Delaware | 1-10706 | 38-1998421 | ||||||
------------ | ------------ | ------------ | ||||||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $5 par value | CMA | New York Stock Exchange |
Emerging growth company | ☐ |
(dollar amounts in millions, except per share data) | 1st Qtr '24 | 4th Qtr '23 | 1st Qtr '23 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 548 | $ | 584 | $ | 708 | |||||||||||
Provision for credit losses | 14 | 12 | 30 | ||||||||||||||
Noninterest income | 236 | 198 | 282 | ||||||||||||||
Noninterest expenses | 603 | 718 | 551 | ||||||||||||||
Pre-tax income | 167 | 52 | 409 | ||||||||||||||
Provision for income taxes | 29 | 19 | 85 | ||||||||||||||
Net income | $ | 138 | $ | 33 | $ | 324 | |||||||||||
Diluted earnings per common share | $ | 0.98 | $ | 0.20 | $ | 2.39 | |||||||||||
Average loans | 51,372 | 52,796 | 53,468 | ||||||||||||||
Average deposits | 65,310 | 66,045 | 67,833 | ||||||||||||||
Return on average assets (ROA) | 0.66 | % | 0.15 | % | 1.54 | % | |||||||||||
Return on average common shareholders' equity (ROE) | 9.33 | 2.17 | 24.20 | ||||||||||||||
Net interest margin | 2.80 | 2.91 | 3.57 | ||||||||||||||
Efficiency ratio (a) | 76.91 | 91.86 | 55.53 | ||||||||||||||
Common equity Tier 1 capital ratio (b) | 11.47 | 11.09 | 10.12 | ||||||||||||||
Tier 1 capital ratio (b) | 12.01 | 11.60 | 10.61 | ||||||||||||||
(dollar amounts in millions, except per share data) | 1st Qtr '24 | 4th Qtr '23 | 1st Qtr '23 | ||||||||||||||
Diluted earnings per common share | $ | 0.98 | $ | 0.20 | $ | 2.39 | |||||||||||
Net BSBY cessation hedging losses (a) |
0.21 | 0.51 | — | ||||||||||||||
FDIC special assessment (b) |
0.09 | 0.62 | — | ||||||||||||||
Modernization initiatives (c) |
0.02 | (0.01) | 0.09 | ||||||||||||||
Expense recalibration initiatives (d) |
(0.01) | 0.14 | — | ||||||||||||||
Adjusted diluted earnings per common share | $ | 1.29 | $ | 1.46 | $ | 2.48 | |||||||||||
Net income attributable to common shareholders | $ | 131 | $ | 27 | $ | 317 | |||||||||||
Net BSBY cessation hedging losses (a) |
36 | 88 | — | ||||||||||||||
FDIC special assessment (b) |
16 | 109 | — | ||||||||||||||
Modernization initiatives (c) |
4 | (4) | 16 | ||||||||||||||
Expense recalibration initiatives (d) |
(3) | 25 | — | ||||||||||||||
Income tax impact of above items | (13) | (52) | (4) | ||||||||||||||
Adjusted net income attributable to common shareholders | $ | 171 | $ | 193 | $ | 329 | |||||||||||
ROA | 0.66 | % | 0.15 | % | 1.54 | % | |||||||||||
Adjusted ROA | 0.86 | 0.94 | 1.60 | ||||||||||||||
ROE | 9.33 | 2.17 | 24.20 | ||||||||||||||
Adjusted ROE | 12.22 | 15.47 | 25.12 |
(dollar amounts in millions) | 1st Qtr '24 | 4th Qtr '23 | 1st Qtr '23 | ||||||||||||||
Net interest income | $ | 548 | $ | 584 | $ | 708 | |||||||||||
Net interest margin | 2.80 | % | 2.91 | % | 3.57 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 75,807 | $ | 76,167 | $ | 77,375 | |||||||||||
Total loans | 51,372 | 52,796 | 53,468 | ||||||||||||||
Total investment securities | 16,328 | 16,289 | 18,766 | ||||||||||||||
Federal Reserve Bank deposits | 7,526 | 6,456 | 4,839 | ||||||||||||||
Total deposits | 65,310 | 66,045 | 67,833 | ||||||||||||||
Total noninterest-bearing deposits | 26,408 | 27,814 | 36,251 | ||||||||||||||
Short-term borrowings | 2,581 | 4,002 | 5,454 | ||||||||||||||
Medium- and long-term debt | 6,903 | 6,070 | 3,832 |
(dollar amounts in millions) | 1st Qtr '24 | 4th Qtr '23 | 1st Qtr '23 | ||||||||||||||
Charge-offs | $ | 21 | $ | 25 | $ | 12 | |||||||||||
Recoveries | 7 | 5 | 14 | ||||||||||||||
Net charge-offs (recoveries) | 14 | 20 | (2) | ||||||||||||||
Net charge-offs (recoveries)/Average total loans | 0.10 | % | 0.15 | % | (0.01 | %) | |||||||||||
Provision for credit losses | $ | 14 | $ | 12 | $ | 30 | |||||||||||
Nonperforming loans and nonperforming assets (NPAs) | 217 | 178 | 221 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.43 | % | 0.34 | % | 0.40 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 32 | $ | 20 | $ | 20 | |||||||||||
Allowance for loan losses | 691 | 688 | 641 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 37 | 40 | 52 | ||||||||||||||
Total allowance for credit losses | 728 | 728 | 693 | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.43 | % | 1.40 | % | 1.26 | % | |||||||||||
Allowance for credit losses/Nonperforming loans | 3.4x | 4.1x | 3.1x |
Media Contacts: | Investor Contacts: | ||||
Nicole Hogan | Kelly Gage | ||||
(214) 462-6657 | (833) 571-0486 | ||||
Louis H. Mora | Morgan Mathers | ||||
(214) 462-6669 | (833) 571-0486 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | |||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||
Three Months Ended | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(in millions, except per share data) | 2024 | 2023 | 2023 | ||||||||
PER COMMON SHARE AND COMMON STOCK DATA | |||||||||||
Diluted earnings per common share | $ | 0.98 | $ | 0.20 | $ | 2.39 | |||||
Cash dividends declared | 0.71 | 0.71 | 0.71 | ||||||||
Average diluted shares (in thousands) | 133,369 | 132,756 | 132,489 | ||||||||
PERFORMANCE RATIOS | |||||||||||
Return on average common shareholders' equity | 9.33 | % | 2.17 | % | 24.20 | % | |||||
Return on average assets | 0.66 | 0.15 | 1.54 | ||||||||
Efficiency ratio (a) | 76.91 | 91.86 | 55.53 | ||||||||
CAPITAL | |||||||||||
Common equity tier 1 capital (b), (c) | $ | 8,469 | $ | 8,414 | $ | 8,124 | |||||
Tier 1 capital (b), (c) | 8,863 | 8,808 | 8,518 | ||||||||
Risk-weighted assets (b) | 73,821 | 75,901 | 80,251 | ||||||||
Common equity tier 1 capital ratio (b), (c) | 11.47 | % | 11.09 | % | 10.12 | % | |||||
Tier 1 capital ratio (b), (c) | 12.01 | 11.60 | 10.61 | ||||||||
Total capital ratio (b) | 13.98 | 13.52 | 12.57 | ||||||||
Leverage ratio (b) | 10.23 | 10.06 | 9.71 | ||||||||
Common shareholders' equity per share of common stock | $ | 42.69 | $ | 45.58 | $ | 42.57 | |||||
Tangible common equity per share of common stock (c) | 37.84 | 40.70 | 37.68 | ||||||||
Common equity ratio | 7.12 | % | 7.00 | % | 6.15 | % | |||||
Tangible common equity ratio (c) | 6.36 | 6.30 | 5.48 | ||||||||
AVERAGE BALANCES | |||||||||||
Commercial loans | $ | 26,451 | $ | 28,163 | $ | 30,517 | |||||
Real estate construction loans | 5,174 | 4,798 | 3,345 | ||||||||
Commercial mortgage loans | 13,642 | 13,706 | 13,464 | ||||||||
Lease financing | 810 | 794 | 765 | ||||||||
International loans | 1,141 | 1,169 | 1,226 | ||||||||
Residential mortgage loans | 1,882 | 1,902 | 1,833 | ||||||||
Consumer loans | 2,272 | 2,264 | 2,318 | ||||||||
Total loans | 51,372 | 52,796 | 53,468 | ||||||||
Earning assets | 75,807 | 76,167 | 77,375 | ||||||||
Total assets | 83,617 | 84,123 | 85,138 | ||||||||
Noninterest-bearing deposits | 26,408 | 27,814 | 36,251 | ||||||||
Interest-bearing deposits | 38,902 | 38,231 | 31,582 | ||||||||
Total deposits | 65,310 | 66,045 | 67,833 | ||||||||
Common shareholders' equity | 5,683 | 4,947 | 5,334 | ||||||||
Total shareholders' equity | 6,077 | 5,341 | 5,728 | ||||||||
NET INTEREST INCOME | |||||||||||
Net interest income | $ | 548 | $ | 584 | $ | 708 | |||||
Net interest margin | 2.80 | % | 2.91 | % | 3.57 | % | |||||
CREDIT QUALITY | |||||||||||
Nonperforming assets | $ | 217 | $ | 178 | $ | 221 | |||||
Loans past due 90 days or more and still accruing | 32 | 20 | 20 | ||||||||
Net charge-offs (recoveries) | 14 | 20 | (2) | ||||||||
Allowance for loan losses | 691 | 688 | 641 | ||||||||
Allowance for credit losses on lending-related commitments | 37 | 40 | 52 | ||||||||
Total allowance for credit losses | 728 | 728 | 693 | ||||||||
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.40 | % | 1.26 | % | |||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.10 | 0.15 | (0.01) | ||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.43 | 0.34 | 0.40 | ||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.4x | 4.1x | 3.1x | ||||||||
OTHER KEY INFORMATION | |||||||||||
Number of banking centers | 408 | 408 | 410 | ||||||||
Number of employees - full time equivalent | 7,619 | 7,701 | 7,586 |
CONSOLIDATED BALANCE SHEETS | |||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(in millions, except share data) | 2024 | 2023 | 2023 | ||||||||
(unaudited) | (unaudited) | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 689 | $ | 1,443 | $ | 1,563 | |||||
Interest-bearing deposits with banks | 4,446 | 8,059 | 9,171 | ||||||||
Other short-term investments | 366 | 399 | 354 | ||||||||
Investment securities available-for-sale | 16,246 | 16,869 | 18,295 | ||||||||
Commercial loans | 26,019 | 27,251 | 31,630 | ||||||||
Real estate construction loans | 4,558 | 5,083 | 3,567 | ||||||||
Commercial mortgage loans | 14,266 | 13,686 | 13,592 | ||||||||
Lease financing | 793 | 807 | 766 | ||||||||
International loans | 1,070 | 1,102 | 1,233 | ||||||||
Residential mortgage loans | 1,889 | 1,889 | 1,822 | ||||||||
Consumer loans | 2,227 | 2,295 | 2,316 | ||||||||
Total loans | 50,822 | 52,113 | 54,926 | ||||||||
Allowance for loan losses | (691) | (688) | (641) | ||||||||
Net loans | 50,131 | 51,425 | 54,285 | ||||||||
Premises and equipment | 462 | 445 | 399 | ||||||||
Accrued income and other assets | 7,104 | 7,194 | 7,060 | ||||||||
Total assets | $ | 79,444 | $ | 85,834 | $ | 91,127 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Noninterest-bearing deposits | $ | 25,833 | $ | 27,849 | $ | 33,173 | |||||
Money market and interest-bearing checking deposits | 28,550 | 28,246 | 24,323 | ||||||||
Savings deposits | 2,342 | 2,381 | 2,998 | ||||||||
Customer certificates of deposit | 3,941 | 3,723 | 2,077 | ||||||||
Other time deposits | 2,894 | 4,550 | 2,116 | ||||||||
Foreign office time deposits | 18 | 13 | 19 | ||||||||
Total interest-bearing deposits | 37,745 | 38,913 | 31,533 | ||||||||
Total deposits | 63,578 | 66,762 | 64,706 | ||||||||
Short-term borrowings | — | 3,565 | 11,016 | ||||||||
Accrued expenses and other liabilities | 2,695 | 2,895 | 2,327 | ||||||||
Medium- and long-term debt | 7,121 | 6,206 | 7,084 | ||||||||
Total liabilities | 73,394 | 79,428 | 85,133 | ||||||||
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: | |||||||||||
Authorized - 4,000 shares | |||||||||||
Issued - 4,000 shares | 394 | 394 | 394 | ||||||||
Common stock - $5 par value: | |||||||||||
Authorized - 325,000,000 shares | |||||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||||
Capital surplus | 2,202 | 2,224 | 2,209 | ||||||||
Accumulated other comprehensive loss | (3,457) | (3,048) | (3,171) | ||||||||
Retained earnings | 11,765 | 11,727 | 11,476 | ||||||||
Less cost of common stock in treasury - 95,683,776 shares at 3/31/24, 96,266,568 shares at 12/31/23, 96,631,155 shares at 3/31/23 |
(5,995) | (6,032) | (6,055) | ||||||||
Total shareholders' equity | 6,050 | 6,406 | 5,994 | ||||||||
Total liabilities and shareholders' equity | $ | 79,444 | $ | 85,834 | $ | 91,127 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | First Quarter 2024 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Fourth Quarter 2023 | First Quarter 2023 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2024 | 2023 | 2023 | 2023 | 2023 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 808 | $ | 849 | $ | 862 | $ | 852 | $ | 777 | $ | (41) | (5 | %) | $ | 31 | 4 | % | |||||||||||||||||
Interest on investment securities | 102 | 104 | 105 | 108 | 113 | (2) | (2) | (11) | (10) | ||||||||||||||||||||||||||
Interest on short-term investments | 109 | 96 | 136 | 114 | 59 | 13 | 14 | 50 | 84 | ||||||||||||||||||||||||||
Total interest income | 1,019 | 1,049 | 1,103 | 1,074 | 949 | (30) | (3) | 70 | 7 | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 317 | 302 | 271 | 201 | 118 | 15 | 5 | 199 | n/m | ||||||||||||||||||||||||||
Interest on short-term borrowings | 37 | 58 | 125 | 142 | 66 | (21) | (36) | (29) | (44) | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 117 | 105 | 106 | 110 | 57 | 12 | 11 | 60 | n/m | ||||||||||||||||||||||||||
Total interest expense | 471 | 465 | 502 | 453 | 241 | 6 | 1 | 230 | 95 | ||||||||||||||||||||||||||
Net interest income | 548 | 584 | 601 | 621 | 708 | (36) | (6) | (160) | (23) | ||||||||||||||||||||||||||
Provision for credit losses | 14 | 12 | 14 | 33 | 30 | 2 | 23 | (16) | (52) | ||||||||||||||||||||||||||
Net interest income after provision
for credit losses
|
534 | 572 | 587 | 588 | 678 | (38) | (7) | (144) | (21) | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 66 | 68 | 71 | 72 | 69 | (2) | (3) | (3) | (4) | ||||||||||||||||||||||||||
Fiduciary income | 51 | 56 | 59 | 62 | 58 | (5) | (7) | (7) | (12) | ||||||||||||||||||||||||||
Service charges on deposit accounts | 45 | 45 | 47 | 47 | 46 | — | — | (1) | (2) | ||||||||||||||||||||||||||
Capital markets income | 30 | 34 | 35 | 39 | 39 | (4) | (12) | (9) | (23) | ||||||||||||||||||||||||||
Commercial lending fees | 16 | 17 | 19 | 18 | 18 | (1) | (4) | (2) | (11) | ||||||||||||||||||||||||||
Letter of credit fees | 10 | 11 | 10 | 11 | 10 | (1) | (4) | — | — | ||||||||||||||||||||||||||
Bank-owned life insurance | 10 | 10 | 12 | 14 | 10 | — | — | — | — | ||||||||||||||||||||||||||
Brokerage fees | 10 | 8 | 6 | 8 | 8 | 2 | 15 | 2 | 30 | ||||||||||||||||||||||||||
Risk management hedging (loss) income | (25) | (74) | 17 | 7 | 8 | 49 | (66) | (33) | n/m | ||||||||||||||||||||||||||
Other noninterest income | 23 | 23 | 19 | 25 | 16 | — | — | 7 | 42 | ||||||||||||||||||||||||||
Total noninterest income | 236 | 198 | 295 | 303 | 282 | 38 | 19 | (46) | (17) | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 348 | 359 | 315 | 306 | 326 | (11) | (3) | 22 | 7 | ||||||||||||||||||||||||||
Outside processing fee expense | 68 | 70 | 75 | 68 | 64 | (2) | (2) | 4 | 7 | ||||||||||||||||||||||||||
Software expense | 44 | 44 | 44 | 43 | 40 | — | — | 4 | 9 | ||||||||||||||||||||||||||
Occupancy expense | 44 | 45 | 44 | 41 | 41 | (1) | (3) | 3 | 6 | ||||||||||||||||||||||||||
FDIC insurance expense | 36 | 132 | 19 | 16 | 13 | (96) | (73) | 23 | n/m | ||||||||||||||||||||||||||
Equipment expense | 12 | 14 | 12 | 12 | 12 | (2) | (11) | — | — | ||||||||||||||||||||||||||
Advertising expense | 8 | 10 | 12 | 10 | 8 | (2) | (22) | — | — | ||||||||||||||||||||||||||
Other noninterest expenses | 43 | 44 | 34 | 39 | 47 | (1) | (2) | (4) | (7) | ||||||||||||||||||||||||||
Total noninterest expenses | 603 | 718 | 555 | 535 | 551 | (115) | (16) | 52 | 10 | ||||||||||||||||||||||||||
Income before income taxes | 167 | 52 | 327 | 356 | 409 | 115 | n/m | (242) | (59) | ||||||||||||||||||||||||||
Provision for income taxes | 29 | 19 | 76 | 83 | 85 | 10 | 52 | (56) | (67) | ||||||||||||||||||||||||||
NET INCOME | 138 | 33 | 251 | 273 | 324 | 105 | n/m | (186) | (58) | ||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Income allocated to participating securities | 1 | — | 1 | 2 | 1 | 1 | 44 | — | — | ||||||||||||||||||||||||||
Preferred stock dividends | 6 | 6 | 6 | 5 | 6 | — | — | — | — | ||||||||||||||||||||||||||
Net income attributable to common shares | $ | 131 | $ | 27 | $ | 244 | $ | 266 | $ | 317 | $ | 104 | n/m | $ | (186) | (59 | %) | ||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.99 | $ | 0.20 | $ | 1.85 | $ | 2.02 | $ | 2.41 | $ | 0.79 | n/m | $ | (1.42) | (59 | %) | ||||||||||||||||||
Diluted | 0.98 | 0.20 | 1.84 | 2.01 | 2.39 | 0.78 | n/m | (1.41) | (59) | ||||||||||||||||||||||||||
Comprehensive (loss) income | (271) | 1,525 | (533) | (312) | 895 | (1,796) | n/m | (1,166) | n/m | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 94 | 93 | 94 | 94 | 94 | 1 | — | — | — | ||||||||||||||||||||||||||
Cash dividends declared per common share | 0.71 | 0.71 | 0.71 | 0.71 | 0.71 | — | — | — | — |
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Balance at beginning of period: | ||||||||||||||||||||
Allowance for loan losses | $ | 688 | $ | 694 | $ | 684 | $ | 641 | $ | 610 | ||||||||||
Allowance for credit losses on lending-related commitments | 40 | 42 | 44 | 52 | 51 | |||||||||||||||
Allowance for credit losses | 728 | 736 | 728 | 693 | 661 | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 20 | 13 | 9 | 9 | 11 | |||||||||||||||
Commercial mortgage | — | 1 | 3 | — | — | |||||||||||||||
International | — | 11 | 1 | 1 | — | |||||||||||||||
Consumer | 1 | — | 1 | 1 | 1 | |||||||||||||||
Total loan charge-offs | 21 | 25 | 14 | 11 | 12 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 6 | 3 | 5 | 12 | 13 | |||||||||||||||
Commercial mortgage | — | 2 | 2 | 1 | — | |||||||||||||||
Consumer | 1 | — | 1 | — | 1 | |||||||||||||||
Total recoveries | 7 | 5 | 8 | 13 | 14 | |||||||||||||||
Net loan charge-offs (recoveries) | 14 | 20 | 6 | (2) | (2) | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | 17 | 14 | 16 | 41 | 29 | |||||||||||||||
Provision for credit losses on lending-related commitments | (3) | (2) | (2) | (8) | 1 | |||||||||||||||
Provision for credit losses | 14 | 12 | 14 | 33 | 30 | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 691 | 688 | 694 | 684 | 641 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 37 | 40 | 42 | 44 | 52 | |||||||||||||||
Allowance for credit losses | $ | 728 | $ | 728 | $ | 736 | $ | 728 | $ | 693 | ||||||||||
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.40 | % | 1.38 | % | 1.31 | % | 1.26 | % | ||||||||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.10 | 0.15 | 0.05 | (0.01) | (0.01) | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 88 | $ | 75 | $ | 83 | $ | 93 | $ | 134 | ||||||||||
Real estate construction | — | 2 | 2 | 2 | 3 | |||||||||||||||
Commercial mortgage | 67 | 41 | 30 | 37 | 24 | |||||||||||||||
International | 16 | 20 | 3 | 4 | 3 | |||||||||||||||
Total nonperforming business loans | 171 | 138 | 118 | 136 | 164 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 23 | 19 | 19 | 33 | 39 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 23 | 21 | 17 | 17 | 18 | |||||||||||||||
Total nonperforming retail loans | 46 | 40 | 36 | 50 | 57 | |||||||||||||||
Total nonperforming loans and nonperforming assets | 217 | 178 | 154 | 186 | 221 | |||||||||||||||
Nonperforming loans as a percentage of total loans | 0.43 | % | 0.34 | % | 0.29 | % | 0.33 | % | 0.40 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.43 | 0.34 | 0.29 | 0.33 | 0.40 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.4x | 4.1x | 4.8x | 3.9x | 3.1x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 32 | $ | 20 | $ | 45 | $ | 9 | $ | 20 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 178 | $ | 154 | $ | 186 | $ | 221 | $ | 240 | ||||||||||
Loans transferred to nonaccrual (a) | 83 | 54 | 14 | 17 | 9 | |||||||||||||||
Nonaccrual loan gross charge-offs | (21) | (25) | (14) | (11) | (12) | |||||||||||||||
Loans transferred to accrual status (a) | (2) | — | (7) | — | (7) | |||||||||||||||
Nonaccrual loans sold | (12) | (1) | — | (3) | (1) | |||||||||||||||
Payments/other (b) | (9) | (4) | (25) | (38) | (8) | |||||||||||||||
Nonaccrual loans at end of period | $ | 217 | $ | 178 | $ | 154 | $ | 186 | $ | 221 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a) | $ | 26,451 | $ | 348 | 5.30 | % | $ | 28,163 | $ | 388 | 5.47 | % | $ | 30,517 | $ | 410 | 5.44 | % | |||||||||||||||||
Real estate construction loans | 5,174 | 108 | 8.37 | 4,798 | 102 | 8.42 | 3,345 | 63 | 7.66 | ||||||||||||||||||||||||||
Commercial mortgage loans | 13,642 | 253 | 7.46 | 13,706 | 258 | 7.48 | 13,464 | 221 | 6.67 | ||||||||||||||||||||||||||
Lease financing | 810 | 12 | 6.11 | 794 | 12 | 6.14 | 765 | 4 | 1.93 | ||||||||||||||||||||||||||
International loans | 1,141 | 22 | 7.80 | 1,169 | 25 | 8.15 | 1,226 | 24 | 7.91 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,882 | 18 | 3.74 | 1,902 | 17 | 3.74 | 1,833 | 15 | 3.29 | ||||||||||||||||||||||||||
Consumer loans | 2,272 | 47 | 8.32 | 2,264 | 47 | 8.07 | 2,318 | 40 | 7.07 | ||||||||||||||||||||||||||
Total loans | 51,372 | 808 | 6.33 | 52,796 | 849 | 6.38 | 53,468 | 777 | 5.89 | ||||||||||||||||||||||||||
Mortgage-backed securities (b) | 14,782 | 101 | 2.28 | 14,602 | 103 | 2.28 | 16,397 | 108 | 2.28 | ||||||||||||||||||||||||||
U.S. Treasury securities (c) | 1,546 | 1 | 0.28 | 1,687 | 1 | 0.26 | 2,369 | 5 | 0.79 | ||||||||||||||||||||||||||
Total investment securities | 16,328 | 102 | 2.12 | 16,289 | 104 | 2.10 | 18,766 | 113 | 2.10 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks (d) | 7,726 | 105 | 5.47 | 6,685 | 92 | 5.46 | 4,955 | 58 | 4.66 | ||||||||||||||||||||||||||
Other short-term investments | 381 | 4 | 4.01 | 397 | 4 | 4.07 | 186 | 1 | 2.28 | ||||||||||||||||||||||||||
Total earning assets | 75,807 | 1,019 | 5.20 | 76,167 | 1,049 | 5.23 | 77,375 | 949 | 4.79 | ||||||||||||||||||||||||||
Cash and due from banks | 938 | 1,103 | 1,465 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (688) | (694) | (611) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 7,560 | 7,547 | 6,909 | ||||||||||||||||||||||||||||||||
Total assets | $ | 83,617 | $ | 84,123 | $ | 85,138 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits (e) | $ | 28,700 | 228 | 3.18 | $ | 27,644 | 208 | 2.96 | $ | 26,340 | 109 | 1.68 | |||||||||||||||||||||||
Savings deposits | 2,352 | 1 | 0.23 | 2,440 | 1 | 0.21 | 3,147 | 1 | 0.18 | ||||||||||||||||||||||||||
Customer certificates of deposit | 3,868 | 36 | 3.76 | 3,577 | 33 | 3.63 | 1,875 | 6 | 1.31 | ||||||||||||||||||||||||||
Other time deposits | 3,964 | 52 | 5.28 | 4,557 | 60 | 5.22 | 171 | 2 | 3.74 | ||||||||||||||||||||||||||
Foreign office time deposits | 18 | — | 4.35 | 13 | — | 4.75 | 49 | — | 3.72 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 38,902 | 317 | 3.28 | 38,231 | 302 | 3.12 | 31,582 | 118 | 1.52 | ||||||||||||||||||||||||||
Federal funds purchased | 26 | — | 5.39 | 15 | — | 5.37 | 83 | 1 | 4.56 | ||||||||||||||||||||||||||
Other short-term borrowings | 2,555 | 37 | 5.65 | 3,987 | 58 | 5.74 | 5,371 | 65 | 4.92 | ||||||||||||||||||||||||||
Medium- and long-term debt | 6,903 | 117 | 6.77 | 6,070 | 105 | 6.94 | 3,832 | 57 | 5.94 | ||||||||||||||||||||||||||
Total interest-bearing sources | 48,386 | 471 | 3.90 | 48,303 | 465 | 3.81 | 40,868 | 241 | 2.39 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 26,408 | 27,814 | 36,251 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 2,746 | 2,665 | 2,291 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 6,077 | 5,341 | 5,728 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 83,617 | $ | 84,123 | $ | 85,138 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 548 | 1.30 | $ | 584 | 1.42 | $ | 708 | 2.40 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 1.50 | 1.49 | 1.17 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.80 | % | 2.91 | % | 3.57 | % |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | ||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
Nonredeemable Preferred Stock | Common Stock | Total Shareholders' Equity | ||||||||||||||||||||||||
Shares Outstanding | Amount | Capital Surplus | Retained Earnings | Treasury Stock | ||||||||||||||||||||||
(in millions, except per share data) | ||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022 | $ | 394 | 131.0 | $ | 1,141 | $ | 2,220 | $ | (3,742) | $ | 11,258 | $ | (6,090) | $ | 5,181 | |||||||||||
Net income | — | — | — | — | — | 324 | — | 324 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 571 | — | — | 571 | ||||||||||||||||||
Cash dividends declared on common stock ($0.71 per share) | — | — | — | — | — | (94) | — | (94) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (6) | — | (6) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.5 | — | (39) | — | (6) | 35 | (10) | ||||||||||||||||||
Share-based compensation | — | — | — | 28 | — | — | — | 28 | ||||||||||||||||||
BALANCE AT MARCH 31, 2023 | $ | 394 | 131.5 | $ | 1,141 | $ | 2,209 | $ | (3,171) | $ | 11,476 | $ | (6,055) | $ | 5,994 | |||||||||||
BALANCE AT DECEMBER 31, 2023 | $ | 394 | 131.9 | $ | 1,141 | $ | 2,224 | $ | (3,048) | $ | 11,727 | $ | (6,032) | $ | 6,406 | |||||||||||
Cumulative effect of change in accounting principle (a) | — | — | — | — | — | (4) | — | (4) | ||||||||||||||||||
Net income | — | — | — | — | — | 138 | — | 138 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (409) | — | — | (409) | ||||||||||||||||||
Cash dividends declared on common stock ($0.71 per share) | — | — | — | — | — | (94) | — | (94) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (6) | — | (6) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.6 | — | (49) | — | 4 | 37 | (8) | ||||||||||||||||||
Share-based compensation | — | — | — | 27 | — | — | — | 27 | ||||||||||||||||||
BALANCE AT MARCH 31, 2024 | $ | 394 | 132.5 | $ | 1,141 | $ | 2,202 | $ | (3,457) | $ | 11,765 | $ | (5,995) | $ | 6,050 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial | Retail | Wealth | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 477 | $ | 200 | $ | 47 | $ | (217) | $ | 41 | $ | 548 | |||||||||||||||||||||||
Provision for credit losses | 16 | (1) | 1 | — | (2) | 14 | |||||||||||||||||||||||||||||
Noninterest income | 148 | 28 | 65 | (11) | 6 | 236 | |||||||||||||||||||||||||||||
Noninterest expenses | 275 | 182 | 96 | 2 | 48 | 603 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 56 | 8 | 2 | (41) | 4 | 29 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 278 | $ | 39 | $ | 13 | $ | (189) | $ | (3) | $ | 138 | |||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 14 | $ | — | $ | — | $ | — | $ | — | $ | 14 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 46,485 | $ | 3,026 | $ | 5,443 | $ | 19,057 | $ | 9,606 | $ | 83,617 | |||||||||||||||||||||||
Loans | 43,911 | 2,297 | 5,152 | — | 12 | 51,372 | |||||||||||||||||||||||||||||
Deposits | 32,212 | 24,384 | 3,900 | 4,539 | 275 | 65,310 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.40 | % | 0.64 | % | 0.88 | % | n/m | n/m | 0.66 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 44.05 | 79.13 | 86.68 | n/m | n/m | 76.91 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2023 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 502 | $ | 202 | $ | 49 | $ | (200) | $ | 31 | $ | 584 | |||||||||||||||||||||||
Provision for credit losses | 10 | 1 | 3 | — | (2) | 12 | |||||||||||||||||||||||||||||
Noninterest income | 142 | 31 | 73 | (55) | 7 | 198 | |||||||||||||||||||||||||||||
Noninterest expenses | 349 | 217 | 105 | 8 | 39 | 718 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 72 | 5 | 4 | (63) | 1 | 19 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 213 | $ | 10 | $ | 10 | $ | (200) | $ | — | $ | 33 | |||||||||||||||||||||||
Net charge-offs | $ | 19 | $ | 1 | $ | — | $ | — | $ | — | $ | 20 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 48,130 | $ | 3,006 | $ | 5,471 | $ | 19,157 | $ | 8,359 | $ | 84,123 | |||||||||||||||||||||||
Loans | 45,355 | 2,277 | 5,160 | — | 4 | 52,796 | |||||||||||||||||||||||||||||
Deposits | 32,469 | 24,273 | 3,921 | 5,093 | 289 | 66,045 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.76 | % | 0.17 | % | 0.71 | % | n/m | n/m | 0.15 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 54.25 | 92.83 | 86.08 | n/m | n/m | 91.86 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2023 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 540 | $ | 223 | $ | 58 | $ | (133) | $ | 20 | $ | 708 | |||||||||||||||||||||||
Provision for credit losses | 26 | 7 | (3) | — | — | 30 | |||||||||||||||||||||||||||||
Noninterest income | 153 | 28 | 73 | 23 | 5 | 282 | |||||||||||||||||||||||||||||
Noninterest expenses | 251 | 165 | 107 | 1 | 27 | 551 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 90 | 19 | 6 | (28) | (2) | 85 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 326 | $ | 60 | $ | 21 | $ | (83) | $ | — | $ | 324 | |||||||||||||||||||||||
Net (recoveries) charge-offs | $ | (2) | $ | — | $ | — | $ | — | $ | — | $ | (2) | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 49,310 | $ | 2,915 | $ | 5,347 | $ | 20,941 | $ | 6,625 | $ | 85,138 | |||||||||||||||||||||||
Loans | 46,065 | 2,202 | 5,201 | — | — | 53,468 | |||||||||||||||||||||||||||||
Deposits | 36,767 | 25,156 | 4,716 | 830 | 364 | 67,833 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.68 | % | 0.97 | % | 1.62 | % | n/m | n/m | 1.54 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 36.22 | 65.41 | 81.18 | n/m | n/m | 55.53 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
First | Fourth | First | |||||||||
Quarter | Quarter | Quarter | |||||||||
(dollar amounts in millions, except per share data) | 2024 | 2023 | 2023 | ||||||||
Adjusted Earnings per Common Share: | |||||||||||
Net income attributable to common shareholders | $ | 131 | $ | 27 | $ | 317 | |||||
Net BSBY cessation hedging losses (a) | 36 | 88 | — | ||||||||
FDIC special assessment (b) | 16 | 109 | — | ||||||||
Modernization initiatives (c) | 4 | (4) | 16 | ||||||||
Expense recalibration initiatives (d) | (3) | 25 | — | ||||||||
Income tax impact of above items | (13) | (52) | (4) | ||||||||
Adjusted net income attributable to common shareholders | $ | 171 | $ | 193 | $ | 329 | |||||
Diluted average common shares (in millions) | 133 | 133 | 132 | ||||||||
Diluted earnings per common share: | |||||||||||
Reported | $ | 0.98 | $ | 0.20 | $ | 2.39 | |||||
Adjusted | 1.29 | 1.46 | 2.48 | ||||||||
Adjusted Net Income, ROA and ROE: | |||||||||||
Net income | $ | 138 | $ | 33 | $ | 324 | |||||
Net BSBY cessation hedging losses (a) | 36 | 88 | — | ||||||||
FDIC special assessment (b) | 16 | 109 | — | ||||||||
Modernization initiatives (c) | 4 | (4) | 16 | ||||||||
Expense recalibration initiatives (d) | (3) | 25 | — | ||||||||
Income tax impact of above items | (13) | (52) | (4) | ||||||||
Adjusted net income | $ | 178 | $ | 199 | $ | 336 | |||||
Average assets | $ | 83,617 | $ | 84,123 | $ | 85,138 | |||||
Impact of adjusted items to average assets | — | (8) | (2) | ||||||||
Adjusted average assets | $ | 83,617 | $ | 84,115 | $ | 85,136 | |||||
ROA: | |||||||||||
Reported | 0.66 | % | 0.15 | % | 1.54 | % | |||||
Adjusted | 0.86 | 0.94 | 1.60 | ||||||||
Average common shareholder’s equity | $ | 5,683 | $ | 4,947 | $ | 5,334 | |||||
Impact of adjusted items to average common shareholders’ equity | 1 | 24 | 5 | ||||||||
Adjusted average common shareholder’s equity | $ | 5,684 | $ | 4,971 | $ | 5,339 | |||||
ROE: | |||||||||||
Reported | 9.33 | % | 2.17 | % | 24.20 | % | |||||
Adjusted | 12.22 | 15.47 | 25.12 |
March 31, | December 31, | March 31, | |||||||||
(in millions, except share data) | 2024 | 2023 | 2023 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 8,863 | $ | 8,808 | $ | 8,518 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common equity tier 1 capital | $ | 8,469 | $ | 8,414 | $ | 8,124 | |||||
Risk-weighted assets | $ | 73,821 | $ | 75,901 | $ | 80,251 | |||||
Tier 1 capital ratio | 12.01 | % | 11.60 | % | 10.61 | % | |||||
Common equity tier 1 capital ratio | 11.47 | 11.09 | 10.12 | ||||||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 6,050 | $ | 6,406 | $ | 5,994 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common shareholders' equity | $ | 5,656 | $ | 6,012 | $ | 5,600 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 8 | 8 | 9 | ||||||||
Tangible common equity | $ | 5,013 | $ | 5,369 | $ | 4,956 | |||||
Total assets | $ | 79,444 | $ | 85,834 | $ | 91,127 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 8 | 8 | 9 | ||||||||
Tangible assets | $ | 78,801 | $ | 85,191 | $ | 90,483 | |||||
Common equity ratio | 7.12 | % | 7.00 | % | 6.15 | % | |||||
Tangible common equity ratio | 6.36 | 6.30 | 5.48 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 5,656 | $ | 6,012 | $ | 5,600 | |||||
Tangible common equity | 5,013 | 5,369 | 4,956 | ||||||||
Shares of common stock outstanding (in millions) | 133 | 132 | 132 | ||||||||
Common shareholders' equity per share of common stock | $ | 42.69 | $ | 45.58 | $ | 42.57 | |||||
Tangible common equity per share of common stock | 37.84 | 40.70 | 37.68 | ||||||||
March 31, | December 31, | March 31, | |||||||||
(dollar amounts in millions) | 2024 | 2023 | 2023 | ||||||||
Uninsured Deposits: | |||||||||||
Total uninsured deposits, as calculated per regulatory guidelines | $ | 30,481 | $ | 31,485 | $ | 35,007 | |||||
Less: | |||||||||||
Affiliate deposits | (3,966) | (4,064) | (4,329) | ||||||||
Total uninsured deposits, excluding affiliate deposits | $ | 26,515 | $ | 27,421 | $ | 30,678 | |||||