Delaware ------------ | 1-10706 ---------- | 38-1998421 --------------- |
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
ITEMS 2.02 and 7.01 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION AND REGULATION FD DISCLOSURE |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibit No. | Description |
99.1 | Press Release dated February 16, 2016 |
December 31, 2015 | |||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||
(dollar amounts in millions, except per share data) | As Reported | As Adjusted | As Reported | As Adjusted | |||||||||||||||||||
Provision for credit losses | $ | 35 | $ | 60 | $ | 122 | $ | 147 | |||||||||||||||
Noninterest expenses | 489 | 486 | 1,845 | 1,842 | |||||||||||||||||||
Salaries and benefits expense | 265 | 262 | 1,012 | 1,009 | |||||||||||||||||||
Income before income taxes | 179 | 157 | 772 | 750 | |||||||||||||||||||
Provision for income taxes | 49 | 41 | 237 | 229 | |||||||||||||||||||
Net income | 130 | 116 | 535 | 521 | |||||||||||||||||||
Net income attributable to common shares | 129 | 115 | 529 | 515 | |||||||||||||||||||
Diluted income per common share | 0.71 | 0.64 | 2.92 | 2.84 | |||||||||||||||||||
Total shareholders' equity at year end | 7,574 | 7,560 | |||||||||||||||||||||
Basel III common equity Tier 1 capital ratio | 10.53 | % | (a) | 10.54 | % | ||||||||||||||||||
Tangible common equity ratio (b) | 9.72 | % | 9.70 | % |
(a) | Estimated as of January 19,2016. Prior to the adjustments, the final Basel III common equity Tier 1 ratio would have been 10.56%. |
(b) | See Reconciliation of Non-GAAP Financial Measures. |
Media Contact: | Investor Contacts: |
Wayne J. Mielke | Darlene P. Persons |
(214) 462-4463 | (214) 462-6831 |
Chelsea R. Smith | |
(214) 462-6834 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||||
(in millions, except per share data) | 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||
Diluted net income | $ | 0.64 | $ | 0.74 | $ | 0.80 | $ | 2.84 | $ | 3.16 | ||||||
Cash dividends declared | 0.21 | 0.21 | 0.20 | 0.83 | 0.79 | |||||||||||
Average diluted shares (in thousands) | 179,197 | 180,714 | 183,728 | 181,104 | 185,474 | |||||||||||
KEY RATIOS | ||||||||||||||||
Return on average common shareholders' equity | 6.08 | % | 7.19 | % | 7.96 | % | 6.91 | % | 8.05 | % | ||||||
Return on average assets | 0.64 | 0.76 | 0.86 | 0.74 | 0.89 | |||||||||||
Common equity tier 1 risk-based capital ratio (a) | 10.54 | 10.51 | n/a | |||||||||||||
Tier 1 common risk-based capital ratio (b) | n/a | n/a | 10.50 | |||||||||||||
Tier 1 risk-based capital ratio (a) | 10.54 | 10.51 | 10.50 | |||||||||||||
Total risk-based capital ratio (a) | 12.69 | 12.82 | 12.51 | |||||||||||||
Leverage ratio (a) | 10.22 | 10.28 | 10.35 | |||||||||||||
Tangible common equity ratio (b) | 9.70 | 9.91 | 9.85 | |||||||||||||
AVERAGE BALANCES | ||||||||||||||||
Commercial loans | 31,219 | 31,900 | 30,391 | 31,501 | 29,715 | |||||||||||
Real estate construction loans | 1,961 | 1,833 | 1,920 | 1,884 | 1,909 | |||||||||||
Commercial mortgage loans | 8,842 | 8,691 | 8,609 | 8,697 | 8,706 | |||||||||||
Lease financing | 750 | 788 | 818 | 783 | 834 | |||||||||||
International loans | 1,402 | 1,401 | 1,455 | 1,441 | 1,376 | |||||||||||
Residential mortgage loans | 1,896 | 1,882 | 1,821 | 1,878 | 1,778 | |||||||||||
Consumer loans | 2,478 | 2,477 | 2,347 | 2,444 | 2,270 | |||||||||||
Total loans | 48,548 | 48,972 | 47,361 | 48,628 | 46,588 | |||||||||||
Earning assets | 66,818 | 66,191 | 64,453 | 65,129 | 61,560 | |||||||||||
Total assets | 71,907 | 71,333 | 69,307 | 70,247 | 66,336 | |||||||||||
Noninterest-bearing deposits | 29,627 | 28,623 | 27,504 | 28,087 | 25,019 | |||||||||||
Interest-bearing deposits | 30,109 | 30,517 | 30,256 | 30,239 | 29,765 | |||||||||||
Total deposits | 59,736 | 59,140 | 57,760 | 58,326 | 54,784 | |||||||||||
Common shareholders' equity | 7,613 | 7,559 | 7,518 | 7,534 | 7,373 | |||||||||||
NET INTEREST INCOME (fully taxable equivalent basis) | ||||||||||||||||
Net interest income | $ | 434 | $ | 423 | $ | 416 | $ | 1,693 | $ | 1,659 | ||||||
Net interest margin | 2.58 | % | 2.54 | % | 2.57 | % | 2.60 | % | 2.70 | % | ||||||
CREDIT QUALITY | ||||||||||||||||
Total nonperforming assets | $ | 391 | $ | 381 | $ | 300 | ||||||||||
Loans past due 90 days or more and still accruing | 17 | 5 | 5 | |||||||||||||
Net loan charge-offs | 51 | 23 | 1 | $ | 100 | $ | 25 | |||||||||
Allowance for loan losses | 634 | 622 | 594 | |||||||||||||
Allowance for credit losses on lending-related commitments | 45 | 48 | 41 | |||||||||||||
Total allowance for credit losses | 679 | 670 | 635 | |||||||||||||
Allowance for loan losses as a percentage of total loans | 1.29 | % | 1.27 | % | 1.22 | % | ||||||||||
Net loan charge-offs as a percentage of average total loans | 0.42 | 0.19 | 0.01 | 0.21 | % | 0.05 | % | |||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.80 | 0.78 | 0.62 | |||||||||||||
Allowance for loan losses as a percentage of total nonperforming loans | 167 | 169 | 205 |
(a) | Basel III rules became effective on January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules. |
(b) | See Reconciliation of Non-GAAP Financial Measures. |
CONSOLIDATED BALANCE SHEETS | |||||||||
Comerica Incorporated and Subsidiaries | |||||||||
December 31, | September 30, | December 31, | |||||||
(in millions, except share data) | 2015 | 2015 | 2014 | ||||||
(unaudited) | (unaudited) | ||||||||
ASSETS | |||||||||
Cash and due from banks | $ | 1,157 | $ | 1,101 | $ | 1,026 | |||
Interest-bearing deposits with banks | 4,990 | 6,099 | 5,045 | ||||||
Other short-term investments | 113 | 107 | 99 | ||||||
Investment securities available-for-sale | 10,519 | 8,749 | 8,116 | ||||||
Investment securities held-to-maturity | 1,981 | 1,863 | 1,935 | ||||||
Commercial loans | 31,659 | 31,777 | 31,520 | ||||||
Real estate construction loans | 2,001 | 1,874 | 1,955 | ||||||
Commercial mortgage loans | 8,977 | 8,787 | 8,604 | ||||||
Lease financing | 724 | 751 | 805 | ||||||
International loans | 1,368 | 1,382 | 1,496 | ||||||
Residential mortgage loans | 1,870 | 1,880 | 1,831 | ||||||
Consumer loans | 2,485 | 2,491 | 2,382 | ||||||
Total loans | 49,084 | 48,942 | 48,593 | ||||||
Less allowance for loan losses | (634 | ) | (622 | ) | (594 | ) | |||
Net loans | 48,450 | 48,320 | 47,999 | ||||||
Premises and equipment | 550 | 541 | 532 | ||||||
Accrued income and other assets | 4,117 | 4,232 | 4,434 | ||||||
Total assets | $ | 71,877 | $ | 71,012 | $ | 69,186 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Noninterest-bearing deposits | $ | 30,839 | $ | 28,697 | $ | 27,224 | |||
Money market and interest-bearing checking deposits | 23,532 | 23,948 | 23,954 | ||||||
Savings deposits | 1,898 | 1,853 | 1,752 | ||||||
Customer certificates of deposit | 3,552 | 4,126 | 4,421 | ||||||
Foreign office time deposits | 32 | 144 | 135 | ||||||
Total interest-bearing deposits | 29,014 | 30,071 | 30,262 | ||||||
Total deposits | 59,853 | 58,768 | 57,486 | ||||||
Short-term borrowings | 23 | 109 | 116 | ||||||
Accrued expenses and other liabilities | 1,383 | 1,413 | 1,507 | ||||||
Medium- and long-term debt | 3,058 | 3,100 | 2,675 | ||||||
Total liabilities | 64,317 | 63,390 | 61,784 | ||||||
Common stock - $5 par value: | |||||||||
Authorized - 325,000,000 shares | |||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||
Capital surplus | 2,173 | 2,165 | 2,188 | ||||||
Accumulated other comprehensive loss | (429 | ) | (345 | ) | (412 | ) | |||
Retained earnings | 7,084 | 7,007 | 6,744 | ||||||
Less cost of common stock in treasury - 52,457,113 shares at 12/31/15; 51,010,418 shares at 9/30/15 and 49,146,225 shares at 12/31/14 | (2,409 | ) | (2,346 | ) | (2,259 | ) | |||
Total shareholders' equity | 7,560 | 7,622 | 7,402 | ||||||
Total liabilities and shareholders' equity | $ | 71,877 | $ | 71,012 | $ | 69,186 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||
Three Months Ended | Years Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
(in millions, except per share data) | 2015 | 2014 | 2015 | 2014 | |||||||||
INTEREST INCOME | |||||||||||||
Interest and fees on loans | $ | 395 | $ | 383 | $ | 1,551 | $ | 1,525 | |||||
Interest on investment securities | 56 | 51 | 216 | 211 | |||||||||
Interest on short-term investments | 6 | 4 | 17 | 14 | |||||||||
Total interest income | 457 | 438 | 1,784 | 1,750 | |||||||||
INTEREST EXPENSE | |||||||||||||
Interest on deposits | 10 | 12 | 43 | 45 | |||||||||
Interest on medium- and long-term debt | 14 | 11 | 52 | 50 | |||||||||
Total interest expense | 24 | 23 | 95 | 95 | |||||||||
Net interest income | 433 | 415 | 1,689 | 1,655 | |||||||||
Provision for credit losses | 60 | 2 | 147 | 27 | |||||||||
Net interest income after provision for credit losses | 373 | 413 | 1,542 | 1,628 | |||||||||
NONINTEREST INCOME | |||||||||||||
Card fees | 77 | 24 | 290 | 92 | |||||||||
Service charges on deposit accounts | 55 | 53 | 223 | 215 | |||||||||
Fiduciary income | 45 | 47 | 187 | 180 | |||||||||
Commercial lending fees | 30 | 29 | 99 | 98 | |||||||||
Letter of credit fees | 14 | 14 | 53 | 57 | |||||||||
Bank-owned life insurance | 11 | 8 | 40 | 39 | |||||||||
Foreign exchange income | 11 | 10 | 40 | 40 | |||||||||
Brokerage fees | 4 | 4 | 17 | 17 | |||||||||
Net securities losses | — | — | (2 | ) | — | ||||||||
Other noninterest income | 23 | 36 | 103 | 130 | |||||||||
Total noninterest income | 270 | 225 | 1,050 | 868 | |||||||||
NONINTEREST EXPENSES | |||||||||||||
Salaries and benefits expense | 262 | 245 | 1,009 | 980 | |||||||||
Outside processing fee expense | 83 | 33 | 332 | 122 | |||||||||
Net occupancy expense | 41 | 46 | 159 | 171 | |||||||||
Equipment expense | 14 | 14 | 53 | 57 | |||||||||
Software expense | 26 | 23 | 99 | 95 | |||||||||
FDIC insurance expense | 10 | 8 | 37 | 33 | |||||||||
Advertising expense | 7 | 7 | 24 | 23 | |||||||||
Litigation-related expense | — | — | (32 | ) | 4 | ||||||||
Gain on debt redemption | — | — | — | (32 | ) | ||||||||
Other noninterest expenses | 43 | 43 | 161 | 173 | |||||||||
Total noninterest expenses | 486 | 419 | 1,842 | 1,626 | |||||||||
Income before income taxes | 157 | 219 | 750 | 870 | |||||||||
Provision for income taxes | 41 | 70 | 229 | 277 | |||||||||
NET INCOME | 116 | 149 | 521 | 593 | |||||||||
Less income allocated to participating securities | 1 | 1 | 6 | 7 | |||||||||
Net income attributable to common shares | $ | 115 | $ | 148 | $ | 515 | $ | 586 | |||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.65 | $ | 0.83 | $ | 2.93 | $ | 3.28 | |||||
Diluted | 0.64 | 0.80 | 2.84 | 3.16 | |||||||||
Comprehensive income | 31 | 54 | 504 | 572 | |||||||||
Cash dividends declared on common stock | 37 | 36 | 148 | 143 | |||||||||
Cash dividends declared per common share | 0.21 | 0.20 | 0.83 | 0.79 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Fourth Quarter 2015 Compared To: | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Third Quarter 2015 | Fourth Quarter 2014 | |||||||||||||||||||||
(in millions, except per share data) | 2015 | 2015 | 2015 | 2015 | 2014 | Amount | Percent | Amount | Percent | ||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||
Interest and fees on loans | $ | 395 | $ | 390 | $ | 388 | $ | 378 | $ | 383 | $ | 5 | 1 | % | $ | 12 | 3 | % | |||||||||
Interest on investment securities | 56 | 54 | 53 | 53 | 51 | 2 | 6 | 5 | 12 | ||||||||||||||||||
Interest on short-term investments | 6 | 4 | 3 | 4 | 4 | 2 | 19 | 2 | 8 | ||||||||||||||||||
Total interest income | 457 | 448 | 444 | 435 | 438 | 9 | 2 | 19 | 4 | ||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||
Interest on deposits | 10 | 11 | 11 | 11 | 12 | (1 | ) | (3 | ) | (2 | ) | (7 | ) | ||||||||||||||
Interest on medium- and long-term debt | 14 | 15 | 12 | 11 | 11 | (1 | ) | (6 | ) | 3 | 21 | ||||||||||||||||
Total interest expense | 24 | 26 | 23 | 22 | 23 | (2 | ) | (4 | ) | 1 | 7 | ||||||||||||||||
Net interest income | 433 | 422 | 421 | 413 | 415 | $ | 11 | 3 | $ | 18 | 4 | ||||||||||||||||
Provision for credit losses | 60 | 26 | 47 | 14 | 2 | 34 | N/M | 58 | N/M | ||||||||||||||||||
Net interest income after provision for credit losses | 373 | 396 | 374 | 399 | 413 | (23 | ) | (6 | ) | (40 | ) | (10 | ) | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||
Card fees | 77 | 74 | 72 | 67 | 24 | 3 | 3 | 53 | N/M | ||||||||||||||||||
Service charges on deposit accounts | 55 | 57 | 56 | 55 | 53 | (2 | ) | (3 | ) | 2 | 4 | ||||||||||||||||
Fiduciary income | 45 | 47 | 48 | 47 | 47 | (2 | ) | (4 | ) | (2 | ) | (4 | ) | ||||||||||||||
Commercial lending fees | 30 | 22 | 22 | 25 | 29 | 8 | 35 | 1 | 5 | ||||||||||||||||||
Letter of credit fees | 14 | 13 | 13 | 13 | 14 | 1 | 2 | — | — | ||||||||||||||||||
Bank-owned life insurance | 11 | 10 | 10 | 9 | 8 | 1 | 1 | 3 | 18 | ||||||||||||||||||
Foreign exchange income | 11 | 10 | 9 | 10 | 10 | 1 | 5 | 1 | 11 | ||||||||||||||||||
Brokerage fees | 4 | 5 | 4 | 4 | 4 | (1 | ) | (12 | ) | — | — | ||||||||||||||||
Net securities losses | — | — | — | (2 | ) | — | — | N/M | — | — | |||||||||||||||||
Other noninterest income | 23 | 26 | 27 | 27 | 36 | (3 | ) | (7 | ) | (13 | ) | (33 | ) | ||||||||||||||
Total noninterest income | 270 | 264 | 261 | 255 | 225 | 6 | 2 | 45 | 20 | ||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||
Salaries and benefits expense | 262 | 243 | 251 | 253 | 245 | 19 | 8 | 17 | 7 | ||||||||||||||||||
Outside processing fee expense | 83 | 86 | 86 | 77 | 33 | (3 | ) | (5 | ) | 50 | N/M | ||||||||||||||||
Net occupancy expense | 41 | 41 | 39 | 38 | 46 | — | — | (5 | ) | (10 | ) | ||||||||||||||||
Equipment expense | 14 | 13 | 13 | 13 | 14 | 1 | 1 | — | — | ||||||||||||||||||
Software expense | 26 | 26 | 24 | 23 | 23 | — | — | 3 | 9 | ||||||||||||||||||
FDIC insurance expense | 10 | 9 | 9 | 9 | 8 | 1 | 24 | 2 | 31 | ||||||||||||||||||
Advertising expense | 7 | 6 | 5 | 6 | 7 | 1 | 13 | — | — | ||||||||||||||||||
Litigation-related expense | — | (3 | ) | (30 | ) | 1 | — | 3 | N/M | — | — | ||||||||||||||||
Other noninterest expenses | 43 | 40 | 39 | 39 | 43 | 3 | 8 | — | — | ||||||||||||||||||
Total noninterest expenses | 486 | 461 | 436 | 459 | 419 | 25 | 5 | 67 | 16 | ||||||||||||||||||
Income before income taxes | 157 | 199 | 199 | 195 | 219 | (42 | ) | (21 | ) | (62 | ) | (29 | ) | ||||||||||||||
Provision for income taxes | 41 | 63 | 64 | 61 | 70 | (22 | ) | (35 | ) | (29 | ) | (41 | ) | ||||||||||||||
NET INCOME | 116 | 136 | 135 | 134 | 149 | (20 | ) | (15 | ) | (33 | ) | (23 | ) | ||||||||||||||
Less income allocated to participating securities | 1 | 2 | 1 | 2 | 1 | (1 | ) | (14 | ) | — | — | ||||||||||||||||
Net income attributable to common shares | $ | 115 | $ | 134 | $ | 134 | $ | 132 | $ | 148 | $ | (19 | ) | (15 | )% | $ | (33 | ) | (23 | )% | |||||||
Earnings per common share: | |||||||||||||||||||||||||||
Basic | $ | 0.65 | $ | 0.76 | $ | 0.76 | $ | 0.75 | $ | 0.83 | $ | (0.11 | ) | (14 | )% | $ | (0.18 | ) | (22 | )% | |||||||
Diluted | 0.64 | 0.74 | 0.73 | 0.73 | 0.80 | (0.10 | ) | (14 | ) | (0.16 | ) | (20 | ) | ||||||||||||||
Comprehensive income | 31 | 187 | 109 | 176 | 54 | (156 | ) | (83 | ) | (23 | ) | (43 | ) | ||||||||||||||
Cash dividends declared on common stock | 37 | 37 | 37 | 36 | 36 | — | — | 1 | 3 | ||||||||||||||||||
Cash dividends declared per common share | 0.21 | 0.21 | 0.21 | 0.20 | 0.20 | — | — | 0.01 | 5 |
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(in millions) | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||||
Balance at beginning of period | $ | 622 | $ | 618 | $ | 601 | $ | 594 | $ | 592 | ||||||
Loan charge-offs: | ||||||||||||||||
Commercial | 73 | 30 | 17 | 19 | 8 | |||||||||||
Commercial mortgage | 1 | — | 2 | — | 2 | |||||||||||
Lease financing | — | — | 1 | — | — | |||||||||||
International | — | 1 | 11 | 2 | 6 | |||||||||||
Residential mortgage | — | — | 1 | — | 1 | |||||||||||
Consumer | 2 | 3 | 3 | 2 | 3 | |||||||||||
Total loan charge-offs | 76 | 34 | 35 | 23 | 20 | |||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||
Commercial | 6 | 8 | 10 | 9 | 6 | |||||||||||
Real estate construction | — | — | 1 | — | 2 | |||||||||||
Commercial mortgage | 11 | 2 | 5 | 3 | 10 | |||||||||||
Residential mortgage | 1 | — | — | 1 | — | |||||||||||
Consumer | 7 | 1 | 1 | 2 | 1 | |||||||||||
Total recoveries | 25 | 11 | 17 | 15 | 19 | |||||||||||
Net loan charge-offs | 51 | 23 | 18 | 8 | 1 | |||||||||||
Provision for loan losses | 63 | 28 | 35 | 16 | 4 | |||||||||||
Foreign currency translation adjustment | — | (1 | ) | — | (1 | ) | (1 | ) | ||||||||
Balance at end of period | $ | 634 | $ | 622 | $ | 618 | $ | 601 | $ | 594 | ||||||
Allowance for loan losses as a percentage of total loans | 1.29 | % | 1.27 | % | 1.24 | % | 1.22 | % | 1.22 | % | ||||||
Net loan charge-offs as a percentage of average total loans | 0.42 | 0.19 | 0.15 | 0.07 | 0.01 |
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
2015 | 2014 | |||||||||||||||
(in millions) | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | |||||||||||
Balance at beginning of period | $ | 48 | $ | 50 | $ | 39 | $ | 41 | $ | 43 | ||||||
Less: Charge-offs on lending-related commitments (a) | — | — | 1 | — | — | |||||||||||
Add: Provision for credit losses on lending-related commitments | (3 | ) | (2 | ) | 12 | (2 | ) | (2 | ) | |||||||
Balance at end of period | $ | 45 | $ | 48 | $ | 50 | $ | 39 | $ | 41 | ||||||
Unfunded lending-related commitments sold | $ | — | $ | — | $ | 12 | $ | 1 | $ | — |
(a) | Charge-offs result from the sale of unfunded lending-related commitments. |
CONSOLIDATED STATISTICAL DATA (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(in millions, except per share data) | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||
Commercial loans: | |||||||||||||||
Floor plan | $ | 3,939 | $ | 3,538 | $ | 3,840 | $ | 3,544 | $ | 3,790 | |||||
Other | 27,720 | 28,239 | 28,883 | 28,547 | 27,730 | ||||||||||
Total commercial loans | 31,659 | 31,777 | 32,723 | 32,091 | 31,520 | ||||||||||
Real estate construction loans | 2,001 | 1,874 | 1,795 | 1,917 | 1,955 | ||||||||||
Commercial mortgage loans | 8,977 | 8,787 | 8,674 | 8,558 | 8,604 | ||||||||||
Lease financing | 724 | 751 | 786 | 792 | 805 | ||||||||||
International loans | 1,368 | 1,382 | 1,420 | 1,433 | 1,496 | ||||||||||
Residential mortgage loans | 1,870 | 1,880 | 1,865 | 1,859 | 1,831 | ||||||||||
Consumer loans: | |||||||||||||||
Home equity | 1,720 | 1,714 | 1,682 | 1,678 | 1,658 | ||||||||||
Other consumer | 765 | 777 | 796 | 744 | 724 | ||||||||||
Total consumer loans | 2,485 | 2,491 | 2,478 | 2,422 | 2,382 | ||||||||||
Total loans | $ | 49,084 | $ | 48,942 | $ | 49,741 | $ | 49,072 | $ | 48,593 | |||||
Goodwill | $ | 635 | $ | 635 | $ | 635 | $ | 635 | $ | 635 | |||||
Core deposit intangible | 10 | 10 | 11 | 12 | 13 | ||||||||||
Other intangibles | 4 | 4 | 4 | 3 | 2 | ||||||||||
Common equity tier 1 capital (a) | 7,350 | 7,327 | 7,280 | 7,230 | n/a | ||||||||||
Tier 1 common capital (b) | n/a | n/a | n/a | n/a | 7,169 | ||||||||||
Risk-weighted assets (a) | 69,731 | 69,718 | 69,967 | 69,514 | 68,273 | ||||||||||
Common equity tier 1 risk-based capital ratio (a) | 10.54 | % | 10.51 | % | 10.40 | % | 10.40 | % | n/a | ||||||
Tier 1 common risk-based capital ratio (b) | n/a | n/a | n/a | n/a | 10.50 | % | |||||||||
Tier 1 risk-based capital ratio (a) | 10.54 | 10.51 | 10.40 | 10.40 | 10.50 | ||||||||||
Total risk-based capital ratio (a) | 12.69 | 12.82 | 12.38 | 12.35 | 12.51 | ||||||||||
Leverage ratio (a) | 10.22 | 10.28 | 10.56 | 10.53 | 10.35 | ||||||||||
Tangible common equity ratio (b) | 9.70 | 9.91 | 9.92 | 9.97 | 9.85 | ||||||||||
Common shareholders' equity per share of common stock | $ | 43.03 | $ | 43.02 | $ | 42.18 | $ | 42.12 | $ | 41.35 | |||||
Tangible common equity per share of common stock (b) | 39.33 | 39.36 | 38.53 | 38.47 | 37.72 | ||||||||||
Market value per share for the quarter: | |||||||||||||||
High | 47.44 | 52.93 | 53.45 | 47.94 | 50.14 | ||||||||||
Low | 39.52 | 40.01 | 44.38 | 40.09 | 42.73 | ||||||||||
Close | 41.83 | 41.10 | 51.32 | 45.13 | 46.84 | ||||||||||
Quarterly ratios: | |||||||||||||||
Return on average common shareholders' equity | 6.08 | % | 7.19 | % | 7.21 | % | 7.20 | % | 7.96 | % | |||||
Return on average assets | 0.64 | 0.76 | 0.79 | 0.78 | 0.86 | ||||||||||
Efficiency ratio (c) | 69.11 | 67.08 | 63.68 | 68.50 | 65.26 | ||||||||||
Number of banking centers | 477 | 477 | 477 | 482 | 481 | ||||||||||
Number of employees - full time equivalent | 8,880 | 8,941 | 8,901 | 8,831 | 8,876 |
(a) | Basel III rules became effective January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules. |
(b) | See Reconciliation of Non-GAAP Financial Measures. |
(c) | Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains (losses). |
PARENT COMPANY ONLY BALANCE SHEETS (unaudited) | |||||||||
Comerica Incorporated | |||||||||
December 31, | September 30, | December 31, | |||||||
(in millions, except share data) | 2015 | 2015 | 2014 | ||||||
ASSETS | |||||||||
Cash and due from subsidiary bank | $ | 4 | $ | 5 | $ | — | |||
Short-term investments with subsidiary bank | 569 | 563 | 1,133 | ||||||
Other short-term investments | 89 | 89 | 94 | ||||||
Investment in subsidiaries, principally banks | 7,523 | 7,596 | 7,411 | ||||||
Premises and equipment | 3 | 2 | 2 | ||||||
Other assets | 137 | 138 | 138 | ||||||
Total assets | $ | 8,325 | $ | 8,393 | $ | 8,778 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Medium- and long-term debt | $ | 608 | $ | 618 | $ | 1,208 | |||
Other liabilities | 157 | 153 | 168 | ||||||
Total liabilities | 765 | 771 | 1,376 | ||||||
Common stock - $5 par value: | |||||||||
Authorized - 325,000,000 shares | |||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||
Capital surplus | 2,173 | 2,165 | 2,188 | ||||||
Accumulated other comprehensive loss | (429 | ) | (345 | ) | (412 | ) | |||
Retained earnings | 7,084 | 7,007 | 6,744 | ||||||
Less cost of common stock in treasury - 52,457,113 shares at 12/31/15; 51,010,418 shares at 9/30/15 and 49,146,225 shares at 12/31/14 | (2,409 | ) | (2,346 | ) | (2,259 | ) | |||
Total shareholders' equity | 7,560 | 7,622 | 7,402 | ||||||
Total liabilities and shareholders' equity | $ | 8,325 | $ | 8,393 | $ | 8,778 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Common Stock | Other | Total | ||||||||||||||||||
Shares | Capital | Comprehensive | Retained | Treasury | Shareholders' | |||||||||||||||
(in millions, except per share data) | Outstanding | Amount | Surplus | Loss | Earnings | Stock | Equity | |||||||||||||
BALANCE AT DECEMBER 31, 2013 | 182.3 | $ | 1,141 | $ | 2,179 | $ | (391 | ) | $ | 6,318 | $ | (2,097 | ) | $ | 7,150 | |||||
Net income | — | — | — | — | 593 | — | 593 | |||||||||||||
Other comprehensive loss, net of tax | — | — | — | (21 | ) | — | — | (21 | ) | |||||||||||
Cash dividends declared on common stock ($0.79 per share) | — | — | — | — | (143 | ) | — | (143 | ) | |||||||||||
Purchase of common stock | (5.4 | ) | — | — | — | — | (260 | ) | (260 | ) | ||||||||||
Net issuance of common stock under employee stock plans | 2.1 | — | (27 | ) | — | (24 | ) | 96 | 45 | |||||||||||
Share-based compensation | — | — | 38 | — | — | — | 38 | |||||||||||||
Other | — | — | (2 | ) | — | — | 2 | — | ||||||||||||
BALANCE AT DECEMBER 31, 2014 | 179.0 | $ | 1,141 | $ | 2,188 | $ | (412 | ) | $ | 6,744 | $ | (2,259 | ) | $ | 7,402 | |||||
Net income | — | — | — | — | 521 | — | 521 | |||||||||||||
Other comprehensive loss, net of tax | — | — | — | (17 | ) | — | — | (17 | ) | |||||||||||
Cash dividends declared on common stock ($0.83 per share) | — | — | — | — | (148 | ) | — | (148 | ) | |||||||||||
Purchase of common stock | (5.3 | ) | — | — | — | — | (240 | ) | (240 | ) | ||||||||||
Purchase and retirement of warrants | — | — | (10 | ) | — | — | — | (10 | ) | |||||||||||
Net issuance of common stock under employee stock plans | 1.0 | — | (22 | ) | — | (11 | ) | 47 | 14 | |||||||||||
Net issuance of common stock for warrants | 1.0 | — | (21 | ) | — | (22 | ) | 43 | — | |||||||||||
Share-based compensation | — | — | 38 | — | — | — | 38 | |||||||||||||
BALANCE AT DECEMBER 31, 2015 | 175.7 | $ | 1,141 | $ | 2,173 | $ | (429 | ) | $ | 7,084 | $ | (2,409 | ) | $ | 7,560 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
(dollar amounts in millions) | Business | Retail | Wealth | ||||||||||||||||||||
Three Months Ended December 31, 2015 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 387 | $ | 160 | $ | 47 | $ | (162 | ) | $ | 2 | $ | 434 | ||||||||||
Provision for credit losses | 41 | 23 | (7 | ) | — | 3 | 60 | ||||||||||||||||
Noninterest income | 147 | 49 | 57 | 15 | 2 | 270 | |||||||||||||||||
Noninterest expenses | 208 | 191 | 81 | 2 | 4 | 486 | |||||||||||||||||
Provision (benefit) for income taxes (FTE) | 85 | (4 | ) | 9 | (47 | ) | (1 | ) | 42 | ||||||||||||||
Net income (loss) | $ | 200 | $ | (1 | ) | $ | 21 | $ | (102 | ) | $ | (2 | ) | $ | 116 | ||||||||
Net loan charge-offs (recoveries) | $ | 35 | $ | 25 | $ | (9 | ) | $ | — | $ | — | $ | 51 | ||||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 38,765 | $ | 6,549 | $ | 5,199 | $ | 12,678 | $ | 8,716 | $ | 71,907 | |||||||||||
Loans | 37,682 | 5,868 | 4,998 | — | — | 48,548 | |||||||||||||||||
Deposits | 31,738 | 23,262 | 4,355 | 120 | 261 | 59,736 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 2.06 | % | (0.03 | )% | 1.68 | % | N/M | N/M | 0.64 | % | |||||||||||||
Efficiency ratio (b) | 39.00 | 91.69 | 77.02 | N/M | N/M | 69.11 | |||||||||||||||||
Business | Retail | Wealth | |||||||||||||||||||||
Three Months Ended September 30, 2015 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 380 | $ | 158 | $ | 45 | $ | (162 | ) | $ | 2 | $ | 423 | ||||||||||
Provision for credit losses | 30 | 2 | (3 | ) | — | (3 | ) | 26 | |||||||||||||||
Noninterest income | 145 | 49 | 59 | 15 | (4 | ) | 264 | ||||||||||||||||
Noninterest expenses | 202 | 185 | 74 | 2 | (2 | ) | 461 | ||||||||||||||||
Provision (benefit) for income taxes (FTE) | 99 | 7 | 12 | (56 | ) | 2 | 64 | ||||||||||||||||
Net income (loss) | $ | 194 | $ | 13 | $ | 21 | $ | (93 | ) | $ | 1 | $ | 136 | ||||||||||
Net loan charge-offs (recoveries) | $ | 23 | $ | 1 | $ | (1 | ) | $ | — | $ | — | $ | 23 | ||||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 39,210 | $ | 6,518 | $ | 5,228 | $ | 12,177 | $ | 8,200 | $ | 71,333 | |||||||||||
Loans | 38,113 | 5,835 | 5,024 | — | — | 48,972 | |||||||||||||||||
Deposits | 31,397 | 23,079 | 4,188 | 212 | 264 | 59,140 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 1.98 | % | 0.23 | % | 1.62 | % | N/M | N/M | 0.76 | % | |||||||||||||
Efficiency ratio (b) | 38.41 | 89.33 | 71.11 | N/M | N/M | 67.08 | |||||||||||||||||
Business | Retail | Wealth | |||||||||||||||||||||
Three Months Ended December 31, 2014 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 387 | $ | 152 | $ | 47 | $ | (177 | ) | 7 | $ | 416 | |||||||||||
Provision for credit losses | 8 | (2 | ) | (9 | ) | — | 5 | 2 | |||||||||||||||
Noninterest income | 104 | 45 | 60 | 16 | — | 225 | |||||||||||||||||
Noninterest expenses | 148 | 182 | 80 | 3 | 6 | 419 | |||||||||||||||||
Provision (benefit) for income taxes (FTE) | 119 | 6 | 14 | (64 | ) | (4 | ) | 71 | |||||||||||||||
Net income (loss) | $ | 216 | $ | 11 | $ | 22 | $ | (100 | ) | $ | — | $ | 149 | ||||||||||
Net loan charge-offs (recoveries) | $ | (1 | ) | $ | 4 | $ | (2 | ) | $ | — | $ | — | $ | 1 | |||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 37,896 | $ | 6,298 | $ | 5,034 | $ | 12,218 | $ | 7,861 | $ | 69,307 | |||||||||||
Loans | 36,890 | 5,626 | 4,845 | — | — | 47,361 | |||||||||||||||||
Deposits | 30,897 | 22,301 | 4,094 | 195 | 273 | 57,760 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 2.28 | % | 0.19 | % | 1.79 | % | N/M | N/M | 0.86 | % | |||||||||||||
Efficiency ratio (b) | 30.09 | 92.33 | 74.48 | N/M | N/M | 65.26 |
MARKET SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
(dollar amounts in millions) | Other | Finance | |||||||||||||||||||||
Three Months Ended December 31, 2015 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 183 | $ | 193 | $ | 131 | $ | 87 | $ | (160 | ) | $ | 434 | ||||||||||
Provision for credit losses | (12 | ) | (7 | ) | 57 | 19 | 3 | 60 | |||||||||||||||
Noninterest income | 82 | 41 | 32 | 98 | 17 | 270 | |||||||||||||||||
Noninterest expenses | 161 | 108 | 103 | 108 | 6 | 486 | |||||||||||||||||
Provision (benefit) for income taxes (FTE) | 33 | 43 | 6 | 8 | (48 | ) | 42 | ||||||||||||||||
Net income (loss) | $ | 83 | $ | 90 | $ | (3 | ) | $ | 50 | $ | (104 | ) | $ | 116 | |||||||||
Net loan charge-offs | $ | (2 | ) | $ | 1 | $ | 33 | $ | 19 | $ | — | $ | 51 | ||||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 13,601 | $ | 17,297 | $ | 11,474 | $ | 8,141 | $ | 21,394 | $ | 71,907 | |||||||||||
Loans | 12,986 | 17,033 | 10,893 | 7,636 | — | 48,548 | |||||||||||||||||
Deposits | 22,123 | 18,545 | 10,807 | 7,880 | 381 | 59,736 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 1.43 | % | 1.83 | % | (0.10 | )% | 2.36 | % | N/M | 0.64 | % | ||||||||||||
Efficiency ratio (b) | 61.06 | 46.17 | 62.94 | 58.11 | N/M | 69.11 | |||||||||||||||||
Other | Finance | ||||||||||||||||||||||
Three Months Ended September 30, 2015 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 180 | $ | 187 | $ | 129 | $ | 87 | $ | (160 | ) | $ | 423 | ||||||||||
Provision for credit losses | 6 | 24 | 10 | (11 | ) | (3 | ) | 26 | |||||||||||||||
Noninterest income | 85 | 38 | 34 | 96 | 11 | 264 | |||||||||||||||||
Noninterest expenses | 152 | 102 | 97 | 110 | — | 461 | |||||||||||||||||
Provision (benefit) for income taxes (FTE) | 36 | 37 | 20 | 25 | (54 | ) | 64 | ||||||||||||||||
Net income (loss) | $ | 71 | $ | 62 | $ | 36 | $ | 59 | $ | (92 | ) | $ | 136 | ||||||||||
Net loan charge-offs (recoveries) | $ | 9 | $ | 10 | $ | 4 | $ | — | $ | — | $ | 23 | |||||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 13,856 | $ | 17,060 | $ | 11,578 | $ | 8,462 | $ | 20,377 | $ | 71,333 | |||||||||||
Loans | 13,223 | 16,789 | 10,997 | 7,963 | — | 48,972 | |||||||||||||||||
Deposits | 21,946 | 18,372 | 10,753 | 7,593 | 476 | 59,140 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 1.23 | % | 1.27 | % | 1.16 | % | 2.82 | % | N/M | 0.76 | % | ||||||||||||
Efficiency ratio (b) | 57.49 | 45.28 | 59.54 | 59.86 | N/M | 67.08 | |||||||||||||||||
Other | Finance | ||||||||||||||||||||||
Three Months Ended December 31, 2014 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||
Earnings summary: | |||||||||||||||||||||||
Net interest income (expense) (FTE) | $ | 173 | $ | 192 | $ | 139 | $ | 82 | $ | (170 | ) | $ | 416 | ||||||||||
Provision for credit losses | (19 | ) | (10 | ) | 18 | 8 | 5 | 2 | |||||||||||||||
Noninterest income | 89 | 37 | 38 | 45 | 16 | 225 | |||||||||||||||||
Noninterest expenses | 157 | 100 | 95 | 58 | 9 | 419 | |||||||||||||||||
Provision (benefit) for income taxes (FTE) | 45 | 55 | 24 | 15 | (68 | ) | 71 | ||||||||||||||||
Net income (loss) | $ | 79 | $ | 84 | $ | 40 | $ | 46 | $ | (100 | ) | $ | 149 | ||||||||||
Net loan charge-offs (recoveries) | $ | (5 | ) | $ | 1 | $ | 2 | $ | 3 | $ | — | $ | 1 | ||||||||||
Selected average balances: | |||||||||||||||||||||||
Assets | $ | 13,605 | $ | 16,035 | $ | 12,003 | $ | 7,585 | $ | 20,079 | $ | 69,307 | |||||||||||
Loans | 13,142 | 15,777 | 11,327 | 7,115 | — | 47,361 | |||||||||||||||||
Deposits | 21,530 | 18,028 | 10,825 | 6,909 | 468 | 57,760 | |||||||||||||||||
Statistical data: | |||||||||||||||||||||||
Return on average assets (a) | 1.41 | % | 1.77 | % | 1.32 | % | 2.42 | % | N/M | 0.86 | % | ||||||||||||
Efficiency ratio (b) | 59.92 | 43.61 | 53.62 | 45.47 | N/M | 65.26 |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(dollar amounts in millions) | 2015 | 2015 | 2015 | 2015 | 2014 | ||||||||||
Tier 1 Common Capital Ratio: | |||||||||||||||
Tier 1 and Tier 1 common capital (a) | n/a | n/a | n/a | n/a | $ | 7,169 | |||||||||
Risk-weighted assets (a) | n/a | n/a | n/a | n/a | 68,269 | ||||||||||
Tier 1 and Tier 1 common risk-based capital ratio | n/a | n/a | n/a | n/a | 10.50 | % | |||||||||
Tangible Common Equity Ratio: | |||||||||||||||
Common shareholders' equity | $ | 7,560 | $ | 7,622 | $ | 7,523 | $ | 7,500 | $ | 7,402 | |||||
Less: | |||||||||||||||
Goodwill | 635 | 635 | 635 | 635 | 635 | ||||||||||
Other intangible assets | 14 | 14 | 15 | 15 | 15 | ||||||||||
Tangible common equity | $ | 6,911 | $ | 6,973 | $ | 6,873 | $ | 6,850 | $ | 6,752 | |||||
Total assets | $ | 71,877 | $ | 71,012 | $ | 69,945 | $ | 69,333 | $ | 69,186 | |||||
Less: | |||||||||||||||
Goodwill | 635 | 635 | 635 | 635 | 635 | ||||||||||
Other intangible assets | 14 | 14 | 15 | 15 | 15 | ||||||||||
Tangible assets | $ | 71,228 | $ | 70,363 | $ | 69,295 | $ | 68,683 | $ | 68,536 | |||||
Common equity ratio | 10.52 | % | 10.73 | % | 10.76 | % | 10.82 | % | 10.70 | % | |||||
Tangible common equity ratio | 9.70 | 9.91 | 9.92 | 9.97 | 9.85 | ||||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||||||
Common shareholders' equity | $ | 7,560 | $ | 7,622 | $ | 7,523 | $ | 7,500 | $ | 7,402 | |||||
Tangible common equity | 6,911 | 6,973 | 6,873 | 6,850 | 6,752 | ||||||||||
Shares of common stock outstanding (in millions) | 176 | 177 | 178 | 178 | 179 | ||||||||||
Common shareholders' equity per share of common stock | $ | 43.03 | $ | 43.02 | $ | 42.18 | $ | 42.12 | $ | 41.35 | |||||
Tangible common equity per share of common stock | 39.33 | 39.36 | 38.53 | 38.47 | 37.72 |
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