------------ | ------------ | ------------ | ||||||
(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) | 3rd Qtr '22 | 2nd Qtr '22 | 3rd Qtr '21 | ||||||||||||||
FINANCIAL RESULTS | |||||||||||||||||
Net interest income | $ | 707 | $ | 561 | $ | 475 | |||||||||||
Provision for credit losses | 28 | 10 | (42) | ||||||||||||||
Noninterest income | 278 | 268 | 280 | ||||||||||||||
Noninterest expenses | 502 | 482 | 465 | ||||||||||||||
Pre-tax income | 455 | 337 | 332 | ||||||||||||||
Provision for income taxes | 104 | 76 | 70 | ||||||||||||||
Net income | $ | 351 | $ | 261 | $ | 262 | |||||||||||
Diluted earnings per common share | $ | 2.60 | $ | 1.92 | $ | 1.90 | |||||||||||
Average loans | 51,113 | 50,027 | 48,135 | ||||||||||||||
Average deposits | 73,976 | 77,589 | 79,115 | ||||||||||||||
Return on average assets | 1.63 | % | 1.18 | % | 1.14 | % | |||||||||||
Return on average common shareholders' equity | 23.28 | 16.72 | 13.53 | ||||||||||||||
Net interest margin | 3.50 | 2.70 | 2.23 | ||||||||||||||
Efficiency ratio (a) | 50.75 | 58.03 | 61.13 | ||||||||||||||
Common equity Tier 1 capital ratio (b) | 9.92 | 9.72 | 10.27 | ||||||||||||||
Tier 1 capital ratio (b) | 10.44 | 10.24 | 10.85 | ||||||||||||||
(dollar amounts in millions) | 3rd Qtr '22 | 2nd Qtr '22 | 3rd Qtr '21 | ||||||||||||||
Net interest income | $ | 707 | $ | 561 | $ | 475 | |||||||||||
Net interest margin | 3.50 | % | 2.70 | % | 2.23 | % | |||||||||||
Selected balances: | |||||||||||||||||
Total earning assets | $ | 77,012 | $ | 80,093 | $ | 84,788 | |||||||||||
Total loans | 51,113 | 50,027 | 48,135 | ||||||||||||||
Total investment securities | 20,540 | 19,029 | 15,969 | ||||||||||||||
Federal Reserve Bank deposits | 4,967 | 10,409 | 20,176 | ||||||||||||||
Total deposits | 73,976 | 77,589 | 79,115 | ||||||||||||||
Total noninterest-bearing deposits | 41,820 | 42,918 | 41,984 | ||||||||||||||
Short-term borrowings | 144 | 5 | 1 | ||||||||||||||
Medium- and long-term debt | 2,827 | 2,656 | 2,864 |
(dollar amounts in millions) | 3rd Qtr '22 | 2nd Qtr '22 | 3rd Qtr '21 | ||||||||||||||
Credit-related charge-offs | $ | 26 | $ | 13 | $ | 26 | |||||||||||
Recoveries | 13 | 13 | 24 | ||||||||||||||
Net credit-related (recoveries) charge-offs | 13 | — | 2 | ||||||||||||||
Net credit-related charge-offs/Average total loans | 0.10 | % | — | % | 0.01 | % | |||||||||||
Provision for credit losses | $ | 28 | $ | 10 | $ | (42) | |||||||||||
Nonperforming loans | 262 | 265 | 295 | ||||||||||||||
Nonperforming assets (NPAs) | 262 | 266 | 296 | ||||||||||||||
NPAs/Total loans and foreclosed property | 0.51 | % | 0.52 | % | 0.62 | % | |||||||||||
Loans past due 90 days or more and still accruing | $ | 72 | $ | 12 | $ | 12 | |||||||||||
Allowance for loan losses | 576 | 563 | 609 | ||||||||||||||
Allowance for credit losses on lending-related commitments (a) | 48 | 46 | 30 | ||||||||||||||
Total allowance for credit losses | 624 | 609 | 639 | ||||||||||||||
Allowance for credit losses/Period-end total loans | 1.21 | % | 1.18 | % | 1.33 | % | |||||||||||
Allowance for credit losses/Period-end total loans excluding PPP loans | 1.21 | 1.19 | 1.35 | ||||||||||||||
Allowance for credit losses/Nonperforming loans | 2.4x | 2.3x | 2.2x |
Media Contacts: | Investor Contacts: | ||||
Nicole Hogan | Kelly Gage | ||||
(214) 462-6657 | (214) 462-6831 | ||||
Louis H. Mora | Morgan Mathers | ||||
(214) 462-6669 | (214) 462-6731 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | |||||||||||||||||
(in millions, except per share data) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||||||
Diluted earnings per common share | $ | 2.60 | $ | 1.92 | $ | 1.90 | $ | 5.88 | $ | 6.67 | ||||||||||
Cash dividends declared | 0.68 | 0.68 | 0.68 | 2.04 | 2.04 | |||||||||||||||
Average diluted shares (in thousands) | 132,479 | 132,446 | 134,322 | 132,614 | 137,800 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average common shareholders' equity | 23.28 | % | 16.72 | % | 13.53 | % | 16.26 | % | 16.23 | % | ||||||||||
Return on average assets | 1.63 | 1.18 | 1.14 | 1.21 | 1.43 | |||||||||||||||
Efficiency ratio (a) | 50.75 | 58.03 | 61.13 | 57.67 | 61.80 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Common equity tier 1 capital (b), (c) | $ | 7,616 | $ | 7,349 | $ | 6,965 | ||||||||||||||
Tier 1 capital (b), (c) | 8,010 | 7,743 | 7,359 | |||||||||||||||||
Risk-weighted assets (b) | 76,736 | 75,588 | 67,834 | |||||||||||||||||
Common equity tier 1 capital ratio (b), (c) | 9.92 | % | 9.72 | % | 10.27 | % | ||||||||||||||
Tier 1 capital ratio (b), (c) | 10.44 | 10.24 | 10.85 | |||||||||||||||||
Total capital ratio (b) | 12.40 | 11.75 | 12.57 | |||||||||||||||||
Leverage ratio (b) | 9.20 | 8.62 | 8.07 | |||||||||||||||||
Common shareholders' equity per share of common stock | $ | 35.70 | $ | 46.19 | $ | 56.55 | ||||||||||||||
Tangible common equity per share of common stock (c) | 30.77 | 41.25 | 51.61 | |||||||||||||||||
Common equity ratio | 5.55 | % | 6.95 | % | 7.84 | % | ||||||||||||||
Tangible common equity ratio (c) | 4.82 | 6.26 | 7.20 | |||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Commercial loans | $ | 30,573 | $ | 29,918 | $ | 28,244 | $ | 29,597 | $ | 29,741 | ||||||||||
Real estate construction loans | 2,457 | 2,332 | 3,160 | 2,482 | 3,826 | |||||||||||||||
Commercial mortgage loans | 12,180 | 11,947 | 11,165 | 11,927 | 10,408 | |||||||||||||||
Lease financing | 690 | 642 | 580 | 656 | 583 | |||||||||||||||
International loans | 1,234 | 1,303 | 1,075 | 1,252 | 1,024 | |||||||||||||||
Residential mortgage loans | 1,761 | 1,773 | 1,816 | 1,773 | 1,814 | |||||||||||||||
Consumer loans | 2,218 | 2,112 | 2,095 | 2,128 | 2,112 | |||||||||||||||
Total loans | 51,113 | 50,027 | 48,135 | 49,815 | 49,508 | |||||||||||||||
Earning assets | 77,012 | 80,093 | 84,788 | 80,201 | 81,637 | |||||||||||||||
Total assets | 85,422 | 88,810 | 91,353 | 88,440 | 87,949 | |||||||||||||||
Noninterest-bearing deposits | 41,820 | 42,918 | 41,984 | 42,713 | 39,912 | |||||||||||||||
Interest-bearing deposits | 32,156 | 34,671 | 37,131 | 34,158 | 35,459 | |||||||||||||||
Total deposits | 73,976 | 77,589 | 79,115 | 76,871 | 75,371 | |||||||||||||||
Common shareholders' equity | 5,897 | 6,131 | 7,523 | 6,452 | 7,610 | |||||||||||||||
Total shareholders' equity | 6,291 | 6,525 | 7,917 | 6,846 | 8,004 | |||||||||||||||
NET INTEREST INCOME | ||||||||||||||||||||
Net interest income | $ | 707 | $ | 561 | $ | 475 | $ | 1,724 | $ | 1,383 | ||||||||||
Net interest margin | 3.50 | % | 2.70 | % | 2.23 | % | 2.78 | % | 2.27 | % | ||||||||||
CREDIT QUALITY | ||||||||||||||||||||
Nonperforming assets | $ | 262 | $ | 266 | $ | 296 | ||||||||||||||
Loans past due 90 days or more and still accruing | 72 | 12 | 12 | |||||||||||||||||
Net credit-related charge-offs (recoveries) | 13 | — | 2 | $ | 21 | $ | (6) | |||||||||||||
Allowance for loan losses | 576 | 563 | 609 | |||||||||||||||||
Allowance for credit losses on lending-related commitments | 48 | 46 | 30 | |||||||||||||||||
Total allowance for credit losses | 624 | 609 | 639 | |||||||||||||||||
Allowance for credit losses as a percentage of total loans | 1.21 | % | 1.18 | % | 1.33 | % | ||||||||||||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.10 | — | 0.01 | 0.06 | % | (0.02 | %) | |||||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.51 | 0.52 | 0.62 | |||||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.4x | 2.3x | 2.2x | |||||||||||||||||
OTHER KEY INFORMATION | ||||||||||||||||||||
Number of banking centers | 410 | 433 | 433 | |||||||||||||||||
Number of employees - full time equivalent | 7,432 | 7,436 | 7,459 |
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||
September 30, | June 30, | December 31, | September 30, | |||||||||||
(in millions, except share data) | 2022 | 2022 | 2021 | 2021 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 1,735 | $ | 1,631 | $ | 1,236 | $ | 1,050 | ||||||
Interest-bearing deposits with banks | 4,235 | 5,902 | 21,443 | 22,539 | ||||||||||
Other short-term investments | 159 | 160 | 197 | 187 | ||||||||||
Investment securities available-for-sale | 19,452 | 20,829 | 16,986 | 16,846 | ||||||||||
Commercial loans | 30,713 | 31,259 | 29,366 | 28,355 | ||||||||||
Real estate construction loans | 2,617 | 2,465 | 2,948 | 3,010 | ||||||||||
Commercial mortgage loans | 12,438 | 11,855 | 11,255 | 11,215 | ||||||||||
Lease financing | 713 | 653 | 640 | 569 | ||||||||||
International loans | 1,216 | 1,291 | 1,208 | 1,131 | ||||||||||
Residential mortgage loans | 1,753 | 1,753 | 1,771 | 1,813 | ||||||||||
Consumer loans | 2,262 | 2,178 | 2,097 | 2,102 | ||||||||||
Total loans | 51,712 | 51,454 | 49,285 | 48,195 | ||||||||||
Allowance for loan losses | (576) | (563) | (588) | (609) | ||||||||||
Net loans | 51,136 | 50,891 | 48,697 | 47,586 | ||||||||||
Premises and equipment | 412 | 422 | 454 | 447 | ||||||||||
Accrued income and other assets | 7,014 | 7,054 | 5,603 | 5,874 | ||||||||||
Total assets | $ | 84,143 | $ | 86,889 | $ | 94,616 | $ | 94,529 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Noninterest-bearing deposits | $ | 42,296 | $ | 42,308 | $ | 45,800 | $ | 44,093 | ||||||
Money market and interest-bearing checking deposits | 25,663 | 28,409 | 31,349 | 32,932 | ||||||||||
Savings deposits | 3,375 | 3,342 | 3,167 | 3,125 | ||||||||||
Customer certificates of deposit | 1,661 | 1,686 | 1,973 | 2,091 | ||||||||||
Foreign office time deposits | 21 | 20 | 50 | 43 | ||||||||||
Total interest-bearing deposits | 30,720 | 33,457 | 36,539 | 38,191 | ||||||||||
Total deposits | 73,016 | 75,765 | 82,339 | 82,284 | ||||||||||
Short-term borrowings | 508 | — | — | — | ||||||||||
Accrued expenses and other liabilities | 2,534 | 2,059 | 1,584 | 1,605 | ||||||||||
Medium- and long-term debt | 3,016 | 2,630 | 2,796 | 2,837 | ||||||||||
Total liabilities | 79,074 | 80,454 | 86,719 | 86,726 | ||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share: | ||||||||||||||
Authorized - 4,000 shares | ||||||||||||||
Issued - 4,000 shares | 394 | 394 | 394 | 394 | ||||||||||
Common stock - $5 par value: | ||||||||||||||
Authorized - 325,000,000 shares | ||||||||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | 1,141 | ||||||||||
Capital surplus | 2,209 | 2,204 | 2,175 | 2,170 | ||||||||||
Accumulated other comprehensive loss | (3,587) | (1,954) | (212) | (207) | ||||||||||
Retained earnings | 11,005 | 10,752 | 10,494 | 10,366 | ||||||||||
Less cost of common stock in treasury - 97,244,273 shares at 9/30/22, 97,387,508 shares at 6/30/22, 97,476,872 shares at 12/31/21 and 97,158,441 shares at 9/30/21 | (6,093) | (6,102) | (6,095) | (6,061) | ||||||||||
Total shareholders' equity | 5,069 | 6,435 | 7,897 | 7,803 | ||||||||||
Total liabilities and shareholders' equity | $ | 84,143 | $ | 86,889 | $ | 94,616 | $ | 94,529 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(in millions, except per share data) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
INTEREST INCOME | |||||||||||||||||
Interest and fees on loans | $ | 597 | $ | 411 | $ | 1,434 | $ | 1,201 | |||||||||
Interest on investment securities | 119 | 70 | 296 | 209 | |||||||||||||
Interest on short-term investments | 34 | 8 | 66 | 17 | |||||||||||||
Total interest income | 750 | 489 | 1,796 | 1,427 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Interest on deposits | 16 | 5 | 24 | 17 | |||||||||||||
Interest on short-term borrowings | 1 | — | 1 | — | |||||||||||||
Interest on medium- and long-term debt | 26 | 9 | 47 | 27 | |||||||||||||
Total interest expense | 43 | 14 | 72 | 44 | |||||||||||||
Net interest income | 707 | 475 | 1,724 | 1,383 | |||||||||||||
Provision for credit losses | 28 | (42) | 27 | (359) | |||||||||||||
Net interest income after provision for credit losses | 679 | 517 | 1,697 | 1,742 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Card fees | 67 | 72 | 205 | 227 | |||||||||||||
Fiduciary income | 58 | 58 | 178 | 171 | |||||||||||||
Service charges on deposit accounts | 50 | 50 | 148 | 145 | |||||||||||||
Derivative income | 35 | 20 | 86 | 72 | |||||||||||||
Commercial lending fees | 29 | 31 | 81 | 76 | |||||||||||||
Bank-owned life insurance | 12 | 12 | 37 | 32 | |||||||||||||
Letter of credit fees | 10 | 10 | 28 | 30 | |||||||||||||
Brokerage fees | 6 | 3 | 14 | 11 | |||||||||||||
Other noninterest income | 11 | 24 | 13 | 70 | |||||||||||||
Total noninterest income | 278 | 280 | 790 | 834 | |||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||
Salaries and benefits expense | 307 | 282 | 890 | 841 | |||||||||||||
Outside processing fee expense | 64 | 65 | 188 | 200 | |||||||||||||
Occupancy expense | 44 | 40 | 122 | 117 | |||||||||||||
Software expense | 40 | 40 | 120 | 117 | |||||||||||||
Equipment expense | 12 | 13 | 36 | 38 | |||||||||||||
Advertising expense | 9 | 10 | 24 | 25 | |||||||||||||
FDIC insurance expense | 8 | 4 | 24 | 17 | |||||||||||||
Other noninterest expenses | 18 | 11 | 53 | 20 | |||||||||||||
Total noninterest expenses | 502 | 465 | 1,457 | 1,375 | |||||||||||||
Income before income taxes | 455 | 332 | 1,030 | 1,201 | |||||||||||||
Provision for income taxes | 104 | 70 | 229 | 261 | |||||||||||||
NET INCOME | 351 | 262 | 801 | 940 | |||||||||||||
Less: | |||||||||||||||||
Income allocated to participating securities | 2 | 1 | 4 | 4 | |||||||||||||
Preferred stock dividends | 6 | 6 | 17 | 17 | |||||||||||||
Net income attributable to common shares | $ | 343 | $ | 255 | $ | 780 | $ | 919 | |||||||||
Earnings per common share: | |||||||||||||||||
Basic | $ | 2.63 | $ | 1.92 | $ | 5.96 | $ | 6.75 | |||||||||
Diluted | 2.60 | 1.90 | 5.88 | 6.67 | |||||||||||||
Comprehensive (loss) income | (1,282) | 175 | (2,574) | 669 | |||||||||||||
Cash dividends declared on common stock | 89 | 89 | 267 | 276 | |||||||||||||
Cash dividends declared per common share | 0.68 | 0.68 | 2.04 | 2.04 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | Third Quarter 2022 Compared to: | ||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Second Quarter 2022 | Third Quarter 2021 | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2022 | 2022 | 2022 | 2021 | 2021 | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 597 | $ | 454 | $ | 383 | $ | 393 | $ | 411 | $ | 143 | 32 | % | $ | 186 | 45 | % | |||||||||||||||||
Interest on investment securities | 119 | 100 | 77 | 71 | 70 | 19 | 18 | 49 | 69 | ||||||||||||||||||||||||||
Interest on short-term investments | 34 | 23 | 9 | 10 | 8 | 11 | 47 | 26 | n/m | ||||||||||||||||||||||||||
Total interest income | 750 | 577 | 469 | 474 | 489 | 173 | 30 | 261 | 53 | ||||||||||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||||||||||
Interest on deposits | 16 | 4 | 4 | 5 | 5 | 12 | n/m | 11 | n/m | ||||||||||||||||||||||||||
Interest on short-term borrowings | 1 | — | — | — | — | 1 | n/m | 1 | n/m | ||||||||||||||||||||||||||
Interest on medium- and long-term debt | 26 | 12 | 9 | 8 | 9 | 14 | n/m | 17 | n/m | ||||||||||||||||||||||||||
Total interest expense | 43 | 16 | 13 | 13 | 14 | 27 | n/m | 29 | n/m | ||||||||||||||||||||||||||
Net interest income | 707 | 561 | 456 | 461 | 475 | 146 | 26 | 232 | 49 | ||||||||||||||||||||||||||
Provision for credit losses | 28 | 10 | (11) | (25) | (42) | 18 | n/m | 70 | n/m | ||||||||||||||||||||||||||
Net interest income after provision for credit losses | 679 | 551 | 467 | 486 | 517 | 128 | 23 | 162 | 31 | ||||||||||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||||||||||
Card fees | 67 | 69 | 69 | 71 | 72 | (2) | (3) | (5) | (7) | ||||||||||||||||||||||||||
Fiduciary income | 58 | 62 | 58 | 60 | 58 | (4) | (5) | — | — | ||||||||||||||||||||||||||
Service charges on deposit accounts | 50 | 50 | 48 | 50 | 50 | — | — | — | — | ||||||||||||||||||||||||||
Derivative income | 35 | 29 | 22 | 27 | 20 | 6 | 23 | 15 | 71 | ||||||||||||||||||||||||||
Commercial lending fees | 29 | 30 | 22 | 28 | 31 | (1) | — | (2) | (6) | ||||||||||||||||||||||||||
Bank-owned life insurance | 12 | 12 | 13 | 11 | 12 | — | — | — | — | ||||||||||||||||||||||||||
Letter of credit fees | 10 | 9 | 9 | 10 | 10 | 1 | 2 | — | — | ||||||||||||||||||||||||||
Brokerage fees | 6 | 4 | 4 | 3 | 3 | 2 | 29 | 3 | 58 | ||||||||||||||||||||||||||
Other noninterest income | 11 | 3 | (1) | 29 | 24 | 8 | n/m | (13) | (50) | ||||||||||||||||||||||||||
Total noninterest income | 278 | 268 | 244 | 289 | 280 | 10 | 4 | (2) | — | ||||||||||||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||||||||||
Salaries and benefits expense | 307 | 294 | 289 | 292 | 282 | 13 | 5 | 25 | 9 | ||||||||||||||||||||||||||
Outside processing fee expense | 64 | 62 | 62 | 66 | 65 | 2 | 2 | (1) | (2) | ||||||||||||||||||||||||||
Occupancy expense | 44 | 40 | 38 | 44 | 40 | 4 | 9 | 4 | 7 | ||||||||||||||||||||||||||
Software expense | 40 | 41 | 39 | 38 | 40 | (1) | — | — | — | ||||||||||||||||||||||||||
Equipment expense | 12 | 13 | 11 | 12 | 13 | (1) | (3) | (1) | (6) | ||||||||||||||||||||||||||
Advertising expense | 9 | 8 | 7 | 10 | 10 | 1 | 10 | (1) | (3) | ||||||||||||||||||||||||||
FDIC insurance expense | 8 | 8 | 8 | 5 | 4 | — | — | 4 | 74 | ||||||||||||||||||||||||||
Other noninterest expenses | 18 | 16 | 19 | 19 | 11 | 2 | 5 | 7 | 53 | ||||||||||||||||||||||||||
Total noninterest expenses | 502 | 482 | 473 | 486 | 465 | 20 | 4 | 37 | 8 | ||||||||||||||||||||||||||
Income before income taxes | 455 | 337 | 238 | 289 | 332 | 118 | 35 | 123 | 37 | ||||||||||||||||||||||||||
Provision for income taxes | 104 | 76 | 49 | 61 | 70 | 28 | 37 | 34 | 49 | ||||||||||||||||||||||||||
NET INCOME | 351 | 261 | 189 | 228 | 262 | 90 | 35 | 89 | 34 | ||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||
Income allocated to participating securities | 2 | 1 | 1 | 1 | 1 | 1 | 43 | 1 | 49 | ||||||||||||||||||||||||||
Preferred stock dividends | 6 | 5 | 6 | 6 | 6 | 1 | — | — | — | ||||||||||||||||||||||||||
Net income attributable to common shares | $ | 343 | $ | 255 | $ | 182 | $ | 221 | $ | 255 | $ | 88 | 35 | % | $ | 88 | 35 | % | |||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||||||||
Basic | $ | 2.63 | $ | 1.94 | $ | 1.39 | $ | 1.69 | $ | 1.92 | $ | 0.69 | 36 | % | $ | 0.71 | 37 | % | |||||||||||||||||
Diluted | 2.60 | 1.92 | 1.37 | 1.66 | 1.90 | 0.68 | 35 | 0.70 | 37 | ||||||||||||||||||||||||||
Comprehensive (loss) income | (1,282) | (520) | (772) | 223 | 175 | (762) | n/m | (1,457) | n/m | ||||||||||||||||||||||||||
Cash dividends declared on common stock | 89 | 89 | 89 | 89 | 89 | — | — | — | — | ||||||||||||||||||||||||||
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 | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
(in millions) | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
Balance at beginning of period: | ||||||||||||||||||||
Allowance for loan losses | $ | 563 | $ | 554 | $ | 588 | $ | 609 | $ | 652 | ||||||||||
Allowance for credit losses on lending-related commitments | 46 | 45 | 30 | 30 | 31 | |||||||||||||||
Allowance for credit losses | 609 | 599 | 618 | 639 | 683 | |||||||||||||||
Loan charge-offs: | ||||||||||||||||||||
Commercial | 25 | 13 | 15 | 14 | 24 | |||||||||||||||
Real estate construction | — | — | 1 | — | — | |||||||||||||||
Commercial mortgage | — | — | 1 | 2 | — | |||||||||||||||
International | — | — | — | 3 | 2 | |||||||||||||||
Consumer | 1 | — | 1 | 1 | — | |||||||||||||||
Total loan charge-offs | 26 | 13 | 18 | 20 | 26 | |||||||||||||||
Recoveries on loans previously charged-off: | ||||||||||||||||||||
Commercial | 12 | 12 | 8 | 23 | 22 | |||||||||||||||
Commercial mortgage | — | — | 1 | — | — | |||||||||||||||
Residential mortgage | 1 | — | — | 1 | 1 | |||||||||||||||
Consumer | — | 1 | 1 | — | 1 | |||||||||||||||
Total recoveries | 13 | 13 | 10 | 24 | 24 | |||||||||||||||
Net loan charge-offs (recoveries) | 13 | — | 8 | (4) | 2 | |||||||||||||||
Provision for credit losses: | ||||||||||||||||||||
Provision for loan losses | 26 | 9 | (26) | (25) | (41) | |||||||||||||||
Provision for credit losses on lending-related commitments | 2 | 1 | 15 | — | (1) | |||||||||||||||
Provision for credit losses | 28 | 10 | (11) | (25) | (42) | |||||||||||||||
Balance at end of period: | ||||||||||||||||||||
Allowance for loan losses | 576 | 563 | 554 | 588 | 609 | |||||||||||||||
Allowance for credit losses on lending-related commitments | 48 | 46 | 45 | 30 | 30 | |||||||||||||||
Allowance for credit losses | $ | 624 | $ | 609 | $ | 599 | $ | 618 | $ | 639 | ||||||||||
Allowance for credit losses as a percentage of total loans | 1.21 | % | 1.18 | % | 1.21 | % | 1.26 | % | 1.33 | % | ||||||||||
Allowance for credit losses as a percentage of total loans excluding PPP loans | 1.21 | 1.19 | 1.22 | 1.27 | 1.35 | |||||||||||||||
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.10 | — | 0.06 | (0.03) | 0.01 | |||||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
(in millions) | 3rd Qtr | 2nd Qtr | 1st Qtr | 4th Qtr | 3rd Qtr | |||||||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||||||||||
Nonaccrual loans: | ||||||||||||||||||||
Business loans: | ||||||||||||||||||||
Commercial | $ | 154 | $ | 161 | $ | 163 | $ | 173 | $ | 200 | ||||||||||
Real estate construction | 4 | 4 | 4 | 6 | 6 | |||||||||||||||
Commercial mortgage | 25 | 29 | 27 | 32 | 30 | |||||||||||||||
International | 5 | 5 | 5 | 5 | 8 | |||||||||||||||
Total nonaccrual business loans | 188 | 199 | 199 | 216 | 244 | |||||||||||||||
Retail loans: | ||||||||||||||||||||
Residential mortgage | 56 | 49 | 53 | 36 | 35 | |||||||||||||||
Consumer: | ||||||||||||||||||||
Home equity | 14 | 13 | 14 | 12 | 12 | |||||||||||||||
Other consumer | 1 | 1 | 3 | — | — | |||||||||||||||
Total nonaccrual retail loans | 71 | 63 | 70 | 48 | 47 | |||||||||||||||
Total nonaccrual loans | 259 | 262 | 269 | 264 | 291 | |||||||||||||||
Reduced-rate loans | 3 | 3 | 4 | 4 | 4 | |||||||||||||||
Total nonperforming loans | 262 | 265 | 273 | 268 | 295 | |||||||||||||||
Foreclosed property | — | 1 | 1 | 1 | 1 | |||||||||||||||
Total nonperforming assets | $ | 262 | $ | 266 | $ | 274 | $ | 269 | $ | 296 | ||||||||||
Nonperforming loans as a percentage of total loans | 0.51 | % | 0.52 | % | 0.55 | % | 0.54 | % | 0.61 | % | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property | 0.51 | 0.52 | 0.55 | 0.55 | 0.62 | |||||||||||||||
Allowance for credit losses as a multiple of total nonperforming loans | 2.4x | 2.3x | 2.2x | 2.3x | 2.2x | |||||||||||||||
Loans past due 90 days or more and still accruing | $ | 72 | $ | 12 | $ | 26 | $ | 27 | $ | 12 | ||||||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||||||||||
Nonaccrual loans at beginning of period | $ | 262 | $ | 269 | $ | 264 | $ | 291 | $ | 311 | ||||||||||
Loans transferred to nonaccrual (a) | 45 | 30 | 41 | 15 | 55 | |||||||||||||||
Nonaccrual loan gross charge-offs | (26) | (13) | (18) | (20) | (26) | |||||||||||||||
Loans transferred to accrual status (a) | — | — | (4) | — | (8) | |||||||||||||||
Nonaccrual loans sold | (4) | (9) | — | — | (9) | |||||||||||||||
Payments/other (b) | (18) | (15) | (14) | (22) | (32) | |||||||||||||||
Nonaccrual loans at end of period | $ | 259 | $ | 262 | $ | 269 | $ | 264 | $ | 291 |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, 2022 | September 30, 2021 | ||||||||||||||||||||||
Average | Average | Average | Average | ||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||
Commercial loans (a), (b) | $ | 29,597 | $ | 876 | 3.96 | % | $ | 29,741 | $ | 769 | 3.46 | % | |||||||||||
Real estate construction loans | 2,482 | 81 | 4.36 | 3,826 | 97 | 3.37 | |||||||||||||||||
Commercial mortgage loans | 11,927 | 324 | 3.63 | 10,408 | 224 | 2.87 | |||||||||||||||||
Lease financing (c) | 656 | 13 | 2.65 | 583 | (7) | (1.55) | |||||||||||||||||
International loans | 1,252 | 36 | 3.88 | 1,024 | 24 | 3.17 | |||||||||||||||||
Residential mortgage loans | 1,773 | 41 | 3.05 | 1,814 | 41 | 3.05 | |||||||||||||||||
Consumer loans | 2,128 | 63 | 3.98 | 2,112 | 53 | 3.36 | |||||||||||||||||
Total loans | 49,815 | 1,434 | 3.85 | 49,508 | 1,201 | 3.24 | |||||||||||||||||
Mortgage-backed securities (d) | 16,140 | 274 | 2.08 | 11,221 | 163 | 1.95 | |||||||||||||||||
U.S. Treasury securities (e) | 2,837 | 22 | 0.98 | 4,205 | 46 | 1.49 | |||||||||||||||||
Total investment securities | 18,977 | 296 | 1.93 | 15,426 | 209 | 1.82 | |||||||||||||||||
Interest-bearing deposits with banks (f) | 11,232 | 65 | 0.71 | 16,524 | 17 | 0.13 | |||||||||||||||||
Other short-term investments | 177 | 1 | 0.59 | 179 | — | 0.23 | |||||||||||||||||
Total earning assets | 80,201 | 1,796 | 2.90 | 81,637 | 1,427 | 2.34 | |||||||||||||||||
Cash and due from banks | 1,466 | 972 | |||||||||||||||||||||
Allowance for loan losses | (566) | (770) | |||||||||||||||||||||
Accrued income and other assets | 7,339 | 6,110 | |||||||||||||||||||||
Total assets | $ | 88,440 | $ | 87,949 | |||||||||||||||||||
Money market and interest-bearing checking deposits (g) | $ | 29,036 | 21 | 0.10 | $ | 30,300 | 14 | 0.06 | |||||||||||||||
Savings deposits | 3,303 | 1 | 0.03 | 2,974 | — | 0.01 | |||||||||||||||||
Customer certificates of deposit | 1,775 | 2 | 0.19 | 2,137 | 3 | 0.22 | |||||||||||||||||
Foreign office time deposits | 44 | — | 0.63 | 48 | — | 0.09 | |||||||||||||||||
Total interest-bearing deposits | 34,158 | 24 | 0.10 | 35,459 | 17 | 0.07 | |||||||||||||||||
Federal funds purchased | 28 | 1 | 2.37 | 2 | — | — | |||||||||||||||||
Other short-term borrowings | 22 | — | 3.04 | — | — | — | |||||||||||||||||
Medium- and long-term debt | 2,750 | 47 | 2.26 | 3,107 | 27 | 1.10 | |||||||||||||||||
Total interest-bearing sources | 36,958 | 72 | 0.26 | 38,568 | 44 | 0.15 | |||||||||||||||||
Noninterest-bearing deposits | 42,713 | 39,912 | |||||||||||||||||||||
Accrued expenses and other liabilities | 1,923 | 1,465 | |||||||||||||||||||||
Shareholders' equity | 6,846 | 8,004 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 88,440 | $ | 87,949 | |||||||||||||||||||
Net interest income/rate spread | $ | 1,724 | 2.64 | $ | 1,383 | 2.19 | |||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.14 | 0.08 | |||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 2.78 | % | 2.27 | % |
ANALYSIS OF NET INTEREST INCOME (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, 2022 | June 30, 2022 | September 30, 2021 | |||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||
Commercial loans (a), (b) | $ | 30,573 | $ | 362 | 4.69 | % | $ | 29,918 | $ | 282 | 3.77 | % | $ | 28,244 | $ | 262 | 3.67 | % | |||||||||||||||||
Real estate construction loans | 2,457 | 33 | 5.44 | 2,332 | 24 | 4.05 | 3,160 | 28 | 3.46 | ||||||||||||||||||||||||||
Commercial mortgage loans | 12,180 | 141 | 4.59 | 11,947 | 99 | 3.33 | 11,165 | 82 | 2.90 | ||||||||||||||||||||||||||
Lease financing | 690 | 4 | 2.10 | 642 | 4 | 3.01 | 580 | 1 | 1.12 | ||||||||||||||||||||||||||
International loans | 1,234 | 15 | 4.89 | 1,303 | 12 | 3.66 | 1,075 | 8 | 3.13 | ||||||||||||||||||||||||||
Residential mortgage loans | 1,761 | 16 | 3.47 | 1,773 | 14 | 3.16 | 1,816 | 13 | 2.92 | ||||||||||||||||||||||||||
Consumer loans | 2,218 | 26 | 4.77 | 2,112 | 19 | 3.64 | 2,095 | 17 | 3.31 | ||||||||||||||||||||||||||
Total loans | 51,113 | 597 | 4.64 | 50,027 | 454 | 3.64 | 48,135 | 411 | 3.39 | ||||||||||||||||||||||||||
Mortgage-backed securities (c) | 17,752 | 111 | 2.25 | 16,218 | 93 | 2.07 | 12,331 | 58 | 1.89 | ||||||||||||||||||||||||||
U.S. Treasury securities (d) | 2,788 | 8 | 0.97 | 2,811 | 7 | 0.98 | 3,638 | 12 | 1.32 | ||||||||||||||||||||||||||
Total investment securities | 20,540 | 119 | 2.08 | 19,029 | 100 | 1.92 | 15,969 | 70 | 1.76 | ||||||||||||||||||||||||||
Interest-bearing deposits with banks (e) | 5,194 | 33 | 2.12 | 10,861 | 23 | 0.75 | 20,494 | 8 | 0.16 | ||||||||||||||||||||||||||
Other short-term investments | 165 | 1 | 0.96 | 176 | — | 0.66 | 190 | — | 0.20 | ||||||||||||||||||||||||||
Total earning assets | 77,012 | 750 | 3.71 | 80,093 | 577 | 2.79 | 84,788 | 489 | 2.30 | ||||||||||||||||||||||||||
Cash and due from banks | 1,529 | 1,421 | 964 | ||||||||||||||||||||||||||||||||
Allowance for loan losses | (563) | (555) | (644) | ||||||||||||||||||||||||||||||||
Accrued income and other assets | 7,444 | 7,851 | 6,245 | ||||||||||||||||||||||||||||||||
Total assets | $ | 85,422 | $ | 88,810 | $ | 91,353 | |||||||||||||||||||||||||||||
Money market and interest-bearing checking deposits (f) | $ | 27,125 | 15 | 0.22 | $ | 29,513 | 3 | 0.05 | $ | 31,865 | 4 | 0.05 | |||||||||||||||||||||||
Savings deposits | 3,365 | 1 | 0.05 | 3,330 | — | 0.02 | 3,097 | — | 0.01 | ||||||||||||||||||||||||||
Customer certificates of deposit | 1,632 | — | 0.21 | 1,774 | 1 | 0.18 | 2,128 | 1 | 0.20 | ||||||||||||||||||||||||||
Other time deposits | — | — | — | 1 | — | 0.30 | — | — | — | ||||||||||||||||||||||||||
Foreign office time deposits | 34 | — | 1.42 | 53 | — | 0.54 | 41 | — | 0.08 | ||||||||||||||||||||||||||
Total interest-bearing deposits | 32,156 | 16 | 0.20 | 34,671 | 4 | 0.05 | 37,131 | 5 | 0.06 | ||||||||||||||||||||||||||
Federal funds purchased | 79 | 1 | 2.50 | 5 | — | 0.64 | 1 | — | 0.07 | ||||||||||||||||||||||||||
Other short-term borrowings | 65 | — | 3.04 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Medium- and long-term debt | 2,827 | 26 | 3.60 | 2,656 | 12 | 1.85 | 2,864 | 9 | 1.16 | ||||||||||||||||||||||||||
Total interest-bearing sources | 35,127 | 43 | 0.48 | 37,332 | 16 | 0.19 | 39,996 | 14 | 0.14 | ||||||||||||||||||||||||||
Noninterest-bearing deposits | 41,820 | 42,918 | 41,984 | ||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 2,184 | 2,035 | 1,456 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 6,291 | 6,525 | 7,917 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 85,422 | $ | 88,810 | $ | 91,353 | |||||||||||||||||||||||||||||
Net interest income/rate spread | $ | 707 | 3.23 | $ | 561 | 2.60 | $ | 475 | 2.16 | ||||||||||||||||||||||||||
Impact of net noninterest-bearing sources of funds | 0.27 | 0.10 | 0.07 | ||||||||||||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) | 3.50 | % | 2.70 | % | 2.23 | % |
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 | Loss | Earnings | Stock | Equity | ||||||||||||||||||
BALANCE AT JUNE 30, 2021 | $ | 394 | 133.9 | $ | 1,141 | $ | 2,163 | $ | (120) | $ | 10,202 | $ | (5,849) | $ | 7,931 | |||||||||||
Net income | — | — | — | — | — | 262 | — | 262 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (87) | — | — | (87) | ||||||||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | — | (89) | — | (89) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (6) | — | (6) | ||||||||||||||||||
Purchase of common stock | — | (3.1) | — | — | — | — | (220) | (220) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.2 | — | — | — | (3) | 8 | 5 | ||||||||||||||||||
Share-based compensation | — | — | — | 7 | — | — | — | 7 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | 394 | 131.0 | $ | 1,141 | $ | 2,170 | $ | (207) | $ | 10,366 | $ | (6,061) | $ | 7,803 | |||||||||||
BALANCE AT JUNE 30, 2022 | $ | 394 | 130.8 | $ | 1,141 | $ | 2,204 | $ | (1,954) | $ | 10,752 | $ | (6,102) | $ | 6,435 | |||||||||||
Net income | — | — | — | — | — | 351 | — | 351 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (1,633) | — | — | (1,633) | ||||||||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | — | (89) | — | (89) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (6) | — | (6) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.1 | — | (4) | — | (3) | 9 | 2 | ||||||||||||||||||
Share-based compensation | — | — | — | 9 | — | — | — | 9 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | 394 | 130.9 | $ | 1,141 | $ | 2,209 | $ | (3,587) | $ | 11,005 | $ | (6,093) | $ | 5,069 | |||||||||||
BALANCE AT DECEMBER 31, 2020 | $ | 394 | 139.2 | $ | 1,141 | $ | 2,185 | $ | 64 | $ | 9,727 | $ | (5,461) | $ | 8,050 | |||||||||||
Net income | — | — | — | — | — | 940 | — | 940 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (271) | — | — | (271) | ||||||||||||||||||
Cash dividends declared on common stock ($2.04 per share) | — | — | — | — | — | (276) | — | (276) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (17) | — | (17) | ||||||||||||||||||
Purchase of common stock | — | (9.0) | — | (24) | — | — | (649) | (673) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.8 | — | (27) | — | (8) | 49 | 14 | ||||||||||||||||||
Share-based compensation | — | — | — | 36 | — | — | — | 36 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2021 | $ | 394 | 131.0 | $ | 1,141 | $ | 2,170 | $ | (207) | $ | 10,366 | $ | (6,061) | $ | 7,803 | |||||||||||
BALANCE AT DECEMBER 31, 2021 | $ | 394 | 130.7 | $ | 1,141 | $ | 2,175 | $ | (212) | $ | 10,494 | $ | (6,095) | $ | 7,897 | |||||||||||
Net income | — | — | — | — | — | 801 | — | 801 | ||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (3,375) | — | — | (3,375) | ||||||||||||||||||
Cash dividends declared on common stock ($2.04 per share) | — | — | — | — | — | (267) | — | (267) | ||||||||||||||||||
Cash dividends declared on preferred stock | — | — | — | — | — | (17) | — | (17) | ||||||||||||||||||
Purchase of common stock | — | (0.4) | — | — | — | — | (36) | (36) | ||||||||||||||||||
Net issuance of common stock under employee stock plans | — | 0.6 | — | (14) | — | (6) | 38 | 18 | ||||||||||||||||||
Share-based compensation | — | — | — | 48 | — | — | — | 48 | ||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | 394 | 130.9 | $ | 1,141 | $ | 2,209 | $ | (3,587) | $ | 11,005 | $ | (6,093) | $ | 5,069 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||||||||||
(dollar amounts in millions) | Commercial | Retail | Wealth | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2022 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 478 | $ | 188 | $ | 55 | $ | (22) | $ | 8 | $ | 707 | |||||||||||||||||||||||
Provision for credit losses | 16 | 2 | 5 | — | 5 | 28 | |||||||||||||||||||||||||||||
Noninterest income | 169 | 29 | 77 | 6 | (3) | 278 | |||||||||||||||||||||||||||||
Noninterest expenses | 242 | 170 | 87 | — | 3 | 502 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 94 | 11 | 10 | (6) | (5) | 104 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 295 | $ | 34 | $ | 30 | $ | (10) | $ | 2 | $ | 351 | |||||||||||||||||||||||
Net credit-related charge-offs | $ | 6 | $ | — | $ | — | $ | — | $ | 7 | $ | 13 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 48,323 | $ | 2,799 | $ | 5,097 | $ | 22,133 | $ | 7,070 | $ | 85,422 | |||||||||||||||||||||||
Loans | 44,043 | 2,066 | 4,973 | — | 31 | 51,113 | |||||||||||||||||||||||||||||
Deposits | 41,471 | 26,665 | 5,293 | 383 | 164 | 73,976 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.42 | % | 0.51 | % | 2.08 | % | n/m | n/m | 1.63 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 37.54 | 76.81 | 65.92 | n/m | n/m | 50.75 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2022 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 398 | $ | 147 | $ | 47 | $ | (33) | $ | 2 | $ | 561 | |||||||||||||||||||||||
Provision for credit losses | 8 | (2) | 4 | — | — | 10 | |||||||||||||||||||||||||||||
Noninterest income | 160 | 32 | 77 | 12 | (13) | 268 | |||||||||||||||||||||||||||||
Noninterest expenses | 236 | 173 | 89 | — | (16) | 482 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 70 | 2 | 7 | (7) | 4 | 76 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 244 | $ | 6 | $ | 24 | $ | (14) | $ | 1 | $ | 261 | |||||||||||||||||||||||
Net credit-related charge-offs (recoveries) | $ | 2 | $ | (1) | $ | (1) | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 47,595 | $ | 2,769 | $ | 4,963 | $ | 21,071 | $ | 12,412 | $ | 88,810 | |||||||||||||||||||||||
Loans | 43,169 | 2,015 | 4,832 | — | 11 | 50,027 | |||||||||||||||||||||||||||||
Deposits | 43,738 | 27,145 | 5,966 | 520 | 220 | 77,589 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.00 | % | 0.09 | % | 1.52 | % | n/m | n/m | 1.18 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 42.32 | 95.87 | 71.82 | n/m | n/m | 58.03 | |||||||||||||||||||||||||||||
Commercial | Retail | Wealth | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | Bank | Bank | Management | Finance | Other | Total | |||||||||||||||||||||||||||||
Earnings summary: | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | $ | 406 | $ | 149 | $ | 40 | $ | (124) | $ | 4 | $ | 475 | |||||||||||||||||||||||
Provision for credit losses | (25) | (5) | (13) | — | 1 | (42) | |||||||||||||||||||||||||||||
Noninterest income | 169 | 32 | 69 | 10 | — | 280 | |||||||||||||||||||||||||||||
Noninterest expenses | 223 | 159 | 79 | — | 4 | 465 | |||||||||||||||||||||||||||||
Provision (benefit) for income taxes | 83 | 4 | 10 | (27) | — | 70 | |||||||||||||||||||||||||||||
Net income (loss) | $ | 294 | $ | 23 | $ | 33 | $ | (87) | $ | (1) | $ | 262 | |||||||||||||||||||||||
Net credit-related charge-offs (recoveries) | $ | 4 | $ | (1) | $ | (1) | $ | — | $ | — | $ | 2 | |||||||||||||||||||||||
Selected average balances: | |||||||||||||||||||||||||||||||||||
Assets | $ | 43,366 | $ | 3,105 | $ | 4,956 | $ | 17,922 | $ | 22,004 | $ | 91,353 | |||||||||||||||||||||||
Loans | 41,037 | 2,297 | 4,829 | — | (28) | 48,135 | |||||||||||||||||||||||||||||
Deposits | 46,641 | 26,088 | 5,209 | 977 | 200 | 79,115 | |||||||||||||||||||||||||||||
Statistical data: | |||||||||||||||||||||||||||||||||||
Return on average assets (a) | 2.33 | % | 0.34 | % | 2.36 | % | n/m | n/m | 1.14 | % | |||||||||||||||||||||||||
Efficiency ratio (b) | 38.40 | 87.18 | 72.83 | n/m | n/m | 61.13 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
September 30, | June 30, | September 30, | |||||||||
(dollar amounts in millions) | 2022 | 2022 | 2021 | ||||||||
Common Equity Tier 1 Capital (a): | |||||||||||
Tier 1 capital | $ | 8,010 | $ | 7,743 | $ | 7,359 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common equity tier 1 capital | $ | 7,616 | $ | 7,349 | $ | 6,965 | |||||
Risk-weighted assets | $ | 76,736 | $ | 75,588 | $ | 67,834 | |||||
Tier 1 capital ratio | 10.44 | % | 10.24 | % | 10.85 | % | |||||
Common equity tier 1 capital ratio | 9.92 | 9.72 | 10.27 | ||||||||
Tangible Common Equity: | |||||||||||
Total shareholders' equity | $ | 5,069 | $ | 6,435 | $ | 7,803 | |||||
Less: | |||||||||||
Fixed-rate reset non-cumulative perpetual preferred stock | 394 | 394 | 394 | ||||||||
Common shareholders' equity | $ | 4,675 | $ | 6,041 | $ | 7,409 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 10 | 10 | 12 | ||||||||
Tangible common equity | $ | 4,030 | $ | 5,396 | $ | 6,762 | |||||
Total assets | $ | 84,143 | $ | 86,889 | $ | 94,529 | |||||
Less: | |||||||||||
Goodwill | 635 | 635 | 635 | ||||||||
Other intangible assets | 10 | 10 | 12 | ||||||||
Tangible assets | $ | 83,498 | $ | 86,244 | $ | 93,882 | |||||
Common equity ratio | 5.55 | % | 6.95 | % | 7.84 | % | |||||
Tangible common equity ratio | 4.82 | 6.26 | 7.20 | ||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||
Common shareholders' equity | $ | 4,675 | $ | 6,041 | $ | 7,409 | |||||
Tangible common equity | 4,030 | 5,396 | 6,762 | ||||||||
Shares of common stock outstanding (in millions) | 131 | 131 | 131 | ||||||||
Common shareholders' equity per share of common stock | $ | 35.70 | $ | 46.19 | $ | 56.55 | |||||
Tangible common equity per share of common stock | 30.77 | 41.25 | 51.61 | ||||||||
Impact of Accumulated Other Comprehensive Loss to Tangible Common Equity: | |||||||||||
Accumulated other comprehensive loss (AOCI) | $ | (3,587) | $ | (1,954) | $ | (207) | |||||
Tangible common equity, excluding AOCI | 7,617 | 7,350 | 6,969 | ||||||||
Tangible common equity ratio, excluding AOCI | 9.12 | % | 8.52 | % | 7.42 | % | |||||
Tangible common equity per share of common stock, excluding AOCI | $ | 58.17 | $ | 56.19 | $ | 53.18 |
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