------------ | ------------ | ------------ | ||||||
(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) | 1st Qtr '21 | 4th Qtr '20 | 1st Qtr '20 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 443 | $ | 469 | $ | 513 | |||||||||||
Provision for credit losses | (182) | (17) | 411 | ||||||||||||||
Noninterest income | 270 | 265 | 237 | ||||||||||||||
Noninterest expenses (a) | 447 | 465 | 417 | ||||||||||||||
Pre-tax income (loss) (a) | 448 | 286 | (78) | ||||||||||||||
Provision (benefit) for income taxes (a) | 98 | 65 | (19) | ||||||||||||||
Net income (loss) (a) | $ | 350 | $ | 221 | $ | (59) | |||||||||||
Diluted earnings (losses) per common share (a) | $ | 2.43 | $ | 1.53 | $ | (0.42) | |||||||||||
Average loans | 50,589 | 51,405 | 49,604 | ||||||||||||||
Average deposits | 71,392 | 70,243 | 56,768 | ||||||||||||||
Return on average assets (a) | 1.68 | % | 1.03 | % | (0.32) | % | |||||||||||
Return on average common shareholders' equity (a) | 18.04 | 11.44 | (3.18) | ||||||||||||||
Net interest margin | 2.29 | 2.36 | 3.06 | ||||||||||||||
Common equity Tier 1 capital ratio (b) | 11.09 | 10.34 | 9.52 | ||||||||||||||
Tier 1 capital ratio (b) | 11.70 | 10.93 | 9.52 | ||||||||||||||
Common equity ratio | 8.99 | 8.69 | 9.70 | ||||||||||||||
Common shareholders' equity per share of common stock | $ | 55.58 | $ | 55.01 | $ | 53.24 | |||||||||||
Tangible common equity per share of common stock (c) | 50.93 | 50.43 | 48.65 | ||||||||||||||
(dollar amounts in millions) | 1st Qtr '21 | 4th Qtr '20 | 1st Qtr '20 | ||||||||||||||
Net interest income | $ | 443 | $ | 469 | $ | 513 | |||||||||||
Net interest margin | 2.29 | % | 2.36 | % | 3.06 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 78,523 | $ | 79,557 | $ | 67,496 | |||||||||||
Total loans | 50,589 | 51,405 | 49,604 | ||||||||||||||
Total investment securities | 14,894 | 14,886 | 12,331 | ||||||||||||||
Federal Reserve Bank deposits | 12,507 | 12,828 | 5,147 | ||||||||||||||
Total deposits | 71,392 | 70,243 | 56,768 | ||||||||||||||
Total noninterest-bearing deposits | 37,361 | 36,758 | 26,761 | ||||||||||||||
Short-term borrowings | 3 | 3 | 157 | ||||||||||||||
Medium- and long-term debt | 3,609 | 5,741 | 7,324 |
(dollar amounts in millions) | 1st Qtr '21 | 4th Qtr '20 | 1st Qtr '20 | ||||||||||||||
Credit-related charge-offs | $ | 16 | $ | 39 | $ | 89 | |||||||||||
Recoveries | 13 | 10 | 5 | ||||||||||||||
Net credit-related charge-offs | 3 | 29 | 84 | ||||||||||||||
Net credit-related charge-offs/Average total loans | 0.03 | % | 0.22 | % | 0.68 | % | |||||||||||
Provision for credit losses | $ | (182) | $ | (17) | $ | 411 | |||||||||||
Nonperforming loans | 316 | 350 | 239 | ||||||||||||||
Nonperforming assets (NPAs) | 325 | 359 | 250 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.64 | % | 0.69 | % | 0.47 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 60 | $ | 45 | $ | 64 | |||||||||||
Allowance for loan losses | 777 | 948 | 916 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 30 | 44 | 62 | ||||||||||||||
Total allowance for credit losses | 807 | 992 | 978 | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.59 | 1.90 | 1.83 | ||||||||||||||
Allowance for credit losses/Period-end total loans excluding PPP loans | 1.72 | 2.03 | n/a | ||||||||||||||
Allowance for credit losses/Nonperforming loans | 2.6x | 2.8x | 4.1x |
Second Quarter 2021 Compared to First Quarter 2021 | Trends for Second Half of 2021 | |||||||||||||
Average loans | •Average loans (excluding PPP) reflect growth in several businesses, including Middle Market, offset by declines in Mortgage Banker Finance, National Dealer Services and Energy. In addition, decline in PPP loans due to forgiveness process. | •Solid average loan growth in nearly all business lines (excluding PPP), more than offset by forgiveness of the bulk of PPP loans. | ||||||||||||
Average deposits | •Average deposits to remain strong, benefiting from latest stimulus. | •Average deposits begin to wane as customers put cash to use. | ||||||||||||
Net interest income | •Increase in net interest income as lease residual adjustment ($17 million in first quarter) does not repeat. All other factors offset each other. | •Net interest income reflects higher loan volume (excluding PPP loans) offset by lower securities yields. In addition, PPP volume and accelerated fees decline. | ||||||||||||
Credit quality | •Strong credit quality continues, with provision reflecting economic conditions. | •Allowance moving towards pre-pandemic level. | ||||||||||||
Noninterest income | •Decrease in noninterest income as first quarter levels of derivatives, warrants and deferred compensation asset returns not expected to repeat, partly offset by increase in card, fiduciary and syndication fees. | •Noninterest income includes increases in service charges on deposit accounts, fiduciary income and commercial loan fees, partly offset by lower card fees from decreased stimulus activity. | ||||||||||||
Noninterest expenses | •Stable noninterest expenses reflect lower salaries and benefits (annual stock-based compensation and deferred compensation asset returns not expected to repeat, as well as seasonally lower payroll taxes partly offset by merit increases and one additional day in the second quarter) offset by increase in outside processing as well as seasonal increases in occupancy and advertising. | •Continued expense discipline offsets increase in technology investment. In addition, increases due to seasonal factors and revenue-related expenses. | ||||||||||||
Tax rate | •Income tax expense for full-year 2021 to be between 22 and 23 percent of pre-tax income, excluding discrete items. | |||||||||||||
Capital | •Resume share purchases; CET1 target of approximately 10 percent. |
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 | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(in millions, except per share data) | 2021 | 2020 | 2020 | ||||||||
PER COMMON SHARE AND COMMON STOCK DATA | |||||||||||
Diluted earnings (losses) per common share (a) | $ | 2.43 | $ | 1.53 | $ | (0.42) | |||||
Cash dividends declared | 0.68 | 0.68 | 0.68 | ||||||||
Average diluted shares (in thousands) | 141,072 | 140,159 | 140,554 | ||||||||
PERFORMANCE RATIOS | |||||||||||
Return on average common shareholders' equity (a) | 18.04 | % | 11.44 | % | (3.18) | % | |||||
Return on average assets (a) | 1.68 | 1.03 | (0.32) | ||||||||
Efficiency ratio (a), (b) | 62.55 | 63.26 | 55.58 | ||||||||
CAPITAL | |||||||||||
Common equity tier 1 capital (c), (d) | $ | 7,236 | $ | 6,919 | $ | 6,654 | |||||
Tier 1 capital (c), (d) | 7,630 | 7,313 | 6,654 | ||||||||
Risk-weighted assets (c) | 65,237 | 66,931 | 69,874 | ||||||||
Common equity tier 1 capital ratio (c), (d) | 11.09 | % | 10.34 | % | 9.52 | % | |||||
Tier 1 capital ratio (c), (d) | 11.70 | 10.93 | 9.52 | ||||||||
Total capital ratio (c) | 13.94 | 13.20 | 11.85 | ||||||||
Leverage ratio (c) | 9.08 | 8.63 | 9.12 | ||||||||
Common shareholders' equity per share of common stock | $ | 55.58 | $ | 55.01 | $ | 53.24 | |||||
Tangible common equity per share of common stock (d) | 50.93 | 50.43 | 48.65 | ||||||||
Common equity ratio | 8.99 | % | 8.69 | % | 9.70 | % | |||||
Tangible common equity ratio (d) | 8.30 | 8.02 | 8.93 | ||||||||
AVERAGE BALANCES | |||||||||||
Commercial loans | $ | 30,968 | $ | 31,713 | $ | 30,697 | |||||
Real estate construction loans | 4,137 | 4,157 | 3,564 | ||||||||
Commercial mortgage loans | 9,952 | 9,938 | 9,638 | ||||||||
Lease financing | 592 | 600 | 582 | ||||||||
International loans | 962 | 918 | 1,004 | ||||||||
Residential mortgage loans | 1,809 | 1,908 | 1,855 | ||||||||
Consumer loans | 2,169 | 2,171 | 2,264 | ||||||||
Total loans | 50,589 | 51,405 | 49,604 | ||||||||
Earning assets | 78,523 | 79,557 | 67,496 | ||||||||
Total assets | 84,559 | 85,328 | 73,265 | ||||||||
Noninterest-bearing deposits | 37,361 | 36,758 | 26,761 | ||||||||
Interest-bearing deposits | 34,031 | 33,485 | 30,007 | ||||||||
Total deposits | 71,392 | 70,243 | 56,768 | ||||||||
Common shareholders' equity | 7,746 | 7,501 | 7,438 | ||||||||
Total shareholders' equity | 8,140 | 7,895 | 7,438 | ||||||||
NET INTEREST INCOME | |||||||||||
Net interest income | $ | 443 | $ | 469 | $ | 513 | |||||
Net interest margin | 2.29 | % | 2.36 | % | 3.06 | % | |||||
CREDIT QUALITY | |||||||||||
Nonperforming assets | $ | 325 | $ | 359 | $ | 250 | |||||
Loans past due 90 days or more and still accruing | 60 | 45 | 64 | ||||||||
Net credit-related charge-offs | 3 | 29 | 84 | ||||||||
Allowance for loan losses | 777 | 948 | 916 | ||||||||
Allowance for credit losses on lending-related commitments | 30 | 44 | 62 | ||||||||
Total allowance for credit losses | 807 | 992 | 978 | ||||||||
Allowance for credit losses as a percentage of total loans | 1.59 | % | 1.90 | % | 1.83 | % | |||||
Net credit-related charge-offs as a percentage of average total loans | 0.03 | 0.22 | 0.68 | ||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.64 | 0.69 | 0.47 | ||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.6x | 2.8x | 4.1x | ||||||||
OTHER KEY INFORMATION | |||||||||||
Number of banking centers | 434 | 433 | 436 | ||||||||
Number of employees - full time equivalent | 7,653 | 7,681 | 7,753 |
CONSOLIDATED BALANCE SHEETS | |||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||
March 31, | December 31, | March 31, | |||||||||
(in millions, except share data) | 2021 | 2020 | 2020 | ||||||||
(unaudited) | (unaudited) | ||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 1,064 | $ | 1,031 | $ | 848 | |||||
Interest-bearing deposits with banks | 13,807 | 14,736 | 4,007 | ||||||||
Other short-term investments | 176 | 172 | 138 | ||||||||
Investment securities available-for-sale | 15,595 | 15,028 | 13,041 | ||||||||
Commercial loans | 30,886 | 32,753 | 34,249 | ||||||||
Real estate construction loans | 4,244 | 4,082 | 3,756 | ||||||||
Commercial mortgage loans | 9,993 | 9,912 | 9,698 | ||||||||
Lease financing | 577 | 594 | 584 | ||||||||
International loans | 990 | 926 | 1,035 | ||||||||
Residential mortgage loans | 1,799 | 1,830 | 1,821 | ||||||||
Consumer loans | 2,093 | 2,194 | 2,315 | ||||||||
Total loans | 50,582 | 52,291 | 53,458 | ||||||||
Allowance for loan losses | (777) | (948) | (916) | ||||||||
Net loans | 49,805 | 51,343 | 52,542 | ||||||||
Premises and equipment | 456 | 459 | 454 | ||||||||
Accrued income and other assets | 5,388 | 5,360 | 5,307 | ||||||||
Total assets | $ | 86,291 | $ | 88,129 | $ | 76,337 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Noninterest-bearing deposits | $ | 38,822 | $ | 39,420 | $ | 27,646 | |||||
Money market and interest-bearing checking deposits | 29,880 | 28,540 | 24,475 | ||||||||
Savings deposits | 2,934 | 2,710 | 2,258 | ||||||||
Customer certificates of deposit | 2,141 | 2,133 | 2,958 | ||||||||
Foreign office time deposits | 30 | 66 | 29 | ||||||||
Total interest-bearing deposits | 34,985 | 33,449 | 29,720 | ||||||||
Total deposits | 73,807 | 72,869 | 57,366 | ||||||||
Short-term borrowings | — | — | 2,263 | ||||||||
Accrued expenses and other liabilities | 1,480 | 1,482 | 1,872 | ||||||||
Medium- and long-term debt | 2,852 | 5,728 | 7,434 | ||||||||
Total liabilities | 78,139 | 80,079 | 68,935 | ||||||||
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: | |||||||||||
Authorized - 4,000 shares | |||||||||||
Issued - 4,000 shares at 3/31/2021 and 12/31/2020 | 394 | 394 | — | ||||||||
Common stock - $5 par value: | |||||||||||
Authorized - 325,000,000 shares | |||||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||||
Capital surplus | 2,183 | 2,185 | 2,168 | ||||||||
Accumulated other comprehensive (loss) income (a) | (105) | 64 | 87 | ||||||||
Retained earnings (a) | 9,975 | 9,727 | 9,476 | ||||||||
Less cost of common stock in treasury - 88,579,635 shares at 3/31/2021, 88,997,430 shares at 12/31/2020 and 89,127,359 shares at 3/31/2020 | (5,436) | (5,461) | (5,470) | ||||||||
Total shareholders' equity | 8,152 | 8,050 | 7,402 | ||||||||
Total liabilities and shareholders' equity | $ | 86,291 | $ | 88,129 | $ | 76,337 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
First | Fourth | Third | Second | First | First Quarter 2021 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Fourth Quarter 2020 | First Quarter 2020 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2021 | 2020 | 2020 | 2020 | 2020 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 386 | $ | 414 | $ | 408 | $ | 434 | $ | 517 | $ | (28) | (7) | % | $ | (131) | (25) | % | |||||||||||||||||
Interest on investment securities | 69 | 71 | 72 | 74 | 74 | (2) | (3) | (5) | (6) | ||||||||||||||||||||||||||
Interest on short-term investments | 4 | 4 | 4 | 3 | 18 | — | — | (14) | (82) | ||||||||||||||||||||||||||
Total interest income | 459 | 489 | 484 | 511 | 609 | (30) | (6) | (150) | (25) | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 7 | 10 | 15 | 20 | 56 | (3) | (27) | (49) | (88) | ||||||||||||||||||||||||||
Interest on short-term borrowings | — | — | — | 1 | — | — | — | — | — | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 9 | 10 | 11 | 19 | 40 | (1) | (15) | (31) | (77) | ||||||||||||||||||||||||||
Total interest expense | 16 | 20 | 26 | 40 | 96 | (4) | (21) | (80) | (84) | ||||||||||||||||||||||||||
Net interest income | 443 | 469 | 458 | 471 | 513 | (26) | (6) | (70) | (14) | ||||||||||||||||||||||||||
Provision for credit losses | (182) | (17) | 5 | 138 | 411 | (165) | n/m | (593) | n/m | ||||||||||||||||||||||||||
Net interest income after provision for credit losses | 625 | 486 | 453 | 333 | 102 | 139 | 29 | 523 | n/m | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 71 | 72 | 71 | 68 | 59 | (1) | (2) | 12 | 21 | ||||||||||||||||||||||||||
Fiduciary income | 53 | 52 | 51 | 52 | 54 | 1 | 4 | (1) | (1) | ||||||||||||||||||||||||||
Service charges on deposit accounts | 48 | 47 | 47 | 42 | 49 | 1 | 1 | (1) | (3) | ||||||||||||||||||||||||||
Derivative income (a) | 30 | 19 | 9 | 19 | 20 | 11 | 59 | 10 | 50 | ||||||||||||||||||||||||||
Commercial lending fees | 18 | 24 | 19 | 17 | 17 | (6) | (24) | 1 | 4 | ||||||||||||||||||||||||||
Bank-owned life insurance | 11 | 11 | 12 | 9 | 12 | — | — | (1) | (1) | ||||||||||||||||||||||||||
Letter of credit fees | 10 | 10 | 9 | 9 | 9 | — | — | 1 | 5 | ||||||||||||||||||||||||||
Brokerage fees | 4 | 4 | 5 | 5 | 7 | — | — | (3) | (40) | ||||||||||||||||||||||||||
Net securities gains (losses) | — | — | — | 1 | (1) | — | — | 1 | n/m | ||||||||||||||||||||||||||
Other noninterest income (a) | 25 | 26 | 29 | 25 | 11 | (1) | (6) | 14 | n/m | ||||||||||||||||||||||||||
Total noninterest income | 270 | 265 | 252 | 247 | 237 | 5 | 2 | 33 | 14 | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 282 | 271 | 257 | 249 | 242 | 11 | 4 | 40 | 16 | ||||||||||||||||||||||||||
Outside processing fee expense | 64 | 65 | 58 | 62 | 57 | (1) | (2) | 7 | 12 | ||||||||||||||||||||||||||
Occupancy expense | 39 | 42 | 40 | 37 | 37 | (3) | (8) | 2 | 4 | ||||||||||||||||||||||||||
Software expense | 39 | 39 | 39 | 39 | 37 | — | — | 2 | 3 | ||||||||||||||||||||||||||
Equipment expense | 12 | 13 | 12 | 12 | 12 | (1) | (2) | — | — | ||||||||||||||||||||||||||
Advertising expense | 6 | 11 | 9 | 8 | 7 | (5) | (39) | (1) | (9) | ||||||||||||||||||||||||||
FDIC insurance expense | 6 | 9 | 8 | 8 | 8 | (3) | (30) | (2) | (18) | ||||||||||||||||||||||||||
Other noninterest expenses (a) | (1) | 15 | 15 | 19 | 17 | (16) | n/m | (18) | n/m | ||||||||||||||||||||||||||
Total noninterest expenses (a) | 447 | 465 | 438 | 434 | 417 | (18) | (4) | 30 | 7 | ||||||||||||||||||||||||||
Income (loss) before income taxes (a) | 448 | 286 | 267 | 146 | (78) | 162 | 57 | 526 | n/m | ||||||||||||||||||||||||||
Provision (benefit) for income taxes (a) | 98 | 65 | 50 | 28 | (19) | 33 | 52 | 117 | n/m | ||||||||||||||||||||||||||
NET INCOME (LOSS) (a) | 350 | 221 | 217 | 118 | (59) | 129 | 58 | 409 | n/m | ||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Income allocated to participating securities | 1 | 1 | — | 1 | — | — | — | 1 | n/m | ||||||||||||||||||||||||||
Preferred stock dividends | 6 | 5 | 8 | — | — | 1 | 1 | 6 | n/m | ||||||||||||||||||||||||||
Net income (loss) attributable to common shares (a) | $ | 343 | $ | 215 | $ | 209 | $ | 117 | $ | (59) | $ | 128 | 60 | % | $ | 402 | n/m | ||||||||||||||||||
Earnings (losses) per common share: | |||||||||||||||||||||||||||||||||||
Basic (a) | $ | 2.46 | $ | 1.54 | $ | 1.49 | $ | 0.85 | $ | (0.42) | $ | 0.92 | 59 | % | $ | 2.88 | n/m | ||||||||||||||||||
Diluted (a) | 2.43 | 1.53 | 1.48 | 0.84 | (0.42) | 0.90 | 59 | 2.85 | n/m | ||||||||||||||||||||||||||
Comprehensive income | 181 | 267 | 169 | 97 | 344 | (86) | (32) | (163) | (47) | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 95 | 94 | 94 | 96 | 94 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||
Cash dividends declared per common share | 0.68 | 0.68 | 0.68 | 0.68 | 0.68 | — | — | — | — |
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Balance at beginning of period: | ||||||||||||||||||||
Allowance for loan losses | $ | 948 | $ | 978 | $ | 1,007 | $ | 916 | $ | 637 | ||||||||||
Allowance for credit losses on lending-related commitments | 44 | 60 | 59 | 62 | 31 | |||||||||||||||
Allowance for credit losses | 992 | 1,038 | 1,066 | 978 | 668 | |||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | (17) | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 14 | 37 | 53 | 55 | 87 | |||||||||||||||
Commercial mortgage | 1 | — | — | 1 | — | |||||||||||||||
Consumer | 1 | 2 | — | 1 | 2 | |||||||||||||||
Total loan charge-offs | 16 | 39 | 53 | 57 | 89 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 11 | 9 | 17 | 5 | 3 | |||||||||||||||
Commercial mortgage | 1 | — | 1 | 1 | 2 | |||||||||||||||
Consumer | 1 | 1 | 2 | 1 | — | |||||||||||||||
Total recoveries | 13 | 10 | 20 | 7 | 5 | |||||||||||||||
Net loan charge-offs | 3 | 29 | 33 | 50 | 84 | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | (168) | (1) | 4 | 141 | 380 | |||||||||||||||
Provision for credit losses on lending-related commitments | (14) | (16) | 1 | (3) | 31 | |||||||||||||||
Provision for credit losses | (182) | (17) | 5 | 138 | 411 | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 777 | 948 | 978 | 1,007 | 916 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 30 | 44 | 60 | 59 | 62 | |||||||||||||||
Allowance for credit losses | $ | 807 | $ | 992 | $ | 1,038 | $ | 1,066 | $ | 978 | ||||||||||
Allowance for loan losses as a percentage of total loans | 1.54 | % | 1.81 | % | 1.87 | % | 1.88 | % | 1.71 | % | ||||||||||
Allowance for loan losses as a percentage of total loans excluding PPP loans | 1.66 | 1.94 | 2.01 | 2.03 | n/a | |||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.59 | 1.90 | 1.98 | 1.99 | 1.83 | |||||||||||||||
Allowance for credit losses as a percentage of total loans excluding PPP loans | 1.72 | 2.03 | 2.14 | 2.15 | n/a | |||||||||||||||
Net loan charge-offs as a percentage of average total loans | 0.03 | 0.22 | 0.26 | 0.37 | 0.68 | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 230 | $ | 252 | $ | 241 | $ | 200 | $ | 173 | ||||||||||
Real estate construction | 1 | 1 | — | — | — | |||||||||||||||
Commercial mortgage | 34 | 29 | 20 | 21 | 19 | |||||||||||||||
Lease financing | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Total nonaccrual business loans | 266 | 283 | 262 | 222 | 193 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 33 | 47 | 40 | 24 | 20 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 15 | 17 | 20 | 21 | 22 | |||||||||||||||
Total nonaccrual retail loans | 48 | 64 | 60 | 45 | 42 | |||||||||||||||
Total nonaccrual loans | 314 | 347 | 322 | 267 | 235 | |||||||||||||||
Reduced-rate loans | 2 | 3 | 3 | 4 | 4 | |||||||||||||||
Total nonperforming loans | 316 | 350 | 325 | 271 | 239 | |||||||||||||||
Foreclosed property | 8 | 8 | 10 | 11 | 11 | |||||||||||||||
Other repossessed assets | 1 | 1 | — | — | — | |||||||||||||||
Total nonperforming assets | $ | 325 | $ | 359 | $ | 335 | $ | 282 | $ | 250 | ||||||||||
Nonperforming loans as a percentage of total loans | 0.63 | % | 0.67 | % | 0.62 | % | 0.51 | % | 0.45 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.64 | 0.69 | 0.64 | 0.53 | 0.47 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.6x | 2.8x | 3.2x | 3.9x | 4.1x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 60 | $ | 45 | $ | 29 | $ | 41 | $ | 64 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 347 | $ | 322 | $ | 267 | $ | 235 | $ | 199 | ||||||||||
Loans transferred to nonaccrual (a) | 61 | 88 | 161 | 96 | 137 | |||||||||||||||
Nonaccrual loan gross charge-offs | (16) | (39) | (53) | (57) | (89) | |||||||||||||||
Loans transferred to accrual status (a) | (17) | (3) | — | — | — | |||||||||||||||
Nonaccrual loans sold | (25) | — | (14) | — | — | |||||||||||||||
Payments/other (b) | (36) | (21) | (39) | (7) | (12) | |||||||||||||||
Nonaccrual loans at end of period | $ | 314 | $ | 347 | $ | 322 | $ | 267 | $ | 235 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a) | $ | 30,968 | $ | 254 | 3.33 | % | $ | 31,713 | $ | 259 | 3.26 | % | $ | 30,697 | $ | 314 | 4.11 | % | |||||||||||||||||
Real estate construction loans | 4,137 | 34 | 3.37 | 4,157 | 35 | 3.40 | 3,564 | 43 | 4.85 | ||||||||||||||||||||||||||
Commercial mortgage loans | 9,952 | 70 | 2.85 | 9,938 | 72 | 2.86 | 9,638 | 101 | 4.21 | ||||||||||||||||||||||||||
Lease financing (b) | 592 | (12) | (8.44) | 600 | 5 | 3.56 | 582 | 5 | 3.63 | ||||||||||||||||||||||||||
International loans | 962 | 8 | 3.17 | 918 | 7 | 3.23 | 1,004 | 11 | 4.48 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,809 | 14 | 3.13 | 1,908 | 16 | 3.24 | 1,855 | 17 | 3.67 | ||||||||||||||||||||||||||
Consumer loans | 2,169 | 18 | 3.40 | 2,171 | 20 | 3.50 | 2,264 | 26 | 4.60 | ||||||||||||||||||||||||||
Total loans | 50,589 | 386 | 3.09 | 51,405 | 414 | 3.20 | 49,604 | 517 | 4.19 | ||||||||||||||||||||||||||
Mortgage-backed securities (c) | 10,257 | 51 | 2.03 | 10,220 | 53 | 2.13 | 9,514 | 57 | 2.42 | ||||||||||||||||||||||||||
U.S. Treasury securities (d) | 4,637 | 18 | 1.58 | 4,666 | 18 | 1.57 | 2,817 | 17 | 2.48 | ||||||||||||||||||||||||||
Total investment securities | 14,894 | 69 | 1.89 | 14,886 | 71 | 1.95 | 12,331 | 74 | 2.43 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks | 12,869 | 4 | 0.10 | 13,105 | 4 | 0.10 | 5,407 | 18 | 1.34 | ||||||||||||||||||||||||||
Other short-term investments | 171 | — | 0.28 | 161 | — | 0.99 | 154 | — | 1.09 | ||||||||||||||||||||||||||
Total earning assets | 78,523 | 459 | 2.37 | 79,557 | 489 | 2.46 | 67,496 | 609 | 3.64 | ||||||||||||||||||||||||||
Cash and due from banks | 970 | 915 | 838 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (915) | (972) | (693) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 5,981 | 5,828 | 5,624 | ||||||||||||||||||||||||||||||||
Total assets | $ | 84,559 | $ | 85,328 | $ | 73,265 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits | $ | 29,012 | 6 | 0.08 | $ | 28,521 | 7 | 0.10 | $ | 24,654 | 45 | 0.73 | |||||||||||||||||||||||
Savings deposits | 2,800 | — | 0.02 | 2,657 | — | 0.02 | 2,202 | — | 0.06 | ||||||||||||||||||||||||||
Customer certificates of deposit | 2,155 | 1 | 0.24 | 2,215 | 2 | 0.43 | 2,999 | 11 | 1.42 | ||||||||||||||||||||||||||
Other time deposits | — | — | — | — | — | — | 70 | — | 2.00 | ||||||||||||||||||||||||||
Foreign office time deposits | 64 | — | 0.09 | 92 | 1 | 0.09 | 82 | — | 1.30 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 34,031 | 7 | 0.08 | 33,485 | 10 | 0.11 | 30,007 | 56 | 0.76 | ||||||||||||||||||||||||||
Short-term borrowings | 3 | — | 0.05 | 3 | — | 0.06 | 157 | — | 0.82 | ||||||||||||||||||||||||||
Medium- and long-term debt | 3,609 | 9 | 0.99 | 5,741 | 10 | 0.72 | 7,324 | 40 | 2.15 | ||||||||||||||||||||||||||
Total interest-bearing sources | 37,643 | 16 | 0.17 | 39,229 | 20 | 0.20 | 37,488 | 96 | 1.03 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 37,361 | 36,758 | 26,761 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,415 | 1,446 | 1,578 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 8,140 | 7,895 | 7,438 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 84,559 | $ | 85,328 | $ | 73,265 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 443 | 2.20 | $ | 469 | 2.26 | $ | 513 | 2.61 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.09 | 0.10 | 0.45 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.29 | % | 2.36 | % | 3.06 | % |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | ||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||
Nonredeemable | Common Stock | Other | Retained | Total | ||||||||||||||||||||||
Preferred | Shares | Capital | Comprehensive | Earnings | Treasury | Shareholders' | ||||||||||||||||||||
(in millions, except per share data) | Stock | Outstanding | Amount | Surplus | Income (Loss) (a) | (a) | Stock | Equity | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2019 | $ | — | 142.1 | $ | 1,141 | $ | 2,174 | $ | (316) | $ | 9,619 | $ | (5,291) | $ | 7,327 | |||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | — | 13 | — | 13 | ||||||||||||||||||
Net loss | — | — | — | — | — | (59) | — | (59) | ||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 403 | — | — | 403 | ||||||||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | — | (94) | — | (94) | ||||||||||||||||||
Purchase of common stock | — | (3.4) | — | — | — | — | (195) | (195) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.3 | — | (14) | — | (3) | 16 | (1) | ||||||||||||||||||
Share-based compensation | — | — | — | 8 | — | — | — | 8 | ||||||||||||||||||
BALANCE AT MARCH 31, 2020 | $ | — | 139.0 | $ | 1,141 | $ | 2,168 | $ | 87 | $ | 9,476 | $ | (5,470) | $ | 7,402 | |||||||||||
BALANCE AT DECEMBER 31, 2020 | $ | 394 | 139.2 | $ | 1,141 | $ | 2,185 | $ | 64 | $ | 9,727 | $ | (5,461) | $ | 8,050 | |||||||||||
Net income | — | — | — | — | — | 350 | — | 350 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (169) | — | — | (169) | ||||||||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | — | (95) | — | (95) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (6) | — | (6) | ||||||||||||||||||
Purchase of common stock | — | (0.1) | — | — | — | — | (3) | (3) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.5 | — | (24) | — | (1) | 28 | 3 | ||||||||||||||||||
Share-based compensation | — | — | — | 22 | — | — | — | 22 | ||||||||||||||||||
BALANCE AT MARCH 31, 2021 | $ | 394 | 139.6 | $ | 1,141 | $ | 2,183 | $ | (105) | $ | 9,975 | $ | (5,436) | $ | 8,152 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial | Retail | Wealth | ||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 382 | $ | 133 | $ | 42 | $ | (117) | $ | 3 | $ | 443 | |||||||||||||||||||||||
Provision for credit losses | (177) | 6 | (12) | — | 1 | (182) | |||||||||||||||||||||||||||||
Noninterest income | 159 | 28 | 67 | 12 | 4 | 270 | |||||||||||||||||||||||||||||
Noninterest expenses | 215 | 149 | 76 | — | 7 | 447 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 113 | — | 10 | (25) | — | 98 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 390 | $ | 6 | $ | 35 | $ | (80) | $ | (1) | $ | 350 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 2 | $ | 1 | $ | — | $ | — | $ | — | $ | 3 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 44,448 | $ | 3,463 | $ | 5,162 | $ | 16,959 | $ | 14,527 | $ | 84,559 | |||||||||||||||||||||||
Loans | 42,904 | 2,620 | 5,059 | — | 6 | 50,589 | |||||||||||||||||||||||||||||
Deposits | 41,102 | 24,322 | 4,826 | 985 | 157 | 71,392 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 3.56 | % | 0.11 | % | 2.72 | % | n/m | n/m | 1.68 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 39.66 | 91.68 | 69.84 | n/m | n/m | 62.55 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2020 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 413 | $ | 130 | $ | 44 | $ | (120) | $ | 2 | $ | 469 | |||||||||||||||||||||||
Provision for credit losses | (32) | 1 | 14 | — | — | (17) | |||||||||||||||||||||||||||||
Noninterest income | 149 | 30 | 63 | 14 | 9 | 265 | |||||||||||||||||||||||||||||
Noninterest expenses (c) | 218 | 158 | 79 | — | 10 | 465 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes (c) | 88 | — | 3 | (24) | (2) | 65 | |||||||||||||||||||||||||||||
Net income (loss) (c) | $ | 288 | $ | 1 | $ | 11 | $ | (82) | $ | 3 | $ | 221 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 25 | $ | — | $ | 4 | $ | — | $ | — | $ | 29 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 45,117 | $ | 3,457 | $ | 5,181 | $ | 16,957 | $ | 14,616 | $ | 85,328 | |||||||||||||||||||||||
Loans | 43,722 | 2,628 | 5,073 | — | (18) | 51,405 | |||||||||||||||||||||||||||||
Deposits | 40,256 | 23,869 | 4,919 | 1,013 | 186 | 70,243 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) (c) | 2.60 | % | 0.01 | % | 0.77 | % | n/m | n/m | 1.03 | % | |||||||||||||||||||||||||
Efficiency ratio (b) (c) | 38.70 | 99.36 | 73.51 | n/m | n/m | 63.26 | |||||||||||||||||||||||||||||
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 (c) | 192 | 145 | 70 | — | 10 | 417 | |||||||||||||||||||||||||||||
(Benefit) provision for income taxes (c) | (19) | 1 | 6 | (8) | 1 | (19) | |||||||||||||||||||||||||||||
Net (loss) income (c) | $ | (62) | $ | 4 | $ | 23 | $ | (22) | $ | (2) | $ | (59) | |||||||||||||||||||||||
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) (c) | (0.56) | % | 0.07 | % | 1.81 | % | n/m | n/m | (0.32) | % | |||||||||||||||||||||||||
Efficiency ratio (b) (c) | 37.95 | 94.07 | 62.68 | n/m | n/m | 55.58 |
MARKET SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Other | Finance | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 154 | $ | 172 | $ | 114 | $ | 117 | $ | (114) | $ | 443 | |||||||||||||||||||||||
Provision for credit losses | (28) | (54) | (86) | (15) | 1 | (182) | |||||||||||||||||||||||||||||
Noninterest income | 66 | 48 | 36 | 104 | 16 | 270 | |||||||||||||||||||||||||||||
Noninterest expenses | 135 | 104 | 88 | 113 | 7 | 447 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 22 | 40 | 31 | 30 | (25) | 98 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 91 | $ | 130 | $ | 117 | $ | 93 | $ | (81) | $ | 350 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | — | $ | 1 | $ | 2 | $ | — | $ | — | $ | 3 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 12,916 | $ | 18,143 | $ | 10,668 | $ | 11,348 | $ | 31,484 | $ | 84,559 | |||||||||||||||||||||||
Loans | 12,247 | 17,946 | 10,161 | 10,231 | 4 | 50,589 | |||||||||||||||||||||||||||||
Deposits | 25,683 | 19,968 | 10,783 | 13,816 | 1,142 | 71,392 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 1.40 | % | 2.51 | % | 3.88 | % | 2.54 | % | n/m | 1.68 | % | ||||||||||||||||||||||||
Efficiency ratio (b) | 60.86 | 47.09 | 58.85 | 51.18 | n/m | 62.55 | |||||||||||||||||||||||||||||
Other | Finance | ||||||||||||||||||||||||||||||||||
Three Months Ended December 31, 2020 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 170 | $ | 179 | $ | 117 | $ | 121 | $ | (118) | $ | 469 | |||||||||||||||||||||||
Provision for credit losses | 12 | 21 | (26) | (24) | — | (17) | |||||||||||||||||||||||||||||
Noninterest income | 71 | 39 | 32 | 100 | 23 | 265 | |||||||||||||||||||||||||||||
Noninterest expenses (c) | 139 | 105 | 95 | 116 | 10 | 465 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes (c) | 18 | 22 | 20 | 31 | (26) | 65 | |||||||||||||||||||||||||||||
Net income (loss) (c) | $ | 72 | $ | 70 | $ | 60 | $ | 98 | $ | (79) | $ | 221 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 5 | $ | — | $ | 24 | $ | — | $ | — | $ | 29 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 12,899 | $ | 18,216 | $ | 11,039 | $ | 11,601 | $ | 31,573 | $ | 85,328 | |||||||||||||||||||||||
Loans | 12,225 | 18,030 | 10,583 | 10,585 | (18) | 51,405 | |||||||||||||||||||||||||||||
Deposits | 25,003 | 20,226 | 10,759 | 13,056 | 1,199 | 70,243 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a), (c) | 1.12 | % | 1.30 | % | 2.05 | % | 2.84 | % | n/m | 1.03 | % | ||||||||||||||||||||||||
Efficiency ratio (b), (c) | 57.67 | 48.52 | 63.22 | 52.48 | n/m | 63.26 | |||||||||||||||||||||||||||||
Other | Finance | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | Michigan | California | Texas | Markets | & Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 163 | $ | 176 | $ | 115 | $ | 92 | $ | (33) | $ | 513 | |||||||||||||||||||||||
Provision for credit losses | 24 | 46 | 290 | 51 | — | 411 | |||||||||||||||||||||||||||||
Noninterest income | 72 | 33 | 30 | 90 | 12 | 237 | |||||||||||||||||||||||||||||
Noninterest expenses (c) | 137 | 93 | 83 | 94 | 10 | 417 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes (c) | 16 | 17 | (50) | 5 | (7) | (19) | |||||||||||||||||||||||||||||
Net income (loss) (c) | $ | 58 | $ | 53 | $ | (178) | $ | 32 | $ | (24) | $ | (59) | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 3 | $ | 8 | $ | 70 | $ | 3 | $ | — | $ | 84 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 12,895 | $ | 18,007 | $ | 11,154 | $ | 10,140 | $ | 21,069 | $ | 73,265 | |||||||||||||||||||||||
Loans | 12,191 | 17,742 | 10,566 | 9,105 | — | 49,604 | |||||||||||||||||||||||||||||
Deposits | 20,748 | 16,627 | 9,204 | 8,871 | 1,318 | 56,768 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a), (c) | 1.10 | % | 1.19 | % | (6.47) | % | 1.27 | % | n/m | (0.32) | % | ||||||||||||||||||||||||
Efficiency ratio (b), (c) | 57.92 | 44.60 | 57.38 | 51.69 | n/m | 55.58 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
March 31, | December 31, | March 31, | |||||||||
(dollar amounts in millions) | 2021 | 2020 | 2020 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 7,630 | $ | 7,313 | $ | 6,654 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | — | ||||||||
Common equity tier 1 capital | $ | 7,236 | $ | 6,919 | $ | 6,654 | |||||
Risk-weighted assets | $ | 65,237 | $ | 66,931 | $ | 69,874 | |||||
Tier 1 capital ratio | 11.70 | % | 10.93 | % | 9.52 | % | |||||
Common equity tier 1 capital ratio | 11.09 | 10.34 | 9.52 | ||||||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 8,152 | $ | 8,050 | $ | 7,402 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | — | ||||||||
Common shareholders' equity | $ | 7,758 | $ | 7,656 | $ | 7,402 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets (b) | 14 | 1 | 3 | ||||||||
Tangible common equity | $ | 7,109 | $ | 7,020 | $ | 6,764 | |||||
Total assets | $ | 86,291 | $ | 88,129 | $ | 76,337 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets (b) | 14 | 1 | 3 | ||||||||
Tangible assets | $ | 85,642 | $ | 87,493 | $ | 75,699 | |||||
Common equity ratio | 8.99 | % | 8.69 | % | 9.70 | % | |||||
Tangible common equity ratio | 8.30 | 8.02 | 8.93 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 7,758 | $ | 7,656 | $ | 7,402 | |||||
Tangible common equity | 7,109 | 7,020 | 6,764 | ||||||||
Shares of common stock outstanding (in millions) | 140 | 139 | 139 | ||||||||
Common shareholders' equity per share of common stock | $ | 55.58 | $ | 55.01 | $ | 53.24 | |||||
Tangible common equity per share of common stock | 50.93 | 50.43 | 48.65 |
RECONCILIATIONS OF PREVIOUSLY REPORTED BALANCES (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||
(in millions, except per share data) | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||
Other noninterest expenses: | |||||||||||||||||||||||
As reported | $ | 23 | $ | 23 | $ | 25 | $ | 25 | |||||||||||||||
Effect of accounting change | (8) | (8) | (6) | (8) | |||||||||||||||||||
Recast other noninterest expense | $ | 15 | $ | 15 | $ | 19 | $ | 17 | |||||||||||||||
Provision (benefit) for income taxes: | |||||||||||||||||||||||
As reported | $ | 63 | $ | 48 | $ | 27 | $ | (21) | |||||||||||||||
Effect of accounting change | 2 | 2 | 1 | 2 | |||||||||||||||||||
Recast provision (benefit) for income taxes | $ | 65 | $ | 50 | $ | 28 | $ | (19) | |||||||||||||||
Net income (loss): | |||||||||||||||||||||||
As reported | $ | 215 | $ | 211 | $ | 113 | $ | (65) | |||||||||||||||
Effect of accounting change | 6 | 6 | 5 | 6 | |||||||||||||||||||
Recast net income (loss) | $ | 221 | $ | 217 | $ | 118 | $ | (59) | |||||||||||||||
Basic earnings (losses) per common share: | |||||||||||||||||||||||
As reported | $ | 1.50 | $ | 1.45 | $ | 0.81 | $ | (0.46) | |||||||||||||||
Effect of accounting change | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||||||
Recast basic earnings (losses) per common share | $ | 1.54 | $ | 1.49 | $ | 0.85 | $ | (0.42) | |||||||||||||||
Diluted earnings (losses) per common share: | |||||||||||||||||||||||
As reported | $ | 1.49 | $ | 1.44 | $ | 0.80 | $ | (0.46) | |||||||||||||||
Effect of accounting change | 0.04 | 0.04 | 0.04 | 0.04 | |||||||||||||||||||
Recast diluted earnings (losses) per common share | $ | 1.53 | $ | 1.48 | $ | 0.84 | $ | (0.42) | |||||||||||||||
December 31, | March 31, | December 31, | |||||||||||||||
(in millions) | 2020 | 2020 | 2019 | ||||||||||||||
Accumulated other comprehensive income (loss): | |||||||||||||||||
As reported | $ | 168 | $ | 174 | $ | (235) | |||||||||||
Effect of accounting change | (104) | $ | (87) | (81) | |||||||||||||
Recast accumulated other comprehensive income (loss) | $ | 64 | $ | 87 | $ | (316) | |||||||||||
Retained earnings: | |||||||||||||||||
As reported | $ | 9,623 | $ | 9,389 | $ | 9,538 | |||||||||||
Effect of accounting change | 104 | $ | 87 | 81 | |||||||||||||
Recast retained earnings | $ | 9,727 | $ | 9,476 | $ | 9,619 |
RECONCILIATIONS OF PREVIOUSLY REPORTED BALANCES (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||||
(in millions) | 2020 | 2020 | 2020 | 2020 | |||||||||||||||||||
Foreign exchange income (as reported) | $ | 11 | $ | 9 | $ | 9 | $ | 11 | |||||||||||||||
Customer derivative income (component of other noninterest income) | 8 | — | 10 | 9 | |||||||||||||||||||
Derivative income | $ | 19 | $ | 9 | $ | 19 | $ | 20 | |||||||||||||||
Other noninterest income (as reported) | $ | 34 | $ | 29 | $ | 35 | $ | 20 | |||||||||||||||
Less: Customer derivative income | 8 | — | 10 | 9 | |||||||||||||||||||
Other noninterest income (as adjusted) | $ | 26 | $ | 29 | $ | 25 | $ | 11 |
J;]Q+;'[P5 "OTQ_6BG5QM>+J0:MV"<,
M/3:A):F7JVA7NC.OVA0T;'"RIRI]O8U%I>D7>KW!BM4'R\N['"K]:Z75_%^G
MZAI\UH+.9Q(N SD+@]CW[UEZ%XDDT>!K>.R2;>^XG<0Q/I7;"KB71;>_K4
MYY0HJIO[IJ1^ &*_O=1 /HL6?US1)X!D"DPZ@K-V#Q8'YY-3W6I^(=6CC33]
M.FLQ_&[$#/T+ <5O:+!J5O8[-3G2:;=E2IR0/0G%>?4Q.*IQYI35^VESJC1H
MS=E%^NIYCJ-A WG=^%2_4U"J%R>U?0'EL1R"
MV1TI :'4*V*!BF(,TX$BFG%*"* #-%!.*,T +FBDI10 ZBFTN>: ' TM-I ]+SVQ5N.PD;F1@OZFK4=G"@&5W'U-:7,[HRP&)P!D^U.\F7KY;8^AK9"JOW
M0 /84ZD+F,(J?2@#CIS6S+"DRX8<^O>LJ6-HI61NU,:=R/H.E)R1T-*>HI2>
M*0Q._0T ^QI]% #>,TORT1J7.%4L<]A5E+&5^J ?4T 0;4[&FDBK@TU\9+KF
MH9+.:/G;N'^R:!7(D//UI68 \&
M;TIW '>G87T_6F,>.#0,83S1244 /7]*2E!X]J .] ,XI0#1G'2IH(Y9B0G
M3N2* (PI-/\ +.,DX^M:D4*1*!@%NY(JM?1QJ P #DTA7*?R@+U/K1\I;I3-
MW YI2>:=ADF$QW_*D(&.A_*GQV\[X(4@>IXISVTR#)7(]J5A7*_K2BD'?ZT
MXH&*?UHS1UI:0!111GBF 4H-)12 <::.E&:5>E "T444 (:!]*7&:,T %+BD
MS1F@!:*?%"\S84?4]A5^*TBC'(#-ZF@39FT5;O88XU5DGH*J4 @I.
MII-AJ\]Q$ /]"@_-_P#XJCSHN/\ 0[?\W_\ BJ.9]@LNY1VFDVGTJ^9XQ_RY
MP?F__P 531
2!6Q\@/&2O/N3F@
M#Z-M/''A:^G6"W\0:<\K'"K]H4%CZ#/6M^OFC4?"'@[7I+1?!GB.W@F;*S0:
MM*T7TVDIR>O S7>:YK.L?#CX76^EZI>&;5I@]O:7=HVX1@8*[BP!X!QP.PH
M]8$T1F,(D0RJH8IN&X ]#CTI]?,_PO\ 'L'AO6]0EU9;V\GU(Q1B12';=N/+
M%B#_ !#UKU;Q9\7]!\+ZG)I@AN+Z\BXE$. B'^Z6)Z_0&@#T*BO([3X_:++<
MI'=Z3?6\3'!D5E?;[D<2LKXQ_$!F2WT71KNZAWHL\L\+!4FB=,J 0$S\Q;W WCCD>W(Y
M]Z .,U+6M7LG%G_:@2&.ZGC:]N)(X"=JQLBEO*9,G>W&T9V]?6Q%JNM2QF\E
MU IY,MBA@CA41OYIC#D[EW_QDCIBNITW6;#5;*:[M9D:"&62)W+# *$@DG/3
MC(]B#5&]\7:/;64=S#
G
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MP6:$QWI42%6&]S%L.,]?E;![8[<5TNE;WL;>TO(&-Q;P1>8T@# N5YP