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) | 3rd Qtr '24 | 2nd Qtr '24 | 3rd Qtr '23 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 534 | $ | 533 | $ | 601 | |||||||||||
Provision for credit losses | 14 | — | 14 | ||||||||||||||
Noninterest income | 277 | 291 | 295 | ||||||||||||||
Noninterest expenses | 562 | 555 | 555 | ||||||||||||||
Pre-tax income | 235 | 269 | 327 | ||||||||||||||
Provision for income taxes | 51 | 63 | 76 | ||||||||||||||
Net income | $ | 184 | $ | 206 | $ | 251 | |||||||||||
Diluted earnings per common share | $ | 1.33 | $ | 1.49 | $ | 1.84 | |||||||||||
Average loans | 50,861 | 51,071 | 53,987 | ||||||||||||||
Average deposits | 63,896 | 63,055 | 65,883 | ||||||||||||||
Return on average assets (ROA) | 0.92 | % | 1.05 | % | 1.12 | % | |||||||||||
Return on average common shareholders' equity (ROE) | 10.88 | 14.78 | 19.50 | ||||||||||||||
Net interest margin | 2.80 | 2.86 | 2.84 | ||||||||||||||
Efficiency ratio (a) | 68.80 | 67.77 | 61.86 | ||||||||||||||
Common equity Tier 1 capital ratio (b) | 11.97 | 11.55 | 10.80 | ||||||||||||||
Tier 1 capital ratio (b) | 12.51 | 12.08 | 11.30 | ||||||||||||||
(dollar amounts in millions, except per share data) | 3rd Qtr '24 | 2nd Qtr '24 | 3rd Qtr '23 | ||||||||||||||
Diluted earnings per common share | $ | 1.33 | $ | 1.49 | $ | 1.84 | |||||||||||
Net BSBY cessation hedging losses (a) |
0.05 | 0.01 | — | ||||||||||||||
FDIC special assessment (b) |
(0.02) | 0.02 | — | ||||||||||||||
Modernization and expense recalibration initiatives (c) |
0.01 | 0.01 | (0.08) | ||||||||||||||
Adjusted diluted earnings per common share | $ | 1.37 | $ | 1.53 | $ | 1.76 | |||||||||||
Net income attributable to common shareholders | $ | 177 | $ | 200 | $ | 244 | |||||||||||
Net BSBY cessation hedging losses (a) |
9 | 3 | — | ||||||||||||||
FDIC special assessment (b) |
(4) | 3 | — | ||||||||||||||
Modernization and expense recalibration initiatives (c) |
2 | 2 | (14) | ||||||||||||||
Income tax impact of above items | (2) | (2) | 3 | ||||||||||||||
Adjusted net income attributable to common shareholders | $ | 182 | $ | 206 | $ | 233 | |||||||||||
ROA | 0.92 | % | 1.05 | % | 1.12 | % | |||||||||||
Adjusted ROA | 0.94 | 1.07 | 1.07 | ||||||||||||||
ROE | 10.88 | 14.78 | 19.50 | ||||||||||||||
Adjusted ROE | 11.22 | 15.18 | 18.65 |
(dollar amounts in millions) | 3rd Qtr '24 | 2nd Qtr '24 | 3rd Qtr '23 | ||||||||||||||
Net interest income | $ | 534 | $ | 533 | $ | 601 | |||||||||||
Net interest margin | 2.80 | % | 2.86 | % | 2.84 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 73,103 | $ | 71,829 | $ | 80,996 | |||||||||||
Total loans | 50,861 | 51,071 | 53,987 | ||||||||||||||
Total investment securities | 15,880 | 15,750 | 16,881 | ||||||||||||||
Federal Reserve Bank deposits | 5,789 | 4,474 | 9,443 | ||||||||||||||
Total deposits | 63,896 | 63,055 | 65,883 | ||||||||||||||
Total noninterest-bearing deposits | 24,357 | 25,357 | 29,016 | ||||||||||||||
Short-term borrowings | 77 | 666 | 8,847 | ||||||||||||||
Medium- and long-term debt | 6,849 | 7,082 | 6,383 |
(dollar amounts in millions) | 3rd Qtr '24 | 2nd Qtr '24 | 3rd Qtr '23 | ||||||||||||||
Charge-offs | $ | 23 | $ | 28 | $ | 14 | |||||||||||
Recoveries | 12 | 17 | 8 | ||||||||||||||
Net charge-offs |
11 | 11 | 6 | ||||||||||||||
Net charge-offs/Average total loans |
0.08 | % | 0.09 | % | 0.05 | % | |||||||||||
Provision for credit losses | $ | 14 | $ | — | $ | 14 | |||||||||||
Nonperforming loans and nonperforming assets (NPAs) | 250 | 226 | 154 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.50 | % | 0.44 | % | 0.29 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 21 | $ | 11 | $ | 45 | |||||||||||
Allowance for loan losses | 686 | 686 | 694 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 34 | 31 | 42 | ||||||||||||||
Total allowance for credit losses | 720 | 717 | 736 | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.43 | % | 1.38 | % | 1.38 | % | |||||||||||
Allowance for credit losses/Nonperforming loans | 2.9x | 3.2x | 4.8x |
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 | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
(in millions, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||||||
Diluted earnings per common share | $ | 1.33 | $ | 1.49 | $ | 1.84 | $ | 3.80 | $ | 6.24 | ||||||||||
Cash dividends declared | 0.71 | 0.71 | 0.71 | 2.13 | 2.13 | |||||||||||||||
Average diluted shares (in thousands) | 134,039 | 133,763 | 132,655 | 133,727 | 132,520 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average common shareholders' equity | 10.88 | % | 14.78 | % | 19.50 | % | 11.58 | % | 21.02 | % | ||||||||||
Return on average assets | 0.92 | 1.05 | 1.12 | 0.87 | 1.29 | |||||||||||||||
Efficiency ratio (a) | 68.80 | 67.77 | 61.86 | 71.08 | 58.26 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Common equity tier 1 capital (b), (c) | $ | 8,684 | $ | 8,586 | $ | 8,472 | ||||||||||||||
Tier 1 capital (b), (c) | 9,078 | 8,980 | 8,866 | |||||||||||||||||
Risk-weighted assets (b) | 72,576 | 74,342 | 78,439 | |||||||||||||||||
Common equity tier 1 capital ratio (b), (c) | 11.97 | % | 11.55 | % | 10.80 | % | ||||||||||||||
Tier 1 capital ratio (b), (c) | 12.51 | 12.08 | 11.30 | |||||||||||||||||
Total capital ratio (b) | 14.30 | 14.02 | 13.17 | |||||||||||||||||
Leverage ratio (b) | 11.02 | 10.90 | 9.60 | |||||||||||||||||
Common shareholders' equity per share of common stock | $ | 52.52 | $ | 43.49 | $ | 34.73 | ||||||||||||||
Tangible common equity per share of common stock (c) | 47.69 | 38.65 | 29.85 | |||||||||||||||||
Common equity ratio | 8.75 | % | 7.24 | % | 5.34 | % | ||||||||||||||
Tangible common equity ratio (c) | 8.01 | 6.49 | 4.62 | |||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Commercial loans | $ | 26,173 | $ | 26,292 | $ | 29,721 | $ | 26,305 | $ | 30,631 | ||||||||||
Real estate construction loans | 4,205 | 4,553 | 4,294 | 4,642 | 3,786 | |||||||||||||||
Commercial mortgage loans | 14,494 | 14,171 | 13,814 | 14,104 | 13,694 | |||||||||||||||
Lease financing | 804 | 798 | 770 | 804 | 770 | |||||||||||||||
International loans | 1,036 | 1,111 | 1,241 | 1,096 | 1,245 | |||||||||||||||
Residential mortgage loans | 1,905 | 1,898 | 1,915 | 1,895 | 1,869 | |||||||||||||||
Consumer loans | 2,244 | 2,248 | 2,232 | 2,254 | 2,281 | |||||||||||||||
Total loans | 50,861 | 51,071 | 53,987 | 51,100 | 54,276 | |||||||||||||||
Earning assets | 73,103 | 71,829 | 80,996 | 73,578 | 80,241 | |||||||||||||||
Total assets | 80,231 | 79,207 | 89,150 | 81,016 | 88,229 | |||||||||||||||
Noninterest-bearing deposits | 24,357 | 25,357 | 29,016 | 25,371 | 31,916 | |||||||||||||||
Interest-bearing deposits | 39,539 | 37,698 | 36,867 | 38,716 | 34,093 | |||||||||||||||
Total deposits | 63,896 | 63,055 | 65,883 | 64,087 | 66,009 | |||||||||||||||
Common shareholders' equity | 6,546 | 5,454 | 4,984 | 5,898 | 5,286 | |||||||||||||||
Total shareholders' equity | 6,940 | 5,848 | 5,378 | 6,293 | 5,680 | |||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||
Net interest income | $ | 534 | $ | 533 | $ | 601 | $ | 1,615 | $ | 1,930 | ||||||||||
Net interest margin | 2.80 | % | 2.86 | % | 2.84 | % | 2.82 | % | 3.11 | % | ||||||||||
CREDIT QUALITY | ||||||||||||||||||||
Nonperforming assets | $ | 250 | $ | 226 | $ | 154 | ||||||||||||||
Loans past due 90 days or more and still accruing | 21 | 11 | 45 | |||||||||||||||||
Net charge-offs (recoveries) | 11 | 11 | 6 | $ | 36 | $ | 2 | |||||||||||||
Allowance for loan losses | 686 | 686 | 694 | |||||||||||||||||
Allowance for credit losses on lending-related commitments | 34 | 31 | 42 | |||||||||||||||||
Total allowance for credit losses | 720 | 717 | 736 | |||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.38 | % | 1.38 | % | ||||||||||||||
Net loan charge-offs as a percentage of average total loans | 0.08 | 0.09 | 0.05 | 0.09 | % | 0.01 | % | |||||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.50 | 0.44 | 0.29 | |||||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.9x | 3.2x | 4.8x | |||||||||||||||||
OTHER KEY INFORMATION | ||||||||||||||||||||
Number of banking centers | 380 | 381 | 408 | |||||||||||||||||
Number of employees - full time equivalent | 7,666 | 7,608 | 7,667 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||||
(in millions, except share data) | 2024 | 2024 | 2023 | 2023 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 870 | $ | 719 | $ | 1,443 | $ | 1,228 | ||||||
Interest-bearing deposits with banks | 5,523 | 4,093 | 8,059 | 6,884 | ||||||||||
Other short-term investments | 364 | 396 | 399 | 403 | ||||||||||
Investment securities available-for-sale | 15,886 | 15,656 | 16,869 | 16,323 | ||||||||||
Commercial loans | 25,953 | 27,113 | 27,251 | 29,007 | ||||||||||
Real estate construction loans | 3,859 | 4,554 | 5,083 | 4,545 | ||||||||||
Commercial mortgage loans | 14,774 | 14,156 | 13,686 | 13,721 | ||||||||||
Lease financing | 767 | 806 | 807 | 790 | ||||||||||
International loans | 1,003 | 1,087 | 1,102 | 1,194 | ||||||||||
Residential mortgage loans | 1,901 | 1,896 | 1,889 | 1,905 | ||||||||||
Consumer loans | 2,260 | 2,238 | 2,295 | 2,236 | ||||||||||
Total loans | 50,517 | 51,850 | 52,113 | 53,398 | ||||||||||
Allowance for loan losses | (686) | (686) | (688) | (694) | ||||||||||
Net loans | 49,831 | 51,164 | 51,425 | 52,704 | ||||||||||
Premises and equipment | 476 | 474 | 445 | 410 | ||||||||||
Accrued income and other assets | 6,713 | 7,095 | 7,194 | 7,754 | ||||||||||
Total assets | $ | 79,663 | $ | 79,597 | $ | 85,834 | $ | 85,706 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Noninterest-bearing deposits | $ | 23,819 | $ | 24,522 | $ | 27,849 | $ | 29,922 | ||||||
Money market and interest-bearing checking deposits | 31,469 | 29,016 | 28,246 | 26,298 | ||||||||||
Savings deposits | 2,155 | 2,247 | 2,381 | 2,521 | ||||||||||
Customer certificates of deposit | 3,592 | 3,775 | 3,723 | 3,401 | ||||||||||
Other time deposits | 2,017 | 2,879 | 4,550 | 5,011 | ||||||||||
Foreign office time deposits | 25 | 20 | 13 | 5 | ||||||||||
Total interest-bearing deposits | 39,258 | 37,937 | 38,913 | 37,236 | ||||||||||
Total deposits | 63,077 | 62,459 | 66,762 | 67,158 | ||||||||||
Short-term borrowings | — | 1,250 | 3,565 | 4,812 | ||||||||||
Accrued expenses and other liabilities | 2,434 | 2,615 | 2,895 | 2,715 | ||||||||||
Medium- and long-term debt | 6,786 | 7,112 | 6,206 | 6,049 | ||||||||||
Total liabilities | 72,297 | 73,436 | 79,428 | 80,734 | ||||||||||
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 | 2,217 | 2,210 | 2,224 | 2,220 | ||||||||||
Accumulated other comprehensive loss | (2,355) | (3,463) | (3,048) | (4,540) | ||||||||||
Retained earnings | 11,949 | 11,867 | 11,727 | 11,796 | ||||||||||
Less cost of common stock in treasury - 95,441,515 shares at 9/30/24, 95,559,986 shares at 06/30/24, 96,266,568 shares at 12/31/23, 96,374,736 shares at 9/30/23 |
(5,980) | (5,988) | (6,032) | (6,039) | ||||||||||
Total shareholders' equity | 7,366 | 6,161 | 6,406 | 4,972 | ||||||||||
Total liabilities and shareholders' equity | $ | 79,663 | $ | 79,597 | $ | 85,834 | $ | 85,706 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions, except per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
INTEREST INCOME | |||||||||||||||||
Interest and fees on loans | $ | 798 | $ | 862 | $ | 2,409 | $ | 2,491 | |||||||||
Interest on investment securities | 99 | 105 | 302 | 326 | |||||||||||||
Interest on short-term investments | 85 | 136 | 261 | 309 | |||||||||||||
Total interest income | 982 | 1,103 | 2,972 | 3,126 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Interest on deposits | 330 | 271 | 952 | 590 | |||||||||||||
Interest on short-term borrowings | 1 | 125 | 47 | 333 | |||||||||||||
Interest on medium- and long-term debt | 117 | 106 | 358 | 273 | |||||||||||||
Total interest expense | 448 | 502 | 1,357 | 1,196 | |||||||||||||
Net interest income | 534 | 601 | 1,615 | 1,930 | |||||||||||||
Provision for credit losses | 14 | 14 | 28 | 77 | |||||||||||||
Net interest income after provision for credit losses | 520 | 587 | 1,587 | 1,853 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Card fees | 64 | 71 | 194 | 212 | |||||||||||||
Fiduciary income | 57 | 59 | 166 | 179 | |||||||||||||
Service charges on deposit accounts | 46 | 47 | 137 | 140 | |||||||||||||
Capital markets income | 39 | 35 | 106 | 113 | |||||||||||||
Commercial lending fees | 17 | 19 | 50 | 55 | |||||||||||||
Brokerage fees | 13 | 6 | 37 | 22 | |||||||||||||
Bank-owned life insurance | 12 | 12 | 33 | 36 | |||||||||||||
Letter of credit fees | 10 | 10 | 30 | 31 | |||||||||||||
Risk management hedging income (loss) | 7 | 17 | (1) | 32 | |||||||||||||
Other noninterest income | 12 | 19 | 52 | 60 | |||||||||||||
Total noninterest income | 277 | 295 | 804 | 880 | |||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||
Salaries and benefits expense | 335 | 315 | 1,006 | 947 | |||||||||||||
Outside processing fee expense | 69 | 75 | 205 | 207 | |||||||||||||
Software expense | 46 | 44 | 135 | 127 | |||||||||||||
Occupancy expense | 46 | 44 | 134 | 126 | |||||||||||||
Equipment expense | 13 | 12 | 38 | 36 | |||||||||||||
FDIC insurance expense | 11 | 19 | 66 | 48 | |||||||||||||
Advertising expense | 10 | 12 | 30 | 30 | |||||||||||||
Other noninterest expenses | 32 | 34 | 106 | 120 | |||||||||||||
Total noninterest expenses | 562 | 555 | 1,720 | 1,641 | |||||||||||||
Income before income taxes | 235 | 327 | 671 | 1,092 | |||||||||||||
Provision for income taxes | 51 | 76 | 143 | 244 | |||||||||||||
NET INCOME | 184 | 251 | 528 | 848 | |||||||||||||
Less: | |||||||||||||||||
Income allocated to participating securities | 1 | 1 | 3 | 4 | |||||||||||||
Preferred stock dividends | 6 | 6 | 17 | 17 | |||||||||||||
Net income attributable to common shares | $ | 177 | $ | 244 | $ | 508 | $ | 827 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 1.34 | $ | 1.85 | $ | 3.83 | $ | 6.27 | |||||||||
Diluted | 1.33 | 1.84 | 3.80 | 6.24 | |||||||||||||
Comprehensive income (loss) | 1,292 | (533) | 1,221 | 50 | |||||||||||||
Cash dividends declared on common stock | 94 | 94 | 283 | 282 | |||||||||||||
Cash dividends declared per common share | 0.71 | 0.71 | 2.13 | 2.13 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | Third Quarter 2024 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Second Quarter 2024 | Third Quarter 2023 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2024 | 2024 | 2024 | 2023 | 2023 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 798 | $ | 803 | $ | 808 | $ | 849 | $ | 862 | $ | (5) | (1 | %) | $ | (64) | (7 | %) | |||||||||||||||||
Interest on investment securities | 99 | 101 | 102 | 104 | 105 | (2) | (1) | (6) | (6) | ||||||||||||||||||||||||||
Interest on short-term investments | 85 | 67 | 109 | 96 | 136 | 18 | 26 | (51) | (38) | ||||||||||||||||||||||||||
Total interest income | 982 | 971 | 1,019 | 1,049 | 1,103 | 11 | 1 | (121) | (11) | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 330 | 305 | 317 | 302 | 271 | 25 | 8 | 59 | 22 | ||||||||||||||||||||||||||
Interest on short-term borrowings | 1 | 9 | 37 | 58 | 125 | (8) | (88) | (124) | (99) | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 117 | 124 | 117 | 105 | 106 | (7) | (5) | 11 | 11 | ||||||||||||||||||||||||||
Total interest expense | 448 | 438 | 471 | 465 | 502 | 10 | 3 | (54) | (11) | ||||||||||||||||||||||||||
Net interest income | 534 | 533 | 548 | 584 | 601 | 1 | — | (67) | (11) | ||||||||||||||||||||||||||
Provision for credit losses | 14 | — | 14 | 12 | 14 | 14 | n/m | — | — | ||||||||||||||||||||||||||
Net interest income after provision
for credit losses
|
520 | 533 | 534 | 572 | 587 | (13) | (3) | (67) | (12) | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 64 | 64 | 66 | 68 | 71 | — | — | (7) | (9) | ||||||||||||||||||||||||||
Fiduciary income | 57 | 58 | 51 | 56 | 59 | (1) | (2) | (2) | (4) | ||||||||||||||||||||||||||
Service charges on deposit accounts | 46 | 46 | 45 | 45 | 47 | — | — | (1) | (2) | ||||||||||||||||||||||||||
Capital markets income | 39 | 37 | 30 | 34 | 35 | 2 | 7 | 4 | 11 | ||||||||||||||||||||||||||
Commercial lending fees | 17 | 17 | 16 | 17 | 19 | — | — | (2) | (8) | ||||||||||||||||||||||||||
Brokerage fees | 13 | 14 | 10 | 8 | 6 | (1) | — | 7 | n/m | ||||||||||||||||||||||||||
Bank-owned life insurance | 12 | 11 | 10 | 10 | 12 | 1 | 9 | — | — | ||||||||||||||||||||||||||
Letter of credit fees | 10 | 10 | 10 | 11 | 10 | — | — | — | — | ||||||||||||||||||||||||||
Risk management hedging income (loss) | 7 | 17 | (25) | (74) | 17 | (10) | (57) | (10) | (58) | ||||||||||||||||||||||||||
Other noninterest income | 12 | 17 | 23 | 23 | 19 | (5) | (34) | (7) | (35) | ||||||||||||||||||||||||||
Total noninterest income | 277 | 291 | 236 | 198 | 295 | (14) | (4) | (18) | (6) | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 335 | 323 | 348 | 359 | 315 | 12 | 4 | 20 | 6 | ||||||||||||||||||||||||||
Outside processing fee expense | 69 | 68 | 68 | 70 | 75 | 1 | 1 | (6) | (9) | ||||||||||||||||||||||||||
Software expense | 46 | 45 | 44 | 44 | 44 | 1 | 1 | 2 | 4 | ||||||||||||||||||||||||||
Occupancy expense | 46 | 44 | 44 | 45 | 44 | 2 | 5 | 2 | 5 | ||||||||||||||||||||||||||
Equipment expense |
13 | 13 | 12 | 14 | 12 | — | — | 1 | 9 | ||||||||||||||||||||||||||
FDIC insurance expense | 11 | 19 | 36 | 132 | 19 | (8) | (49) | (8) | (45) | ||||||||||||||||||||||||||
Advertising expense | 10 | 12 | 8 | 10 | 12 | (2) | (4) | (2) | (8) | ||||||||||||||||||||||||||
Other noninterest expenses | 32 | 31 | 43 | 44 | 34 | 1 | 1 | (2) | (9) | ||||||||||||||||||||||||||
Total noninterest expenses | 562 | 555 | 603 | 718 | 555 | 7 | 1 | 7 | 1 | ||||||||||||||||||||||||||
Income before income taxes | 235 | 269 | 167 | 52 | 327 | (34) | (12) | (92) | (28) | ||||||||||||||||||||||||||
Provision for income taxes | 51 | 63 | 29 | 19 | 76 | (12) | (18) | (25) | (32) | ||||||||||||||||||||||||||
NET INCOME | 184 | 206 | 138 | 33 | 251 | (22) | (10) | (67) | (26) | ||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Income allocated to participating securities | 1 | 1 | 1 | — | 1 | — | — | — | — | ||||||||||||||||||||||||||
Preferred stock dividends | 6 | 5 | 6 | 6 | 6 | 1 | — | — | — | ||||||||||||||||||||||||||
Net income attributable to common shares | $ | 177 | $ | 200 | $ | 131 | $ | 27 | $ | 244 | $ | (23) | (11 | %) | $ | (67) | (27 | %) | |||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 1.34 | $ | 1.50 | $ | 0.99 | $ | 0.20 | $ | 1.85 | $ | (0.16) | (11 | %) | $ | (0.51) | (28 | %) | |||||||||||||||||
Diluted | 1.33 | 1.49 | 0.98 | 0.20 | 1.84 | (0.16) | (11) | (0.51) | (28) | ||||||||||||||||||||||||||
Comprehensive income (loss) | 1,292 | 200 | (271) | 1,525 | (533) | 1,092 | n/m | 1,825 | n/m | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 94 | 95 | 94 | 93 | 94 | (1) | n/m | — | — | ||||||||||||||||||||||||||
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) | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
Balance at beginning 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 | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 11 | 19 | 20 | 13 | 9 | |||||||||||||||
Commercial mortgage | 10 | 6 | — | 1 | 3 | |||||||||||||||
Lease financing | 1 | 3 | — | — | — | |||||||||||||||
International | 1 | — | — | 11 | 1 | |||||||||||||||
Consumer | — | — | 1 | — | 1 | |||||||||||||||
Total loan charge-offs | 23 | 28 | 21 | 25 | 14 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 6 | 15 | 6 | 3 | 5 | |||||||||||||||
Commercial mortgage | 1 | 1 | — | 2 | 2 | |||||||||||||||
International | 5 | — | — | — | — | |||||||||||||||
Consumer | — | 1 | 1 | — | 1 | |||||||||||||||
Total recoveries | 12 | 17 | 7 | 5 | 8 | |||||||||||||||
Net loan charge-offs | 11 | 11 | 14 | 20 | 6 | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | 11 | 6 | 17 | 14 | 16 | |||||||||||||||
Provision for credit losses on lending-related commitments | 3 | (6) | (3) | (2) | (2) | |||||||||||||||
Provision for credit losses | 14 | — | 14 | 12 | 14 | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 686 | 686 | 691 | 688 | 694 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 34 | 31 | 37 | 40 | 42 | |||||||||||||||
Allowance for credit losses | $ | 720 | $ | 717 | $ | 728 | $ | 728 | $ | 736 | ||||||||||
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.38 | % | 1.43 | % | 1.40 | % | 1.38 | % | ||||||||||
Net loan charge-offs as a percentage of average total loans | 0.08 | 0.09 | 0.10 | 0.15 | 0.05 | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
(in millions) | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 97 | $ | 94 | $ | 88 | $ | 75 | $ | 83 | ||||||||||
Real estate construction | — | — | — | 2 | 2 | |||||||||||||||
Commercial mortgage | 88 | 69 | 67 | 41 | 30 | |||||||||||||||
Lease financing | 1 | 1 | — | — | — | |||||||||||||||
International | 3 | 13 | 16 | 20 | 3 | |||||||||||||||
Total nonperforming business loans | 189 | 177 | 171 | 138 | 118 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 36 | 23 | 23 | 19 | 19 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 25 | 26 | 23 | 21 | 17 | |||||||||||||||
Total nonperforming retail loans | 61 | 49 | 46 | 40 | 36 | |||||||||||||||
Total nonperforming loans and nonperforming assets | 250 | 226 | 217 | 178 | 154 | |||||||||||||||
Nonperforming loans as a percentage of total loans | 0.50 | % | 0.44 | % | 0.43 | % | 0.34 | % | 0.29 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.50 | 0.44 | 0.43 | 0.34 | 0.29 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.9x | 3.2x | 3.4x | 4.1x | 4.8x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 21 | $ | 11 | $ | 32 | $ | 20 | $ | 45 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 226 | $ | 217 | $ | 178 | $ | 154 | $ | 186 | ||||||||||
Loans transferred to nonaccrual (a) | 55 | 45 | 83 | 54 | 14 | |||||||||||||||
Nonaccrual loan gross charge-offs | (23) | (28) | (21) | (25) | (14) | |||||||||||||||
Loans transferred to accrual status (a) | — | — | (2) | — | (7) | |||||||||||||||
Nonaccrual loans sold | (14) | (2) | (12) | (1) | — | |||||||||||||||
Payments/other (b) | 6 | (6) | (9) | (4) | (25) | |||||||||||||||
Nonaccrual loans at end of period | $ | 250 | $ | 226 | $ | 217 | $ | 178 | $ | 154 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2024 | September 30, 2023 | ||||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
Commercial loans (a) | $ | 26,305 | $ | 1,035 | 5.26 | % | $ | 30,631 | $ | 1,263 | 5.52 | % | |||||||||||
Real estate construction loans | 4,642 | 292 | 8.41 | 3,786 | 228 | 8.05 | |||||||||||||||||
Commercial mortgage loans | 14,104 | 788 | 7.46 | 13,694 | 723 | 7.06 | |||||||||||||||||
Lease financing | 804 | 37 | 6.14 | 770 | 25 | 4.24 | |||||||||||||||||
International loans | 1,096 | 64 | 7.85 | 1,245 | 73 | 7.89 | |||||||||||||||||
Residential mortgage loans | 1,895 | 55 | 3.84 | 1,869 | 49 | 3.47 | |||||||||||||||||
Consumer loans | 2,254 | 138 | 8.20 | 2,281 | 130 | 7.65 | |||||||||||||||||
Total loans | 51,100 | 2,409 | 6.30 | 54,276 | 2,491 | 6.14 | |||||||||||||||||
Mortgage-backed securities (b) | 14,560 | 298 | 2.29 | 15,865 | 318 | 2.28 | |||||||||||||||||
U.S. Treasury securities (c) | 1,425 | 4 | 0.38 | 1,966 | 8 | 0.53 | |||||||||||||||||
Total investment securities | 15,985 | 302 | 2.14 | 17,831 | 326 | 2.10 | |||||||||||||||||
Interest-bearing deposits with banks (d) | 6,112 | 250 | 5.45 | 7,815 | 300 | 5.14 | |||||||||||||||||
Other short-term investments | 381 | 11 | 3.94 | 319 | 9 | 3.57 | |||||||||||||||||
Total earning assets | 73,578 | 2,972 | 5.19 | 80,241 | 3,126 | 5.03 | |||||||||||||||||
Cash and due from banks | 711 | 1,251 | |||||||||||||||||||||
Allowance for loan losses | (688) | (646) | |||||||||||||||||||||
Accrued income and other assets | 7,415 | 7,383 | |||||||||||||||||||||
Total assets | $ | 81,016 | $ | 88,229 | |||||||||||||||||||
Money market and interest-bearing checking deposits (e) | $ | 29,585 | 724 | 3.26 | $ | 25,519 | 419 | 2.18 | |||||||||||||||
Savings deposits | 2,277 | 4 | 0.21 | 2,886 | 5 | 0.20 | |||||||||||||||||
Customer certificates of deposit | 3,797 | 103 | 3.61 | 2,414 | 42 | 2.35 | |||||||||||||||||
Other time deposits | 3,035 | 120 | 5.30 | 3,247 | 123 | 5.08 | |||||||||||||||||
Foreign office time deposits | 22 | 1 | 4.39 | 27 | 1 | 3.90 | |||||||||||||||||
Total interest-bearing deposits | 38,716 | 952 | 3.28 | 34,093 | 590 | 2.30 | |||||||||||||||||
Federal funds purchased | 9 | — | 5.39 | 34 | 1 | 4.68 | |||||||||||||||||
Other short-term borrowings | 1,095 | 47 | 5.65 | 8,268 | 332 | 5.37 | |||||||||||||||||
Medium- and long-term debt | 6,944 | 358 | 6.87 | 5,772 | 273 | 6.31 | |||||||||||||||||
Total interest-bearing sources | 46,764 | 1,357 | 3.86 | 48,167 | 1,196 | 3.30 | |||||||||||||||||
Noninterest-bearing deposits | 25,371 | 31,916 | |||||||||||||||||||||
Accrued expenses and other liabilities | 2,588 | 2,466 | |||||||||||||||||||||
Shareholders' equity | 6,293 | 5,680 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 81,016 | $ | 88,229 | |||||||||||||||||||
Net interest income/rate spread | $ | 1,615 | 1.33 | $ | 1,930 | 1.73 | |||||||||||||||||
Impact of net noninterest-bearing sources of funds | 1.49 | 1.38 | |||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.82 | % | 3.11 | % |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a) | $ | 26,173 | $ | 341 | 5.18 | % | $ | 26,292 | $ | 346 | 5.29 | % | $ | 29,721 | $ | 416 | 5.55 | % | |||||||||||||||||
Real estate construction loans | 4,205 | 89 | 8.43 | 4,553 | 95 | 8.43 | 4,294 | 90 | 8.29 | ||||||||||||||||||||||||||
Commercial mortgage loans | 14,494 | 272 | 7.44 | 14,171 | 263 | 7.47 | 13,814 | 257 | 7.38 | ||||||||||||||||||||||||||
Lease financing | 804 | 12 | 6.10 | 798 | 13 | 6.20 | 770 | 11 | 5.56 | ||||||||||||||||||||||||||
International loans | 1,036 | 20 | 7.73 | 1,111 | 22 | 8.02 | 1,241 | 25 | 7.97 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,905 | 19 | 3.94 | 1,898 | 18 | 3.83 | 1,915 | 18 | 3.72 | ||||||||||||||||||||||||||
Consumer loans | 2,244 | 45 | 8.04 | 2,248 | 46 | 8.24 | 2,232 | 45 | 8.10 | ||||||||||||||||||||||||||
Total loans | 50,861 | 798 | 6.24 | 51,071 | 803 | 6.32 | 53,987 | 862 | 6.34 | ||||||||||||||||||||||||||
Mortgage-backed securities (b) | 14,608 | 98 | 2.29 | 14,290 | 99 | 2.29 | 15,205 | 104 | 2.28 | ||||||||||||||||||||||||||
U.S. Treasury securities (c) | 1,272 | 1 | 0.50 | 1,460 | 2 | 0.39 | 1,676 | 1 | 0.26 | ||||||||||||||||||||||||||
Total investment securities | 15,880 | 99 | 2.17 | 15,750 | 101 | 2.14 | 16,881 | 105 | 2.10 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks (d) | 5,969 | 81 | 5.32 | 4,642 | 64 | 5.40 | 9,737 | 132 | 5.40 | ||||||||||||||||||||||||||
Other short-term investments | 393 | 4 | 3.83 | 366 | 3 | 3.99 | 391 | 4 | 4.00 | ||||||||||||||||||||||||||
Total earning assets | 73,103 | 982 | 5.17 | 71,829 | 971 | 5.20 | 80,996 | 1,103 | 5.21 | ||||||||||||||||||||||||||
Cash and due from banks | 593 | 603 | 1,130 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (686) | (691) | (684) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 7,221 | 7,466 | 7,708 | ||||||||||||||||||||||||||||||||
Total assets | $ | 80,231 | $ | 79,207 | $ | 89,150 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits (e) | $ | 30,960 | 260 | 3.34 | $ | 29,080 | 236 | 3.24 | $ | 26,043 | 178 | 2.70 | |||||||||||||||||||||||
Savings deposits | 2,194 | 1 | 0.19 | 2,287 | 2 | 0.22 | 2,640 | 2 | 0.23 | ||||||||||||||||||||||||||
Customer certificates of deposit | 3,625 | 31 | 3.39 | 3,901 | 36 | 3.67 | 3,049 | 24 | 3.08 | ||||||||||||||||||||||||||
Other time deposits | 2,739 | 37 | 5.35 | 2,403 | 31 | 5.28 | 5,121 | 67 | 5.21 | ||||||||||||||||||||||||||
Foreign office time deposits | 21 | 1 | 4.38 | 27 | — | 4.42 | 14 | — | 4.34 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 39,539 | 330 | 3.31 | 37,698 | 305 | 3.23 | 36,867 | 271 | 2.90 | ||||||||||||||||||||||||||
Federal funds purchased | — | — | — | — | — | — | 11 | — | 5.31 | ||||||||||||||||||||||||||
Other short-term borrowings | 77 | 1 | 5.65 | 666 | 9 | 5.63 | 8,836 | 125 | 5.60 | ||||||||||||||||||||||||||
Medium- and long-term debt | 6,849 | 117 | 6.87 | 7,082 | 124 | 6.98 | 6,383 | 106 | 6.64 | ||||||||||||||||||||||||||
Total interest-bearing sources | 46,465 | 448 | 3.84 | 45,446 | 438 | 3.85 | 52,097 | 502 | 3.81 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 24,357 | 25,357 | 29,016 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 2,469 | 2,556 | 2,659 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 6,940 | 5,848 | 5,378 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 80,231 | $ | 79,207 | $ | 89,150 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 534 | 1.33 | $ | 533 | 1.35 | $ | 601 | 1.40 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 1.47 | 1.51 | 1.44 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.80 | % | 2.86 | % | 2.84 | % |
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 JUNE 30, 2023 | $ | 394 | 131.7 | $ | 1,141 | $ | 2,212 | $ | (3,756) | $ | 11,648 | $ | (6,044) | $ | 5,595 | |||||||||||
Net income | — | — | — | — | — | 251 | — | 251 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (784) | — | — | (784) | ||||||||||||||||||
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 | — | 0.1 | — | (1) | — | (3) | 5 | 1 | ||||||||||||||||||
Share-based compensation | — | — | — | 9 | — | — | — | 9 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2023 | $ | 394 | 131.8 | $ | 1,141 | $ | 2,220 | $ | (4,540) | $ | 11,796 | $ | (6,039) | $ | 4,972 | |||||||||||
BALANCE AT JUNE 30, 2024 | $ | 394 | 132.6 | $ | 1,141 | $ | 2,210 | $ | (3,463) | $ | 11,867 | $ | (5,988) | $ | 6,161 | |||||||||||
Net income | — | — | — | — | — | 184 | — | 184 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 1,108 | — | — | 1,108 | ||||||||||||||||||
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 | — | 0.1 | — | (2) | — | (2) | 8 | 4 | ||||||||||||||||||
Share-based compensation | — | — | — | 9 | — | — | — | 9 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2024 | $ | 394 | 132.7 | $ | 1,141 | $ | 2,217 | $ | (2,355) | $ | 11,949 | $ | (5,980) | $ | 7,366 | |||||||||||
BALANCE AT DECEMBER 31, 2022 | $ | 394 | 131.0 | $ | 1,141 | $ | 2,220 | $ | (3,742) | $ | 11,258 | $ | (6,090) | $ | 5,181 | |||||||||||
Net income | — | — | — | — | — | 848 | — | 848 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (798) | — | — | (798) | ||||||||||||||||||
Cash dividends declared on common stock ($2.13 per share) | — | — | — | — | — | (282) | — | (282) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (17) | — | (17) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.8 | — | (44) | — | (11) | 51 | (4) | ||||||||||||||||||
Share-based compensation | — | — | — | 44 | — | — | — | 44 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2023 | $ | 394 | 131.8 | $ | 1,141 | $ | 2,220 | $ | (4,540) | $ | 11,796 | $ | (6,039) | $ | 4,972 | |||||||||||
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 | — | — | — | — | — | 528 | — | 528 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 693 | — | — | 693 | ||||||||||||||||||
Cash dividends declared on common stock ($2.13 per share) | — | — | — | — | — | (283) | — | (283) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (17) | — | (17) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.8 | — | (52) | — | (2) | 52 | (2) | ||||||||||||||||||
Share-based compensation | — | — | — | 45 | — | — | — | 45 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2024 | $ | 394 | 132.7 | $ | 1,141 | $ | 2,217 | $ | (2,355) | $ | 11,949 | $ | (5,980) | $ | 7,366 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial Bank | Retail Bank | Wealth Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 464 | $ | 205 | $ | 46 | $ | (220) | $ | 39 | $ | 534 | |||||||||||||||||||||||
Provision for credit losses | 6 | 4 | 3 | — | 1 | 14 | |||||||||||||||||||||||||||||
Noninterest income | 149 | 24 | 73 | 26 | 5 | 277 | |||||||||||||||||||||||||||||
Noninterest expenses | 252 | 175 | 90 | 1 | 44 | 562 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 83 | 12 | 7 | (48) | (3) | 51 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 272 | $ | 38 | $ | 19 | $ | (147) | $ | 2 | $ | 184 | |||||||||||||||||||||||
Net charge-offs | $ | 10 | $ | 1 | $ | — | $ | — | $ | — | $ | 11 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 45,669 | $ | 3,045 | $ | 5,296 | $ | 18,277 | $ | 7,944 | $ | 80,231 | |||||||||||||||||||||||
Loans | 43,462 | 2,347 | 5,042 | — | 10 | 50,861 | |||||||||||||||||||||||||||||
Deposits | 32,261 | 24,224 | 3,844 | 3,300 | 267 | 63,896 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.36 | % | 0.63 | % | 1.47 | % | n/m | n/m | 0.92 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 41.23 | 74.24 | 75.35 | n/m | n/m | 68.80 | |||||||||||||||||||||||||||||
Commercial Bank | Retail Bank | Wealth Management | Finance | Other | Total | ||||||||||||||||||||||||||||||
Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||
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) | 40.90 | 76.12 | 70.78 | n/m | n/m | 67.77 | |||||||||||||||||||||||||||||
Commercial Bank | Retail Bank | Wealth Management | Finance | Other | Total | ||||||||||||||||||||||||||||||
Three Months Ended September 30, 2023 | |||||||||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 505 | $ | 208 | $ | 49 | $ | (187) | $ | 26 | $ | 601 | |||||||||||||||||||||||
Provision for credit losses | 22 | — | (9) | — | 1 | 14 | |||||||||||||||||||||||||||||
Noninterest income | 150 | 31 | 78 | 40 | (4) | 295 | |||||||||||||||||||||||||||||
Noninterest expenses | 257 | 175 | 102 | 1 | 20 | 555 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 89 | 16 | 9 | (37) | (1) | 76 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 287 | $ | 48 | $ | 25 | $ | (111) | $ | 2 | $ | 251 | |||||||||||||||||||||||
Net charge-offs | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | 6 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 49,459 | $ | 2,985 | $ | 5,557 | $ | 19,832 | $ | 11,317 | $ | 89,150 | |||||||||||||||||||||||
Loans | 46,477 | 2,250 | 5,227 | — | 33 | 53,987 | |||||||||||||||||||||||||||||
Deposits | 31,868 | 24,034 | 3,950 | 5,711 | 320 | 65,883 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.30 | % | 0.79 | % | 1.81 | % | n/m | n/m | 1.12 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 39.34 | 72.71 | 79.99 | n/m | n/m | 61.86 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Third | Second | Third | Nine Months Ended | |||||||||||||||||
Quarter | Quarter | Quarter | September 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 | $ | 177 | $ | 200 | $ | 244 | $ | 508 | $ | 827 | ||||||||||
Net BSBY cessation hedging losses (a) | 9 | 3 | — | 48 | — | |||||||||||||||
FDIC special assessment (b) | (4) | 3 | — | 15 | — | |||||||||||||||
Modernization and expense recalibration initiatives (c) | 2 | 2 | (14) | 5 | 9 | |||||||||||||||
Income tax impact of above items | (2) | (2) | 3 | (16) | (2) | |||||||||||||||
Adjusted net income attributable to common shareholders | $ | 182 | $ | 206 | $ | 233 | $ | 560 | $ | 834 | ||||||||||
Diluted average common shares (in millions) | 134 | 134 | 133 | 134 | 133 | |||||||||||||||
Diluted earnings per common share: | ||||||||||||||||||||
Reported | $ | 1.33 | $ | 1.49 | $ | 1.84 | $ | 3.80 | $ | 6.24 | ||||||||||
Adjusted | 1.37 | 1.53 | 1.76 | 4.19 | 6.29 | |||||||||||||||
Adjusted Net Income, ROA and ROE: | ||||||||||||||||||||
Net income | $ | 184 | $ | 206 | $ | 251 | $ | 528 | $ | 848 | ||||||||||
Net BSBY cessation hedging losses (a) | 9 | 3 | — | 48 | — | |||||||||||||||
FDIC special assessment (b) | (4) | 3 | — | 15 | — | |||||||||||||||
Modernization and expense recalibration initiatives (c) | 2 | 2 | (14) | 5 | 9 | |||||||||||||||
Income tax impact of above items | (2) | (2) | 3 | (16) | (2) | |||||||||||||||
Adjusted net income | $ | 189 | $ | 212 | $ | 240 | $ | 580 | $ | 855 | ||||||||||
Average assets | $ | 80,231 | $ | 79,207 | $ | 89,150 | $ | 81,016 | $ | 88,229 | ||||||||||
Impact of adjusted items to average assets | — | — | 1 | (3) | — | |||||||||||||||
Adjusted average assets | $ | 80,231 | $ | 79,207 | $ | 89,151 | $ | 81,013 | $ | 88,229 | ||||||||||
ROA: | ||||||||||||||||||||
Reported | 0.92 | % | 1.05 | % | 1.12 | % | 0.87 | % | 1.29 | % | ||||||||||
Adjusted | 0.94 | 1.07 | 1.07 | 0.96 | 1.29 | |||||||||||||||
Average common shareholder’s equity | $ | 6,546 | $ | 5,454 | $ | 4,984 | $ | 5,898 | $ | 5,286 | ||||||||||
Impact of adjusted items to average common shareholders’ equity | 1 | — | (3) | 10 | 1 | |||||||||||||||
Adjusted average common shareholder’s equity | $ | 6,547 | $ | 5,454 | $ | 4,981 | $ | 5,908 | $ | 5,287 | ||||||||||
ROE: | ||||||||||||||||||||
Reported | 10.88 | % | 14.78 | % | 19.50 | % | 11.58 | % | 21.02 | % | ||||||||||
Adjusted | 11.22 | 15.18 | 18.65 | 12.74 | 21.18 |
September 30, | June 30, | September 30, | |||||||||
(in millions, except share data) | 2024 | 2024 | 2023 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 9,078 | $ | 8,980 | $ | 8,866 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common equity tier 1 capital | $ | 8,684 | $ | 8,586 | $ | 8,472 | |||||
Risk-weighted assets | $ | 72,576 | $ | 74,342 | $ | 78,439 | |||||
Tier 1 capital ratio | 12.51 | % | 12.08 | % | 11.30 | % | |||||
Common equity tier 1 capital ratio | 11.97 | 11.55 | 10.80 | ||||||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 7,366 | $ | 6,161 | $ | 4,972 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common shareholders' equity | $ | 6,972 | $ | 5,767 | $ | 4,578 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 6 | 7 | 8 | ||||||||
Tangible common equity | $ | 6,331 | $ | 5,125 | $ | 3,935 | |||||
Total assets | $ | 79,663 | $ | 79,597 | $ | 85,706 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 6 | 7 | 8 | ||||||||
Tangible assets | $ | 79,022 | $ | 78,955 | $ | 85,063 | |||||
Common equity ratio | 8.75 | % | 7.24 | % | 5.34 | % | |||||
Tangible common equity ratio | 8.01 | 6.49 | 4.62 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 6,972 | $ | 5,767 | $ | 4,578 | |||||
Tangible common equity | 6,331 | 5,125 | 3,935 | ||||||||
Shares of common stock outstanding (in millions) | 133 | 133 | 132 | ||||||||
Common shareholders' equity per share of common stock | $ | 52.52 | $ | 43.49 | $ | 34.73 | |||||
Tangible common equity per share of common stock | 47.69 | 38.65 | 29.85 | ||||||||
September 30, | June 30, | September 30, | |||||||||
(dollar amounts in millions) | 2024 | 2024 | 2023 | ||||||||
Uninsured Deposits: | |||||||||||
Total uninsured deposits, as calculated per regulatory guidelines | $ | 31,926 | $ | 29,509 | $ | 31,476 | |||||
Less: | |||||||||||
Affiliate deposits | (3,839) | (3,882) | (4,088) | ||||||||
Total uninsured deposits, excluding affiliate deposits | $ | 28,087 | $ | 25,627 | $ | 27,388 | |||||