Comerica Bank may lay off employees and is evaluating its properties as it undergoes a nearly $11 billion acquisition, the company confirmed to KERA in an email.
The news comes amidst a rapidly growing financial services sector in Dallas that city officials are hoping will attract businesses from Wall Street. The bank employs more than 1,000 people in Dallas and is headquartered in Comerica Bank Tower on 1717 Main St. in Downtown Dallas.
The decision isn't easy, but is necessary for sustainable growth, Comerica said in a statement to KERA.
“We are committed to treating all impacted employees with respect and providing resources to support them through this transition.”
A spokesperson for Fifth Third, the Ohio-based bank buying Comerica, told KERA in an email the company is evaluating its "real estate footprint" for efficiency.
“While some changes are expected, we remain committed to maintaining a strong presence in Dallas,” the spokesperson said.
Comerica Bank President and CEO Curt Farmer told The Dallas Morning News in October the company's future in downtown is “yet to be fully determined,” and the company was “discussing possibilities with our landlords.”
“Clearly we want to be in Dallas, but the question is what part of Dallas do you end up in?” Farmer told the Morning News.
If that means the company's thinking about relocating from downtown Dallas, it wouldn't be the first. AT&T, which employs over 10,000 people in Dallas, announced on Monday it would be relocating its headquarters from the city’s core to Plano.
Comerica moved into the Main Street tower in 2007 and is under an agreement to rent 222,000 square feet of office space until 2028, according to The Dallas Business Journal. The building owners plan to redevelop the tower to add residential and hotel space, removing more than half of the 1.5 million square feet of office space.
Comerica identified in September filings with the Securities and Exchange Commission potential issues it could run into as it merges with Fifth Third.
"We have incurred and expect to incur a number of costs associated with the Merger and the integration of our business with Fifth Third’s business," the filings reads. "These costs include (...) severance/employee benefit‐related costs, public company filing fees and other regulatory fees and financial printing and other related costs."
Comerica also notes uncertainty about the merger could affect business.
“Employee retention may be challenging for us before completion of the merger, as certain employees may experience uncertainty about their future roles with the combined company following the merger, and these retention challenges will require us to incur additional expenses in order to retain key employees,” according to the filing.
Dylan Duke is KERA's Breaking News Reporter. Got a tip? Email Dylan Duke at dduke@kera.org.
KERA News is made possible through the generosity of our members. If you find this reporting valuable, consider making a tax-deductible gift today. Thank you.
