(Reuters) -U.S. bank Fifth Third on Monday agreed to buy regional lender Comerica ( CMA ) in an all-stock deal valued at $10.9 billion, aiming to expand its presence in key growth markets.

The deal will create a lender with combined assets of about $288 billion, making it the ninth-largest U.S. bank.

Comerica ( CMA ) shareholders will receive 1.8663 Fifth Third shares for each Comerica ( CMA ) share, valuing the deal at $82.88 per share based on Fifth Third's closing price on October 3.

Comerica ( CMA ) shares jumped 12% before the bell, while Fifth Third fell 2.6%.

A wave of consolidation is sweeping through the banking industry as lenders diversify revenue streams and prepare for lighter regulation under the Trump administration.

Regional lenders have been under pressure after last year's banking turmoil, prompting mergers aimed at strengthening balance sheets and expanding into faster-growing markets.

The deal expands Fifth Third's reach to 17 of the 20 fastest-growing U.S. markets, it said, including parts of the Southeast, Texas and California.

"This combination marks a pivotal moment for Fifth Third as we accelerate our strategy to build density in high-growth markets and deepen our commercial capabilities," said Fifth Third CEO Tim Spence in a statement.

The deal is expected to close by the end of the first quarter of 2026, after which Fifth Third shareholders will own about 73% of the combined company.

(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur)