Comerica Incorporated Goldman SachsFinancial Services ConferenceDecember 9, 2014 Ralph W. Babb, Jr.Chairman and Chief Executive Officer Karen ParkhillVice Chairman andChief Financial Officer J. Patrick FaubionPresident, Comerica Bank -Texas Market 2 Safe Harbor Statement Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities LitigationReform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,”“outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,”“outcome,” “continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words andsimilar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as theyrelate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated onthe beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of thispresentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives ofComerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures ofeconomic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability.Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks anduncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual resultscould differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, politicalor industry conditions; changes in monetary and fiscal policies, including changes in interest rates; volatility and disruptions in global capital andcredit markets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight;unfavorable developments concerning credit quality; the effects of more stringent capital or liquidity requirements; declines or other changes in thebusinesses or industries of Comerica's customers; operational difficulties, failure of technology infrastructure or information security incidents; theimplementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology to efficiently and effectively develop,market and deliver new products and services; changes in the financial markets, including fluctuations in interest rates and their impact on depositpricing; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; anyfuture strategic acquisitions or divestitures; management's ability to maintain and expand customer relationships; management's ability to retainkey officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing riskexposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes,tornadoes, earthquakes, fires and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comericacautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, pleaserefer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 ofComerica's Annual Report on Form 10-K for the year ended December 31, 2013. Forward-looking statements speak only as of the date they aremade. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur afterthe date the forward-looking statements are made. For any forward-looking statements made in this presentation or in any documents, Comericaclaims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
3 Comerica: A Brief Overview Loans by Business Line(3Q14 Average) Wealth Management$4.8B10% Business Bank$36.9B78% Retail Bank$5.5B12% Finance & Other$0.4B1% Deposits by Business Line(3Q14 Average) Business Bank$28.8B52% Retail Bank$21.8B39% Wealth Management$4.2B8% Comerica Strengths Strong capital position,Weathered credit cycle relatively well CONSERVATIVE Complemented by Retail Bank and Wealth Management PRIMARILY A BUSINESS BANK Strong presence in Texas, California, & Michigan ATTRACTIVE FOOTPRINT Products & services of a large bank with the culture of a community bank NIMBLE SIZE$69B in Assets Founded 165 years ago LONG HISTORY Trusted Advisor approach RELATIONSHIP BANKING STRATEGY At 9/30/14 4 Diverse Footprint Drives Growth At 9/30/14 California33% Texas24% Michigan28% Other Markets15% Average Loans by Geography Deposits by Geography 2014 2004 Michigan Texas California Florida Arizona 71% 44% 14% 28% 13% 22% 2% 2% 375 Banking Centers 481 Banking Centers 4% California30% Texas19% Michigan38% Other Markets12% Finance & Other1% 3Q14$47.2B California29% Texas11% Michigan44% Other Markets16% 3Q04$40.6B California38% Texas10% Michigan42% Other Markets7% Finance & Other3% 3Q14$55.2B3Q04$39.7B
5 1Source: SNL Financial Loan and Deposit Growth Outpaces Peers Average Loan Growth1(3Q14 vs. 3Q13) 9.8% 9.0% 7.0% 6.6% 4.7% 4.2% 4.0% 3.5% 3.0% 1.8% 1.2% 0.7% HBA N BOK F CMA ST I KEY SNV FITB ZIO N BBT MTB RF FHN Peer Average: 4.4% Average Deposit Growth1(3Q14 vs. 3Q13) 6.9% 6.5% 6.4% 4.0% 4.0% 3.6% 2.4% 2.1% 2.1% 1.5% 0.3% -4.4 % MTB HBA N CMA ST I BOK F KEY FITB BB T RF ZIO N SNV FHN Peer Average: 2.6% 6 These results are preliminary and subject to change ● 14Q14 average balance through 11/30/14, compared to 3Q14 ●2Utilization of commercial commitments as a percentage of total commercial commitments at period-end (11/30/14) 44.1 45.1 46.7 47.2 47.2 4Q13 1Q14 2Q14 3Q14 4Q14thru 11/30 Average Loans1($ in billions) Average loan growth of ~5%, YTD 2014 (through 11/30) vs. FY13 Outlook for slight average loan growth in 4Q14 vs. 3Q14 remains unchanged 4Q14 Quarter-to-date1: • National Dealer seasonally higher • Mortgage Banker seasonally lower • Utilization2 stable at 48% from 9/30/14 Maintaining credit underwriting and pricing discipline Continued strong, broad-based average deposit growth Loan and Deposit Update 52.8 52.8 53.4 55.2 57.8 4Q13 1Q14 2Q14 3Q14 4Q14thru 11/30 October and November Trends Average Deposits1 ($ in billions)
7 EnergyLong History and Extensive Knowledge At 9/30/14 ● 1Source: Moody’s Analytics● 2Source: U.S. Energy Information Administration 626 870 1,201 1,4901,8041,5641,2271,617 2,5632,899 3,185 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD 1,000 1,500 2,000 2,500 115 140 165 190 215 240 265 U.S. Oil Production (MM bbl/mo.), Left AxisU.S. Natural Gas Production (Bcf/mo.), Right Axis Production Contributes to Recent Average Loan Growth Average Loans ($ in millions) 30+ years’ experience 7% of total loan portfolio• Contributed $437MM of $3.1B, or 14%, total year over year average loan growth Focus on middle market companies Deep relationships with significant ancillary noncredit products ~12-15% of Texas state GDP • Lower oil prices expected to moderate strong economic growth in Texas Natural Gas12% Oil42% Mixed16% Midstream13% Service17% Exploration & Production 70% Diverse Customer Base(Based on period-end loan outstandings) 1 2 8 EnergyWeathered Many Cycles At 9/30/14 ● 1Source: Moody’s Analytics ● 2Source: U.S. Energy Information Administration ● 3Criticized loans are consistent with regulatory defined Special Mention, Substandard, Doubtful and Loss loan classifications. Risk Management/ Credit Underwriting Guidelines Customer selection• Granular portfolio: >200 customers• Focus on larger middle market results in 90%+ shared national credits (SNCs) Excellent credit quality: • -0- Nonaccrual loans• $100MM, or 3%, criticized loans3 More than 95% Secured Semi-annual reserve valuations/ borrowing base re-determinations Average customer has ~50% of production hedged about 2 years Advance rates of up to 65% on proven reserves Review price deck at least quarterly Customers’ 3rd party engineering reports reviewed by CMA approved engineers Portfolio regularly stress tested 48 26 15 31 91 188 139 82 39 16 7 0 0 0 0 36 69 19 10 14 6 02004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD Strong Credit Quality Despite Oil & Gas Price Volatility 2 4 6 8 10 12 14 30 50 70 90 110 130 Total CMA Net Charge-offs (In basis points)Energy Net Charge-offs (In basis points) Henry Hub Natural Gas Price2 ($/million Btu)WTI Oil Spot1 ($/bbl)
9 Interest Rate SensitivityWell Positioned for Rising Rates At 9/30/14 ● 1Source: SNL Financial ● 2Source: SNL Financial. 3Q14 interest incurred on deposits as a percentage of average deposits. Loan Portfolio: Primarily Floating Rate Faster Loan Re-pricing/Maturity Date1 Fixed Rate~15% Libor-Based Prime-Based Floating Rate ~85% 0% 20% 40% 60% 80% 100% CMA FHN KE Y MTB RF FITB ST I HBA N SNV ZIO N BBT BOK F Less Than 3 Months Greater Than 3 Months Large Proportion of Noninterest-Bearing Deposits Interest-Bearing64% Noninterest-Bearing46% Lowest Cost of Deposits2(In basis points) 26 25 21 19 17 16 16 15 11 11 9 8 SNV BOK F FITB BB T HBA N KEY ST I FHN RF ZIO N MTB CMA 10 Interest Rate SensitivityAssumptions and Alternatives At 9/30/14 ● For methodology see the Company’s Form 10Q, as filed with the SEC. Estimates are based on simulation modeling analysis. The analysis does not capture possible regulatory impacts. ~115 ~190 ~195 ~220 227 ~250 ~335 Up 100bps Addl.20%Increasein Beta Addl. $3BDepositDecline Addl. $1BDepositDecline 3Q14StandardModel Addl.~3%LoanGrowth Up 300bps Sensitivity: Various AssumptionsEstimated Increase in Net Interest Income Over 12 monthsAdditional Scenarios are Relative to 3Q14 Standard Model($ in millions) 0.1 Interest Rates 200 bps gradual, non-parallel rise Loan Balances Modest increase Deposit Balances Modest decrease Deposit Pricing (Beta) Historical price movements with short-term rates Securities Portfolio Held at current levels Loan Spreads Held at current levels MBS Prepayments Third-party projections and historical experience Hedging (swaps) No additions modeled Standard Model Assumptions
11 Liquidity Coverage Ratio (LCR)Expect to be Compliant Within the Required Timeframe At 9/30/14 ● For a further discussion of the Basel III regulatory framework, see the Company’s Form 10-Q for the quarter ended 9/30/14, as filed with the SEC. ● 1Estimated. For illustrative purposes. The LCR is a regulatory ratio that is not a GAAP financial measure, and there is no comparable GAAP financial measure. Comerica estimates its LCR based on a preliminary analysis of the rule and it is subject to further assessment. There may be changes to the calculation in the future which could impact the current estimate. Funding Investment Interest Rate Sensitivity Earnings Floating Cash Neutral Floating Fixed Rate Securities Fixed Cash Fixed Fixed Rate Securities Neutral Potential Impact Dependent on Type of Funding and Investment 3Q14 Long-Term Balance Sheet Under LCR1 LCR 100% + Buffer Cash/ Securities21% Loans74% Other 5% Equity11% Deposits84% Debt 5% Assets Liabilities/ Equity Assets Liabilities/ Equity Cash/ Securities~25% Loans~70% Other ~5% Equity~10% Deposits~70% Debt ~20% LCR ~80% Key Initiatives Additional HQLA expected to be funded with wholesale debt (strong credit ratings) L/T target loan to deposit ratio 100-110% Continued focus on deposit generation Reviewing products and pricing Mindful of our asset sensitivity position 12 Deposit Performance Through the CycleReflects Relationship Banking Model At 9/30/14 ● 1Source: SNL Financial 19% 18% 17% 16% 15% 14% 13% 13% 12% 8% 8% 2% HBA N BOK F MTB BBT CMA KE Y FITB ST I ZIO N RF SNV FHN 99% 98% 98% 94% 94% 92% 88% 86% 83% 83% 82% 69% FHN SNV ST I HBA N FITB BB T MTB ZIO N KEY CMA R F BOK F Loan to Deposit Ratio1(3Q14 period-end) Industry Deposit Considerations Balances may grow with economy or decline as the Fed reduces liquidity in the system Potential mix shift as customers seek higher returns Pricing may be driven by competitive environment or continued discipline Noninterest-bearing Deposit Growth1(CAGR 3Q14 vs. 3Q09) Peer Average: 12% 31.7 29.9 28.5 30.4 31.6 36.6 36.5 41.0 45.9 48.4 50.739.0 38.3 34.6 34.5 34.2 38.3 38.7 43.4 49.1 51.2 53.5 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014YTD Total Core Deposits($ in billions) Financial Services Division
13 Card Services Helping to Drive Fee IncomeConvenient & Efficient Solutions For Customers 1LTM = Last 12 months ended 9/30/14 41 30 34 37 2011 2012 2013 2014 LTM +24% August 2014 launch of new partnership with Vantiv Enable businesses to accept card payments from their customers Strong commitment to innovation and customer service Advanced security products and reporting tools Robust pipeline Sales and activations exceeding expectations Key component of integrated payables Card used for:• Purchasing• Travel and entertainment• Online vendor payments• Fleet maintenance Commercial Card Fee Income($ in millions) Merchant ServicesCommercial Card 14 Growing Advisory Services with Trust AlliancesProviding Trust Services to Customers of Broker/Dealers At 9/30/14 ● 1LTM = Last 12 months ended 9/30/14 Since 1995 Agreement with broker/dealers to provide trust services to their clients 13 alliance partners Unique fee generating business Dedicated team with 14 offices in the US Advisory Services 243218 232 238 2011 2012 2013 2014 LTM Total Advisory Services Fee Income($ in millions) +9% 48.7 30.3 35.7 44.8 2011 2012 2013 2014 LTM Trust Alliance Fee Income(A Division of Advisory Services)($ in millions) +48% Professional Trust Alliance 11 Brokerage & Insurance Trust Services & Asset Management• Institutional & Personal• Professional Trust Alliance $143B in assets under management & administration
15 Continued Tight Expense ControlExpected to Partially Offset Regulatory and Compliance Headwinds At 9/30/14 ● 1Source: SNL Financial ● 2LTM = Last 12 months ended 9/30/14 11,444 10,816 9,073 8,913 $6.0 $7.8 $8.8 $11.2 2000 2005 2010 YTD 2014 Employees Avg. Loans + Deposits/Employee Driving Efficiency While Growing Loans & Deposits($ in millions) 132 134 138 107 1,771 1,757 1,722 1,680 2011 2012 2013 2014 LTM Restructuring, Pension & Litigation-related Expenses History of Expense Management($ in millions) 2 5,05 2 5,28 4 5,38 5 5,69 0 5,72 1 5,81 2 6,23 4 6,37 1 6,45 7 7,25 2 7,45 1 7,72 9 RF ZIO N HBA N BBT FHN SNV BOK F MTB KEY FITB ST I CMA Assets Per Employee1($ in 000’s) 16 Demonstrated Expense ControlConsistent Focus on Efficiency and Sustainability 5,722 5,639 5,515 5,364 4,935 4,849 625 610 574 5,989 5,545 5,423 2008 2009 2010 2011 2012 2013 Legacy Sterling 15,450 12,819 156,123 153,452 145,771 149,005 148,266 144,783 2008 2009 2010 2011 2012 2013 Legacy Sterling Energy Use(MWh) Office Paper Consumption(Tons) Real Estate Square Footage(In thousands) 1,593 1,294 1,155 1,146 1,178 1,102 2008 2009 2010 2011 2012 2013 -7% -31% -5% Lean Six SigmaIncreasing Efficiency to Deliver Better Customer Experience 40-50% reduction in approval time for customers Loan processing times reduced by ~60% Reduced time to loan closing by ~40%
Closed Sterling Acquisition in July 2011 17 HeadwindsDeclining Accretion & Increasing Pension Expense At 9/30/14 ● 2014 & 2015 numbers are estimated. Outlook as of 12/5/14 ● 2See the Company’s Form 10-K, as filed with the SEC, for additional information. 47 75 86 39 23 2011 2012 2013 2014 2015 Impact of $300MM Contribution Purchase Accounting AccretionAbout $20MM remaining to be realized over the next several years($in millions) Pension Expense($ in millions) 5.51% 4.99% 4.20% 5.17% Discount Rate 53 71 49 ~30 ~4-6 2011 2012 2013 2014 2015 $8.3MM of expense is added for every 25 bps decrease in the discount rate2 ? Increasing Technology InvestmentRegulatory, Industry Compliance & Cyber Security 2015 Focus:Regulatory Compliance ██ Regulatory and industry compliance ██ Revenue enhancements or process improvements ██ Business continuity ExpectedLong-Term 1Excludes maintenance costs associated with projects; includes hardware/software depreciation and labor costs directly expensed associated with technology-related projects. Estimated, Outlook as of 12/5/14 ● 2Based on Technology spend, which includes hardware/software purchases and labor costs expensed and capitalized associated with technology-related projects. 82 71 66 ~95 2012 2013 2014 2015Estimated Annual Technology Project Expense1($ in millions) Several Current Projects Card industry compliance Data & cyber security Stress Test automation LCR automation Enhanced compliance program for securities trading Consumer & corporate Web banking Evolving Technology Demands2 18 ~40% ~10% ~50% ~75% ~15% ~10%
19 Active Capital Management At 9/30/14 ● 1Shares repurchased under share repurchase program ● 2See Supplemental Financial Data slides for reconciliation of non-GAAP financial measures ● 3Outlook as of 12/5/14 ● 4Estimated ratios based on the standardized approach in the final rule, as fully phased-in, and excluding most elements of accumulated other comprehensive income (AOCI). Well Above the Minimum Regulatory Standard2,4 10.3% 10.3% Basel III Tier 1 Common Basel III Tier 1 Regulatory Standard: 8.5%Regulatory Standard: 7.0% 2014 Capital Plan target3: Up to $236MM share repurchases over four quarters (2Q14 through 1Q15)• $59MM or 1.2MM shares repurchased in 2Q14• $59MM or 1.2MM shares repurchased in 3Q14• $59MM or 1.3MM shares repurchased in 4Q14 Increased quarterly dividend 5% to $0.20 per share in 2Q14 183.7 182.3 181.7 181.0 180.2 $34.37 $35.64 $36.50 $37.12 $37.65 3Q13 4Q13 1Q14 2Q14 3Q14 Tangible Book Value Per Share Common Shares Outstanding (in MM) 19% 21% 23% 24% 28% 58% 53% 43%47% 79% 76% 67% 2011 2012 2013 YTD 2014 Dividends Share Repurchases Shareholder Payout Ratio 1 2 20 Well Positioned for the Future As of 9/30/14 ● 1Analysis based on non-parallel gradual increase in interest rates over 12 months; For methodology see the Company’s Form 10Q, as filed with the SEC ● 2See Supplemental Financial Data slides for reconciliation of non-GAAP financial measures. GROWING LOANS & FEE INCOME CONTROLLING EXPENSES MAINTAINING ASSET QUALITY MANAGING CAPITAL POSITIONED FOR RISING RATES • Positioned in faster growing markets and industries• Focus on cross-sell to drive fee income • Continued tight expense control partially offsetting headwinds • Strong Capital base; Estimated Basel III Tier 1 common capital: 10.3%2• Continue share buyback; Increased dividend in 2Q14 • Strong credit culture leads to solid credit metrics• Weathered cycle well relative to peers • 200 bps increase in rates expected to result in >10% increase in net interest income1
Appendix 22 Diverse Footprint Drives Growth $ in billions ● Period-end balances 10.0 10.1 11.4 2012 2013 9/30/14 Loan Balances 9.8 10.8 10.8 2012 2013 9/30/14 Deposit Balances 13.9 14.9 15.6 2012 2013 9/30/14 Loan Balances 15.2 14.6 17.6 2012 2013 9/30/14 Deposit Balances 13.6 13.5 13.2 2012 2013 9/30/14 Loans Balances 20.1 20.5 22.1 2012 2013 9/30/14 Deposit Balances +14% +15%+10% +12% +10% -3%
23 Loans by Business and Market Average $ in billions Middle Market: Serving companies with revenues generally between $20-$500MM Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM By Line of Business 3Q14 2Q14 3Q13 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $13.63.35.50.62.60.9 $13.73.25.70.62.50.9 $13.22.94.90.62.00.8 Total Middle Market $26.5 $26.6 $24.4 Corporate BankingUS BankingInternational 2.81.8 2.81.7 2.71.7 Mortgage Banker Finance 1.6 1.3 1.6 Commercial Real Estate 4.2 4.1 3.8 BUSINESS BANK $36.9 $36.5 $34.2 Small Business 3.7 3.6 3.6 Retail Banking 1.8 1.8 1.7 RETAIL BANK $5.5 $5.4 $5.3 Private Banking 4.8 4.8 4.6 WEALTH MANAGEMENT $4.8 $4.8 $4.6 TOTAL $47.2 $46.7 $44.1 By Market 3Q14 2Q14 3Q13 Michigan $13.3 $13.5 $13.3 California 15.5 15.4 14.0 Texas 11.1 11.0 9.9 Other Markets 7.3 6.8 6.9 TOTAL $47.2 $46.7 $44.1 24 Deposits by Business and Market Average $ in billions Middle Market: Serving companies with revenues generally between $20-$500MM Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM By Line of Business 3Q14 2Q14 3Q13 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $15.30.50.20.15.90.1 $14.60.50.20.15.60.1 $14.00.50.20.15.10.2 Total Middle Market $22.1 $21.1 $20.1 Corporate BankingUS BankingInternational 2.71.8 2.61.7 2.41.8 Mortgage Banker Finance 0.5 0.5 0.6 Commercial Real Estate 1.7 1.5 1.4 BUSINESS BANK $28.8 $27.4 $26.3 Small Business 2.8 2.7 2.7 Retail Banking 19.0 19.0 18.6 RETAIL BANK $21.8 $21.7 $21.3 Private Banking 4.2 3.8 3.8 WEALTH MANAGEMENT $4.2 $3.8 $3.8 Finance/ Other 0.4 0.5 0.5 TOTAL $55.2 $53.4 $51.9 By Market 3Q14 2Q14 3Q13 Michigan $21.2 $20.7 $20.5 California 16.4 15.4 14.6 Texas 10.6 10.7 10.3 Other Markets 6.6 6.1 6.0 Finance/ Other 0.4 0.5 0.5 TOTAL $55.2 $53.4 $51.9
25 Mortgage Banker Finance Average Deposits($ in millions) Average Loans($ in millions) 40+ years’ experience with reputation for consistent, reliable approach Provide short-term warehouse financing: bridge from origination of residential mortgage until sale into end market Extensive backroom provides collateral monitoring and customer service Focus on full banking relationships 360 481 52 3 551 6 37 513 372 399 4 41 454 49 7 62 5 645 665 643 566 565 516 516 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 425 707 943 1 ,101 566 61 4 923 1,53 5 1,48 3 1,50 7 1,99 6 2,09 4 1,73 7 1,81 5 1,60 5 1,10 9 886 1,31 9 1,59 5 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 At 9/30/14 26 National Dealer Services At 9/30/14 ● 1Other includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) Toyota/Lexus16% Honda/Acura 13% Ford 9% GM 10% Chrysler 9% Mercedes 3%Nissan/ Infiniti 7% Other European 11% Other Asian 12% Other110% Franchise Distribution(Based on period-end loan outstandings) Geographic DispersionCalifornia 63% Texas 9%Michigan 17% Other 11% Average Loans($ in billions) 65+ years of Floor Plan lending, with 20+ years on a national basis Top tier strategy Focus on “Mega Dealer” (five or more dealerships in group) Excellent credit quality Robust monitoring of company inventory and performance 1.9 1.7 1.3 1.5 1.9 2.3 2.3 2.5 2.8 3.1 2.9 3.2 3.2 3.5 3.2 3.8 3.6 3.1 3.4 3.8 4.3 4.3 4.6 4.9 5.1 4.9 5.3 5.3 5.7 5.5 1Q112Q113Q114Q111Q122Q123Q124Q121Q132Q133Q134Q131Q142Q143Q14 Floor Plan
27 Technology and Life Sciences At 9/30/14 20+ year history Products and services tailored to meet the needs of emerging companies throughout their lifecycle Strong relationships with top-tier investors National business headquartered in Palo Alto, CA, operating from 13 offices in the U.S. and Toronto Top notch relationship managers with extensive industry expertise Average Loans($ in billions) 1.1 1.1 1.1 1.2 1.2 1.2 1 .3 1.5 1.6 1. 7 1.8 1.9 2. 0 1.9 2.0 2. 1 2.3 2. 5 2.6 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 3.3 3.4 3.3 3.5 3. 7 4.1 4.2 4.4 4 .7 5.1 5.2 5.2 5.0 5.0 5.1 5.2 5 .7 5.6 5.9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 Average Deposits($ in billions) 28 Commercial Real Estate Line of Business At 9/30/14 ● 1Includes CRE line of business loans not secured by real estate 5.7 5.4 5.1 4.8 4.4 4.0 4.4 4.6 4.4 4.3 3.9 3.7 3.7 3.8 3.8 3.8 4 .0 4.1 4.2 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 Commercial MortgagesReal Estate ConstructionCommercial & Other Average Loans($ in billions) 4.9 5.2 5.4 5.6 6.0 3Q13 4Q13 1Q14 2Q14 3Q14 Commitments($ in billions; Based on period-end) 160+ years experience with focus on well-established developers, primarily in our footprint Provide construction and mini-perm mortgage financing Real Estate Construction average loans up for the past 8 quarters +23% 1
29 Shared National Credit (SNC) Relationships At 9/30/14 ● SNCs are not a line of business. The balances shown above are included in the line of business balances shown on “Loans by Business and Market” ● SNCs are facilities greater than $20 million shared by three or more federally supervised financial institutions which are reviewed by regulatory authorities at the agent bank level. Period-end Loans of $10.4B Commercial Real Estate$0.6B 6% Corporate $2.8B 26% General$2.4B 23%National Dealer $0.4B 4% Energy$3.0B 29% Entertainment$0.3B 3% Tech. & Life Sciences$0.3B 3% Environmental Services $0.4B 4% Mortgage Banker$0.2B 2% = Total Middle Market (66%) SNC relationships included in business line balances Approximately 870 borrowers Strategy: Pursue full relationships with ancillary business Comerica is agent for approx. 18% Adhere to same credit underwriting standards as rest of loan book Credit quality mirrors total portfolio 30 Continued Strong Credit QualityNet Charge-offs of 3 bps At 9/30/14 ● 1Source: SNL Financial ● 2Criticized loans are consistent with regulatory defined Special Mention, Substandard, Doubtful and Loss loan classifications. 2,461 2,260 2,139 2,188 2,094 1.08 0.84 0.76 0.75 0.75 3Q13 4Q13 1Q14 2Q14 3Q14 NPAs as a Percentage of Total Loans + ORE Net Loan Charge-offs($ in millions) Criticized Loans2($ in millions) Allowance for Loan Losses($ in millions) 604 598 594 591 592 1.3 1.6 1.8 1.7 1.7 3Q13 4Q13 1Q14 2Q14 3Q14 NPL Coverage 19 13 12 9 3 18 12 10 8 3 3Q13 4Q13 1Q14 2Q14 3Q14 NCO Ratio (In basis points) -1 3 11 17 22 24 26 27 38 39 48 50 BOK F CMA ZIO N MTB KEY SNV HBA N FHN ST I RF BBT FITB 3Q14 Net Charge-Off Ratio vs. Peers1(In basis points)
31 Robust Average Deposit Growth of $1.8B or 3% Increases in Virtually All Business Lines 1Interest cost on interest-bearing deposits ● 23Q14 compared to 2Q14 ● 3At 9/30/14 ● 4Source: SNL Financial Average Balances Period-end Strong Deposit Base($ in billions) 51.9 52.8 52.8 53.4 55.2 54.2 57.6 0.18 0.17 0.15 0.15 0.15 3Q13 4Q13 1Q14 2Q14 3Q14 2Q14 3Q14 Deposit Rates1 Noninterest-bearing deposits increased $1.3B to $25.3B2, driven by+ $759MM General Middle Market+ $188MM Commercial Real Estate+ $110MM Small Business+ $106MM Retail Banking Loan to Deposit Ratio3 of 83% 3.3% 1.8% 1.8% 1.6% 1.5% 1.1% 1.1% 0.8% 0.4% -0.2 % -1.3 % -1.5 % CMA ZIO N KEY MTB HBA N STI RF BBT SNV FITB BOK F FHN Peer Average: 0.6% Average Deposit Growth4(3Q14 vs. 2Q14) 32 Government Card ProgramsGenerates Valuable Retail Deposits 720 948 1,221 1,433 2011 2012 2013 2014 YTD US Treasury ProgramState Card Programs At 9/30/14 ● 1Source: the Nilson Report July 2014, based on 2013 data ● 2Based on a 2014 survey conducted by KRC Research ● 3Source: U.S. Department of the Treasury ● 4Source: Social Security Administration Growing Average Noninterest-Bearing Deposits($ in millions) #1 prepaid card issuer in US1 State/ Local government benefit programs:• 32 distinct programs US Treasury DirectExpress Program:• Exclusive provider of prepaid debit cards since 2008; contract extended to January 2020• Over 5 million cards registered• ~100k new accounts per month• 95% of Direct Express card holders report they are satisfied2• Eliminating monthly benefit checks, resulting in significant taxpayer savings3 # of Social Security Beneficiaries4(in millions) 25 30 35 40 45 50 55 60 1970 1975 1980 1985 1990 1995 2000 2005 2010 Key Facts
33 Securities Portfolio StableContinue to Invest Prepayments in GNMA At 9/30/14 ● 1Estimated as of 9/30/14 MBS Portfolio: Duration of 4.0 years1 • Duration extends to 4.7 years under a 200 bps instantaneous rate increase1 Net unrealized pre-tax loss of $22MM Net unamortized premium of $56MM Yields declined 6 bps due to a decrease of $1MM from retrospective adjustment to premium amortization in 2Q14 GNMA approximately 20% of MBS portfolio 9.0 9.0 8.9 9.0 9.0 9.1 9.1 9.4 9.4 9.3 9.4 9.4 9.5 9.5 2.41 2.46 2.42 2.35 2.29 3Q13 4Q13 1Q14 2Q14 3Q14 2Q14 3Q14 MBS Other MBS Yield Securities Portfolio($ in billions) Average Balances Period-end 34 Net Interest Income StableDecline in Accretion Partially Offset by Loan Growth 13Q14 compared to 2Q14 ● 2Lower securities yields due to the $1MM retrospective adjustment to premium amortization in 2Q14 Net Interest Income and Rate NIM1: $416MM 2Q14 2.78% -7+4+4-2-2-1 Loan Impacts:Loan accretionLoan growth1 additional day in 3Q14Lease residual value adj.Loan portfolio dynamicsInterest on nonaccrual loans -0.05-----0.01-0.01-- +2 Interest expense on debt +0.01 -1 Lower securities yields2 -0.01 +1 Excess reserves at the Fed -0.04 $414MM 3Q14 2.67% 8 23 12 10 3412 430 410 416 414 2.79 2.86 2.77 2.78 2.67 3Q13 4Q13 1Q14 2Q14 3Q14 Accretion NIM Net Interest Income($ in millions)
35 Funding and Maturity Profile At 9/30/14 ● 1Face value at maturity Equity$7.4B 11% Interest-Bearing Deposits$30.1B 45% Noninterest-Bearing Deposits$27.5B 40% Wholesale Debt $2.9B 4% Funding ProfileAt September 30, 2014 $9.1B liquid MBS portfolio Loan to deposit ratio of 83% Access to wholesale debt markets Federal Home Loan Bank of Dallas• $-0- outstanding • $6B borrowing capacity Fed funds/ Repo markets Institutional & Retail Brokered CDs Debt Profile by Maturity1($ in millions) 600 650 500 350 400 2015 2016 2017 2019 2020+ Subordinated Notes Senior Notes Multiple Funding Sources 36 Factors Expected to Drive Long-Term Efficiency Ratio Goal Goal as of 12/5/14 2013 Long-Term Goal Efficiency Ratio:67% Efficiency Ratio:<60% Expense Growth of 0 - 2% Fee Income Growth of 2 - 4% Loan Growth of 3 - 5% • Increase cross-sell penetration • Collaboration between businesses Focused growth:• Target markets • Allocation of resources to faster growing businesses • Relationship driven • Normalized rates not necessary to reach long-term goal • Continued focus on operating leverage ≈1% ≈2% Normal (≈3.5%) Fed Funds
37 Holding Company Debt Rating As of 12/1/14 ● Source: SNL Financial ● Debt Ratings are not a recommendation to buy, sell, or hold securities Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch BB&T A- A2 A+ BOK Financial A- A2 A Comerica A- A3 A M&T Bank A- A3 A- KeyCorp BBB+ Baa1 A- Fifth Third BBB+ Baa1 A SunTrust BBB+ Baa1 BBB+ Huntington BBB Baa1 A- Regions Financial BBB Ba1 BBB Zions Bancorporation BBB- Ba1 BBB- First Horizon National Corp BB+ Baa3 BBB- Synovus Financial Corp BB- Ba3 BB+ Wells Fargo & Company A+ A2 AA- U.S. Bancorp A+ A1 AA- JP Morgan A A3 A+ PNC Financial Services Group A- A3 A+ Bank of America A- Baa2 A Pee r Ba nks Larg e Ba nks Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ in millions) 38 The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removed the effect of intangible assets from common shareholders equity per share of common stock.The Corporation believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.1Tier 1 Capital and risk-weighted assets as defined and calculated in accordance with regulation. 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 Tier 1 and Tier 1 common capital1Risk-weighted assets1Tier 1 and Tier 1 common capital ratio 7,10567,10610.59% 7,02766,91110.50% 6,96265,78810.58% 6,89564,82510.64% 6,86264,02710.72% Common shareholders’ equityLess: GoodwillLess: Other intangible assets $7,43363515 $7,36963515 $7,28363516 $7,15063517 $6,96663518Tangible common equity $6,783 $6,719 $6,632 $6,498 $6,313Total assetsLess: GoodwillLess: Other intangible assets $68,88763515 $65,32563515 $65,68163516 $65,22463517 $64,66763518Tangible assets $68,237 $64,675 $65,030 $64,572 $64,014Common equity ratio 10.79% 11.28% 11.09% 10.97% 10.78%Tangible common equity ratio 9.94 10.39 10.20 10.07 9.87 Common shareholders’ equity $7,433 $7,369 $7,283 $7,150 $6,966Tangible common equity $6,783 $6,719 $6,632 $6,498 $6,313Shares of common stock outstanding (in millions) 180 181 182 182 184 Common shareholders’ equity per share of common stock $41.26 $40.72 $40.09 $39.22 $37.93Tangible common equity per share of common stock 37.65 37.12 36.50 35.64 34.37
Supplemental Financial DataTier 1 Common Equity under Basel III ($ in millions) 39 The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The Basel III Tier 1 common capital ratio further adjusts Tier 1 common capital and risk-weighted assets to account for the final rule approved by U.S. banking regulators in July 2013 for the U.S. adoption of the Basel III regulatory capital framework. The final Basel III capital rules are effective January 1, 2015 for banking organizations subject to the standardized approach. The Corporation believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.1Tier 1 Capital and risk-weighted assets as defined in accordance with regulation.2Estimated ratios based on the standardized approach in the final rule, as fully phased-in, and excluding most elements of accumulated other comprehensive income (AOCI). Basel III Tier 1 Common Capital Ratio 9/30/14 6/30/14 3/31/14 12/31/13 9/30/13 Tier 1 common capitalBasel III adjustments2 $7,105(1) $7,027(1) $6,962(2) $6,895(6) $6,862(4) Basel III Tier 1 common capital2 $7,104 $7,026 $6,960 $6,889 $6,858 Risk-weighted assets1Basel III adjustments2 $67,1061,552 $66,9111,594 $65,7881,590 $64,8251,754 $64,0271,726Basel III risk-weighted assets2 $68,658 $68,505 $67,378 $66,579 $65,753 Tier 1 common capital ratioBasel III Tier 1 common capital ratio2 10.6%10.3% 10.5%10.3% 10.6%10.3% 10.6%10.3% 10.7%10.4%