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 | ☐ |
By: | /s/ Von E. Hays | ||||
Name: | Von E. Hays | ||||
Title: | Senior Executive Vice President and | ||||
Chief Legal Officer |
(dollar amounts in millions, except per share data) | 2nd Qtr '24 | 1st Qtr '24 | 2nd Qtr '23 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 533 | $ | 548 | $ | 621 | |||||||||||
Provision for credit losses | — | 14 | 33 | ||||||||||||||
Noninterest income | 291 | 236 | 303 | ||||||||||||||
Noninterest expenses | 555 | 603 | 535 | ||||||||||||||
Pre-tax income | 269 | 167 | 356 | ||||||||||||||
Provision for income taxes | 63 | 29 | 83 | ||||||||||||||
Net income | $ | 206 | $ | 138 | $ | 273 | |||||||||||
Diluted earnings per common share | $ | 1.49 | $ | 0.98 | $ | 2.01 | |||||||||||
Average loans | 51,071 | 51,372 | 55,368 | ||||||||||||||
Average deposits | 63,055 | 65,310 | 64,332 | ||||||||||||||
Return on average assets (ROA) | 1.05 | % | 0.66 | % | 1.21 | % | |||||||||||
Return on average common shareholders' equity (ROE) | 14.78 | 9.33 | 19.38 | ||||||||||||||
Net interest margin | 2.86 | 2.80 | 2.93 | ||||||||||||||
Efficiency ratio (a) | 67.77 | 76.91 | 57.70 | ||||||||||||||
Common equity Tier 1 capital ratio (b) | 11.55 | 11.48 | 10.31 | ||||||||||||||
Tier 1 capital ratio (b) | 12.08 | 12.01 | 10.80 | ||||||||||||||
(dollar amounts in millions, except per share data) | 2nd Qtr '24 | 1st Qtr '24 | 2nd Qtr '23 | ||||||||||||||
Diluted earnings per common share | $ | 1.49 | $ | 0.98 | $ | 2.01 | |||||||||||
Net BSBY cessation hedging losses (a) |
0.01 | 0.21 | — | ||||||||||||||
FDIC special assessment (b) |
0.02 | 0.09 | — | ||||||||||||||
Modernization and expense recalibration initiatives (c) |
0.01 | 0.01 | 0.04 | ||||||||||||||
Adjusted diluted earnings per common share | $ | 1.53 | $ | 1.29 | $ | 2.05 | |||||||||||
Net income attributable to common shareholders | $ | 200 | $ | 131 | $ | 266 | |||||||||||
Net BSBY cessation hedging losses (a) |
3 | 36 | — | ||||||||||||||
FDIC special assessment (b) |
3 | 16 | — | ||||||||||||||
Modernization and expense recalibration initiatives (c) |
2 | 1 | 7 | ||||||||||||||
Income tax impact of above items | (2) | (13) | (2) | ||||||||||||||
Adjusted net income attributable to common shareholders | $ | 206 | $ | 171 | $ | 271 | |||||||||||
ROA | 1.05 | % | 0.66 | % | 1.21 | % | |||||||||||
Adjusted ROA | 1.07 | 0.86 | 1.24 | ||||||||||||||
ROE | 14.78 | 9.33 | 19.38 | ||||||||||||||
Adjusted ROE | 15.18 | 12.22 | 19.72 |
(dollar amounts in millions) | 2nd Qtr '24 | 1st Qtr '24 | 2nd Qtr '23 | ||||||||||||||
Net interest income | $ | 533 | $ | 548 | $ | 621 | |||||||||||
Net interest margin | 2.86 | % | 2.80 | % | 2.93 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 71,829 | $ | 75,807 | $ | 82,311 | |||||||||||
Total loans | 51,071 | 51,372 | 55,368 | ||||||||||||||
Total investment securities | 15,750 | 16,328 | 17,865 | ||||||||||||||
Federal Reserve Bank deposits | 4,474 | 7,526 | 8,409 | ||||||||||||||
Total deposits | 63,055 | 65,310 | 64,332 | ||||||||||||||
Total noninterest-bearing deposits | 25,357 | 26,408 | 30,559 | ||||||||||||||
Short-term borrowings | 666 | 2,581 | 10,568 | ||||||||||||||
Medium- and long-term debt | 7,082 | 6,903 | 7,073 |
(dollar amounts in millions) | 2nd Qtr '24 | 1st Qtr '24 | 2nd Qtr '23 | ||||||||||||||
Charge-offs | $ | 28 | $ | 21 | $ | 11 | |||||||||||
Recoveries | 17 | 7 | 13 | ||||||||||||||
Net charge-offs (recoveries) | 11 | 14 | (2) | ||||||||||||||
Net charge-offs (recoveries)/Average total loans | 0.09 | % | 0.10 | % | (0.01 | %) | |||||||||||
Provision for credit losses | $ | — | $ | 14 | $ | 33 | |||||||||||
Nonperforming loans and nonperforming assets (NPAs) | 226 | 217 | 186 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.44 | % | 0.43 | % | 0.33 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 11 | $ | 32 | $ | 9 | |||||||||||
Allowance for loan losses | 686 | 691 | 684 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 31 | 37 | 44 | ||||||||||||||
Total allowance for credit losses | 717 | 728 | 728 | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.38 | % | 1.43 | % | 1.31 | % | |||||||||||
Allowance for credit losses/Nonperforming loans | 3.2x | 3.4x | 3.9x |
Media Contacts: | Investor Contacts: | ||||
Nicole Hogan | Kelly Gage | ||||
(214) 462-6657 | (833) 571-0486 | ||||
Louis H. Mora | Lindsey Baird | ||||
(214) 462-6669 | (833) 571-0486 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
(in millions, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||||||
Diluted earnings per common share | $ | 1.49 | $ | 0.98 | $ | 2.01 | $ | 2.47 | $ | 4.40 | ||||||||||
Cash dividends declared | 0.71 | 0.71 | 0.71 | 1.42 | 1.42 | |||||||||||||||
Average diluted shares (in thousands) | 133,763 | 133,369 | 132,356 | 133,565 | 132,455 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average common shareholders' equity | 14.78 | % | 9.33 | % | 19.38 | % | 12.00 | % | 21.73 | % | ||||||||||
Return on average assets | 1.05 | 0.66 | 1.21 | 0.85 | 1.37 | |||||||||||||||
Efficiency ratio (a) | 67.77 | 76.91 | 57.70 | 72.24 | 56.58 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Common equity tier 1 capital (b), (c) | $ | 8,586 | $ | 8,469 | $ | 8,311 | ||||||||||||||
Tier 1 capital (b), (c) | 8,980 | 8,863 | 8,705 | |||||||||||||||||
Risk-weighted assets (b) | 74,338 | 73,794 | 80,624 | |||||||||||||||||
Common equity tier 1 capital ratio (b), (c) | 11.55 | % | 11.48 | % | 10.31 | % | ||||||||||||||
Tier 1 capital ratio (b), (c) | 12.08 | 12.01 | 10.80 | |||||||||||||||||
Total capital ratio (b) | 14.02 | 13.98 | 12.79 | |||||||||||||||||
Leverage ratio (b) | 10.90 | 10.23 | 9.38 | |||||||||||||||||
Common shareholders' equity per share of common stock | $ | 43.49 | $ | 42.69 | $ | 39.48 | ||||||||||||||
Tangible common equity per share of common stock (c) | 38.65 | 37.84 | 34.59 | |||||||||||||||||
Common equity ratio | 7.24 | % | 7.12 | % | 5.73 | % | ||||||||||||||
Tangible common equity ratio (c) | 6.49 | 6.36 | 5.06 | |||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Commercial loans | $ | 26,292 | $ | 26,451 | $ | 31,663 | $ | 26,372 | $ | 31,093 | ||||||||||
Real estate construction loans | 4,553 | 5,174 | 3,708 | 4,863 | 3,528 | |||||||||||||||
Commercial mortgage loans | 14,171 | 13,642 | 13,801 | 13,906 | 13,633 | |||||||||||||||
Lease financing | 798 | 810 | 776 | 804 | 770 | |||||||||||||||
International loans | 1,111 | 1,141 | 1,268 | 1,126 | 1,247 | |||||||||||||||
Residential mortgage loans | 1,898 | 1,882 | 1,858 | 1,890 | 1,846 | |||||||||||||||
Consumer loans | 2,248 | 2,272 | 2,294 | 2,260 | 2,306 | |||||||||||||||
Total loans | 51,071 | 51,372 | 55,368 | 51,221 | 54,423 | |||||||||||||||
Earning assets | 71,829 | 75,807 | 82,311 | 73,818 | 79,857 | |||||||||||||||
Total assets | 79,207 | 83,617 | 90,355 | 81,412 | 87,761 | |||||||||||||||
Noninterest-bearing deposits | 25,357 | 26,408 | 30,559 | 25,883 | 33,389 | |||||||||||||||
Interest-bearing deposits | 37,698 | 38,902 | 33,773 | 38,300 | 32,683 | |||||||||||||||
Total deposits | 63,055 | 65,310 | 64,332 | 64,183 | 66,072 | |||||||||||||||
Common shareholders' equity | 5,454 | 5,683 | 5,544 | 5,568 | 5,440 | |||||||||||||||
Total shareholders' equity | 5,848 | 6,077 | 5,938 | 5,962 | 5,834 | |||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||
Net interest income | $ | 533 | $ | 548 | $ | 621 | $ | 1,081 | $ | 1,329 | ||||||||||
Net interest margin | 2.86 | % | 2.80 | % | 2.93 | % | 2.83 | % | 3.24 | % | ||||||||||
CREDIT QUALITY | ||||||||||||||||||||
Nonperforming assets | $ | 226 | $ | 217 | $ | 186 | ||||||||||||||
Loans past due 90 days or more and still accruing | 11 | 32 | 9 | |||||||||||||||||
Net charge-offs (recoveries) | 11 | 14 | (2) | $ | 25 | $ | (4) | |||||||||||||
Allowance for loan losses | 686 | 691 | 684 | |||||||||||||||||
Allowance for credit losses on lending-related commitments | 31 | 37 | 44 | |||||||||||||||||
Total allowance for credit losses | 717 | 728 | 728 | |||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.38 | % | 1.43 | % | 1.31 | % | ||||||||||||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.09 | 0.10 | (0.01) | 0.10 | % | (0.01 | %) | |||||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.44 | 0.43 | 0.33 | |||||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.2x | 3.4x | 3.9x | |||||||||||||||||
OTHER KEY INFORMATION | ||||||||||||||||||||
Number of banking centers | 381 | 408 | 409 | |||||||||||||||||
Number of employees - full time equivalent | 7,608 | 7,619 | 7,672 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||
June 30, | March 31, | December 31, | June 30, | |||||||||||
(in millions, except share data) | 2024 | 2024 | 2023 | 2023 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 719 | $ | 689 | $ | 1,443 | $ | 1,413 | ||||||
Interest-bearing deposits with banks | 4,093 | 4,446 | 8,059 | 8,810 | ||||||||||
Other short-term investments | 396 | 366 | 399 | 389 | ||||||||||
Investment securities available-for-sale | 15,656 | 16,246 | 16,869 | 17,415 | ||||||||||
Commercial loans | 27,113 | 26,019 | 27,251 | 31,745 | ||||||||||
Real estate construction loans | 4,554 | 4,558 | 5,083 | 3,983 | ||||||||||
Commercial mortgage loans | 14,156 | 14,266 | 13,686 | 13,851 | ||||||||||
Lease financing | 806 | 793 | 807 | 756 | ||||||||||
International loans | 1,087 | 1,070 | 1,102 | 1,282 | ||||||||||
Residential mortgage loans | 1,896 | 1,889 | 1,889 | 1,894 | ||||||||||
Consumer loans | 2,238 | 2,227 | 2,295 | 2,253 | ||||||||||
Total loans | 51,850 | 50,822 | 52,113 | 55,764 | ||||||||||
Allowance for loan losses | (686) | (691) | (688) | (684) | ||||||||||
Net loans | 51,164 | 50,131 | 51,425 | 55,080 | ||||||||||
Premises and equipment | 474 | 462 | 445 | 397 | ||||||||||
Accrued income and other assets | 7,095 | 7,104 | 7,194 | 7,257 | ||||||||||
Total assets | $ | 79,597 | $ | 79,444 | $ | 85,834 | $ | 90,761 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Noninterest-bearing deposits | $ | 24,522 | $ | 25,833 | $ | 27,849 | $ | 31,067 | ||||||
Money market and interest-bearing checking deposits | 29,016 | 28,550 | 28,246 | 24,397 | ||||||||||
Savings deposits | 2,247 | 2,342 | 2,381 | 2,760 | ||||||||||
Customer certificates of deposit | 3,775 | 3,941 | 3,723 | 2,630 | ||||||||||
Other time deposits | 2,879 | 2,894 | 4,550 | 5,159 | ||||||||||
Foreign office time deposits | 20 | 18 | 13 | 2 | ||||||||||
Total interest-bearing deposits | 37,937 | 37,745 | 38,913 | 34,948 | ||||||||||
Total deposits | 62,459 | 63,578 | 66,762 | 66,015 | ||||||||||
Short-term borrowings | 1,250 | — | 3,565 | 9,558 | ||||||||||
Accrued expenses and other liabilities | 2,615 | 2,695 | 2,895 | 2,632 | ||||||||||
Medium- and long-term debt | 7,112 | 7,121 | 6,206 | 6,961 | ||||||||||
Total liabilities | 73,436 | 73,394 | 79,428 | 85,166 | ||||||||||
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 | 394 | ||||||||||
Common stock - $5 par value: | ||||||||||||||
Authorized - 325,000,000 shares | ||||||||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | 1,141 | ||||||||||
Capital surplus | 2,210 | 2,202 | 2,224 | 2,212 | ||||||||||
Accumulated other comprehensive loss | (3,463) | (3,457) | (3,048) | (3,756) | ||||||||||
Retained earnings | 11,867 | 11,765 | 11,727 | 11,648 | ||||||||||
Less cost of common stock in treasury - 95,559,986 shares at 6/30/24, 95,683,776 shares at 03/31/24, 96,449,879 shares at 6/30/23 |
(5,988) | (5,995) | (6,032) | (6,044) | ||||||||||
Total shareholders' equity | 6,161 | 6,050 | 6,406 | 5,595 | ||||||||||
Total liabilities and shareholders' equity | $ | 79,597 | $ | 79,444 | $ | 85,834 | $ | 90,761 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
INTEREST INCOME | |||||||||||||||||
Interest and fees on loans | $ | 803 | $ | 852 | $ | 1,611 | $ | 1,629 | |||||||||
Interest on investment securities | 101 | 108 | 203 | 221 | |||||||||||||
Interest on short-term investments | 67 | 114 | 176 | 173 | |||||||||||||
Total interest income | 971 | 1,074 | 1,990 | 2,023 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Interest on deposits | 305 | 201 | 622 | 319 | |||||||||||||
Interest on short-term borrowings | 9 | 142 | 46 | 208 | |||||||||||||
Interest on medium- and long-term debt | 124 | 110 | 241 | 167 | |||||||||||||
Total interest expense | 438 | 453 | 909 | 694 | |||||||||||||
Net interest income | 533 | 621 | 1,081 | 1,329 | |||||||||||||
Provision for credit losses | — | 33 | 14 | 63 | |||||||||||||
Net interest income after provision for credit losses | 533 | 588 | 1,067 | 1,266 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Card fees | 64 | 72 | 130 | 141 | |||||||||||||
Fiduciary income | 58 | 62 | 109 | 120 | |||||||||||||
Service charges on deposit accounts | 46 | 47 | 91 | 93 | |||||||||||||
Capital markets income | 37 | 39 | 67 | 78 | |||||||||||||
Commercial lending fees | 17 | 18 | 33 | 36 | |||||||||||||
Risk management hedging income (loss) | 17 | 7 | (8) | 15 | |||||||||||||
Brokerage fees | 14 | 8 | 24 | 16 | |||||||||||||
Bank-owned life insurance | 11 | 14 | 21 | 24 | |||||||||||||
Letter of credit fees | 10 | 11 | 20 | 21 | |||||||||||||
Other noninterest income | 17 | 25 | 40 | 41 | |||||||||||||
Total noninterest income | 291 | 303 | 527 | 585 | |||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||
Salaries and benefits expense | 323 | 306 | 671 | 632 | |||||||||||||
Outside processing fee expense | 68 | 68 | 136 | 132 | |||||||||||||
Software expense | 45 | 43 | 89 | 83 | |||||||||||||
Occupancy expense | 44 | 41 | 88 | 82 | |||||||||||||
FDIC insurance expense | 19 | 16 | 55 | 29 | |||||||||||||
Equipment expense | 13 | 12 | 25 | 24 | |||||||||||||
Advertising expense | 12 | 10 | 20 | 18 | |||||||||||||
Other noninterest expenses | 31 | 39 | 74 | 86 | |||||||||||||
Total noninterest expenses | 555 | 535 | 1,158 | 1,086 | |||||||||||||
Income before income taxes | 269 | 356 | 436 | 765 | |||||||||||||
Provision for income taxes | 63 | 83 | 92 | 168 | |||||||||||||
NET INCOME | 206 | 273 | 344 | 597 | |||||||||||||
Less: | |||||||||||||||||
Income allocated to participating securities | 1 | 2 | 2 | 3 | |||||||||||||
Preferred stock dividends | 5 | 5 | 11 | 11 | |||||||||||||
Net income attributable to common shares | $ | 200 | $ | 266 | $ | 331 | $ | 583 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 1.50 | $ | 2.02 | $ | 2.49 | $ | 4.43 | |||||||||
Diluted | 1.49 | 2.01 | 2.47 | 4.40 | |||||||||||||
Comprehensive income (loss) | 200 | (312) | (71) | 583 | |||||||||||||
Cash dividends declared on common stock | 95 | 94 | 189 | 188 | |||||||||||||
Cash dividends declared per common share | 0.71 | 0.71 | 1.42 | 1.42 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | Second Quarter 2024 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | First Quarter 2024 | Second Quarter 2023 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 803 | $ | 808 | $ | 849 | $ | 862 | $ | 852 | $ | (5) | (1 | %) | $ | (49) | (6 | %) | |||||||||||||||||
Interest on investment securities | 101 | 102 | 104 | 105 | 108 | (1) | (1) | (7) | (7) | ||||||||||||||||||||||||||
Interest on short-term investments | 67 | 109 | 96 | 136 | 114 | (42) | (38) | (47) | (41) | ||||||||||||||||||||||||||
Total interest income | 971 | 1,019 | 1,049 | 1,103 | 1,074 | (48) | (5) | (103) | (10) | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 305 | 317 | 302 | 271 | 201 | (12) | (4) | 104 | 51 | ||||||||||||||||||||||||||
Interest on short-term borrowings | 9 | 37 | 58 | 125 | 142 | (28) | (74) | (133) | (93) | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 124 | 117 | 105 | 106 | 110 | 7 | 6 | 14 | 12 | ||||||||||||||||||||||||||
Total interest expense | 438 | 471 | 465 | 502 | 453 | (33) | (7) | (15) | (4) | ||||||||||||||||||||||||||
Net interest income | 533 | 548 | 584 | 601 | 621 | (15) | (3) | (88) | (14) | ||||||||||||||||||||||||||
Provision for credit losses | — | 14 | 12 | 14 | 33 | (14) | (98) | (33) | (99) | ||||||||||||||||||||||||||
Net interest income after provision
for credit losses
|
533 | 534 | 572 | 587 | 588 | (1) | — | (55) | (9) | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 64 | 66 | 68 | 71 | 72 | (2) | (3) | (8) | (11) | ||||||||||||||||||||||||||
Fiduciary income | 58 | 51 | 56 | 59 | 62 | 7 | 13 | (4) | (6) | ||||||||||||||||||||||||||
Service charges on deposit accounts | 46 | 45 | 45 | 47 | 47 | 1 | 1 | (1) | (2) | ||||||||||||||||||||||||||
Capital markets income | 37 | 30 | 34 | 35 | 39 | 7 | 23 | (2) | (6) | ||||||||||||||||||||||||||
Commercial lending fees | 17 | 16 | 17 | 19 | 18 | 1 | 5 | (1) | (9) | ||||||||||||||||||||||||||
Risk management hedging income (loss) | 17 | (25) | (74) | 17 | 7 | 42 | n/m | 10 | n/m | ||||||||||||||||||||||||||
Brokerage fees | 14 | 10 | 8 | 6 | 8 | 4 | 34 | 6 | 71 | ||||||||||||||||||||||||||
Bank-owned life insurance | 11 | 10 | 10 | 12 | 14 | 1 | 16 | (3) | (20) | ||||||||||||||||||||||||||
Letter of credit fees | 10 | 10 | 11 | 10 | 11 | — | — | (1) | (10) | ||||||||||||||||||||||||||
Other noninterest income | 17 | 23 | 23 | 19 | 25 | (6) | (22) | (8) | (29) | ||||||||||||||||||||||||||
Total noninterest income | 291 | 236 | 198 | 295 | 303 | 55 | 23 | (12) | (4) | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 323 | 348 | 359 | 315 | 306 | (25) | (7) | 17 | 5 | ||||||||||||||||||||||||||
Outside processing fee expense | 68 | 68 | 70 | 75 | 68 | — | — | — | — | ||||||||||||||||||||||||||
Software expense | 45 | 44 | 44 | 44 | 43 | 1 | 2 | 2 | 6 | ||||||||||||||||||||||||||
Occupancy expense | 44 | 44 | 45 | 44 | 41 | — | — | 3 | 7 | ||||||||||||||||||||||||||
FDIC insurance expense | 19 | 36 | 132 | 19 | 16 | (17) | (45) | 3 | 26 | ||||||||||||||||||||||||||
Equipment expense | 13 | 12 | 14 | 12 | 12 | 1 | 9 | 1 | 4 | ||||||||||||||||||||||||||
Advertising expense | 12 | 8 | 10 | 12 | 10 | 4 | 35 | 2 | 17 | ||||||||||||||||||||||||||
Other noninterest expenses | 31 | 43 | 44 | 34 | 39 | (12) | (28) | (8) | (20) | ||||||||||||||||||||||||||
Total noninterest expenses | 555 | 603 | 718 | 555 | 535 | (48) | (8) | 20 | 4 | ||||||||||||||||||||||||||
Income before income taxes | 269 | 167 | 52 | 327 | 356 | 102 | 62 | (87) | (24) | ||||||||||||||||||||||||||
Provision for income taxes | 63 | 29 | 19 | 76 | 83 | 34 | n/m | (20) | (24) | ||||||||||||||||||||||||||
NET INCOME | 206 | 138 | 33 | 251 | 273 | 68 | 50 | (67) | (25) | ||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Income allocated to participating securities | 1 | 1 | — | 1 | 2 | — | — | (1) | (12) | ||||||||||||||||||||||||||
Preferred stock dividends | 5 | 6 | 6 | 6 | 5 | (1) | — | — | — | ||||||||||||||||||||||||||
Net income attributable to common shares | $ | 200 | $ | 131 | $ | 27 | $ | 244 | $ | 266 | $ | 69 | 52 | % | $ | (66) | (25 | %) | |||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.50 | $ | 0.99 | $ | 0.20 | $ | 1.85 | $ | 2.02 | $ | 0.51 | 52 | % | $ | (0.52) | (26 | %) | |||||||||||||||||
Diluted | 1.49 | 0.98 | 0.20 | 1.84 | 2.01 | 0.51 | 52 | (0.52) | (26) | ||||||||||||||||||||||||||
Comprehensive income (loss) | 200 | (271) | 1,525 | (533) | (312) | 471 | n/m | 512 | n/m | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 95 | 94 | 93 | 94 | 94 | 1 | — | 1 | 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) | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||||||||||
Balance at beginning 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 | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 19 | 20 | 13 | 9 | 9 | |||||||||||||||
Commercial mortgage | 6 | — | 1 | 3 | — | |||||||||||||||
Lease financing | 3 | — | — | — | — | |||||||||||||||
International | — | — | 11 | 1 | 1 | |||||||||||||||
Consumer | — | 1 | — | 1 | 1 | |||||||||||||||
Total loan charge-offs | 28 | 21 | 25 | 14 | 11 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 15 | 6 | 3 | 5 | 12 | |||||||||||||||
Commercial mortgage | 1 | — | 2 | 2 | 1 | |||||||||||||||
Consumer | 1 | 1 | — | 1 | — | |||||||||||||||
Total recoveries | 17 | 7 | 5 | 8 | 13 | |||||||||||||||
Net loan charge-offs (recoveries) | 11 | 14 | 20 | 6 | (2) | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | 6 | 17 | 14 | 16 | 41 | |||||||||||||||
Provision for credit losses on lending-related commitments | (6) | (3) | (2) | (2) | (8) | |||||||||||||||
Provision for credit losses | — | 14 | 12 | 14 | 33 | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 686 | 691 | 688 | 694 | 684 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 31 | 37 | 40 | 42 | 44 | |||||||||||||||
Allowance for credit losses | $ | 717 | $ | 728 | $ | 728 | $ | 736 | $ | 728 | ||||||||||
Allowance for credit losses as a percentage of total loans | 1.38 | % | 1.43 | % | 1.40 | % | 1.38 | % | 1.31 | % | ||||||||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.09 | 0.10 | 0.15 | 0.05 | (0.01) | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in millions) | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 94 | $ | 88 | $ | 75 | $ | 83 | $ | 93 | ||||||||||
Real estate construction | — | — | 2 | 2 | 2 | |||||||||||||||
Commercial mortgage | 69 | 67 | 41 | 30 | 37 | |||||||||||||||
Lease financing | 1 | — | — | — | — | |||||||||||||||
International | 13 | 16 | 20 | 3 | 4 | |||||||||||||||
Total nonperforming business loans | 177 | 171 | 138 | 118 | 136 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 23 | 23 | 19 | 19 | 33 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 26 | 23 | 21 | 17 | 17 | |||||||||||||||
Total nonperforming retail loans | 49 | 46 | 40 | 36 | 50 | |||||||||||||||
Total nonperforming loans and nonperforming assets | 226 | 217 | 178 | 154 | 186 | |||||||||||||||
Nonperforming loans as a percentage of total loans | 0.44 | % | 0.43 | % | 0.34 | % | 0.29 | % | 0.33 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.44 | 0.43 | 0.34 | 0.29 | 0.33 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.2x | 3.4x | 4.1x | 4.8x | 3.9x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 11 | $ | 32 | $ | 20 | $ | 45 | $ | 9 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 217 | $ | 178 | $ | 154 | $ | 186 | $ | 221 | ||||||||||
Loans transferred to nonaccrual (a) | 45 | 83 | 54 | 14 | 17 | |||||||||||||||
Nonaccrual loan gross charge-offs | (28) | (21) | (25) | (14) | (11) | |||||||||||||||
Loans transferred to accrual status (a) | — | (2) | — | (7) | — | |||||||||||||||
Nonaccrual loans sold | (2) | (12) | (1) | — | (3) | |||||||||||||||
Payments/other (b) | (6) | (9) | (4) | (25) | (38) | |||||||||||||||
Nonaccrual loans at end of period | $ | 226 | $ | 217 | $ | 178 | $ | 154 | $ | 186 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
Commercial loans (a) | $ | 26,372 | $ | 694 | 5.30 | % | $ | 31,093 | $ | 847 | 5.50 | % | |||||||||||
Real estate construction loans | 4,863 | 203 | 8.40 | 3,528 | 138 | 7.90 | |||||||||||||||||
Commercial mortgage loans | 13,906 | 516 | 7.46 | 13,633 | 466 | 6.90 | |||||||||||||||||
Lease financing | 804 | 25 | 6.16 | 770 | 14 | 3.58 | |||||||||||||||||
International loans | 1,126 | 44 | 7.91 | 1,247 | 48 | 7.85 | |||||||||||||||||
Residential mortgage loans | 1,890 | 36 | 3.79 | 1,846 | 31 | 3.35 | |||||||||||||||||
Consumer loans | 2,260 | 93 | 8.28 | 2,306 | 85 | 7.43 | |||||||||||||||||
Total loans | 51,221 | 1,611 | 6.33 | 54,423 | 1,629 | 6.04 | |||||||||||||||||
Mortgage-backed securities (b) | 14,536 | 200 | 2.29 | 16,200 | 214 | 2.28 | |||||||||||||||||
U.S. Treasury securities (c) | 1,503 | 3 | 0.33 | 2,113 | 7 | 0.63 | |||||||||||||||||
Total investment securities | 16,039 | 203 | 2.13 | 18,313 | 221 | 2.10 | |||||||||||||||||
Interest-bearing deposits with banks (d) | 6,184 | 169 | 5.48 | 6,839 | 168 | 4.95 | |||||||||||||||||
Other short-term investments | 374 | 7 | 4.00 | 282 | 5 | 3.27 | |||||||||||||||||
Total earning assets | 73,818 | 1,990 | 5.20 | 79,857 | 2,023 | 4.94 | |||||||||||||||||
Cash and due from banks | 771 | 1,313 | |||||||||||||||||||||
Allowance for loan losses | (690) | (626) | |||||||||||||||||||||
Accrued income and other assets | 7,513 | 7,217 | |||||||||||||||||||||
Total assets | $ | 81,412 | $ | 87,761 | |||||||||||||||||||
Money market and interest-bearing checking deposits (e) | $ | 28,890 | 464 | 3.21 | $ | 25,253 | 241 | 1.92 | |||||||||||||||
Savings deposits | 2,320 | 3 | 0.22 | 3,011 | 3 | 0.19 | |||||||||||||||||
Customer certificates of deposit | 3,883 | 72 | 3.71 | 2,092 | 18 | 1.81 | |||||||||||||||||
Other time deposits | 3,184 | 83 | 5.28 | 2,294 | 56 | 4.94 | |||||||||||||||||
Foreign office time deposits | 23 | — | 4.39 | 33 | 1 | 3.81 | |||||||||||||||||
Total interest-bearing deposits | 38,300 | 622 | 3.26 | 32,683 | 319 | 1.96 | |||||||||||||||||
Federal funds purchased | 13 | — | 5.39 | 46 | 1 | 4.60 | |||||||||||||||||
Other short-term borrowings | 1,611 | 46 | 5.65 | 7,979 | 207 | 5.23 | |||||||||||||||||
Medium- and long-term debt | 6,992 | 241 | 6.88 | 5,462 | 167 | 6.12 | |||||||||||||||||
Total interest-bearing sources | 46,916 | 909 | 3.88 | 46,170 | 694 | 3.02 | |||||||||||||||||
Noninterest-bearing deposits | 25,883 | 33,389 | |||||||||||||||||||||
Accrued expenses and other liabilities | 2,651 | 2,368 | |||||||||||||||||||||
Shareholders' equity | 5,962 | 5,834 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 81,412 | $ | 87,761 | |||||||||||||||||||
Net interest income/rate spread | $ | 1,081 | 1.32 | $ | 1,329 | 1.92 | |||||||||||||||||
Impact of net noninterest-bearing sources of funds | 1.51 | 1.32 | |||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.83 | % | 3.24 | % |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a) | $ | 26,292 | $ | 346 | 5.29 | % | $ | 26,451 | $ | 348 | 5.30 | % | $ | 31,663 | $ | 437 | 5.54 | % | |||||||||||||||||
Real estate construction loans | 4,553 | 95 | 8.43 | 5,174 | 108 | 8.37 | 3,708 | 75 | 8.11 | ||||||||||||||||||||||||||
Commercial mortgage loans | 14,171 | 263 | 7.47 | 13,642 | 253 | 7.46 | 13,801 | 245 | 7.12 | ||||||||||||||||||||||||||
Lease financing | 798 | 13 | 6.20 | 810 | 12 | 6.11 | 776 | 10 | 5.21 | ||||||||||||||||||||||||||
International loans | 1,111 | 22 | 8.02 | 1,141 | 22 | 7.80 | 1,268 | 24 | 7.80 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,898 | 18 | 3.83 | 1,882 | 18 | 3.74 | 1,858 | 16 | 3.40 | ||||||||||||||||||||||||||
Consumer loans | 2,248 | 46 | 8.24 | 2,272 | 47 | 8.32 | 2,294 | 45 | 7.78 | ||||||||||||||||||||||||||
Total loans | 51,071 | 803 | 6.32 | 51,372 | 808 | 6.33 | 55,368 | 852 | 6.18 | ||||||||||||||||||||||||||
Mortgage-backed securities (b) | 14,290 | 99 | 2.29 | 14,782 | 101 | 2.28 | 16,004 | 106 | 2.28 | ||||||||||||||||||||||||||
U.S. Treasury securities (c) | 1,460 | 2 | 0.39 | 1,546 | 1 | 0.28 | 1,861 | 2 | 0.44 | ||||||||||||||||||||||||||
Total investment securities | 15,750 | 101 | 2.14 | 16,328 | 102 | 2.12 | 17,865 | 108 | 2.10 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks (d) | 4,642 | 64 | 5.40 | 7,726 | 105 | 5.47 | 8,701 | 110 | 5.11 | ||||||||||||||||||||||||||
Other short-term investments | 366 | 3 | 3.99 | 381 | 4 | 4.01 | 377 | 4 | 3.75 | ||||||||||||||||||||||||||
Total earning assets | 71,829 | 971 | 5.20 | 75,807 | 1,019 | 5.20 | 82,311 | 1,074 | 5.07 | ||||||||||||||||||||||||||
Cash and due from banks | 603 | 938 | 1,163 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (691) | (688) | (642) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 7,466 | 7,560 | 7,523 | ||||||||||||||||||||||||||||||||
Total assets | $ | 79,207 | $ | 83,617 | $ | 90,355 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits (e) | $ | 29,080 | 236 | 3.24 | $ | 28,700 | 228 | 3.18 | $ | 24,177 | 132 | 2.17 | |||||||||||||||||||||||
Savings deposits | 2,287 | 2 | 0.22 | 2,352 | 1 | 0.23 | 2,877 | 2 | 0.21 | ||||||||||||||||||||||||||
Customer certificates of deposit | 3,901 | 36 | 3.67 | 3,868 | 36 | 3.76 | 2,306 | 12 | 2.20 | ||||||||||||||||||||||||||
Other time deposits | 2,403 | 31 | 5.28 | 3,964 | 52 | 5.28 | 4,395 | 54 | 4.98 | ||||||||||||||||||||||||||
Foreign office time deposits | 27 | — | 4.42 | 18 | — | 4.35 | 18 | 1 | 4.03 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 37,698 | 305 | 3.23 | 38,902 | 317 | 3.28 | 33,773 | 201 | 2.37 | ||||||||||||||||||||||||||
Federal funds purchased | — | — | — | 26 | — | 5.39 | 9 | — | 5.00 | ||||||||||||||||||||||||||
Other short-term borrowings | 666 | 9 | 5.63 | 2,555 | 37 | 5.65 | 10,559 | 142 | 5.39 | ||||||||||||||||||||||||||
Medium- and long-term debt | 7,082 | 124 | 6.98 | 6,903 | 117 | 6.77 | 7,073 | 110 | 6.24 | ||||||||||||||||||||||||||
Total interest-bearing sources | 45,446 | 438 | 3.85 | 48,386 | 471 | 3.90 | 51,414 | 453 | 3.52 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 25,357 | 26,408 | 30,559 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 2,556 | 2,746 | 2,444 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 5,848 | 6,077 | 5,938 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 79,207 | $ | 83,617 | $ | 90,355 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 533 | 1.35 | $ | 548 | 1.30 | $ | 621 | 1.55 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 1.51 | 1.50 | 1.38 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.86 | % | 2.80 | % | 2.93 | % |
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 MARCH 31, 2023 | $ | 394 | 131.5 | $ | 1,141 | $ | 2,209 | $ | (3,171) | $ | 11,476 | $ | (6,055) | $ | 5,994 | |||||||||||
Net income | — | — | — | — | — | 273 | — | 273 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (585) | — | — | (585) | ||||||||||||||||||
Cash dividends declared on common stock ($0.71 per share) | — | — | — | — | — | (94) | — | (94) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (5) | — | (5) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.2 | — | (4) | — | (2) | 11 | 5 | ||||||||||||||||||
Share-based compensation | — | — | — | 7 | — | — | — | 7 | ||||||||||||||||||
BALANCE AT JUNE 30, 2023 | $ | 394 | 131.7 | $ | 1,141 | $ | 2,212 | $ | (3,756) | $ | 11,648 | $ | (6,044) | $ | 5,595 | |||||||||||
BALANCE AT MARCH 31, 2024 | $ | 394 | 132.5 | $ | 1,141 | $ | 2,202 | $ | (3,457) | $ | 11,765 | $ | (5,995) | $ | 6,050 | |||||||||||
Net income | — | — | — | — | — | 206 | — | 206 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (6) | — | — | (6) | ||||||||||||||||||
Cash dividends declared on common stock ($0.71 per share) | — | — | — | — | — | (95) | — | (95) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (5) | — | (5) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.1 | — | (1) | — | (4) | 7 | 2 | ||||||||||||||||||
Share-based compensation | — | — | — | 9 | — | — | — | 9 | ||||||||||||||||||
BALANCE AT JUNE 30, 2024 | $ | 394 | 132.6 | $ | 1,141 | $ | 2,210 | $ | (3,463) | $ | 11,867 | $ | (5,988) | $ | 6,161 | |||||||||||
BALANCE AT DECEMBER 31, 2022 | $ | 394 | 131.0 | $ | 1,141 | $ | 2,220 | $ | (3,742) | $ | 11,258 | $ | (6,090) | $ | 5,181 | |||||||||||
Net income | — | — | — | — | — | 597 | — | 597 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (14) | — | — | (14) | ||||||||||||||||||
Cash dividends declared on common stock ($1.42 per share) | — | — | — | — | — | (188) | — | (188) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (11) | — | (11) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.7 | — | (43) | — | (8) | 46 | (5) | ||||||||||||||||||
Share-based compensation | — | — | — | 35 | — | — | — | 35 | ||||||||||||||||||
BALANCE AT JUNE 30, 2023 | $ | 394 | 131.7 | $ | 1,141 | $ | 2,212 | $ | (3,756) | $ | 11,648 | $ | (6,044) | $ | 5,595 | |||||||||||
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 | — | — | — | — | — | 344 | — | 344 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (415) | — | — | (415) | ||||||||||||||||||
Cash dividends declared on common stock ($1.42 per share) | — | — | — | — | — | (189) | — | (189) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (11) | — | (11) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.7 | — | (50) | — | — | 44 | (6) | ||||||||||||||||||
Share-based compensation | — | — | — | 36 | — | — | — | 36 | ||||||||||||||||||
BALANCE AT JUNE 30, 2024 | $ | 394 | 132.6 | $ | 1,141 | $ | 2,210 | $ | (3,463) | $ | 11,867 | $ | (5,988) | $ | 6,161 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial | Retail | Wealth | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 465 | $ | 203 | $ | 48 | $ | (220) | $ | 37 | $ | 533 | |||||||||||||||||||||||
Provision for credit losses | — | 1 | (2) | — | 1 | — | |||||||||||||||||||||||||||||
Noninterest income | 146 | 33 | 78 | 33 | 1 | 291 | |||||||||||||||||||||||||||||
Noninterest expenses | 250 | 177 | 88 | 1 | 39 | 555 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 85 | 14 | 10 | (46) | — | 63 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 276 | $ | 44 | $ | 30 | $ | (142) | $ | (2) | $ | 206 | |||||||||||||||||||||||
Net charge-offs | $ | 8 | $ | 2 | $ | 1 | $ | — | $ | — | $ | 11 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 45,843 | $ | 3,029 | $ | 5,299 | $ | 18,448 | $ | 6,588 | $ | 79,207 | |||||||||||||||||||||||
Loans | 43,709 | 2,322 | 5,026 | — | 14 | 51,071 | |||||||||||||||||||||||||||||
Deposits | 31,176 | 24,590 | 3,951 | 3,032 | 306 | 63,055 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.42 | % | 0.71 | % | 2.25 | % | n/m | n/m | 1.05 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 40.97 | 76.15 | 70.78 | n/m | n/m | 67.77 | |||||||||||||||||||||||||||||
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 | 147 | 29 | 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) | $ | 277 | $ | 40 | $ | 13 | $ | (189) | $ | (3) | $ | 138 | |||||||||||||||||||||||
Net charge-offs | $ | 14 | $ | — | $ | — | $ | — | $ | — | $ | 14 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 46,485 | $ | 3,025 | $ | 5,444 | $ | 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 | 79.14 | 86.66 | n/m | n/m | 76.91 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2023 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 504 | $ | 214 | $ | 51 | $ | (173) | $ | 25 | $ | 621 | |||||||||||||||||||||||
Provision for credit losses | 33 | (4) | 2 | — | 2 | 33 | |||||||||||||||||||||||||||||
Noninterest income | 158 | 29 | 83 | 29 | 4 | 303 | |||||||||||||||||||||||||||||
Noninterest expenses | 248 | 171 | 89 | 2 | 25 | 535 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 90 | 18 | 11 | (36) | — | 83 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 291 | $ | 58 | $ | 32 | $ | (110) | $ | 2 | $ | 273 | |||||||||||||||||||||||
Net (recoveries) charge-offs | $ | (3) | $ | — | $ | 1 | $ | — | $ | — | $ | (2) | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 50,945 | $ | 2,931 | $ | 5,624 | $ | 20,649 | $ | 10,206 | $ | 90,355 | |||||||||||||||||||||||
Loans | 47,813 | 2,214 | 5,341 | — | — | 55,368 | |||||||||||||||||||||||||||||
Deposits | 31,030 | 24,002 | 3,942 | 4,980 | 378 | 64,332 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.29 | % | 0.94 | % | 2.31 | % | n/m | n/m | 1.21 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 37.44 | 69.73 | 66.21 | n/m | n/m | 57.70 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Second | First | Second | Six Months Ended | |||||||||||||||||
Quarter | Quarter | Quarter | June 30, | |||||||||||||||||
(dollar amounts in millions, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Adjusted Earnings per Common Share: | ||||||||||||||||||||
Net income attributable to common shareholders | $ | 200 | $ | 131 | $ | 266 | $ | 331 | $ | 583 | ||||||||||
Net BSBY cessation hedging losses (a) | 3 | 36 | — | 39 | — | |||||||||||||||
FDIC special assessment (b) | 3 | 16 | — | 19 | — | |||||||||||||||
Modernization and expense recalibration initiatives (c) | 2 | 1 | 7 | 3 | 23 | |||||||||||||||
Income tax impact of above items | (2) | (13) | (2) | (15) | (6) | |||||||||||||||
Adjusted net income attributable to common shareholders | $ | 206 | $ | 171 | $ | 271 | $ | 377 | $ | 600 | ||||||||||
Diluted average common shares (in millions) | 134 | 133 | 132 | 134 | 132 | |||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Reported | $ | 1.49 | $ | 0.98 | $ | 2.01 | $ | 2.47 | $ | 4.40 | ||||||||||
Adjusted | 1.53 | 1.29 | 2.05 | 2.82 | 4.53 | |||||||||||||||
Adjusted Net Income, ROA and ROE: | ||||||||||||||||||||
Net income | $ | 206 | $ | 138 | $ | 273 | $ | 344 | $ | 597 | ||||||||||
Net BSBY cessation hedging losses (a) | 3 | 36 | — | 39 | — | |||||||||||||||
FDIC special assessment (b) | 3 | 16 | — | 19 | — | |||||||||||||||
Modernization and expense recalibration initiatives (c) | 2 | 1 | 7 | 3 | 23 | |||||||||||||||
Income tax impact of above items | (2) | (13) | (2) | (15) | (6) | |||||||||||||||
Adjusted net income | $ | 212 | $ | 178 | $ | 278 | $ | 390 | $ | 614 | ||||||||||
Average assets | $ | 79,207 | $ | 83,617 | $ | 90,355 | $ | 81,412 | $ | 87,761 | ||||||||||
Impact of adjusted items to average assets | — | — | (1) | (2) | (1) | |||||||||||||||
Adjusted average assets | $ | 79,207 | $ | 83,617 | $ | 90,354 | $ | 81,410 | $ | 87,760 | ||||||||||
ROA: | ||||||||||||||||||||
Reported | 1.05 | % | 0.66 | % | 1.21 | % | 0.85 | % | 1.37 | % | ||||||||||
Adjusted | 1.07 | 0.86 | 1.24 | 0.96 | 1.41 | |||||||||||||||
Average common shareholder’s equity | $ | 5,454 | $ | 5,683 | $ | 5,544 | $ | 5,568 | $ | 5,440 | ||||||||||
Impact of adjusted items to average common shareholders’ equity | — | 1 | 3 | 6 | 4 | |||||||||||||||
Adjusted average common shareholder’s equity | $ | 5,454 | $ | 5,684 | $ | 5,547 | $ | 5,574 | $ | 5,444 | ||||||||||
ROE: | ||||||||||||||||||||
Reported | 14.78 | % | 9.33 | % | 19.38 | % | 12.00 | % | 21.73 | % | ||||||||||
Adjusted | 15.18 | 12.22 | 19.72 | 13.66 | 22.35 |
June 30, | March 31, | June 30, | |||||||||
(in millions, except share data) | 2024 | 2024 | 2023 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 8,980 | $ | 8,863 | $ | 8,705 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common equity tier 1 capital | $ | 8,586 | $ | 8,469 | $ | 8,311 | |||||
Risk-weighted assets | $ | 74,338 | $ | 73,794 | $ | 80,624 | |||||
Tier 1 capital ratio | 12.08 | % | 12.01 | % | 10.80 | % | |||||
Common equity tier 1 capital ratio | 11.55 | 11.48 | 10.31 | ||||||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 6,161 | $ | 6,050 | $ | 5,595 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common shareholders' equity | $ | 5,767 | $ | 5,656 | $ | 5,201 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 7 | 8 | 8 | ||||||||
Tangible common equity | $ | 5,125 | $ | 5,013 | $ | 4,558 | |||||
Total assets | $ | 79,597 | $ | 79,444 | $ | 90,761 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 7 | 8 | 8 | ||||||||
Tangible assets | $ | 78,955 | $ | 78,801 | $ | 90,118 | |||||
Common equity ratio | 7.24 | % | 7.12 | % | 5.73 | % | |||||
Tangible common equity ratio | 6.49 | 6.36 | 5.06 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 5,767 | $ | 5,656 | $ | 5,201 | |||||
Tangible common equity | 5,125 | 5,013 | 4,558 | ||||||||
Shares of common stock outstanding (in millions) | 133 | 133 | 132 | ||||||||
Common shareholders' equity per share of common stock | $ | 43.49 | $ | 42.69 | $ | 39.48 | |||||
Tangible common equity per share of common stock | 38.65 | 37.84 | 34.59 | ||||||||
June 30, | March 31, | June 30, | |||||||||
(dollar amounts in millions) | 2024 | 2024 | 2023 | ||||||||
Uninsured Deposits: | |||||||||||
Total uninsured deposits, as calculated per regulatory guidelines | $ | 29,509 | $ | 30,481 | $ | 31,627 | |||||
Less: | |||||||||||
Affiliate deposits | (3,882) | (3,966) | (4,412) | ||||||||
Total uninsured deposits, excluding affiliate deposits | $ | 25,627 | $ | 26,515 | $ | 27,215 | |||||