------------ | ------------ | ------------ | ||||||
(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 | ||||||||||||
Emerging growth company |
(dollar amounts in millions, except per share data) | 2nd Qtr '20 | 1st Qtr '20 | 2nd Qtr '19 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 471 | $ | 513 | $ | 603 | |||||||||||
Provision for credit losses | 138 | 411 | 44 | ||||||||||||||
Noninterest income | 247 | 237 | 250 | ||||||||||||||
Noninterest expenses | 440 | 425 | 424 | ||||||||||||||
Pre-tax income (loss) | 140 | (86) | 385 | ||||||||||||||
Provision (benefit) for income taxes | 27 | (21) | 87 | ||||||||||||||
Net income (loss) | $ | 113 | $ | (65) | $ | 298 | |||||||||||
Diluted earnings (losses) per common share | $ | 0.80 | $ | (0.46) | $ | 1.94 | |||||||||||
Average loans | 53,498 | 49,604 | 50,963 | ||||||||||||||
Average deposits | 64,282 | 56,768 | 54,995 | ||||||||||||||
Net interest margin | 2.50 | % | 3.06 | % | 3.66 | % | |||||||||||
Common equity Tier 1 capital ratio (a) | 9.97 | 9.52 | 10.18 | ||||||||||||||
Tier 1 capital ratio (a) | 10.56 | 9.52 | 10.18 | ||||||||||||||
Common equity ratio | 8.78 | 9.70 | 10.10 | ||||||||||||||
Common shareholders' equity per share of common stock | $ | 53.28 | $ | 53.24 | $ | 48.89 | |||||||||||
Tangible common equity per share of common stock (b) | 48.69 | 48.65 | 44.61 | ||||||||||||||
(dollar amounts in millions) | 2nd Qtr '20 | 1st Qtr '20 | 2nd Qtr '19 | ||||||||||||||
Net interest income | $ | 471 | $ | 513 | $ | 603 | |||||||||||
Net interest margin | 2.50 | % | 3.06 | % | 3.66 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 75,989 | $ | 67,496 | $ | 65,890 | |||||||||||
Total loans | 53,498 | 49,604 | 50,963 | ||||||||||||||
Total investment securities | 12,642 | 12,331 | 12,091 | ||||||||||||||
Federal Reserve Bank deposits | 9,483 | 5,147 | 2,479 | ||||||||||||||
Total deposits | 64,282 | 56,768 | 54,995 | ||||||||||||||
Total noninterest-bearing deposits | 32,686 | 26,761 | 26,398 | ||||||||||||||
Short-term borrowings | 882 | 157 | 927 | ||||||||||||||
Medium- and long-term debt | 7,206 | 7,324 | 6,712 |
(dollar amounts in millions) | 2nd Qtr '20 | 1st Qtr '20 | 2nd Qtr '19 | ||||||||||||||
Credit-related charge-offs | $ | 57 | $ | 89 | $ | 44 | |||||||||||
Recoveries | 7 | 5 | 11 | ||||||||||||||
Net credit-related charge-offs | 50 | 84 | 33 | ||||||||||||||
Net credit-related charge-offs/Average total loans | 0.37 | % | 0.68 | % | 0.26 | % | |||||||||||
Provision for credit losses | $ | 138 | $ | 411 | $ | 44 | |||||||||||
Nonperforming loans | 271 | 239 | 230 | ||||||||||||||
Nonperforming assets (NPAs) | 282 | 250 | 233 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.53 | % | 0.47 | % | 0.45 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 41 | $ | 64 | $ | 17 | |||||||||||
Allowance for loan losses | 1,007 | 916 | 657 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 59 | 62 | 31 | ||||||||||||||
Total allowance for credit losses | 1,066 | 978 | 688 | ||||||||||||||
Allowance for loan losses/Period-end total loans | 1.88 | % | 1.71 | % | 1.27 | % | |||||||||||
Allowance for loan losses/Period-end total loans excluding PPP loans | 2.03 | n/a | n/a | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.99 | 1.83 | 1.33 | ||||||||||||||
Allowance for credit losses/Period-end total loans excluding PPP loans | 2.15 | n/a | n/a | ||||||||||||||
Allowance for credit losses/Nonperforming loans | 3.9x | 4.1x | 3.0x |
Media Contacts: | Investor Contacts: | ||||
Wendy Bridges | Darlene P. Persons | ||||
(214) 462-4443 | (214) 462-6831 | ||||
Louis H. Mora | Amanda Perkins | ||||
(214) 462-6669 | (214) 462-6731 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||||||||
(in millions, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||||||
Diluted earnings (losses) per common share | $ | 0.80 | $ | (0.46) | $ | 1.94 | $ | 0.34 | $ | 4.06 | ||||||||||
Cash dividends declared | 0.68 | 0.68 | 0.67 | 1.36 | 1.34 | |||||||||||||||
Average diluted shares (in thousands) | 139,453 | 140,554 | 153,189 | 140,529 | 156,351 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average common shareholders' equity | 6.09 | % | (3.49) | % | 16.41 | % | 1.30 | % | 17.43 | % | ||||||||||
Return on average assets | 0.55 | (0.35) | 1.68 | 0.12 | 1.82 | |||||||||||||||
Efficiency ratio (a) | 61.14 | 56.57 | 49.65 | 58.80 | 50.23 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Common equity tier 1 capital (b), (c) | $ | 6,698 | $ | 6,654 | $ | 7,060 | ||||||||||||||
Tier 1 capital (b), (c) | 7,093 | 6,654 | 7,060 | |||||||||||||||||
Risk-weighted assets (b) | 67,156 | 69,874 | 69,371 | |||||||||||||||||
Common equity tier 1 capital ratio (b), (c) | 9.97 | % | 9.52 | % | 10.18 | % | ||||||||||||||
Tier 1 capital ratio (b), (c) | 10.56 | 9.52 | 10.18 | |||||||||||||||||
Total capital ratio (b) | 12.93 | 11.85 | 12.17 | |||||||||||||||||
Leverage ratio (b) | 8.76 | 9.12 | 9.90 | |||||||||||||||||
Common shareholders' equity per share of common stock | $ | 53.28 | $ | 53.24 | $ | 48.89 | ||||||||||||||
Tangible common equity per share of common stock (c) | 48.69 | 48.65 | 44.61 | |||||||||||||||||
Common equity ratio | 8.78 | % | 9.70 | % | 10.10 | % | ||||||||||||||
Tangible common equity ratio (c) | 8.08 | 8.93 | 9.30 | |||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Commercial loans | $ | 33,944 | $ | 30,697 | $ | 32,607 | $ | 32,321 | $ | 32,037 | ||||||||||
Real estate construction loans | 3,887 | 3,564 | 3,319 | 3,725 | 3,279 | |||||||||||||||
Commercial mortgage loans | 9,800 | 9,638 | 9,060 | 9,719 | 9,028 | |||||||||||||||
Lease financing | 592 | 582 | 546 | 587 | 533 | |||||||||||||||
International loans | 1,137 | 1,004 | 1,025 | 1,071 | 1,019 | |||||||||||||||
Residential mortgage loans | 1,895 | 1,855 | 1,943 | 1,875 | 1,954 | |||||||||||||||
Consumer loans | 2,243 | 2,264 | 2,463 | 2,253 | 2,473 | |||||||||||||||
Total loans | 53,498 | 49,604 | 50,963 | 51,551 | 50,323 | |||||||||||||||
Earning assets | 75,989 | 67,496 | 65,890 | 71,742 | 65,257 | |||||||||||||||
Total assets | 81,644 | 73,265 | 71,252 | 77,454 | 70,515 | |||||||||||||||
Noninterest-bearing deposits | 32,686 | 26,761 | 26,398 | 29,723 | 26,634 | |||||||||||||||
Interest-bearing deposits | 31,596 | 30,007 | 28,597 | 30,801 | 27,864 | |||||||||||||||
Total deposits | 64,282 | 56,768 | 54,995 | 60,524 | 54,498 | |||||||||||||||
Common shareholders' equity | 7,436 | 7,438 | 7,285 | 7,437 | 7,371 | |||||||||||||||
Total shareholders' equity | 7,592 | 7,438 | 7,285 | 7,515 | 7,371 | |||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||
Net interest income | $ | 471 | $ | 513 | $ | 603 | $ | 984 | $ | 1,209 | ||||||||||
Net interest margin | 2.50 | % | 3.06 | % | 3.66 | % | 2.77 | % | 3.73 | % | ||||||||||
CREDIT QUALITY | ||||||||||||||||||||
Nonperforming assets | $ | 282 | $ | 250 | $ | 233 | ||||||||||||||
Loans past due 90 days or more and still accruing | 41 | 64 | 17 | |||||||||||||||||
Net credit-related charge-offs | 50 | 84 | 33 | $ | 134 | $ | 44 | |||||||||||||
Allowance for loan losses | 1,007 | 916 | 657 | |||||||||||||||||
Allowance for credit losses on lending-related commitments | 59 | 62 | 31 | |||||||||||||||||
Total allowance for credit losses (d) | 1,066 | 978 | 688 | |||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.99 | % | 1.83 | % | 1.33 | % | ||||||||||||||
Net credit-related charge-offs as a percentage of average total loans | 0.37 | 0.68 | 0.26 | 0.52 | % | 0.17 | % | |||||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.53 | 0.47 | 0.45 | |||||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.9x | 4.1x | 3.0x | |||||||||||||||||
OTHER KEY INFORMATION | ||||||||||||||||||||
Number of banking centers | 434 | 436 | 436 | |||||||||||||||||
Number of employees - full time equivalent | 7,777 | 7,753 | 7,693 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||
June 30, | March 31, | December 31, | June 30, | |||||||||||
(in millions, except share data) | 2020 | 2020 | 2019 | 2019 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 1,048 | $ | 848 | $ | 973 | $ | 1,029 | ||||||
Interest-bearing deposits with banks | 12,263 | 4,007 | 4,845 | 2,552 | ||||||||||
Other short-term investments | 153 | 138 | 155 | 140 | ||||||||||
Investment securities available-for-sale | 12,759 | 13,041 | 12,398 | 12,338 | ||||||||||
Commercial loans | 33,826 | 34,249 | 31,473 | 33,326 | ||||||||||
Real estate construction loans | 3,952 | 3,756 | 3,455 | 3,292 | ||||||||||
Commercial mortgage loans | 9,925 | 9,698 | 9,559 | 9,217 | ||||||||||
Lease financing | 589 | 584 | 588 | 575 | ||||||||||
International loans | 1,104 | 1,035 | 1,009 | 1,024 | ||||||||||
Residential mortgage loans | 1,886 | 1,821 | 1,845 | 1,924 | ||||||||||
Consumer loans | 2,164 | 2,315 | 2,440 | 2,443 | ||||||||||
Total loans | 53,446 | 53,458 | 50,369 | 51,801 | ||||||||||
Less allowance for loan losses | (1,007) | (916) | (637) | (657) | ||||||||||
Net loans | 52,439 | 52,542 | 49,732 | 51,144 | ||||||||||
Premises and equipment | 450 | 454 | 457 | 470 | ||||||||||
Accrued income and other assets | 5,285 | 5,307 | 4,842 | 4,864 | ||||||||||
Total assets | $ | 84,397 | $ | 76,337 | $ | 73,402 | $ | 72,537 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Noninterest-bearing deposits | $ | 35,582 | $ | 27,646 | $ | 27,382 | $ | 27,001 | ||||||
Money market and interest-bearing checking deposits | 26,895 | 24,475 | 24,527 | 22,195 | ||||||||||
Savings deposits | 2,500 | 2,258 | 2,184 | 2,162 | ||||||||||
Customer certificates of deposit | 2,656 | 2,958 | 2,978 | 2,441 | ||||||||||
Other time deposits | — | — | 133 | 1,726 | ||||||||||
Foreign office time deposits | 87 | 29 | 91 | 12 | ||||||||||
Total interest-bearing deposits | 32,138 | 29,720 | 29,913 | 28,536 | ||||||||||
Total deposits | 67,720 | 57,366 | 57,295 | 55,537 | ||||||||||
Short-term borrowings | 752 | 2,263 | 71 | 1,733 | ||||||||||
Accrued expenses and other liabilities | 1,602 | 1,872 | 1,440 | 1,386 | ||||||||||
Medium- and long-term debt | 6,521 | 7,434 | 7,269 | 6,558 | ||||||||||
Total liabilities | 76,595 | 68,935 | 66,075 | 65,214 | ||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $1,000 liquidation value per share: | ||||||||||||||
Authorized - 4,000 shares | ||||||||||||||
Issued - 4,000 shares at 6/30/20 | 395 | — | — | — | ||||||||||
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 | 2,173 | 2,168 | 2,174 | 2,168 | ||||||||||
Accumulated other comprehensive income (loss) | 158 | 174 | (235) | (382) | ||||||||||
Retained earnings | 9,404 | 9,389 | 9,538 | 9,176 | ||||||||||
Less cost of common stock in treasury - 89,124,560 shares at 6/30/20, 89,127,359 shares at 3/31/20, 86,069,234 shares at 12/31/19 and 78,367,534 shares at 6/30/19 | (5,469) | (5,470) | (5,291) | (4,780) | ||||||||||
Total shareholders' equity | 7,802 | 7,402 | 7,327 | 7,323 | ||||||||||
Total liabilities and shareholders' equity | $ | 84,397 | $ | 76,337 | $ | 73,402 | $ | 72,537 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in millions, except per share data) | 2020 | 2019 | 2020 | 2019 | |||||||||||||
INTEREST INCOME | |||||||||||||||||
Interest and fees on loans | $ | 434 | $ | 635 | $ | 951 | $ | 1,256 | |||||||||
Interest on investment securities | 74 | 75 | 148 | 147 | |||||||||||||
Interest on short-term investments | 3 | 17 | 21 | 34 | |||||||||||||
Total interest income | 511 | 727 | 1,120 | 1,437 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Interest on deposits | 20 | 67 | 76 | 119 | |||||||||||||
Interest on short-term borrowings | 1 | 6 | 1 | 7 | |||||||||||||
Interest on medium- and long-term debt | 19 | 51 | 59 | 102 | |||||||||||||
Total interest expense | 40 | 124 | 136 | 228 | |||||||||||||
Net interest income | 471 | 603 | 984 | 1,209 | |||||||||||||
Provision for credit losses | 138 | 44 | 549 | 31 | |||||||||||||
Net interest income after provision for credit losses | 333 | 559 | 435 | 1,178 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Card fees | 68 | 65 | 127 | 128 | |||||||||||||
Fiduciary income | 52 | 52 | 106 | 101 | |||||||||||||
Service charges on deposit accounts | 42 | 51 | 91 | 102 | |||||||||||||
Commercial lending fees | 17 | 21 | 34 | 43 | |||||||||||||
Foreign exchange income | 9 | 11 | 20 | 22 | |||||||||||||
Bank-owned life insurance | 9 | 11 | 21 | 20 | |||||||||||||
Letter of credit fees | 9 | 10 | 18 | 19 | |||||||||||||
Brokerage fees | 5 | 7 | 12 | 14 | |||||||||||||
Net securities gains (losses) | 1 | — | — | (8) | |||||||||||||
Other noninterest income | 35 | 22 | 55 | 47 | |||||||||||||
Total noninterest income | 247 | 250 | 484 | 488 | |||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||
Salaries and benefits expense | 249 | 245 | 491 | 510 | |||||||||||||
Outside processing fee expense | 62 | 65 | 119 | 128 | |||||||||||||
Occupancy expense | 37 | 37 | 74 | 74 | |||||||||||||
Software expense | 39 | 28 | 76 | 57 | |||||||||||||
Equipment expense | 12 | 12 | 24 | 24 | |||||||||||||
Advertising expense | 8 | 9 | 15 | 14 | |||||||||||||
FDIC insurance expense | 8 | 6 | 16 | 11 | |||||||||||||
Other noninterest expenses | 25 | 22 | 50 | 39 | |||||||||||||
Total noninterest expenses | 440 | 424 | 865 | 857 | |||||||||||||
Income before income taxes | 140 | 385 | 54 | 809 | |||||||||||||
Provision for income taxes | 27 | 87 | 6 | 172 | |||||||||||||
NET INCOME | 113 | 298 | 48 | 637 | |||||||||||||
Less income allocated to participating securities | 1 | 1 | 1 | 3 | |||||||||||||
Net income attributable to common shares | $ | 112 | $ | 297 | $ | 47 | $ | 634 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 0.81 | $ | 1.95 | $ | 0.34 | $ | 4.10 | |||||||||
Diluted | 0.80 | 1.94 | 0.34 | 4.06 | |||||||||||||
Comprehensive income | 97 | 429 | 441 | 864 | |||||||||||||
Cash dividends declared on common stock | 98 | 100 | 192 | 205 | |||||||||||||
Cash dividends declared per common share | 0.68 | 0.67 | 1.36 | 1.34 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Second | First | Fourth | Third | Second | Second Quarter 2020 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | First Quarter 2020 | Second Quarter 2019 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2020 | 2020 | 2019 | 2019 | 2019 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 434 | $ | 517 | $ | 564 | $ | 619 | $ | 635 | $ | (83) | (16) | % | $ | (201) | (32) | % | |||||||||||||||||
Interest on investment securities | 74 | 74 | 75 | 75 | 75 | — | — | (1) | (1) | ||||||||||||||||||||||||||
Interest on short-term investments | 3 | 18 | 20 | 17 | 17 | (15) | (85) | (14) | (83) | ||||||||||||||||||||||||||
Total interest income | 511 | 609 | 659 | 711 | 727 | (98) | (16) | (216) | (30) | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 20 | 56 | 70 | 73 | 67 | (36) | (64) | (47) | (70) | ||||||||||||||||||||||||||
Interest on short-term borrowings | 1 | — | — | 2 | 6 | 1 | 74 | (5) | (90) | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 19 | 40 | 45 | 50 | 51 | (21) | (50) | (32) | (62) | ||||||||||||||||||||||||||
Total interest expense | 40 | 96 | 115 | 125 | 124 | (56) | (58) | (84) | (67) | ||||||||||||||||||||||||||
Net interest income | 471 | 513 | 544 | 586 | 603 | (42) | (8) | (132) | (22) | ||||||||||||||||||||||||||
Provision for credit losses | 138 | 411 | 8 | 35 | 44 | (273) | (66) | 94 | n/m | ||||||||||||||||||||||||||
Net interest income after provision for credit losses | 333 | 102 | 536 | 551 | 559 | 231 | n/m | (226) | (41) | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 68 | 59 | 62 | 67 | 65 | 9 | 17 | 3 | 5 | ||||||||||||||||||||||||||
Fiduciary income | 52 | 54 | 52 | 53 | 52 | (2) | (4) | — | — | ||||||||||||||||||||||||||
Service charges on deposit accounts | 42 | 49 | 50 | 51 | 51 | (7) | (13) | (9) | (18) | ||||||||||||||||||||||||||
Commercial lending fees | 17 | 17 | 25 | 23 | 21 | — | — | (4) | (21) | ||||||||||||||||||||||||||
Foreign exchange income | 9 | 11 | 11 | 11 | 11 | (2) | (18) | (2) | (19) | ||||||||||||||||||||||||||
Bank-owned life insurance | 9 | 12 | 10 | 11 | 11 | (3) | (18) | (2) | (8) | ||||||||||||||||||||||||||
Letter of credit fees | 9 | 9 | 9 | 10 | 10 | — | — | (1) | (7) | ||||||||||||||||||||||||||
Brokerage fees | 5 | 7 | 7 | 7 | 7 | (2) | (25) | (2) | (25) | ||||||||||||||||||||||||||
Net securities gains (losses) | 1 | (1) | 1 | — | — | 2 | n/m | 1 | 84 | ||||||||||||||||||||||||||
Other noninterest income | 35 | 20 | 39 | 23 | 22 | 15 | 72 | 13 | 54 | ||||||||||||||||||||||||||
Total noninterest income | 247 | 237 | 266 | 256 | 250 | 10 | 4 | (3) | (1) | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 249 | 242 | 257 | 253 | 245 | 7 | 3 | 4 | 2 | ||||||||||||||||||||||||||
Outside processing fee expense | 62 | 57 | 70 | 66 | 65 | 5 | 7 | (3) | (6) | ||||||||||||||||||||||||||
Occupancy expense | 37 | 37 | 41 | 39 | 37 | — | — | — | — | ||||||||||||||||||||||||||
Software expense | 39 | 37 | 30 | 30 | 28 | 2 | 3 | 11 | 36 | ||||||||||||||||||||||||||
Equipment expense | 12 | 12 | 13 | 13 | 12 | — | — | — | — | ||||||||||||||||||||||||||
Advertising expense | 8 | 7 | 10 | 10 | 9 | 1 | 6 | (1) | (12) | ||||||||||||||||||||||||||
FDIC insurance expense | 8 | 8 | 6 | 6 | 6 | — | — | 2 | 38 | ||||||||||||||||||||||||||
Other noninterest expenses | 25 | 25 | 24 | 18 | 22 | — | — | 3 | 17 | ||||||||||||||||||||||||||
Total noninterest expenses | 440 | 425 | 451 | 435 | 424 | 15 | 3 | 16 | 4 | ||||||||||||||||||||||||||
Income (loss) before income taxes | 140 | (86) | 351 | 372 | 385 | 226 | n/m | (245) | (64) | ||||||||||||||||||||||||||
Provision (benefit) for income taxes | 27 | (21) | 82 | 80 | 87 | 48 | n/m | (60) | (68) | ||||||||||||||||||||||||||
NET INCOME (LOSS) | 113 | (65) | 269 | 292 | 298 | 178 | n/m | (185) | (62) | ||||||||||||||||||||||||||
Less income allocated to participating securities | 1 | — | 2 | 2 | 1 | 1 | 19 | — | — | ||||||||||||||||||||||||||
Net income (loss) attributable to common shares | $ | 112 | $ | (65) | $ | 267 | $ | 290 | $ | 297 | $ | 177 | n/m | $ | (185) | (62) | % | ||||||||||||||||||
Earnings (losses) per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 0.81 | $ | (0.46) | $ | 1.87 | $ | 1.98 | $ | 1.95 | $ | 1.27 | n/m | $ | (1.14) | (59) | % | ||||||||||||||||||
Diluted | 0.80 | (0.46) | 1.85 | 1.96 | 1.94 | 1.26 | n/m | (1.14) | (58) | ||||||||||||||||||||||||||
Comprehensive income | 97 | 344 | 370 | 338 | 429 | (247) | (72) | (332) | (77) | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 98 | 94 | 96 | 97 | 100 | 4 | 4 | (2) | (2) | ||||||||||||||||||||||||||
Cash dividends declared per common share | 0.68 | 0.68 | 0.67 | 0.67 | 0.67 | — | — | 0.01 | 1 |
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in millions) | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||||||||||
Balance at beginning of period: | ||||||||||||||||||||
Allowance for loan losses | $ | 916 | $ | 637 | $ | 652 | $ | 657 | $ | 647 | ||||||||||
Allowance for credit losses on lending-related commitments | 62 | 31 | 29 | 31 | 30 | |||||||||||||||
Allowance for credit losses | 978 | 668 | 681 | 688 | 677 | |||||||||||||||
Cumulative effect of change in accounting principle | — | (17) | — | — | — | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 55 | 87 | 24 | 59 | 42 | |||||||||||||||
Commercial mortgage | 1 | — | 2 | — | — | |||||||||||||||
International | — | — | — | — | 1 | |||||||||||||||
Residential mortgage | — | — | — | 1 | — | |||||||||||||||
Consumer | 1 | 2 | 1 | 1 | 1 | |||||||||||||||
Total loan charge-offs | 57 | 89 | 27 | 61 | 44 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 5 | 3 | 3 | 17 | 7 | |||||||||||||||
Commercial mortgage | 1 | 2 | 1 | — | 3 | |||||||||||||||
International | — | — | 1 | — | — | |||||||||||||||
Residential mortgage | — | — | — | 1 | — | |||||||||||||||
Consumer | 1 | — | 1 | 1 | 1 | |||||||||||||||
Total recoveries | 7 | 5 | 6 | 19 | 11 | |||||||||||||||
Net loan charge-offs | 50 | 84 | 21 | 42 | 33 | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | 141 | 380 | 6 | 37 | 43 | |||||||||||||||
Provision for credit losses on lending-related commitments | (3) | 31 | 2 | (2) | 1 | |||||||||||||||
Provision for credit losses | 138 | 411 | 8 | 35 | 44 | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 1,007 | 916 | 637 | 652 | 657 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 59 | 62 | 31 | 29 | 31 | |||||||||||||||
Allowance for credit losses | $ | 1,066 | $ | 978 | $ | 668 | $ | 681 | $ | 688 | ||||||||||
Allowance for loan losses as a percentage of total loans | 1.88 | % | 1.71 | % | 1.27 | % | 1.27 | % | 1.27 | % | ||||||||||
Allowance for loan losses as a percentage of total loans excluding PPP loans | 2.03 | n/a | n/a | n/a | n/a | |||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.99 | 1.83 | 1.33 | 1.32 | 1.33 | |||||||||||||||
Allowance for credit losses as a percentage of total loans excluding PPP loans | 2.15 | n/a | n/a | n/a | n/a | |||||||||||||||
Net loan charge-offs as a percentage of average total loans | 0.37 | 0.68 | 0.16 | 0.33 | 0.26 | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(in millions) | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 200 | $ | 173 | $ | 148 | $ | 152 | $ | 155 | ||||||||||
Commercial mortgage | 21 | 19 | 14 | 13 | 12 | |||||||||||||||
Lease financing | 1 | 1 | — | — | 1 | |||||||||||||||
International | — | — | — | 2 | 3 | |||||||||||||||
Total nonaccrual business loans | 222 | 193 | 162 | 167 | 171 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 24 | 20 | 20 | 36 | 35 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 21 | 22 | 17 | 17 | 18 | |||||||||||||||
Total nonaccrual retail loans | 45 | 42 | 37 | 53 | 53 | |||||||||||||||
Total nonaccrual loans | 267 | 235 | 199 | 220 | 224 | |||||||||||||||
Reduced-rate loans | 4 | 4 | 5 | 6 | 6 | |||||||||||||||
Total nonperforming loans | 271 | 239 | 204 | 226 | 230 | |||||||||||||||
Foreclosed property | 11 | 11 | 11 | 3 | 3 | |||||||||||||||
Total nonperforming assets | $ | 282 | $ | 250 | $ | 215 | $ | 229 | $ | 233 | ||||||||||
Nonperforming loans as a percentage of total loans | 0.51 | % | 0.45 | % | 0.40 | % | 0.44 | % | 0.44 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.53 | 0.47 | 0.43 | 0.44 | 0.45 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 3.9x | 4.1x | 3.3x | 3.0x | 3.0x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 41 | $ | 64 | $ | 26 | $ | 31 | $ | 17 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 235 | $ | 199 | $ | 220 | $ | 224 | $ | 191 | ||||||||||
Loans transferred to nonaccrual (a) | 96 | 137 | 48 | 85 | 93 | |||||||||||||||
Nonaccrual loan gross charge-offs | (57) | (89) | (27) | (61) | (44) | |||||||||||||||
Loans transferred to accrual status (a) | — | — | (7) | — | — | |||||||||||||||
Nonaccrual loans sold | — | — | (10) | — | (5) | |||||||||||||||
Payments/Other (b) | (7) | (12) | (25) | (28) | (11) | |||||||||||||||
Nonaccrual loans at end of period | $ | 267 | $ | 235 | $ | 199 | $ | 220 | $ | 224 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||||
June 30, 2020 | June 30, 2019 | ||||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
Commercial loans (a) | $ | 32,321 | $ | 585 | 3.51 | % | $ | 32,037 | $ | 799 | 5.04 | % | |||||||||||
Real estate construction loans | 3,725 | 78 | 4.19 | 3,279 | 93 | 5.74 | |||||||||||||||||
Commercial mortgage loans | 9,719 | 177 | 3.66 | 9,028 | 230 | 5.13 | |||||||||||||||||
Lease financing | 587 | 10 | 3.49 | 533 | 8 | 3.08 | |||||||||||||||||
International loans | 1,071 | 21 | 3.96 | 1,019 | 27 | 5.33 | |||||||||||||||||
Residential mortgage loans | 1,875 | 34 | 3.58 | 1,954 | 38 | 3.89 | |||||||||||||||||
Consumer loans | 2,253 | 46 | 4.12 | 2,473 | 61 | 5.00 | |||||||||||||||||
Total loans | 51,551 | 951 | 3.71 | 50,323 | 1,256 | 5.03 | |||||||||||||||||
Mortgage-backed securities | 9,649 | 114 | 2.40 | 9,275 | 114 | 2.43 | |||||||||||||||||
Other investment securities | 2,837 | 34 | 2.47 | 2,748 | 33 | 2.40 | |||||||||||||||||
Total investment securities | 12,486 | 148 | 2.42 | 12,023 | 147 | 2.42 | |||||||||||||||||
Interest-bearing deposits with banks | 7,558 | 20 | 0.55 | 2,773 | 33 | 2.38 | |||||||||||||||||
Other short-term investments | 147 | 1 | 0.80 | 138 | 1 | 1.34 | |||||||||||||||||
Total earning assets | 71,742 | 1,120 | 3.15 | 65,257 | 1,437 | 4.43 | |||||||||||||||||
Cash and due from banks | 843 | 912 | |||||||||||||||||||||
Allowance for loan losses | (812) | (666) | |||||||||||||||||||||
Accrued income and other assets | 5,681 | 5,012 | |||||||||||||||||||||
Total assets | $ | 77,454 | $ | 70,515 | |||||||||||||||||||
Money market and interest-bearing checking deposits | $ | 25,486 | 57 | 0.45 | $ | 22,763 | 100 | 0.88 | |||||||||||||||
Savings deposits | 2,298 | — | 0.04 | 2,169 | — | 0.04 | |||||||||||||||||
Customer certificates of deposit | 2,900 | 19 | 1.32 | 2,258 | 11 | 0.96 | |||||||||||||||||
Other time deposits | 35 | — | 2.00 | 661 | 8 | 2.45 | |||||||||||||||||
Foreign office time deposits | 82 | — | 0.82 | 13 | — | 1.54 | |||||||||||||||||
Total interest-bearing deposits | 30,801 | 76 | 0.50 | 27,864 | 119 | 0.86 | |||||||||||||||||
Short-term borrowings | 519 | 1 | 0.34 | 576 | 7 | 2.45 | |||||||||||||||||
Medium- and long-term debt | 7,266 | 59 | 1.63 | 6,703 | 102 | 3.07 | |||||||||||||||||
Total interest-bearing sources | 38,586 | 136 | 0.71 | 35,143 | 228 | 1.30 | |||||||||||||||||
Noninterest-bearing deposits | 29,723 | 26,634 | |||||||||||||||||||||
Accrued expenses and other liabilities | 1,630 | 1,367 | |||||||||||||||||||||
Total shareholders' equity | 7,515 | 7,371 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 77,454 | $ | 70,515 | |||||||||||||||||||
Net interest income/rate spread | $ | 984 | 2.44 | $ | 1,209 | 3.13 | |||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.33 | 0.60 | |||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.77 | % | 3.73 | % | |||||||||||||||||||
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
June 30, 2020 | March 31, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a) | $ | 33,944 | $ | 271 | 2.99 | % | $ | 30,697 | $ | 314 | 4.07 | % | $ | 32,607 | $ | 405 | 5.00 | % | |||||||||||||||||
Real estate construction loans | 3,887 | 35 | 3.60 | 3,564 | 43 | 4.85 | 3,319 | 47 | 5.74 | ||||||||||||||||||||||||||
Commercial mortgage loans | 9,800 | 76 | 3.12 | 9,638 | 101 | 4.21 | 9,060 | 116 | 5.12 | ||||||||||||||||||||||||||
Lease financing | 592 | 5 | 3.34 | 582 | 5 | 3.63 | 546 | 3 | 2.32 | ||||||||||||||||||||||||||
International loans | 1,137 | 10 | 3.51 | 1,004 | 11 | 4.48 | 1,025 | 14 | 5.30 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,895 | 17 | 3.49 | 1,855 | 17 | 3.67 | 1,943 | 19 | 3.92 | ||||||||||||||||||||||||||
Consumer loans | 2,243 | 20 | 3.62 | 2,264 | 26 | 4.60 | 2,463 | 31 | 5.02 | ||||||||||||||||||||||||||
Total loans | 53,498 | 434 | 3.26 | 49,604 | 517 | 4.19 | 50,963 | 635 | 5.00 | ||||||||||||||||||||||||||
Mortgage-backed securities | 9,785 | 57 | 2.39 | 9,514 | 57 | 2.42 | 9,326 | 58 | 2.45 | ||||||||||||||||||||||||||
Other investment securities | 2,857 | 17 | 2.47 | 2,817 | 17 | 2.48 | 2,765 | 17 | 2.47 | ||||||||||||||||||||||||||
Total investment securities | 12,642 | 74 | 2.41 | 12,331 | 74 | 2.43 | 12,091 | 75 | 2.45 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks | 9,709 | 2 | 0.11 | 5,407 | 18 | 1.34 | 2,694 | 16 | 2.37 | ||||||||||||||||||||||||||
Other short-term investments | 140 | 1 | 0.48 | 154 | — | 1.09 | 142 | 1 | 1.34 | ||||||||||||||||||||||||||
Total earning assets | 75,989 | 511 | 2.71 | 67,496 | 609 | 3.64 | 65,890 | 727 | 4.42 | ||||||||||||||||||||||||||
Cash and due from banks | 848 | 838 | 900 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (932) | (693) | (660) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 5,739 | 5,624 | 5,122 | ||||||||||||||||||||||||||||||||
Total assets | $ | 81,644 | $ | 73,265 | $ | 71,252 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits | $ | 26,320 | 12 | 0.18 | $ | 24,654 | 45 | 0.73 | $ | 22,913 | 53 | 0.93 | |||||||||||||||||||||||
Savings deposits | 2,394 | — | 0.02 | 2,202 | — | 0.06 | 2,169 | — | 0.03 | ||||||||||||||||||||||||||
Customer certificates of deposit | 2,801 | 8 | 1.21 | 2,999 | 11 | 1.42 | 2,346 | 7 | 1.10 | ||||||||||||||||||||||||||
Other time deposits | — | — | — | 70 | — | 2.00 | 1,156 | 7 | 2.46 | ||||||||||||||||||||||||||
Foreign office time deposits | 81 | — | 0.34 | 82 | — | 1.30 | 13 | — | 1.54 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 31,596 | 20 | 0.26 | 30,007 | 56 | 0.76 | 28,597 | 67 | 0.94 | ||||||||||||||||||||||||||
Short-term borrowings | 882 | 1 | 0.25 | 157 | — | 0.82 | 927 | 6 | 2.46 | ||||||||||||||||||||||||||
Medium- and long-term debt | 7,206 | 19 | 1.09 | 7,324 | 40 | 2.15 | 6,712 | 51 | 3.05 | ||||||||||||||||||||||||||
Total interest-bearing sources | 39,684 | 40 | 0.41 | 37,488 | 96 | 1.03 | 36,236 | 124 | 1.37 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 32,686 | 26,761 | 26,398 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,682 | 1,578 | 1,333 | ||||||||||||||||||||||||||||||||
Total shareholders' equity | 7,592 | 7,438 | 7,285 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 81,644 | $ | 73,265 | $ | 71,252 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 471 | 2.30 | $ | 513 | 2.61 | $ | 603 | 3.05 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.20 | 0.45 | 0.61 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.50 | % | 3.06 | % | 3.66 | % | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | ||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||
Nonredeemable | Common Stock | Other | Total | |||||||||||||||||||||||
Preferred | Shares | Capital | Comprehensive | Retained | Treasury | Shareholders' | ||||||||||||||||||||
(in millions, except per share data) | Stock | Outstanding | Amount | Surplus | Income (Loss) | Earnings | Stock | Equity | ||||||||||||||||||
BALANCE AT MARCH 31, 2019 | $ | — | 155.4 | $ | 1,141 | $ | 2,159 | $ | (513) | $ | 8,979 | $ | (4,357) | $ | 7,409 | |||||||||||
Net income | — | — | — | — | — | 298 | — | 298 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 131 | — | — | 131 | ||||||||||||||||||
Cash dividends declared on common stock ($0.67 per share) | — | — | — | — | — | (100) | — | (100) | ||||||||||||||||||
Purchase of common stock | — | (5.7) | — | — | — | — | (425) | (425) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.1 | — | 1 | — | (1) | 2 | 2 | ||||||||||||||||||
Share-based compensation | — | — | — | 8 | — | — | — | 8 | ||||||||||||||||||
BALANCE AT JUNE 30, 2019 | $ | — | 149.8 | $ | 1,141 | $ | 2,168 | $ | (382) | $ | 9,176 | $ | (4,780) | $ | 7,323 | |||||||||||
BALANCE AT MARCH 31, 2020 | $ | — | 139.0 | $ | 1,141 | $ | 2,168 | $ | 174 | $ | 9,389 | $ | (5,470) | $ | 7,402 | |||||||||||
Net income | — | — | — | — | — | 113 | — | 113 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (16) | — | — | (16) | ||||||||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | — | (98) | — | (98) | ||||||||||||||||||
Purchase of common stock | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||||
Issuance of preferred stock | 395 | — | — | — | — | — | — | 395 | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||
Share-based compensation | — | — | — | 4 | — | — | — | 4 | ||||||||||||||||||
BALANCE AT JUNE 30, 2020 | $ | 395 | 139.0 | $ | 1,141 | $ | 2,173 | $ | 158 | $ | 9,404 | $ | (5,469) | $ | 7,802 | |||||||||||
BALANCE AT DECEMBER 31, 2018 | $ | — | 160.1 | $ | 1,141 | $ | 2,148 | $ | (609) | $ | 8,781 | $ | (3,954) | $ | 7,507 | |||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | (14) | — | (14) | ||||||||||||||||||
Net income | — | — | — | — | — | 637 | — | 637 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 227 | — | — | 227 | ||||||||||||||||||
Cash dividends declared on common stock ($1.34 per share) | — | — | — | — | — | (205) | — | (205) | ||||||||||||||||||
Purchase of common stock | — | (10.9) | — | — | — | — | (859) | (859) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.6 | — | (12) | — | (23) | 33 | (2) | ||||||||||||||||||
Share-based compensation | — | — | — | 32 | — | — | — | 32 | ||||||||||||||||||
BALANCE AT JUNE 30, 2019 | $ | — | 149.8 | $ | 1,141 | $ | 2,168 | $ | (382) | $ | 9,176 | $ | (4,780) | $ | 7,323 | |||||||||||
BALANCE AT DECEMBER 31, 2019 | $ | — | 142.1 | $ | 1,141 | $ | 2,174 | $ | (235) | $ | 9,538 | $ | (5,291) | $ | 7,327 | |||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | 13 | — | 13 | ||||||||||||||||||
Net income | — | — | — | — | — | 48 | — | 48 | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 393 | — | — | 393 | ||||||||||||||||||
Cash dividends declared on common stock ($1.36 per share) | — | — | — | — | — | (192) | — | (192) | ||||||||||||||||||
Purchase of common stock | — | (3.4) | — | — | — | — | (194) | (194) | ||||||||||||||||||
Issuance of preferred stock | 395 | — | — | — | — | — | — | 395 | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.3 | — | (13) | — | (3) | 16 | — | ||||||||||||||||||
Share-based compensation | — | — | — | 12 | — | — | — | 12 | ||||||||||||||||||
BALANCE AT JUNE 30, 2020 | $ | 395 | 139.0 | $ | 1,141 | $ | 2,173 | $ | 158 | $ | 9,404 | $ | (5,469) | $ | 7,802 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial | Retail | Wealth | ||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 402 | $ | 120 | $ | 40 | $ | (95) | $ | 4 | $ | 471 | |||||||||||||||||||||||
Provision for credit losses | 117 | 5 | 16 | — | — | 138 | |||||||||||||||||||||||||||||
Noninterest income | 144 | 24 | 66 | 11 | 2 | 247 | |||||||||||||||||||||||||||||
Noninterest expenses | 207 | 155 | 73 | 1 | 4 | 440 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 47 | (4) | 3 | (20) | 1 | 27 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 175 | $ | (12) | $ | 14 | $ | (65) | $ | 1 | $ | 113 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 48 | $ | 1 | $ | 1 | $ | — | $ | — | $ | 50 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 47,392 | $ | 3,306 | $ | 5,191 | $ | 14,500 | $ | 11,255 | $ | 81,644 | |||||||||||||||||||||||
Loans | 45,914 | 2,479 | 5,077 | — | 28 | 53,498 | |||||||||||||||||||||||||||||
Deposits | 36,318 | 22,647 | 4,217 | 950 | 150 | 64,282 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.49 | % | (0.21) | % | 1.00 | % | n/m | n/m | 0.55 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 37.67 | 107.15 | 69.86 | n/m | n/m | 61.14 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 380 | $ | 125 | $ | 41 | $ | (44) | $ | 11 | $ | 513 | |||||||||||||||||||||||
Provision for credit losses | 396 | 3 | 12 | — | — | 411 | |||||||||||||||||||||||||||||
Noninterest income | 127 | 28 | 70 | 14 | (2) | 237 | |||||||||||||||||||||||||||||
Noninterest expenses | 194 | 149 | 72 | — | 10 | 425 | |||||||||||||||||||||||||||||
(Benefit) provision for income taxes | (20) | — | 6 | (8) | 1 | (21) | |||||||||||||||||||||||||||||
Net (loss) income | $ | (63) | $ | 1 | $ | 21 | $ | (22) | $ | (2) | $ | (65) | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 83 | $ | 1 | $ | — | $ | — | $ | — | $ | 84 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 44,254 | $ | 2,864 | $ | 5,078 | $ | 14,285 | $ | 6,784 | $ | 73,265 | |||||||||||||||||||||||
Loans | 42,593 | 2,075 | 4,936 | — | — | 49,604 | |||||||||||||||||||||||||||||
Deposits | 30,230 | 21,195 | 4,025 | 1,136 | 182 | 56,768 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | (0.58) | % | 0.03 | % | 1.69 | % | n/m | n/m | (0.35) | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 38.47 | 96.03 | 64.28 | n/m | n/m | 56.57 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 420 | $ | 146 | $ | 46 | $ | (23) | $ | 14 | $ | 603 | |||||||||||||||||||||||
Provision for credit losses | 52 | 1 | (5) | — | (4) | 44 | |||||||||||||||||||||||||||||
Noninterest income | 136 | 33 | 68 | 13 | — | 250 | |||||||||||||||||||||||||||||
Noninterest expenses | 195 | 147 | 67 | — | 15 | 424 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 71 | 7 | 13 | (4) | — | 87 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 238 | $ | 24 | $ | 39 | $ | (6) | $ | 3 | $ | 298 | |||||||||||||||||||||||
Net credit-related charge-offs (recoveries) | $ | 35 | $ | — | $ | (2) | $ | — | $ | — | $ | 33 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 45,321 | $ | 2,839 | $ | 5,071 | $ | 13,907 | $ | 4,114 | $ | 71,252 | |||||||||||||||||||||||
Loans | 43,932 | 2,107 | 4,930 | — | (6) | 50,963 | |||||||||||||||||||||||||||||
Deposits | 28,251 | 20,649 | 3,740 | 2,174 | 181 | 54,995 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.11 | % | 0.44 | % | 3.10 | % | n/m | n/m | 1.68 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 34.98 | 82.26 | 58.99 | n/m | n/m | 49.65 |
MARKET SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Other | Finance | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2020 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 159 | $ | 176 | $ | 116 | $ | 111 | $ | (91) | $ | 471 | |||||||||||||||||||||||
Provision for credit losses | 40 | 51 | 31 | 16 | — | 138 | |||||||||||||||||||||||||||||
Noninterest income | 64 | 36 | 30 | 104 | 13 | 247 | |||||||||||||||||||||||||||||
Noninterest expenses | 139 | 103 | 91 | 102 | 5 | 440 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 8 | 13 | 4 | 21 | (19) | 27 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 36 | $ | 45 | $ | 20 | $ | 76 | $ | (64) | $ | 113 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | — | $ | 4 | $ | 46 | $ | — | $ | — | $ | 50 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 13,643 | $ | 18,948 | $ | 11,597 | $ | 11,732 | $ | 25,724 | $ | 81,644 | |||||||||||||||||||||||
Loans | 13,014 | 18,663 | 11,184 | 10,640 | (3) | 53,498 | |||||||||||||||||||||||||||||
Deposits | 23,460 | 18,463 | 10,209 | 11,050 | 1,100 | 64,282 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 0.59 | % | 0.93 | % | 0.68 | % | 2.53 | % | n/m | 0.55 | % | ||||||||||||||||||||||||
Efficiency ratio (b) | 62.08 | 48.61 | 61.88 | 47.41 | n/m | 61.14 | |||||||||||||||||||||||||||||
Other | Finance | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 163 | $ | 182 | $ | 115 | $ | 86 | $ | (33) | $ | 513 | |||||||||||||||||||||||
Provision for credit losses | 24 | 51 | 290 | 46 | — | 411 | |||||||||||||||||||||||||||||
Noninterest income | 72 | 36 | 30 | 87 | 12 | 237 | |||||||||||||||||||||||||||||
Noninterest expenses | 140 | 98 | 84 | 93 | 10 | 425 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 15 | 17 | (50) | 4 | (7) | (21) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 56 | $ | 52 | $ | (179) | $ | 30 | $ | (24) | $ | (65) | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 3 | $ | 11 | $ | 70 | $ | — | $ | — | $ | 84 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 12,899 | $ | 18,377 | $ | 11,154 | $ | 9,766 | $ | 21,069 | $ | 73,265 | |||||||||||||||||||||||
Loans | 12,191 | 18,027 | 10,566 | 8,820 | — | 49,604 | |||||||||||||||||||||||||||||
Deposits | 20,748 | 17,466 | 9,204 | 8,032 | 1,318 | 56,768 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.05 | % | 1.12 | % | (6.45) | % | 1.24 | % | n/m | (0.35) | % | ||||||||||||||||||||||||
Efficiency ratio (b) | 58.91 | 44.99 | 58.25 | 53.76 | n/m | 56.57 | |||||||||||||||||||||||||||||
Other | Finance | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2019 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 186 | $ | 208 | $ | 124 | $ | 94 | $ | (9) | $ | 603 | |||||||||||||||||||||||
Provision for credit losses | (10) | (4) | 49 | 13 | (4) | 44 | |||||||||||||||||||||||||||||
Noninterest income | 72 | 40 | 34 | 91 | 13 | 250 | |||||||||||||||||||||||||||||
Noninterest expenses | 134 | 99 | 84 | 92 | 15 | 424 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 30 | 39 | 6 | 16 | (4) | 87 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 104 | $ | 114 | $ | 19 | $ | 64 | $ | (3) | $ | 298 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | — | $ | 7 | $ | 26 | $ | — | $ | — | $ | 33 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 13,239 | $ | 19,108 | $ | 11,342 | $ | 9,542 | $ | 18,021 | $ | 71,252 | |||||||||||||||||||||||
Loans | 12,704 | 18,806 | 10,684 | 8,775 | (6) | 50,963 | |||||||||||||||||||||||||||||
Deposits | 19,816 | 16,314 | 8,668 | 7,842 | 2,355 | 54,995 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.01 | % | 2.38 | % | 0.69 | % | 2.75 | % | n/m | 1.68 | % | ||||||||||||||||||||||||
Efficiency ratio (b) | 52.04 | 40.07 | 52.86 | 49.36 | n/m | 49.65 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
June 30, | March 31, | June 30, | |||||||||
(dollar amounts in millions) | 2020 | 2020 | 2019 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 7,093 | $ | 6,654 | $ | 7,060 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 395 | — | — | ||||||||
Common equity tier 1 capital | $ | 6,698 | $ | 6,654 | $ | 7,060 | |||||
Risk-weighted assets | $ | 67,156 | $ | 69,874 | $ | 69,371 | |||||
Tier 1 capital ratio | 10.56 | % | 9.52 | % | 10.18 | % | |||||
Common equity tier 1 capital ratio | 9.97 | % | 9.52 | % | 10.18 | % | |||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 7,802 | $ | 7,402 | $ | 7,323 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 395 | — | — | ||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 3 | 3 | 4 | ||||||||
Tangible common equity | $ | 6,769 | $ | 6,764 | $ | 6,684 | |||||
Total assets | $ | 84,397 | $ | 76,337 | $ | 72,537 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 3 | 3 | 4 | ||||||||
Tangible assets | $ | 83,759 | $ | 75,699 | $ | 71,898 | |||||
Common equity ratio | 8.78 | % | 9.70 | % | 10.10 | % | |||||
Tangible common equity ratio | 8.08 | 8.93 | 9.30 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 7,407 | $ | 7,402 | $ | 7,323 | |||||
Tangible common equity | 6,769 | 6,764 | 6,684 | ||||||||
Shares of common stock outstanding (in millions) | 139 | 139 | 150 | ||||||||
Common shareholders' equity per share of common stock | $ | 53.28 | $ | 53.24 | $ | 48.89 | |||||
Tangible common equity per share of common stock | 48.69 | 48.65 | 44.61 |
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