DALLAS, July 17, 2015 /PRNewswire/ -- Comerica
Incorporated (NYSE: CMA) today reported second quarter 2015 net
income of $135 million, compared to
$134 million for the first quarter
2015 and $151 million for the second
quarter 2014. Earnings per diluted share were 73 cents for both the second and first quarters
of 2015 and 80 cents for the second
quarter 2014.
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(dollar amounts in
millions, except per share data)
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2nd Qtr
'15
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|
1st Qtr
'15
|
|
2nd Qtr
'14
|
|
Net interest
income
|
$
|
421
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$
|
413
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$
|
416
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Provision for credit
losses
|
47
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|
14
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|
11
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Noninterest income
(a)
|
261
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|
255
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|
220
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Noninterest expenses
(a)
|
436
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(b)
|
459
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|
404
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Provision for income
taxes
|
64
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|
|
61
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|
70
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|
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|
|
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Net income
|
135
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|
134
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|
151
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Net income
attributable to common shares
|
134
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|
132
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|
149
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Diluted income per
common share
|
0.73
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|
0.73
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|
0.80
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Average diluted
shares (in millions)
|
182
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|
182
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186
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Basel III common
equity Tier 1 capital ratio (c) (d)
|
10.53
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%
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|
10.40
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%
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|
n/a
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Tier 1 common capital
ratio (c) (e)
|
n/a
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n/a
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|
10.50
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%
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Tangible common
equity ratio (e)
|
9.92
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9.97
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10.39
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(a)
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Effective January
1, 2015, contractual changes to a card program resulted in a change
to the accounting presentation of the related revenues and
expenses. The effect of this change was increases of $44 million to
both noninterest income and noninterest expenses in both the second
and first quarters of 2015.
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(b)
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Reflects a $31
million reduction in litigation-related expense.
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(c)
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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.
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(d)
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June 30, 2015
ratio is estimated.
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(e)
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See Reconciliation
of Non-GAAP Financial Measures.
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n/a - not
applicable.
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"Our second quarter results reflect the advantages of our
diverse geographic footprint and industry expertise," said
Ralph W. Babb, Jr., chairman and
chief executive officer. "Average loans were up $2.1 billion, or 5 percent, compared to a year
ago and were up $682 million, or 1
percent, relative to the first quarter, with increases in most
markets and business lines. Relative to the first quarter, average
deposits increased $408 million, or 1
percent, with noninterest-bearing deposits up $668 million.
"Revenue was up 2 percent, with growth in both net interest
income and fee income in the second quarter. Charge-offs,
nonaccruals and criticized loans remained well below normal
historical levels. The provision for credit losses increased,
primarily as a result of an increase in reserves for energy
exposure. Noninterest expenses decreased $23
million to $436 million,
primarily due to a decrease in litigation-related expense.
"Our balance sheet is well positioned to benefit as rates rise.
We remain focused on the long term with a relationship banking
strategy that continues to serve us well."
Second Quarter 2015 Compared to First
Quarter 2015
- Average total loans increased $682
million, or 1 percent, to $48.8
billion, primarily driven by a $690
million increase in Mortgage Banker Finance, as well as
increases in general Middle Market, Private Banking and National
Dealer Services, partially offset by decreases of $276 million in Energy and $151 million in Corporate Banking. Average loans
increased across all markets except Texas, which decreased as a result of Energy.
Period-end total loans increased $669
million, to $49.7
billion.
- Average total deposits increased $408 million, or 1 percent, to $57.4 billion, primarily driven by an increase in
noninterest-bearing deposits of $668
million, across all markets. Period-end total deposits
increased $690 million, to
$58.3 billion.
- Net interest income increased $8
million, or 2 percent, to $421
million in the second quarter 2015, compared to $413 million in the first quarter 2015, primarily
due to an increase in loan volume and one additional day in the
quarter.
- Net charge-offs were $18
million, or 0.15 percent of average loans, in the second
quarter 2015, compared to $8 million,
or 0.07 percent, in the first quarter 2015. The provision for
credit losses increased to $47
million in the second quarter 2015, primarily as a result of
an increase in reserves for energy exposure.
- Noninterest income increased $6
million in the second quarter 2015, primarily due to an
increase in card fees, as well as small increases in several other
fee categories, partially offset by a decrease in commercial
lending fees.
- Noninterest expenses decreased $23
million in the second quarter 2015, primarily reflecting a
$31 million decrease in
litigation-related expense and a seasonal decrease in salaries and
benefits expense, partially offset by an increase in outside
processing fees.
- Capital remained solid at June 30,
2015, as evidenced by an estimated common equity Tier 1
capital ratio of 10.53 percent and a tangible common equity ratio
of 9.92 percent.
- The quarterly dividend increased 5 percent, to
$0.21 per share in the second quarter
2015, and Comerica repurchased approximately 1.0 million shares of
common stock and 500,000 warrants under the equity repurchase
program. These equity repurchases, together with dividends,
returned $96 million to
shareholders.
Second Quarter 2015 Compared to Second Quarter
2014
- Average total loans increased $2.1
billion, or 5 percent, reflecting increases in almost all
lines of business.
- Average total deposits increased $4.0 billion, or 8 percent, driven by increases
in noninterest-bearing deposits of $3.4
billion, or 14 percent, and money market and NOW deposits of
$1.4 billion, or 6 percent, partially
offset by decreases in other deposit categories. Average deposits
increased in all major lines of business and markets.
- Net interest income increased $5
million, largely due to loan growth, partially offset by an
$8 million decrease in accretion on
the purchased loan portfolio.
- The provision for credit losses increased $36 million, primarily as a result of an increase
in reserves for energy exposure.
- Excluding the impact of a change to the accounting
presentation for a card program, which increased both noninterest
income and noninterest expenses by $44
million in the second quarter 2015, noninterest income
decreased $3 million, primarily
reflecting increases in fiduciary income, service charges and card
fees, which were more than offset by declines in foreign exchange
income and several non-fee categories; and noninterest expenses
decreased $12 million, largely
reflecting a $33 million reduction in
litigation-related expenses, partially offset by higher outside
processing expenses related to revenue generating activities and an
increase in technology-related contract labor expenses.
Net Interest
Income
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(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
1st Qtr
'15
|
|
2nd Qtr
'14
|
Net interest
income
|
$
|
421
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$
|
413
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$
|
416
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Net interest
margin
|
2.65
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%
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2.64
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%
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|
2.78
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%
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Selected average
balances:
|
|
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Total earning
assets
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$
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63,981
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$
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63,480
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$
|
60,148
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Total
loans
|
48,833
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48,151
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46,725
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Total investment
securities
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9,936
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9,907
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9,364
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Federal Reserve Bank
deposits
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4,968
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5,176
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3,801
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Total
deposits
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57,398
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56,990
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53,384
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Total
noninterest-bearing deposits
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27,365
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26,697
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|
24,011
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- Net interest income increased $8
million to $421 million in the
second quarter 2015, compared to the first quarter 2015.
- Interest on loans increased $11
million, primarily reflecting the benefit from an increase
in average loan balances (+$5 million), the impact of one
additional day in the second quarter (+$4 million) and an increase
in yields (+$2 million), in part reflecting an increase in LIBOR
rates.
- The increase in interest on loans was partially offset by
decreases totaling $3 million
resulting primarily from lower yields on investment securities, a
decrease in average Federal Reserve Bank deposit balances and an
increase in interest expense on debt.
- The net interest margin of 2.65 percent increased 1 basis
point compared to the first quarter 2015, primarily due to higher
loan yields.
Noninterest Income
Noninterest income increased
$6 million in the second quarter
2015, compared to $255 million for
the first quarter 2015. The increase primarily reflected a
$5 million increase in card fees as
well as small increases in service charges on deposit accounts,
fiduciary income and brokerage fees, partially offset by a
$3 million decrease in commercial
lending fees. The increase in card fees primarily reflected
increased revenue from merchant payment processing services and
interchange. The decrease in commercial lending fees was primarily
due to decreases in unused commitment fees and syndication agent
fees.
Noninterest Expenses
Noninterest expenses decreased
$23 million in the second quarter
2015, compared to $459 million for
the first quarter 2015, primarily reflecting a $31 million decrease in litigation-related
expenses and a $2 million decrease in
salaries and benefits expense, partially offset by an $8 million increase in outside processing fees
associated with revenue-generating activities. Related to
litigation expense, on July 1, 2015,
the Montana Supreme Court issued a ruling favorable to Comerica on
a lender liability case, which reversed a jury verdict and sent the
case back for a new trial. The decrease in salaries and benefits
expense primarily reflected seasonal decreases in payroll taxes and
share-based compensation expense, partially offset by an increase
in technology-related contract labor expense and the impact on
salaries of merit increases and one additional day in the second
quarter.
Credit Quality
"Overall, credit quality remained
solid. Net charge-offs continued to be well below normal levels at
15 basis points, or $18 million,"
said Babb." Net charge-offs related to our energy exposure were
nominal. The provision for credit losses increased from a very low
level due to an increase in criticized loans related to energy, as
well as uncertainty due to continued volatility and the sustained
low oil and gas prices. The reserve to total loans ratio increased
to 1.24 percent, and the reserve covered nonperforming loans 1.7
times.
"Our Energy customers are generally decreasing their loan
commitments and outstandings as they take the necessary actions to
adjust to lower energy prices, such as reducing their expenses,
disposing of assets, and tapping the capital markets. On average,
loan to values remained stable from the last redetermination.
Over the past 30 years, we have built our energy business with a
strategy to withstand the ups and downs of the cycles."
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(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
1st Qtr
'15
|
|
2nd Qtr
'14
|
Net loan
charge-offs
|
$
|
18
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|
|
$
|
8
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|
|
$
|
9
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|
Net loan
charge-offs/Average total loans
|
0.15
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%
|
|
0.07
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%
|
|
0.08
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%
|
|
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|
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Provision for credit
losses
|
$
|
47
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|
$
|
14
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|
|
$
|
11
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|
Nonperforming loans
(a)
|
361
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|
|
279
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|
|
347
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Nonperforming assets
(NPAs) (a)
|
370
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|
|
288
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|
|
360
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NPAs/Total loans and
foreclosed property
|
0.74
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%
|
|
0.59
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%
|
|
0.75
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%
|
|
|
|
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Loans past due 90
days or more and still accruing
|
$
|
18
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|
$
|
12
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|
|
$
|
7
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
618
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|
|
601
|
|
|
591
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|
Allowance for credit
losses on lending-related commitments (b)
|
50
|
|
|
39
|
|
|
42
|
|
Total allowance for
credit losses
|
668
|
|
|
640
|
|
|
633
|
|
|
|
|
|
|
|
Allowance for loan
losses/Period-end total loans
|
1.24
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%
|
|
1.22
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%
|
|
1.23
|
%
|
Allowance for loan
losses/Nonperforming loans
|
171
|
|
|
216
|
|
|
170
|
|
|
|
|
(a)
|
Excludes loans
acquired with credit impairment.
|
|
(b)
|
Included in
"Accrued expenses and other liabilities" on the consolidated
balance sheets.
|
- The provision for credit losses increased to $47 million in the second quarter 2015, primarily
reflecting higher reserves for loans related to
energy(a) as a result of an increase in criticized loans
and the impact of continued volatility and sustained low energy
prices. To a lesser extent, Technology and Life Sciences as well as
Corporate Banking contributed to the increase in the provision,
largely as a result of charge-offs and variability. These increases
were partially offset by credit quality improvements in the
remainder of the portfolio.
- Net charge-offs increased $10
million to $18 million, or
0.15 percent of average loans, in the second quarter 2015, compared
to $8 million, or 0.07 percent, in
the first quarter 2015.
- During the second quarter 2015, $145 million of borrower relationships over
$2 million were transferred to
nonaccrual status, of which $100
million were loans related to energy.
- Criticized loans increased $294
million to $2.4 billion at
June 30, 2015, compared to
$2.1 billion at March 31, 2015, reflecting an increase of
approximately $329 million in
criticized loans related to energy.
(a) Loans related to
energy at June 30, 2015 included approximately $3.3 billion of
outstanding loans in our Energy business line as well as
approximately $725 million of loans in other lines of business to
companies that have a sizable portion of their revenue related to
energy or could be otherwise disproportionately negatively impacted
by prolonged low oil and gas prices.
|
Balance Sheet and Capital Management
Total assets and
common shareholders' equity were $69.9
billion and $7.5 billion,
respectively, at June 30, 2015,
compared to $69.3 billion and
$7.5 billion, respectively, at
March 31, 2015.
There were approximately 178 million common shares outstanding
at June 30, 2015. Share repurchases
of $49 million (1.0 million shares)
and warrant repurchases of $10
million (500,000 warrants) under the equity repurchase
program, combined with dividends of 21
cents per share, returned 71 percent of second quarter 2015
net income to shareholders. Diluted average shares remained stable
at 182 million for the second quarter 2015, as an increase in share
dilution from options and warrants due to an increase in Comerica's
average stock price offset the impact of equity repurchases.
The estimated common equity Tier 1 capital ratio, reflective of
transition provisions and excluding accumulated other comprehensive
income ("AOCI"), was 10.53 percent at June
30, 2015. Certain deductions and adjustments to regulatory
capital began phasing in on January 1,
2015 and will be fully implemented on January 1, 2018. The estimated ratio under fully
phased-in Basel III capital rules is not significantly different
from the transitional ratio. Comerica's tangible common equity
ratio was 9.92 percent at June 30,
2015, a decrease of 5 basis points from March 31, 2015.
Full-Year 2015 Outlook
Management expectations for
full-year 2015 compared to full-year 2014, assuming a continuation
of the current economic and low-rate environment, are as
follows:
- Average full-year loan growth consistent with 2014,
reflecting seasonal declines in Mortgage Banker Finance and
National Dealer Services in the second half of the year, a
continued decline in Energy, and a sustained focus on pricing and
structure discipline.
- Net interest income relatively stable, assuming no rise
in interest rates, reflecting a decrease of about $30 million in purchase accounting accretion, to
about $6 million, and the impact of a
continuing low rate environment on asset yields, offset by earning
asset growth.
- Provision for credit losses higher, with third and fourth
quarter net charge-offs each at levels similar to the second
quarter. If energy prices remain low, continued negative migration
is possible, which may be offset by lower exposure
balances.
- Noninterest income relatively stable, excluding the
impact of the change in accounting presentation for a card program.
Stable noninterest income reflects growth in fee income,
particularly card fees and fiduciary income, mostly offset by a
decline in warrant income and regulatory impacts on letter of
credit and derivative income.
- Noninterest expenses higher, excluding the impact of the
change in accounting presentation for a card program, with
continued focus on driving efficiencies for the long term. Expenses
for the second half of 2015 are expected to be higher than the
first half, reflecting three more days in the second half, the
impact of merit increases, a ramp-up in the second half of
technology and regulatory expenses, as well as higher pension,
outside processing and occupancy expenses.
- Income tax expense to approximate 32 percent of pre-tax
income.
Business Segments
Comerica's operations are
strategically aligned into three major business segments: the
Business Bank, the Retail Bank and Wealth Management. The Finance
Division is also reported as a segment. The financial results below
are based on the internal business unit structure of the
Corporation and methodologies in effect at June 30, 2015 and are presented on a fully
taxable equivalent (FTE) basis. The accompanying narrative
addresses second quarter 2015 results compared to first quarter
2015.
The following table presents net income (loss) by business
segment.
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|
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|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
1st Qtr
'15
|
|
2nd Qtr
'14
|
Business
Bank
|
$
|
182
|
|
81
|
%
|
|
$
|
189
|
|
85
|
%
|
|
$
|
197
|
|
82
|
%
|
Retail
Bank
|
18
|
|
8
|
|
|
17
|
|
8
|
|
|
16
|
|
7
|
|
Wealth
Management
|
26
|
|
11
|
|
|
16
|
|
7
|
|
|
25
|
|
11
|
|
|
226
|
|
100
|
%
|
|
222
|
|
100
|
%
|
|
238
|
|
100
|
%
|
Finance
|
(90)
|
|
|
|
(89)
|
|
|
|
(91)
|
|
|
Other (a)
|
(1)
|
|
|
|
1
|
|
|
|
4
|
|
|
Total
|
$
|
135
|
|
|
|
$
|
134
|
|
|
|
$
|
151
|
|
|
|
|
(a)
|
Includes items not
directly associated with the three major business segments or the
Finance Division.
|
Business
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
375
|
|
|
$
|
370
|
|
|
$
|
375
|
|
Provision for credit
losses
|
61
|
|
|
25
|
|
|
35
|
|
Noninterest
income
|
140
|
|
|
142
|
|
|
100
|
|
Noninterest
expenses
|
176
|
|
|
200
|
|
|
143
|
|
Net income
|
182
|
|
|
189
|
|
|
197
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
22
|
|
|
9
|
|
|
9
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
39,135
|
|
|
38,654
|
|
|
37,305
|
|
Loans
|
38,109
|
|
|
37,623
|
|
|
36,367
|
|
Deposits
|
30,229
|
|
|
30,143
|
|
|
27,351
|
|
|
|
- Average loans increased $486
million, primarily reflecting increases in Mortgage Banker
Finance, general Middle Market and National Dealer Services,
partially offset by decreases in Energy and Corporate
Banking.
- Average deposits increased $86
million, primarily reflecting increases in Technology and
Life Sciences, general Middle Market and Corporate Banking,
partially offset by a decrease in Commercial Real
Estate.
- Net interest income increased $5
million, primarily due to the benefit from an increase in
average loan balances and one more day in the quarter, partially
offset by a lower funds transfer pricing (FTP) crediting
rate.
- The provision for credit losses increased $36 million, reflecting higher reserves for loans
related to energy as a result of an increase in criticized loans
and the impact of continued volatility and sustained low energy
prices. To a lesser extent, Technology and Life Sciences as well as
Corporate Banking contributed to the increase in the provision,
largely as a result of charge-offs and variability. These increases
were partially offset by credit quality improvements in the
remainder of the portfolio.
- Noninterest income decreased $2
million, primarily due to decreases in customer derivative
income and commercial lending fees, partially offset by an increase
in card fees.
- Noninterest expenses decreased $24
million, primarily driven by a reduction in
litigation-related expense, partially offset by an increase in
outside processing fees.
Retail
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
155
|
|
|
$
|
151
|
|
|
$
|
152
|
|
Provision for credit
losses
|
(8)
|
|
|
(8)
|
|
|
(6)
|
|
Noninterest
income
|
46
|
|
|
42
|
|
|
41
|
|
Noninterest
expenses
|
182
|
|
|
175
|
|
|
174
|
|
Net income
|
18
|
|
|
17
|
|
|
16
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
1
|
|
|
—
|
|
|
3
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
6,459
|
|
|
6,368
|
|
|
6,222
|
|
Loans
|
5,770
|
|
|
5,694
|
|
|
5,554
|
|
Deposits
|
22,747
|
|
|
22,404
|
|
|
21,890
|
|
- Average loans increased $76
million, largely due to an increase in Small
Business.
- Average deposits increased $343
million, primarily reflecting an increase in
noninterest-bearing deposits.
- Net interest income increased $4
million, primarily due to an increase in net FTP credits,
largely due to the increase in average deposits and the impact of
one additional day in the quarter.
- Noninterest income increased $4
million, due to small increases in several fee
categories.
- Noninterest expenses increased $7
million, primarily reflecting an increase in outside
processing fees and salaries expense. Salaries expense increased
primarily due to the impact of merit increases and one additional
day in the quarter.
Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
45
|
|
|
$
|
43
|
|
|
$
|
44
|
|
Provision for credit
losses
|
(9)
|
|
|
(1)
|
|
|
(10)
|
|
Noninterest
income
|
60
|
|
|
58
|
|
|
62
|
|
Noninterest
expenses
|
74
|
|
|
77
|
|
|
76
|
|
Net income
|
26
|
|
|
16
|
|
|
25
|
|
|
|
|
|
|
|
Net credit-related
charge-offs (recoveries)
|
(5)
|
|
|
(1)
|
|
|
(3)
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
5,153
|
|
|
5,029
|
|
|
4,987
|
|
Loans
|
4,954
|
|
|
4,834
|
|
|
4,804
|
|
Deposits
|
4,060
|
|
|
3,996
|
|
|
3,616
|
|
- Average loans increased $120
million.
- Average deposits increased $64
million, primarily reflecting an increase in
noninterest-bearing deposits.
- Net interest income increased $2
million, largely driven by the increase in average loan
balances and one additional day in the quarter.
- The provision for credit losses decreased $8 million, primarily reflecting credit quality
improvement.
- Noninterest income increased $2
million, primarily reflecting the impact of a securities
loss in the first quarter which was not repeated.
- Noninterest expenses decreased $3
million, reflecting small decreases in several
categories.
Geographic Market Segments
Comerica also provides
market segment results for three primary geographic markets:
Michigan, California and Texas. In addition to the three primary
geographic markets, Other Markets is also reported as a market
segment. Other Markets includes Florida, Arizona, the International Finance division
and businesses that have a significant presence outside of the
three primary geographic markets. The tables below present the
geographic market results based on the methodologies in effect at
June 30, 2015 and are presented on a
fully taxable equivalent (FTE) basis.
The following table presents net income (loss) by market
segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
1st Qtr
'15
|
|
2nd Qtr
'14
|
Michigan
|
$
|
98
|
|
44
|
%
|
|
$
|
73
|
|
33
|
%
|
|
$
|
77
|
|
32
|
%
|
California
|
71
|
|
31
|
|
|
73
|
|
33
|
|
|
63
|
|
27
|
|
Texas
|
14
|
|
6
|
|
|
32
|
|
14
|
|
|
39
|
|
16
|
|
Other
Markets
|
43
|
|
19
|
|
|
44
|
|
20
|
|
|
59
|
|
25
|
|
|
226
|
|
100
|
%
|
|
222
|
|
100
|
%
|
|
238
|
|
100
|
%
|
Finance & Other
(a)
|
(91)
|
|
|
|
(88)
|
|
|
|
(87)
|
|
|
Total
|
$
|
135
|
|
|
|
$
|
134
|
|
|
|
$
|
151
|
|
|
|
|
(a)
|
Includes items
not directly associated with the geographic markets.
|
- Average loans increased $236
million in California and
$67 million in Michigan (primarily general Middle Market),
and decreased $281 million in
Texas (primarily Energy). The
increase in California was led by
Technology and Life Sciences, National Dealer Services and Private
Banking.
- Average deposits increased $438
million in California and
decreased $51 million and
$4 million in Texas and Michigan, respectively. The increase in
California was primarily due to
increases in Technology and Life Sciences and general Middle
Market, partially offset by a decrease in Commercial Real
Estate.
- Net interest income increased $5
million and $2 million in
California and Michigan, respectively, and decreased
$1 million in Texas. The increase in California primarily reflected the benefit
from an increase in loan balances, while the decrease in
Texas was primarily the result of
decreased loan balances. Net interest income in all three markets
reflected the benefit from one additional day in the
quarter.
- Net charge-offs decreased $5
million in Michigan, and
increased $5 million in California and $2
million in Texas. The
provision for credit losses decreased $5
million in Michigan and
increased $7 million in California and $22
million in Texas. The
decrease in Michigan primarily
reflected improved credit quality throughout the portfolio. The
increase in Texas was driven by
higher reserves due to an increase in criticized loans related to
energy and the impact of continued volatility and sustained low
energy prices, while the increase in California primarily reflected higher reserves
in Technology and Life Sciences.
- Noninterest income increased $5
million in Michigan,
remained unchanged in California
and decreased $5 million in
Texas. The increase in
Michigan primarily reflected small
increases in several fee categories. The decrease in Texas was primarily due to decreases in
commercial lending fees, customer derivative income and foreign
exchange income.
- Noninterest expenses decreased $26
million in Michigan,
primarily reflecting a decrease in litigation-related expense,
decreased $2 million in Texas and increased $1
million in California.
Michigan
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
179
|
|
|
$
|
177
|
|
|
$
|
182
|
|
Provision for credit
losses
|
(13)
|
|
|
(8)
|
|
|
(9)
|
|
Noninterest
income
|
85
|
|
|
80
|
|
|
89
|
|
Noninterest
expenses
|
128
|
|
|
154
|
|
|
159
|
|
Net income
|
98
|
|
|
73
|
|
|
77
|
|
|
|
|
|
|
|
Net credit-related
charge-offs (recoveries)
|
(2)
|
|
|
3
|
|
|
10
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
13,852
|
|
|
13,736
|
|
|
13,851
|
|
Loans
|
13,290
|
|
|
13,223
|
|
|
13,482
|
|
Deposits
|
21,706
|
|
|
21,710
|
|
|
20,694
|
|
|
|
California
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
181
|
|
|
$
|
176
|
|
|
$
|
176
|
|
Provision for credit
losses
|
4
|
|
|
(3)
|
|
|
14
|
|
Noninterest
income
|
37
|
|
|
37
|
|
|
38
|
|
Noninterest
expenses
|
100
|
|
|
99
|
|
|
100
|
|
Net income
|
71
|
|
|
73
|
|
|
63
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
6
|
|
|
1
|
|
|
5
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
16,696
|
|
|
16,461
|
|
|
15,721
|
|
Loans
|
16,429
|
|
|
16,193
|
|
|
15,439
|
|
Deposits
|
17,275
|
|
|
16,837
|
|
|
15,370
|
|
|
|
Texas
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
2nd Qtr
'15
|
|
|
1st Qtr
'15
|
|
|
2nd Qtr
'14
|
|
Net interest income
(FTE)
|
$
|
130
|
|
|
$
|
131
|
|
|
$
|
137
|
|
Provision for credit
losses
|
43
|
|
|
21
|
|
|
22
|
|
Noninterest
income
|
31
|
|
|
36
|
|
|
35
|
|
Noninterest
expenses
|
94
|
|
|
96
|
|
|
89
|
|
Net income
|
14
|
|
|
32
|
|
|
39
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
5
|
|
|
3
|
|
|
2
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
Assets
|
11,878
|
|
|
12,192
|
|
|
11,661
|
|
Loans
|
11,254
|
|
|
11,535
|
|
|
10,966
|
|
Deposits
|
10,959
|
|
|
11,010
|
|
|
10,724
|
|
Conference Call and Webcast
Comerica will host a
conference call to review second quarter 2015 financial results at
8 a.m. CT Friday, July 17, 2015.
Interested parties may access the conference call by calling (877)
523-5249 or (210) 591-1147 (event ID No. 61399381). The call and
supplemental financial information can also be accessed via
Comerica's "Investor Relations" page at www.comerica.com. A replay
of the Webcast can be accessed via Comerica's "Investor Relations"
page at www.comerica.com.
Comerica Incorporated is a financial services company
headquartered in Dallas, Texas,
and strategically aligned by three major business segments: The
Business Bank, The Retail Bank and Wealth Management. Comerica
focuses on relationships and helping people and businesses be
successful. In addition to Texas,
Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in
several other states, as well as in Canada and Mexico.
This press release contains both financial measures based on
accounting principles generally accepted in the United States (GAAP) and non-GAAP based
financial measures, which are used where management believes it to
be helpful in understanding Comerica's results of operations or
financial position. Where non-GAAP financial measures are used, the
comparable GAAP financial measure, as well as a reconciliation to
the comparable GAAP financial measure, can be found in this press
release. These disclosures should not be viewed as a substitute for
operating results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP performance measures that may be
presented by other companies.
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
|
|
Six Months
Ended
|
|
June
30,
|
March
31,
|
June
30,
|
|
June
30,
|
(in millions,
except per share data)
|
2015
|
2015
|
2014
|
|
2015
|
2014
|
PER COMMON SHARE
AND COMMON STOCK DATA
|
|
|
|
|
|
|
Diluted net
income
|
$
|
0.73
|
|
$
|
0.73
|
|
$
|
0.80
|
|
|
$
|
1.46
|
|
$
|
1.54
|
|
Cash dividends
declared
|
0.21
|
|
0.20
|
|
0.20
|
|
|
0.41
|
|
0.39
|
|
|
|
|
|
|
|
|
Average diluted
shares (in thousands)
|
182,422
|
|
182,268
|
|
186,108
|
|
|
182,281
|
|
186,402
|
|
KEY
RATIOS
|
|
|
|
|
|
|
Return on average
common shareholders' equity
|
7.21
|
%
|
7.20
|
%
|
8.27
|
%
|
|
7.20
|
%
|
7.97
|
%
|
Return on average
assets
|
0.79
|
|
0.78
|
|
0.93
|
|
|
0.78
|
|
0.90
|
|
Common equity tier 1
risk-based capital ratio (a) (b)
|
10.53
|
|
10.40
|
|
n/a
|
|
|
|
|
Tier 1 common
risk-based capital ratio (c)
|
n/a
|
|
n/a
|
|
10.50
|
|
|
|
|
Tier 1 risk-based
capital ratio (a) (b)
|
10.53
|
|
10.40
|
|
10.50
|
|
|
|
|
Total risk-based
capital ratio (a) (b)
|
12.53
|
|
12.35
|
|
12.52
|
|
|
|
|
Leverage ratio (a)
(b)
|
10.57
|
|
10.53
|
|
10.93
|
|
|
|
|
Tangible common
equity ratio (c)
|
9.92
|
|
9.97
|
|
10.39
|
|
|
|
|
AVERAGE
BALANCES
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,788
|
|
$
|
31,090
|
|
$
|
29,890
|
|
|
$
|
31,442
|
|
$
|
29,130
|
|
Real estate
construction loans
|
1,807
|
|
1,938
|
|
1,913
|
|
|
1,872
|
|
1,871
|
|
Commercial mortgage
loans
|
8,672
|
|
8,581
|
|
8,749
|
|
|
8,627
|
|
8,759
|
|
Lease
financing
|
795
|
|
797
|
|
850
|
|
|
796
|
|
849
|
|
International
loans
|
1,453
|
|
1,512
|
|
1,328
|
|
|
1,482
|
|
1,315
|
|
Residential mortgage
loans
|
1,877
|
|
1,856
|
|
1,773
|
|
|
1,866
|
|
1,749
|
|
Consumer
loans
|
2,441
|
|
2,377
|
|
2,222
|
|
|
2,409
|
|
2,232
|
|
Total
loans
|
48,833
|
|
48,151
|
|
46,725
|
|
|
48,494
|
|
45,905
|
|
|
|
|
|
|
|
|
Earning
assets
|
63,981
|
|
63,480
|
|
60,148
|
|
|
63,732
|
|
60,033
|
|
Total
assets
|
68,963
|
|
68,735
|
|
64,878
|
|
|
68,852
|
|
64,794
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
27,365
|
|
26,697
|
|
24,011
|
|
|
27,033
|
|
23,626
|
|
Interest-bearing
deposits
|
30,033
|
|
30,293
|
|
29,373
|
|
|
30,163
|
|
29,453
|
|
Total
deposits
|
57,398
|
|
56,990
|
|
53,384
|
|
|
57,196
|
|
53,079
|
|
|
|
|
|
|
|
|
Common shareholders'
equity
|
7,512
|
|
7,453
|
|
7,331
|
|
|
7,482
|
|
7,280
|
|
NET INTEREST
INCOME (fully taxable equivalent basis)
|
|
|
|
|
|
|
Net interest
income
|
$
|
422
|
|
$
|
414
|
|
$
|
417
|
|
|
$
|
836
|
|
$
|
828
|
|
Net interest
margin
|
2.65
|
%
|
2.64
|
%
|
2.78
|
%
|
|
2.65
|
%
|
2.78
|
%
|
CREDIT
QUALITY
|
|
|
|
|
|
|
Total nonperforming
assets
|
$
|
370
|
|
$
|
288
|
|
$
|
360
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90
days or more and still accruing
|
18
|
|
12
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
Net loan
charge-offs
|
18
|
|
8
|
|
9
|
|
|
$
|
26
|
|
$
|
21
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
618
|
|
601
|
|
591
|
|
|
|
|
Allowance for credit
losses on lending-related commitments
|
50
|
|
39
|
|
42
|
|
|
|
|
Total allowance for
credit losses
|
668
|
|
640
|
|
633
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.24
|
%
|
1.22
|
%
|
1.23
|
%
|
|
|
|
Net loan charge-offs
as a percentage of average total loans
|
0.15
|
|
0.07
|
|
0.08
|
|
|
0.11
|
%
|
0.09
|
%
|
Nonperforming assets
as a percentage of total loans and foreclosed property
|
0.74
|
|
0.59
|
|
0.75
|
|
|
|
|
Allowance for loan
losses as a percentage of total nonperforming loans
|
171
|
|
216
|
|
170
|
|
|
|
|
|
|
|
(a)
|
Basel III rules
became effective on January 1, 2015, with transitional provisions.
All prior period data is based on Basel I rules.
|
|
(b)
|
June 30, 2015 ratios
are estimated.
|
(c)
|
See Reconciliation of
Non-GAAP Financial Measures.
|
n/a - not
applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
June
30,
|
(in millions,
except share data)
|
2015
|
2015
|
2014
|
2014
|
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
ASSETS
|
|
|
|
|
Cash and due from
banks
|
$
|
1,148
|
|
$
|
1,170
|
|
$
|
1,026
|
|
$
|
1,226
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
4,817
|
|
4,792
|
|
5,045
|
|
2,668
|
|
Other short-term
investments
|
119
|
|
101
|
|
99
|
|
109
|
|
|
|
|
|
|
Investment securities
available-for-sale
|
8,267
|
|
8,214
|
|
8,116
|
|
9,534
|
|
Investment securities
held-to-maturity
|
1,952
|
|
1,871
|
|
1,935
|
|
—
|
|
|
|
|
|
|
Commercial
loans
|
32,723
|
|
32,091
|
|
31,520
|
|
30,986
|
|
Real estate
construction loans
|
1,795
|
|
1,917
|
|
1,955
|
|
1,939
|
|
Commercial mortgage
loans
|
8,674
|
|
8,558
|
|
8,604
|
|
8,747
|
|
Lease
financing
|
786
|
|
792
|
|
805
|
|
822
|
|
International
loans
|
1,420
|
|
1,433
|
|
1,496
|
|
1,352
|
|
Residential mortgage
loans
|
1,865
|
|
1,859
|
|
1,831
|
|
1,775
|
|
Consumer
loans
|
2,478
|
|
2,422
|
|
2,382
|
|
2,261
|
|
Total
loans
|
49,741
|
|
49,072
|
|
48,593
|
|
47,882
|
|
Less allowance for
loan losses
|
(618)
|
|
(601)
|
|
(594)
|
|
(591)
|
|
Net loans
|
49,123
|
|
48,471
|
|
47,999
|
|
47,291
|
|
|
|
|
|
|
Premises and
equipment
|
541
|
|
531
|
|
532
|
|
562
|
|
Accrued income and
other assets
|
3,978
|
|
4,183
|
|
4,434
|
|
3,933
|
|
Total
assets
|
$
|
69,945
|
|
$
|
69,333
|
|
$
|
69,186
|
|
$
|
65,323
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Noninterest-bearing
deposits
|
$
|
28,167
|
|
$
|
27,394
|
|
$
|
27,224
|
|
$
|
24,774
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
23,786
|
|
23,727
|
|
23,954
|
|
22,555
|
|
Savings
deposits
|
1,841
|
|
1,817
|
|
1,752
|
|
1,731
|
|
Customer certificates
of deposit
|
4,367
|
|
4,497
|
|
4,421
|
|
4,962
|
|
Foreign office time
deposits
|
99
|
|
135
|
|
135
|
|
148
|
|
Total
interest-bearing deposits
|
30,093
|
|
30,176
|
|
30,262
|
|
29,396
|
|
Total
deposits
|
58,260
|
|
57,570
|
|
57,486
|
|
54,170
|
|
|
|
|
|
|
Short-term
borrowings
|
56
|
|
80
|
|
116
|
|
176
|
|
Accrued expenses and
other liabilities
|
1,265
|
|
1,500
|
|
1,507
|
|
990
|
|
Medium- and long-term
debt
|
2,841
|
|
2,683
|
|
2,675
|
|
2,618
|
|
Total
liabilities
|
62,422
|
|
61,833
|
|
61,784
|
|
57,954
|
|
|
|
|
|
|
Common stock - $5 par
value:
|
|
|
|
|
Authorized -
325,000,000 shares
|
|
|
|
|
Issued - 228,164,824
shares
|
1,141
|
|
1,141
|
|
1,141
|
|
1,141
|
|
Capital
surplus
|
2,158
|
|
2,188
|
|
2,188
|
|
2,175
|
|
Accumulated other
comprehensive loss
|
(396)
|
|
(370)
|
|
(412)
|
|
(304)
|
|
Retained
earnings
|
6,908
|
|
6,841
|
|
6,744
|
|
6,520
|
|
Less cost of common
stock in treasury - 49,803,515 shares at 6/30/15, 50,114,399 shares
at March 31, 2015, 49,146,225 shares at 12/31/14, and 47,194,492
shares at 6/30/14
|
(2,288)
|
|
(2,300)
|
|
(2,259)
|
|
(2,163)
|
|
Total shareholders'
equity
|
7,523
|
|
7,500
|
|
7,402
|
|
7,369
|
|
Total liabilities and
shareholders' equity
|
$
|
69,945
|
|
$
|
69,333
|
|
$
|
69,186
|
|
$
|
65,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
(in millions,
except per share data)
|
2015
|
2014
|
|
2015
|
2014
|
INTEREST
INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
389
|
|
$
|
385
|
|
|
$
|
767
|
|
$
|
761
|
|
Interest on
investment securities
|
52
|
|
53
|
|
|
105
|
|
108
|
|
Interest on
short-term investments
|
3
|
|
3
|
|
|
7
|
|
7
|
|
Total interest
income
|
444
|
|
441
|
|
|
879
|
|
876
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
Interest on
deposits
|
11
|
|
11
|
|
|
22
|
|
22
|
|
Interest on medium-
and long-term debt
|
12
|
|
14
|
|
|
23
|
|
28
|
|
Total interest
expense
|
23
|
|
25
|
|
|
45
|
|
50
|
|
Net interest
income
|
421
|
|
416
|
|
|
834
|
|
826
|
|
Provision for credit
losses
|
47
|
|
11
|
|
|
61
|
|
20
|
|
Net interest income
after provision for credit losses
|
374
|
|
405
|
|
|
773
|
|
806
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
Service charges on
deposit accounts
|
56
|
|
54
|
|
|
111
|
|
108
|
|
Fiduciary
income
|
48
|
|
45
|
|
|
95
|
|
89
|
|
Commercial lending
fees
|
22
|
|
23
|
|
|
47
|
|
43
|
|
Card fees
|
72
|
|
22
|
|
|
139
|
|
45
|
|
Letter of credit
fees
|
13
|
|
15
|
|
|
26
|
|
29
|
|
Bank-owned life
insurance
|
10
|
|
11
|
|
|
19
|
|
20
|
|
Foreign exchange
income
|
9
|
|
12
|
|
|
19
|
|
21
|
|
Brokerage
fees
|
5
|
|
4
|
|
|
9
|
|
9
|
|
Net securities
(losses) gains
|
—
|
|
—
|
|
|
(2)
|
|
1
|
|
Other noninterest
income
|
26
|
|
34
|
|
|
53
|
|
63
|
|
Total noninterest
income
|
261
|
|
220
|
|
|
516
|
|
428
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
Salaries and benefits
expense
|
251
|
|
240
|
|
|
504
|
|
487
|
|
Net occupancy
expense
|
39
|
|
39
|
|
|
77
|
|
79
|
|
Equipment
expense
|
13
|
|
15
|
|
|
26
|
|
29
|
|
Outside processing
fee expense
|
85
|
|
30
|
|
|
162
|
|
58
|
|
Software
expense
|
24
|
|
25
|
|
|
47
|
|
47
|
|
Litigation-related
expense
|
(30)
|
|
3
|
|
|
(29)
|
|
6
|
|
FDIC insurance
expense
|
9
|
|
8
|
|
|
18
|
|
16
|
|
Advertising
expense
|
6
|
|
5
|
|
|
12
|
|
11
|
|
Other noninterest
expenses
|
39
|
|
39
|
|
|
78
|
|
77
|
|
Total noninterest
expenses
|
436
|
|
404
|
|
|
895
|
|
810
|
|
Income before income
taxes
|
199
|
|
221
|
|
|
394
|
|
424
|
|
Provision for income
taxes
|
64
|
|
70
|
|
|
125
|
|
134
|
|
NET
INCOME
|
135
|
|
151
|
|
|
269
|
|
290
|
|
Less income allocated
to participating securities
|
1
|
|
2
|
|
|
3
|
|
4
|
|
Net income
attributable to common shares
|
$
|
134
|
|
$
|
149
|
|
|
$
|
266
|
|
$
|
286
|
|
Earnings per common
share:
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
$
|
0.83
|
|
|
$
|
1.51
|
|
$
|
1.59
|
|
Diluted
|
0.73
|
|
0.80
|
|
|
1.46
|
|
1.54
|
|
|
|
|
|
|
|
Comprehensive
income
|
109
|
|
172
|
|
|
285
|
|
377
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
37
|
|
36
|
|
|
73
|
|
71
|
|
Cash dividends
declared per common share
|
0.21
|
|
0.20
|
|
|
0.41
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
|
First
|
Fourth
|
Third
|
Second
|
|
Second Quarter
2015 Compared To:
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
First Quarter
2015
|
|
Second Quarter
2014
|
(in millions,
except per share data)
|
2015
|
2015
|
2014
|
2014
|
2014
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$
|
389
|
|
$
|
378
|
|
$
|
383
|
|
$
|
381
|
|
$
|
385
|
|
|
$
|
11
|
|
3
|
%
|
|
$
|
4
|
|
1
|
%
|
Interest on
investment securities
|
52
|
|
53
|
|
51
|
|
52
|
|
53
|
|
|
(1)
|
|
(1)
|
|
|
(1)
|
|
(2)
|
|
Interest on
short-term investments
|
3
|
|
4
|
|
4
|
|
3
|
|
3
|
|
|
(1)
|
|
(9)
|
|
|
—
|
|
—
|
|
Total interest
income
|
444
|
|
435
|
|
438
|
|
436
|
|
441
|
|
|
9
|
|
2
|
|
|
3
|
|
1
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits
|
11
|
|
11
|
|
12
|
|
11
|
|
11
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Interest on medium-
and long-term debt
|
12
|
|
11
|
|
11
|
|
11
|
|
14
|
|
|
1
|
|
5
|
|
|
(2)
|
|
(8)
|
|
Total interest
expense
|
23
|
|
22
|
|
23
|
|
22
|
|
25
|
|
|
1
|
|
2
|
|
|
(2)
|
|
(5)
|
|
Net interest
income
|
421
|
|
413
|
|
415
|
|
414
|
|
416
|
|
|
8
|
|
2
|
|
|
5
|
|
1
|
|
Provision for credit
losses
|
47
|
|
14
|
|
2
|
|
5
|
|
11
|
|
|
33
|
|
n/m
|
|
|
36
|
|
n/m
|
|
Net interest income
after provision for credit
losses
|
374
|
|
399
|
|
413
|
|
409
|
|
405
|
|
|
(25)
|
|
(6)
|
|
|
(31)
|
|
(8)
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
56
|
|
55
|
|
53
|
|
54
|
|
54
|
|
|
1
|
|
3
|
|
|
2
|
|
4
|
|
Fiduciary
income
|
48
|
|
47
|
|
47
|
|
44
|
|
45
|
|
|
1
|
|
1
|
|
|
3
|
|
6
|
|
Commercial lending
fees
|
22
|
|
25
|
|
29
|
|
26
|
|
23
|
|
|
(3)
|
|
(9)
|
|
|
(1)
|
|
(3)
|
|
Card fees
|
72
|
|
67
|
|
24
|
|
23
|
|
22
|
|
|
5
|
|
7
|
|
|
50
|
|
n/m
|
|
Letter of credit
fees
|
13
|
|
13
|
|
14
|
|
14
|
|
15
|
|
|
—
|
|
—
|
|
|
(2)
|
|
(8)
|
|
Bank-owned life
insurance
|
10
|
|
9
|
|
8
|
|
11
|
|
11
|
|
|
1
|
|
5
|
|
|
(1)
|
|
(10)
|
|
Foreign exchange
income
|
9
|
|
10
|
|
10
|
|
9
|
|
12
|
|
|
(1)
|
|
(11)
|
|
|
(3)
|
|
(24)
|
|
Brokerage
fees
|
5
|
|
4
|
|
4
|
|
4
|
|
4
|
|
|
1
|
|
5
|
|
|
1
|
|
9
|
|
Net securities
(losses) gains
|
—
|
|
(2)
|
|
—
|
|
(1)
|
|
—
|
|
|
2
|
|
66
|
|
|
—
|
|
—
|
|
Other noninterest
income
|
26
|
|
27
|
|
36
|
|
31
|
|
34
|
|
|
(1)
|
|
(4)
|
|
|
(8)
|
|
(24)
|
|
Total noninterest
income
|
261
|
|
255
|
|
225
|
|
215
|
|
220
|
|
|
6
|
|
2
|
|
|
41
|
|
18
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and benefits
expense
|
251
|
|
253
|
|
245
|
|
248
|
|
240
|
|
|
(2)
|
|
(1)
|
|
|
11
|
|
5
|
|
Net occupancy
expense
|
39
|
|
38
|
|
46
|
|
46
|
|
39
|
|
|
1
|
|
3
|
|
|
—
|
|
—
|
|
Equipment
expense
|
13
|
|
13
|
|
14
|
|
14
|
|
15
|
|
|
—
|
|
—
|
|
|
(2)
|
|
(12)
|
|
Outside processing
fee expense
|
85
|
|
77
|
|
33
|
|
31
|
|
30
|
|
|
8
|
|
12
|
|
|
55
|
|
n/m
|
|
Software
expense
|
24
|
|
23
|
|
23
|
|
25
|
|
25
|
|
|
1
|
|
1
|
|
|
(1)
|
|
(3)
|
|
Litigation-related
expense
|
(30)
|
|
1
|
|
—
|
|
(2)
|
|
3
|
|
|
(31)
|
|
n/m
|
|
|
(33)
|
|
n/m
|
|
FDIC insurance
expense
|
9
|
|
9
|
|
8
|
|
9
|
|
8
|
|
|
—
|
|
—
|
|
|
1
|
|
7
|
|
Advertising
expense
|
6
|
|
6
|
|
7
|
|
5
|
|
5
|
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
Gain on debt
redemption
|
—
|
|
—
|
|
—
|
|
(32)
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Other noninterest
expenses
|
39
|
|
39
|
|
43
|
|
53
|
|
39
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
Total noninterest
expenses
|
436
|
|
459
|
|
419
|
|
397
|
|
404
|
|
|
(23)
|
|
(5)
|
|
|
32
|
|
8
|
|
Income before income
taxes
|
199
|
|
195
|
|
219
|
|
227
|
|
221
|
|
|
4
|
|
3
|
|
|
(22)
|
|
(10)
|
|
Provision for income
taxes
|
64
|
|
61
|
|
70
|
|
73
|
|
70
|
|
|
3
|
|
6
|
|
|
(6)
|
|
(8)
|
|
NET
INCOME
|
135
|
|
134
|
|
149
|
|
154
|
|
151
|
|
|
1
|
|
1
|
|
|
(16)
|
|
(11)
|
|
Less income allocated
to participating securities
|
1
|
|
2
|
|
1
|
|
2
|
|
2
|
|
|
(1)
|
|
—
|
|
|
(1)
|
|
—
|
|
Net income
attributable to common shares
|
$
|
134
|
|
$
|
132
|
|
$
|
148
|
|
$
|
152
|
|
$
|
149
|
|
|
$
|
2
|
|
1
|
%
|
|
$
|
(15)
|
|
(11)%
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.76
|
|
$
|
0.75
|
|
$
|
0.83
|
|
$
|
0.85
|
|
$
|
0.83
|
|
|
$
|
0.01
|
|
1
|
%
|
|
$
|
(0.07)
|
|
(8)%
|
|
Diluted
|
0.73
|
|
0.73
|
|
0.80
|
|
0.82
|
|
0.80
|
|
|
—
|
|
—
|
|
|
(0.07)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
109
|
|
176
|
|
54
|
|
141
|
|
172
|
|
|
(67)
|
|
(38)
|
|
|
(63)
|
|
(37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared on common stock
|
37
|
|
36
|
|
36
|
|
36
|
|
36
|
|
|
1
|
|
5
|
|
|
1
|
|
3
|
|
Cash dividends
declared per common share
|
0.21
|
|
0.20
|
|
0.20
|
|
0.20
|
|
0.20
|
|
|
0.01
|
|
5
|
|
|
0.01
|
|
5
|
|
ANALYSIS OF THE
ALLOWANCE FOR LOAN LOSSES (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
601
|
|
$
|
594
|
|
|
$
|
592
|
|
$
|
591
|
|
$
|
594
|
|
|
|
|
|
|
|
|
Loan
charge-offs:
|
|
|
|
|
|
|
Commercial
|
22
|
|
19
|
|
|
8
|
|
13
|
|
19
|
|
Commercial
mortgage
|
2
|
|
—
|
|
|
2
|
|
7
|
|
5
|
|
Lease
financing
|
1
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
International
|
6
|
|
2
|
|
|
6
|
|
—
|
|
—
|
|
Residential
mortgage
|
1
|
|
—
|
|
|
1
|
|
1
|
|
—
|
|
Consumer
|
3
|
|
2
|
|
|
3
|
|
3
|
|
4
|
|
Total loan
charge-offs
|
35
|
|
23
|
|
|
20
|
|
24
|
|
28
|
|
|
|
|
|
|
|
|
Recoveries on loans
previously charged-off:
|
|
|
|
|
|
|
Commercial
|
10
|
|
9
|
|
|
6
|
|
6
|
|
11
|
|
Real estate
construction
|
1
|
|
—
|
|
|
2
|
|
1
|
|
1
|
|
Commercial
mortgage
|
5
|
|
3
|
|
|
10
|
|
12
|
|
3
|
|
Residential
mortgage
|
—
|
|
1
|
|
|
—
|
|
1
|
|
3
|
|
Consumer
|
1
|
|
2
|
|
|
1
|
|
1
|
|
1
|
|
Total
recoveries
|
17
|
|
15
|
|
|
19
|
|
21
|
|
19
|
|
Net loan
charge-offs
|
18
|
|
8
|
|
|
1
|
|
3
|
|
9
|
|
Provision for loan
losses
|
35
|
|
16
|
|
|
4
|
|
4
|
|
6
|
|
Foreign currency
translation adjustment
|
—
|
|
(1)
|
|
|
(1)
|
|
—
|
|
—
|
|
Balance at end of
period
|
$
|
618
|
|
$
|
601
|
|
|
$
|
594
|
|
$
|
592
|
|
$
|
591
|
|
|
|
|
|
|
|
|
Allowance for loan
losses as a percentage of total loans
|
1.24
|
%
|
1.22
|
%
|
|
1.22
|
%
|
1.24
|
%
|
1.23
|
%
|
|
|
|
|
|
|
|
Net loan charge-offs
as a percentage of average total loans
|
0.15
|
|
0.07
|
|
|
0.01
|
|
0.03
|
|
0.08
|
|
ANALYSIS OF THE
ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
39
|
|
$
|
41
|
|
|
$
|
43
|
|
$
|
42
|
|
$
|
37
|
|
Less: Charge-offs on
lending-related commitments (a)
|
1
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
Add: Provision for
credit losses on lending-related commitments
|
12
|
|
(2)
|
|
|
(2)
|
|
1
|
|
5
|
|
Balance at end of
period
|
$
|
50
|
|
$
|
39
|
|
|
$
|
41
|
|
$
|
43
|
|
$
|
42
|
|
|
|
|
|
|
|
|
Unfunded
lending-related commitments sold
|
$
|
12
|
|
$
|
1
|
|
|
$
|
—
|
|
$
|
9
|
|
$
|
—
|
|
|
|
|
(a)
|
Charge-offs result
from the sale of unfunded lending-related commitments.
|
NONPERFORMING
ASSETS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
(in
millions)
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
|
|
|
|
|
|
SUMMARY OF
NONPERFORMING ASSETS AND PAST DUE LOANS
|
|
|
Nonaccrual
loans:
|
|
|
|
|
|
|
Business
loans:
|
|
|
|
|
|
|
Commercial
|
$
|
186
|
|
$
|
113
|
|
|
$
|
109
|
|
$
|
93
|
|
$
|
72
|
|
Real estate
construction
|
1
|
|
1
|
|
|
2
|
|
18
|
|
19
|
|
Commercial
mortgage
|
77
|
|
82
|
|
|
95
|
|
144
|
|
156
|
|
Lease
financing
|
11
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
International
|
9
|
|
1
|
|
|
—
|
|
—
|
|
—
|
|
Total
nonaccrual business loans
|
284
|
|
197
|
|
|
206
|
|
255
|
|
247
|
|
Retail
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
35
|
|
37
|
|
|
36
|
|
42
|
|
45
|
|
Consumer:
|
|
|
|
|
|
|
Home
equity
|
29
|
|
31
|
|
|
30
|
|
31
|
|
32
|
|
Other
consumer
|
1
|
|
1
|
|
|
1
|
|
1
|
|
2
|
|
Total
consumer
|
30
|
|
32
|
|
|
31
|
|
32
|
|
34
|
|
Total
nonaccrual retail loans
|
65
|
|
69
|
|
|
67
|
|
74
|
|
79
|
|
Total nonaccrual
loans
|
349
|
|
266
|
|
|
273
|
|
329
|
|
326
|
|
Reduced-rate
loans
|
12
|
|
13
|
|
|
17
|
|
17
|
|
21
|
|
Total nonperforming
loans (a)
|
361
|
|
279
|
|
|
290
|
|
346
|
|
347
|
|
Foreclosed
property
|
9
|
|
9
|
|
|
10
|
|
11
|
|
13
|
|
Total nonperforming
assets (a)
|
$
|
370
|
|
$
|
288
|
|
|
$
|
300
|
|
$
|
357
|
|
$
|
360
|
|
|
|
|
|
|
|
|
Nonperforming loans
as a percentage of total loans
|
0.72
|
%
|
0.57
|
%
|
|
0.60
|
%
|
0.73
|
%
|
0.73
|
%
|
Nonperforming assets
as a percentage of total loans and
foreclosed property
|
0.74
|
|
0.59
|
|
|
0.62
|
|
0.75
|
|
0.75
|
|
Allowance for loan
losses as a percentage of total nonperforming loans
|
171
|
|
216
|
|
|
205
|
|
171
|
|
170
|
|
Loans past due 90
days or more and still accruing
|
$
|
18
|
|
$
|
12
|
|
|
$
|
5
|
|
$
|
13
|
|
$
|
7
|
|
|
|
|
|
|
|
|
ANALYSIS OF
NONACCRUAL LOANS
|
|
|
|
|
|
|
Nonaccrual loans at
beginning of period
|
$
|
266
|
|
$
|
273
|
|
|
$
|
329
|
|
$
|
326
|
|
$
|
317
|
|
Loans transferred to
nonaccrual (b)
|
145
|
|
39
|
|
|
41
|
|
54
|
|
53
|
|
Nonaccrual business
loan gross charge-offs (c)
|
(31)
|
|
(21)
|
|
|
(16)
|
|
(20)
|
|
(24)
|
|
Loans transferred to
accrual status (b)
|
—
|
|
(4)
|
|
|
(18)
|
|
—
|
|
—
|
|
Nonaccrual business
loans sold (d)
|
(1)
|
|
(2)
|
|
|
(24)
|
|
(3)
|
|
(6)
|
|
Payments/Other
(e)
|
(30)
|
|
(19)
|
|
|
(39)
|
|
(28)
|
|
(14)
|
|
Nonaccrual loans at
end of period
|
$
|
349
|
|
$
|
266
|
|
|
$
|
273
|
|
$
|
329
|
|
$
|
326
|
|
(a) Excludes loans
acquired with credit impairment.
|
(b) Based on an
analysis of nonaccrual loans with book balances greater than $2
million.
|
(c) Analysis of gross
loan charge-offs:
|
|
|
|
|
|
|
Nonaccrual business loans
|
$
|
31
|
|
$
|
21
|
|
|
$
|
16
|
|
$
|
20
|
|
$
|
24
|
|
Consumer and residential mortgage loans
|
4
|
|
2
|
|
|
4
|
|
4
|
|
4
|
|
Total gross
loan charge-offs
|
$
|
35
|
|
$
|
23
|
|
|
$
|
20
|
|
$
|
24
|
|
$
|
28
|
|
(d) Analysis of loans
sold:
|
|
|
|
|
|
|
Nonaccrual business loans
|
$
|
1
|
|
$
|
2
|
|
|
$
|
24
|
|
$
|
3
|
|
$
|
6
|
|
Performing criticized loans
|
—
|
|
7
|
|
|
5
|
|
—
|
|
8
|
|
Total
criticized loans sold
|
$
|
1
|
|
$
|
9
|
|
|
$
|
29
|
|
$
|
3
|
|
$
|
14
|
|
(e) Includes net
changes related to nonaccrual loans with balances less than $2
million, payments on nonaccrual loans with book balances greater
than $2 million and transfers of nonaccrual loans to foreclosed
property. Excludes business loan gross charge-offs and business
nonaccrual loans sold.
|
ANALYSIS OF NET
INTEREST INCOME (FTE) (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
2015
|
|
June 30,
2014
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,442
|
|
$
|
478
|
|
3.06
|
%
|
|
$
|
29,130
|
|
$
|
453
|
|
3.13
|
%
|
Real estate
construction loans
|
1,872
|
|
32
|
|
3.43
|
|
|
1,871
|
|
32
|
|
3.42
|
|
Commercial mortgage
loans
|
8,627
|
|
146
|
|
3.41
|
|
|
8,759
|
|
170
|
|
3.92
|
|
Lease
financing
|
796
|
|
12
|
|
3.12
|
|
|
849
|
|
16
|
|
3.66
|
|
International
loans
|
1,482
|
|
27
|
|
3.69
|
|
|
1,315
|
|
24
|
|
3.66
|
|
Residential mortgage
loans
|
1,866
|
|
35
|
|
3.77
|
|
|
1,749
|
|
33
|
|
3.84
|
|
Consumer
loans
|
2,409
|
|
39
|
|
3.23
|
|
|
2,232
|
|
35
|
|
3.19
|
|
Total loans
(a)
|
48,494
|
|
769
|
|
3.19
|
|
|
45,905
|
|
763
|
|
3.35
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,064
|
|
100
|
|
2.24
|
|
|
8,954
|
|
107
|
|
2.39
|
|
Other investment
securities
|
858
|
|
5
|
|
1.13
|
|
|
369
|
|
1
|
|
0.44
|
|
Total investment
securities (b)
|
9,922
|
|
105
|
|
2.15
|
|
|
9,323
|
|
108
|
|
2.31
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
5,216
|
|
7
|
|
0.25
|
|
|
4,695
|
|
7
|
|
0.26
|
|
Other short-term
investments
|
100
|
|
—
|
|
0.75
|
|
|
110
|
|
—
|
|
0.63
|
|
Total earning
assets
|
63,732
|
|
881
|
|
2.79
|
|
|
60,033
|
|
878
|
|
2.94
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,034
|
|
|
|
|
917
|
|
|
|
Allowance for loan
losses
|
(607)
|
|
|
|
|
(602)
|
|
|
|
Accrued income and
other assets
|
4,693
|
|
|
|
|
4,446
|
|
|
|
Total
assets
|
$
|
68,852
|
|
|
|
|
$
|
64,794
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
23,809
|
|
13
|
|
0.11
|
|
|
$
|
22,279
|
|
12
|
|
0.11
|
|
Savings
deposits
|
1,810
|
|
—
|
|
0.02
|
|
|
1,721
|
|
—
|
|
0.03
|
|
Customer certificates
of deposit
|
4,423
|
|
8
|
|
0.37
|
|
|
5,075
|
|
9
|
|
0.36
|
|
Foreign office time
deposits
|
121
|
|
1
|
|
1.36
|
|
|
378
|
|
1
|
|
0.52
|
|
Total
interest-bearing deposits
|
30,163
|
|
22
|
|
0.14
|
|
|
29,453
|
|
22
|
|
0.15
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
94
|
|
—
|
|
0.05
|
|
|
198
|
|
—
|
|
0.03
|
|
Medium- and long-term
debt
|
2,675
|
|
23
|
|
1.78
|
|
|
3,270
|
|
28
|
|
1.64
|
|
Total
interest-bearing sources
|
32,932
|
|
45
|
|
0.28
|
|
|
32,921
|
|
50
|
|
0.30
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
27,033
|
|
|
|
|
23,626
|
|
|
|
Accrued expenses and
other liabilities
|
1,405
|
|
|
|
|
967
|
|
|
|
Total shareholders'
equity
|
7,482
|
|
|
|
|
7,280
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
68,852
|
|
|
|
|
$
|
64,794
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread (FTE)
|
|
$
|
836
|
|
2.51
|
|
|
|
$
|
828
|
|
2.64
|
|
|
|
|
|
|
|
|
|
FTE
adjustment
|
|
$
|
2
|
|
|
|
|
$
|
2
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.14
|
|
|
|
|
0.14
|
|
Net interest margin
(as a percentage of average earning assets) (FTE) (a)
|
|
|
2.65
|
%
|
|
|
|
2.78
|
%
|
|
|
(a)
|
Accretion of the
purchase discount on the acquired loan portfolio of $4 million and
$22 million in the six months ended June 30, 2015 and 2014,
respectively, increased the net interest margin by 1 basis point
and 7 basis points in each respective period.
|
(b)
|
Includes investment
securities available-for-sale and investment securities
held-to-maturity.
|
ANALYSIS OF NET
INTEREST INCOME (FTE) (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
June 30,
2015
|
|
March 31,
2015
|
|
June 30,
2014
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans
|
$
|
31,788
|
|
$
|
244
|
|
3.07
|
%
|
|
$
|
31,090
|
|
$
|
234
|
|
3.06
|
%
|
|
$
|
29,890
|
|
$
|
231
|
|
3.10
|
%
|
Real estate
construction loans
|
1,807
|
|
16
|
|
3.51
|
|
|
1,938
|
|
16
|
|
3.36
|
|
|
1,913
|
|
16
|
|
3.44
|
|
Commercial mortgage
loans
|
8,672
|
|
73
|
|
3.38
|
|
|
8,581
|
|
73
|
|
3.44
|
|
|
8,749
|
|
85
|
|
3.88
|
|
Lease
financing
|
795
|
|
6
|
|
3.19
|
|
|
797
|
|
6
|
|
3.05
|
|
|
850
|
|
7
|
|
3.26
|
|
International
loans
|
1,453
|
|
13
|
|
3.68
|
|
|
1,512
|
|
14
|
|
3.71
|
|
|
1,328
|
|
12
|
|
3.64
|
|
Residential mortgage
loans
|
1,877
|
|
18
|
|
3.78
|
|
|
1,856
|
|
17
|
|
3.76
|
|
|
1,773
|
|
17
|
|
3.82
|
|
Consumer
loans
|
2,441
|
|
20
|
|
3.25
|
|
|
2,377
|
|
19
|
|
3.21
|
|
|
2,222
|
|
18
|
|
3.22
|
|
Total loans
(a)
|
48,833
|
|
390
|
|
3.20
|
|
|
48,151
|
|
379
|
|
3.19
|
|
|
46,725
|
|
386
|
|
3.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage-backed
securities (b)
|
9,057
|
|
49
|
|
2.23
|
|
|
9,071
|
|
51
|
|
2.26
|
|
|
8,996
|
|
53
|
|
2.35
|
|
Other investment
securities
|
879
|
|
3
|
|
1.16
|
|
|
836
|
|
2
|
|
1.10
|
|
|
368
|
|
—
|
|
0.46
|
|
Total investment
securities (b)
|
9,936
|
|
52
|
|
2.13
|
|
|
9,907
|
|
53
|
|
2.16
|
|
|
9,364
|
|
53
|
|
2.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
5,110
|
|
3
|
|
0.25
|
|
|
5,323
|
|
4
|
|
0.26
|
|
|
3,949
|
|
3
|
|
0.25
|
|
Other short-term
investments
|
102
|
|
—
|
|
0.42
|
|
|
99
|
|
—
|
|
1.11
|
|
|
110
|
|
—
|
|
0.61
|
|
Total earning
assets
|
63,981
|
|
445
|
|
2.79
|
|
|
63,480
|
|
436
|
|
2.78
|
|
|
60,148
|
|
442
|
|
2.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
1,041
|
|
|
|
|
1,027
|
|
|
|
|
921
|
|
|
|
Allowance for loan
losses
|
(613)
|
|
|
|
|
(601)
|
|
|
|
|
(602)
|
|
|
|
Accrued income and
other assets
|
4,554
|
|
|
|
|
4,829
|
|
|
|
|
4,411
|
|
|
|
Total
assets
|
$
|
68,963
|
|
|
|
|
$
|
68,735
|
|
|
|
|
$
|
64,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and
interest-bearing checking deposits
|
$
|
23,659
|
|
6
|
|
0.11
|
|
|
$
|
23,960
|
|
6
|
|
0.11
|
|
|
$
|
22,296
|
|
6
|
|
0.10
|
|
Savings
deposits
|
1,834
|
|
—
|
|
0.02
|
|
|
1,786
|
|
—
|
|
0.03
|
|
|
1,742
|
|
—
|
|
0.03
|
|
Customer certificates
of deposit
|
4,422
|
|
4
|
|
0.37
|
|
|
4,423
|
|
4
|
|
0.37
|
|
|
5,041
|
|
5
|
|
0.36
|
|
Foreign office time
deposits
|
118
|
|
1
|
|
1.26
|
|
|
124
|
|
1
|
|
1.46
|
|
|
294
|
|
—
|
|
0.68
|
|
Total
interest-bearing deposits
|
30,033
|
|
11
|
|
0.14
|
|
|
30,293
|
|
11
|
|
0.15
|
|
|
29,373
|
|
11
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
78
|
|
—
|
|
0.04
|
|
|
110
|
|
—
|
|
0.06
|
|
|
210
|
|
—
|
|
0.03
|
|
Medium- and long-term
debt
|
2,661
|
|
12
|
|
1.83
|
|
|
2,686
|
|
11
|
|
1.73
|
|
|
2,998
|
|
14
|
|
1.77
|
|
Total
interest-bearing sources
|
32,772
|
|
23
|
|
0.28
|
|
|
33,089
|
|
22
|
|
0.27
|
|
|
32,581
|
|
25
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
27,365
|
|
|
|
|
26,697
|
|
|
|
|
24,011
|
|
|
|
Accrued expenses and
other liabilities
|
1,314
|
|
|
|
|
1,496
|
|
|
|
|
955
|
|
|
|
Total shareholders'
equity
|
7,512
|
|
|
|
|
7,453
|
|
|
|
|
7,331
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
68,963
|
|
|
|
|
$
|
68,735
|
|
|
|
|
$
|
64,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income/rate spread (FTE)
|
|
$
|
422
|
|
2.51
|
|
|
|
$
|
414
|
|
2.51
|
|
|
|
$
|
417
|
|
2.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE
adjustment
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing sources of funds
|
|
|
0.14
|
|
|
|
|
0.13
|
|
|
|
|
0.13
|
|
Net interest margin
(as a percentage of average earning assets) (FTE) (a)
|
|
|
2.65
|
%
|
|
|
|
2.64
|
%
|
|
|
|
2.78
|
%
|
|
|
(a)
|
Accretion of the
purchase discount on the acquired loan portfolio of $2 million, $2
million and $10 million in the second quarter 2015, the first
quarter 2015 and the second quarter 2014, respectively, increased
the net interest margin by 1 basis point, 2 basis points and 7
basis points in each respective period.
|
(b)
|
Includes investment
securities available-for-sale and investment securities
held-to-maturity.
|
CONSOLIDATED
STATISTICAL DATA (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
(in millions,
except per share data)
|
2015
|
2015
|
2014
|
2014
|
2014
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
Floor plan
|
$
|
3,840
|
|
$
|
3,544
|
|
$
|
3,790
|
|
$
|
3,183
|
|
$
|
3,576
|
|
Other
|
28,883
|
|
28,547
|
|
27,730
|
|
27,576
|
|
27,410
|
|
Total commercial
loans
|
32,723
|
|
32,091
|
|
31,520
|
|
30,759
|
|
30,986
|
|
Real estate
construction loans
|
1,795
|
|
1,917
|
|
1,955
|
|
1,992
|
|
1,939
|
|
Commercial mortgage
loans
|
8,674
|
|
8,558
|
|
8,604
|
|
8,603
|
|
8,747
|
|
Lease
financing
|
786
|
|
792
|
|
805
|
|
805
|
|
822
|
|
International
loans
|
1,420
|
|
1,433
|
|
1,496
|
|
1,429
|
|
1,352
|
|
Residential mortgage
loans
|
1,865
|
|
1,859
|
|
1,831
|
|
1,797
|
|
1,775
|
|
Consumer
loans:
|
|
|
|
|
|
Home
equity
|
1,682
|
|
1,678
|
|
1,658
|
|
1,634
|
|
1,574
|
|
Other
consumer
|
796
|
|
744
|
|
724
|
|
689
|
|
687
|
|
Total consumer
loans
|
2,478
|
|
2,422
|
|
2,382
|
|
2,323
|
|
2,261
|
|
Total
loans
|
$
|
49,741
|
|
$
|
49,072
|
|
$
|
48,593
|
|
$
|
47,708
|
|
$
|
47,882
|
|
|
|
|
|
|
|
Goodwill
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
$
|
635
|
|
Core deposit
intangible
|
11
|
|
12
|
|
13
|
|
14
|
|
14
|
|
Other
intangibles
|
4
|
|
3
|
|
2
|
|
1
|
|
1
|
|
|
|
|
|
|
|
Common equity tier 1
capital (a) (b)
|
7,280
|
|
7,230
|
|
n/a
|
|
n/a
|
|
n/a
|
|
Tier 1 common capital
(c)
|
n/a
|
|
n/a
|
|
7,169
|
|
7,105
|
|
7,027
|
|
Risk-weighted assets
(a) (b)
|
69,145
|
|
69,514
|
|
68,273
|
|
67,106
|
|
66,911
|
|
|
|
|
|
|
|
Common equity tier 1
risk-based capital ratio (a) (b)
|
10.53
|
%
|
10.40
|
%
|
n/a
|
|
n/a
|
|
n/a
|
|
Tier 1 common
risk-based capital ratio (c)
|
n/a
|
|
n/a
|
|
10.50
|
%
|
10.59
|
%
|
10.50
|
%
|
Tier 1 risk-based
capital ratio (a) (b)
|
10.53
|
|
10.40
|
|
10.50
|
|
10.59
|
|
10.50
|
|
Total risk-based
capital ratio (a) (b)
|
12.53
|
|
12.35
|
|
12.51
|
|
12.83
|
|
12.52
|
|
Leverage ratio (a)
(b)
|
10.57
|
|
10.53
|
|
10.35
|
|
10.79
|
|
10.93
|
|
Tangible common
equity ratio (c)
|
9.92
|
|
9.97
|
|
9.85
|
|
9.94
|
|
10.39
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
42.18
|
|
$
|
42.12
|
|
$
|
41.35
|
|
$
|
41.26
|
|
$
|
40.72
|
|
Tangible common
equity per share of common stock (c)
|
38.53
|
|
38.47
|
|
37.72
|
|
37.65
|
|
37.12
|
|
Market value per
share for the quarter:
|
|
|
|
|
|
High
|
53.45
|
|
47.94
|
|
50.14
|
|
52.72
|
|
52.60
|
|
Low
|
44.38
|
|
40.09
|
|
42.73
|
|
48.33
|
|
45.34
|
|
Close
|
51.32
|
|
45.13
|
|
46.84
|
|
49.86
|
|
50.16
|
|
|
|
|
|
|
|
Quarterly
ratios:
|
|
|
|
|
|
Return on average
common shareholders' equity
|
7.21
|
%
|
7.20
|
%
|
7.96
|
%
|
8.29
|
%
|
8.27
|
%
|
Return on average
assets
|
0.79
|
|
0.78
|
|
0.86
|
|
0.93
|
|
0.93
|
|
Efficiency ratio
(d)
|
63.68
|
|
68.50
|
|
65.26
|
|
62.87
|
|
63.35
|
|
|
|
|
|
|
|
Number of banking
centers
|
477
|
|
482
|
|
481
|
|
481
|
|
481
|
|
|
|
|
|
|
|
Number of employees -
full time equivalent
|
8,901
|
|
8,831
|
|
8,876
|
|
8,913
|
|
8,901
|
|
|
|
|
|
|
(a)
|
Basel III rules
became effective January 1, 2015, with transitional provisions. All
prior period data is based on Basel I rules.
|
(b)
|
June 30, 2015 amounts
and ratios are estimated.
|
(c)
|
See Reconciliation of
Non-GAAP Financial Measures.
|
(d)
|
Noninterest expenses
as a percentage of the sum of net interest income (FTE) and
noninterest income excluding net securities gains
(losses).
|
n/a - not
applicable.
|
PARENT COMPANY
ONLY BALANCE SHEETS (unaudited)
|
Comerica
Incorporated
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
June
30,
|
(in millions,
except share data)
|
2015
|
2014
|
2014
|
|
|
|
|
ASSETS
|
|
|
|
Cash and due from
subsidiary bank
|
$
|
7
|
|
$
|
—
|
|
$
|
5
|
|
Short-term
investments with subsidiary bank
|
861
|
|
1,133
|
|
796
|
|
Other short-term
investments
|
94
|
|
94
|
|
96
|
|
Investment in
subsidiaries, principally banks
|
7,500
|
|
7,411
|
|
7,369
|
|
Premises and
equipment
|
2
|
|
2
|
|
2
|
|
Other
assets
|
122
|
|
138
|
|
217
|
|
Total
assets
|
$
|
8,586
|
|
$
|
8,778
|
|
$
|
8,485
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Medium- and long-term
debt
|
$
|
903
|
|
$
|
1,208
|
|
$
|
958
|
|
Other
liabilities
|
160
|
|
168
|
|
158
|
|
Total
liabilities
|
1,063
|
|
1,376
|
|
1,116
|
|
|
|
|
|
Common stock - $5 par
value:
|
|
|
|
Authorized -
325,000,000 shares
|
|
|
|
Issued - 228,164,824
shares
|
1,141
|
|
1,141
|
|
1,141
|
|
Capital
surplus
|
2,158
|
|
2,188
|
|
2,175
|
|
Accumulated other
comprehensive loss
|
(396)
|
|
(412)
|
|
(304)
|
|
Retained
earnings
|
6,908
|
|
6,744
|
|
6,520
|
|
Less cost of common
stock in treasury - 49,803,515 shares at 6/30/15, 49,146,225 shares
at 12/31/14 and 47,194,492 shares at 6/30/14
|
(2,288)
|
|
(2,259)
|
|
(2,163)
|
|
Total
shareholders' equity
|
7,523
|
|
7,402
|
|
7,369
|
|
Total
liabilities and shareholders' equity
|
$
|
8,586
|
|
$
|
8,778
|
|
$
|
8,485
|
|
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
Common
Stock
|
|
Other
|
|
|
Total
|
|
Shares
|
|
Capital
|
Comprehensive
|
Retained
|
Treasury
|
Shareholders'
|
(in millions,
except per share data)
|
Outstanding
|
Amount
|
Surplus
|
Loss
|
Earnings
|
Stock
|
Equity
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2013
|
182.3
|
|
$
|
1,141
|
|
$
|
2,179
|
|
$
|
(391)
|
|
$
|
6,318
|
|
$
|
(2,097)
|
|
$
|
7,150
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
290
|
|
—
|
|
290
|
|
Other comprehensive
income, net of tax
|
—
|
|
—
|
|
—
|
|
87
|
|
—
|
|
—
|
|
87
|
|
Cash dividends
declared on common stock ($0.39 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(71)
|
|
—
|
|
(71)
|
|
Purchase of common
stock
|
(3.0)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(141)
|
|
(141)
|
|
Net issuance of
common stock under employee stock plans
|
1.6
|
|
—
|
|
(25)
|
|
—
|
|
(17)
|
|
74
|
|
32
|
|
Share-based
compensation
|
—
|
|
—
|
|
22
|
|
—
|
|
—
|
|
—
|
|
22
|
|
Other
|
—
|
|
—
|
|
(1)
|
|
—
|
|
—
|
|
1
|
|
—
|
|
BALANCE AT JUNE
30, 2014
|
180.9
|
|
$
|
1,141
|
|
$
|
2,175
|
|
$
|
(304)
|
|
$
|
6,520
|
|
$
|
(2,163)
|
|
$
|
7,369
|
|
|
|
|
|
|
|
|
|
BALANCE AT
DECEMBER 31, 2014
|
179.0
|
|
$
|
1,141
|
|
$
|
2,188
|
|
$
|
(412)
|
|
$
|
6,744
|
|
$
|
(2,259)
|
|
$
|
7,402
|
|
Net income
|
—
|
|
—
|
|
—
|
|
—
|
|
269
|
|
—
|
|
269
|
|
Other comprehensive
income, net of tax
|
—
|
|
—
|
|
—
|
|
16
|
|
—
|
|
—
|
|
16
|
|
Cash dividends
declared on common stock ($0.41 per share)
|
—
|
|
—
|
|
—
|
|
—
|
|
(73)
|
|
—
|
|
(73)
|
|
Purchase of common
stock
|
(2.5)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(115)
|
|
(115)
|
|
Purchase and
retirement of warrants
|
—
|
|
—
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
(10)
|
|
Net issuance of
common stock under employee stock plans
|
0.9
|
|
—
|
|
(23)
|
|
—
|
|
(10)
|
|
43
|
|
10
|
|
Net issuance of
common stock for warrants
|
1.0
|
|
—
|
|
(21)
|
|
—
|
|
(22)
|
|
43
|
|
—
|
|
Share-based
compensation
|
—
|
|
—
|
|
24
|
|
—
|
|
—
|
|
—
|
|
24
|
|
BALANCE AT JUNE
30, 2015
|
178.4
|
|
$
|
1,141
|
|
$
|
2,158
|
|
$
|
(396)
|
|
$
|
6,908
|
|
$
|
(2,288)
|
|
$
|
7,523
|
|
BUSINESS SEGMENT
FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
375
|
|
|
$
|
155
|
|
|
$
|
45
|
|
|
$
|
(155)
|
|
|
$
|
2
|
|
|
$
|
422
|
|
Provision for credit
losses
|
61
|
|
|
(8)
|
|
|
(9)
|
|
|
—
|
|
|
3
|
|
|
47
|
|
Noninterest
income
|
140
|
|
|
46
|
|
|
60
|
|
|
14
|
|
|
1
|
|
|
261
|
|
Noninterest
expenses
|
176
|
|
|
182
|
|
|
74
|
|
|
3
|
|
|
1
|
|
|
436
|
|
Provision (benefit)
for income taxes (FTE)
|
96
|
|
|
9
|
|
|
14
|
|
|
(54)
|
|
|
—
|
|
|
65
|
|
Net income
(loss)
|
$
|
182
|
|
|
$
|
18
|
|
|
$
|
26
|
|
|
$
|
(90)
|
|
|
$
|
(1)
|
|
|
$
|
135
|
|
Net loan charge-offs
(recoveries)
|
$
|
22
|
|
|
$
|
1
|
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
39,135
|
|
|
$
|
6,459
|
|
|
$
|
5,153
|
|
|
$
|
11,721
|
|
|
$
|
6,495
|
|
|
$
|
68,963
|
|
Loans
|
38,109
|
|
|
5,770
|
|
|
4,954
|
|
|
—
|
|
|
—
|
|
|
48,833
|
|
Deposits
|
30,229
|
|
|
22,747
|
|
|
4,060
|
|
|
93
|
|
|
269
|
|
|
57,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.87
|
%
|
|
0.30
|
%
|
|
2.01
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.79
|
%
|
Efficiency ratio
(b)
|
34.19
|
|
|
89.88
|
|
|
70.27
|
|
|
N/M
|
|
|
N/M
|
|
|
63.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
370
|
|
|
$
|
151
|
|
|
$
|
43
|
|
|
$
|
(152)
|
|
|
$
|
2
|
|
|
$
|
414
|
|
Provision for credit
losses
|
25
|
|
|
(8)
|
|
|
(1)
|
|
|
—
|
|
|
(2)
|
|
|
14
|
|
Noninterest
income
|
142
|
|
|
42
|
|
|
58
|
|
|
12
|
|
|
1
|
|
|
255
|
|
Noninterest
expenses
|
200
|
|
|
175
|
|
|
77
|
|
|
2
|
|
|
5
|
|
|
459
|
|
Provision (benefit)
for income taxes (FTE)
|
98
|
|
|
9
|
|
|
9
|
|
|
(53)
|
|
|
(1)
|
|
|
62
|
|
Net income
(loss)
|
$
|
189
|
|
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
(89)
|
|
|
$
|
1
|
|
|
$
|
134
|
|
Net loan charge-offs
(recoveries)
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
(1)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
38,654
|
|
|
$
|
6,368
|
|
|
$
|
5,029
|
|
|
$
|
12,137
|
|
|
$
|
6,547
|
|
|
$
|
68,735
|
|
Loans
|
37,623
|
|
|
5,694
|
|
|
4,834
|
|
|
—
|
|
|
—
|
|
|
48,151
|
|
Deposits
|
30,143
|
|
|
22,404
|
|
|
3,996
|
|
|
170
|
|
|
277
|
|
|
56,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.95
|
%
|
|
0.30
|
%
|
|
1.29
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.78
|
%
|
Efficiency ratio
(b)
|
39.20
|
|
|
90.57
|
|
|
74.58
|
|
|
N/M
|
|
|
N/M
|
|
|
68.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
375
|
|
|
$
|
152
|
|
|
$
|
44
|
|
|
$
|
(160)
|
|
|
6
|
|
|
$
|
417
|
|
Provision for credit
losses
|
35
|
|
|
(6)
|
|
|
(10)
|
|
|
—
|
|
|
(8)
|
|
|
11
|
|
Noninterest
income
|
100
|
|
|
41
|
|
|
62
|
|
|
15
|
|
|
2
|
|
|
220
|
|
Noninterest
expenses
|
143
|
|
|
174
|
|
|
76
|
|
|
2
|
|
|
9
|
|
|
404
|
|
Provision (benefit)
for income taxes (FTE)
|
100
|
|
|
9
|
|
|
15
|
|
|
(56)
|
|
|
3
|
|
|
71
|
|
Net income
(loss)
|
$
|
197
|
|
|
$
|
16
|
|
|
$
|
25
|
|
|
$
|
(91)
|
|
|
$
|
4
|
|
|
$
|
151
|
|
Net loan charge-offs
(recoveries)
|
$
|
9
|
|
|
$
|
3
|
|
|
$
|
(3)
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
37,305
|
|
|
$
|
6,222
|
|
|
$
|
4,987
|
|
|
$
|
11,055
|
|
|
$
|
5,309
|
|
|
$
|
64,878
|
|
Loans
|
36,367
|
|
|
5,554
|
|
|
4,804
|
|
|
—
|
|
|
—
|
|
|
46,725
|
|
Deposits
|
27,351
|
|
|
21,890
|
|
|
3,616
|
|
|
258
|
|
|
269
|
|
|
53,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
2.11
|
%
|
|
0.29
|
%
|
|
2.02
|
%
|
|
N/M
|
|
|
N/M
|
|
|
0.93
|
%
|
Efficiency ratio
(b)
|
30.07
|
|
|
90.06
|
|
|
72.11
|
|
|
N/M
|
|
|
N/M
|
|
|
63.35
|
|
|
|
(a)
|
Return on average
assets is calculated based on the greater of average assets or
average liabilities and attributed equity.
|
(b)
|
Noninterest expenses
as a percentage of the sum of net interest income (FTE) and
noninterest income excluding net securities gains.
|
FTE - Fully Taxable
Equivalent
|
N/M - Not
Meaningful
|
MARKET SEGMENT
FINANCIAL RESULTS (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
June 30, 2015
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
179
|
|
|
$
|
181
|
|
|
$
|
130
|
|
|
$
|
85
|
|
|
$
|
(153)
|
|
|
$
|
422
|
|
Provision for credit
losses
|
(13)
|
|
|
4
|
|
|
43
|
|
|
10
|
|
|
3
|
|
|
47
|
|
Noninterest
income
|
85
|
|
|
37
|
|
|
31
|
|
|
93
|
|
|
15
|
|
|
261
|
|
Noninterest
expenses
|
128
|
|
|
100
|
|
|
94
|
|
|
110
|
|
|
4
|
|
|
436
|
|
Provision (benefit)
for income taxes (FTE)
|
51
|
|
|
43
|
|
|
10
|
|
|
15
|
|
|
(54)
|
|
|
65
|
|
Net income
(loss)
|
$
|
98
|
|
|
$
|
71
|
|
|
$
|
14
|
|
|
$
|
43
|
|
|
$
|
(91)
|
|
|
$
|
135
|
|
Net loan charge-offs
(recoveries)
|
$
|
(2)
|
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,852
|
|
|
$
|
16,696
|
|
|
$
|
11,878
|
|
|
$
|
8,321
|
|
|
$
|
18,216
|
|
|
$
|
68,963
|
|
Loans
|
13,290
|
|
|
16,429
|
|
|
11,254
|
|
|
7,860
|
|
|
—
|
|
|
48,833
|
|
Deposits
|
21,706
|
|
|
17,275
|
|
|
10,959
|
|
|
7,096
|
|
|
362
|
|
|
57,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.73
|
%
|
|
1.54
|
%
|
|
0.46
|
%
|
|
2.05
|
%
|
|
N/M
|
|
|
0.79
|
%
|
Efficiency ratio
(b)
|
48.21
|
|
|
46.04
|
|
|
58.20
|
|
|
61.45
|
|
|
N/M
|
|
|
63.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
March 31, 2015
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
177
|
|
|
$
|
176
|
|
|
$
|
131
|
|
|
$
|
80
|
|
|
$
|
(150)
|
|
|
$
|
414
|
|
Provision for credit
losses
|
(8)
|
|
|
(3)
|
|
|
21
|
|
|
6
|
|
|
(2)
|
|
|
14
|
|
Noninterest
income
|
80
|
|
|
37
|
|
|
36
|
|
|
89
|
|
|
13
|
|
|
255
|
|
Noninterest
expenses
|
154
|
|
|
99
|
|
|
96
|
|
|
103
|
|
|
7
|
|
|
459
|
|
Provision (benefit)
for income taxes (FTE)
|
38
|
|
|
44
|
|
|
18
|
|
|
16
|
|
|
(54)
|
|
|
62
|
|
Net income
(loss)
|
$
|
73
|
|
|
$
|
73
|
|
|
$
|
32
|
|
|
$
|
44
|
|
|
$
|
(88)
|
|
|
$
|
134
|
|
Net loan
charge-offs
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,736
|
|
|
$
|
16,461
|
|
|
$
|
12,192
|
|
|
$
|
7,662
|
|
|
$
|
18,684
|
|
|
$
|
68,735
|
|
Loans
|
13,223
|
|
|
16,193
|
|
|
11,535
|
|
|
7,200
|
|
|
—
|
|
|
48,151
|
|
Deposits
|
21,710
|
|
|
16,837
|
|
|
11,010
|
|
|
6,986
|
|
|
447
|
|
|
56,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.30
|
%
|
|
1.63
|
%
|
|
1.01
|
%
|
|
2.26
|
%
|
|
N/M
|
|
|
0.78
|
%
|
Efficiency ratio
(b)
|
60.23
|
|
|
46.36
|
|
|
57.43
|
|
|
61.45
|
|
|
N/M
|
|
|
68.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Finance
|
|
|
Three Months Ended
June 30, 2014
|
Michigan
|
|
California
|
|
Texas
|
|
Markets
|
|
&
Other
|
|
Total
|
Earnings
summary:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(expense) (FTE)
|
$
|
182
|
|
|
$
|
176
|
|
|
$
|
137
|
|
|
$
|
76
|
|
|
$
|
(154)
|
|
|
$
|
417
|
|
Provision for credit
losses
|
(9)
|
|
|
14
|
|
|
22
|
|
|
(8)
|
|
|
(8)
|
|
|
11
|
|
Noninterest
income
|
89
|
|
|
38
|
|
|
35
|
|
|
41
|
|
|
17
|
|
|
220
|
|
Noninterest
expenses
|
159
|
|
|
100
|
|
|
89
|
|
|
45
|
|
|
11
|
|
|
404
|
|
Provision (benefit)
for income taxes (FTE)
|
44
|
|
|
37
|
|
|
22
|
|
|
21
|
|
|
(53)
|
|
|
71
|
|
Net income
(loss)
|
$
|
77
|
|
|
$
|
63
|
|
|
$
|
39
|
|
|
$
|
59
|
|
|
$
|
(87)
|
|
|
$
|
151
|
|
Net loan charge-offs
(recoveries)
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
(8)
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
13,851
|
|
|
$
|
15,721
|
|
|
$
|
11,661
|
|
|
$
|
7,281
|
|
|
$
|
16,364
|
|
|
$
|
64,878
|
|
Loans
|
13,482
|
|
|
15,439
|
|
|
10,966
|
|
|
6,838
|
|
|
—
|
|
|
46,725
|
|
Deposits
|
20,694
|
|
|
15,370
|
|
|
10,724
|
|
|
6,069
|
|
|
527
|
|
|
53,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical
data:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (a)
|
1.42
|
%
|
|
1.54
|
%
|
|
1.30
|
%
|
|
3.28
|
%
|
|
N/M
|
|
|
0.93
|
%
|
Efficiency ratio
(b)
|
58.67
|
|
|
46.64
|
|
|
51.67
|
|
|
38.73
|
|
|
N/M
|
|
|
63.35
|
|
|
|
(a)
|
Return on average
assets is calculated based on the greater of average assets or
average liabilities and attributed equity.
|
(b)
|
Noninterest expenses
as a percentage of the sum of net interest income (FTE) and
noninterest income excluding net securities gains.
|
FTE - Fully Taxable
Equivalent
|
N/M - Not
Meaningful
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES (unaudited)
|
Comerica
Incorporated and Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
(dollar amounts in
millions)
|
2015
|
2015
|
2014
|
2014
|
2014
|
|
|
|
|
|
|
Tier 1 Common
Capital Ratio:
|
|
|
|
|
|
Tier 1 and Tier 1
common capital (a)
|
n/a
|
|
n/a
|
|
$
|
7,169
|
|
$
|
7,105
|
|
$
|
7,027
|
|
|
|
|
|
|
|
Risk-weighted assets
(a)
|
n/a
|
|
n/a
|
|
68,269
|
|
67,102
|
|
66,909
|
|
|
|
|
|
|
|
Tier 1 and Tier 1
common risk-based capital ratio
|
n/a
|
|
n/a
|
|
10.50
|
%
|
10.59
|
%
|
10.50
|
%
|
|
|
|
|
|
|
Tangible Common
Equity Ratio:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,523
|
|
$
|
7,500
|
|
$
|
7,402
|
|
$
|
7,433
|
|
$
|
7,369
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
15
|
|
15
|
|
15
|
|
15
|
|
15
|
|
Tangible common
equity
|
$
|
6,873
|
|
$
|
6,850
|
|
$
|
6,752
|
|
$
|
6,783
|
|
$
|
6,719
|
|
|
|
|
|
|
|
Total
assets
|
$
|
69,945
|
|
$
|
69,333
|
|
$
|
69,186
|
|
$
|
68,883
|
|
$
|
65,323
|
|
Less:
|
|
|
|
|
|
Goodwill
|
635
|
|
635
|
|
635
|
|
635
|
|
635
|
|
Other intangible
assets
|
15
|
|
15
|
|
15
|
|
15
|
|
15
|
|
Tangible
assets
|
$
|
69,295
|
|
$
|
68,683
|
|
$
|
68,536
|
|
$
|
68,233
|
|
$
|
64,673
|
|
|
|
|
|
|
|
Common equity
ratio
|
10.76
|
%
|
10.82
|
%
|
10.70
|
%
|
10.79
|
%
|
11.28
|
%
|
Tangible common
equity ratio
|
9.92
|
|
9.97
|
|
9.85
|
|
9.94
|
|
10.39
|
|
|
|
|
|
|
|
Tangible Common
Equity per Share of Common Stock:
|
|
|
|
|
|
Common shareholders'
equity
|
$
|
7,523
|
|
$
|
7,500
|
|
$
|
7,402
|
|
$
|
7,433
|
|
$
|
7,369
|
|
Tangible common
equity
|
6,873
|
|
6,850
|
|
6,752
|
|
6,783
|
|
6,719
|
|
|
|
|
|
|
|
Shares of common
stock outstanding (in millions)
|
178
|
|
178
|
|
179
|
|
180
|
|
181
|
|
|
|
|
|
|
|
Common shareholders'
equity per share of common stock
|
$
|
42.18
|
|
$
|
42.12
|
|
$
|
41.35
|
|
$
|
41.26
|
|
$
|
40.72
|
|
Tangible common
equity per share of common stock
|
38.53
|
|
38.47
|
|
37.72
|
|
37.65
|
|
37.12
|
|
|
|
(a)
|
Tier 1 capital and
risk-weighted assets as defined by Basel I risk-based capital
rules.
|
n/a - not
applicable.
|
The Tier 1 common capital ratio removes preferred stock and
qualifying trust preferred securities from Tier 1 capital as
defined by and calculated in conformity with Basel I risk-based
capital rules in effect through December 31,
2014. Effective January 1,
2015, regulatory capital components and risk-weighted assets
are defined by and calculated in conformity with Basel III
risk-based capital rules. The tangible common equity ratio removes
preferred stock and the effect of intangible assets from capital
and the effect of intangible assets from total assets. Tangible
common equity per share of common stock removes the effect of
intangible assets from common shareholders equity per share of
common stock. Comerica believes these measurements are meaningful
measures of capital adequacy used by investors, regulators,
management and others to evaluate the adequacy of common equity and
to compare against other companies in the industry.
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SOURCE Comerica Incorporated