DALLAS, Oct. 16, 2015 /PRNewswire/ -- Comerica
Incorporated (NYSE: CMA) today reported third quarter 2015 net
income of $136 million, compared to
$135 million for the second quarter
2015 and $154 million for the third
quarter 2014. Earnings per diluted share were 74 cents for third quarter 2015 compared to
73 cents for second quarter 2015 and
82 cents for third quarter 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions, except per share data)
|
3rd Qtr
'15
|
2nd Qtr
'15
|
3rd Qtr
'14
|
Net interest
income
|
$
|
422
|
|
|
$
|
421
|
|
|
$
|
414
|
|
|
Provision for credit
losses
|
26
|
|
|
47
|
|
|
5
|
|
|
Noninterest income
(a)
|
264
|
|
|
261
|
|
|
215
|
|
|
Noninterest expenses
(a) (b)
|
461
|
|
|
436
|
|
|
397
|
|
(c)
|
Provision for income
taxes
|
63
|
|
|
64
|
|
|
73
|
|
|
|
|
|
|
|
|
|
Net income
|
136
|
|
|
135
|
|
|
154
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shares
|
134
|
|
|
134
|
|
|
152
|
|
|
|
|
|
|
|
|
|
Diluted income per
common share
|
0.74
|
|
|
0.73
|
|
|
0.82
|
|
|
|
|
|
|
|
|
|
Average diluted
shares (in millions)
|
181
|
|
|
182
|
|
|
185
|
|
|
|
|
|
|
|
|
|
Basel III common
equity Tier 1 capital ratio (d) (e)
|
10.58
|
%
|
|
10.40
|
%
|
|
n/a
|
|
|
Tier 1 common capital
ratio (d) (f)
|
n/a
|
|
|
n/a
|
|
|
10.59
|
%
|
|
Tangible common
equity ratio (f)
|
9.91
|
|
|
9.92
|
|
|
9.94
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|
|
(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 $48 million
and $44 million to both noninterest income and noninterest expenses
in both the third and second quarters of 2015,
respectively.
|
(b)
|
Included net
releases of litigation reserves of $3 million, $30 million and $2
million in the third quarter 2015, second quarter 2015 and third
quarter 2014, respectively.
|
(c)
|
Reflected a net
benefit of $8 million from certain third quarter 2014 actions,
including a $32 million gain on the early redemption of debt, a $9
million contribution to the Comerica Charitable Foundation and
other charges totaling $15 million.
|
(d)
|
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.
|
(e)
|
September 30, 2015
ratio is estimated.
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(f)
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See Reconciliation
of Non-GAAP Financial Measures.
|
n/a - not
applicable.
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"Our third quarter results demonstrate the benefits of our
geographic and business line diversity. " said Ralph W. Babb, Jr., chairman and chief executive
officer. "Average loans grew $1.8
billion, or 4 percent, and deposits were up $4.0 billion, or 7 percent, compared to a year
ago.
"Net interest income remained stable compared to the second
quarter and noninterest income increased $3
million, or 1 percent, including growth in card fees, an
area of increased focus for us. We continued to tightly manage
expenses in the third quarter, even while faced with rising
technology and regulatory costs. Overall credit quality remained
strong. As far as loans related to energy(a), we saw
negative migration; however, as expected, net charge-offs continued
to be low and nonaccruals increased a modest $7 million.
"Our capital position is solid," said Babb. "Stock repurchases
under our equity repurchase program, combined with dividends,
returned $96 million to shareholders
in the third quarter. Our Trusted Advisor approach to relationship
banking continues to make a positive difference as we remain
focused on the long term."
Third Quarter 2015 Compared to Second
Quarter 2015
- Average total loans increased $139
million to $49.0 billion, with
increases in Technology and Life Sciences and Commercial Real
Estate offset by decreases in Corporate Banking, general Middle
Market and Energy. Period-end total loans decreased $799 million, to $48.9
billion, largely driven by seasonal decreases in Mortgage
Banker Finance and general Middle Market.
- Average total deposits increased $1.7 billion, or 3 percent, to $59.1 billion, primarily driven by a $1.3 billion increase in noninterest-bearing
deposits. Average total deposits increased in almost all lines of
business. Period-end total deposits increased $508 million to $58.8
billion.
- Net interest income increased $1
million to $422 million
compared to second quarter 2015. The benefits from one additional
day in the quarter and increases in average earning assets were
largely offset by an increase in interest expense on debt and lower
loan yields.
- The allowance for loan losses increased $4 million compared to June 30, 2015, primarily due to increases in
reserves related to Technology and Life Sciences and energy
exposure, partially offset by lower loan balances and improved
credit quality in the remainder of the portfolio. Net charge-offs
were $23 million, or 0.19 percent of
average loans, in the third quarter 2015, compared to $18 million, or 0.15 percent, in the second
quarter 2015. As a result, the provision for credit losses was
$26 million for the third quarter
2015.
- Noninterest income increased $3
million in the third quarter 2015, including a $3 million increase in card fees.
- Noninterest expenses increased $25
million in the third quarter 2015, primarily reflecting a
$3 million net release of litigation
reserves in the third quarter 2015, compared to a net release of
$30 million in the second quarter
2015.
- Capital remained solid at September 30, 2015, as evidenced by an estimated
common equity Tier 1 capital ratio of 10.58 percent and a tangible
common equity ratio of 9.91 percent.
- Comerica repurchased approximately 1.2 million shares of
common stock under the equity repurchase program, which, together
with dividends, returned $96 million
to shareholders.
Third Quarter 2015 Compared to Third Quarter
2014
- Average total loans increased $1.8
billion, or 4 percent, primarily reflecting increases in
almost all lines of business, partially offset by a $400 million decrease in Corporate
Banking.
- Average total deposits increased $4.0 billion, or 7 percent, primarily driven by
increases of $3.3 billion in
noninterest-bearing deposits and $1.2
billion in money market and NOW deposits, partially offset
by a decrease of $592 million in
customer certificates of deposit. Average deposits increased in
almost all lines of business and across all markets.
- Net interest income increased $8
million, largely due to earning asset growth, partially
offset by a $4 million increase in
interest expense on debt.
- The provision for credit losses increased $21 million, primarily due to increases in
reserves related to Technology and Life Sciences and 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 $48
million in the third quarter 2015, noninterest income
increased $1 million.
- Noninterest expenses increased $8
million, excluding the above-described change in accounting
presentation for a card program and the net benefit of $8 million in the third quarter 2014 from certain
cost-saving actions, primarily due to an increase in
technology-related contract labor expenses and higher outside
processing expenses related to revenue generating
activities.
(a) Loans related to energy at September 30, 2015 included approximately
$3.2 billion of outstanding loans in
our Energy business line as well as approximately $615 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.
Net Interest
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
2nd Qtr
'15
|
|
3rd Qtr
'14
|
Net interest
income
|
$
|
422
|
|
|
$
|
421
|
|
|
$
|
414
|
|
|
|
|
|
|
|
Net interest
margin
|
2.54
|
%
|
|
2.65
|
%
|
|
2.67
|
%
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Total earning
assets
|
$
|
66,191
|
|
|
$
|
63,981
|
|
|
$
|
61,672
|
|
Total
loans
|
48,972
|
|
|
48,833
|
|
|
47,159
|
|
Total investment
securities
|
10,232
|
|
|
9,936
|
|
|
9,388
|
|
Federal Reserve Bank
deposits
|
6,710
|
|
|
4,968
|
|
|
4,877
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
59,140
|
|
|
57,398
|
|
|
55,163
|
|
Total
noninterest-bearing deposits
|
28,623
|
|
|
27,365
|
|
|
25,275
|
|
|
|
- Net interest income increased $1
million to $422 million in the
third quarter 2015, compared to the second quarter 2015.
- Interest on loans increased $2
million, reflecting the impact of one additional day in the
third quarter (+$4 million) and the benefit from an increase in
average loan balances (+$1 million), partially offset by a decrease
in yields (-$3 million). The decrease
in loan yields primarily reflected the impact of growth in high
quality, lower yielding loans as well as a decrease in fee income
due to the summer slowdown, partially offset by the benefit from an
increase in LIBOR and the favorable impact from higher yields on
loans related to energy due to negative credit
migration.
- Interest on investment securities and Federal Reserve
Bank deposits each increased $1
million, primarily reflecting increased average
balances.
- Interest expense on debt increased $3 million, primarily reflecting the impact of
debt issued in June and July
2015.
- The net interest margin of 2.54 percent decreased 11
basis points compared to the second quarter 2015, primarily due to
the impact of the increase in Federal Reserve Bank deposit balances
(-6 basis points), lower loan yields (-2 basis points) and the
impact of increased debt (-2 basis points).
Noninterest Income
Noninterest income increased
$3 million in the third quarter 2015,
compared to $261 million for the
second quarter 2015. The increase primarily reflected increases of
$4 million in hedge ineffectiveness
income, $3 million in card fees and
$3 million in warrant-related income,
partially offset by decreases of $5
million in deferred compensation asset returns and
$4 million in investment banking
income. The decrease in deferred compensation asset returns was
offset by a decrease in deferred compensation plan expense in
noninterest expenses.
Noninterest Expenses
Noninterest expenses increased
$25 million in the third quarter
2015, compared to $436 million for
the second quarter 2015, primarily reflecting a $3 million net release of litigation reserves in
the third quarter 2015, compared to a net release of $30 million in the second quarter 2015, as well
as increases of $2 million each in
occupancy and software expense, partially offset by an $8 million decrease in salaries and benefits
expense. The decrease in salaries and benefits expense primarily
reflected a decrease in deferred compensation plan expense, lower
share-based compensation expense as a result of forfeitures, and
lower benefits expense, partially offset by an increase in
technology-related contract labor expenses and the impact of one
additional day in the quarter.
Credit Quality
"At 19 basis points, net charge-offs
remain well below the historical normal level. Gross charge-offs
declined slightly, while recoveries were down, primarily due to
timing," said Babb. "The provision for credit losses was
$26 million and the allowance
increased $4 million. This reflects
modestly higher reserves for both Technology and Life Sciences and
loans related to energy. This marks the fourth consecutive quarter
that we have prudently increased our reserves for energy, a result
of increasing criticized loans and sustained low energy prices.
While negative credit migration is anticipated, any losses are
expected to be manageable. We continue to feel comfortable with our
energy portfolio."
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|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
2nd Qtr
'15
|
|
3rd Qtr
'14
|
Loan
charge-offs
|
$
|
34
|
|
|
$
|
35
|
|
|
$
|
24
|
|
Loan
recoveries
|
11
|
|
|
17
|
|
|
21
|
|
Net loan
charge-offs
|
23
|
|
|
18
|
|
|
3
|
|
Net loan
charge-offs/Average total loans
|
0.19
|
%
|
|
0.15
|
%
|
|
0.03
|
%
|
|
|
|
|
|
|
Provision for credit
losses
|
$
|
26
|
|
|
$
|
47
|
|
|
$
|
5
|
|
|
|
|
|
|
|
Nonperforming loans
(a)
|
369
|
|
|
361
|
|
|
346
|
|
Nonperforming assets
(NPAs) (a)
|
381
|
|
|
370
|
|
|
357
|
|
NPAs/Total loans and
foreclosed property
|
0.78
|
%
|
|
0.74
|
%
|
|
0.75
|
%
|
|
|
|
|
|
|
Loans past due 90
days or more and still accruing
|
$
|
5
|
|
|
$
|
18
|
|
|
$
|
13
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
622
|
|
|
618
|
|
|
592
|
|
Allowance for credit
losses on lending-related commitments (b)
|
48
|
|
|
50
|
|
|
43
|
|
Total allowance for
credit losses
|
670
|
|
|
668
|
|
|
635
|
|
|
|
|
|
|
|
Allowance for loan
losses/Period-end total loans
|
1.27
|
%
|
|
1.24
|
%
|
|
1.24
|
%
|
Allowance for loan
losses/Nonperforming loans
|
169
|
|
|
171
|
|
|
171
|
|
(a)
|
Excludes loans
acquired with credit impairment.
|
|
(b)
|
Included in
"Accrued expenses and other liabilities" on the consolidated
balance sheets.
|
- Net charge-offs increased $5
million to $23 million, or
0.19 percent of average loans, in the third quarter 2015, compared
to $18 million, or 0.15 percent, in
the second quarter 2015.
- During the third quarter 2015, $69
million of borrower relationships over $2 million were transferred to nonaccrual status,
of which $25 million were loans
related to energy.
- Criticized loans increased $537
million to $2.9 billion at
September 30, 2015, compared to
$2.4 billion at June 30, 2015, reflecting an increase of
approximately $480 million in
criticized loans related to energy.
Balance Sheet and Capital Management
Total assets and
common shareholders' equity were $71.0
billion and $7.6 billion,
respectively, at September 30, 2015,
compared to $69.9 billion and
$7.5 billion, respectively, at
June 30, 2015.
There were approximately 177 million common shares outstanding
at September 30, 2015. Share
repurchases of $59 million (1.2
million shares) under the equity repurchase program, combined with
dividends of 21 cents per share,
returned 71 percent of third quarter 2015 net income to
shareholders. Diluted average shares decreased 2 million to 181
million for the third quarter 2015.
The estimated common equity Tier 1 capital ratio, reflective of
transition provisions and excluding accumulated other comprehensive
income ("AOCI"), was 10.58 percent at September 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 largely the same
as the transitional ratio. Comerica's tangible common equity ratio
was 9.91 percent at September 30,
2015, a decrease of 1 basis point from June 30, 2015.
Full-Year and Fourth Quarter 2015 Outlook
Management
expectations for full-year 2015 compared to full-year 2014 have not
changed from the previously provided outlook.
For fourth quarter 2015 compared to third quarter 2015,
management expects the following, assuming a continuation of the
current economic and low-rate environment:
- Average loans relatively stable, reflecting a seasonal
decline in Mortgage Banker Finance, a continued decline in Energy
and small increases in other lines of business.
- Net interest income relatively stable, with a
contribution from earning asset growth approximately offset by
continued pressure on yields from the low rate
environment.
- Provision for credit losses remains low, with fourth
quarter provision at a level similar to the third quarter.
Continued negative migration of loans related to energy is
possible, which may be offset by lower exposure
balances.
- Noninterest income slightly higher, with growth in card
fees, along with fiduciary income and investment banking fees
should markets improve. The levels of warrant income, hedge
ineffectiveness income and deferred compensation asset losses
experienced in the third quarter 2015 are not expected to repeat,
but are difficult to predict.
- Noninterest expenses moderately higher, reflecting
seasonal increases in benefits expense, outside processing,
marketing and occupancy expenses. The levels of litigation-related
expense, share-based compensation and deferred compensation plan
expense experienced in the third quarter 2015 are not expected to
repeat, but are difficult to predict.
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 September 30, 2015 and are presented on a fully
taxable equivalent (FTE) basis. The accompanying narrative
addresses third quarter 2015 results compared to second quarter
2015.
The following table presents net income (loss) by business
segment.
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
2nd Qtr
'15
|
|
3rd Qtr
'14
|
Business
Bank
|
$
|
194
|
|
85
|
%
|
|
$
|
182
|
|
81
|
%
|
|
$
|
211
|
|
92
|
%
|
Retail
Bank
|
13
|
|
6
|
|
|
18
|
|
8
|
|
|
7
|
|
3
|
|
Wealth
Management
|
21
|
|
9
|
|
|
26
|
|
11
|
|
|
12
|
|
5
|
|
|
228
|
|
100
|
%
|
|
226
|
|
100
|
%
|
|
230
|
|
100
|
%
|
Finance
|
(93)
|
|
|
|
(90)
|
|
|
|
(73)
|
|
|
Other (a)
|
1
|
|
|
|
(1)
|
|
|
|
(3)
|
|
|
Total
|
$
|
136
|
|
|
|
$
|
135
|
|
|
|
$
|
154
|
|
|
(a)
|
Includes items not
directly associated with the three major business segments or the
Finance Division.
|
Business
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
380
|
|
|
$
|
375
|
|
|
$
|
376
|
|
Provision for credit
losses
|
30
|
|
|
61
|
|
|
(4)
|
|
Noninterest
income
|
145
|
|
|
140
|
|
|
97
|
|
Noninterest
expenses
|
202
|
|
|
176
|
|
|
152
|
|
Net income
|
194
|
|
|
182
|
|
|
211
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
23
|
|
|
22
|
|
|
(2)
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
39,210
|
|
|
39,135
|
|
|
37,751
|
|
Loans
|
38,113
|
|
|
38,109
|
|
|
36,746
|
|
Deposits
|
31,397
|
|
|
30,229
|
|
|
28,815
|
|
- Average loans increased $4
million, primarily reflecting increases in Technology and
Life Sciences, Commercial Real Estate and Entertainment, largely
offset by decreases in Corporate Banking, general Middle Market and
Energy.
- Average deposits increased $1.2
billion, primarily reflecting increases in general Middle
Market, Technology and Life Sciences and Corporate Banking,
partially offset by a decrease in Commercial Real
Estate.
- Net interest income increased $5
million, primarily reflecting the impact of one additional
day in the quarter and an increase in net funds transfer pricing
(FTP) credits, largely due to the increase in average deposits,
partially offset by lower loan yields.
- The allowance for loan losses increased $5 million compared to June 30, 2015, primarily due to increases in
reserves related to Technology and Life Sciences and energy
exposure, partially offset by lower loan balances and improvements
in credit quality in the remainder of the portfolio. As a result,
the provision for credit losses was $30
million for the third quarter 2015.
- Noninterest income increased $5
million, primarily due to increases in customer derivative
income and warrant-related income, partially offset by a decrease
in investment banking fees.
- Noninterest expenses increased $26
million, primarily reflecting the impact of a net release in
litigation reserves in the second quarter 2015, partially offset by
a decrease in salaries and benefits expense.
Retail
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
158
|
|
|
$
|
155
|
|
|
$
|
153
|
|
Provision for credit
losses
|
2
|
|
|
(8)
|
|
|
—
|
|
Noninterest
income
|
49
|
|
|
46
|
|
|
42
|
|
Noninterest
expenses
|
185
|
|
|
182
|
|
|
185
|
|
Net income
|
13
|
|
|
18
|
|
|
7
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
1
|
|
|
1
|
|
|
—
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
6,518
|
|
|
6,459
|
|
|
6,273
|
|
Loans
|
5,835
|
|
|
5,770
|
|
|
5,605
|
|
Deposits
|
23,079
|
|
|
22,747
|
|
|
22,042
|
|
- Average loans increased $65
million, reflecting increases in Small Business and consumer
loans in Retail Banking.
- Average deposits increased $332
million, primarily reflecting an increase in
noninterest-bearing deposits.
- Net interest income increased $3
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.
- The provision for credit losses was $2 million, compared to a negative provision of
$8 million in the second quarter
2015.
- Noninterest income increased $3
million, primarily reflecting an increase in card
fees.
- Noninterest expenses increased $3
million, primarily reflecting increases in occupancy and
outside processing expenses.
Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
45
|
|
|
$
|
45
|
|
|
$
|
45
|
|
Provision for credit
losses
|
(3)
|
|
|
(9)
|
|
|
7
|
|
Noninterest
income
|
59
|
|
|
60
|
|
|
59
|
|
Noninterest
expenses
|
74
|
|
|
74
|
|
|
78
|
|
Net income
|
21
|
|
|
26
|
|
|
12
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
(1)
|
|
|
(5)
|
|
|
5
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
5,228
|
|
|
5,153
|
|
|
4,998
|
|
Loans
|
5,024
|
|
|
4,954
|
|
|
4,808
|
|
Deposits
|
4,188
|
|
|
4,060
|
|
|
3,924
|
|
- Average loans increased $70
million.
- Average deposits increased $128
million, primarily reflecting increases in money market and
checking deposits.
- Net interest income remained stable quarter over quarter.
The benefits from loan and deposit growth and the impact of one
additional day in the quarter were offset by lower yields and a
decrease in the FTP crediting rate.
- The provision for credit losses increased $6 million, from a negative provision of
$9 million in the second quarter 2015
to a negative provision of $3 million
in the third quarter 2015, primarily reflecting lower net
recoveries in the third quarter 2015.
- Noninterest income decreased $1
million, primarily due to lower fiduciary
income.
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
September 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)
|
3rd Qtr
'15
|
|
2nd Qtr
'15
|
|
3rd Qtr
'14
|
Michigan
|
$
|
71
|
|
31
|
%
|
|
$
|
98
|
|
44
|
%
|
|
$
|
66
|
|
29
|
%
|
California
|
62
|
|
27
|
|
|
71
|
|
31
|
|
|
63
|
|
27
|
|
Texas
|
36
|
|
16
|
|
|
14
|
|
6
|
|
|
42
|
|
18
|
|
Other
Markets
|
59
|
|
26
|
|
|
43
|
|
19
|
|
|
59
|
|
26
|
|
|
228
|
|
100
|
%
|
|
226
|
|
100
|
%
|
|
230
|
|
100
|
%
|
Finance & Other
(a)
|
(92)
|
|
|
|
(91)
|
|
|
|
(76)
|
|
|
Total
|
$
|
136
|
|
|
|
$
|
135
|
|
|
|
$
|
154
|
|
|
(a)
|
Includes
items not directly associated with the geographic
markets.
|
- Average loans increased $360
million in California and
decreased $257 million in
Texas and $67 million in Michigan (primarily general Middle Market).
The increase in California was led
by Technology and Life Sciences, Entertainment and Private Banking,
partially offset by a decrease in general Middle Market. In
Texas, average loans decreased in
almost all lines of business.
- Average deposits increased $1.1
billion and $240 million in
California and Michigan, respectively, and decreased
$206 million in Texas. The increases in California and Michigan reflected increases in almost all
lines of business, partially offset by decreases in Commercial Real
Estate (in both markets) and Corporate Banking (in Michigan). The decrease in Texas primarily reflected decreases in general
Middle Market, Technology and Life Sciences, and Energy, partially
offset by an increase in Small Business.
- Net interest income increased $6
million and $1 million in
California and Michigan, respectively, and decreased
$1 million in Texas. The increase in California primarily reflected the benefit
from an increase in net FTP credits, largely due to the increase in
average deposits, and the impact of one additional day in the
quarter.
- The provision for credit losses decreased $33 million in Texas and increased $20
million and $19 million in
California and Michigan, respectively. The decrease in
Texas primarily reflected a
smaller reserve build for Energy in the third quarter 2015,
compared to the second quarter 2015. In California, the provision increased primarily
as a result of increased reserves for Technology and Life Sciences,
while the increase in Michigan was
primarily the result of increased provisions in general Middle
Market, Retail Banking and Corporate Banking.
- Noninterest income increased $3
million and $1 million in
Texas and California, respectively, and was unchanged in
Michigan. The increase in
Texas was primarily due to
increases in customer derivative income, foreign exchange income
and small increases in several categories, partially offset by a
decrease in investment banking income.
- Noninterest expenses increased $24
million in Michigan,
primarily reflecting the impact of a net release in litigation
reserves in the second quarter 2015, partially offset by small
decreases in several categories, and increased $3 million and $2
million in Texas and
California,
respectively.
Michigan
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
180
|
|
|
$
|
179
|
|
|
$
|
179
|
|
Provision for credit
losses
|
6
|
|
|
(13)
|
|
|
(8)
|
|
Noninterest
income
|
85
|
|
|
85
|
|
|
83
|
|
Noninterest
expenses
|
152
|
|
|
128
|
|
|
166
|
|
Net income
|
71
|
|
|
98
|
|
|
66
|
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
9
|
|
|
(2)
|
|
|
3
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
13,856
|
|
|
13,852
|
|
|
13,724
|
|
Loans
|
13,223
|
|
|
13,290
|
|
|
13,248
|
|
Deposits
|
21,946
|
|
|
21,706
|
|
|
21,214
|
|
|
California
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
187
|
|
|
$
|
181
|
|
|
$
|
182
|
|
Provision for credit
losses
|
24
|
|
|
4
|
|
|
14
|
|
Noninterest
income
|
38
|
|
|
37
|
|
|
37
|
|
Noninterest
expenses
|
102
|
|
|
100
|
|
|
102
|
|
Net income
|
62
|
|
|
71
|
|
|
63
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
10
|
|
|
6
|
|
|
6
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
17,060
|
|
|
16,696
|
|
|
15,768
|
|
Loans
|
16,789
|
|
|
16,429
|
|
|
15,509
|
|
Deposits
|
18,372
|
|
|
17,275
|
|
|
16,350
|
|
|
Texas
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
3rd Qtr
'15
|
|
|
2nd Qtr
'15
|
|
|
3rd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
129
|
|
|
$
|
130
|
|
|
$
|
130
|
|
Provision for credit
losses
|
10
|
|
|
43
|
|
|
3
|
|
Noninterest
income
|
34
|
|
|
31
|
|
|
36
|
|
Noninterest
expenses
|
97
|
|
|
94
|
|
|
96
|
|
Net income
|
36
|
|
|
14
|
|
|
42
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
4
|
|
|
5
|
|
|
—
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
11,578
|
|
|
11,878
|
|
|
11,835
|
|
Loans
|
10,997
|
|
|
11,254
|
|
|
11,147
|
|
Deposits
|
10,753
|
|
|
10,959
|
|
|
10,633
|
|
Conference Call and Webcast
Comerica will host a
conference call to review third quarter 2015 financial results at
7 a.m. CT Friday, October 16, 2015.
Interested parties may access the conference call by calling (877)
523-5249 or (210) 591-1147 (event ID No. 28321461). 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.
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.
CONSOLIDATED
FINANCIAL HIGHLIGHTS (unaudited)
|
|
|
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
June
30,
|
September
30,
|
|
September
30,
|
(in millions,
except per share data)
|
2015
|
2015
|
2014
|
|
2015
|
2014
|
PER COMMON SHARE
AND COMMON STOCK DATA
|
|
|
|
|
|
|
Diluted net
income
|
$
|
0.74
|
|
$
|
0.73
|
|
$
|
0.82
|
|
|
$
|
2.20
|
|
$
|
2.35
|
|
Cash dividends
declared
|
0.21
|
|
0.21
|
|
0.20
|
|
|
0.62
|
|
0.59
|
|
|
|
|
|
|
|
|
Average diluted
shares (in thousands)
|
180,714
|
|
182,422
|
|
185,401
|
|
|
181,807
|
|
186,064
|
|
KEY
RATIOS
|
|
|
|
|
|
|
Return on average
common shareholders' equity
|
7.19
|
%
|
7.21
|
%
|
8.29
|
%
|
|
7.20
|
%
|
8.08
|
%
|
Return on average
assets
|
0.76
|
|
0.79
|
|
0.93
|
|
|
0.78
|
|
0.91
|
|
Common equity tier 1
risk-based capital ratio (a) (b)
|
10.58
|
|
10.40
|
|
n/a
|
|
|
|
|
Tier 1 common
risk-based capital ratio (c)
|
n/a
|
|
n/a
|
|
10.59
|
|
|
|
|
Tier 1 risk-based
capital ratio (a) (b)
|
10.58
|
|
10.40
|
|
10.59
|
|
|
|
|
Total risk-based
capital ratio (a) (b)
|
12.91
|
|
12.38
|
|
12.83
|
|
|
|
|
Leverage ratio (a)
(b)
|
10.29
|
|
10.56
|
|
10.79
|
|
|
|
|
Tangible common
equity ratio (c)
|
9.91
|
|
9.92
|
|
9.94
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,900
|
|
$
|
31,788
|
|
$
|
30,188
|
|
|
$
|
31,596
|
|
$
|
29,487
|
|
Real estate
construction loans
|
1,833
|
|
1,807
|
|
1,973
|
|
|
1,859
|
|
1,905
|
|
Commercial mortgage
loans
|
8,691
|
|
8,672
|
|
8,698
|
|
|
8,648
|
|
8,739
|
|
Lease
financing
|
788
|
|
795
|
|
823
|
|
|
793
|
|
840
|
|
International
loans
|
1,401
|
|
1,453
|
|
1,417
|
|
|
1,455
|
|
1,349
|
|
Residential mortgage
loans
|
1,882
|
|
1,877
|
|
1,792
|
|
|
1,872
|
|
1,763
|
|
Consumer
loans
|
2,477
|
|
2,441
|
|
2,268
|
|
|
2,432
|
|
2,244
|
|
Total
loans
|
48,972
|
|
48,833
|
|
47,159
|
|
|
48,655
|
|
46,327
|
|
|
|
|
|
|
|
|
Earning
assets
|
66,191
|
|
63,981
|
|
61,672
|
|
|
64,561
|
|
60,585
|
|
Total
assets
|
71,333
|
|
68,963
|
|
66,398
|
|
|
69,688
|
|
65,335
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
28,623
|
|
27,365
|
|
25,275
|
|
|
27,569
|
|
24,182
|
|
Interest-bearing
deposits
|
30,517
|
|
30,033
|
|
29,888
|
|
|
30,282
|
|
29,599
|
|
Total
deposits
|
59,140
|
|
57,398
|
|
55,163
|
|
|
57,851
|
|
53,781
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
7,559
|
|
7,512
|
|
7,411
|
|
|
7,508
|
|
7,324
|
|
NET INTEREST
INCOME (fully taxable equivalent basis)
|
|
|
|
|
|
|
Net interest
income
|
$
|
423
|
|
$
|
422
|
|
$
|
415
|
|
|
$
|
1,259
|
|
$
|
1,243
|
|
Net interest
margin
|
2.54
|
%
|
2.65
|
%
|
2.67
|
%
|
|
2.61
|
%
|
2.74
|
%
|
CREDIT
QUALITY
|
|
|
|
|
|
|
Total nonperforming
assets
|
$
|
381
|
|
$
|
370
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90
days or more and still accruing
|
5
|
|
18
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
23
|
|
18
|
|
3
|
|
|
$
|
49
|
|
$
|
24
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
622
|
|
618
|
|
592
|
|
|
|
|
Allowance for credit
losses on lending-related commitments
|
48
|
|
50
|
|
43
|
|
|
|
|
Total allowance for
credit losses
|
670
|
|
668
|
|
635
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.27
|
%
|
1.24
|
%
|
1.24
|
%
|
|
|
|
Net loan charge-offs
as a percentage of average total loans
|
0.19
|
|
0.15
|
|
0.03
|
|
|
0.14
|
%
|
0.07
|
%
|
Nonperforming assets
as a percentage of total loans and foreclosed property
|
0.78
|
|
0.74
|
|
0.75
|
|
|
|
|
Allowance for loan
losses as a percentage of total nonperforming loans
|
169
|
|
171
|
|
171
|
|
|
|
|
|
|
|
(a)
|
Basel III rules
became effective on January 1, 2015, with transitional provisions.
All prior period data is based on Basel I rules.
|
(b)
|
September 30, 2015
ratios are estimated.
|
(c)
|
See Reconciliation of
Non-GAAP Financial Measures.
|
n/a - not
applicable.
|
CONSOLIDATED
BALANCE SHEETS
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
June
30,
|
December
31,
|
September
30,
|
(in millions,
except share data)
|
2015
|
2015
|
2014
|
2014
|
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
$
|
1,101
|
|
$
|
1,148
|
|
$
|
1,026
|
|
$
|
1,039
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
6,099
|
|
4,817
|
|
5,045
|
|
6,748
|
|
Other short-term
investments
|
107
|
|
119
|
|
99
|
|
112
|
|
|
|
|
|
|
Investment securities
available-for-sale
|
8,749
|
|
8,267
|
|
8,116
|
|
9,468
|
|
Investment securities
held-to-maturity
|
1,863
|
|
1,952
|
|
1,935
|
|
—
|
|
|
|
|
|
|
Commercial
loans
|
31,777
|
|
32,723
|
|
31,520
|
|
30,759
|
|
Real estate
construction loans
|
1,874
|
|
1,795
|
|
1,955
|
|
1,992
|
|
Commercial mortgage
loans
|
8,787
|
|
8,674
|
|
8,604
|
|
8,603
|
|
Lease
financing
|
751
|
|
786
|
|
805
|
|
805
|
|
International
loans
|
1,382
|
|
1,420
|
|
1,496
|
|
1,429
|
|
Residential mortgage
loans
|
1,880
|
|
1,865
|
|
1,831
|
|
1,797
|
|
Consumer
loans
|
2,491
|
|
2,478
|
|
2,382
|
|
2,323
|
|
Total
loans
|
48,942
|
|
49,741
|
|
48,593
|
|
47,708
|
|
Less allowance for
loan losses
|
(622)
|
|
(618)
|
|
(594)
|
|
(592)
|
|
Net loans
|
48,320
|
|
49,123
|
|
47,999
|
|
47,116
|
|
|
|
|
|
|
Premises and
equipment
|
541
|
|
541
|
|
532
|
|
524
|
|
Accrued income and
other assets
|
4,232
|
|
3,978
|
|
4,434
|
|
3,876
|
|
Total
assets
|
$
|
71,012
|
|
$
|
69,945
|
|
$
|
69,186
|
|
$
|
68,883
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Noninterest-bearing
deposits
|
$
|
28,697
|
|
$
|
28,167
|
|
$
|
27,224
|
|
$
|
27,490
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
23,948
|
|
23,786
|
|
23,954
|
|
23,523
|
|
Savings
deposits
|
1,853
|
|
1,841
|
|
1,752
|
|
1,753
|
|
Customer certificates
of deposit
|
4,126
|
|
4,367
|
|
4,421
|
|
4,698
|
|
Foreign office time
deposits
|
144
|
|
99
|
|
135
|
|
117
|
|
Total
interest-bearing deposits
|
30,071
|
|
30,093
|
|
30,262
|
|
30,091
|
|
Total
deposits
|
58,768
|
|
58,260
|
|
57,486
|
|
57,581
|
|
|
|
|
|
|
Short-term
borrowings
|
109
|
|
56
|
|
116
|
|
202
|
|
Accrued expenses and
other liabilities
|
1,413
|
|
1,265
|
|
1,507
|
|
1,002
|
|
Medium- and long-term
debt
|
3,100
|
|
2,841
|
|
2,675
|
|
2,665
|
|
Total
liabilities
|
63,390
|
|
62,422
|
|
61,784
|
|
61,450
|
|
|
|
|
|
|
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
|
2,165
|
|
2,158
|
|
2,188
|
|
2,183
|
|
Accumulated other
comprehensive loss
|
(345)
|
|
(396)
|
|
(412)
|
|
(317)
|
|
Retained
earnings
|
7,007
|
|
6,908
|
|
6,744
|
|
6,631
|
|
Less cost of common
stock in treasury - 51,010,418 shares at 9/30/15, 49,803,515 shares
at 6/30/15, 49,146,225 shares at 12/31/14, and 47,992,721 shares at
9/30/14
|
(2,346)
|
|
(2,288)
|
|
(2,259)
|
|
(2,205)
|
|
Total shareholders'
equity
|
7,622
|
|
7,523
|
|
7,402
|
|
7,433
|
|
Total liabilities and
shareholders' equity
|
$
|
71,012
|
|
$
|
69,945
|
|
$
|
69,186
|
|
$
|
68,883
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
(in millions,
except per share data)
|
2015
|
2014
|
|
2015
|
2014
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
390
|
|
$
|
381
|
|
|
$
|
1,156
|
|
$
|
1,142
|
|
Interest on
investment securities
|
54
|
|
52
|
|
|
160
|
|
160
|
|
Interest on
short-term investments
|
4
|
|
3
|
|
|
11
|
|
10
|
|
Total interest
income
|
448
|
|
436
|
|
|
1,327
|
|
1,312
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Interest on
deposits
|
11
|
|
11
|
|
|
33
|
|
33
|
|
Interest on medium-
and long-term debt
|
15
|
|
11
|
|
|
38
|
|
39
|
|
Total interest
expense
|
26
|
|
22
|
|
|
71
|
|
72
|
|
Net interest
income
|
422
|
|
414
|
|
|
1,256
|
|
1,240
|
|
Provision for credit
losses
|
26
|
|
5
|
|
|
87
|
|
25
|
|
Net interest income
after provision for credit losses
|
396
|
|
409
|
|
|
1,169
|
|
1,215
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
Service charges on
deposit accounts
|
56
|
|
54
|
|
|
167
|
|
162
|
|
Fiduciary
income
|
47
|
|
44
|
|
|
142
|
|
133
|
|
Commercial lending
fees
|
22
|
|
26
|
|
|
69
|
|
69
|
|
Card fees
|
75
|
|
23
|
|
|
214
|
|
68
|
|
Letter of credit
fees
|
13
|
|
14
|
|
|
39
|
|
43
|
|
Bank-owned life
insurance
|
10
|
|
11
|
|
|
29
|
|
31
|
|
Foreign exchange
income
|
10
|
|
9
|
|
|
29
|
|
30
|
|
Brokerage
fees
|
5
|
|
4
|
|
|
13
|
|
13
|
|
Net securities
losses
|
—
|
|
(1)
|
|
|
(2)
|
|
—
|
|
Other noninterest
income
|
26
|
|
31
|
|
|
80
|
|
94
|
|
Total noninterest
income
|
264
|
|
215
|
|
|
780
|
|
643
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
Salaries and benefits
expense
|
243
|
|
248
|
|
|
747
|
|
735
|
|
Net occupancy
expense
|
41
|
|
46
|
|
|
118
|
|
125
|
|
Equipment
expense
|
14
|
|
14
|
|
|
40
|
|
43
|
|
Outside processing
fee expense
|
86
|
|
31
|
|
|
249
|
|
89
|
|
Software
expense
|
26
|
|
25
|
|
|
73
|
|
72
|
|
Litigation-related
expense
|
(3)
|
|
(2)
|
|
|
(32)
|
|
4
|
|
FDIC insurance
expense
|
9
|
|
9
|
|
|
27
|
|
25
|
|
Advertising
expense
|
6
|
|
5
|
|
|
17
|
|
16
|
|
Gain on debt
redemption
|
—
|
|
(32)
|
|
|
—
|
|
(32)
|
|
Other noninterest
expenses
|
39
|
|
53
|
|
|
117
|
|
130
|
|
Total noninterest
expenses
|
461
|
|
397
|
|
|
1,356
|
|
1,207
|
|
Income before income
taxes
|
199
|
|
227
|
|
|
593
|
|
651
|
|
Provision for income
taxes
|
63
|
|
73
|
|
|
188
|
|
207
|
|
NET
INCOME
|
136
|
|
154
|
|
|
405
|
|
444
|
|
Less income allocated
to participating securities
|
2
|
|
2
|
|
|
5
|
|
6
|
|
Net income
attributable to common shares
|
$
|
134
|
|
$
|
152
|
|
|
$
|
400
|
|
$
|
438
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
$
|
0.85
|
|
|
$
|
2.27
|
|
$
|
2.44
|
|
Diluted
|
0.74
|
|
0.82
|
|
|
2.20
|
|
2.35
|
|
|
|
|
|
|
|
Comprehensive
income
|
187
|
|
141
|
|
|
472
|
|
518
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
37
|
|
36
|
|
|
110
|
|
107
|
|
Cash dividends
declared per common share
|
0.21
|
|
0.20
|
|
|
0.62
|
|
0.59
|
|
CONSOLIDATED
QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
|
Second
|
First
|
Fourth
|
Third
|
|
Third Quarter 2015
Compared To:
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
Second Quarter
2015
|
|
Third Quarter
2014
|
(in millions,
except per share data)
|
2015
|
2015
|
2015
|
2014
|
2014
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
390
|
|
$
|
388
|
|
$
|
378
|
|
$
|
383
|
|
$
|
381
|
|
|
$
|
2
|
|
—
|
%
|
|
$
|
9
|
|
2
|
%
|
Interest on
investment securities
|
54
|
|
53
|
|
53
|
|
51
|
|
52
|
|
|
1
|
|
2
|
|
|
2
|
|
3
|
|
Interest on
short-term investments
|
4
|
|
3
|
|
4
|
|
4
|
|
3
|
|
|
1
|
|
39
|
|
|
1
|
|
38
|
|
Total interest
income
|
448
|
|
444
|
|
435
|
|
438
|
|
436
|
|
|
4
|
|
1
|
|
|
12
|
|
3
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
11
|
|
11
|
|
11
|
|
12
|
|
11
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Interest on medium-
and long-term debt
|
15
|
|
12
|
|
11
|
|
11
|
|
11
|
|
|
3
|
|
22
|
|
|
4
|
|
27
|
|
Total interest
expense
|
26
|
|
23
|
|
22
|
|
23
|
|
22
|
|
|
3
|
|
12
|
|
|
4
|
|
12
|
|
Net interest
income
|
422
|
|
421
|
|
413
|
|
415
|
|
414
|
|
|
$
|
1
|
|
—
|
|
|
$
|
8
|
|
2
|
|
Provision for credit
losses
|
26
|
|
47
|
|
14
|
|
2
|
|
5
|
|
|
(21)
|
|
(44)
|
|
|
21
|
|
n/m
|
|
Net interest income
after provision
for credit
losses
|
396
|
|
374
|
|
399
|
|
413
|
|
409
|
|
|
22
|
|
6
|
|
|
(13)
|
|
(3)
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
56
|
|
56
|
|
55
|
|
53
|
|
54
|
|
|
—
|
|
—
|
|
|
2
|
|
4
|
|
Fiduciary
income
|
47
|
|
48
|
|
47
|
|
47
|
|
44
|
|
|
(1)
|
|
(3)
|
|
|
3
|
|
5
|
|
Commercial lending
fees
|
22
|
|
22
|
|
25
|
|
29
|
|
26
|
|
|
—
|
|
—
|
|
|
(4)
|
|
(13)
|
|
Card fees
|
75
|
|
72
|
|
67
|
|
24
|
|
23
|
|
|
3
|
|
4
|
|
|
52
|
|
n/m
|
|
Letter of credit
fees
|
13
|
|
13
|
|
13
|
|
14
|
|
14
|
|
|
—
|
|
—
|
|
|
(1)
|
|
(8)
|
|
Bank-owned life
insurance
|
10
|
|
10
|
|
9
|
|
8
|
|
11
|
|
|
—
|
|
—
|
|
|
(1)
|
|
—
|
|
Foreign exchange
income
|
10
|
|
9
|
|
10
|
|
10
|
|
9
|
|
|
1
|
|
10
|
|
|
1
|
|
8
|
|
Brokerage
fees
|
5
|
|
4
|
|
4
|
|
4
|
|
4
|
|
|
1
|
|
6
|
|
|
1
|
|
20
|
|
Net securities
losses
|
—
|
|
—
|
|
(2)
|
|
—
|
|
(1)
|
|
|
—
|
|
—
|
|
|
1
|
|
n/m
|
|
Other noninterest
income
|
26
|
|
27
|
|
27
|
|
36
|
|
31
|
|
|
(1)
|
|
—
|
|
|
(5)
|
|
(17)
|
|
Total noninterest
income
|
264
|
|
261
|
|
255
|
|
225
|
|
215
|
|
|
3
|
|
1
|
|
|
49
|
|
23
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
expense
|
243
|
|
251
|
|
253
|
|
245
|
|
248
|
|
|
(8)
|
|
(3)
|
|
|
(5)
|
|
(2)
|
|
Net occupancy
expense
|
41
|
|
39
|
|
38
|
|
46
|
|
46
|
|
|
2
|
|
5
|
|
|
(5)
|
|
(11)
|
|
Equipment
expense
|
14
|
|
13
|
|
13
|
|
14
|
|
14
|
|
|
1
|
|
4
|
|
|
—
|
|
—
|
|
Outside processing
fee expense
|
86
|
|
86
|
|
77
|
|
33
|
|
31
|
|
|
—
|
|
—
|
|
|
55
|
|
n/m
|
|
Software
expense
|
26
|
|
24
|
|
23
|
|
23
|
|
25
|
|
|
2
|
|
8
|
|
|
1
|
|
4
|
|
Litigation-related
expense
|
(3)
|
|
(30)
|
|
1
|
|
—
|
|
(2)
|
|
|
27
|
|
88
|
|
|
(1)
|
|
n/m
|
|
FDIC insurance
expense
|
9
|
|
9
|
|
9
|
|
8
|
|
9
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Advertising
expense
|
6
|
|
5
|
|
6
|
|
7
|
|
5
|
|
|
1
|
|
10
|
|
|
1
|
|
8
|
|
Gain on debt
redemption
|
—
|
|
—
|
|
—
|
|
—
|
|
(32)
|
|
|
—
|
|
—
|
|
|
32
|
|
n/m
|
|
Other noninterest
expenses
|
39
|
|
39
|
|
39
|
|
43
|
|
53
|
|
|
—
|
|
—
|
|
|
(14)
|
|
(25)
|
|
Total noninterest
expenses
|
461
|
|
436
|
|
459
|
|
419
|
|
397
|
|
|
25
|
|
6
|
|
|
64
|
|
16
|
|
Income before income
taxes
|
199
|
|
199
|
|
195
|
|
219
|
|
227
|
|
|
—
|
|
—
|
|
|
(28)
|
|
(12)
|
|
Provision for income
taxes
|
63
|
|
64
|
|
61
|
|
70
|
|
73
|
|
|
(1)
|
|
(2)
|
|
|
(10)
|
|
(14)
|
|
NET
INCOME
|
136
|
|
135
|
|
134
|
|
149
|
|
154
|
|
|
1
|
|
—
|
|
|
(18)
|
|
(12)
|
|
Less income allocated
to participating securities
|
2
|
|
1
|
|
2
|
|
1
|
|
2
|
|
|
1
|
|
—
|
|
|
—
|
|
—
|
|
Net income
attributable to common shares
|
$
|
134
|
|
$
|
134
|
|
$
|
132
|
|
$
|
148
|
|
$
|
152
|
|
|
$
|
—
|
|
—
|
%
|
|
$
|
(18)
|
|
(11)%
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
$
|
0.76
|
|
$
|
0.75
|
|
$
|
0.83
|
|
$
|
0.85
|
|
|
$
|
—
|
|
—
|
%
|
|
$
|
(0.09)
|
|
(11)%
|
|
Diluted
|
0.74
|
|
0.73
|
|
0.73
|
|
0.80
|
|
0.82
|
|
|
0.01
|
|
1
|
|
|
(0.08)
|
|
(10)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
187
|
|
109
|
|
176
|
|
54
|
|
141
|
|
|
78
|
|
72
|
|
|
46
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
37
|
|
37
|
|
36
|
|
36
|
|
36
|
|
|
—
|
|
—
|
|
|
1
|
|
3
|
|
Cash dividends
declared per common share
|
0.21
|
|
0.21
|
|
0.20
|
|
0.20
|
|
0.20
|
|
|
—
|
|
—
|
|
|
0.01
|
|
5
|
|
ANALYSIS OF THE
ALLOWANCE FOR LOAN LOSSES (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
3rd
Qtr
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
618
|
|
$
|
601
|
|
$
|
594
|
|
|
$
|
592
|
|
$
|
591
|
|
|
|
|
|
|
|
|
Loan
charge-offs:
|
|
|
|
|
|
|
Commercial
|
30
|
|
17
|
|
19
|
|
|
8
|
|
13
|
|
Commercial
mortgage
|
—
|
|
2
|
|
—
|
|
|
2
|
|
7
|
|
Lease
financing
|
—
|
|
1
|
|
—
|
|
|
—
|
|
—
|
|
International
|
1
|
|
11
|
|
2
|
|
|
6
|
|
—
|
|
Residential
mortgage
|
—
|
|
1
|
|
—
|
|
|
1
|
|
1
|
|
Consumer
|
3
|
|
3
|
|
2
|
|
|
3
|
|
3
|
|
Total loan
charge-offs
|
34
|
|
35
|
|
23
|
|
|
20
|
|
24
|
|
|
|
|
|
|
|
|
Recoveries on loans
previously charged-off:
|
|
|
|
|
|
|
Commercial
|
8
|
|
10
|
|
9
|
|
|
6
|
|
6
|
|
Real estate
construction
|
—
|
|
1
|
|
—
|
|
|
2
|
|
1
|
|
Commercial
mortgage
|
2
|
|
5
|
|
3
|
|
|
10
|
|
12
|
|
Residential
mortgage
|
—
|
|
—
|
|
1
|
|
|
—
|
|
1
|
|
Consumer
|
1
|
|
1
|
|
2
|
|
|
1
|
|
1
|
|
Total
recoveries
|
11
|
|
17
|
|
15
|
|
|
19
|
|
21
|
|
Net loan
charge-offs
|
23
|
|
18
|
|
8
|
|
|
1
|
|
3
|
|
Provision for loan
losses
|
28
|
|
35
|
|
16
|
|
|
4
|
|
4
|
|
Foreign currency
translation adjustment
|
(1)
|
|
—
|
|
(1)
|
|
|
(1)
|
|
—
|
|
Balance at end of
period
|
$
|
622
|
|
$
|
618
|
|
$
|
601
|
|
|
$
|
594
|
|
$
|
592
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.27
|
%
|
1.24
|
%
|
1.22
|
%
|
|
1.22
|
%
|
1.24
|
%
|
|
|
|
|
|
|
|
Net loan charge-offs
as a percentage of average total loans
|
0.19
|
|
0.15
|
|
0.07
|
|
|
0.01
|
|
0.03
|
|
ANALYSIS OF THE
ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
3rd
Qtr
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
50
|
|
$
|
39
|
|
$
|
41
|
|
|
$
|
43
|
|
$
|
42
|
|
Less: Charge-offs on
lending-related commitments (a)
|
—
|
|
1
|
|
—
|
|
|
—
|
|
—
|
|
Add: Provision for
credit losses on lending-related commitments
|
(2)
|
|
12
|
|
(2)
|
|
|
(2)
|
|
1
|
|
Balance at end of
period
|
$
|
48
|
|
$
|
50
|
|
$
|
39
|
|
|
$
|
41
|
|
$
|
43
|
|
|
|
|
|
|
|
|
Unfunded
lending-related commitments sold
|
$
|
—
|
|
$
|
12
|
|
$
|
1
|
|
|
$
|
—
|
|
$
|
9
|
|
(a)
|
Charge-offs result
from the sale of unfunded lending-related commitments.
|
|
NONPERFORMING
ASSETS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
3rd
Qtr
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
|
|
|
|
|
|
|
SUMMARY OF
NONPERFORMING ASSETS AND PAST DUE LOANS
|
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Business
loans:
|
|
|
|
|
|
|
Commercial
|
$
|
214
|
|
$
|
186
|
|
$
|
113
|
|
|
$
|
109
|
|
$
|
93
|
|
Real estate
construction
|
1
|
|
1
|
|
1
|
|
|
2
|
|
18
|
|
Commercial
mortgage
|
66
|
|
77
|
|
82
|
|
|
95
|
|
144
|
|
Lease
financing
|
8
|
|
11
|
|
—
|
|
|
—
|
|
—
|
|
International
|
8
|
|
9
|
|
1
|
|
|
—
|
|
—
|
|
Total nonaccrual business loans
|
297
|
|
284
|
|
197
|
|
|
206
|
|
255
|
|
Retail
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
31
|
|
35
|
|
37
|
|
|
36
|
|
42
|
|
Consumer:
|
|
|
|
|
|
|
Home
equity
|
28
|
|
29
|
|
31
|
|
|
30
|
|
31
|
|
Other
consumer
|
1
|
|
1
|
|
1
|
|
|
1
|
|
1
|
|
Total consumer
|
29
|
|
30
|
|
32
|
|
|
31
|
|
32
|
|
Total nonaccrual
retail loans
|
60
|
|
65
|
|
69
|
|
|
67
|
|
74
|
|
Total nonaccrual
loans
|
357
|
|
349
|
|
266
|
|
|
273
|
|
329
|
|
Reduced-rate
loans
|
12
|
|
12
|
|
13
|
|
|
17
|
|
17
|
|
Total nonperforming
loans (a)
|
369
|
|
361
|
|
279
|
|
|
290
|
|
346
|
|
Foreclosed
property
|
12
|
|
9
|
|
9
|
|
|
10
|
|
11
|
|
Total nonperforming
assets (a)
|
$
|
381
|
|
$
|
370
|
|
$
|
288
|
|
|
$
|
300
|
|
$
|
357
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percentage of total loans
|
0.75
|
%
|
0.72
|
%
|
0.57
|
%
|
|
0.60
|
%
|
0.73
|
%
|
Nonperforming assets
as a percentage of total loans
and foreclosed
property
|
0.78
|
|
0.74
|
|
0.59
|
|
|
0.62
|
|
0.75
|
|
Allowance for loan
losses as a percentage of total
nonperforming
loans
|
169
|
|
171
|
|
216
|
|
|
205
|
|
171
|
|
Loans past due 90
days or more and still accruing
|
$
|
5
|
|
$
|
18
|
|
$
|
12
|
|
|
$
|
5
|
|
$
|
13
|
|
|
|
|
|
|
|
|
ANALYSIS OF
NONACCRUAL LOANS
|
|
|
|
|
|
|
Nonaccrual loans at
beginning of period
|
$
|
349
|
|
$
|
266
|
|
$
|
273
|
|
|
$
|
329
|
|
$
|
326
|
|
Loans transferred to
nonaccrual (b)
|
69
|
|
145
|
|
39
|
|
|
41
|
|
54
|
|
Nonaccrual business
loan gross charge-offs (c)
|
(31)
|
|
(31)
|
|
(21)
|
|
|
(16)
|
|
(20)
|
|
Loans transferred to
accrual status (b)
|
—
|
|
—
|
|
(4)
|
|
|
(18)
|
|
—
|
|
Nonaccrual business
loans sold (d)
|
—
|
|
(1)
|
|
(2)
|
|
|
(24)
|
|
(3)
|
|
Payments/Other
(e)
|
(30)
|
|
(30)
|
|
(19)
|
|
|
(39)
|
|
(28)
|
|
Nonaccrual loans at
end of period
|
$
|
357
|
|
$
|
349
|
|
$
|
266
|
|
|
$
|
273
|
|
$
|
329
|
|
(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
|
|
$
|
31
|
|
$
|
21
|
|
|
$
|
16
|
|
$
|
20
|
|
Consumer and
residential mortgage loans
|
3
|
|
4
|
|
2
|
|
|
4
|
|
4
|
|
Total gross loan
charge-offs
|
$
|
34
|
|
$
|
35
|
|
$
|
23
|
|
|
$
|
20
|
|
$
|
24
|
|
(d) Analysis of loans
sold:
|
|
|
|
|
|
|
Nonaccrual business
loans
|
$
|
—
|
|
$
|
1
|
|
$
|
2
|
|
|
$
|
24
|
|
$
|
3
|
|
Performing criticized
loans
|
—
|
|
—
|
|
7
|
|
|
5
|
|
—
|
|
Total criticized
loans sold
|
$
|
—
|
|
$
|
1
|
|
$
|
9
|
|
|
$
|
29
|
|
$
|
3
|
|
(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.
|
ANALYSIS OF NET
INTEREST INCOME (FTE) (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
September 30,
2015
|
|
September 30,
2014
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,596
|
|
$
|
721
|
|
3.05
|
%
|
|
$
|
29,487
|
|
$
|
689
|
|
3.12
|
%
|
Real estate
construction loans
|
1,859
|
|
48
|
|
3.44
|
|
|
1,905
|
|
49
|
|
3.42
|
|
Commercial mortgage
loans
|
8,648
|
|
220
|
|
3.40
|
|
|
8,739
|
|
246
|
|
3.77
|
|
Lease
financing
|
793
|
|
19
|
|
3.13
|
|
|
840
|
|
20
|
|
3.23
|
|
International
loans
|
1,455
|
|
39
|
|
3.63
|
|
|
1,349
|
|
37
|
|
3.64
|
|
Residential mortgage
loans
|
1,872
|
|
53
|
|
3.78
|
|
|
1,763
|
|
50
|
|
3.81
|
|
Consumer
loans
|
2,432
|
|
59
|
|
3.23
|
|
|
2,244
|
|
54
|
|
3.21
|
|
Total loans
(a)
|
48,655
|
|
1,159
|
|
3.19
|
|
|
46,327
|
|
1,145
|
|
3.30
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,076
|
|
151
|
|
2.23
|
|
|
8,976
|
|
159
|
|
2.36
|
|
Other investment
securities
|
950
|
|
9
|
|
1.18
|
|
|
369
|
|
1
|
|
0.44
|
|
Total investment
securities (b)
|
10,026
|
|
160
|
|
2.13
|
|
|
9,345
|
|
160
|
|
2.28
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
5,774
|
|
11
|
|
0.25
|
|
|
4,803
|
|
10
|
|
0.25
|
|
Other short-term
investments
|
106
|
|
—
|
|
0.78
|
|
|
110
|
|
—
|
|
0.60
|
|
Total earning
assets
|
64,561
|
|
1,330
|
|
2.76
|
|
|
60,585
|
|
1,315
|
|
2.90
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,054
|
|
|
|
|
932
|
|
|
|
Allowance for loan
losses
|
(614)
|
|
|
|
|
(602)
|
|
|
|
Accrued income and
other assets
|
4,687
|
|
|
|
|
4,420
|
|
|
|
Total
assets
|
$
|
69,688
|
|
|
|
|
$
|
65,335
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
23,973
|
|
20
|
|
0.11
|
|
|
$
|
22,571
|
|
18
|
|
0.11
|
|
Savings
deposits
|
1,827
|
|
—
|
|
0.02
|
|
|
1,734
|
|
—
|
|
0.03
|
|
Customer certificates
of deposit
|
4,359
|
|
12
|
|
0.37
|
|
|
4,990
|
|
13
|
|
0.36
|
|
Foreign office time
deposits
|
123
|
|
1
|
|
1.13
|
|
|
304
|
|
2
|
|
0.68
|
|
Total
interest-bearing deposits
|
30,282
|
|
33
|
|
0.14
|
|
|
29,599
|
|
33
|
|
0.15
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
93
|
|
—
|
|
0.05
|
|
|
209
|
|
—
|
|
0.03
|
|
Medium- and long-term
debt
|
2,843
|
|
38
|
|
1.80
|
|
|
3,061
|
|
39
|
|
1.67
|
|
Total
interest-bearing sources
|
33,218
|
|
71
|
|
0.28
|
|
|
32,869
|
|
72
|
|
0.29
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
27,569
|
|
|
|
|
24,182
|
|
|
|
Accrued expenses and
other liabilities
|
1,393
|
|
|
|
|
960
|
|
|
|
Total shareholders'
equity
|
7,508
|
|
|
|
|
7,324
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
69,688
|
|
|
|
|
$
|
65,335
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread (FTE)
|
|
$
|
1,259
|
|
2.48
|
|
|
|
$
|
1,243
|
|
2.61
|
|
|
|
|
|
|
|
|
|
FTE
adjustment
|
|
$
|
3
|
|
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.13
|
|
|
|
|
0.13
|
|
Net interest margin
(as a percentage of average earning assets) (FTE) (a)
|
|
|
2.61
|
%
|
|
|
|
2.74
|
%
|
(a)
|
Accretion of the
purchase discount on the acquired loan portfolio of $6 million and
$25 million in the nine months ended September 30, 2015 and 2014,
respectively, increased the net interest margin by 1 basis point
and 6 basis points in each respective period.
|
(b)
|
Includes investment
securities available-for-sale and investment securities
held-to-maturity.
|
ANALYSIS OF NET
INTEREST INCOME (FTE) (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
September 30,
2015
|
|
June 30,
2015
|
|
September 30,
2014
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,900
|
|
$
|
244
|
|
3.04
|
%
|
|
$
|
31,788
|
|
$
|
243
|
|
3.07
|
%
|
|
$
|
30,188
|
|
$
|
236
|
|
3.11
|
%
|
Real estate
construction loans
|
1,833
|
|
16
|
|
3.47
|
|
|
1,807
|
|
16
|
|
3.51
|
|
|
1,973
|
|
17
|
|
3.41
|
|
Commercial mortgage
loans
|
8,691
|
|
74
|
|
3.39
|
|
|
8,672
|
|
73
|
|
3.38
|
|
|
8,698
|
|
76
|
|
3.45
|
|
Lease
financing
|
788
|
|
6
|
|
3.16
|
|
|
795
|
|
6
|
|
3.19
|
|
|
823
|
|
4
|
|
2.33
|
|
International
loans
|
1,401
|
|
13
|
|
3.51
|
|
|
1,453
|
|
13
|
|
3.68
|
|
|
1,417
|
|
13
|
|
3.59
|
|
Residential mortgage
loans
|
1,882
|
|
18
|
|
3.79
|
|
|
1,877
|
|
18
|
|
3.78
|
|
|
1,792
|
|
17
|
|
3.76
|
|
Consumer
loans
|
2,477
|
|
20
|
|
3.21
|
|
|
2,441
|
|
20
|
|
3.25
|
|
|
2,268
|
|
19
|
|
3.24
|
|
Total loans
(a)
|
48,972
|
|
391
|
|
3.17
|
|
|
48,833
|
|
389
|
|
3.20
|
|
|
47,159
|
|
382
|
|
3.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,099
|
|
50
|
|
2.21
|
|
|
9,057
|
|
50
|
|
2.23
|
|
|
9,020
|
|
52
|
|
2.29
|
|
Other investment
securities
|
1,133
|
|
4
|
|
1.26
|
|
|
879
|
|
3
|
|
1.16
|
|
|
368
|
|
—
|
|
0.43
|
|
Total investment
securities (b)
|
10,232
|
|
54
|
|
2.11
|
|
|
9,936
|
|
53
|
|
2.13
|
|
|
9,388
|
|
52
|
|
2.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
6,869
|
|
4
|
|
0.25
|
|
|
5,110
|
|
3
|
|
0.25
|
|
|
5,015
|
|
3
|
|
0.25
|
|
Other short-term
investments
|
118
|
|
—
|
|
0.82
|
|
|
102
|
|
—
|
|
0.42
|
|
|
110
|
|
—
|
|
0.54
|
|
Total earning
assets
|
66,191
|
|
449
|
|
2.70
|
|
|
63,981
|
|
445
|
|
2.79
|
|
|
61,672
|
|
437
|
|
2.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,095
|
|
|
|
|
1,041
|
|
|
|
|
963
|
|
|
|
Allowance for loan
losses
|
(628)
|
|
|
|
|
(613)
|
|
|
|
|
(601)
|
|
|
|
Accrued income and
other assets
|
4,675
|
|
|
|
|
4,554
|
|
|
|
|
4,364
|
|
|
|
Total
assets
|
$
|
71,333
|
|
|
|
|
$
|
68,963
|
|
|
|
|
$
|
66,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
24,298
|
|
7
|
|
0.11
|
|
|
$
|
23,659
|
|
6
|
|
0.11
|
|
|
$
|
23,146
|
|
6
|
|
0.11
|
|
Savings
deposits
|
1,860
|
|
—
|
|
0.02
|
|
|
1,834
|
|
—
|
|
0.02
|
|
|
1,759
|
|
—
|
|
0.03
|
|
Customer certificates
of deposit
|
4,232
|
|
4
|
|
0.37
|
|
|
4,422
|
|
4
|
|
0.37
|
|
|
4,824
|
|
4
|
|
0.36
|
|
Foreign office time
deposits
|
127
|
|
—
|
|
0.70
|
|
|
118
|
|
1
|
|
1.26
|
|
|
159
|
|
1
|
|
1.43
|
|
Total
interest-bearing deposits
|
30,517
|
|
11
|
|
0.14
|
|
|
30,033
|
|
11
|
|
0.14
|
|
|
29,888
|
|
11
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
91
|
|
—
|
|
0.04
|
|
|
78
|
|
—
|
|
0.04
|
|
|
231
|
|
—
|
|
0.03
|
|
Medium- and long-term
debt
|
3,175
|
|
15
|
|
1.85
|
|
|
2,661
|
|
12
|
|
1.83
|
|
|
2,649
|
|
11
|
|
1.75
|
|
Total
interest-bearing sources
|
33,783
|
|
26
|
|
0.30
|
|
|
32,772
|
|
23
|
|
0.28
|
|
|
32,768
|
|
22
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
28,623
|
|
|
|
|
27,365
|
|
|
|
|
25,275
|
|
|
|
Accrued expenses and
other liabilities
|
1,368
|
|
|
|
|
1,314
|
|
|
|
|
944
|
|
|
|
Total shareholders'
equity
|
7,559
|
|
|
|
|
7,512
|
|
|
|
|
7,411
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
71,333
|
|
|
|
|
$
|
68,963
|
|
|
|
|
$
|
66,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread (FTE)
|
|
$
|
423
|
|
2.40
|
|
|
|
$
|
422
|
|
2.51
|
|
|
|
$
|
415
|
|
2.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE
adjustment
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.14
|
|
|
|
|
0.14
|
|
|
|
|
0.13
|
|
Net interest margin
(as a percentage of average earning assets) (FTE) (a)
|
|
|
2.54
|
%
|
|
|
|
2.65
|
%
|
|
|
|
2.67
|
%
|
|
|
(a)
|
Accretion of the
purchase discount on the acquired loan portfolio of $2 million, $2
million and $3 million in the third quarter 2015, the second
quarter 2015 and the third quarter 2014, respectively, increased
the net interest margin by 1 basis point, 1 basis point and 2 basis
points in each respective period.
|
(b)
|
Includes investment
securities available-for-sale and investment securities
held-to-maturity.
|
CONSOLIDATED
STATISTICAL DATA (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
(in millions,
except per share data)
|
2015
|
2015
|
2015
|
2014
|
2014
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
Floor plan
|
$
|
3,538
|
|
$
|
3,840
|
|
$
|
3,544
|
|
$
|
3,790
|
|
$
|
3,183
|
|
Other
|
28,239
|
|
28,883
|
|
28,547
|
|
27,730
|
|
27,576
|
|
Total commercial
loans
|
31,777
|
|
32,723
|
|
32,091
|
|
31,520
|
|
30,759
|
|
Real estate
construction loans
|
1,874
|
|
1,795
|
|
1,917
|
|
1,955
|
|
1,992
|
|
Commercial mortgage
loans
|
8,787
|
|
8,674
|
|
8,558
|
|
8,604
|
|
8,603
|
|
Lease
financing
|
751
|
|
786
|
|
792
|
|
805
|
|
805
|
|
International
loans
|
1,382
|
|
1,420
|
|
1,433
|
|
1,496
|
|
1,429
|
|
Residential mortgage
loans
|
1,880
|
|
1,865
|
|
1,859
|
|
1,831
|
|
1,797
|
|
Consumer
loans:
|
|
|
|
|
|
Home
equity
|
1,714
|
|
1,682
|
|
1,678
|
|
1,658
|
|
1,634
|
|
Other
consumer
|
777
|
|
796
|
|
744
|
|
724
|
|
689
|
|
Total consumer
loans
|
2,491
|
|
2,478
|
|
2,422
|
|
2,382
|
|
2,323
|
|
Total
loans
|
$
|
48,942
|
|
$
|
49,741
|
|
$
|
49,072
|
|
$
|
48,593
|
|
$
|
47,708
|
|
|
|
|
|
|
|
Goodwill
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
Core deposit
intangible
|
10
|
|
11
|
|
12
|
|
13
|
|
14
|
|
Other
intangibles
|
4
|
|
4
|
|
3
|
|
2
|
|
1
|
|
|
|
|
|
|
|
Common equity tier 1
capital (a) (b)
|
7,327
|
|
7,280
|
|
7,230
|
|
n/a
|
|
n/a
|
|
Tier 1 common capital
(c)
|
n/a
|
|
n/a
|
|
n/a
|
|
7,169
|
|
7,105
|
|
Risk-weighted assets
(a) (b)
|
69,232
|
|
69,967
|
|
69,514
|
|
68,273
|
|
67,106
|
|
|
|
|
|
|
|
Common equity tier 1
risk-based capital ratio (a) (b)
|
10.58
|
%
|
10.40
|
%
|
10.40
|
%
|
n/a
|
|
n/a
|
|
Tier 1 common
risk-based capital ratio (c)
|
n/a
|
|
n/a
|
|
n/a
|
|
10.50
|
%
|
10.59
|
%
|
Tier 1 risk-based
capital ratio (a) (b)
|
10.58
|
|
10.40
|
|
10.40
|
|
10.50
|
|
10.59
|
|
Total risk-based
capital ratio (a) (b)
|
12.91
|
|
12.38
|
|
12.35
|
|
12.51
|
|
12.83
|
|
Leverage ratio (a)
(b)
|
10.29
|
|
10.56
|
|
10.53
|
|
10.35
|
|
10.79
|
|
Tangible common
equity ratio (c)
|
9.91
|
|
9.92
|
|
9.97
|
|
9.85
|
|
9.94
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
43.02
|
|
$
|
42.18
|
|
$
|
42.12
|
|
$
|
41.35
|
|
$
|
41.26
|
|
Tangible common
equity per share of common stock (c)
|
39.36
|
|
38.53
|
|
38.47
|
|
37.72
|
|
37.65
|
|
Market value per
share for the quarter:
|
|
|
|
|
|
High
|
52.93
|
|
53.45
|
|
47.94
|
|
50.14
|
|
52.72
|
|
Low
|
40.01
|
|
44.38
|
|
40.09
|
|
42.73
|
|
48.33
|
|
Close
|
41.10
|
|
51.32
|
|
45.13
|
|
46.84
|
|
49.86
|
|
|
|
|
|
|
|
Quarterly
ratios:
|
|
|
|
|
|
Return on average
common shareholders' equity
|
7.19
|
%
|
7.21
|
%
|
7.20
|
%
|
7.96
|
%
|
8.29
|
%
|
Return on average
assets
|
0.76
|
|
0.79
|
|
0.78
|
|
0.86
|
|
0.93
|
|
Efficiency ratio
(d)
|
67.08
|
|
63.68
|
|
68.50
|
|
65.26
|
|
62.87
|
|
|
|
|
|
|
|
Number of banking
centers
|
477
|
|
477
|
|
482
|
|
481
|
|
481
|
|
|
|
|
|
|
|
Number of employees -
full time equivalent
|
8,941
|
|
8,901
|
|
8,831
|
|
8,876
|
|
8,913
|
|
|
|
|
(a)
|
Basel III rules
became effective January 1, 2015, with transitional provisions. All
prior period data is based on Basel I rules.
|
|
(b)
|
September 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.
|
PARENT COMPANY
ONLY BALANCE SHEETS (unaudited)
|
Comerica
Incorporated
|
|
|
|
|
|
|
|
|
September
30,
|
December
31,
|
September
30,
|
(in millions,
except share data)
|
2015
|
2014
|
2014
|
|
|
|
|
ASSETS
|
|
|
|
Cash and due from
subsidiary bank
|
$
|
5
|
|
$
|
—
|
|
$
|
5
|
|
Short-term
investments with subsidiary bank
|
563
|
|
1,133
|
|
1,136
|
|
Other short-term
investments
|
89
|
|
94
|
|
97
|
|
Investment in
subsidiaries, principally banks
|
7,596
|
|
7,411
|
|
7,433
|
|
Premises and
equipment
|
2
|
|
2
|
|
2
|
|
Other
assets
|
138
|
|
138
|
|
130
|
|
Total
assets
|
$
|
8,393
|
|
$
|
8,778
|
|
$
|
8,803
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Medium- and long-term
debt
|
$
|
618
|
|
$
|
1,208
|
|
$
|
1,198
|
|
Other
liabilities
|
153
|
|
168
|
|
172
|
|
Total
liabilities
|
771
|
|
1,376
|
|
1,370
|
|
|
|
|
|
Common stock - $5 par
value:
|
|
|
|
Authorized -
325,000,000 shares
|
|
|
|
Issued - 228,164,824
shares
|
1,141
|
|
1,141
|
|
1,141
|
|
Capital
surplus
|
2,165
|
|
2,188
|
|
2,183
|
|
Accumulated other
comprehensive loss
|
(345)
|
|
(412)
|
|
(317)
|
|
Retained
earnings
|
7,007
|
|
6,744
|
|
6,631
|
|
Less cost of common
stock in treasury - 51,010,418 shares at 9/30/15, 49,146,225 shares
at 12/31/14 and 47,992,721 shares at 9/30/14
|
(2,346)
|
|
(2,259)
|
|
(2,205)
|
|
Total
shareholders' equity
|
7,622
|
|
7,402
|
|
7,433
|
|
Total
liabilities and shareholders' equity
|
$
|
8,393
|
|
$
|
8,778
|
|
$
|
8,803
|
|
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
|
—
|
|
—
|
|
—
|
|
—
|
|
444
|
|
—
|
|
444
|
|
Other comprehensive
income, net of tax
|
—
|
|
—
|
|
—
|
|
74
|
|
—
|
|
—
|
|
74
|
|
Cash dividends
declared on common stock ($0.59 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(107)
|
|
—
|
|
(107)
|
|
Purchase of common
stock
|
(4.1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(200)
|
|
(200)
|
|
Net issuance of
common stock under employee stock plans
|
2.0
|
|
—
|
|
(26)
|
|
—
|
|
(24)
|
|
91
|
|
41
|
|
Share-based
compensation
|
—
|
|
—
|
|
31
|
|
—
|
|
—
|
|
—
|
|
31
|
|
Other
|
—
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
1
|
|
—
|
|
BALANCE AT
SEPTEMBER 30, 2014
|
180.2
|
|
$
|
1,141
|
|
$
|
2,183
|
|
$
|
(317)
|
|
$
|
6,631
|
|
$
|
(2,205)
|
|
$
|
7,433
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2014
|
179.0
|
|
$
|
1,141
|
|
$
|
2,188
|
|
$
|
(412)
|
|
$
|
6,744
|
|
$
|
(2,259)
|
|
$
|
7,402
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
405
|
|
—
|
|
405
|
|
Other comprehensive
income, net of tax
|
—
|
|
—
|
|
—
|
|
67
|
|
—
|
|
—
|
|
67
|
|
Cash dividends
declared on common stock ($0.62 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(110)
|
|
—
|
|
(110)
|
|
Purchase of common
stock
|
(3.8)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(175)
|
|
(175)
|
|
Purchase and
retirement of warrants
|
—
|
|
—
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
(10)
|
|
Net issuance of
common stock under employee stock plans
|
1.0
|
|
—
|
|
(21)
|
|
—
|
|
(10)
|
|
45
|
|
14
|
|
Net issuance of
common stock for warrants
|
1.0
|
|
—
|
|
(21)
|
|
—
|
|
(22)
|
|
43
|
|
—
|
|
Share-based
compensation
|
—
|
|
—
|
|
29
|
|
—
|
|
—
|
|
—
|
|
29
|
|
BALANCE AT
SEPTEMBER 30, 2015
|
177.2
|
|
$
|
1,141
|
|
$
|
2,165
|
|
$
|
(345)
|
|
$
|
7,007
|
|
$
|
(2,346)
|
|
$
|
7,622
|
|
BUSINESS SEGMENT
FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
380
|
|
|
$
|
158
|
|
|
$
|
45
|
|
|
$
|
(162)
|
|
|
$
|
2
|
|
|
$
|
423
|
|
Provision for credit
losses
|
30
|
|
|
2
|
|
|
(3)
|
|
|
—
|
|
|
(3)
|
|
|
26
|
|
Noninterest
income
|
145
|
|
|
49
|
|
|
59
|
|
|
15
|
|
|
(4)
|
|
|
264
|
|
Noninterest
expenses
|
202
|
|
|
185
|
|
|
74
|
|
|
2
|
|
|
(2)
|
|
|
461
|
|
Provision (benefit)
for income taxes (FTE)
|
99
|
|
|
7
|
|
|
12
|
|
|
(56)
|
|
|
2
|
|
|
64
|
|
Net income
(loss)
|
$
|
194
|
|
|
$
|
13
|
|
|
$
|
21
|
|
|
$
|
(93)
|
|
|
$
|
1
|
|
|
$
|
136
|
|
Net loan charge-offs
(recoveries)
|
$
|
23
|
|
|
$
|
1
|
|
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
39,210
|
|
|
$
|
6,518
|
|
|
$
|
5,228
|
|
|
$
|
12,177
|
|
|
$
|
8,200
|
|
|
$
|
71,333
|
|
Loans
|
38,113
|
|
|
5,835
|
|
|
5,024
|
|
|
—
|
|
|
—
|
|
|
48,972
|
|
Deposits
|
31,397
|
|
|
23,079
|
|
|
4,188
|
|
|
212
|
|
|
264
|
|
|
59,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.98
|
%
|
|
0.23
|
%
|
|
1.62
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.76
|
%
|
Efficiency ratio
(b)
|
38.41
|
|
|
89.33
|
|
|
71.11
|
|
|
N/M
|
|
|
N/M
|
|
|
67.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
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
September 30, 2014
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
376
|
|
|
$
|
153
|
|
|
$
|
45
|
|
|
$
|
(166)
|
|
|
7
|
|
|
$
|
415
|
|
Provision for credit
losses
|
(4)
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
2
|
|
|
5
|
|
Noninterest
income
|
97
|
|
|
42
|
|
|
59
|
|
|
15
|
|
|
2
|
|
|
215
|
|
Noninterest
expenses
|
152
|
|
|
185
|
|
|
78
|
|
|
(29)
|
|
|
11
|
|
|
397
|
|
Provision (benefit)
for income taxes (FTE)
|
114
|
|
|
3
|
|
|
7
|
|
|
(49)
|
|
|
(1)
|
|
|
74
|
|
Net income
(loss)
|
$
|
211
|
|
|
$
|
7
|
|
|
$
|
12
|
|
|
$
|
(73)
|
|
|
$
|
(3)
|
|
|
$
|
154
|
|
Net loan charge-offs
(recoveries)
|
$
|
(2)
|
|
|
$
|
—
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
37,751
|
|
|
$
|
6,273
|
|
|
$
|
4,998
|
|
|
$
|
11,023
|
|
|
$
|
6,353
|
|
|
$
|
66,398
|
|
Loans
|
36,746
|
|
|
5,605
|
|
|
4,808
|
|
|
—
|
|
|
—
|
|
|
47,159
|
|
Deposits
|
28,815
|
|
|
22,042
|
|
|
3,924
|
|
|
128
|
|
|
254
|
|
|
55,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
2.24
|
%
|
|
0.12
|
%
|
|
0.98
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.93
|
%
|
Efficiency ratio
(b)
|
32.12
|
|
|
94.64
|
|
|
75.00
|
|
|
N/M
|
|
|
N/M
|
|
|
62.87
|
|
(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
|
MARKET SEGMENT
FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
September 30, 2015
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
180
|
|
|
$
|
187
|
|
|
$
|
129
|
|
|
$
|
87
|
|
|
$
|
(160)
|
|
|
$
|
423
|
|
Provision for credit
losses
|
6
|
|
|
24
|
|
|
10
|
|
|
(11)
|
|
|
(3)
|
|
|
26
|
|
Noninterest
income
|
85
|
|
|
38
|
|
|
34
|
|
|
96
|
|
|
11
|
|
|
264
|
|
Noninterest
expenses
|
152
|
|
|
102
|
|
|
97
|
|
|
110
|
|
|
—
|
|
|
461
|
|
Provision (benefit)
for income taxes (FTE)
|
36
|
|
|
37
|
|
|
20
|
|
|
25
|
|
|
(54)
|
|
|
64
|
|
Net income
(loss)
|
$
|
71
|
|
|
$
|
62
|
|
|
$
|
36
|
|
|
$
|
59
|
|
|
$
|
(92)
|
|
|
$
|
136
|
|
Net loan
charge-offs
|
$
|
9
|
|
|
$
|
10
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,856
|
|
|
$
|
17,060
|
|
|
$
|
11,578
|
|
|
$
|
8,462
|
|
|
$
|
20,377
|
|
|
$
|
71,333
|
|
Loans
|
13,223
|
|
|
16,789
|
|
|
10,997
|
|
|
7,963
|
|
|
—
|
|
|
48,972
|
|
Deposits
|
21,946
|
|
|
18,372
|
|
|
10,753
|
|
|
7,593
|
|
|
476
|
|
|
59,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.23
|
%
|
|
1.27
|
%
|
|
1.16
|
%
|
|
2.82
|
%
|
|
N/M
|
|
|
0.76
|
%
|
Efficiency ratio
(b)
|
57.49
|
|
|
45.28
|
|
|
59.54
|
|
|
59.86
|
|
|
N/M
|
|
|
67.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
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
September 30, 2014
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
179
|
|
|
$
|
182
|
|
|
$
|
130
|
|
|
$
|
83
|
|
|
$
|
(159)
|
|
|
$
|
415
|
|
Provision for credit
losses
|
(8)
|
|
|
14
|
|
|
3
|
|
|
(6)
|
|
|
2
|
|
|
5
|
|
Noninterest
income
|
83
|
|
|
37
|
|
|
36
|
|
|
42
|
|
|
17
|
|
|
215
|
|
Noninterest
expenses
|
166
|
|
|
102
|
|
|
96
|
|
|
51
|
|
|
(18)
|
|
|
397
|
|
Provision (benefit)
for income taxes (FTE)
|
38
|
|
|
40
|
|
|
25
|
|
|
21
|
|
|
(50)
|
|
|
74
|
|
Net income
(loss)
|
$
|
66
|
|
|
$
|
63
|
|
|
$
|
42
|
|
|
$
|
59
|
|
|
$
|
(76)
|
|
|
$
|
154
|
|
Net loan charge-offs
(recoveries)
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
(6)
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,724
|
|
|
$
|
15,768
|
|
|
$
|
11,835
|
|
|
$
|
7,695
|
|
|
$
|
17,376
|
|
|
$
|
66,398
|
|
Loans
|
13,248
|
|
|
15,509
|
|
|
11,147
|
|
|
7,255
|
|
|
—
|
|
|
47,159
|
|
Deposits
|
21,214
|
|
|
16,350
|
|
|
10,633
|
|
|
6,584
|
|
|
382
|
|
|
55,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.19
|
%
|
|
1.47
|
%
|
|
1.40
|
%
|
|
3.07
|
%
|
|
N/M
|
|
|
0.93
|
%
|
Efficiency ratio
(b)
|
62.91
|
|
|
46.49
|
|
|
57.91
|
|
|
41.46
|
|
|
N/M
|
|
|
62.87
|
|
(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
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
(dollar amounts in
millions)
|
2015
|
2015
|
2015
|
2014
|
2014
|
|
|
|
|
|
|
Tier 1 Common
Capital Ratio:
|
|
|
|
|
|
Tier 1 and Tier 1
common capital (a)
|
n/a
|
|
n/a
|
|
n/a
|
|
$
|
7,169
|
|
$
|
7,105
|
|
|
|
|
|
|
|
Risk-weighted assets
(a)
|
n/a
|
|
n/a
|
|
n/a
|
|
68,269
|
|
67,102
|
|
|
|
|
|
|
|
Tier 1 and Tier 1
common risk-based capital ratio
|
n/a
|
|
n/a
|
|
n/a
|
|
10.50
|
%
|
10.59
|
%
|
|
|
|
|
|
|
Tangible Common
Equity Ratio:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,622
|
|
$
|
7,523
|
|
$
|
7,500
|
|
$
|
7,402
|
|
$
|
7,433
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
14
|
|
15
|
|
15
|
|
15
|
|
15
|
|
Tangible common
equity
|
$
|
6,973
|
|
$
|
6,873
|
|
$
|
6,850
|
|
$
|
6,752
|
|
$
|
6,783
|
|
|
|
|
|
|
|
Total
assets
|
$
|
71,012
|
|
$
|
69,945
|
|
$
|
69,333
|
|
$
|
69,186
|
|
$
|
68,883
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
14
|
|
15
|
|
15
|
|
15
|
|
15
|
|
Tangible
assets
|
$
|
70,363
|
|
$
|
69,295
|
|
$
|
68,683
|
|
$
|
68,536
|
|
$
|
68,233
|
|
|
|
|
|
|
|
Common equity
ratio
|
10.73
|
%
|
10.76
|
%
|
10.82
|
%
|
10.70
|
%
|
10.79
|
%
|
Tangible common
equity ratio
|
9.91
|
|
9.92
|
|
9.97
|
|
9.85
|
|
9.94
|
|
|
|
|
|
|
|
Tangible Common
Equity per Share of Common Stock:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,622
|
|
$
|
7,523
|
|
$
|
7,500
|
|
$
|
7,402
|
|
$
|
7,433
|
|
Tangible common
equity
|
6,973
|
|
6,873
|
|
6,850
|
|
6,752
|
|
6,783
|
|
|
|
|
|
|
|
Shares of common
stock outstanding (in millions)
|
177
|
|
178
|
|
178
|
|
179
|
|
180
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
43.02
|
|
$
|
42.18
|
|
$
|
42.12
|
|
$
|
41.35
|
|
$
|
41.26
|
|
Tangible common
equity per share of common stock
|
39.36
|
|
38.53
|
|
38.47
|
|
37.72
|
|
37.65
|
|
(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.
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SOURCE Comerica Incorporated