and 200-day moving averages of $85.75 and $69.92, respectively.
Analysts are cautious about the future of CMA shares, giving them an overall hold rating. They forecast an average price of $94.13, which is a $0.88% downside based on the most recent closing price. The analysts forecast a wide range of prices, with a high of $144 and a low of $77.
Is Comerica A Buy Amid Recent Developments?
Following the regional banking crisis of 2023, Comerica was able to demonstrate its strength and long-term resilience to market shocks. Since then, it has stabilized, and the share price has surged over 50% in the past 52 weeks. Most notably, Comerica is set to be acquired by Fifth Third Bancorp in a deal expected to close in February 2026. For investors, adding CMA shares to your portfolio could potentially provide some medium-term returns amid the ongoing merger deal.
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