UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

---------------

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 17, 2015

COMERICA INCORPORATED
(Exact name of registrant as specified in its charter)


Delaware
------------
1-10706
----------
38-1998421
---------------
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification Number)

Comerica Bank Tower
1717 Main Street, MC 6404
Dallas, Texas 75201
------------------------------
(Address of principal executive offices) (zip code)

(214) 462-6831
---------------------------------------------------------------------------
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] 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))




ITEMS 2.02 and 7.01
RESULTS OF OPERATIONS AND FINANCIAL CONDITION AND REGULATION FD DISCLOSURE

Comerica Incorporated (“Comerica”) today released its earnings for the quarter ended June 30, 2015. A copy of the press release and the presentation slides which will be discussed in Comerica's webcast earnings call are attached hereto as Exhibits 99.1 and 99.2, respectively.

The information in this report (including Exhibits 99.1 and 99.2 hereto) is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such a filing.


ITEM 9.01
FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1    Press Release dated July 17, 2015
99.2    Earnings Presentation Slides





SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

COMERICA INCORPORATED

By: /s/ Jon W. Bilstrom        
Name: Jon W. Bilstrom
Title: Executive Vice President - Governance,
Regulatory Relations and Legal Affairs,
and Secretary

July 17, 2015








EXHIBIT INDEX

Exhibit No.
Description
99.1
Press Release dated July 17, 2015
99.2
Earnings Presentation Slides










COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION,
OR 73 CENTS PER SHARE
Average Loan Growth of $682 Million, or 1 Percent, Compared to First Quarter 2015
and $2.1 Billion, or 5 Percent, Compared to Second Quarter 2014
Revenue Increased 2 Percent Compared to First Quarter 2015
Returned $96 Million to Shareholders Through Equity Buybacks and Increased Dividend
DALLAS/July 17, 2015 -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2015 net income of $135 million, compared to $134 million for the first quarter 2015 and $151 million for the second quarter 2014. Earnings per diluted share were 73 cents for both the second and first quarters of 2015 and 80 cents for the second quarter 2014.
(dollar amounts in millions, except per share data)
2nd Qtr '15
 
1st Qtr '15
 
2nd Qtr '14
 
Net interest income
$
421

 
$
413

 
$
416

 
Provision for credit losses
47

 
14

 
11

 
Noninterest income (a)
261

 
255

 
220

 
Noninterest expenses (a)
436

(b)
459

 
404

 
Provision for income taxes
64

 
61

 
70

 
 
 
 
 
 
 
 
Net income
135

 
134

 
151

 
 
 
 
 
 
 
 
Net income attributable to common shares
134

 
132

 
149

 
 
 
 
 
 
 
 
Diluted income per common share
0.73

 
0.73

 
0.80

 
 
 
 
 
 
 
 
Average diluted shares (in millions)
182

 
182

 
186

 
 
 
 
 
 
 
 
Basel III common equity Tier 1 capital ratio (c) (d)
10.53
%
 
10.40
%
 
n/a

 
Tier 1 common capital ratio (c) (e)
n/a

 
n/a

 
10.50
%
 
Tangible common equity ratio (e)
9.92

 
9.97

 
10.39

 
(a)
Effective January 1, 2015, contractual changes to a card program resulted in a change to the accounting presentation of the related revenues and expenses. The effect of this change was increases of $44 million to both noninterest income and noninterest expenses in both the second and first quarters of 2015.
(b)
Reflects a $31 million reduction in litigation-related expense.
(c)
Basel III capital rules (standardized approach) became effective for Comerica on January 1, 2015. The ratio reflects transitional treatment for certain regulatory deductions and adjustments. For further information, see "Balance Sheet and Capital Management". Capital ratios for prior periods are based on Basel I rules.
(d)
June 30, 2015 ratio is estimated.
(e)
See Reconciliation of Non-GAAP Financial Measures.
n/a - not applicable.
"Our second quarter results reflect the advantages of our diverse geographic footprint and industry expertise,” said Ralph W. Babb, Jr., chairman and chief executive officer. "Average loans were up $2.1 billion, or 5 percent, compared to a year ago and were up $682 million, or 1 percent, relative to the first quarter, with increases in most markets and business lines. Relative to the first quarter, average deposits increased $408 million, or 1 percent, with noninterest-bearing deposits up $668 million.
"Revenue was up 2 percent, with growth in both net interest income and fee income in the second quarter. Charge-offs, nonaccruals and criticized loans remained well below normal historical levels. The provision for credit losses increased, primarily as a result of an increase in reserves for energy exposure. Noninterest expenses decreased $23 million to $436 million, primarily due to a decrease in litigation-related expense.
"Our balance sheet is well positioned to benefit as rates rise. We remain focused on the long term with a relationship banking strategy that continues to serve us well."

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 2

Second Quarter 2015 Compared to First Quarter 2015
•
Average total loans increased $682 million, or 1 percent, to $48.8 billion, primarily driven by a $690 million increase in Mortgage Banker Finance, as well as increases in general Middle Market, Private Banking and National Dealer Services, partially offset by decreases of $276 million in Energy and $151 million in Corporate Banking. Average loans increased across all markets except Texas, which decreased as a result of Energy. Period-end total loans increased $669 million, to $49.7 billion.
•
Average total deposits increased $408 million, or 1 percent, to $57.4 billion, primarily driven by an increase in noninterest-bearing deposits of $668 million, across all markets. Period-end total deposits increased $690 million, to $58.3 billion.
•
Net interest income increased $8 million, or 2 percent, to $421 million in the second quarter 2015, compared to $413 million in the first quarter 2015, primarily due to an increase in loan volume and one additional day in the quarter.
•
Net charge-offs were $18 million, or 0.15 percent of average loans, in the second quarter 2015, compared to $8 million, or 0.07 percent, in the first quarter 2015. The provision for credit losses increased to $47 million in the second quarter 2015, primarily as a result of an increase in reserves for energy exposure.
•
Noninterest income increased $6 million in the second quarter 2015, primarily due to an increase in card fees, as well as small increases in several other fee categories, partially offset by a decrease in commercial lending fees.
•
Noninterest expenses decreased $23 million in the second quarter 2015, primarily reflecting a $31 million decrease in litigation-related expense and a seasonal decrease in salaries and benefits expense, partially offset by an increase in outside processing fees.
•
Capital remained solid at June 30, 2015, as evidenced by an estimated common equity Tier 1 capital ratio of 10.53 percent and a tangible common equity ratio of 9.92 percent.
•
The quarterly dividend increased 5 percent, to $0.21 per share in the second quarter 2015, and Comerica repurchased approximately 1.0 million shares of common stock and 500,000 warrants under the equity repurchase program. These equity repurchases, together with dividends, returned $96 million to shareholders.
Second Quarter 2015 Compared to Second Quarter 2014
•
Average total loans increased $2.1 billion, or 5 percent, reflecting increases in almost all lines of business.
•
Average total deposits increased $4.0 billion, or 8 percent, driven by increases in noninterest-bearing deposits of $3.4 billion, or 14 percent, and money market and NOW deposits of $1.4 billion, or 6 percent, partially offset by decreases in other deposit categories. Average deposits increased in all major lines of business and markets.
•
Net interest income increased $5 million, largely due to loan growth, partially offset by an $8 million decrease in accretion on the purchased loan portfolio.
•
The provision for credit losses increased $36 million, primarily as a result of an increase in reserves for energy exposure.
•
Excluding the impact of a change to the accounting presentation for a card program, which increased both noninterest income and noninterest expenses by $44 million in the second quarter 2015, noninterest income decreased $3 million, primarily reflecting increases in fiduciary income, service charges and card fees, which were more than offset by declines in foreign exchange income and several non-fee categories; and noninterest expenses decreased $12 million, largely reflecting a $33 million reduction in litigation-related expenses, partially offset by higher outside processing expenses related to revenue generating activities and an increase in technology-related contract labor expenses.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 3

Net Interest Income
(dollar amounts in millions)
2nd Qtr '15
 
1st Qtr '15
 
2nd Qtr '14
Net interest income
$
421

 
$
413

 
$
416

 
 
 
 
 
 
Net interest margin
2.65
%
 
2.64
%
 
2.78
%
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Total earning assets
$
63,981

 
$
63,480

 
$
60,148

Total loans
48,833

 
48,151

 
46,725

Total investment securities
9,936

 
9,907

 
9,364

Federal Reserve Bank deposits
4,968

 
5,176

 
3,801

 
 
 
 
 
 
 
 
 
 
 
 
Total deposits
57,398

 
56,990

 
53,384

Total noninterest-bearing deposits
27,365

 
26,697

 
24,011

•
Net interest income increased $8 million to $421 million in the second quarter 2015, compared to the first quarter 2015.
◦
Interest on loans increased $11 million, primarily reflecting the benefit from an increase in average loan balances (+$5 million), the impact of one additional day in the second quarter (+$4 million) and an increase in yields (+$2 million), in part reflecting an increase in LIBOR rates.
◦
The increase in interest on loans was partially offset by decreases totaling $3 million resulting primarily from lower yields on investment securities, a decrease in average Federal Reserve Bank deposit balances and an increase in interest expense on debt.
•
The net interest margin of 2.65 percent increased 1 basis point compared to the first quarter 2015, primarily due to higher loan yields.
Noninterest Income
Noninterest income increased $6 million in the second quarter 2015, compared to $255 million for the first quarter 2015. The increase primarily reflected a $5 million increase in card fees as well as small increases in service charges on deposit accounts, fiduciary income and brokerage fees, partially offset by a $3 million decrease in commercial lending fees. The increase in card fees primarily reflected increased revenue from merchant payment processing services and interchange. The decrease in commercial lending fees was primarily due to decreases in unused commitment fees and syndication agent fees.
Noninterest Expenses
Noninterest expenses decreased $23 million in the second quarter 2015, compared to $459 million for the first quarter 2015, primarily reflecting a $31 million decrease in litigation-related expenses and a $2 million decrease in salaries and benefits expense, partially offset by an $8 million increase in outside processing fees associated with revenue-generating activities. Related to litigation expense, on July 1, 2015, the Montana Supreme Court issued a ruling favorable to Comerica on a lender liability case, which reversed a jury verdict and sent the case back for a new trial. The decrease in salaries and benefits expense primarily reflected seasonal decreases in payroll taxes and share-based compensation expense, partially offset by an increase in technology-related contract labor expense and the impact on salaries of merit increases and one additional day in the second quarter.
Credit Quality
"Overall, credit quality remained solid.  Net charge-offs continued to be well below normal levels at 15 basis points, or $18 million," said Babb." Net charge-offs related to our energy exposure were nominal. The provision for credit losses increased from a very low level due to an increase in criticized loans related to energy, as well as uncertainty due to continued volatility and the sustained low oil and gas prices. The reserve to total loans ratio increased to 1.24 percent, and the reserve covered nonperforming loans 1.7 times.
"Our Energy customers are generally decreasing their loan commitments and outstandings as they take the necessary actions to adjust to lower energy prices, such as reducing their expenses, disposing of assets, and tapping the capital markets.  On average, loan to values remained stable from the last redetermination.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 4

Over the past 30 years, we have built our energy business with a strategy to withstand the ups and downs of the cycles." 
(dollar amounts in millions)
2nd Qtr '15
 
1st Qtr '15
 
2nd Qtr '14
Net loan charge-offs
$
18

 
$
8

 
$
9

Net loan charge-offs/Average total loans
0.15
%
 
0.07
%
 
0.08
%
 
 
 
 
 
 
Provision for credit losses
$
47

 
$
14

 
$
11

 
 
 
 
 
 
Nonperforming loans (a)
361

 
279

 
347

Nonperforming assets (NPAs) (a)
370

 
288

 
360

NPAs/Total loans and foreclosed property
0.74
%
 
0.59
%
 
0.75
%
 
 
 
 
 
 
Loans past due 90 days or more and still accruing
$
18

 
$
12

 
$
7

 
 
 
 
 
 
Allowance for loan losses
618

 
601

 
591

Allowance for credit losses on lending-related commitments (b)
50

 
39

 
42

Total allowance for credit losses
668

 
640

 
633

 
 
 
 
 
 
Allowance for loan losses/Period-end total loans
1.24
%
 
1.22
%
 
1.23
%
Allowance for loan losses/Nonperforming loans
171

 
216

 
170

(a)
Excludes loans acquired with credit impairment.
(b)
Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.
•
The provision for credit losses increased to $47 million in the second quarter 2015, primarily reflecting higher reserves for loans related to energy(a) as a result of an increase in criticized loans and the impact of continued volatility and sustained low energy prices. To a lesser extent, Technology and Life Sciences as well as Corporate Banking contributed to the increase in the provision, largely as a result of charge-offs and variability. These increases were partially offset by credit quality improvements in the remainder of the portfolio.
•
Net charge-offs increased $10 million to $18 million, or 0.15 percent of average loans, in the second quarter 2015, compared to $8 million, or 0.07 percent, in the first quarter 2015.
•
During the second quarter 2015, $145 million of borrower relationships over $2 million were transferred to nonaccrual status, of which $100 million were loans related to energy.
•
Criticized loans increased $294 million to $2.4 billion at June 30, 2015, compared to $2.1 billion at March 31, 2015, reflecting an increase of approximately $329 million in criticized loans related to energy.













(a) Loans related to energy at June 30, 2015 included approximately $3.3 billion of outstanding loans in our Energy business line as well as approximately $725 million of loans in other lines of business to companies that have a sizable portion of their revenue related to energy or could be otherwise disproportionately negatively impacted by prolonged low oil and gas prices.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 5

Balance Sheet and Capital Management
Total assets and common shareholders' equity were $69.9 billion and $7.5 billion, respectively, at June 30, 2015, compared to $69.3 billion and $7.5 billion, respectively, at March 31, 2015.
There were approximately 178 million common shares outstanding at June 30, 2015. Share repurchases of $49 million (1.0 million shares) and warrant repurchases of $10 million (500,000 warrants) under the equity repurchase program, combined with dividends of 21 cents per share, returned 71 percent of second quarter 2015 net income to shareholders. Diluted average shares remained stable at 182 million for the second quarter 2015, as an increase in share dilution from options and warrants due to an increase in Comerica's average stock price offset the impact of equity repurchases.
The estimated common equity Tier 1 capital ratio, reflective of transition provisions and excluding accumulated other comprehensive income ("AOCI"), was 10.53 percent at June 30, 2015. Certain deductions and adjustments to regulatory capital began phasing in on January 1, 2015 and will be fully implemented on January 1, 2018. The estimated ratio under fully phased-in Basel III capital rules is not significantly different from the transitional ratio. Comerica's tangible common equity ratio was 9.92 percent at June 30, 2015, a decrease of 5 basis points from March 31, 2015.
Full-Year 2015 Outlook
Management expectations for full-year 2015 compared to full-year 2014, assuming a continuation of the current economic and low-rate environment, are as follows:
•
Average full-year loan growth consistent with 2014, reflecting seasonal declines in Mortgage Banker Finance and National Dealer Services in the second half of the year, a continued decline in Energy, and a sustained focus on pricing and structure discipline.
•
Net interest income relatively stable, assuming no rise in interest rates, reflecting a decrease of about $30 million in purchase accounting accretion, to about $6 million, and the impact of a continuing low rate environment on asset yields, offset by earning asset growth.
•
Provision for credit losses higher, with third and fourth quarter net charge-offs each at levels similar to the second quarter. If energy prices remain low, continued negative migration is possible, which may be offset by lower exposure balances.
•
Noninterest income relatively stable, excluding the impact of the change in accounting presentation for a card program. Stable noninterest income reflects growth in fee income, particularly card fees and fiduciary income, mostly offset by a decline in warrant income and regulatory impacts on letter of credit and derivative income.
•
Noninterest expenses higher, excluding the impact of the change in accounting presentation for a card program, with continued focus on driving efficiencies for the long term. Expenses for the second half of 2015 are expected to be higher than the first half, reflecting three more days in the second half, the impact of merit increases, a ramp-up in the second half of technology and regulatory expenses, as well as higher pension, outside processing and occupancy expenses.
•
Income tax expense to approximate 32 percent of pre-tax income.


-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 6

Business Segments
Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at June 30, 2015 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2015 results compared to first quarter 2015.
The following table presents net income (loss) by business segment.
(dollar amounts in millions)
2nd Qtr '15
 
1st Qtr '15
 
2nd Qtr '14
Business Bank
$
182

81
%
 
$
189

85
%
 
$
197

82
%
Retail Bank
18

8

 
17

8

 
16

7

Wealth Management
26

11

 
16

7

 
25

11

 
226

100
%
 
222

100
%
 
238

100
%
Finance
(90
)
 
 
(89
)
 
 
(91
)
 
Other (a)
(1
)
 
 
1

 
 
4

 
     Total
$
135

 
 
$
134

 
 
$
151

 
(a) Includes items not directly associated with the three major business segments or the Finance Division.
Business Bank
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
375

 
$
370

 
$
375

Provision for credit losses
61

 
25

 
35

Noninterest income
140

 
142

 
100

Noninterest expenses
176

 
200

 
143

Net income
182

 
189

 
197

 
 
 
 
 
 
Net credit-related charge-offs
22

 
9

 
9

 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
39,135

 
38,654

 
37,305

Loans
38,109

 
37,623

 
36,367

Deposits
30,229

 
30,143

 
27,351

•
Average loans increased $486 million, primarily reflecting increases in Mortgage Banker Finance, general Middle Market and National Dealer Services, partially offset by decreases in Energy and Corporate Banking.
•
Average deposits increased $86 million, primarily reflecting increases in Technology and Life Sciences, general Middle Market and Corporate Banking, partially offset by a decrease in Commercial Real Estate.
•
Net interest income increased $5 million, primarily due to the benefit from an increase in average loan balances and one more day in the quarter, partially offset by a lower funds transfer pricing (FTP) crediting rate.
•
The provision for credit losses increased $36 million, reflecting higher reserves for loans related to energy as a result of an increase in criticized loans and the impact of continued volatility and sustained low energy prices. To a lesser extent, Technology and Life Sciences as well as Corporate Banking contributed to the increase in the provision, largely as a result of charge-offs and variability. These increases were partially offset by credit quality improvements in the remainder of the portfolio.
•
Noninterest income decreased $2 million, primarily due to decreases in customer derivative income and commercial lending fees, partially offset by an increase in card fees.
•
Noninterest expenses decreased $24 million, primarily driven by a reduction in litigation-related expense, partially offset by an increase in outside processing fees.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 7

Retail Bank
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
155

 
$
151

 
$
152

Provision for credit losses
(8
)
 
(8
)
 
(6
)
Noninterest income
46

 
42

 
41

Noninterest expenses
182

 
175

 
174

Net income
18

 
17

 
16

 
 
 
 
 
 
Net credit-related charge-offs
1

 
—

 
3

 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
6,459

 
6,368

 
6,222

Loans
5,770

 
5,694

 
5,554

Deposits
22,747

 
22,404

 
21,890

•
Average loans increased $76 million, largely due to an increase in Small Business.
•
Average deposits increased $343 million, primarily reflecting an increase in noninterest-bearing deposits.
•
Net interest income increased $4 million, primarily due to an increase in net FTP credits, largely due to the increase in average deposits and the impact of one additional day in the quarter.
•
Noninterest income increased $4 million, due to small increases in several fee categories.
•
Noninterest expenses increased $7 million, primarily reflecting an increase in outside processing fees and salaries expense. Salaries expense increased primarily due to the impact of merit increases and one additional day in the quarter.
Wealth Management
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
45

 
$
43

 
$
44

Provision for credit losses
(9
)
 
(1
)
 
(10
)
Noninterest income
60

 
58

 
62

Noninterest expenses
74

 
77

 
76

Net income
26

 
16

 
25

 
 
 
 
 
 
Net credit-related charge-offs (recoveries)
(5
)
 
(1
)
 
(3
)
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
5,153

 
5,029

 
4,987

Loans
4,954

 
4,834

 
4,804

Deposits
4,060

 
3,996

 
3,616

•
Average loans increased $120 million.
•
Average deposits increased $64 million, primarily reflecting an increase in noninterest-bearing deposits.
•
Net interest income increased $2 million, largely driven by the increase in average loan balances and one additional day in the quarter.
•
The provision for credit losses decreased $8 million, primarily reflecting credit quality improvement.
•
Noninterest income increased $2 million, primarily reflecting the impact of a securities loss in the first quarter which was not repeated.
•
Noninterest expenses decreased $3 million, reflecting small decreases in several categories.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 8

Geographic Market Segments
Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. The tables below present the geographic market results based on the methodologies in effect at June 30, 2015 and are presented on a fully taxable equivalent (FTE) basis.
The following table presents net income (loss) by market segment.
(dollar amounts in millions)
2nd Qtr '15
 
1st Qtr '15
 
2nd Qtr '14
Michigan
$
98

44
%
 
$
73

33
%
 
$
77

32
%
California
71

31

 
73

33

 
63

27

Texas
14

6

 
32

14

 
39

16

Other Markets
43

19

 
44

20

 
59

25

 
226

100
%
 
222

100
%
 
238

100
%
Finance & Other (a)
(91
)
 
 
(88
)
 
 
(87
)
 
     Total
$
135

 
 
$
134

 
 
$
151

 
(a) Includes items not directly associated with the geographic markets.
•
Average loans increased $236 million in California and $67 million in Michigan (primarily general Middle Market), and decreased $281 million in Texas (primarily Energy). The increase in California was led by Technology and Life Sciences, National Dealer Services and Private Banking.
•
Average deposits increased $438 million in California and decreased $51 million and $4 million in Texas and Michigan, respectively. The increase in California was primarily due to increases in Technology and Life Sciences and general Middle Market, partially offset by a decrease in Commercial Real Estate.
•
Net interest income increased $5 million and $2 million in California and Michigan, respectively, and decreased $1 million in Texas. The increase in California primarily reflected the benefit from an increase in loan balances, while the decrease in Texas was primarily the result of decreased loan balances. Net interest income in all three markets reflected the benefit from one additional day in the quarter.
•
Net charge-offs decreased $5 million in Michigan, and increased $5 million in California and $2 million in Texas. The provision for credit losses decreased $5 million in Michigan and increased $7 million in California and $22 million in Texas. The decrease in Michigan primarily reflected improved credit quality throughout the portfolio. The increase in Texas was driven by higher reserves due to an increase in criticized loans related to energy and the impact of continued volatility and sustained low energy prices, while the increase in California primarily reflected higher reserves in Technology and Life Sciences.
•
Noninterest income increased $5 million in Michigan, remained unchanged in California and decreased $5 million in Texas. The increase in Michigan primarily reflected small increases in several fee categories. The decrease in Texas was primarily due to decreases in commercial lending fees, customer derivative income and foreign exchange income.
•
Noninterest expenses decreased $26 million in Michigan, primarily reflecting a decrease in litigation-related expense, decreased $2 million in Texas and increased $1 million in California.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 9

Michigan Market
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
179

 
$
177

 
$
182

Provision for credit losses
(13
)
 
(8
)
 
(9
)
Noninterest income
85

 
80

 
89

Noninterest expenses
128

 
154

 
159

Net income
98

 
73

 
77

 
 
 
 
 
 
Net credit-related charge-offs (recoveries)
(2
)
 
3

 
10

 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
13,852

 
13,736

 
13,851

Loans
13,290

 
13,223

 
13,482

Deposits
21,706

 
21,710

 
20,694

California Market
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
181

 
$
176

 
$
176

Provision for credit losses
4

 
(3
)
 
14

Noninterest income
37

 
37

 
38

Noninterest expenses
100

 
99

 
100

Net income
71

 
73

 
63

 
 
 
 
 
 
Net credit-related charge-offs
6

 
1

 
5

 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
16,696

 
16,461

 
15,721

Loans
16,429

 
16,193

 
15,439

Deposits
17,275

 
16,837

 
15,370

Texas Market
(dollar amounts in millions)
2nd Qtr '15

 
1st Qtr '15

 
2nd Qtr '14

Net interest income (FTE)
$
130

 
$
131

 
$
137

Provision for credit losses
43

 
21

 
22

Noninterest income
31

 
36

 
35

Noninterest expenses
94

 
96

 
89

Net income
14

 
32

 
39

 
 
 
 
 
 
Net credit-related charge-offs
5

 
3

 
2

 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
Assets
11,878

 
12,192

 
11,661

Loans
11,254

 
11,535

 
10,966

Deposits
10,959

 
11,010

 
10,724


-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 10

Conference Call and Webcast
Comerica will host a conference call to review second quarter 2015 financial results at 8 a.m. CT Friday, July 17, 2015. Interested parties may access the conference call by calling (877) 523-5249 or (210) 591-1147 (event ID No. 61399381). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can be accessed via Comerica's “Investor Relations” page at www.comerica.com.
Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

-more-

COMERICA REPORTS SECOND QUARTER 2015 NET INCOME OF $135 MILLION - 11

Forward-looking Statements
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including changes in interest rates; changes in regulation or oversight; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers, including the energy industry; operational difficulties, failure of technology infrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; factors impacting noninterest expenses which are beyond Comerica's control; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; changes in Comerica's credit rating; unfavorable developments concerning credit quality; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2014. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
 
Media Contact:
Investor Contacts:
Wayne J. Mielke
Darlene P. Persons
(214) 462-4463
(214) 462-6831
 
 
 
Chelsea R. Smith
 
(214) 462-6834






CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
 
 
 
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
June 30,
March 31,
June 30,
 
June 30,
(in millions, except per share data)
2015
2015
2014
 
2015
2014
PER COMMON SHARE AND COMMON STOCK DATA
 
 
 
 
 
 
Diluted net income
$
0.73

$
0.73

$
0.80

 
$
1.46

$
1.54

Cash dividends declared
0.21

0.20

0.20

 
0.41

0.39

 
 
 
 
 
 
 
Average diluted shares (in thousands)
182,422

182,268

186,108

 
182,281

186,402

KEY RATIOS
 
 
 
 
 
 
Return on average common shareholders' equity
7.21
%
7.20
%
8.27
%
 
7.20
%
7.97
%
Return on average assets
0.79

0.78

0.93

 
0.78

0.90

Common equity tier 1 risk-based capital ratio (a) (b)
10.53

10.40

n/a

 
 
 
Tier 1 common risk-based capital ratio (c)
n/a

n/a

10.50

 
 
 
Tier 1 risk-based capital ratio (a) (b)
10.53

10.40

10.50

 
 
 
Total risk-based capital ratio (a) (b)
12.53

12.35

12.52

 
 
 
Leverage ratio (a) (b)
10.57

10.53

10.93

 
 
 
Tangible common equity ratio (c)
9.92

9.97

10.39

 
 
 
AVERAGE BALANCES
 
 
 
 
 
 
Commercial loans
$
31,788

$
31,090

$
29,890

 
$
31,442

$
29,130

Real estate construction loans
1,807

1,938

1,913

 
1,872

1,871

Commercial mortgage loans
8,672

8,581

8,749

 
8,627

8,759

Lease financing
795

797

850

 
796

849

International loans
1,453

1,512

1,328

 
1,482

1,315

Residential mortgage loans
1,877

1,856

1,773

 
1,866

1,749

Consumer loans
2,441

2,377

2,222

 
2,409

2,232

Total loans
48,833

48,151

46,725

 
48,494

45,905

 
 
 
 
 
 
 
Earning assets
63,981

63,480

60,148

 
63,732

60,033

Total assets
68,963

68,735

64,878

 
68,852

64,794

 
 
 
 
 
 
 
Noninterest-bearing deposits
27,365

26,697

24,011

 
27,033

23,626

Interest-bearing deposits
30,033

30,293

29,373

 
30,163

29,453

Total deposits
57,398

56,990

53,384

 
57,196

53,079

 
 
 
 
 
 
 
Common shareholders' equity
7,512

7,453

7,331

 
7,482

7,280

NET INTEREST INCOME (fully taxable equivalent basis)
 
 
 
 
 
 
Net interest income
$
422

$
414

$
417

 
$
836

$
828

Net interest margin
2.65
%
2.64
%
2.78
%
 
2.65
%
2.78
%
CREDIT QUALITY
 
 
 
 
 
 
Total nonperforming assets
$
370

$
288

$
360

 
 
 
 
 
 
 
 
 
 
Loans past due 90 days or more and still accruing
18

12

7

 
 
 
 
 
 
 
 
 
 
Net loan charge-offs
18

8

9

 
$
26

$
21

 
 
 
 
 
 
 
Allowance for loan losses
618

601

591

 
 
 
Allowance for credit losses on lending-related commitments
50

39

42

 
 
 
Total allowance for credit losses
668

640

633

 
 
 
 
 
 
 
 
 
 
Allowance for loan losses as a percentage of total loans
1.24
%
1.22
%
1.23
%
 
 
 
Net loan charge-offs as a percentage of average total loans
0.15

0.07

0.08

 
0.11
%
0.09
%
Nonperforming assets as a percentage of total loans and foreclosed property
0.74

0.59

0.75

 
 
 
Allowance for loan losses as a percentage of total nonperforming loans
171

216

170

 
 
 
(a)
Basel III rules became effective on January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules.
(b)
June 30, 2015 ratios are estimated.
(c)
See Reconciliation of Non-GAAP Financial Measures.
n/a - not applicable.

12


 CONSOLIDATED BALANCE SHEETS
 Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
June 30,
March 31,
December 31,
June 30,
(in millions, except share data)
2015
2015
2014
2014
 
(unaudited)
(unaudited)
 
(unaudited)
ASSETS
 
 
 
 
Cash and due from banks
$
1,148

$
1,170

$
1,026

$
1,226

 
 
 
 
 
Interest-bearing deposits with banks
4,817

4,792

5,045

2,668

Other short-term investments
119

101

99

109

 
 
 
 
 
Investment securities available-for-sale
8,267

8,214

8,116

9,534

Investment securities held-to-maturity
1,952

1,871

1,935

—

 
 
 
 
 
Commercial loans
32,723

32,091

31,520

30,986

Real estate construction loans
1,795

1,917

1,955

1,939

Commercial mortgage loans
8,674

8,558

8,604

8,747

Lease financing
786

792

805

822

International loans
1,420

1,433

1,496

1,352

Residential mortgage loans
1,865

1,859

1,831

1,775

Consumer loans
2,478

2,422

2,382

2,261

Total loans
49,741

49,072

48,593

47,882

Less allowance for loan losses
(618
)
(601
)
(594
)
(591
)
Net loans
49,123

48,471

47,999

47,291

 
 
 
 
 
Premises and equipment
541

531

532

562

Accrued income and other assets
3,978

4,183

4,434

3,933

Total assets
$
69,945

$
69,333

$
69,186

$
65,323

 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
Noninterest-bearing deposits
$
28,167

$
27,394

$
27,224

$
24,774

 
 
 
 
 
Money market and interest-bearing checking deposits
23,786

23,727

23,954

22,555

Savings deposits
1,841

1,817

1,752

1,731

Customer certificates of deposit
4,367

4,497

4,421

4,962

Foreign office time deposits
99

135

135

148

Total interest-bearing deposits
30,093

30,176

30,262

29,396

Total deposits
58,260

57,570

57,486

54,170

 
 
 
 
 
Short-term borrowings
56

80

116

176

Accrued expenses and other liabilities
1,265

1,500

1,507

990

Medium- and long-term debt
2,841

2,683

2,675

2,618

Total liabilities
62,422

61,833

61,784

57,954

 
 
 
 
 
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
2,158

2,188

2,188

2,175

Accumulated other comprehensive loss
(396
)
(370
)
(412
)
(304
)
Retained earnings
6,908

6,841

6,744

6,520

Less cost of common stock in treasury - 49,803,515 shares at 6/30/15, 50,114,399 shares at March 31, 2015, 49,146,225 shares at 12/31/14, and 47,194,492 shares at 6/30/14
(2,288
)
(2,300
)
(2,259
)
(2,163
)
Total shareholders' equity
7,523

7,500

7,402

7,369

Total liabilities and shareholders' equity
$
69,945

$
69,333

$
69,186

$
65,323



13


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)
2015
2014
 
2015
2014
INTEREST INCOME
 
 
 
 
 
Interest and fees on loans
$
389

$
385

 
$
767

$
761

Interest on investment securities
52

53

 
105

108

Interest on short-term investments
3

3

 
7

7

Total interest income
444

441

 
879

876

INTEREST EXPENSE
 
 
 
 
 
Interest on deposits
11

11

 
22

22

Interest on medium- and long-term debt
12

14

 
23

28

Total interest expense
23

25

 
45

50

Net interest income
421

416

 
834

826

Provision for credit losses
47

11

 
61

20

Net interest income after provision for credit losses
374

405

 
773

806

NONINTEREST INCOME
 
 
 
 
 
Service charges on deposit accounts
56

54

 
111

108

Fiduciary income
48

45

 
95

89

Commercial lending fees
22

23

 
47

43

Card fees
72

22

 
139

45

Letter of credit fees
13

15

 
26

29

Bank-owned life insurance
10

11

 
19

20

Foreign exchange income
9

12

 
19

21

Brokerage fees
5

4

 
9

9

Net securities (losses) gains
—

—

 
(2
)
1

Other noninterest income
26

34

 
53

63

Total noninterest income
261

220

 
516

428

NONINTEREST EXPENSES
 
 
 
 
 
Salaries and benefits expense
251

240

 
504

487

Net occupancy expense
39

39

 
77

79

Equipment expense
13

15

 
26

29

Outside processing fee expense
85

30

 
162

58

Software expense
24

25

 
47

47

Litigation-related expense
(30
)
3

 
(29
)
6

FDIC insurance expense
9

8

 
18

16

Advertising expense
6

5

 
12

11

Other noninterest expenses
39

39

 
78

77

Total noninterest expenses
436

404

 
895

810

Income before income taxes
199

221

 
394

424

Provision for income taxes
64

70

 
125

134

NET INCOME
135

151

 
269

290

Less income allocated to participating securities
1

2

 
3

4

Net income attributable to common shares
$
134

$
149

 
$
266

$
286

Earnings per common share:
 
 
 
 
 
Basic
$
0.76

$
0.83

 
$
1.51

$
1.59

Diluted
0.73

0.80

 
1.46

1.54

 
 
 
 
 
 
Comprehensive income
109

172

 
285

377

 
 
 
 
 
 
Cash dividends declared on common stock
37

36

 
73

71

Cash dividends declared per common share
0.21

0.20

 
0.41

0.39



14


CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Second
First
Fourth
Third
Second
 
Second Quarter 2015 Compared To:
 
Quarter
Quarter
Quarter
Quarter
Quarter
 
First Quarter 2015
 
Second Quarter 2014
(in millions, except per share data)
2015
2015
2014
2014
2014
 
 Amount
  Percent
 
Amount
  Percent
INTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
Interest and fees on loans
$
389

$
378

$
383

$
381

$
385

 
$
11

3
 %
 
$
4

1
 %
Interest on investment securities
52

53

51

52

53

 
(1
)
(1
)
 
(1
)
(2
)
Interest on short-term investments
3

4

4

3

3

 
(1
)
(9
)
 
—

—

Total interest income
444

435

438

436

441

 
9

2

 
3

1

INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
 
 
Interest on deposits
11

11

12

11

11

 
—

—

 
—

—

Interest on medium- and long-term debt
12

11

11

11

14

 
1

5

 
(2
)
(8
)
Total interest expense
23

22

23

22

25

 
1

2

 
(2
)
(5
)
Net interest income
421

413

415

414

416

 
8

2

 
5

1

Provision for credit losses
47

14

2

5

11

 
33

n/m

 
36

n/m

Net interest income after provision
for credit losses
374

399

413

409

405

 
(25
)
(6
)
 
(31
)
(8
)
NONINTEREST INCOME
 
 
 
 
 
 
 
 
 
 
 
Service charges on deposit accounts
56

55

53

54

54

 
1

3

 
2

4

Fiduciary income
48

47

47

44

45

 
1

1

 
3

6

Commercial lending fees
22

25

29

26

23

 
(3
)
(9
)
 
(1
)
(3
)
Card fees
72

67

24

23

22

 
5

7

 
50

n/m

Letter of credit fees
13

13

14

14

15

 
—

—

 
(2
)
(8
)
Bank-owned life insurance
10

9

8

11

11

 
1

5

 
(1
)
(10
)
Foreign exchange income
9

10

10

9

12

 
(1
)
(11
)
 
(3
)
(24
)
Brokerage fees
5

4

4

4

4

 
1

5

 
1

9

Net securities (losses) gains
—

(2
)
—

(1
)
—

 
2

66

 
—

—

Other noninterest income
26

27

36

31

34

 
(1
)
(4
)
 
(8
)
(24
)
Total noninterest income
261

255

225

215

220

 
6

2

 
41

18

NONINTEREST EXPENSES
 
 
 
 
 
 
 
 
 
 
 
Salaries and benefits expense
251

253

245

248

240

 
(2
)
(1
)
 
11

5

Net occupancy expense
39

38

46

46

39

 
1

3

 
—

—

Equipment expense
13

13

14

14

15

 
—

—

 
(2
)
(12
)
Outside processing fee expense
85

77

33

31

30

 
8

12

 
55

n/m

Software expense
24

23

23

25

25

 
1

1

 
(1
)
(3
)
Litigation-related expense
(30
)
1

—

(2
)
3

 
(31
)
n/m

 
(33
)
n/m

FDIC insurance expense
9

9

8

9

8

 
—

—

 
1

7

Advertising expense
6

6

7

5

5

 
—

—

 
1

—

Gain on debt redemption
—

—

—

(32
)
—

 
—

—

 
—

—

Other noninterest expenses
39

39

43

53

39

 
—

—

 
—

—

Total noninterest expenses
436

459

419

397

404

 
(23
)
(5
)
 
32

8

Income before income taxes
199

195

219

227

221

 
4

3

 
(22
)
(10
)
Provision for income taxes
64

61

70

73

70

 
3

6

 
(6
)
(8
)
NET INCOME
135

134

149

154

151

 
1

1

 
(16
)
(11
)
Less income allocated to participating securities
1

2

1

2

2

 
(1
)
—

 
(1
)
—

Net income attributable to common shares
$
134

$
132

$
148

$
152

$
149

 
$
2

1
 %
 
$
(15
)
(11
)%
Earnings per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.76

$
0.75

$
0.83

$
0.85

$
0.83

 
$
0.01

1
 %
 
$
(0.07
)
(8
)%
Diluted
0.73

0.73

0.80

0.82

0.80

 
—

—

 
(0.07
)
(9
)
 
 
 
 
 
 
 

 
 
 
 
Comprehensive income
109

176

54

141

172

 
(67
)
(38
)
 
(63
)
(37
)
 
 
 
 
 
 
 
 
 
 
 
 
Cash dividends declared on common stock
37

36

36

36

36

 
1

5

 
1

3

Cash dividends declared per common share
0.21

0.20

0.20

0.20

0.20

 
0.01

5

 
0.01

5

n/m - not meaningful

15


ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
(in millions)
2nd Qtr
1st Qtr
 
4th Qtr
3rd Qtr
2nd Qtr
 
 
 
 
 
 
 
Balance at beginning of period
$
601

$
594

 
$
592

$
591

$
594

 
 
 
 
 
 
 
Loan charge-offs:
 
 
 
 
 
 
Commercial
22

19

 
8

13

19

Commercial mortgage
2

—

 
2

7

5

Lease financing
1

—

 
—

—

—

International
6

2

 
6

—

—

Residential mortgage
1

—

 
1

1

—

Consumer
3

2

 
3

3

4

Total loan charge-offs
35

23

 
20

24

28

 
 
 
 
 
 
 
Recoveries on loans previously charged-off:
 
 
 
 
 
 
Commercial
10

9

 
6

6

11

Real estate construction
1

—

 
2

1

1

Commercial mortgage
5

3

 
10

12

3

Residential mortgage
—

1

 
—

1

3

Consumer
1

2

 
1

1

1

Total recoveries
17

15

 
19

21

19

Net loan charge-offs
18

8

 
1

3

9

Provision for loan losses
35

16

 
4

4

6

Foreign currency translation adjustment
—

(1
)
 
(1
)
—

—

Balance at end of period
$
618

$
601

 
$
594

$
592

$
591

 
 
 
 
 
 
 
Allowance for loan losses as a percentage of total loans
1.24
%
1.22
%
 
1.22
%
1.24
%
1.23
%
 
 
 
 
 
 
 
Net loan charge-offs as a percentage of average total loans
0.15

0.07

 
0.01

0.03

0.08



ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
(in millions)
2nd Qtr
1st Qtr
 
4th Qtr
3rd Qtr
2nd Qtr
 
 
 
 
 
 
 
Balance at beginning of period
$
39

$
41

 
$
43

$
42

$
37

Less: Charge-offs on lending-related commitments (a)
1

—

 
—

—

—

Add: Provision for credit losses on lending-related commitments
12

(2
)
 
(2
)
1

5

Balance at end of period
$
50

$
39


$
41

$
43

$
42

 
 
 
 
 
 
 
Unfunded lending-related commitments sold
$
12

$
1

 
$
—

$
9

$
—

(a)
Charge-offs result from the sale of unfunded lending-related commitments.


16


NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
(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
$
186

$
113

 
$
109

$
93

$
72

Real estate construction
1

1

 
2

18

19

Commercial mortgage
77

82

 
95

144

156

Lease financing
11

—

 
—

—

—

International
9

1

 
—

—

—

Total nonaccrual business loans
284

197

 
206

255

247

Retail loans:
 
 
 
 
 
 
Residential mortgage
35

37

 
36

42

45

Consumer:
 
 
 
 
 
 
Home equity
29

31

 
30

31

32

Other consumer
1

1

 
1

1

2

Total consumer
30

32

 
31

32

34

Total nonaccrual retail loans
65

69

 
67

74

79

Total nonaccrual loans
349

266

 
273

329

326

Reduced-rate loans
12

13

 
17

17

21

Total nonperforming loans (a)
361

279

 
290

346

347

Foreclosed property
9

9

 
10

11

13

Total nonperforming assets (a)
$
370

$
288

 
$
300

$
357

$
360

 
 
 
 
 
 
 
Nonperforming loans as a percentage of total loans
0.72
%
0.57
%
 
0.60
%
0.73
%
0.73
%
Nonperforming assets as a percentage of total loans
 and foreclosed property
0.74

0.59

 
0.62

0.75

0.75

Allowance for loan losses as a percentage of total
nonperforming loans
171

216

 
205

171

170

Loans past due 90 days or more and still accruing
$
18

$
12

 
$
5

$
13

$
7

 
 
 
 
 
 
 
ANALYSIS OF NONACCRUAL LOANS
 
 
 
 
 
 
Nonaccrual loans at beginning of period
$
266

$
273

 
$
329

$
326

$
317

Loans transferred to nonaccrual (b)
145

39

 
41

54

53

Nonaccrual business loan gross charge-offs (c)
(31
)
(21
)
 
(16
)
(20
)
(24
)
Loans transferred to accrual status (b)
—

(4
)
 
(18
)
—

—

Nonaccrual business loans sold (d)
(1
)
(2
)
 
(24
)
(3
)
(6
)
Payments/Other (e)
(30
)
(19
)
 
(39
)
(28
)
(14
)
Nonaccrual loans at end of period
$
349

$
266

 
$
273

$
329

$
326

(a) Excludes loans acquired with credit impairment.
(b) Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(c) Analysis of gross loan charge-offs:
 
 
 
 
 
 
Nonaccrual business loans
$
31

$
21

 
$
16

$
20

$
24

Consumer and residential mortgage loans
4

2

 
4

4

4

Total gross loan charge-offs
$
35

$
23

 
$
20

$
24

$
28

(d) Analysis of loans sold:
 
 
 
 
 
 
      Nonaccrual business loans
$
1

$
2

 
$
24

$
3

$
6

      Performing criticized loans
—

7

 
5

—

8

Total criticized loans sold
$
1

$
9

 
$
29

$
3

$
14

(e) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold.

17


ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
Average
 
Average
 
Average
 
Average
(dollar amounts in millions)
Balance
Interest
Rate
 
Balance
Interest
Rate
 
 
 
 
 
 
 
 
Commercial loans
$
31,442

$
478

3.06
%
 
$
29,130

$
453

3.13
%
Real estate construction loans
1,872

32

3.43

 
1,871

32

3.42

Commercial mortgage loans
8,627

146

3.41

 
8,759

170

3.92

Lease financing
796

12

3.12

 
849

16

3.66

International loans
1,482

27

3.69

 
1,315

24

3.66

Residential mortgage loans
1,866

35

3.77

 
1,749

33

3.84

Consumer loans
2,409

39

3.23

 
2,232

35

3.19

Total loans (a)
48,494

769

3.19

 
45,905

763

3.35

 
 
 
 
 
 
 
 
Mortgage-backed securities (b)
9,064

100

2.24

 
8,954

107

2.39

Other investment securities
858

5

1.13

 
369

1

0.44

Total investment securities (b)
9,922

105

2.15

 
9,323

108

2.31

 
 
 
 
 
 
 
 
Interest-bearing deposits with banks
5,216

7

0.25

 
4,695

7

0.26

Other short-term investments
100

—

0.75

 
110

—

0.63

Total earning assets
63,732

881

2.79

 
60,033

878

2.94

 
 
 
 
 
 
 
 
Cash and due from banks
1,034

 
 
 
917

 
 
Allowance for loan losses
(607
)
 
 
 
(602
)
 
 
Accrued income and other assets
4,693

 
 
 
4,446

 
 
Total assets
$
68,852

 
 
 
$
64,794

 
 
 
 
 
 
 
 
 
 
Money market and interest-bearing checking deposits
$
23,809

13

0.11

 
$
22,279

12

0.11

Savings deposits
1,810

—

0.02

 
1,721

—

0.03

Customer certificates of deposit
4,423

8

0.37

 
5,075

9

0.36

Foreign office time deposits
121

1

1.36

 
378

1

0.52

Total interest-bearing deposits
30,163

22

0.14

 
29,453

22

0.15

 
 
 
 
 
 
 
 
Short-term borrowings
94

—

0.05

 
198

—

0.03

Medium- and long-term debt
2,675

23

1.78

 
3,270

28

1.64

Total interest-bearing sources
32,932

45

0.28

 
32,921

50

0.30

 
 
 
 
 
 
 
 
Noninterest-bearing deposits
27,033

 
 
 
23,626

 
 
Accrued expenses and other liabilities
1,405

 
 
 
967

 
 
Total shareholders' equity
7,482

 
 
 
7,280

 
 
Total liabilities and shareholders' equity
$
68,852

 
 
 
$
64,794

 
 
 
 
 
 
 
 
 
 
Net interest income/rate spread (FTE)
 
$
836

2.51

 
 
$
828

2.64

 
 
 
 
 
 
 
 
FTE adjustment
 
$
2

 
 
 
$
2

 
 
 
 
 
 
 
 
 
Impact of net noninterest-bearing sources of funds
 
 
0.14

 
 
 
0.14

Net interest margin (as a percentage of average earning assets) (FTE) (a)
 
 
2.65
%
 
 
 
2.78
%
(a) Accretion of the purchase discount on the acquired loan portfolio of $4 million and $22 million in the six months ended June 30, 2015 and 2014, respectively, increased the net interest margin by 1 basis point and 7 basis points in each respective period.
(b) Includes investment securities available-for-sale and investment securities held-to-maturity.


18


ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
June 30, 2015
 
March 31, 2015
 
June 30, 2014
 
Average
 
Average
 
Average
 
Average
 
Average
 
Average
(dollar amounts in millions)
Balance
Interest
Rate
 
Balance
Interest
Rate
 
Balance
Interest
Rate
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loans
$
31,788

$
244

3.07
%
 
$
31,090

$
234

3.06
%
 
$
29,890

$
231

3.10
%
Real estate construction loans
1,807

16

3.51

 
1,938

16

3.36

 
1,913

16

3.44

Commercial mortgage loans
8,672

73

3.38

 
8,581

73

3.44

 
8,749

85

3.88

Lease financing
795

6

3.19

 
797

6

3.05

 
850

7

3.26

International loans
1,453

13

3.68

 
1,512

14

3.71

 
1,328

12

3.64

Residential mortgage loans
1,877

18

3.78

 
1,856

17

3.76

 
1,773

17

3.82

Consumer loans
2,441

20

3.25

 
2,377

19

3.21

 
2,222

18

3.22

Total loans (a)
48,833

390

3.20

 
48,151

379

3.19

 
46,725

386

3.31

 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities (b)
9,057

49

2.23

 
9,071

51

2.26

 
8,996

53

2.35

Other investment securities
879

3

1.16

 
836

2

1.10

 
368

—

0.46

Total investment securities (b)
9,936

52

2.13

 
9,907

53

2.16

 
9,364

53

2.28

 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits with banks
5,110

3

0.25

 
5,323

4

0.26

 
3,949

3

0.25

Other short-term investments
102

—

0.42

 
99

—

1.11

 
110

—

0.61

Total earning assets
63,981

445

2.79

 
63,480

436

2.78

 
60,148

442

2.95

 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
1,041

 
 
 
1,027

 
 
 
921

 
 
Allowance for loan losses
(613
)
 
 
 
(601
)
 
 
 
(602
)
 
 
Accrued income and other assets
4,554

 
 
 
4,829

 
 
 
4,411

 
 
Total assets
$
68,963

 
 
 
$
68,735

 
 
 
$
64,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market and interest-bearing checking deposits
$
23,659

6

0.11

 
$
23,960

6

0.11

 
$
22,296

6

0.10

Savings deposits
1,834

—

0.02

 
1,786

—

0.03

 
1,742

—

0.03

Customer certificates of deposit
4,422

4

0.37

 
4,423

4

0.37

 
5,041

5

0.36

Foreign office time deposits
118

1

1.26

 
124

1

1.46

 
294

—

0.68

Total interest-bearing deposits
30,033

11

0.14

 
30,293

11

0.15

 
29,373

11

0.15

 
 
 
 
 
 
 
 
 
 
 
 
Short-term borrowings
78

—

0.04

 
110

—

0.06

 
210

—

0.03

Medium- and long-term debt
2,661

12

1.83

 
2,686

11

1.73

 
2,998

14

1.77

Total interest-bearing sources
32,772

23

0.28

 
33,089

22

0.27

 
32,581

25

0.30

 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
27,365

 
 
 
26,697

 
 
 
24,011

 
 
Accrued expenses and other liabilities
1,314

 
 
 
1,496

 
 
 
955

 
 
Total shareholders' equity
7,512

 
 
 
7,453

 
 
 
7,331

 
 
Total liabilities and shareholders' equity
$
68,963

 
 
 
$
68,735

 
 
 
$
64,878

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income/rate spread (FTE)
 
$
422

2.51

 
 
$
414

2.51

 
 
$
417

2.65

 
 
 
 
 
 
 
 
 
 
 
 
FTE adjustment
 
$
1

 
 
 
$
1

 
 
 
$
1

 
 
 
 
 
 
 
 
 
 
 
 
 
Impact of net noninterest-bearing sources of funds
 
 
0.14

 
 
 
0.13

 
 
 
0.13

Net interest margin (as a percentage of average earning assets) (FTE) (a)
 
 
2.65
%
 
 
 
2.64
%
 
 
 
2.78
%
(a) Accretion of the purchase discount on the acquired loan portfolio of $2 million, $2 million and $10 million in the second quarter 2015, the first quarter 2015 and the second quarter 2014, respectively, increased the net interest margin by 1 basis point, 2 basis points and 7 basis points in each respective period.
(b) Includes investment securities available-for-sale and investment securities held-to-maturity.

19


CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
March 31,
December 31,
September 30,
June 30,
(in millions, except per share data)
2015
2015
2014
2014
2014
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
Floor plan
$
3,840

$
3,544

$
3,790

$
3,183

$
3,576

Other
28,883

28,547

27,730

27,576

27,410

Total commercial loans
32,723

32,091

31,520

30,759

30,986

Real estate construction loans
1,795

1,917

1,955

1,992

1,939

Commercial mortgage loans
8,674

8,558

8,604

8,603

8,747

Lease financing
786

792

805

805

822

International loans
1,420

1,433

1,496

1,429

1,352

Residential mortgage loans
1,865

1,859

1,831

1,797

1,775

Consumer loans:
 
 
 
 
 
Home equity
1,682

1,678

1,658

1,634

1,574

Other consumer
796

744

724

689

687

Total consumer loans
2,478

2,422

2,382

2,323

2,261

Total loans
$
49,741

$
49,072

$
48,593

$
47,708

$
47,882

 
 
 
 
 
 
Goodwill
$
635

$
635

$
635

$
635

$
635

Core deposit intangible
11

12

13

14

14

Other intangibles
4

3

2

1

1

 
 
 
 
 
 
Common equity tier 1 capital (a) (b)
7,280

7,230

n/a

n/a

n/a

Tier 1 common capital (c)
n/a

n/a

7,169

7,105

7,027

Risk-weighted assets (a) (b)
69,145

69,514

68,273

67,106

66,911

 
 
 
 
 
 
Common equity tier 1 risk-based capital ratio (a) (b)
10.53
%
10.40
%
n/a

n/a

n/a

Tier 1 common risk-based capital ratio (c)
n/a

n/a

10.50
%
10.59
%
10.50
%
Tier 1 risk-based capital ratio (a) (b)
10.53

10.40

10.50

10.59

10.50

Total risk-based capital ratio (a) (b)
12.53

12.35

12.51

12.83

12.52

Leverage ratio (a) (b)
10.57

10.53

10.35

10.79

10.93

Tangible common equity ratio (c)
9.92

9.97

9.85

9.94

10.39

 
 
 
 
 
 
Common shareholders' equity per share of common stock
$
42.18

$
42.12

$
41.35

$
41.26

$
40.72

Tangible common equity per share of common stock (c)
38.53

38.47

37.72

37.65

37.12

Market value per share for the quarter:
 
 
 
 
 
High
53.45

47.94

50.14

52.72

52.60

Low
44.38

40.09

42.73

48.33

45.34

Close
51.32

45.13

46.84

49.86

50.16

 
 
 
 
 
 
Quarterly ratios:
 
 
 
 
 
Return on average common shareholders' equity
7.21
%
7.20
%
7.96
%
8.29
%
8.27
%
Return on average assets
0.79

0.78

0.86

0.93

0.93

Efficiency ratio (d)
63.68

68.50

65.26

62.87

63.35

 
 
 
 
 
 
Number of banking centers
477

482

481

481

481

 
 
 
 
 
 
Number of employees - full time equivalent
8,901

8,831

8,876

8,913

8,901

(a)
Basel III rules became effective January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules.
(b)
June 30, 2015 amounts and ratios are estimated.
(c)
See Reconciliation of Non-GAAP Financial Measures.
(d)
Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains (losses).
n/a - not applicable.


20


PARENT COMPANY ONLY BALANCE SHEETS (unaudited)
Comerica Incorporated
 
 
 
 
 
 
 
 
June 30,
December 31,
June 30,
(in millions, except share data)
2015
2014
2014
 
 
 
 
ASSETS
 
 
 
Cash and due from subsidiary bank
$
7

$
—

$
5

Short-term investments with subsidiary bank
861

1,133

796

Other short-term investments
94

94

96

Investment in subsidiaries, principally banks
7,500

7,411

7,369

Premises and equipment
2

2

2

Other assets
122

138

217

      Total assets
$
8,586

$
8,778

$
8,485

 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
Medium- and long-term debt
$
903

$
1,208

$
958

Other liabilities
160

168

158

      Total liabilities
1,063

1,376

1,116

 
 
 
 
Common stock - $5 par value:
 
 
 
    Authorized - 325,000,000 shares
 
 
 
    Issued - 228,164,824 shares
1,141

1,141

1,141

Capital surplus
2,158

2,188

2,175

Accumulated other comprehensive loss
(396
)
(412
)
(304
)
Retained earnings
6,908

6,744

6,520

Less cost of common stock in treasury - 49,803,515 shares at 6/30/15, 49,146,225 shares at 12/31/14 and 47,194,492 shares at 6/30/14
(2,288
)
(2,259
)
(2,163
)
      Total shareholders' equity
7,523

7,402

7,369

      Total liabilities and shareholders' equity
$
8,586

$
8,778

$
8,485


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated
 
 
 
 
Common Stock
 
Other
 
 
Total
 
Shares
 
Capital
Comprehensive
Retained
Treasury
Shareholders'
(in millions, except per share data)
 Outstanding
Amount
Surplus
Loss
Earnings
Stock
Equity
 
 
 
 
 
 
 
 
BALANCE AT DECEMBER 31, 2013
182.3

$
1,141

$
2,179

$
(391
)
$
6,318

$
(2,097
)
$
7,150

Net income
—

—

—

—

290

—

290

Other comprehensive income, net of tax
—

—

—

87

—

—

87

Cash dividends declared on common stock ($0.39 per share)
—

—

—

—

(71
)
—

(71
)
Purchase of common stock
(3.0
)
—

—

—

—

(141
)
(141
)
Net issuance of common stock under employee stock plans
1.6

—

(25
)
—

(17
)
74

32

Share-based compensation
—

—

22

—

—

—

22

Other
—

—

(1
)
—

—

1

—

BALANCE AT JUNE 30, 2014
180.9

$
1,141

$
2,175

$
(304
)
$
6,520

$
(2,163
)
$
7,369

 
 
 
 
 
 
 
 
BALANCE AT DECEMBER 31, 2014
179.0

$
1,141

$
2,188

$
(412
)
$
6,744

$
(2,259
)
$
7,402

Net income
—

—

—

—

269

—

269

Other comprehensive income, net of tax
—

—

—

16

—

—

16

Cash dividends declared on common stock ($0.41 per share)
—

—

—

—

(73
)
—

(73
)
Purchase of common stock
(2.5
)
—

—

—

—

(115
)
(115
)
Purchase and retirement of warrants
—

—

(10
)
—

—

—

(10
)
Net issuance of common stock under employee stock plans
0.9

—

(23
)
—

(10
)
43

10

Net issuance of common stock for warrants
1.0

—

(21
)
—

(22
)
43

—

Share-based compensation
—

—

24

—

—

—

24

BALANCE AT JUNE 30, 2015
178.4

$
1,141

$
2,158

$
(396
)
$
6,908

$
(2,288
)
$
7,523





21


 BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
 Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollar amounts in millions)
Business
 
Retail
 
Wealth
 
 
 
 
 
 
Three Months Ended June 30, 2015
Bank
 
Bank
 
Management
 
Finance
 
Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
375

 
$
155

 
$
45

 
$
(155
)
 
$
2

 
$
422

Provision for credit losses
61

 
(8
)
 
(9
)
 
—

 
3

 
47

Noninterest income
140

 
46

 
60

 
14

 
1

 
261

Noninterest expenses
176

 
182

 
74

 
3

 
1

 
436

Provision (benefit) for income taxes (FTE)
96

 
9

 
14

 
(54
)
 
—

 
65

Net income (loss)
$
182

 
$
18

 
$
26

 
$
(90
)
 
$
(1
)
 
$
135

Net loan charge-offs (recoveries)
$
22

 
$
1

 
$
(5
)
 
$
—

 
$
—

 
$
18

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
39,135

 
$
6,459

 
$
5,153

 
$
11,721

 
$
6,495

 
$
68,963

Loans
38,109

 
5,770

 
4,954

 
—

 
—

 
48,833

Deposits
30,229

 
22,747

 
4,060

 
93

 
269

 
57,398

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
1.87
%
 
0.30
%
 
2.01
%
 
N/M

 
N/M

 
0.79
%
Efficiency ratio (b)
34.19

 
89.88

 
70.27

 
N/M

 
N/M

 
63.68

 
 
 
 
 
 
 
 
 
 
 
 
 
Business
 
Retail
 
Wealth
 
 
 
 
 
 
Three Months Ended March 31, 2015
Bank
 
Bank
 
Management
 
Finance
 
Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
370

 
$
151

 
$
43

 
$
(152
)
 
$
2

 
$
414

Provision for credit losses
25

 
(8
)
 
(1
)
 
—

 
(2
)
 
14

Noninterest income
142

 
42

 
58

 
12

 
1

 
255

Noninterest expenses
200

 
175

 
77

 
2

 
5

 
459

Provision (benefit) for income taxes (FTE)
98

 
9

 
9

 
(53
)
 
(1
)
 
62

Net income (loss)
$
189

 
$
17

 
$
16

 
$
(89
)
 
$
1

 
$
134

Net loan charge-offs (recoveries)
$
9

 
$
—

 
$
(1
)
 
$
—

 
$
—

 
$
8

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
38,654

 
$
6,368

 
$
5,029

 
$
12,137

 
$
6,547

 
$
68,735

Loans
37,623

 
5,694

 
4,834

 
—

 
—

 
48,151

Deposits
30,143

 
22,404

 
3,996

 
170

 
277

 
56,990

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
1.95
%
 
0.30
%
 
1.29
%
 
N/M

 
N/M

 
0.78
%
Efficiency ratio (b)
39.20

 
90.57

 
74.58

 
N/M

 
N/M

 
68.55

 
 
 
 
 
 
 
 
 
 
 
 
 
Business
 
Retail
 
Wealth
 
 
 
 
 
 
Three Months Ended June 30, 2014
Bank
 
Bank
 
Management
 
Finance
 
Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
375

 
$
152

 
$
44

 
$
(160
)
 
6

 
$
417

Provision for credit losses
35

 
(6
)
 
(10
)
 
—

 
(8
)
 
11

Noninterest income
100

 
41

 
62

 
15

 
2

 
220

Noninterest expenses
143

 
174

 
76

 
2

 
9

 
404

Provision (benefit) for income taxes (FTE)
100

 
9

 
15

 
(56
)
 
3

 
71

Net income (loss)
$
197

 
$
16

 
$
25

 
$
(91
)
 
$
4

 
$
151

Net loan charge-offs (recoveries)
$
9

 
$
3

 
$
(3
)
 
$
—

 
$
—

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
37,305

 
$
6,222

 
$
4,987

 
$
11,055

 
$
5,309

 
$
64,878

Loans
36,367

 
5,554

 
4,804

 
—

 
—

 
46,725

Deposits
27,351

 
21,890

 
3,616

 
258

 
269

 
53,384

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
2.11
%
 
0.29
%
 
2.02
%
 
N/M

 
N/M

 
0.93
%
Efficiency ratio (b)
30.07

 
90.06

 
72.11

 
N/M

 
N/M

 
63.35

(a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b) Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains.
FTE - Fully Taxable Equivalent
N/M - Not Meaningful

22


 MARKET SEGMENT FINANCIAL RESULTS (unaudited)
 Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollar amounts in millions)
 
 
 
 
 
 
Other
 
Finance
 
 
Three Months Ended June 30, 2015
Michigan
 
California
 
Texas
 
Markets
 
& Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
179

 
$
181

 
$
130

 
$
85

 
$
(153
)
 
$
422

Provision for credit losses
(13
)
 
4

 
43

 
10

 
3

 
47

Noninterest income
85

 
37

 
31

 
93

 
15

 
261

Noninterest expenses
128

 
100

 
94

 
110

 
4

 
436

Provision (benefit) for income taxes (FTE)
51

 
43

 
10

 
15

 
(54
)
 
65

Net income (loss)
$
98

 
$
71

 
$
14

 
$
43

 
$
(91
)
 
$
135

Net loan charge-offs (recoveries)
$
(2
)
 
$
6

 
$
5

 
$
9

 
$
—

 
$
18

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
13,852

 
$
16,696

 
$
11,878

 
$
8,321

 
$
18,216

 
$
68,963

Loans
13,290

 
16,429

 
11,254

 
7,860

 
—

 
48,833

Deposits
21,706

 
17,275

 
10,959

 
7,096

 
362

 
57,398

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
1.73
%
 
1.54
%
 
0.46
%
 
2.05
%
 
N/M

 
0.79
%
Efficiency ratio (b)
48.21

 
46.04

 
58.20

 
61.45

 
N/M

 
63.68

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
Finance
 
 
Three Months Ended March 31, 2015
Michigan
 
California
 
Texas
 
Markets
 
& Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
177

 
$
176

 
$
131

 
$
80

 
$
(150
)
 
$
414

Provision for credit losses
(8
)
 
(3
)
 
21

 
6

 
(2
)
 
14

Noninterest income
80

 
37

 
36

 
89

 
13

 
255

Noninterest expenses
154

 
99

 
96

 
103

 
7

 
459

Provision (benefit) for income taxes (FTE)
38

 
44

 
18

 
16

 
(54
)
 
62

Net income (loss)
$
73

 
$
73

 
$
32

 
$
44

 
$
(88
)
 
$
134

Net loan charge-offs
$
3

 
$
1

 
$
3

 
$
1

 
$
—

 
$
8

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
13,736

 
$
16,461

 
$
12,192

 
$
7,662

 
$
18,684

 
$
68,735

Loans
13,223

 
16,193

 
11,535

 
7,200

 
—

 
48,151

Deposits
21,710

 
16,837

 
11,010

 
6,986

 
447

 
56,990

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
1.30
%
 
1.63
%
 
1.01
%
 
2.26
%
 
N/M

 
0.78
%
Efficiency ratio (b)
60.23

 
46.36

 
57.43

 
61.45

 
N/M

 
68.55

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
Finance
 
 
Three Months Ended June 30, 2014
Michigan
 
California
 
Texas
 
Markets
 
& Other
 
Total
Earnings summary:
 
 
 
 
 
 
 
 
 
 
 
Net interest income (expense) (FTE)
$
182

 
$
176

 
$
137

 
$
76

 
$
(154
)
 
$
417

Provision for credit losses
(9
)
 
14

 
22

 
(8
)
 
(8
)
 
11

Noninterest income
89

 
38

 
35

 
41

 
17

 
220

Noninterest expenses
159

 
100

 
89

 
45

 
11

 
404

Provision (benefit) for income taxes (FTE)
44

 
37

 
22

 
21

 
(53
)
 
71

Net income (loss)
$
77

 
$
63

 
$
39

 
$
59

 
$
(87
)
 
$
151

Net loan charge-offs (recoveries)
$
10

 
$
5

 
$
2

 
$
(8
)
 
$
—

 
$
9

 
 
 
 
 
 
 
 
 
 
 
 
Selected average balances:
 
 
 
 
 
 
 
 
 
 
 
Assets
$
13,851

 
$
15,721

 
$
11,661

 
$
7,281

 
$
16,364

 
$
64,878

Loans
13,482

 
15,439

 
10,966

 
6,838

 
—

 
46,725

Deposits
20,694

 
15,370

 
10,724

 
6,069

 
527

 
53,384

 
 
 
 
 
 
 
 
 
 
 
 
Statistical data:
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (a)
1.42
%
 
1.54
%
 
1.30
%
 
3.28
%
 
N/M

 
0.93
%
Efficiency ratio (b)
58.67

 
46.64

 
51.67

 
38.73

 
N/M

 
63.35

(a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b) Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains.
FTE - Fully Taxable Equivalent
N/M - Not Meaningful

23


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
March 31,
December 31,
September 30,
June 30,
(dollar amounts in millions)
2015
2015
2014
2014
2014
 
 
 
 
 
 
Tier 1 Common Capital Ratio:
 
 
 
 
 
Tier 1 and Tier 1 common capital (a)
n/a

n/a

$
7,169

$
7,105

$
7,027

 
 
 
 
 
 
Risk-weighted assets (a)
n/a

n/a

68,269

67,102

66,909

 
 
 
 
 
 
Tier 1 and Tier 1 common risk-based capital ratio
n/a

n/a

10.50
%
10.59
%
10.50
%
 
 
 
 
 
 
Tangible Common Equity Ratio:
 
 
 
 
 
Common shareholders' equity
$
7,523

$
7,500

$
7,402

$
7,433

$
7,369

Less:
 
 
 
 
 
Goodwill
635

635

635

635

635

Other intangible assets
15

15

15

15

15

Tangible common equity
$
6,873

$
6,850

$
6,752

$
6,783

$
6,719

 
 
 
 
 
 
Total assets
$
69,945

$
69,333

$
69,186

$
68,883

$
65,323

Less:
 
 
 
 
 
Goodwill
635

635

635

635

635

Other intangible assets
15

15

15

15

15

Tangible assets
$
69,295

$
68,683

$
68,536

$
68,233

$
64,673

 
 
 
 
 
 
Common equity ratio
10.76
%
10.82
%
10.70
%
10.79
%
11.28
%
Tangible common equity ratio
9.92

9.97

9.85

9.94

10.39

 
 
 
 
 
 
Tangible Common Equity per Share of Common Stock:
 
 
 
 
 
Common shareholders' equity
$
7,523

$
7,500

$
7,402

$
7,433

$
7,369

Tangible common equity
6,873

6,850

6,752

6,783

6,719

 
 
 
 
 
 
Shares of common stock outstanding (in millions)
178

178

179

180

181

 
 
 
 
 
 
Common shareholders' equity per share of common stock
$
42.18

$
42.12

$
41.35

$
41.26

$
40.72

Tangible common equity per share of common stock
38.53

38.47

37.72

37.65

37.12

(a) Tier 1 capital and risk-weighted assets as defined by Basel I risk-based capital rules.
n/a - not applicable.

The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with Basel I risk-based capital rules in effect through December 31, 2014. Effective January 1, 2015, regulatory capital components and risk-weighted assets are defined by and calculated in conformity with Basel III risk-based capital rules. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock. Comerica believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.

24


Comerica Incorporated Second Quarter 2015Financial Review July 17, 2015 2 Safe Harbor Statement Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities LitigationReform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,”“outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,”“outcome,” “continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words andsimilar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as theyrelate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated onthe beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of thispresentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives ofComerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures ofeconomic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability.Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks anduncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual resultscould differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, politicalor industry conditions; changes in monetary and fiscal policies, including changes in interest rates; changes in regulation or oversight; Comerica'sability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or otherchanges in the businesses or industries of Comerica's customers, including the energy industry; operational difficulties, failure of technologyinfrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; factorsimpacting noninterest expenses which are beyond Comerica's control; changes in the financial markets, including fluctuations in interest rates andtheir impact on deposit pricing; changes in Comerica's credit rating; unfavorable developments concerning credit quality; the interdependence offinancial service companies; the implementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology toefficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financialinstitutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability tomaintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatoryproceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; theeffects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accountingstandards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. Fordiscussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and ExchangeCommission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the yearended December 31, 2014. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to updateforward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements aremade. For any forward-looking statements made in this presentation or in any documents, Comerica claims the protection of the safe harbor forforward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

 
3 Financial Summary $ in millions, except per share data ● n/a – not applicable ● 1Excluding the $44M impact of accounting presentation of a cardprogram in 2Q15 and 1Q15. The Corporation believes this information will assist investors, regulators, management and others in comparing results to prior quarters ● 2Reflects a $31 million decrease in litigation-related expense in 2Q15. ● 3Basel III capital rules (standardized approach) became effective for Comerica on 1/1/15. The ratio reflects transitional treatment for certain regulatory deductions and adjustments. Capital ratios for prior periods are based on Basel I rules. ● 4See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures. ● 5Estimated 2Q15 1Q15 2Q14 Diluted income per common share $0.73 $0.73 $0.80 Net interest income $421 $413 $416 Provision for credit losses 47 14 11 Noninterest income 261 255 220 Excl. impact of accounting presentation1 217 211 220 Noninterest expenses2 436 459 404 Excl. impact of accounting presentation1,2 392 415 404 Net income 135 134 151 Total average loans $48,833 $48,151 $46,725 Total average deposits 57,398 56,990 53,384 Basel III common equity Tier 1 capital ratio3 10.53%5 10.40% n/a Tier 1 common capital ratio3,4 n/a n/a 10.50% Average diluted shares (millions) 182 182 186 4 Second Quarter 2015 Results $ in millions, except per share data ● n/a – not applicable ● 2Q15 compared to 1Q15 ● 1Excluding the $44MM impact ofaccounting presentation of a card program in 2Q15. The Corporation believes this information will assist investors,regulators, management and others in comparing results to prior quarters. ● 2EPS based on diluted income per share. ● 3See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures. ● 4Equity repurchases under the equity repurchase program. 2Q15 Change From1Q15 2Q14Total average loans 48,833 682 2,108 Total average deposits 57,398 408 4,014 Net interest income 421 8 5 Provision for credit losses 47 33 36 Noninterest income 261 6 41 Excl. impact of acct. presentation1 217 n/a (3) Noninterest expenses 436 (23) 32 Excl. impact of acct. presentation1 392 n/a (12) Net income 135 1 (16) Earnings per share (EPS)2 0.73 - (0.07) Tangible Book Value Per Share3 38.53 0.06 1.41 Equity repurchases4 1MM shares & 0.5MM warrants or $59MM Key QoQ Performance Drivers  Solid average loan growth, particularly in Mortgage Banker, partially offset by decline in Energy  Net interest income increased with loan growth & one additional day  Provision reflects continued reserve build & increase in net charge-offs to 15 bps from a very low level  Noninterest income increased primarily due to card fees  Expenses reflect $31 million reduction in litigation-related expense  Equity repurchases4, combined with dividends, returned $96 million to shareholders

 
5 Diverse Footprint Drives Growth $ in billions 11.0 11.1 11.3 11.5 11.2 2Q14 3Q14 4Q14 1Q15 2Q15 Average Loans 10.7 10.6 10.8 11.1 11.0 2Q14 3Q14 4Q14 1Q15 2Q15 Average Deposits 15.4 15.5 15.8 16.2 16.4 2Q14 3Q14 4Q14 1Q15 2Q15 Average Loans 15.4 16.4 18.0 16.8 17.3 2Q14 3Q14 4Q14 1Q15 2Q15 Average Deposits 13.5 13.3 13.2 13.3 13.3 2Q14 3Q14 4Q14 1Q15 2Q15 Average Loans 20.7 21.2 21.6 21.7 21.7 2Q14 3Q14 4Q14 1Q15 2Q15 Average Deposits +2.6% +2.2% +6.4% +12.4% +4.9% -1.4% -2.4% -0.5% +1.5% +2.6% stable +0.5% 6 Average Loan Growth of 1.4%Loan Yields Increase 1bp 2Q15 compared to 1Q15 ● 1Utilization of commercial commitments as a percentage of total commercial commitments at period-end. Total Loans($ in billions) 46.7 47.2 47.4 48.2 48.8 49.1 49.7 3.31 3.22 3.22 3.19 3.20 2Q14 3Q14 4Q14 1Q15 2Q15 1Q15 2Q15 Loan Yields Average Balances Period-end Total average loans increased $682MM + $690MM Mortgage Banker+ $131MM General Middle Market+ $121MM Private Banking+ $ 89MM National Dealer Services+ $ 64MM Small Business+ $ 62MM TLS- $276MM Energy- $151MM Corporate BankingPeriod-end loans grew $669MM  Commitments increased to $57.1B  Line utilization1 of 51%, up from 50%  Loan pipeline increasedLoan yields increased 1 bp, reflecting increase in 30-day LIBOR

 
7 Noninterest-bearing Deposits Drive GrowthDeposit Rates Decline 1 bp 1Interest costs on interest-bearing deposits ● 22Q15 compared to 1Q15 ● 3At 6/30/15 Average Balances Period-end Strong Deposit Base($ in billions) 53.4 55.2 57.8 57.0 57.4 57.6 58.3 0.15 0.15 0.15 0.15 0.14 2Q14 3Q14 4Q14 1Q15 2Q15 1Q15 2Q15 Deposit Rates1 Total average deposits increased $408MM2:  Noninterest-bearing deposits increased $668MM to $27.4B  Interest-bearing deposits decreased $260MM to $30.0B  About 2/3 of total deposits are commercial Loan to Deposit Ratio3 of 85% 8 Growth in Securities Portfolio Positioning for LCR Compliance At 6/30/15 ● 1Estimated as of 6/30/15. Excludes auction rate securities (ARS). ● 2Net unrealized pre-tax gain on the available-for-sale (AFS) portfolio. Securities Portfolio:  Duration of 3.8 years1 • Extends to 4.6 years under a 200 bps instantaneous rate increase1  Net unrealized pre-tax gain of $62MM2  Net unamortized premium of $44MM  GNMA about 30% of MBS portfolio  Purchased $200MM in Treasury Securities in early June subsequent to issuing $500MM in senior bank debt 9.0 9.0 9.0 9.1 9.1 9.3 9.2 9.4 9.4 9.4 9.9 9.9 10.1 10.2 2.28 2.22 2.19 2.16 2.13 2Q14 3Q14 4Q14 1Q15 2Q15 1Q15 2Q15 Other (Incl. Treasury Securities)Mortgage-backed Securities (MBS)Securities Yields Securities Portfolio($ in billions) Average Balances Period-end

 
9 Net Interest Income Increases 2%Driven by Loan Growth & 1 Additional Day 12Q15 compared to 1Q15 ● 2For standard model assumptions see slide #16. Estimate is based on simulation modeling analysis. 10 3 9 2 2 416 414 415 413 421 2.78 2.67 2.57 2.64 2.65 2Q14 3Q14 4Q14 1Q15 2Q15 Accretion NIM Net Interest Income($ in millions) Net Interest Income and Rate NIM1: $413MM 1Q15 2.64% +11 Loan impacts:+5MM Loan growth+4MM One add’l day in 2Q15+2MM Higher loan yields 0.01 -3 Other: -Lower securities yields -Lower avg. balance at Fed -Higher debt expense $421MM 2Q15 2.65% +200 bps rate rise = ~$220MM2 Estimated increase to net interest income over 12 months 9 3 1 8 18 8 3 1 7 15 2Q14 3Q14 4Q14 1Q15 2Q15 NCO Ratio 10 Credit Metrics Remain Below Historical Normal LevelsProvision of $47MM At 6/30/15 ● 1Criticized loans are consistent with regulatory defined Special Mention, Substandard, Doubtful & Loss loan classifications. ● 2This information includes all loans related to energy at 6/30/15, ~$3.3B of loans in our Energy business line & ~$725MM loans in other businesses that have a sizable portion of their revenue related to energy or could be otherwise disproportionately negatively impacted by prolonged low oil and gas prices. ● 3”Normal” estimates are based on internal historical analysis & management judgement.  Provision increased $33MM: • Increased criticized energy2 loans • Continued energy price uncertainty  Nonaccrual loans increased $83MM:• 0.7% of total loans• Energy2 increased $97MM to $119MM  Criticized loans increased $294MM:• Energy2 increased $329MM to $578MM  Energy2 net charge-offs $2MM 633 635 635 640 668 1.7 1.7 2.1 2.2 1.7 2Q14 3Q14 4Q14 1Q15 2Q15 Allowance for LoanLosses as a % of NPL's Net Loan Charge-offs($ in millions) (bps) Normal Net Charge-Offs ~40 bps3 326 329 273 266 349 4.6 4.4 3.9 4.2 4.7 2Q14 3Q14 4Q14 1Q15 2Q15 NALs Criticized as a % of Total Loans Criticized Loans1($ in millions) Normal Criticized Loans of ~8.5% of Total Loans3 Allowance for Credit Losses($ in millions) 2,188 2,094 1,893 2,067 2,361

 
11 Noninterest Income Increases $6MMDriven by Card Fees 2Q15 compared to 1Q15 44 44220 215 225 255 261 2Q14 3Q14 4Q14 1Q15 2Q15 Impact of change in accountingpresentation of a card program Noninterest Income ($ in millions) Noninterest income: +$5MM Card fees, due to higher merchant services & interchange income +$1MM Service charges on deposit accounts +$1MM Fiduciary income +$1MM Brokerage fees - $3MM Commercial lending fees, reflecting lower unused commitment & syndication agent fees 12 Noninterest Expenses Decrease $23MMReflecting a $31 Million Reduction in Litigation-related Expense 2Q15 compared to 1Q15 Noninterest expenses: - $31MM Litigation-related expense - $2MM Salaries & benefits expense: - Seasonally lower payroll taxes- 1Q15 annual stock comp+ Technology-related contract labor+ Merit increases+ 1 additional day + $8MM Outside processing fees, related to revenue-generating activities 44 44404 397 419 459 436 2Q14 3Q14 4Q14 1Q15 2Q15 Impact of change in accountingpresentation of a card program Noninterest Expenses($ in millions)

 
13 19% 21% 23% 24% 28% 28% 58% 53% 42% 43%47% 79% 76% 66% 71% 2011 2012 2013 2014 2Q15 Dividends Equity Repurchases Active Capital Management 1Outlook as of 7/17/15 ● 2See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures ●3Shares & warrants repurchased under equity repurchase program ● 4Based on actual dividends declared in 1Q15 & 2Q15, and assuming no change in dividend per share for 3Q15 & 4Q15. Shareholder Payout3($ in millions)2015 Capital Plan Target1:  Up to $393MM equity repurchases over five quarters (2Q15 through 2Q16)• $59MM (1.0M shares and 500,000 warrants) repurchased in 2Q• Pace of buyback expected to increase commensurate with financial performance  Dividend increased to $0.21 per share in 2Q15 Dividends Per Share Growth 0.40 0.55 0.68 0.79 0.83 2011 2012 2013 2014 2015 +108% $31.40 $33.36 $35.64 $37.72 $38.53 2011 2012 2013 2014 2Q15 Tangible Book Value Per Share2 4 14 Management 2015 OutlookAssuming Continuation of Current Economic & Low Rate Environment Outlook as of 7/1715 ● 1Previously presented revenues net of expenses FY15 compared to FY14 Average loans Continued Growth, Consistent with FY14 • 2H15 seasonally lower Mortgage Banker & National Dealer, continued decline in Energy, and continued growth in most other businesses• Continued focus on pricing and structure discipline Net interest income Relatively Stable, Assuming continuation of current rate environment• Contribution from asset growth offset by impact from low rate environment on asset yields and decrease in purchase accounting accretion of ~$30MM Provision Higher• 2H15 net charge-off rates similar to 2Q15 (15 bps)• If energy prices remain low, continued negative migration is possible, which may be offset by lower exposure balances. Remainder of portfolio continues to perform well. Noninterest income Relatively Stable, Excluding impact of a change in accounting presentation of card program1• Growth in Card and Fiduciary fee income, mostly offset by a decline in warrant income and regulatory impacts on letters of credit and derivative income Noninterest expenses Higher, Excluding impact of a change in accounting presentation of card program1• Increase in technology to ~$100MM (1H15 $45MM)• Increase in regulatory to ~$30MM (1H15 $15MM) • Increase in pension to ~$48MM (1H15 $24MM)• 2H15 impacted by 3 more days, merit increases, higher outside processing and occupancy• Continued focus on driving efficiencies for the long-term Income taxes ~32% of pre-tax income

 
Appendix 16 Interest Rate SensitivityRemain Well Positioned for Rising Rates At 6/30/15 ● For methodology see the Company’s Form 10Q, as filed with the SEC. Estimates are based on simulation modeling analysis. ● 1Standard Model Assumption for deposit balances reflects historical experience and management judgement regarding deposit runoff in light of unprecedented liquidity. Estimated Net Interest Income: Annual (12 month) SensitivitiesBased on Various AssumptionsAdditional Scenarios are Relative to 2Q15 Standard Model($ in millions) ~110 ~190 ~200 ~210 ~220 ~260 ~330 Up 100bps Addl. $3BDepositDecline Addl.20%Increasein Beta Addl. $1BDepositDecline 2Q15StandardModel Addl.~3%LoanGrowth Up 300bps 0.1 Interest Rates 200 bps gradual, non-parallel rise Loan Balances Modest increase Deposit Balances Moderate decrease1 Deposit Pricing (Beta) Historical price movements with short-term rates Securities Portfolio Increased for LCR compliance Loan Spreads Held at current levels MBS Prepayments Third-party projections and historical experience Hedging (Swaps) No additions modeled Standard Model Assumptions

 
17 Loans by Business and Market Average $ in billions ● 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets.  Middle Market: Serving companies with revenues generally between $20-$500MM  Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM  Small Business: Serving companies with revenues generally under $20MM By Line of Business 2Q15 1Q15 2Q14 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $13.53.46.00.63.00.9 $13.43.75.90.62.91.0 $13.63.25.70.62.50.9 Total Middle Market $27.4 $27.5 $26.5 Corporate BankingUS BankingInternational 2.61.8 2.71.9 2.81.7 Mortgage Banker Finance 2.1 1.4 1.3 Commercial Real Estate 4.2 4.2 4.1 BUSINESS BANK $38.1 $37.7 $36.4 Small Business 3.9 3.8 3.7 Retail Banking 1.9 1.9 1.8 RETAIL BANK $5.8 $5.7 $5.5 Private Banking 4.9 4.8 4.8 WEALTH MANAGEMENT $4.9 $4.8 $4.8 TOTAL $48.8 $48.2 $46.7 By Market 2Q15 1Q15 2Q14 Michigan $13.3 $13.3 $13.5 California 16.4 16.2 15.4 Texas 11.2 11.5 11.0 Other Markets1 7.9 7.2 6.8 TOTAL $48.8 $48.2 $46.7 18 Deposits by Business and Market Average $ in billions ● 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets. ● 2Finance/ Other includes items not directly associated with the geographic markets or the three major business segments.  Middle Market: Serving companies with revenues generally between $20-$500MM  Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM  Small Business: Serving companies with revenues generally under $20MM By Line of Business 2Q15 1Q15 2Q14 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $15.70.70.20.16.20.2 $15.60.70.20.16.10.2 $14.60.50.20.15.60.1 Total Middle Market 23.1 $22.9 $21.1 Corporate BankingUS BankingInternational 2.62.0 2.62.0 2.61.7 Mortgage Banker Finance 0.6 0.6 0.5 Commercial Real Estate 1.9 2.1 1.5 BUSINESS BANK $30.2 $30.2 $27.4 Small Business 2.9 2.9 2.7 Retail Banking 19.8 19.5 19.2 RETAIL BANK $22.7 $22.4 $21.9 Private Banking 4.1 4.0 3.6 WEALTH MANAGEMENT $4.1 $4.0 $3.6 Finance/ Other2 0.4 0.4 0.5 TOTAL $57.4 $57.0 $53.4 By Market 2Q15 1Q15 2Q14 Michigan $21.7 $21.7 $20.7 California 17.3 16.8 15.4 Texas 11.0 11.1 10.7 Other Markets1 7.0 7.0 6.1 Finance/ Other2 0.4 0.4 0.5 TOTAL $57.4 $57.0 $53.4

 
19 Energy Line of Business At 6/30/15  Granular portfolio: ~200 customers  30+ years experience with strong performance through cycles  $3.3B in loans at period-end 6/30/15, decreased $257MM from 3/31/15  Utilization rate of 48% (vs 50% at 3/31/15)  ~95% of loans have security 1,81 1 1,65 6 1,46 9 1,32 7 1,29 6 1,14 9 1,19 6 1,26 9 1,42 3 1,45 6 1,63 5 1,94 7 2,30 5 2,45 2 2,64 1 2,85 1 3,00 2 2,95 1 2,89 5 2,75 2 2,98 2 3,23 6 3,33 2 3,49 2 3,70 0 3,42 4 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 Average Loans($ in millions) 0 0 0 0 36 69 19 10 13 6 0 1 9 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 1Q1 5 2Q1 5 Strong Credit Quality(In basis points) Energy Net Charge-offs to Avg. Energy Loans Exploration & Production 70%Midstream14% Service16% Natural Gas 13% Oil40% Mixed17% Diverse Customer Base(Based on period-end outstandings) 20 At 6/30/15 ● 1MBA Origination Volumes $ in billions. Source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of 6/18/15 566 61 4 923 1,53 5 1,48 3 1,50 7 1,99 6 2,09 4 1,73 7 1,81 5 1,60 5 1,10 9 886 1,31 9 1,59 5 1,39 7 1,39 9 2,08 9 200 300 400 500 600 700 800 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 Actual MBA Mortgage Origination Volumes Average Loans($ in millions) Mortgage Banker Finance MBA Mortgage Originations Forecast1($ in billions) 313 378 318 272 251 319 316 284 1Q15Actual 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1  50 years experience with reputation for consistent, reliable approach  Provide short-term warehouse financing: bridge from origination of residential mortgage until sale into end market  Extensive backroom provides collateral monitoring and customer service  Focus on full banking relationships

 
21 National Dealer Services At 6/30/15 ● 1Other includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) Toyota/Lexus15% Honda/Acura 14% Ford 9% GM 9% Chrysler 10% Mercedes 3% Nissan/ Infiniti 7%Other European 12% Other Asian 11% Other110% Franchise Distribution(Based on period-end loan outstandings) Geographic DispersionCalifornia 63% Texas 8%Michigan 18% Other 11% Average Loans($ in billions)  65+ years of Floor Plan lending, with 20+ years on a national basis  Top tier strategy  Focus on “Mega Dealer” (five or more dealerships in group)  Strong credit quality  Robust monitoring of company inventory and performance 1.9 1.7 1.3 1.5 1.9 2.3 2.3 2.5 2.8 3.1 2.9 3.2 3.2 3.5 3.2 3.4 3.5 3.6 3.8 3.6 3.1 3.4 3.8 4.3 4.3 4.6 4.9 5.1 4.9 5.3 5.3 5.7 5.5 5.7 5.9 6.0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 Floor Plan 22 Technology and Life Sciences At 6/30/15  20+ years experience provides competitive advantage  Products and services tailored to meet the needs of emerging companies throughout their lifecycle  Strong relationships with top-tier investors  National business headquartered in Palo Alto, CA, operating from 14 offices in the U.S. and Toronto  Top notch relationship managers with extensive industry expertise Customer Segment Overview(% based on loan outstandings) ~20% Early Stage ~40%Growth ~10% Late Stage ~25%Equity Funds Services ~5%Leveraged Finance Average Loans($ in billions) 1.1 1.1 1.1 1.2 1.2 1.2 1. 3 1.5 1.6 1.7 1 .8 1.9 2.0 1.9 2.0 2. 1 2.3 2. 5 2.6 2.7 2. 9 3.0 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 3.3 3.4 3.3 3.5 3. 7 4.1 4.2 4.4 4 .7 5.1 5.2 5.2 5.0 5.0 5.1 5.2 5 .7 5.6 5.9 6 .2 6.1 6.2 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 Average Deposits($ in billions)

 
23 Commercial Real Estate Line of Business At 6/30/15 ● 1Includes CRE line of business loans not secured by real estate. ● 2Excludes CRE line of business loans not secured by real estate. 5.7 5.4 5.1 4.8 4.4 4.0 4.4 4.6 4.4 4.3 3.9 3.7 3.7 3.8 3.8 3.8 4 .0 4.1 4.2 4.2 4.2 4.2 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 3Q1 3 4Q1 3 1Q1 4 2Q1 4 3Q1 4 4Q1 4 1Q1 5 2Q1 5 Commercial MortgagesReal Estate ConstructionCommercial & Other Average Loans($ in billions) 5.6 6.1 6.4 6.4 6.6 2Q14 3Q14 4Q14 1Q15 2Q15 Commitments($ in billions; Based on period-end) 19% 1 Michigan$237 7% California$1,607 46% Texas$957 28%Florida$127 4% Other$519 15% CRE by Market2($ in millions; Based on location of property) 24 Shared National Credit (SNC) Relationships At 6/30/15 ● SNCs are not a line of business. The balances shown above are included in the line of business balances. ●SNCs are facilities greater than $20 million shared by three or more federally supervised financial institutions which are reviewed by regulatory authorities at the agent bank level.  SNC relationships included in business line balances  Approximately 830 borrowers  Comerica is agent for approx. 20%  Strategy: Pursue full relationships with ancillary business  Adhere to same credit underwriting standards as rest of loan book Period-end Loans of $10.6B Commercial Real Estate$0.7B 6% Corporate $2.6B 25% General$2.4B 22%National Dealer $0.5B 4% Energy$3.1B 30% Entertainment$0.3B 3% Tech. & Life Sciences$0.3B 3% Environmental Services $0.3B 3% Mortgage Banker$0.4B 4% = Total Middle Market (65%)

 
25 Government Card ProgramsGenerate Valuable Retail Deposits At 6/30/15 ● 1Source: the Nilson Report July 2015, based on 2014 data ● 2Based on a 2014 survey conducted by KRC Research ● 3Source: U.S. Department of the Treasury ● 4Source: Social Security Administration 720 948 1,221 1,444 1,650 2011 2012 2013 2014 YTD 2015 US Treasury ProgramState Card Programs Growing Average Noninterest-Bearing Deposits($ in millions)  #2 prepaid card issuer in US1  State/ Local government benefit programs:• 49 distinct programs  US Treasury DirectExpress Program:• Exclusive provider of prepaid debit cards since 2008; contract extended to January 2020• ~80k new accounts per month• 95% of Direct Express card holders report they are satisfied2• Eliminating monthly benefit checks, resulting in significant taxpayer savings3 # of Social Security Beneficiaries4(in millions) 25 30 35 40 45 50 55 60 1970 1975 1980 1985 1990 1995 2000 2005 2010 Key Facts 26 Funding and Maturity Profile At 6/30/15 ● 1Face value at maturity.  Access to wholesale debt markets  Federal Home Loan Bank of Dallas• $-0- outstanding • $5B borrowing capacity  Brokered deposits  Fed funds/ Repo markets  ~$7B unencumbered securities  Loan to deposit ratio of 85% Multiple Funding Sources Debt Profile by Maturity1($ in millions) 300 650 500 350 900 2015 2016 2017 2019 2020+ Subordinated Notes Senior Notes Equity$7.5B 11% Interest-Bearing Deposits$30.1B 44% Noninterest-Bearing Deposits$28.2B 41% Wholesale Debt $2.9B 4% Funding ProfileAt June 30, 2015

 
27 Expenses Remain Well ControlledContinued Focus on Efficiency At 6/30/15 ● 1Normal fed fund rate of 3-4% not necessary to reach long-term goal. ● 2Goal as of 7/17/15. 11,4 44 11,3 50 11,2 87 11,2 09 10,8 92 10,8 16 10,7 00 10,7 82 10,1 86 9,40 2 9,07 3 9,46 8 9,03 5 8,94 8 8,87 6 8,83 1 8,90 1 $6.0 $6 .8 $7.1 $7 .5 $7.4 $7 .8 $8.4 $8.5 $9 .2 $9.2 $8.8 $8.9 $ 10.3 $10 .7 $11 .4 $11 .9 $11 .9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 1Q1 5 2Q1 5 Employees Avg. Loans + Deposits/Employee Driving Efficiency While Growing Loans & Deposits($ in millions) Factors Expected to Drive Long-Term Efficiency Ratio Goal2 51.8 % 50.7 % 50.4 % 54.0 % 47.1 % 53.2 % 55.6 % 58.0 % 58.9 % 58.6 % 68.6 % 63.7 % 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 1Q1 5 2Q1 5 Average: 53.8% 10-Years Prior to the Downturn Long-TermGoal: Below 60% Long-Term Efficiency Ratio Goal2: < 60% 2Q15 Long-Term Goal Expense Growth Fee Income Growth Loan Growth ~2-3% Normal1(~3-4%) Fed Funds Rate 64% 2-3% 3-4% 3-4% Below 60% Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch Cullen Frost A A2 -- BB&T A- A2 A+ BOK Financial A- A2 A Comerica A- A3 A M&T Bank A- A3 A- KeyCorp BBB+ Baa1 A- Fifth Third BBB+ Baa1 A SunTrust BBB+ Baa1 BBB+ Huntington BBB Baa1 A- Regions Financial BBB Baa3 BBB Zions Bancorporation BBB- Ba1 BBB- First Horizon National Corp BB+ Baa3 BBB- Wells Fargo & Company A+ A2 AA- U.S. Bancorp A+ A1 AA- JP Morgan A A3 A+ PNC Financial Services Group A- A3 A+ Bank of America A- Baa1 A 28 Holding Company Debt Rating As of 7/7/15 ● Source: SNL Financial ● Debt Ratings are not a recommendation to buy, sell, or hold securities Pee r Ba nks Larg e Ba nks

 
Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ in millions) The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with Basel I risk-based capital rules in effect through 12/31/14. Effective 1/1/15, regulatory capital components and risk-weighted assets are defined by and calculated in conformity with Basel III risk-based capital rules. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock.The Corporation believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.1Tier 1 Capital and risk-weighted assets as defined by Basel I risk-based capital rules.n/a – not applicable. 6/30/15 3/31/15 12/31/14 6/30/14 12/31/13 12/31/12 12/31/11 Tier 1 and Tier 1 common capital1Risk-weighted assets1Tier 1 and Tier 1 common capital ratio n/an/an/a n/an/an/a 7,16968,26910.50% 7,02766,90910.50% 6,89564,82510.64% 6,70566,11510.14% Common shareholders’ equityLess: GoodwillLess: Other intangible assets $7,52363515 $7,50063515 $7,40263515 $7,36963515 $7,15063517 $6,93963522 $6,86563532 Tangible common equity 6,873 $6,850 $6,752 $6,719 $6,498 $6,282 $6,198 Total assetsLess: GoodwillLess: Other intangible assets $69,94563515 $69,33363515 $69,18663515 $65,32363515 $65,22463517 $65,06663522 $61,00563532 Tangible assets 69,295 $68,683 $68,536 $64,673 $64,572 $64,409 $60,338Common equity ratio 10.76% 10.82% 10.70% 11.28% 10.97% 10.67% 11.26%Tangible common equity ratio 9.92 9.97 9.85 10.39 10.07 9.76 10.27 Common shareholders’ equity $7,523 $7,500 $7,402 $7,369 $7,150 $6,939 $6,865Tangible common equity 6,873 $6,850 $6,752 $6,719 $6,498 $6,282 $6,198Shares of common stock outstanding (in millions) 178 178 179 181 182 188 197 Common shareholders’ equity per share of common stock $42.18 $42.12 $41.35 $40.72 $39.22 $36.86 $34.79 Tangible common equity per share of common stock 38.53 38.47 37.72 37.12 35.64 33.36 31.40 29

 
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