DALLAS, July 19, 2016
/PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported second quarter 2016 net income of $104 million, compared to $60 million for the first quarter 2016 and
$135 million for the second quarter
2015. Earnings per diluted share were 58
cents for second quarter 2016 compared to 34 cents for first quarter 2016 and 73 cents for second quarter 2015. Comerica also
announced the implementation of its efficiency and revenue
initiative ("GEAR Up"), which is expected to drive additional
annual pre-tax income of approximately $230
million by year-end 2018 from the actions identified
to-date. Second quarter results include after-tax restructuring
charges of $34 million, or
19 cents per share, associated with
the initial phase of this initiative.
"Our second quarter results were solid with a $1.1 billion increase in average loans, improved
credit quality in our energy portfolio as well as increases in most
fee-based noninterest income categories," said Ralph W. Babb, Jr., chairman and chief executive
officer. "Noninterest expenses were well
controlled. Through share repurchases of $65 million and an increase in our dividend, we
returned $103 million to shareholders
in the second quarter 2016, compared to $79
million in the first quarter."
Growth in Efficiency and Revenue Initiative
"Based on our initial extensive review, we are announcing the
actions we are taking through Gear Up that are expected to deliver
additional annual pre-tax income of approximately $230 million by year-end 2018. This initiative
fundamentally transforms the way we operate to drive further
efficiency and revenue growth. We are confident the initiative will
improve profitability, despite current market conditions and a
tough banking environment," said Babb. "We expect our efficiency
ratio to improve, declining to the low 60 percent range by the end
of 2017, and at or below 60 percent by year-end 2018, without any
increase in interest rates. The initial actions will take us a long
way to achieving a double-digit return on equity and enhanced
shareholder value. Management will continue to identify additional
opportunities to further enhance profitability."
The initial GEAR Up initiative includes approximately
$140 million in pre-tax benefits
expected to be achieved by fiscal year-end 2017 and an anticipated
annual run-rate benefit of approximately $230 million by year-end 2018.
- Revenue enhancements expected to be approximately $30 million by year-end 2017, which increase to
approximately $70 million by year-end
2018, through expanded product offerings, enhanced sales tools and
training, re-aligned employee incentives and enhanced customer
analytics to drive opportunities.
- Expense reductions targeted to be approximately $110 million, which increases to approximately
$160 million by year-end 2018. This
is to be achieved through an approximately 9 percent reduction in
workforce, streamlining operational processes, real estate
optimization including consolidating about 40 banking centers,
selective outsourcing of technology functions and reduction of
technology system applications.
- Pre-tax restructuring charges of $140
million to $160 million in total are expected to be incurred
through 2018.
- For further information, see the accompanying Fact Sheet.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions, except per share data)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
445
|
|
|
$
|
447
|
|
|
$
|
421
|
|
|
Provision for credit
losses
|
49
|
|
|
148
|
|
|
47
|
|
|
Noninterest
income
|
269
|
|
|
246
|
|
|
258
|
|
|
Noninterest
expenses
|
519
|
|
(a)
|
460
|
|
|
433
|
|
(b)
|
Pre-tax
income
|
146
|
|
|
85
|
|
|
199
|
|
|
Provision for income
taxes
|
42
|
|
|
25
|
|
|
64
|
|
|
Net income
|
$
|
104
|
|
|
$
|
60
|
|
|
$
|
135
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shares
|
$
|
103
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|
|
$
|
59
|
|
|
$
|
134
|
|
|
|
|
|
|
|
|
|
Diluted income per
common share
|
0.58
|
|
|
0.34
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|
|
0.73
|
|
|
|
|
|
|
|
|
|
Average diluted
shares (in millions)
|
177
|
|
|
176
|
|
|
182
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1
capital ratio (c)
|
10.48
|
%
|
|
10.58
|
%
|
|
10.40
|
%
|
|
Common equity
ratio
|
10.79
|
|
|
11.08
|
|
|
10.76
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|
|
Tangible common
equity ratio (d)
|
9.98
|
|
|
10.23
|
|
|
9.92
|
|
|
(a) Included restructuring charge of $53 million in
the second quarter 2016.
|
(b) Included net release of litigation reserves of $30
million in the second quarter 2015.
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(c) June 30, 2016 ratio is
estimated.
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(d) See Reconciliation of Non-GAAP Financial
Measures.
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Second Quarter 2016 Compared to First
Quarter 2016
Average total loans increased $1.1
billion, or 2 percent, to $49.5
billion.
- Primarily reflected continued growth in Commercial Real Estate
and seasonal increases in Mortgage Banker Finance and National
Dealer Services; partially offset by an expected decline in Energy.
The growth in Commercial Real Estate primarily reflected
construction draws and term financing, mainly with existing
customers who are proven developers on projects with favorable risk
profiles.
- Period-end total loans increased $1.0
billion to $50.4 billion.
Average total deposits decreased $187
million to $56.5 billion.
- Driven by a $511 million decrease
in interest-bearing deposits, partially offset by a $324 million increase in noninterest-bearing
deposits.
- Average total deposits increased seasonally in the Retail Bank;
this was more than offset by a seasonal decrease in Municipalities
and purposeful pricing in Corporate Banking.
- Period-end deposits were unchanged at $56.4 billion.
Net interest income decreased $2
million to $445 million.
- Primarily the result of the impact of nonaccrual loans and
higher funding costs, partially offset by the benefit from the
increase in average loans.
The provision for credit losses decreased $99 million to $49
million.
- Net credit-related charge-offs were $47
million, or 0.38 percent of average loans, compared to
$58 million, or 0.49 percent, in the
first quarter 2016. Energy net credit-related charge-offs were
$32 million compared to $42 million in the first quarter 2016.
- The allowance for loan losses increased $5 million to $729
million, or 1.45 percent of total loans. The reserve
allocation for Energy exceeded 8 percent of loans in the Energy
business line.
Noninterest income increased $23
million to $269 million.
- Noninterest income increased $13
million, or 5 percent, excluding a $10 million increase in deferred compensation
asset returns (offset by an increase in deferred compensation plan
expense in noninterest expense).
- Fee-based income increased $11
million, primarily attributed to increases of $3 million each in card fees, fiduciary income
and customer derivative income, as well as a $2 million increase in commercial lending fees.
The increase in commercial lending fees resulted primarily from
higher syndication agent fees.
Noninterest expenses increased $59
million to $519 million.
- Second quarter restructuring charges of $53 million related to the initiatives previously
discussed included $46 million of
severance-related expenses and $7
million of professional services and other charges.
- Excluding the $53 million
restructuring charge, noninterest expenses increased $6 million, primarily including a $10 million increase in deferred compensation
plan expense (offset by an increase in deferred compensation asset
returns in noninterest income), partially offset by an $8 million gain from the sale of leased assets,
as well as increases of $5 million in
outside processing fees, $3 million
in FDIC insurance premiums and $2
million in advertising expense.
- Salaries and benefits expense decreased $1 million, primarily reflecting seasonal
decreases in share-based compensation and payroll taxes, partially
offset by the $10 million increase in
deferred compensation plan expense noted above, the impact of merit
increases, a seasonal increase in 401(k) contributions and
incentive compensation tied to revenue growth.
Capital position remained solid at June 30, 2016.
- Repurchased approximately 1.5 million shares of common stock
under the equity repurchase program.
- Including dividends, returned a total of $103 million to shareholders.
- Dividend increased 5 percent to 22
cents per share.
- As announced on June 29, 2016,
the Federal Reserve did not object to Comerica's 2016 capital plan
which includes equity repurchases up to $440
million for the four-quarter period ending in the second
quarter 2017. The timing and ultimate amount of equity repurchases
will be subject to various factors, including the Company's capital
position, financial performance and market conditions, including
interest rates. Restructuring charges associated with the GEAR Up
initiative are not expected to impact the pace of repurchases. In
addition, at its meeting on July 26,
2016, Comerica's board of directors will consider increasing
the quarterly dividend to 23 cents
per common share.
Second Quarter 2016 Compared to Second Quarter
2015
Average total loans increased $636
million, or 1 percent.
- Primarily reflected continued growth in Commercial Real Estate
and National Dealer Services, partially offset by declines in
Energy and general Middle Market.
Average total deposits decreased $877
million, or 2 percent.
- Primarily driven by decreases in Municipalities, Corporate
Banking and the Financial Services Division.
Net interest income increased $24
million, or 6 percent.
- Primarily due to higher yields on loans and Federal Reserve
Bank deposits, as well as earning asset growth; partially offset by
an increase in funding costs.
The provision for credit losses increased $2 million, or 5 percent.
Noninterest income increased $11
million, or 4 percent.
- Excluding a $4 million increase
in deferred compensation asset returns, noninterest income
increased $7 million, or 3 percent.
Fee-based income increased $6
million, primarily reflecting an $8
million increase in card fees, mostly due to increased
revenue from merchant payment processing services and government
card programs, and smaller increases in most other fee-based
categories; partially offset by a decrease of $4 million in investment banking fees.
Noninterest expense increased $86
million.
- Noninterest expense increased $3
million excluding the second quarter 2016 restructuring
charges of $53 million and the impact
of a $30 million net release of
litigation reserves in second quarter 2015. The remaining increase
primarily reflected increases of $6
million in software expense and $5
million in FDIC insurance premiums, partially offset by a
decrease of $4 million in salaries
and benefits and an $8 million
benefit from the sale of leased assets in the second quarter 2016.
- Salaries and benefits expense primarily reflected decreases of
$8 million in pension expense and
$4 million in share-based
compensation, partially offset by a $4
million increase in deferred compensation plan expense
(offset by an increase in deferred compensation asset returns in
noninterest income) and an increase of $4
million in regular salaries, mostly due to the impact of
merit raises.
Net Interest
Income
|
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|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
|
1st Qtr
'16
|
|
2nd Qtr
'15
|
Net interest
income
|
$
|
445
|
|
|
$
|
447
|
|
|
$
|
421
|
|
|
|
|
|
|
|
Net interest
margin
|
2.74
|
%
|
|
2.81
|
%
|
|
2.65
|
%
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Total earning
assets
|
$
|
65,597
|
|
|
$
|
64,123
|
|
|
$
|
63,981
|
|
Total
loans
|
49,469
|
|
|
48,392
|
|
|
48,833
|
|
Total investment
securities
|
12,334
|
|
|
12,357
|
|
|
9,936
|
|
Federal Reserve Bank
deposits
|
3,495
|
|
|
3,071
|
|
|
4,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
deposits
|
56,521
|
|
|
56,708
|
|
|
57,398
|
|
Total
noninterest-bearing deposits
|
28,376
|
|
|
28,052
|
|
|
27,365
|
|
Medium- and long-term
debt
|
5,072
|
|
|
3,093
|
|
|
2,661
|
|
Net interest income decreased $2
million to $445 million in the
second quarter 2016, compared to the first quarter 2016.
- Interest on loans was unchanged, as the benefit from an
increase in average loan balances (+$8 million) was offset by a
decrease in yields. The decrease in loan yields primarily reflected
lower nonaccrual interest recoveries in the second quarter 2016,
the impact of a negative residual value adjustment to assets in the
leasing portfolio and the full-quarter impact of loans transferred
to nonaccrual in the first quarter 2016.
- Interest expense on debt increased $3
million, primarily due to higher funding costs from new
Federal Home Loan Bank (FHLB) borrowings during the quarter.
The net interest margin of 2.74 percent decreased 7 basis points
compared to the first quarter 2016, primarily due to the impact of
increased FHLB borrowings (-2 basis points), lower loan yields (-4
basis points) and an increase in lower-yielding Federal Reserve
Bank deposit balances (-1 basis point). The impact of lower loan
yields included -3 basis points related to nonaccrual loans.
Credit Quality
"Energy loans continue to decline as expected, with a
$356 million decrease since the end
of the first quarter, as our customers continue to take the
necessary actions to reduce their bank debt. We have completed 88
percent of the spring redeterminations for our E&P customers,
and borrowing bases have come down about 22 percent on average.
Criticized energy loans have declined $281
million to 57 percent of energy loans as of the end of the
second quarter," said Babb. "While oil and gas prices have
improved, we remain cautious and believe with our reserve
allocation at over 8 percent of energy loans as of June 30, we are adequately reserved. Credit
quality in the remainder of the portfolio remains strong."
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|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
|
1st Qtr
'16
|
|
2nd Qtr
'15
|
Credit-related
charge-offs
|
$
|
59
|
|
|
$
|
83
|
|
|
$
|
35
|
|
Recoveries
|
12
|
|
|
25
|
|
|
17
|
|
Net credit-related
charge-offs
|
47
|
|
|
58
|
|
|
18
|
|
Net credit-related
charge-offs/Average total loans
|
0.38
|
%
|
|
0.49
|
%
|
|
0.15
|
%
|
|
|
|
|
|
|
Provision for credit
losses
|
$
|
49
|
|
|
$
|
148
|
|
|
$
|
47
|
|
|
|
|
|
|
|
Nonperforming
loans
|
613
|
|
|
689
|
|
|
361
|
|
Nonperforming assets
(NPAs)
|
635
|
|
|
714
|
|
|
370
|
|
NPAs/Total loans and
foreclosed property
|
1.26
|
%
|
|
1.45
|
%
|
|
0.74
|
%
|
|
|
|
|
|
|
Loans past due 90
days or more and still accruing
|
$
|
35
|
|
|
$
|
13
|
|
|
$
|
18
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
729
|
|
|
724
|
|
|
618
|
|
Allowance for credit
losses on lending-related commitments (a)
|
43
|
|
|
46
|
|
|
50
|
|
Total allowance for
credit losses
|
772
|
|
|
770
|
|
|
668
|
|
|
|
|
|
|
|
Allowance for loan
losses/Period-end total loans
|
1.45
|
%
|
|
1.47
|
%
|
|
1.24
|
%
|
Allowance for loan
losses/Nonperforming loans
|
119
|
|
|
105
|
|
|
171
|
|
(a) Included in "Accrued expenses and other
liabilities" on the consolidated balance sheets.
|
|
|
- Energy business line loans were $2.7
billion at June 30, 2016
compared to $3.1 billion at
March 31, 2016.
- Criticized Energy loans decreased $281
million, to $1.6 billion,
including a $77 million decrease in
nonaccrual loans.
- Energy net charge-offs were $32
million, compared to $42
million in the first quarter 2016.
- The reserve allocation for loans in the Energy business line
exceeded 8 percent at June 30, 2016,
up slightly compared to March 31,
2016.
- Net charge-offs decreased $11
million to $47 million, or
0.38 percent of average loans, in the second quarter 2016, compared
to $58 million, or 0.49 percent, in
the first quarter 2016. Aside from Energy, net charge-offs were
$15 million, or 13 basis points, for
the remainder of the portfolio.
- During the second quarter 2016, $107
million of borrower relationships over $2 million were transferred to nonaccrual status,
a decrease of $339 million compared
to $446 million transferred during
the first quarter. Second quarter 2016 transfers to nonaccrual
included $51 million from Energy,
compared to $349 million in the first
quarter.
- Criticized loans decreased $377
million to $3.6 billion at
June 30, 2016, compared to
$3.9 billion at March 31, 2016, primarily as a result of the
decrease in criticized Energy loans. Criticized loans are generally
consistent with the Special Mention, Substandard and Doubtful
categories defined by regulatory authorities.
Full-Year 2016 Outlook
Management expectations for full-year 2016 compared to full-year
2015, assuming a continuation of the current economic and low-rate
environment, are as follows.
- Average loans modestly higher, in line with Gross Domestic
Product growth, reflecting a continued decline in Energy more than
offset by increases in most other lines of business. Seasonality in
National Dealer Services, Mortgage Banker and Middle Market to
impact the second half of the year.
- Net interest income higher, primarily reflecting the benefits
from the December 2015 short-term
rate increase, loan growth and a larger securities portfolio.
- Provision for credit losses higher, reflecting the first
quarter 2016 reserve build for Energy, with net charge-offs for the
remainder of the year between 35 basis points and 45 basis points.
Additional reserve changes dependent on developments in the oil and
gas sector. Continued solid credit quality in the remainder of the
portfolio, with metrics, absent Energy, better than historical
norms.
- Noninterest income modestly higher, with continued focus on
cross-sell opportunities, including card, fiduciary and brokerage
services offset by lower market-driven fees, including commercial
lending fees, investment banking fees, derivative income and
warrant income. Benefits from GEAR Up expected to begin in early
2017.
- Noninterest expenses higher, with an estimated $90 million to $110 million in restructuring
expense, related GEAR Up expense savings of approximately
$20 million, increased outside
processing in line with growing revenue, higher FDIC insurance
expense in part due to regulatory surcharge, and typical
inflationary pressures. Additionally, 2015 benefited from
$33 million in legal reserve
releases, which is offset by lower pension expense in 2016.
- Income tax expense to approximate 30 percent of pre-tax
income.
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, 2016. The accompanying narrative addresses second
quarter 2016 results compared to first quarter 2016.
The following table presents net income (loss) by business
segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
|
1st Qtr
'16
|
|
2nd Qtr
'15
|
Business
Bank
|
$
|
154
|
|
93
|
%
|
|
$
|
94
|
|
74
|
%
|
|
$
|
181
|
|
81
|
%
|
Retail
Bank
|
(2)
|
|
(1)
|
|
|
11
|
|
9
|
|
|
18
|
|
8
|
|
Wealth
Management
|
13
|
|
8
|
|
|
22
|
|
17
|
|
|
26
|
|
11
|
|
|
165
|
|
100
|
%
|
|
127
|
|
100
|
%
|
|
225
|
|
100
|
%
|
Finance
|
(62)
|
|
|
|
(66)
|
|
|
|
(89)
|
|
|
Other (a)
|
1
|
|
|
|
(1)
|
|
|
|
(1)
|
|
|
Total
|
$
|
104
|
|
|
|
$
|
60
|
|
|
|
$
|
135
|
|
|
(a) Includes items not directly
associated with the three major business segments or the Finance
Division.
|
Business
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
355
|
|
|
$
|
362
|
|
|
$
|
373
|
|
|
Provision for credit
losses
|
46
|
|
|
151
|
|
|
61
|
|
|
Noninterest
income
|
142
|
|
|
135
|
|
|
138
|
|
|
Noninterest
expenses
|
222
|
|
(a)
|
207
|
|
|
175
|
|
|
Net income
|
154
|
|
|
94
|
|
|
181
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
42
|
|
|
57
|
|
|
23
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
39,617
|
|
|
38,635
|
|
|
39,134
|
|
|
Loans
|
38,574
|
|
|
37,561
|
|
|
38,109
|
|
|
Deposits
|
28,429
|
|
|
29,108
|
|
|
30,229
|
|
|
(a) Included restructuring charge of $26 million in
the second quarter 2016.
|
- Average loans increased $1.0
billion, primarily reflecting increases in Commercial Real
Estate, Mortgage Banker Finance and National Dealer Services,
partially offset by a decrease in Energy.
- Average deposits decreased $679
million, primarily reflecting decreases in Municipalities
and Corporate Banking, partially offset by an increase in Mortgage
Banker Finance.
- Net interest income decreased $7
million, primarily reflecting the impact of an increase in
net funds transfer pricing (FTP) charges and lower loan yields,
largely due to the impact of nonaccrual loans and a negative
residual value adjustment to assets in the leasing portfolio,
partially offset by the benefit from the increase in average loans.
The increase in net FTP charges primarily reflected an increase in
the cost of funds as well as lower funding credits due to the
decrease in average deposits.
- The provision for credit losses decreased $105 million, primarily reflecting a decrease in
Energy, partially offset by increases in Commercial Real Estate,
National Dealer Services, and Technology and Life Sciences.
- Noninterest income increased $7
million, primarily due to increases in syndication agent
fees, card fees and customer derivative income.
- Noninterest expenses increased $15
million, primarily due to second quarter 2016 restructuring
charges. Excluding restructuring charges, noninterest expenses
decreased $11 million, primarily
reflecting an $8 million gain from
the sale of leased assets and a decrease in salaries and benefits
expense, partially offset by an increase in outside processing fees
tied to revenue generating activities.
Retail
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
155
|
|
|
$
|
156
|
|
|
$
|
155
|
|
|
Provision for credit
losses
|
1
|
|
|
3
|
|
|
(8)
|
|
|
Noninterest
income
|
48
|
|
|
43
|
|
|
46
|
|
|
Noninterest
expenses
|
205
|
|
(a)
|
179
|
|
|
181
|
|
|
Net income
|
(2)
|
|
|
11
|
|
|
18
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
1
|
|
|
2
|
|
|
1
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
6,557
|
|
|
6,544
|
|
|
6,459
|
|
|
Loans
|
5,879
|
|
|
5,867
|
|
|
5,770
|
|
|
Deposits
|
23,546
|
|
|
23,110
|
|
|
22,747
|
|
|
(a)
Included restructuring charge of $19
million in the second quarter 2016.
|
- Average deposits increased $436
million, primarily reflecting seasonal increases. Balances
increased in both interest-bearing and noninterest-bearing
deposits.
- Net interest income decreased $1
million, primarily due to lower loan yields, partially
offset by the benefit provided by the increase in average
deposits.
- The provision for credit losses decreased $2 million, primarily due to a decrease in Small
Business.
- Noninterest income increased $5
million, primarily reflecting the impact of a securities
loss in the first quarter 2016 and an increase in card fees.
- Noninterest expenses increased $26
million, primarily due to second quarter 2016 restructuring
charges. Excluding restructuring charges, noninterest expenses
increased $7 million, primarily
reflecting an increase in outside processing expenses and smaller
increases in several other categories.
Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
42
|
|
|
$
|
43
|
|
|
$
|
45
|
|
|
Provision for credit
losses
|
3
|
|
|
(5)
|
|
|
(9)
|
|
|
Noninterest
income
|
62
|
|
|
59
|
|
|
60
|
|
|
Noninterest
expenses
|
81
|
|
(a)
|
73
|
|
|
74
|
|
|
Net income
|
13
|
|
|
22
|
|
|
26
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs (recoveries)
|
4
|
|
|
(1)
|
|
|
(5)
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
5,215
|
|
|
5,162
|
|
|
5,153
|
|
|
Loans
|
5,016
|
|
|
4,964
|
|
|
4,954
|
|
|
Deposits
|
4,213
|
|
|
4,171
|
|
|
4,060
|
|
|
(a)
Included restructuring charge of $8
million in the second quarter 2016.
|
- Average loans increased $52
million, primarily reflecting an increase in Private
Banking.
- Average deposits increased $42
million, primarily reflecting increases in money market and
checking deposits as well as noninterest-bearing deposits.
- The provision for credit losses increased $8 million, from a negative provision of
$5 million in the first quarter 2016
to a provision of $3 million in the
second quarter 2016.
- Noninterest income increased $3
million, primarily due to an increase in fiduciary
income.
- Noninterest expenses increased $8
million, primarily due to second quarter 2016 restructuring
charges. Excluding restructuring charges, noninterest expenses were
stable.
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, 2016.
The following table presents net income (loss) by market
segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
|
1st Qtr
'16
|
|
2nd Qtr
'15
|
Michigan
|
$
|
57
|
|
34
|
%
|
|
$
|
71
|
|
56
|
%
|
|
$
|
98
|
|
44
|
%
|
California
|
50
|
|
30
|
|
|
73
|
|
58
|
|
|
71
|
|
31
|
|
Texas
|
3
|
|
2
|
|
|
(76)
|
|
(60)
|
|
|
14
|
|
6
|
|
Other
Markets
|
55
|
|
34
|
|
|
59
|
|
46
|
|
|
42
|
|
19
|
|
|
165
|
|
100
|
%
|
|
127
|
|
100
|
%
|
|
225
|
|
100
|
%
|
Finance & Other
(a)
|
(61)
|
|
|
|
(67)
|
|
|
|
(90)
|
|
|
Total
|
$
|
104
|
|
|
|
$
|
60
|
|
|
|
$
|
135
|
|
|
(a) Includes items not directly
associated with the geographic markets.
|
- Average loans increased $689
million in Other Markets, primarily reflecting an increase
in Mortgage Banker Finance; $425
million in California,
primarily reflecting increases in Commercial Real Estate and
National Dealer Services; and $77
million in Texas, mostly
due to increases in Commercial Real Estate and Private Banking,
partially offset by a decrease in Energy. Average loans decreased
$114 million in Michigan.
- Average deposits decreased $322
million in Texas and
$143 million in Michigan, with both markets primarily
reflecting decreases in Municipalities and Corporate Banking,
partially offset by an increase in Retail Banking. Average deposits
increased $279 million in
California, reflecting increases
in most lines of business.
- Net interest income decreased $9
million in Michigan and
$4 million in Texas, and increased $1
million in California. The
decrease in Michigan primarily
reflected a decrease in loan yields, largely due to the impact of
the negative residual value adjustment to assets in the leasing
portfolio and lower nonaccrual interest recoveries in the second
quarter, lower FTP credits resulting from a decrease in average
deposits, and the impact of a decrease in average loans. The
decrease in Texas primarily
reflected lower FTP credits resulting from a decrease in average
deposits and lower loan yields, largely due to the full quarter
impact of loans transferred to nonaccrual in the first quarter 2016
and a decrease in accretion on the acquired loan portfolio. In
California, the benefit from an
increase in average loans was partially offset by an increase in
net FTP charges, reflecting an increase in the cost of funds and a
decrease in the deposit crediting rate.
- The provision for credit losses decreased $137 million in Texas, and increased $23 million California and $9
million in Michigan. The
decrease in Texas primarily
reflected the impact of the reserve build for Energy in the first
quarter 2016. In California, the
increased provision primarily reflected increases in National
Dealer Services, Private Banking and general Middle Market. The
increase in Michigan primarily
reflected an increased provision in Commercial Real Estate.
- Noninterest income increased $5
million in Michigan,
$1 million in Texas and $1
million in California. The
increase in Michigan was primarily
due to the impact of a securities loss in the first quarter 2016,
an increase in customer derivative income and smaller increases in
several other categories.
- Noninterest expenses increased $16
million in California,
$13 million in Texas and $8
million in Michigan.
Excluding restructuring charges, noninterest expenses were
unchanged in California, and
decreased $2 million in Texas and $7
million in Michigan. The
decrease in Michigan primarily
reflected an $8 million gain from the
sale of leased assets in the second quarter.
Michigan
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
166
|
|
|
$
|
175
|
|
|
$
|
178
|
|
|
Provision for credit
losses
|
3
|
|
|
(6)
|
|
|
(13)
|
|
|
Noninterest
income
|
81
|
|
|
76
|
|
|
86
|
|
|
Noninterest
expenses
|
159
|
|
(a)
|
151
|
|
|
129
|
|
|
Net income
|
57
|
|
|
71
|
|
|
98
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs (recoveries)
|
—
|
|
|
5
|
|
|
(1)
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
13,299
|
|
|
13,402
|
|
|
13,851
|
|
|
Loans
|
12,660
|
|
|
12,774
|
|
|
13,290
|
|
|
Deposits
|
21,553
|
|
|
21,696
|
|
|
21,706
|
|
|
(a)
Included restructuring charge of $15
million in the second quarter 2016.
|
California
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
178
|
|
|
$
|
177
|
|
|
$
|
180
|
|
|
Provision for credit
losses
|
17
|
|
|
(6)
|
|
|
4
|
|
|
Noninterest
income
|
39
|
|
|
38
|
|
|
36
|
|
|
Noninterest
expenses
|
120
|
|
(a)
|
104
|
|
|
99
|
|
|
Net income
|
50
|
|
|
73
|
|
|
71
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
17
|
|
|
8
|
|
|
6
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
17,997
|
|
|
17,541
|
|
|
16,696
|
|
|
Loans
|
17,708
|
|
|
17,283
|
|
|
16,429
|
|
|
Deposits
|
16,933
|
|
|
16,654
|
|
|
17,275
|
|
|
(a) Included restructuring charge of $16 million in
the second quarter 2016.
|
Texas
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'16
|
1st Qtr
'16
|
2nd Qtr
'15
|
Net interest
income
|
$
|
119
|
|
|
$
|
123
|
|
|
$
|
130
|
|
|
Provision for credit
losses
|
32
|
|
|
169
|
|
|
43
|
|
|
Noninterest
income
|
31
|
|
|
30
|
|
|
30
|
|
|
Noninterest
expenses
|
113
|
|
(a)
|
100
|
|
|
93
|
|
|
Net income
(loss)
|
3
|
|
|
(76)
|
|
|
14
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
31
|
|
|
47
|
|
|
5
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
Assets
|
11,287
|
|
|
11,295
|
|
|
11,878
|
|
|
Loans
|
10,840
|
|
|
10,763
|
|
|
11,254
|
|
|
Deposits
|
10,052
|
|
|
10,374
|
|
|
10,959
|
|
|
(a) Included restructuring charge of $15 million in
the second quarter 2016.
|
Conference Call and Webcast
Comerica will host a conference call to review second quarter
2016 financial results at 7 a.m. CT
Tuesday, July 19, 2016. Interested parties may access
the conference call by calling (877) 523-5249 or (210) 591-1147
(event ID No. 22809119). 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, including the GEAR Up initiative, and forecasts of
Comerica's revenue, earnings or other measures of economic
performance, including statements of profitability, business
segments and subsidiaries as well as estimates of the economic
benefits of the GEAR Up initiative, 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, in particular the energy
industry; unfavorable developments concerning credit quality;
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; reductions in
Comerica's credit rating; whether Comerica may achieve
opportunities for revenue enhancements and efficiency improvements
under the GEAR Up initiative, or changes in the scope or
assumptions underlying the GEAR Up initiative; the interdependence
of financial service companies; the implementation of Comerica's
strategies and business initiatives; damage to Comerica's
reputation; 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, 2015 and "Item 1A. Risk
Factors" beginning on page 54 of Comerica's Quarterly Report on
Form 10-Q for the quarter ended March 31,
2016. 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
|
|
Six Months
Ended
|
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
(in millions,
except per share data)
|
2016
|
2016
|
2015
|
|
2016
|
2015
|
PER COMMON SHARE
AND COMMON STOCK DATA
|
|
|
|
|
|
|
Diluted net
income
|
$
|
0.58
|
|
$
|
0.34
|
|
$
|
0.73
|
|
|
$
|
0.92
|
|
$
|
1.46
|
|
Cash dividends
declared
|
0.22
|
|
0.21
|
|
0.21
|
|
|
0.43
|
|
0.41
|
|
|
|
|
|
|
|
|
Average diluted
shares (in thousands)
|
177,240
|
|
176,055
|
|
182,422
|
|
|
176,614
|
|
182,281
|
|
KEY
RATIOS
|
|
|
|
|
|
|
Return on average
common shareholders' equity
|
5.44
|
%
|
3.13
|
%
|
7.21
|
%
|
|
4.28
|
%
|
7.20
|
%
|
Return on average
assets
|
0.59
|
|
0.34
|
|
0.79
|
|
|
0.47
|
|
0.78
|
|
Common equity tier 1
and tier 1 risk-based capital ratio (a)
|
10.48
|
|
10.58
|
|
10.40
|
|
|
|
|
Total risk-based
capital ratio (a)
|
12.73
|
|
12.84
|
|
12.38
|
|
|
|
|
Leverage ratio
(a)
|
10.41
|
|
10.60
|
|
10.56
|
|
|
|
|
Common equity
ratio
|
10.79
|
|
11.08
|
|
10.76
|
|
|
|
|
Tangible common
equity ratio (b)
|
9.98
|
|
10.23
|
|
9.92
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,511
|
|
$
|
30,814
|
|
$
|
31,788
|
|
|
$
|
31,162
|
|
$
|
31,442
|
|
Real estate
construction loans
|
2,429
|
|
2,114
|
|
1,807
|
|
|
2,272
|
|
1,872
|
|
Commercial mortgage
loans
|
9,033
|
|
8,961
|
|
8,672
|
|
|
8,997
|
|
8,627
|
|
Lease
financing
|
730
|
|
726
|
|
795
|
|
|
728
|
|
796
|
|
International
loans
|
1,396
|
|
1,419
|
|
1,453
|
|
|
1,408
|
|
1,482
|
|
Residential mortgage
loans
|
1,880
|
|
1,892
|
|
1,877
|
|
|
1,886
|
|
1,866
|
|
Consumer
loans
|
2,490
|
|
2,466
|
|
2,441
|
|
|
2,478
|
|
2,409
|
|
Total
loans
|
49,469
|
|
48,392
|
|
48,833
|
|
|
48,931
|
|
48,494
|
|
|
|
|
|
|
|
|
Earning
assets
|
65,597
|
|
64,123
|
|
63,981
|
|
|
64,860
|
|
63,732
|
|
Total
assets
|
70,668
|
|
69,228
|
|
68,963
|
|
|
69,948
|
|
68,852
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
28,376
|
|
28,052
|
|
27,365
|
|
|
28,214
|
|
27,033
|
|
Interest-bearing
deposits
|
28,145
|
|
28,656
|
|
30,033
|
|
|
28,401
|
|
30,163
|
|
Total
deposits
|
56,521
|
|
56,708
|
|
57,398
|
|
|
56,615
|
|
57,196
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
7,654
|
|
7,632
|
|
7,512
|
|
|
7,643
|
|
7,482
|
|
NET INTEREST
INCOME
|
|
|
|
|
|
|
Net interest
income
|
$
|
445
|
|
$
|
447
|
|
$
|
421
|
|
|
$
|
892
|
|
$
|
834
|
|
Net interest margin
(fully taxable equivalent)
|
2.74
|
%
|
2.81
|
%
|
2.65
|
%
|
|
2.78
|
%
|
2.65
|
%
|
CREDIT
QUALITY
|
|
|
|
|
|
|
Total nonperforming
assets
|
$
|
635
|
|
$
|
714
|
|
$
|
370
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90
days or more and still accruing
|
35
|
|
13
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
47
|
|
58
|
|
19
|
|
|
$
|
105
|
|
$
|
27
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
729
|
|
724
|
|
618
|
|
|
|
|
Allowance for credit
losses on lending-related commitments
|
43
|
|
46
|
|
50
|
|
|
|
|
Total allowance for
credit losses
|
772
|
|
770
|
|
668
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.45
|
%
|
1.47
|
%
|
1.24
|
%
|
|
|
|
Net credit-related
charge-offs as a percentage of average total loans
|
0.38
|
|
0.49
|
|
0.15
|
|
|
0.43
|
%
|
0.11
|
%
|
Nonperforming assets
as a percentage of total loans and foreclosed property
|
1.26
|
|
1.45
|
|
0.74
|
|
|
|
|
Allowance for loan
losses as a percentage of total nonperforming loans
|
119
|
|
105
|
|
171
|
|
|
|
|
(a)
June 30, 2016 ratios are
estimated.
|
(b)
See Reconciliation of Non-GAAP Financial
Measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
December 31,
|
June 30,
|
(in millions,
except share data)
|
2016
|
2016
|
2015
|
2015
|
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
$
|
1,172
|
|
$
|
977
|
|
$
|
1,157
|
|
$
|
1,148
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
2,938
|
|
2,025
|
|
4,990
|
|
4,817
|
|
Other short-term
investments
|
100
|
|
94
|
|
113
|
|
119
|
|
|
|
|
|
|
Investment securities
available-for-sale
|
10,712
|
|
10,607
|
|
10,519
|
|
8,267
|
|
Investment securities
held-to-maturity
|
1,807
|
|
1,907
|
|
1,981
|
|
1,952
|
|
|
|
|
|
|
Commercial
loans
|
32,360
|
|
31,562
|
|
31,659
|
|
32,723
|
|
Real estate
construction loans
|
2,553
|
|
2,290
|
|
2,001
|
|
1,795
|
|
Commercial mortgage
loans
|
9,038
|
|
8,982
|
|
8,977
|
|
8,674
|
|
Lease
financing
|
684
|
|
731
|
|
724
|
|
786
|
|
International
loans
|
1,365
|
|
1,455
|
|
1,368
|
|
1,420
|
|
Residential mortgage
loans
|
1,856
|
|
1,874
|
|
1,870
|
|
1,865
|
|
Consumer
loans
|
2,524
|
|
2,483
|
|
2,485
|
|
2,478
|
|
Total
loans
|
50,380
|
|
49,377
|
|
49,084
|
|
49,741
|
|
Less allowance for
loan losses
|
(729)
|
|
(724)
|
|
(634)
|
|
(618)
|
|
Net loans
|
49,651
|
|
48,653
|
|
48,450
|
|
49,123
|
|
|
|
|
|
|
Premises and
equipment
|
544
|
|
541
|
|
550
|
|
541
|
|
Accrued income and
other assets
|
4,356
|
|
4,203
|
|
4,117
|
|
3,978
|
|
Total
assets
|
$
|
71,280
|
|
$
|
69,007
|
|
$
|
71,877
|
|
$
|
69,945
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Noninterest-bearing
deposits
|
$
|
28,559
|
|
$
|
28,025
|
|
$
|
30,839
|
|
$
|
28,167
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
22,539
|
|
22,872
|
|
23,532
|
|
23,786
|
|
Savings
deposits
|
2,022
|
|
2,006
|
|
1,898
|
|
1,841
|
|
Customer certificates
of deposit
|
3,230
|
|
3,401
|
|
3,552
|
|
4,367
|
|
Foreign office time
deposits
|
24
|
|
47
|
|
32
|
|
99
|
|
Total
interest-bearing deposits
|
27,815
|
|
28,326
|
|
29,014
|
|
30,093
|
|
Total
deposits
|
56,374
|
|
56,351
|
|
59,853
|
|
58,260
|
|
|
|
|
|
|
Short-term
borrowings
|
12
|
|
514
|
|
23
|
|
56
|
|
Accrued expenses and
other liabilities
|
1,279
|
|
1,389
|
|
1,383
|
|
1,265
|
|
Medium- and long-term
debt
|
5,921
|
|
3,109
|
|
3,058
|
|
2,841
|
|
Total
liabilities
|
63,586
|
|
61,363
|
|
64,317
|
|
62,422
|
|
|
|
|
|
|
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
|
|
2,173
|
|
2,158
|
|
Accumulated other
comprehensive loss
|
(295)
|
|
(328)
|
|
(429)
|
|
(396)
|
|
Retained
earnings
|
7,157
|
|
7,097
|
|
7,084
|
|
6,908
|
|
Less cost of common
stock in treasury - 54,247,325 shares at 6/30/16, 53,086,733 shares
at 3/31/16, 52,457,113 shares at 12/31/15, and 49,803,515 shares at
6/30/15
|
(2,474)
|
|
(2,424)
|
|
(2,409)
|
|
(2,288)
|
|
Total shareholders'
equity
|
7,694
|
|
7,644
|
|
7,560
|
|
7,523
|
|
Total liabilities and
shareholders' equity
|
$
|
71,280
|
|
$
|
69,007
|
|
$
|
71,877
|
|
$
|
69,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
2016
|
2015
|
|
2016
|
2015
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
406
|
|
$
|
388
|
|
|
$
|
812
|
|
$
|
766
|
|
Interest on
investment securities
|
62
|
|
53
|
|
|
124
|
|
106
|
|
Interest on
short-term investments
|
5
|
|
3
|
|
|
9
|
|
7
|
|
Total interest
income
|
473
|
|
444
|
|
|
945
|
|
879
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Interest on
deposits
|
10
|
|
11
|
|
|
20
|
|
22
|
|
Interest on medium-
and long-term debt
|
18
|
|
12
|
|
|
33
|
|
23
|
|
Total interest
expense
|
28
|
|
23
|
|
|
53
|
|
45
|
|
Net interest
income
|
445
|
|
421
|
|
|
892
|
|
834
|
|
Provision for credit
losses
|
49
|
|
47
|
|
|
197
|
|
61
|
|
Net interest income
after provision for credit losses
|
396
|
|
374
|
|
|
695
|
|
773
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
Card fees
|
77
|
|
69
|
|
|
151
|
|
132
|
|
Service charges on
deposit accounts
|
55
|
|
56
|
|
|
110
|
|
111
|
|
Fiduciary
income
|
49
|
|
48
|
|
|
95
|
|
95
|
|
Commercial lending
fees
|
22
|
|
22
|
|
|
42
|
|
47
|
|
Letter of credit
fees
|
13
|
|
13
|
|
|
26
|
|
26
|
|
Bank-owned life
insurance
|
9
|
|
10
|
|
|
18
|
|
19
|
|
Foreign exchange
income
|
11
|
|
9
|
|
|
21
|
|
19
|
|
Brokerage
fees
|
5
|
|
4
|
|
|
9
|
|
8
|
|
Net securities
losses
|
(1)
|
|
—
|
|
|
(3)
|
|
(2)
|
|
Other noninterest
income
|
29
|
|
27
|
|
|
46
|
|
54
|
|
Total noninterest
income
|
269
|
|
258
|
|
|
515
|
|
509
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
Salaries and benefits
expense
|
247
|
|
251
|
|
|
495
|
|
504
|
|
Outside processing
fee expense
|
84
|
|
83
|
|
|
163
|
|
156
|
|
Net occupancy
expense
|
39
|
|
39
|
|
|
77
|
|
77
|
|
Equipment
expense
|
14
|
|
13
|
|
|
27
|
|
26
|
|
Restructuring
charges
|
53
|
|
—
|
|
|
53
|
|
—
|
|
Software
expense
|
30
|
|
24
|
|
|
59
|
|
47
|
|
FDIC insurance
expense
|
14
|
|
9
|
|
|
25
|
|
18
|
|
Advertising
expense
|
6
|
|
5
|
|
|
10
|
|
11
|
|
Litigation-related
expense
|
—
|
|
(30)
|
|
|
—
|
|
(29)
|
|
Other noninterest
expenses
|
32
|
|
39
|
|
|
70
|
|
78
|
|
Total noninterest
expenses
|
519
|
|
433
|
|
|
979
|
|
888
|
|
Income before income
taxes
|
146
|
|
199
|
|
|
231
|
|
394
|
|
Provision for income
taxes
|
42
|
|
64
|
|
|
67
|
|
125
|
|
NET
INCOME
|
104
|
|
135
|
|
|
164
|
|
269
|
|
Less income allocated
to participating securities
|
1
|
|
1
|
|
|
2
|
|
3
|
|
Net income
attributable to common shares
|
$
|
103
|
|
$
|
134
|
|
|
$
|
162
|
|
$
|
266
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.60
|
|
$
|
0.76
|
|
|
$
|
0.94
|
|
$
|
1.51
|
|
Diluted
|
0.58
|
|
0.73
|
|
|
0.92
|
|
1.46
|
|
|
|
|
|
|
|
Comprehensive
income
|
137
|
|
109
|
|
|
298
|
|
285
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
38
|
|
37
|
|
|
75
|
|
73
|
|
Cash dividends
declared per common share
|
0.22
|
|
0.21
|
|
|
0.43
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
|
First
|
Fourth
|
Third
|
Second
|
|
Second Quarter
2016 Compared To:
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
First Quarter
2016
|
|
Second Quarter
2015
|
(in millions,
except per share data)
|
2016
|
2016
|
2015
|
2015
|
2015
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
406
|
|
$
|
406
|
|
$
|
395
|
|
$
|
390
|
|
$
|
388
|
|
|
$
|
—
|
|
—
|
%
|
|
$
|
18
|
|
5
|
%
|
Interest on
investment securities
|
62
|
|
62
|
|
56
|
|
54
|
|
53
|
|
|
—
|
|
—
|
|
|
9
|
|
18
|
|
Interest on
short-term investments
|
5
|
|
4
|
|
6
|
|
4
|
|
3
|
|
|
1
|
|
10
|
|
|
2
|
|
44
|
|
Total interest
income
|
473
|
|
472
|
|
457
|
|
448
|
|
444
|
|
|
1
|
|
—
|
|
|
29
|
|
7
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
10
|
|
10
|
|
10
|
|
11
|
|
11
|
|
|
—
|
|
—
|
|
|
(1)
|
|
(11)
|
|
Interest on medium-
and long-term debt
|
18
|
|
15
|
|
14
|
|
15
|
|
12
|
|
|
3
|
|
20
|
|
|
6
|
|
49
|
|
Total interest
expense
|
28
|
|
25
|
|
24
|
|
26
|
|
23
|
|
|
3
|
|
10
|
|
|
5
|
|
22
|
|
Net interest
income
|
445
|
|
447
|
|
433
|
|
422
|
|
421
|
|
|
(2)
|
|
—
|
|
|
24
|
|
6
|
|
Provision for credit
losses
|
49
|
|
148
|
|
60
|
|
26
|
|
47
|
|
|
(99)
|
|
(67)
|
|
|
2
|
|
5
|
|
Net interest income
after provision
for credit
losses
|
396
|
|
299
|
|
373
|
|
396
|
|
374
|
|
|
97
|
|
33
|
|
|
22
|
|
6
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Card fees
|
77
|
|
74
|
|
75
|
|
72
|
|
69
|
|
|
3
|
|
4
|
|
|
8
|
|
11
|
|
Service charges on
deposit accounts
|
55
|
|
55
|
|
55
|
|
57
|
|
56
|
|
|
—
|
|
—
|
|
|
(1)
|
|
(3)
|
|
Fiduciary
income
|
49
|
|
46
|
|
45
|
|
47
|
|
48
|
|
|
3
|
|
6
|
|
|
1
|
|
1
|
|
Commercial lending
fees
|
22
|
|
20
|
|
30
|
|
22
|
|
22
|
|
|
2
|
|
9
|
|
|
—
|
|
—
|
|
Letter of credit
fees
|
13
|
|
13
|
|
14
|
|
13
|
|
13
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Bank-owned life
insurance
|
9
|
|
9
|
|
11
|
|
10
|
|
10
|
|
|
—
|
|
—
|
|
|
(1)
|
|
(4)
|
|
Foreign exchange
income
|
11
|
|
10
|
|
11
|
|
10
|
|
9
|
|
|
1
|
|
3
|
|
|
2
|
|
16
|
|
Brokerage
fees
|
5
|
|
4
|
|
4
|
|
5
|
|
4
|
|
|
1
|
|
16
|
|
|
1
|
|
6
|
|
Net securities
losses
|
(1)
|
|
(2)
|
|
—
|
|
—
|
|
—
|
|
|
1
|
|
89
|
|
|
(1)
|
|
n/m
|
|
Other noninterest
income
|
29
|
|
17
|
|
23
|
|
26
|
|
27
|
|
|
12
|
|
70
|
|
|
2
|
|
12
|
|
Total noninterest
income
|
269
|
|
246
|
|
268
|
|
262
|
|
258
|
|
|
23
|
|
9
|
|
|
11
|
|
4
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
expense
|
247
|
|
248
|
|
262
|
|
243
|
|
251
|
|
|
(1)
|
|
(1)
|
|
|
(4)
|
|
(2)
|
|
Outside processing
fee expense
|
84
|
|
79
|
|
81
|
|
84
|
|
83
|
|
|
5
|
|
7
|
|
|
1
|
|
2
|
|
Net occupancy
expense
|
39
|
|
38
|
|
41
|
|
41
|
|
39
|
|
|
1
|
|
4
|
|
|
—
|
|
—
|
|
Equipment
expense
|
14
|
|
13
|
|
14
|
|
13
|
|
13
|
|
|
1
|
|
6
|
|
|
1
|
|
7
|
|
Restructuring
charges
|
53
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
53
|
|
n/m
|
|
|
53
|
|
n/m
|
|
Software
expense
|
30
|
|
29
|
|
26
|
|
26
|
|
24
|
|
|
1
|
|
7
|
|
|
6
|
|
28
|
|
FDIC insurance
expense
|
14
|
|
11
|
|
10
|
|
9
|
|
9
|
|
|
3
|
|
14
|
|
|
5
|
|
55
|
|
Advertising
expense
|
6
|
|
4
|
|
7
|
|
6
|
|
5
|
|
|
2
|
|
93
|
|
|
1
|
|
22
|
|
Litigation-related
expense
|
—
|
|
—
|
|
—
|
|
(3)
|
|
(30)
|
|
|
—
|
|
—
|
|
|
30
|
|
n/m
|
|
Other noninterest
expenses
|
32
|
|
38
|
|
43
|
|
40
|
|
39
|
|
|
(6)
|
|
(17)
|
|
|
(7)
|
|
(19)
|
|
Total noninterest
expenses
|
519
|
|
460
|
|
484
|
|
459
|
|
433
|
|
|
59
|
|
13
|
|
|
86
|
|
20
|
|
Income before income
taxes
|
146
|
|
85
|
|
157
|
|
199
|
|
199
|
|
|
61
|
|
73
|
|
|
(53)
|
|
(27)
|
|
Provision for income
taxes
|
42
|
|
25
|
|
41
|
|
63
|
|
64
|
|
|
17
|
|
68
|
|
|
(22)
|
|
(34)
|
|
NET
INCOME
|
104
|
|
60
|
|
116
|
|
136
|
|
135
|
|
|
44
|
|
74
|
|
|
(31)
|
|
(23)
|
|
Less income allocated
to participating securities
|
1
|
|
1
|
|
1
|
|
2
|
|
1
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Net income
attributable to common shares
|
$
|
103
|
|
$
|
59
|
|
$
|
115
|
|
$
|
134
|
|
$
|
134
|
|
|
$
|
44
|
|
74
|
%
|
|
$
|
(31)
|
|
(23)%
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.60
|
|
$
|
0.34
|
|
$
|
0.65
|
|
$
|
0.76
|
|
$
|
0.76
|
|
|
$
|
0.26
|
|
76
|
%
|
|
$
|
(0.16)
|
|
(21)%
|
|
Diluted
|
0.58
|
|
0.34
|
|
0.64
|
|
0.74
|
|
0.73
|
|
|
0.24
|
|
71
|
|
|
(0.15)
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
137
|
|
161
|
|
32
|
|
187
|
|
109
|
|
|
(24)
|
|
(15)
|
|
|
28
|
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
38
|
|
37
|
|
37
|
|
37
|
|
37
|
|
|
1
|
|
4
|
|
|
1
|
|
7
|
|
Cash dividends
declared per common share
|
0.22
|
|
0.21
|
|
0.21
|
|
0.21
|
|
0.21
|
|
|
0.01
|
|
5
|
|
|
0.01
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF THE
ALLOWANCE FOR LOAN LOSSES (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
(in
millions)
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
724
|
|
$
|
634
|
|
|
$
|
622
|
|
$
|
618
|
|
$
|
601
|
|
|
|
|
|
|
|
|
Loan
charge-offs:
|
|
|
|
|
|
|
Commercial
|
48
|
|
72
|
|
|
73
|
|
30
|
|
17
|
|
Commercial
mortgage
|
—
|
|
—
|
|
|
1
|
|
—
|
|
2
|
|
Lease
financing
|
—
|
|
—
|
|
|
—
|
|
—
|
|
1
|
|
International
|
4
|
|
3
|
|
|
—
|
|
1
|
|
11
|
|
Residential
mortgage
|
—
|
|
—
|
|
|
—
|
|
—
|
|
1
|
|
Consumer
|
2
|
|
2
|
|
|
2
|
|
3
|
|
3
|
|
Total loan
charge-offs
|
54
|
|
77
|
|
|
76
|
|
34
|
|
35
|
|
|
|
|
|
|
|
|
Recoveries on loans
previously charged-off:
|
|
|
|
|
|
|
Commercial
|
9
|
|
12
|
|
|
6
|
|
8
|
|
10
|
|
Real estate
construction
|
—
|
|
—
|
|
|
—
|
|
—
|
|
1
|
|
Commercial
mortgage
|
2
|
|
12
|
|
|
11
|
|
2
|
|
5
|
|
Residential
mortgage
|
—
|
|
—
|
|
|
1
|
|
—
|
|
—
|
|
Consumer
|
1
|
|
1
|
|
|
7
|
|
1
|
|
1
|
|
Total
recoveries
|
12
|
|
25
|
|
|
25
|
|
11
|
|
17
|
|
Net loan
charge-offs
|
42
|
|
52
|
|
|
51
|
|
23
|
|
18
|
|
Provision for loan
losses
|
47
|
|
141
|
|
|
63
|
|
28
|
|
35
|
|
Foreign currency
translation adjustment
|
—
|
|
1
|
|
|
—
|
|
(1)
|
|
—
|
|
Balance at end of
period
|
$
|
729
|
|
$
|
724
|
|
|
$
|
634
|
|
$
|
622
|
|
$
|
618
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.45
|
%
|
1.47
|
%
|
|
1.29
|
%
|
1.27
|
%
|
1.24
|
%
|
|
|
|
|
|
|
|
Net loan charge-offs
as a percentage of average total loans
|
0.34
|
|
0.43
|
|
|
0.42
|
|
0.19
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF THE
ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
(in
millions)
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
46
|
|
$
|
45
|
|
|
$
|
48
|
|
$
|
50
|
|
$
|
39
|
|
Charge-offs on
lending-related commitments (a)
|
(5)
|
|
(6)
|
|
|
—
|
|
—
|
|
(1)
|
|
Provision for credit
losses on lending-related commitments
|
2
|
|
7
|
|
|
(3)
|
|
(2)
|
|
12
|
|
Balance at end of
period
|
$
|
43
|
|
$
|
46
|
|
|
$
|
45
|
|
$
|
48
|
|
$
|
50
|
|
|
|
|
|
|
|
|
Unfunded
lending-related commitments sold
|
$
|
12
|
|
$
|
11
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
12
|
|
(a)
Charge-offs result from the sale of
unfunded lending-related commitments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING
ASSETS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
(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
|
$
|
482
|
|
$
|
547
|
|
|
$
|
238
|
|
$
|
214
|
|
$
|
186
|
|
Real estate
construction
|
—
|
|
—
|
|
|
1
|
|
1
|
|
1
|
|
Commercial
mortgage
|
44
|
|
47
|
|
|
60
|
|
66
|
|
77
|
|
Lease
financing
|
6
|
|
6
|
|
|
6
|
|
8
|
|
11
|
|
International
|
18
|
|
27
|
|
|
8
|
|
8
|
|
9
|
|
Total nonaccrual
business loans
|
550
|
|
627
|
|
|
313
|
|
297
|
|
284
|
|
Retail
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
26
|
|
26
|
|
|
27
|
|
31
|
|
35
|
|
Consumer:
|
|
|
|
|
|
|
Home
equity
|
28
|
|
27
|
|
|
27
|
|
28
|
|
29
|
|
Other
consumer
|
1
|
|
1
|
|
|
—
|
|
1
|
|
1
|
|
Total consumer
|
29
|
|
28
|
|
|
27
|
|
29
|
|
30
|
|
Total nonaccrual
retail loans
|
55
|
|
54
|
|
|
54
|
|
60
|
|
65
|
|
Total nonaccrual
loans
|
605
|
|
681
|
|
|
367
|
|
357
|
|
349
|
|
Reduced-rate
loans
|
8
|
|
8
|
|
|
12
|
|
12
|
|
12
|
|
Total nonperforming
loans
|
613
|
|
689
|
|
|
379
|
|
369
|
|
361
|
|
Foreclosed
property
|
22
|
|
25
|
|
|
12
|
|
12
|
|
9
|
|
Total nonperforming
assets
|
$
|
635
|
|
$
|
714
|
|
|
$
|
391
|
|
$
|
381
|
|
$
|
370
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percentage of total loans
|
1.22
|
%
|
1.40
|
%
|
|
0.77
|
%
|
0.75
|
%
|
0.72
|
%
|
Nonperforming assets
as a percentage of total loans
and foreclosed
property
|
1.26
|
|
1.45
|
|
|
0.80
|
|
0.78
|
|
0.74
|
|
Allowance for loan
losses as a percentage of total
nonperforming
loans
|
119
|
|
105
|
|
|
167
|
|
169
|
|
171
|
|
Loans past due 90
days or more and still accruing
|
$
|
35
|
|
$
|
13
|
|
|
$
|
17
|
|
$
|
5
|
|
$
|
18
|
|
|
|
|
|
|
|
|
ANALYSIS OF
NONACCRUAL LOANS
|
|
|
|
|
|
|
Nonaccrual loans at
beginning of period
|
$
|
681
|
|
$
|
367
|
|
|
$
|
357
|
|
$
|
349
|
|
$
|
266
|
|
Loans transferred to
nonaccrual (a)
|
107
|
|
446
|
|
|
105
|
|
69
|
|
145
|
|
Nonaccrual business
loan gross charge-offs (b)
|
(52)
|
|
(75)
|
|
|
(49)
|
|
(31)
|
|
(31)
|
|
Nonaccrual business
loans sold (c)
|
(40)
|
|
(21)
|
|
|
—
|
|
—
|
|
(1)
|
|
Payments/Other
(d)
|
(91)
|
|
(36)
|
|
|
(46)
|
|
(30)
|
|
(30)
|
|
Nonaccrual loans at
end of period
|
$
|
605
|
|
$
|
681
|
|
|
$
|
367
|
|
$
|
357
|
|
$
|
349
|
|
(a) Based on an
analysis of nonaccrual loans with book balances greater than $2
million.
|
(b) Analysis of gross
loan charge-offs:
|
|
|
|
|
Nonaccrual business
loans
|
$
|
52
|
|
$
|
75
|
|
|
$
|
49
|
|
$
|
31
|
|
$
|
31
|
|
Performing business
loans
|
—
|
|
—
|
|
|
25
|
|
—
|
|
—
|
|
Consumer and
residential mortgage loans
|
2
|
|
2
|
|
|
2
|
|
3
|
|
4
|
|
Total gross loan charge-offs
|
$
|
54
|
|
$
|
77
|
|
|
$
|
76
|
|
$
|
34
|
|
$
|
35
|
|
(c) Analysis of loans
sold:
|
|
|
|
|
|
Nonaccrual
business loans
|
$
|
40
|
|
$
|
21
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1
|
|
Performing
criticized loans
|
—
|
|
—
|
|
|
3
|
|
—
|
|
—
|
|
Total criticized loans sold
|
$
|
40
|
|
$
|
21
|
|
|
$
|
3
|
|
$
|
—
|
|
$
|
1
|
|
(d) 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 (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
2016
|
|
June 30,
2015
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
(a)
|
|
Balance
|
Interest
|
Rate
(a)
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,162
|
|
$
|
500
|
|
3.24
|
%
|
|
$
|
31,442
|
|
$
|
475
|
|
3.06
|
%
|
Real estate
construction loans
|
2,272
|
|
41
|
|
3.64
|
|
|
1,872
|
|
32
|
|
3.43
|
|
Commercial mortgage
loans
|
8,997
|
|
158
|
|
3.53
|
|
|
8,627
|
|
146
|
|
3.41
|
|
Lease
financing
|
728
|
|
10
|
|
2.66
|
|
|
796
|
|
12
|
|
3.12
|
|
International
loans
|
1,408
|
|
26
|
|
3.64
|
|
|
1,482
|
|
27
|
|
3.69
|
|
Residential mortgage
loans
|
1,886
|
|
36
|
|
3.85
|
|
|
1,866
|
|
35
|
|
3.77
|
|
Consumer
loans
|
2,478
|
|
41
|
|
3.35
|
|
|
2,409
|
|
39
|
|
3.23
|
|
Total
loans
|
48,931
|
|
812
|
|
3.34
|
|
|
48,494
|
|
766
|
|
3.19
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,341
|
|
102
|
|
2.21
|
|
|
9,064
|
|
101
|
|
2.24
|
|
Other investment
securities
|
3,004
|
|
22
|
|
1.50
|
|
|
858
|
|
5
|
|
1.13
|
|
Total investment
securities (b)
|
12,345
|
|
124
|
|
2.04
|
|
|
9,922
|
|
106
|
|
2.15
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
3,478
|
|
9
|
|
0.50
|
|
|
5,216
|
|
7
|
|
0.25
|
|
Other short-term
investments
|
106
|
|
—
|
|
0.76
|
|
|
100
|
|
—
|
|
0.75
|
|
Total earning
assets
|
64,860
|
|
945
|
|
2.94
|
|
|
63,732
|
|
879
|
|
2.79
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,071
|
|
|
|
|
1,034
|
|
|
|
Allowance for loan
losses
|
(714)
|
|
|
|
|
(607)
|
|
|
|
Accrued income and
other assets
|
4,731
|
|
|
|
|
4,693
|
|
|
|
Total
assets
|
$
|
69,948
|
|
|
|
|
$
|
68,852
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
22,989
|
|
13
|
|
0.11
|
|
|
$
|
23,809
|
|
13
|
|
0.11
|
|
Savings
deposits
|
1,973
|
|
—
|
|
0.02
|
|
|
1,810
|
|
—
|
|
0.02
|
|
Customer certificates
of deposit
|
3,399
|
|
7
|
|
0.40
|
|
|
4,423
|
|
8
|
|
0.37
|
|
Foreign office time
deposits
|
40
|
|
—
|
|
0.34
|
|
|
121
|
|
1
|
|
1.36
|
|
Total
interest-bearing deposits
|
28,401
|
|
20
|
|
0.14
|
|
|
30,163
|
|
22
|
|
0.14
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
262
|
|
—
|
|
0.45
|
|
|
94
|
|
—
|
|
0.05
|
|
Medium- and long-term
debt
|
4,083
|
|
33
|
|
1.62
|
|
|
2,675
|
|
23
|
|
1.78
|
|
Total
interest-bearing sources
|
32,746
|
|
53
|
|
0.32
|
|
|
32,932
|
|
45
|
|
0.28
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
28,214
|
|
|
|
|
27,033
|
|
|
|
Accrued expenses and
other liabilities
|
1,345
|
|
|
|
|
1,405
|
|
|
|
Total shareholders'
equity
|
7,643
|
|
|
|
|
7,482
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
69,948
|
|
|
|
|
$
|
68,852
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread
|
|
$
|
892
|
|
2.62
|
|
|
|
$
|
834
|
|
2.51
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.16
|
|
|
|
|
0.14
|
|
Net interest margin
(as a percentage of average earning assets)
|
|
|
2.78
|
%
|
|
|
|
2.65
|
%
|
(a)
Fully taxable equivalent.
|
(b)
Includes investment securities
available-for-sale and investment securities
held-to-maturity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET
INTEREST INCOME (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2016
|
|
March 31,
2016
|
|
June 30,
2015
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
(a)
|
|
Balance
|
Interest
|
Rate
(a)
|
|
Balance
|
Interest
|
Rate
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,511
|
|
$
|
251
|
|
3.23
|
%
|
|
$
|
30,814
|
|
$
|
249
|
|
3.25
|
%
|
|
$
|
31,788
|
|
$
|
242
|
|
3.07
|
%
|
Real estate
construction loans
|
2,429
|
|
22
|
|
3.62
|
|
|
2,114
|
|
19
|
|
3.66
|
|
|
1,807
|
|
16
|
|
3.51
|
|
Commercial mortgage
loans
|
9,033
|
|
78
|
|
3.47
|
|
|
8,961
|
|
80
|
|
3.59
|
|
|
8,672
|
|
73
|
|
3.38
|
|
Lease
financing
|
730
|
|
4
|
|
1.98
|
|
|
726
|
|
6
|
|
3.33
|
|
|
795
|
|
6
|
|
3.19
|
|
International
loans
|
1,396
|
|
13
|
|
3.63
|
|
|
1,419
|
|
13
|
|
3.65
|
|
|
1,453
|
|
13
|
|
3.68
|
|
Residential mortgage
loans
|
1,880
|
|
17
|
|
3.76
|
|
|
1,892
|
|
19
|
|
3.94
|
|
|
1,877
|
|
18
|
|
3.78
|
|
Consumer
loans
|
2,490
|
|
21
|
|
3.37
|
|
|
2,466
|
|
20
|
|
3.33
|
|
|
2,441
|
|
20
|
|
3.25
|
|
Total
loans
|
49,469
|
|
406
|
|
3.31
|
|
|
48,392
|
|
406
|
|
3.38
|
|
|
48,833
|
|
388
|
|
3.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,326
|
|
51
|
|
2.21
|
|
|
9,356
|
|
51
|
|
2.22
|
|
|
9,057
|
|
50
|
|
2.23
|
|
Other investment
securities
|
3,008
|
|
11
|
|
1.50
|
|
|
3,001
|
|
11
|
|
1.50
|
|
|
879
|
|
3
|
|
1.16
|
|
Total investment
securities (b)
|
12,334
|
|
62
|
|
2.03
|
|
|
12,357
|
|
62
|
|
2.05
|
|
|
9,936
|
|
53
|
|
2.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
3,690
|
|
5
|
|
0.50
|
|
|
3,265
|
|
4
|
|
0.50
|
|
|
5,110
|
|
3
|
|
0.25
|
|
Other short-term
investments
|
104
|
|
—
|
|
0.58
|
|
|
109
|
|
—
|
|
0.93
|
|
|
102
|
|
—
|
|
0.42
|
|
Total earning
assets
|
65,597
|
|
473
|
|
2.91
|
|
|
64,123
|
|
472
|
|
2.97
|
|
|
63,981
|
|
444
|
|
2.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,074
|
|
|
|
|
1,068
|
|
|
|
|
1,041
|
|
|
|
Allowance for loan
losses
|
(749)
|
|
|
|
|
(680)
|
|
|
|
|
(613)
|
|
|
|
Accrued income and
other assets
|
4,746
|
|
|
|
|
4,717
|
|
|
|
|
4,554
|
|
|
|
Total
assets
|
$
|
70,668
|
|
|
|
|
$
|
69,228
|
|
|
|
|
$
|
68,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
22,785
|
|
6
|
|
0.11
|
|
|
$
|
23,193
|
|
6
|
|
0.11
|
|
|
$
|
23,659
|
|
6
|
|
0.11
|
|
Savings
deposits
|
2,010
|
|
—
|
|
0.02
|
|
|
1,936
|
|
—
|
|
0.02
|
|
|
1,834
|
|
—
|
|
0.02
|
|
Customer certificates
of deposit
|
3,320
|
|
4
|
|
0.40
|
|
|
3,477
|
|
4
|
|
0.40
|
|
|
4,422
|
|
4
|
|
0.37
|
|
Foreign office time
deposits
|
30
|
|
—
|
|
0.35
|
|
|
50
|
|
—
|
|
0.33
|
|
|
118
|
|
1
|
|
1.26
|
|
Total
interest-bearing deposits
|
28,145
|
|
10
|
|
0.14
|
|
|
28,656
|
|
10
|
|
0.14
|
|
|
30,033
|
|
11
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
159
|
|
—
|
|
0.45
|
|
|
365
|
|
—
|
|
0.45
|
|
|
78
|
|
—
|
|
0.04
|
|
Medium- and long-term
debt
|
5,072
|
|
18
|
|
1.42
|
|
|
3,093
|
|
15
|
|
1.94
|
|
|
2,661
|
|
12
|
|
1.83
|
|
Total
interest-bearing sources
|
33,376
|
|
28
|
|
0.33
|
|
|
32,114
|
|
25
|
|
0.32
|
|
|
32,772
|
|
23
|
|
0.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
28,376
|
|
|
|
|
28,052
|
|
|
|
|
27,365
|
|
|
|
Accrued expenses and
other liabilities
|
1,262
|
|
|
|
|
1,430
|
|
|
|
|
1,314
|
|
|
|
Total shareholders'
equity
|
7,654
|
|
|
|
|
7,632
|
|
|
|
|
7,512
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
70,668
|
|
|
|
|
$
|
69,228
|
|
|
|
|
$
|
68,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread
|
|
$
|
445
|
|
2.58
|
|
|
|
$
|
447
|
|
2.65
|
|
|
|
$
|
421
|
|
2.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.16
|
|
|
|
|
0.16
|
|
|
|
|
0.14
|
|
Net interest margin
(as a percentage of average earning assets)
|
|
|
2.74
|
%
|
|
|
|
2.81
|
%
|
|
|
|
2.65
|
%
|
(a)
Fully taxable equivalent.
|
(b)
Includes investment securities
available-for-sale and investment securities
held-to-maturity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATISTICAL DATA (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
(in millions,
except per share data)
|
2016
|
2016
|
2015
|
2015
|
2015
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
Floor plan
|
$
|
4,120
|
|
$
|
3,902
|
|
$
|
3,939
|
|
$
|
3,538
|
|
$
|
3,840
|
|
Other
|
28,240
|
|
27,660
|
|
27,720
|
|
28,239
|
|
28,883
|
|
Total commercial
loans
|
32,360
|
|
31,562
|
|
31,659
|
|
31,777
|
|
32,723
|
|
Real estate
construction loans
|
2,553
|
|
2,290
|
|
2,001
|
|
1,874
|
|
1,795
|
|
Commercial mortgage
loans
|
9,038
|
|
8,982
|
|
8,977
|
|
8,787
|
|
8,674
|
|
Lease
financing
|
684
|
|
731
|
|
724
|
|
751
|
|
786
|
|
International
loans
|
1,365
|
|
1,455
|
|
1,368
|
|
1,382
|
|
1,420
|
|
Residential mortgage
loans
|
1,856
|
|
1,874
|
|
1,870
|
|
1,880
|
|
1,865
|
|
Consumer
loans:
|
|
|
|
|
|
Home
equity
|
1,779
|
|
1,738
|
|
1,720
|
|
1,714
|
|
1,682
|
|
Other
consumer
|
745
|
|
745
|
|
765
|
|
777
|
|
796
|
|
Total consumer
loans
|
2,524
|
|
2,483
|
|
2,485
|
|
2,491
|
|
2,478
|
|
Total
loans
|
$
|
50,380
|
|
$
|
49,377
|
|
$
|
49,084
|
|
$
|
48,942
|
|
$
|
49,741
|
|
|
|
|
|
|
|
Goodwill
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
Core deposit
intangible
|
9
|
|
9
|
|
10
|
|
10
|
|
11
|
|
Other
intangibles
|
3
|
|
4
|
|
4
|
|
4
|
|
4
|
|
|
|
|
|
|
|
Common equity tier 1
capital (a)
|
7,346
|
|
7,331
|
|
7,350
|
|
7,327
|
|
7,280
|
|
Risk-weighted assets
(a)
|
70,097
|
|
69,319
|
|
69,731
|
|
69,718
|
|
69,967
|
|
|
|
|
|
|
|
Common equity tier 1
and tier 1 risk-based capital ratio (a)
|
10.48
|
%
|
10.58
|
%
|
10.54
|
%
|
10.51
|
%
|
10.40
|
%
|
Total risk-based
capital ratio (a)
|
12.73
|
|
12.84
|
|
12.69
|
|
12.82
|
|
12.38
|
|
Leverage ratio
(a)
|
10.41
|
|
10.60
|
|
10.22
|
|
10.28
|
|
10.56
|
|
Common equity
ratio
|
10.79
|
|
11.08
|
|
10.52
|
|
10.73
|
|
10.76
|
|
Tangible common
equity ratio (b)
|
9.98
|
|
10.23
|
|
9.70
|
|
9.91
|
|
9.92
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
44.24
|
|
$
|
43.66
|
|
$
|
43.03
|
|
$
|
43.02
|
|
$
|
42.18
|
|
Tangible common
equity per share of common stock (b)
|
40.52
|
|
39.96
|
|
39.33
|
|
39.36
|
|
38.53
|
|
Market value per
share for the quarter:
|
|
|
|
|
|
High
|
47.55
|
|
41.74
|
|
47.44
|
|
52.93
|
|
53.45
|
|
Low
|
36.27
|
|
30.48
|
|
39.52
|
|
40.01
|
|
44.38
|
|
Close
|
41.13
|
|
37.87
|
|
41.83
|
|
41.10
|
|
51.32
|
|
|
|
|
|
|
|
Quarterly
ratios:
|
|
|
|
|
|
Return on average
common shareholders' equity
|
5.44
|
%
|
3.13
|
%
|
6.08
|
%
|
7.19
|
%
|
7.21
|
%
|
Return on average
assets
|
0.59
|
|
0.34
|
|
0.64
|
|
0.76
|
|
0.79
|
|
Efficiency ratio
(c)
|
72.48
|
|
66.07
|
|
69.00
|
|
66.98
|
|
63.49
|
|
|
|
|
|
|
|
Number of banking
centers
|
473
|
|
477
|
|
477
|
|
477
|
|
477
|
|
|
|
|
|
|
|
Number of employees -
full time equivalent
|
8,792
|
|
8,869
|
|
8,880
|
|
8,941
|
|
8,901
|
|
(a)
|
June 30, 2016
amounts and ratios are estimated.
|
(b)
|
See Reconciliation of
Non-GAAP Financial Measures.
|
(c)
|
Noninterest expenses
as a percentage of the sum of net interest income (FTE) and
noninterest income excluding net securities gains
(losses).
|
|
|
|
|
|
|
|
|
|
|
|
PARENT COMPANY
ONLY BALANCE SHEETS (unaudited)
|
Comerica
Incorporated
|
|
|
|
|
|
|
|
June 30,
|
December 31,
|
June 30,
|
(in millions,
except share data)
|
2016
|
2015
|
2015
|
|
|
|
|
ASSETS
|
|
|
|
Cash and due from
subsidiary bank
|
$
|
8
|
|
$
|
4
|
|
$
|
7
|
|
Short-term
investments with subsidiary bank
|
563
|
|
569
|
|
861
|
|
Other short-term
investments
|
87
|
|
89
|
|
94
|
|
Investment in
subsidiaries, principally banks
|
7,666
|
|
7,523
|
|
7,500
|
|
Premises and
equipment
|
2
|
|
3
|
|
2
|
|
Other
assets
|
163
|
|
137
|
|
122
|
|
Total
assets
|
$
|
8,489
|
|
$
|
8,325
|
|
$
|
8,586
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Medium- and long-term
debt
|
$
|
632
|
|
$
|
608
|
|
$
|
903
|
|
Other
liabilities
|
163
|
|
157
|
|
160
|
|
Total
liabilities
|
795
|
|
765
|
|
1,063
|
|
|
|
|
|
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
|
|
2,173
|
|
2,158
|
|
Accumulated other
comprehensive loss
|
(295)
|
|
(429)
|
|
(396)
|
|
Retained
earnings
|
7,157
|
|
7,084
|
|
6,908
|
|
Less cost of common
stock in treasury - 54,247,325 shares at 6/30/16, 52,457,113 shares
at 12/31/15 and 49,803,515 shares at 6/30/15
|
(2,474)
|
|
(2,409)
|
|
(2,288)
|
|
Total
shareholders' equity
|
7,694
|
|
7,560
|
|
7,523
|
|
Total liabilities
and shareholders' equity
|
$
|
8,489
|
|
$
|
8,325
|
|
$
|
8,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2015
|
175.7
|
|
$
|
1,141
|
|
$
|
2,173
|
|
$
|
(429)
|
|
$
|
7,084
|
|
$
|
(2,409)
|
|
$
|
7,560
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
164
|
|
—
|
|
164
|
|
Other comprehensive
income, net of tax
|
—
|
|
—
|
|
—
|
|
134
|
|
—
|
|
—
|
|
134
|
|
Cash dividends
declared on common stock ($0.43 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(75)
|
|
—
|
|
(75)
|
|
Purchase of common
stock
|
(2.9)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(114)
|
|
(114)
|
|
Net issuance of
common stock under employee stock plans
|
1.1
|
|
—
|
|
(33)
|
|
—
|
|
(16)
|
|
49
|
|
—
|
|
Share-based
compensation
|
—
|
|
—
|
|
25
|
|
—
|
|
—
|
|
—
|
|
25
|
|
BALANCE AT JUNE
30, 2016
|
173.9
|
|
$
|
1,141
|
|
$
|
2,165
|
|
$
|
(295)
|
|
$
|
7,157
|
|
$
|
(2,474)
|
|
$
|
7,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BUSINESS
SEGMENT FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
June 30, 2016
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
355
|
|
|
$
|
155
|
|
|
$
|
42
|
|
|
$
|
(111)
|
|
|
$
|
4
|
|
|
$
|
445
|
|
Provision for credit
losses
|
46
|
|
|
1
|
|
|
3
|
|
|
—
|
|
|
(1)
|
|
|
49
|
|
Noninterest
income
|
142
|
|
|
48
|
|
|
62
|
|
|
13
|
|
|
4
|
|
|
269
|
|
Noninterest
expenses
|
222
|
|
|
205
|
|
|
81
|
|
|
2
|
|
|
9
|
|
|
519
|
|
Provision (benefit)
for income taxes
|
75
|
|
|
(1)
|
|
|
7
|
|
|
(38)
|
|
|
(1)
|
|
|
42
|
|
Net income
(loss)
|
$
|
154
|
|
|
$
|
(2)
|
|
|
$
|
13
|
|
|
$
|
(62)
|
|
|
$
|
1
|
|
|
$
|
104
|
|
Net credit-related
charge-offs
|
$
|
42
|
|
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
39,617
|
|
|
$
|
6,557
|
|
|
$
|
5,215
|
|
|
$
|
14,135
|
|
|
$
|
5,144
|
|
|
$
|
70,668
|
|
Loans
|
38,574
|
|
|
5,879
|
|
|
5,016
|
|
|
—
|
|
|
—
|
|
|
49,469
|
|
Deposits
|
28,429
|
|
|
23,546
|
|
|
4,213
|
|
|
62
|
|
|
271
|
|
|
56,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.55
|
%
|
|
(0.03)%
|
|
|
1.02
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.59
|
%
|
Efficiency ratio
(b)
|
44.46
|
|
|
101.12
|
|
|
77.65
|
|
|
N/M
|
|
|
N/M
|
|
|
72.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
March 31, 2016
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
362
|
|
|
$
|
156
|
|
|
$
|
43
|
|
|
$
|
(118)
|
|
|
$
|
4
|
|
|
$
|
447
|
|
Provision for credit
losses
|
151
|
|
|
3
|
|
|
(5)
|
|
|
—
|
|
|
(1)
|
|
|
148
|
|
Noninterest
income
|
135
|
|
|
43
|
|
|
59
|
|
|
14
|
|
|
(5)
|
|
|
246
|
|
Noninterest
expenses
|
207
|
|
|
179
|
|
|
73
|
|
|
2
|
|
|
(1)
|
|
|
460
|
|
Provision (benefit)
for income taxes
|
45
|
|
|
6
|
|
|
12
|
|
|
(40)
|
|
|
2
|
|
|
25
|
|
Net income
(loss)
|
$
|
94
|
|
|
$
|
11
|
|
|
$
|
22
|
|
|
$
|
(66)
|
|
|
$
|
(1)
|
|
|
$
|
60
|
|
Net credit-related
charge-offs (recoveries)
|
$
|
57
|
|
|
$
|
2
|
|
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
38,635
|
|
|
$
|
6,544
|
|
|
$
|
5,162
|
|
|
$
|
14,162
|
|
|
$
|
4,725
|
|
|
$
|
69,228
|
|
Loans
|
37,561
|
|
|
5,867
|
|
|
4,964
|
|
|
—
|
|
|
—
|
|
|
48,392
|
|
Deposits
|
29,108
|
|
|
23,110
|
|
|
4,171
|
|
|
103
|
|
|
216
|
|
|
56,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
0.97
|
%
|
|
0.19
|
%
|
|
1.69
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.34
|
%
|
Efficiency ratio
(b)
|
41.62
|
|
|
88.91
|
|
|
71.47
|
|
|
N/M
|
|
|
N/M
|
|
|
66.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
373
|
|
|
$
|
155
|
|
|
$
|
45
|
|
|
$
|
(154)
|
|
|
$
|
2
|
|
|
$
|
421
|
|
Provision for credit
losses
|
61
|
|
|
(8)
|
|
|
(9)
|
|
|
—
|
|
|
3
|
|
|
47
|
|
Noninterest
income
|
138
|
|
|
46
|
|
|
60
|
|
|
14
|
|
|
—
|
|
|
258
|
|
Noninterest
expenses
|
175
|
|
|
181
|
|
|
74
|
|
|
2
|
|
|
1
|
|
|
433
|
|
Provision (benefit)
for income taxes
|
94
|
|
|
10
|
|
|
14
|
|
|
(53)
|
|
|
(1)
|
|
|
64
|
|
Net income
(loss)
|
$
|
181
|
|
|
$
|
18
|
|
|
$
|
26
|
|
|
$
|
(89)
|
|
|
$
|
(1)
|
|
|
$
|
135
|
|
Net credit-related
charge-offs (recoveries)
|
$
|
23
|
|
|
$
|
1
|
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
39,134
|
|
|
$
|
6,459
|
|
|
$
|
5,153
|
|
|
$
|
11,697
|
|
|
$
|
6,520
|
|
|
$
|
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)
|
1.86
|
%
|
|
0.30
|
%
|
|
2.01
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.79
|
%
|
Efficiency ratio
(b)
|
33.96
|
|
|
89.88
|
|
|
70.28
|
|
|
N/M
|
|
|
N/M
|
|
|
63.49
|
|
(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 (fully taxable
equivalent basis) and noninterest income excluding net securities
gains.
|
N/M - Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET
SEGMENT FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
June 30, 2016
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
166
|
|
|
$
|
178
|
|
|
$
|
119
|
|
|
$
|
89
|
|
|
$
|
(107)
|
|
|
$
|
445
|
|
Provision for credit
losses
|
3
|
|
|
17
|
|
|
32
|
|
|
(2)
|
|
|
(1)
|
|
|
49
|
|
Noninterest
income
|
81
|
|
|
39
|
|
|
31
|
|
|
101
|
|
|
17
|
|
|
269
|
|
Noninterest
expenses
|
159
|
|
|
120
|
|
|
113
|
|
|
116
|
|
|
11
|
|
|
519
|
|
Provision (benefit)
for income taxes
|
28
|
|
|
30
|
|
|
2
|
|
|
21
|
|
|
(39)
|
|
|
42
|
|
Net income
(loss)
|
$
|
57
|
|
|
$
|
50
|
|
|
$
|
3
|
|
|
$
|
55
|
|
|
$
|
(61)
|
|
|
$
|
104
|
|
Net credit-related
charge-offs (recoveries)
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
31
|
|
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,299
|
|
|
$
|
17,997
|
|
|
$
|
11,287
|
|
|
$
|
8,806
|
|
|
$
|
19,279
|
|
|
$
|
70,668
|
|
Loans
|
12,660
|
|
|
17,708
|
|
|
10,840
|
|
|
8,261
|
|
|
—
|
|
|
49,469
|
|
Deposits
|
21,553
|
|
|
16,933
|
|
|
10,052
|
|
|
7,650
|
|
|
333
|
|
|
56,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.01
|
%
|
|
1.10
|
%
|
|
0.11
|
%
|
|
2.52
|
%
|
|
N/M
|
|
|
0.59
|
%
|
Efficiency ratio
(b)
|
64.13
|
|
|
55.30
|
|
|
74.91
|
|
|
60.98
|
|
|
N/M
|
|
|
72.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
March 31, 2016
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
175
|
|
|
$
|
177
|
|
|
$
|
123
|
|
|
$
|
86
|
|
|
$
|
(114)
|
|
|
$
|
447
|
|
Provision for credit
losses
|
(6)
|
|
|
(6)
|
|
|
169
|
|
|
(8)
|
|
|
(1)
|
|
|
148
|
|
Noninterest
income
|
76
|
|
|
38
|
|
|
30
|
|
|
93
|
|
|
9
|
|
|
246
|
|
Noninterest
expenses
|
151
|
|
|
104
|
|
|
100
|
|
|
104
|
|
|
1
|
|
|
460
|
|
Provision (benefit)
for income taxes
|
35
|
|
|
44
|
|
|
(40)
|
|
|
24
|
|
|
(38)
|
|
|
25
|
|
Net income
(loss)
|
$
|
71
|
|
|
$
|
73
|
|
|
$
|
(76)
|
|
|
$
|
59
|
|
|
$
|
(67)
|
|
|
$
|
60
|
|
Net credit-related
charge-offs (recoveries)
|
$
|
5
|
|
|
$
|
8
|
|
|
$
|
47
|
|
|
$
|
(2)
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,402
|
|
|
$
|
17,541
|
|
|
$
|
11,295
|
|
|
$
|
8,103
|
|
|
$
|
18,887
|
|
|
$
|
69,228
|
|
Loans
|
12,774
|
|
|
17,283
|
|
|
10,763
|
|
|
7,572
|
|
|
—
|
|
|
48,392
|
|
Deposits
|
21,696
|
|
|
16,654
|
|
|
10,374
|
|
|
7,665
|
|
|
319
|
|
|
56,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.26
|
%
|
|
1.66
|
%
|
|
(2.54)%
|
|
|
2.84
|
%
|
|
N/M
|
|
|
0.34
|
%
|
Efficiency ratio
(b)
|
59.59
|
|
|
48.10
|
|
|
65.37
|
|
|
58.36
|
|
|
N/M
|
|
|
66.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
June 30, 2015
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense)
|
$
|
178
|
|
|
$
|
180
|
|
|
$
|
130
|
|
|
$
|
85
|
|
|
$
|
(152)
|
|
|
$
|
421
|
|
Provision for credit
losses
|
(13)
|
|
|
4
|
|
|
43
|
|
|
10
|
|
|
3
|
|
|
47
|
|
Noninterest
income
|
86
|
|
|
36
|
|
|
30
|
|
|
92
|
|
|
14
|
|
|
258
|
|
Noninterest
expenses
|
129
|
|
|
99
|
|
|
93
|
|
|
109
|
|
|
3
|
|
|
433
|
|
Provision (benefit)
for income taxes
|
50
|
|
|
42
|
|
|
10
|
|
|
16
|
|
|
(54)
|
|
|
64
|
|
Net income
(loss)
|
$
|
98
|
|
|
$
|
71
|
|
|
$
|
14
|
|
|
$
|
42
|
|
|
$
|
(90)
|
|
|
$
|
135
|
|
Net credit-related
charge-offs (recoveries)
|
$
|
(1)
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,851
|
|
|
$
|
16,696
|
|
|
$
|
11,878
|
|
|
$
|
8,321
|
|
|
$
|
18,217
|
|
|
$
|
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
|
%
|
|
0.45
|
%
|
|
2.03
|
%
|
|
N/M
|
|
|
0.79
|
%
|
Efficiency ratio
(b)
|
48.09
|
|
|
45.90
|
|
|
58.13
|
|
|
61.56
|
|
|
N/M
|
|
|
63.49
|
|
(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 (fully taxable
equivalent basis) and noninterest income excluding net securities
gains.
|
N/M - Not
Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
2016
|
2016
|
2015
|
2015
|
2015
|
|
|
|
|
|
|
Tangible Common
Equity Ratio:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,694
|
|
$
|
7,644
|
|
$
|
7,560
|
|
$
|
7,622
|
|
$
|
7,523
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
12
|
|
13
|
|
14
|
|
14
|
|
15
|
|
Tangible common
equity
|
$
|
7,047
|
|
$
|
6,996
|
|
$
|
6,911
|
|
$
|
6,973
|
|
$
|
6,873
|
|
|
|
|
|
|
|
Total
assets
|
$
|
71,280
|
|
$
|
69,007
|
|
$
|
71,877
|
|
$
|
71,012
|
|
$
|
69,945
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
12
|
|
13
|
|
14
|
|
14
|
|
15
|
|
Tangible
assets
|
$
|
70,633
|
|
$
|
68,359
|
|
$
|
71,228
|
|
$
|
70,363
|
|
$
|
69,295
|
|
|
|
|
|
|
|
Common equity
ratio
|
10.79
|
%
|
11.08
|
%
|
10.52
|
%
|
10.73
|
%
|
10.76
|
%
|
Tangible common
equity ratio
|
9.98
|
|
10.23
|
|
9.70
|
|
9.91
|
|
9.92
|
|
|
|
|
|
|
|
Tangible Common
Equity per Share of Common Stock:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,694
|
|
$
|
7,644
|
|
$
|
7,560
|
|
$
|
7,622
|
|
$
|
7,523
|
|
Tangible common
equity
|
7,047
|
|
6,996
|
|
6,911
|
|
6,973
|
|
6,873
|
|
|
|
|
|
|
|
Shares of common
stock outstanding (in millions)
|
174
|
|
175
|
|
176
|
|
177
|
|
178
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
44.24
|
|
$
|
43.66
|
|
$
|
43.03
|
|
$
|
43.02
|
|
$
|
42.18
|
|
Tangible common
equity per share of common stock
|
40.52
|
|
39.96
|
|
39.33
|
|
39.36
|
|
38.53
|
|
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