DALLAS, Jan. 16, 2015 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported full-year 2014 net income of $593 million, or $3.16 per diluted share, compared to $541 million, or $2.85 per diluted share for full-year 2013. Excluding the impact to 2013 results of an unfavorable jury verdict in a lender liability case, which decreased 2013 net income by $28 million, or 15 cents per share, 2014 net income increased $24 million, or 4 percent, and earnings per diluted share increased 16 cents, or 5 percent.
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Fourth quarter 2014 net income was $149 million, compared to $154 million for the third quarter 2014 and $117 million for the fourth quarter 2013. Earnings per diluted share were 80 cents for the fourth quarter 2014, compared to 82 cents for the third quarter 2014 and 62 cents for the fourth quarter 2013. Fourth quarter 2014 results reflected net charges of $3 million, after tax, or 2 cents per share, from certain actions taken during the period, compared to a net benefit of $5 million, after tax, or 3 cents per share, in the third quarter. Excluding the fourth quarter 2013 impact of the unfavorable jury verdict discussed above, fourth quarter 2014 net income increased $4 million, or 3 percent, and earnings per diluted share increased 3 cents, or 4 percent, compared to fourth quarter 2013.
(dollar
amounts
in
millions,
except
per
share
data) 4th Qtr '14 3rd Qtr '14 4th Qtr '13
--------- ----------- ----------- -----------
Net
interest
income
(a) $415 $414 $430
Provision
for
credit
losses 2 5 9
Noninterest
income 225 215 219
Noninterest
expenses 419 397 473 (b)
Provision
for
income
taxes 70 73 50
Net
income 149 154 117
Net
income
attributable
to
common
shares 148 152 115
Diluted
income
per
common
share 0.80 0.82 0.62
Average
diluted
shares
(in
millions) 184 185 186
Tier
1
common
capital
ratio
(d) 10.53% (c) 10.59% 10.64%
Basel
III
common
equity
Tier
1
capital
ratio
(d)
(e) 10.3 10.4 10.3
Tangible
common
equity
ratio
(d) 9.85 9.94 10.07
-------- ---- ---- -----
(a) Included accretion of the purchase
discount on the acquired loan
portfolio of $9 million, $3 million
and $23 million in the fourth quarter
2014, third quarter 2014 and fourth
quarter 2013, respectively.
(b) Included litigation-related expense of
$52 million in the fourth quarter 2013,
related to an unfavorable jury verdict
in a lender liability case.
(c) December 31, 2014 ratio is estimated.
(d) See Reconciliation of Non-GAAP
Financial Measures.
(e) Estimated ratios based on the
standardized approach in the final
rule, as fully phased-in, and
excluding most elements of accumulated
other comprehensive income (AOCI).
"Our 2014 net income increased 10 percent from a year ago, reflecting lower litigation-related expenses, a decrease in pension expense, and our continued drive for efficiency," said Ralph W. Babb Jr., chairman and chief executive officer. "Also, credit quality continued to be strong. We had modestly lower net interest income due to the decline in accretion as well as the impact of the continued low-rate environment and loan portfolio dynamics, all of which were predominantly offset by the contribution from loan growth. Our loan and deposit growth was solid in 2014, as average total loans increased $2.2 billion, or 5 percent, and average deposits were up $3.1 billion, or 6 percent, with increases in all business lines and all three of our major markets.
"As expected, fourth quarter average loans increased $202 million compared to the third quarter, the result of seasonality in National Dealer Services and Mortgage Banker Finance, as well as small increases in most other businesses. Average deposit growth was robust, increasing $2.6 billion compared to the third quarter. Revenue increased 2 percent with higher fee income generation. Our expenses reflected certain efficiency-related actions as well as seasonally higher technology and consulting expenses. Credit quality was strong. While we have not yet seen adverse trends materialize in our Energy portfolio, our methodology has appropriately considered the impact of the recent fall in oil and gas prices in our year-end allowance.
"While we continue to manage headwinds, including the low-rate environment as well as rising technology and regulatory expenses, we remain focused on the long term. We believe our diverse geographic footprint is well situated, and along with our relationship banking strategy should contribute to our long-term growth. We continue to be well positioned for rising rates and to benefit as the economy continues to improve."
Full-Year 2014 and Fourth Quarter Overview
Full-Year 2014 Compared to Full-Year 2013
-- Net income of $593 million for 2014 increased $52 million, or 10
percent, compared to 2013.
-- Average total loans increased $2.2 billion, or 5 percent, to $46.6
billion in 2014, primarily reflecting increases of $1.7 billion, or 6
percent, in commercial loans, $158 million, or 10 percent, in
residential mortgage loans and $117 million, or 5 percent, in consumer
loans.
-- Average total deposits increased $3.1 billion, or 6 percent, to $54.8
billion in 2014, reflecting increases of $2.6 billion, or 12 percent, in
noninterest-bearing deposits and $433 million, or 1 percent, in
interest-bearing deposits.
-- Net interest income of $1.7 billion for 2014 decreased by $17 million,
or 1 percent, primarily as a result of a $15 million decrease in
accretion of the purchase discount on the acquired loan portfolio. The
benefit from an increase in loan volume was offset by continued pressure
on yields from the low-rate environment and loan portfolio dynamics.
-- The provision for credit losses decreased $19 million to $27 million in
2014, compared to 2013. Net charge-offs were $25 million, or 0.05
percent of average loans, for 2014, compared to $73 million, or 0.16
percent of average loans, for 2013.
-- Noninterest income decreased $14 million, or 2 percent, to $868 million
in 2014. The decrease was primarily the result of a $19 million decrease
in noncustomer-driven income categories, with the largest decreases in
deferred compensation asset returns, securities trading income and
warrant income, partially offset by a $5 million increase in
customer-driven fees, largely driven by increases in fiduciary income
and card fees, partially offset by a decrease in letter of credit fees.
-- Noninterest expenses decreased $96 million, or 6 percent, to $1.6
billion in 2014, primarily reflecting decreases of $48 million in
litigation-related expenses and $47 million in pension expense.
-- Comerica repurchased approximately 5.2 million shares of common stock
during 2014 under the share repurchase program. Together with dividends
of $0.79 per share, $392 million was returned to shareholders.
Fourth Quarter 2014 Compared to Third Quarter 2014
-- Average total loans increased $202 million to $47.4 billion in the
fourth quarter 2014, primarily reflecting a $203 million increase in
commercial loans. The increase in commercial loans was primarily driven
by increases in National Dealer Services and Energy, partially offset by
a decrease in Mortgage Banker Finance.
-- Average total deposits increased $2.6 billion, or 5 percent, to $57.8
billion in the fourth quarter 2014, reflecting increases of $2.2 billion
in noninterest-bearing deposits and $368 million in interest-bearing
deposits. Average deposits increased in all lines of business and
markets.
-- Net interest income increased $1 million to $415 million in the fourth
quarter 2014, compared to $414 million in the third quarter 2014,
primarily reflecting a $6 million increase in accretion on the acquired
loan portfolio and higher loan volumes, partially offset by a $5 million
increase in negative residual value adjustments to assets in the leasing
portfolio.
-- The provision for credit losses was $2 million in the fourth quarter
2014, compared to $5 million in the third quarter 2014, reflecting
continued strong credit quality. Net charge-offs were $1 million, or
0.01 percent of average loans, in the fourth quarter 2014, compared to
$3 million, or 0.03 percent, in the third quarter 2014.
-- Noninterest income increased $10 million to $225 million in the fourth
quarter 2014, reflecting an increase in customer-driven fee income,
primarily due to an increase in customer derivative income.
-- Noninterest expenses increased $22 million to $419 million in the fourth
quarter 2014, primarily reflecting the impact of expenses of $4 million
in the fourth quarter related to certain efficiency-related actions
compared to an $8 million net benefit in the third quarter, as well as
an increase in technology-related contract labor and seasonal increases
in several other categories.
-- Capital remained solid at December 31, 2014, as evidenced by an
estimated Tier 1 common capital ratio of 10.53 percent and a tangible
common equity ratio of 9.85 percent.
-- Comerica repurchased approximately 1.3 million shares of common stock
during fourth quarter 2014 under the share repurchase program. Together
with dividends of $0.20 per share, $95 million was returned to
shareholders.
Net Interest Income
-------------------
(dollar amounts in
millions) 4th Qtr '14 3rd Qtr '14 4th Qtr '13
------------------ ----------- ----------- -----------
Net interest
income $415 $414 $430
Net interest
margin 2.57% 2.67% 2.86%
Selected average
balances:
Total earning
assets $64,453 $61,672 $59,924
Total loans 47,361 47,159 44,054
Total investment
securities 9,365 9,388 9,365
Federal Reserve
Bank deposits 7,463 4,877 6,260
Total deposits 57,760 55,163 52,769
Total noninterest-
bearing deposits 27,504 25,275 23,532
------------------ ------ ------ ------
-- Net interest income of $415 million in the fourth quarter 2014 increased
$1 million compared to the third quarter 2014.
-- Interest on loans increased $2 million, primarily reflecting a $6
million increase in accretion of the purchase discount on the
acquired loan portfolio and higher loan volumes, partially offset by
a $5 million increase in negative residual value adjustments to
assets in the leasing portfolio.
-- Interest on mortgage-backed investment securities decreased $1
million, primarily as a result of a decrease in yields.
-- An increase in Federal Reserve Bank deposits increased net interest
income by $1 million.
-- The net interest margin of 2.57 percent decreased 10 basis points
compared to the third quarter 2014. The decrease in net interest margin
reflected an increase in Federal Reserve Bank deposits (-10 basis
points), negative residual value adjustments to assets in the leasing
portfolio (-3 basis points) and a decrease in the yield on
mortgage-backed securities (-1 basis point), partially offset by an
increase in accretion of the purchase discount on the acquired loan
portfolio (+3 basis points) and an increase in interest received on
nonaccrual loans (+1 basis point).
-- Average earning assets increased $2.8 billion to $64.5 billion in the
fourth quarter 2014, compared to the third quarter 2014, primarily
reflecting an increase of $2.6 billion in Federal Reserve Bank deposits.
Noninterest Income
Noninterest income increased $10 million to $225 million for the fourth quarter 2014, compared to $215 million for the third quarter 2014. Customer-driven fee income increased $11 million and noncustomer-driven income was stable. The increase in customer-driven fee income primarily reflected increases in customer derivative income of $6 million (a component of other noninterest income) and commercial lending fees of $3 million.
Noninterest Expenses
Noninterest expenses increased $22 million to $419 million in the fourth quarter 2014 compared to $397 million in the third quarter 2014. The increase primarily reflected the impact of expenses of $4 million in the fourth quarter related to certain efficiency-related actions compared to a net benefit of $8 million from actions taken in the third quarter 2014, as well as a $5 million increase in technology-related contract labor expense and seasonal increases in consulting and advertising expenses. Actions taken in the fourth quarter were primarily associated with real estate optimization. Third quarter actions included the early redemption of debt, resulting in a $32 million gain, a $9 million contribution to the Comerica Charitable Foundation, and other charges totaling $15 million associated with real estate optimization and several other efficiency-related actions, which included $6 million in salaries and benefits expense (severance-related) and $5 million in occupancy expense.
Credit Quality
"Credit quality continued to be strong, with only 1 basis point of net charge-offs in the fourth quarter and 5 basis points for the full-year 2014. Nonaccrual loans are at the lowest level since 2007," said Babb. "This includes our Energy business, where our 30-plus years of expertise has been demonstrated by strong performance through a number of cycles. We have a robust Energy credit policy, and as of year-end 2014 less than 3 percent of the portfolio is classified as criticized, with no nonaccruals. Given that the significant decline in oil and gas prices has only materialized in the past couple of months and our customers are generally well hedged, we have not yet seen adverse trends in the portfolio. We continue to closely monitor the total portfolio, as well as the Energy sector, and any residual impacts on the Texas economy. Our methodology has appropriately considered these developments in our year-end allowance."
(dollar amounts in millions) 4th Qtr '14 3rd Qtr '14 4th Qtr '13
--------------------------- ----------- ----------- -----------
Net credit-related charge-offs $1 $3 $13
Net credit-related charge-offs/
Average total loans 0.01% 0.03% 0.12%
Provision for credit losses $2 $5 $9
Nonperforming loans (a) 290 346 374
Nonperforming assets (NPAs) (a) 300 357 383
NPAs/Total loans and foreclosed
property 0.62% 0.75% 0.84%
Loans past due 90 days or more and
still accruing $5 $13 $16
Allowance for loan losses 594 592 598
Allowance for credit losses on lending-
related commitments (b) 41 43 36
--- --- ---
Total allowance for credit losses 635 635 634
Allowance for loan losses/Period-end
total loans 1.22% 1.24% 1.32%
Allowance for loan losses/
Nonperforming loans 205 171 160
-------------------------- --- --- ---
(a) Excludes loans acquired with
credit impairment.
(b) Included in "Accrued expenses and
other liabilities" on the
consolidated balance sheets.
-- Nonaccrual loans decreased $56 million, to $273 million at December 31,
2014, compared to $329 million at September 30, 2014.
-- Criticized loans decreased $201 million, to $1.9 billion at December 31,
2014, compared to $2.1 billion at September 30, 2014.
-- During the fourth quarter 2014, $41 million of borrower relationships
over $2 million were transferred to nonaccrual status, a decrease of $13
million from the third quarter 2014.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $69.2 billion and $7.4 billion, respectively, at December 31, 2014, compared to $68.9 billion and $7.4 billion, respectively, at September 30, 2014.
There were approximately 179 million common shares outstanding at December 31, 2014. Combined with the dividend of $0.20 per share, share repurchases under the share repurchase program and dividends returned 63 percent of fourth quarter 2014 net income to shareholders.
Comerica's tangible common equity ratio was 9.85 percent at December 31, 2014, a decrease of 9 basis points from September 30, 2014. The estimated Tier 1 common capital ratio decreased 6 basis points, to 10.53 percent at December 31, 2014, from September 30, 2014. The estimated Tier 1 common ratio under fully phased-in Basel III capital rules and excluding most elements of AOCI was 10.3 percent percent at December 31, 2014.
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 typical
seasonality throughout the year and continued 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 $4 million to $6 million, and the impact of a continuing
low rate environment on asset yields, offset by earning asset growth.
-- Provision for credit losses higher, consistent with modest net
charge-offs and continued loan growth.
-- Noninterest income relatively stable, reflecting growth in fee income,
particularly card fees and fiduciary income, mostly offset by regulatory
impacts on letter of credit, derivative and warrant income.
-- Noninterest expenses higher, reflecting increases in technology,
regulatory and pension expenses, as well as typical inflationary
pressures, with continued focus on driving efficiencies for the long
term.
-- Income tax expense to approximate 33 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 December 31, 2014 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2014 results compared to third quarter 2014.
The following table presents net income (loss) by business segment.
(dollar amounts in
millions) 4th Qtr '14 3rd Qtr '14 4th Qtr '13
------------------ ----------- ----------- -----------
Business Bank $212 85% $210 91% $170 82%
Retail Bank 13 5 7 3 15 7
Wealth Management 24 10 13 6 24 11
----------------- --- --- --- --- --- ---
249 100% 230 100% 209 100%
Finance (100) (73) (92)
Other (a) - (3) -
-------- --- --- ---
Total $149 $154 $117
----- ---- ---- ----
(a) Includes items not directly
associated with the three
major business segments or
the Finance Division.
Business Bank
(dollar amounts in 4th Qtr 3rd Qtr 4th Qtr
millions) '14 '14 '13
------------------ -------- -------- --------
Net interest income (FTE) $387 $377 $387
Provision for credit
losses 10 (4) 24
Noninterest income 101 94 95
Noninterest expenses 148 152 198
Net income 212 210 170
Net credit-related
(recoveries) charge-
offs - (2) 6
Selected average
balances:
Assets 38,039 37,898 35,039
Loans 37,034 36,894 34,020
Deposits 30,925 28,841 26,873
-------- ------ ------ ------
-- Average loans increased $140 million, primarily reflecting increases in
National Dealer Services, Energy and Technology and Life Sciences,
partially offset by decreases in Mortgage Banker Finance and general
Middle Market.
-- Average deposits increased $2.1 billion, primarily reflecting increases
in noninterest-bearing deposits in almost all lines of business.
-- Net interest income increased $10 million, primarily due to an increase
in net funds transfer pricing (FTP) credits, largely due to the increase
in average deposits, and an increase in purchase accounting accretion,
partially offset by the impact of lower loan yields, in part due to a
negative leasing residual value adjustment.
-- The provision for credit losses increased $14 million, primarily due to
increases in Energy and Corporate Banking, partially offset by decreases
in Technology and Life Sciences and general Middle Market.
-- Noninterest income increased $7 million, primarily due to increases in
customer derivative income and commercial lending fees.
-- Noninterest expenses decreased $4 million, primarily due to a decrease
in allocated corporate overhead expenses due to certain actions taken in
the third quarter 2014, including a contribution to the Comerica
Charitable Foundation, charges associated with real estate optimization
and several other efficiency-related expenses.
Retail Bank
(dollar amounts in millions) 4th Qtr 3rd Qtr 4th Qtr
'14 '14 '13
--------------------------- ------- ------- -------
Net interest income (FTE) $151 $150 $150
Provision for credit losses (4) - (8)
Noninterest income 44 41 43
Noninterest expenses 179 181 178
Net income 13 7 15
Net credit-related charge-offs 3 - 4
Selected average balances:
Assets 6,145 6,117 5,997
Loans 5,475 5,452 5,323
Deposits 22,037 21,785 21,438
-------- ------ ------ ------
-- Average loans increased $23 million, primarily due to an increase in
consumer loans in Retail Banking.
-- Average deposits increased $252 million, primarily reflecting an
increase in noninterest-bearing deposits in both Retail Banking and
Small Business.
-- The provision for credit losses decreased $4 million, primarily due to
improvements in Small Business credit quality.
-- Noninterest income increased $3 million, primarily due to increases in
customer derivative income and income from the Corporation's third party
credit card provider.
-- Noninterest expenses decreased $2 million, primarily due to a decrease
in allocated corporate overhead expenses, largely for the same reasons
as described above in the Business Bank section, as well as a decrease
in salaries and benefit expense, partially offset by an increase in
charges associated with real estate optimization.
Wealth Management
(dollar amounts in millions) 4th Qtr 3rd Qtr 4th Qtr
'14 '14 '13
--------------------------- -------- -------- --------
Net interest income (FTE) $48 $47 $47
Provision for credit losses (9) 7 (9)
Noninterest income 64 63 61
Noninterest expenses 83 82 80
Net income 24 13 24
Net credit-related
(recoveries) charge-offs (2) 5 3
Selected average balances:
Assets 5,044 5,007 4,873
Loans 4,852 4,813 4,711
Deposits 4,330 4,155 3,933
-------- ----- ----- -----
-- Average loans increased $39 million, primarily due to an increase in
Private Banking.
-- Average deposits increased $175 million, primarily reflecting an
increase in interest-bearing deposits in Private Banking.
-- Net interest income increased $1 million, primarily due to an increase
in FTP credits, largely due to the increase in average deposits, and
higher loan yields.
-- The provision for credit losses decreased $16 million, primarily
reflecting continued strong credit quality.
-- Noninterest income increased $1 million, primarily due to small
increases in several categories.
-- Noninterest expenses increased $1 million, primarily due to small
increases in several categories, partially offset by a decrease in
allocated corporate overhead expenses, for the same reasons as described
above in the Business Bank section, as well as a decrease in salaries
and benefit expense, primarily due to the impact of efficiency-related
actions taken in the third quarter 2014.
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 December 31, 2014 and are presented on a fully taxable equivalent (FTE) basis.
The following table presents net income (loss) by market segment.
(dollar
amounts in
millions) 4th Qtr '14 3rd Qtr '14 4th Qtr '13
----------- ----------- ----------- -----------
Michigan $81 33% $68 29% $33 16%
California 83 33 63 28 76 36
Texas 38 15 40 17 53 25
Other
Markets 47 19 59 26 47 23
-------- --- --- --- --- --- ---
249 100% 230 100% 209 100%
Finance &
Other (a) (100) (76) (92)
---------- ---- --- ---
Total $149 $154 $117
----- ---- ---- ----
(a) Includes items not directly
associated with the
geographic markets.
-- Average loans increased $268 million and $180 million in California and
Texas, respectively, and decreased $106 million in Michigan. The
increase in California primarily reflected increases in Technology and
Life Sciences, Commercial Real Estate and National Dealer Services,
while the increase in Texas primarily reflected an increase in Energy.
The decrease in Michigan was primarily due to decreases in general
Middle Market and Corporate Banking, partially offset by an increase in
National Dealer Services.
-- Average deposits increased across all markets, including increases of
$1.7 billion in California, $316 million in Michigan and $192 million in
Texas. The increases were primarily in noninterest-bearing deposits,
partially offset by decreases in time deposits, in all markets.
-- Net interest income increased $10 million in California and $9 million
in Texas and decreased $6 million in Michigan. The increase in
California primarily reflected an increase in FTP credits, largely due
to the increase in average deposits, and the benefit from an increase in
average loans. The increase in Texas was primarily the result of an
increase in the accretion of the purchase discount on the acquired loan
portfolio and an increase in average loans. The decrease in Michigan
primarily reflected lower loan yields mostly attributed to a negative
leasing residual value adjustment.
-- The provision for credit losses decreased $24 million in California and
$11 million in Michigan. The decrease in California primarily reflected
decreases in Technology and Life Sciences and general Middle Market. The
decrease in Michigan primarily reflected decreases in Private Banking
and Commercial Real Estate, partially offset by an increase in Corporate
Banking. In Texas, the provision increased $15 million, primarily due to
an increase in Energy, partially offset by decreases in general Middle
Market and Technology and Life Sciences.
-- Noninterest income increased $5 million, $3 million and $1 million in
Michigan, Texas and California, respectively. The increase in Michigan
was primarily due to an increase in customer derivative income. The
increases in Texas and California reflected small increases in several
noninterest income categories.
-- Noninterest expenses decreased $9 million in Michigan and $1 million in
California and was unchanged in Texas. The decrease in Michigan was
primarily due to a decrease in allocated corporate overhead expenses,
for the same reasons as previously described in the Business Bank
section.
Michigan Market
(dollar amounts in 4th Qtr 3rd Qtr 4th Qtr
millions) '14 '14 '13
------------------ -------- -------- --------
Net interest income
(FTE) $173 $179 $187
Provision for credit
losses (19) (8) 5
Noninterest income 92 87 89
Noninterest expenses 157 166 218
Net income 81 68 33
Net credit-related
(recoveries) charge-
offs (5) 3 (4)
Selected average balances:
Assets 13,605 13,724 13,712
Loans 13,142 13,248 13,323
Deposits 21,530 21,214 20,501
-------- ------ ------ ------
California Market
(dollar amounts in 4th Qtr 3rd Qtr 4th Qtr
millions) '14 '14 '13
------------------ -------- -------- --------
Net interest income
(FTE) $192 $182 $176
Provision for credit
losses (10) 14 (6)
Noninterest income 38 37 37
Noninterest expenses 102 103 98
Net income 83 63 76
Net credit-related
charge-offs
(recoveries) 1 6 (2)
Selected average balances:
Assets 16,035 15,768 14,710
Loans 15,777 15,509 14,431
Deposits 18,028 16,350 15,219
-------- ------ ------ ------
Texas Market
(dollar amounts in 4th Qtr 3rd Qtr 4th Qtr
millions) '14 '14 '13
------------------ -------- -------- --------
Net interest income
(FTE) $139 $130 $147
Provision for credit
losses 18 3 5
Noninterest income 35 32 33
Noninterest expenses 95 95 91
Net income 38 40 53
Net credit-related
charge-offs 2 - 13
Selected average balances:
Assets 12,003 11,835 10,458
Loans 11,327 11,147 9,766
Deposits 10,825 10,633 10,536
-------- ------ ------ ------
Conference Call and Webcast
Comerica will host a conference call to review fourth quarter 2014 financial results at 8 a.m. CT Friday, January 16, 2015. Interested parties may access the conference call by calling (877) 523-5249 or (210) 591-1147 (event ID No. 51485794). The call and supplemental financial information, as well as a replay of the webcast, can also 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; volatility and disruptions in global capital and credit markets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers; operational difficulties, failure of technology infrastructure or information security incidents; 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; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; 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 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, 2013. 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 Years Ended
------------------ -----------
December 31, September 30, December 31, December 31,
(in millions, except per share data) 2014 2014 2013 2014 2013
----------------------------------- ---- ---- ---- ---- ----
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income $0.80 $0.82 $0.62 $3.16 $2.85
Cash dividends declared 0.20 0.20 0.17 0.79 0.68
Average diluted shares (in thousands) 183,728 185,401 186,166 185,474 186,927
------------------------------------ ------- ------- ------- ------- -------
KEY RATIOS
Return on average common shareholders' equity 7.96% 8.29% 6.66% 8.05% 7.76%
Return on average assets 0.86 0.93 0.72 0.89 0.85
Tier 1 common capital ratio (a) (b) 10.53 10.59 10.64
Tier 1 risk-based capital ratio (b) 10.53 10.59 10.64
Total risk-based capital ratio (b) 12.54 12.83 13.10
Leverage ratio (b) 10.44 10.79 10.77
Tangible common equity ratio (a) 9.85 9.94 10.07
------------------------------- ---- ---- -----
AVERAGE BALANCES
Commercial loans $30,391 $30,188 $27,683 $29,715 $27,971
Real estate construction loans 1,920 1,973 1,652 1,909 1,486
Commercial mortgage loans 8,609 8,698 8,714 8,706 9,060
Lease financing 818 823 838 834 847
International loans 1,455 1,417 1,303 1,376 1,275
Residential mortgage loans 1,821 1,792 1,679 1,778 1,620
Consumer loans 2,347 2,268 2,185 2,270 2,153
----- ----- ----- ----- -----
Total loans 47,361 47,159 44,054 46,588 44,412
Earning assets 64,453 61,672 59,924 61,560 59,091
Total assets 69,311 66,401 64,602 66,338 63,933
Noninterest-bearing deposits 27,504 25,275 23,532 25,019 22,379
Interest-bearing deposits 30,256 29,888 29,237 29,765 29,332
------ ------ ------ ------ ------
Total deposits 57,760 55,163 52,769 54,784 51,711
Common shareholders' equity 7,518 7,411 7,007 7,373 6,965
--------------------------- ----- ----- ----- ----- -----
NET INTEREST INCOME (fully taxable equivalent basis)
Net interest income $416 $415 $431 $1,659 $1,675
Net interest margin 2.57% 2.67% 2.86% 2.70% 2.84%
------------------- ---- ---- ---- ---- ----
CREDIT QUALITY
Total nonperforming assets (c) 300 357 383
Loans past due 90 days or more and still accruing 5 13 16
Net loan charge-offs 1 3 13 25 73
Allowance for loan losses 594 592 598
Allowance for credit losses on lending-related commitments 41 43 36
--- --- ---
Total allowance for credit losses 635 635 634
Allowance for loan losses as a percentage of total loans 1.22% 1.24% 1.32%
Net loan charge-offs as a percentage of average total loans (d) 0.01 0.03 0.12 0.05% 0.16%
Nonperforming assets as a percentage of total loans and
foreclosed property (d) 0.62 0.75 0.84
Allowance for loan losses as a percentage of total nonperforming
loans 205 171 160
---------------------------------------------------------------- --- --- ---
(a) See Reconciliation of Non-GAAP
Financial Measures.
(b) December 31, 2014 ratios are
estimated.
(c) Excludes loans acquired with
credit-impairment.
(d) Lending-related commitment
charge-offs were insignificant
in all periods presented.
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
December 31, September 30, December 31,
(in millions, except share data) 2014 2014 2013
------------------------------- ---- ---- ----
(unaudited) (unaudited)
ASSETS
Cash and due from banks $1,026 $1,039 $1,140
Interest-bearing deposits with banks 5,045 6,748 5,311
Other short-term investments 99 112 112
Investment securities available-for-sale 8,116 9,468 9,307
Investment securities held-to-maturity 1,935 - -
Commercial loans 31,520 30,759 28,815
Real estate construction loans 1,955 1,992 1,762
Commercial mortgage loans 8,604 8,603 8,787
Lease financing 805 805 845
International loans 1,496 1,429 1,327
Residential mortgage loans 1,831 1,797 1,697
Consumer loans 2,382 2,323 2,237
-------------- ----- ----- -----
Total loans 48,593 47,708 45,470
Less allowance for loan losses (594) (592) (598)
------------------------------ ---- ---- ----
Net loans 47,999 47,116 44,872
Premises and equipment 532 524 594
Accrued income and other assets 4,438 3,880 3,888
------------------------------- ----- ----- -----
Total assets $69,190 $68,887 $65,224
------------ ------- ------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $27,224 $27,490 $23,875
Money market and interest-bearing checking deposits 23,954 23,523 22,332
Savings deposits 1,752 1,753 1,673
Customer certificates of deposit 4,421 4,698 5,063
Foreign office time deposits 135 117 349
---------------------------- --- --- ---
Total interest-bearing deposits 30,262 30,091 29,417
------------------------------- ------ ------ ------
Total deposits 57,486 57,581 53,292
Short-term borrowings 116 202 253
Accrued expenses and other liabilities 1,507 1,002 986
Medium- and long-term debt 2,679 2,669 3,543
-------------------------- ----- ----- -----
Total liabilities 61,788 61,454 58,074
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares 1,141 1,141 1,141
Capital surplus 2,188 2,183 2,179
Accumulated other comprehensive loss (412) (317) (391)
Retained earnings 6,744 6,631 6,318
Less cost of common stock in treasury -49,146,225
shares at 12/31/14, 47,992,721 shares at 9/30/14 and
45,860,786 shares at 12/31/13 (2,259) (2,205) (2,097)
----------------------------------------------------- ------ ------ ------
Total shareholders' equity 7,402 7,433 7,150
-------------------------- ----- ----- -----
Total liabilities and shareholders' equity $69,190 $68,887 $65,224
------------------------------------------ ------- ------- -------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
Three Months Ended Years Ended
December 31, December 31,
------------ ------------
(in millions, except per share data) 2014 2013 2014 2013
----------------------------------- ---- ---- ---- ----
INTEREST INCOME
Interest and fees on loans $383 $397 $1,525 $1,556
Interest on investment securities 51 55 211 214
Interest on short-term investments 4 4 14 14
---------------------------------- --- --- --- ---
Total interest income 438 456 1,750 1,784
INTEREST EXPENSE
Interest on deposits 12 12 45 55
Interest on medium- and long-term debt 11 14 50 57
-------------------------------------- --- --- --- ---
Total interest expense 23 26 95 112
---------------------- --- --- --- ---
Net interest income 415 430 1,655 1,672
Provision for credit losses 2 9 27 46
--------------------------- --- --- --- ---
Net interest income after provision for credit losses 413 421 1,628 1,626
NONINTEREST INCOME
Service charges on deposit accounts 53 53 215 214
Fiduciary income 47 43 180 171
Commercial lending fees 29 28 98 99
Card fees 21 19 80 74
Letter of credit fees 14 15 57 64
Bank-owned life insurance 8 9 39 40
Foreign exchange income 10 9 40 36
Brokerage fees 4 4 17 17
Net securities losses - - - (1)
Other noninterest income 39 39 142 168
------------------------ --- --- --- ---
Total noninterest income 225 219 868 882
NONINTEREST EXPENSES
Salaries and benefits expense 245 258 980 1,009
Net occupancy expense 46 41 171 160
Equipment expense 14 15 57 60
Outside processing fee expense 33 30 122 119
Software expense 23 24 95 90
Litigation-related expense - 52 4 52
FDIC insurance expense 8 7 33 33
Advertising expense 7 3 23 21
Gain on debt redemption - - (32) (1)
Other noninterest expenses 43 43 173 179
-------------------------- --- --- --- ---
Total noninterest expenses 419 473 1,626 1,722
-------------------------- --- --- ----- -----
Income before income taxes 219 167 870 786
Provision for income taxes 70 50 277 245
-------------------------- --- --- --- ---
NET INCOME 149 117 593 541
Less income allocated to participating securities 1 2 7 8
------------------------------------------------- --- --- --- ---
Net income attributable to common shares $148 $115 $586 $533
---------------------------------------- ---- ---- ---- ----
Earnings per common share:
Basic $0.83 $0.64 $3.28 $2.92
Diluted 0.80 0.62 3.16 2.85
Comprehensive income 54 267 572 563
Cash dividends declared on common stock 36 31 143 126
Cash dividends declared per common share 0.20 0.17 0.79 0.68
---------------------------------------- ---- ---- ---- ----
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
Fourth Third Second First Fourth Fourth Quarter 2014 Compared To:
--------------------------------
Quarter Quarter Quarter Quarter Quarter Third Quarter 2014 Fourth Quarter 2013
(in millions, except per share data) 2014 2014 2014 2014 2013 Amount Percent Amount Percent
----------------------------------- ---- ---- ---- ---- ---- ------ ------- ------ -------
INTEREST INCOME
Interest and fees on loans $383 $381 $385 $376 $397 $2 - % $(14) (3)%
Interest on investment securities 51 52 53 55 55 (1) (2) (4) (8)
Interest on short-term investments 4 3 3 4 4 1 52 - -
---------------------------------- --- --- --- --- --- --- --- --- ---
Total interest income 438 436 441 435 456 2 1 (18) (4)
INTEREST EXPENSE
Interest on deposits 12 11 11 11 12 1 - - -
Interest on medium- and long-term debt 11 11 14 14 14 - - (3) (15)
-------------------------------------- --- --- --- --- --- --- --- --- ---
Total interest expense 23 22 25 25 26 1 - (3) (12)
---------------------- --- --- --- --- --- --- --- --- ---
Net interest income 415 414 416 410 430 1 1 (15) (3)
Provision for credit losses 2 5 11 9 9 (3) (55) (7) (77)
--------------------------- --- --- --- --- --- --- --- --- ---
Net interest income after provision 413 409 405 401 421 4 1 (8) (2)
for credit losses
NONINTEREST INCOME
Service charges on deposit accounts 53 54 54 54 53 (1) (3) - -
Fiduciary income 47 44 45 44 43 3 5 4 9
Commercial lending fees 29 26 23 20 28 3 13 1 6
Card fees 21 20 19 20 19 1 2 2 8
Letter of credit fees 14 14 15 14 15 - - (1) (10)
Bank-owned life insurance 8 11 11 9 9 (3) (13) (1) (1)
Foreign exchange income 10 9 12 9 9 1 2 1 6
Brokerage fees 4 4 4 5 4 - - - -
Net securities (losses) gains - (1) - 1 - 1 N/M - -
Other noninterest income 39 34 37 32 39 5 14 - -
------------------------ --- --- --- --- --- --- --- --- ---
Total noninterest income 225 215 220 208 219 10 5 6 3
NONINTEREST EXPENSES
Salaries and benefits expense 245 248 240 247 258 (3) (1) (13) (5)
Net occupancy expense 46 46 39 40 41 - - 5 11
Equipment expense 14 14 15 14 15 - - (1) (8)
Outside processing fee expense 33 31 30 28 30 2 4 3 7
Software expense 23 25 25 22 24 (2) (3) (1) (1)
Litigation-related expense - (2) 3 3 52 2 83 (52) N/M
FDIC insurance expense 8 9 8 8 7 (1) (4) 1 17
Advertising expense 7 5 5 6 3 2 30 4 N/M
Gain on debt redemption - (32) - - - 32 N/M - N/M
Other noninterest expenses 43 53 39 38 43 (10) (20) - -
-------------------------- --- --- --- --- --- --- --- --- ---
Total noninterest expenses 419 397 404 406 473 22 6 (54) (12)
-------------------------- --- --- --- --- --- --- --- --- ---
Income before income taxes 219 227 221 203 167 (8) (3) 52 32
Provision for income taxes 70 73 70 64 50 (3) (4) 20 40
-------------------------- --- --- --- --- --- --- --- --- ---
NET INCOME 149 154 151 139 117 (5) (3) 32 28
Less income allocated to participating securities 1 2 2 2 2 (1) N/M (1) N/M
------------------------------------------------- --- --- --- --- --- --- --- --- ---
Net income attributable to common shares $148 $152 $149 $137 $115 $(4) (3)% $33 28%
---------------------------------------- ---- ---- ---- ---- ---- --- --- --- ---
Earnings per common share:
Basic $0.83 $0.85 $0.83 $0.76 $0.64 $(0.02) (2)% $0.19 30%
Diluted 0.80 0.82 0.80 0.73 0.62 (0.02) (2) 0.18 29
Comprehensive income 54 141 172 205 267 (87) (61) (213) (80)
Cash dividends declared on common stock 36 36 36 35 31 - - 5 15
Cash dividends declared per common share 0.20 0.20 0.20 0.19 0.17 - - 0.03 18
---------------------------------------- ---- ---- ---- ---- ---- --- --- ---- ---
N/M - Not Meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries
2014 2013
---- ----
(in millions) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------------ ------- ------- ------- ------- -------
Balance at beginning of
period $592 $591 $594 $598 $604
Loan charge-offs:
Commercial 8 13 19 19 31
Commercial mortgage 2 7 5 8 5
International 6 - - - -
Residential mortgage 1 1 - - 1
Consumer 3 3 4 3 4
-------- --- --- --- --- ---
Total loan charge-offs 20 24 28 30 41
Recoveries on loans
previously charged-off:
Commercial 6 6 11 11 17
Real estate construction 2 1 1 - 3
Commercial mortgage 10 12 3 3 5
Lease financing - - - 2 -
Residential mortgage - 1 3 - 1
Consumer 1 1 1 2 2
-------- --- --- --- --- ---
Total recoveries 19 21 19 18 28
---------------- --- --- --- --- ---
Net loan charge-offs 1 3 9 12 13
Provision for loan losses 4 4 6 8 7
Foreign currency
translation adjustment (1) - - - -
----------------------- --- --- --- --- ---
Balance at end of period $594 $592 $591 $594 $598
------------------------ ---- ---- ---- ---- ----
Allowance for loan losses
as a percentage of total
loans 1.22% 1.24% 1.23% 1.28% 1.32%
Net loan charge-offs as
a percentage of average
total loans 0.01 0.03 0.08 0.10 0.12
------------------------ ---- ---- ---- ---- ----
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)
Comerica Incorporated and Subsidiaries
2014 2013
---- ----
(in millions) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------------ ------- ------- ------- ------- -------
Balance at beginning
of period $43 $42 $37 $36 $34
Add: Provision for
credit losses on
lending-related
commitments (2) 1 5 1 2
------------------ --- --- --- --- ---
Balance at end of
period $41 $43 $42 $37 $36
----------------- --- --- --- --- ---
Unfunded lending-
related commitments
sold $ - $9 $ - $ - $1
-------------------- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries
2014 2013
---- ----
(in millions) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
------------ ------- ------- ------- ------- -------
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial $109 $93 $72 $54 $81
Real estate construction 2 18 19 19 21
Commercial mortgage 95 144 156 162 156
International - - - - 4
--- --- --- --- ---
Total nonaccrual business
loans 206 255 247 235 262
Retail loans:
Residential mortgage 36 42 45 48 53
Consumer:
Home equity 30 31 32 32 33
Other consumer 1 1 2 2 2
-------------- --- --- --- --- ---
Total consumer 31 32 34 34 35
-------------- --- --- --- --- ---
Total nonaccrual retail loans 67 74 79 82 88
----------------------------- --- --- --- --- ---
Total nonaccrual loans 273 329 326 317 350
Reduced-rate loans 17 17 21 21 24
------------------ --- --- --- --- ---
Total nonperforming loans (a) 290 346 347 338 374
Foreclosed property 10 11 13 14 9
------------------- --- --- --- --- ---
Total nonperforming assets (a) $300 $357 $360 $352 $383
----------------------------- ---- ---- ---- ---- ----
Nonperforming loans as a
percentage of total loans 0.60% 0.73% 0.73% 0.73% 0.82%
Nonperforming assets as a
percentage of total loans and
foreclosed property 0.62 0.75 0.75 0.76 0.84
Allowance for loan losses as a
percentage of total
nonperforming loans 205 171 170 176 160
Loans past due 90 days or more
and still accruing $5 $13 $7 $10 $16
------------------------------ --- --- --- --- ---
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $329 $326 $317 $350 $437
Loans transferred to
nonaccrual (b) 41 54 53 19 23
Nonaccrual business loan gross
charge-offs (c) (16) (20) (24) (27) (33)
Loans transferred to accrual
status (d) (18) - - - -
Nonaccrual business loans sold
(d) (24) (3) (6) (3) (14)
Payments/Other (e) (39) (28) (14) (22) (63)
-------------------- --- --- --- --- ---
Nonaccrual loans at end of
period $273 $329 $326 $317 $350
-------------------------- ---- ---- ---- ---- ----
(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 $16 $20 $24 $27 $33
Performing criticized loans - - - - 3
Consumer and residential
mortgage loans 4 4 4 3 5
--- --- --- --- ---
Total gross loan charge-offs $20 $24 $28 $30 $41
--- --- --- --- ---
(d) Analysis of loans sold:
Nonaccrual business loans $24 $3 $6 $3 $14
Performing criticized loans 5 - 8 6 22
--- --- --- --- ---
Total loans sold $29 $3 $14 $9 $36
--- --- --- --- ---
(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
Years Ended
-----------
December 31, 2014 December 31, 2013
----------------- -----------------
Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate
--------------------------- ------- -------- ---- ------- -------- ----
Commercial loans $29,715 $927 3.12% $27,971 $917 3.28%
Real estate construction loans 1,909 65 3.41 1,486 57 3.85
Commercial mortgage loans 8,706 327 3.75 9,060 372 4.11
Lease financing 834 19 2.33 847 27 3.23
International loans 1,376 50 3.65 1,275 48 3.74
Residential mortgage loans 1,778 68 3.82 1,620 66 4.09
Consumer loans 2,270 73 3.20 2,153 71 3.30
-------------- ----- --- ---- ----- --- ----
Total loans (a) 46,588 1,529 3.28 44,412 1,558 3.51
Mortgage-backed securities (b) 8,970 209 2.33 9,246 213 2.33
Other investment securities 380 2 0.45 391 2 0.48
--------------------------- --- --- ---- --- --- ----
Total investment securities (b) 9,350 211 2.26 9,637 215 2.25
Interest-bearing deposits with banks (c) 5,513 14 0.26 4,930 13 0.26
Other short-term investments 109 - 0.57 112 1 1.22
---------------------------- --- --- ---- --- --- ----
Total earning assets 61,560 1,754 2.85 59,091 1,787 3.03
Cash and due from banks 934 987
Allowance for loan losses (601) (622)
Accrued income and other assets 4,445 4,477
----- -----
Total assets $66,338 $63,933
------- -------
Money market and interest-bearing checking
deposits $22,891 24 0.11 $21,704 28 0.13
Savings deposits 1,744 1 0.03 1,657 1 0.03
Customer certificates of deposit 4,869 18 0.36 5,471 23 0.42
Foreign office time deposits 261 2 0.82 500 3 0.52
---------------------------- --- --- ---- --- --- ----
Total interest-bearing deposits 29,765 45 0.15 29,332 55 0.19
Short-term borrowings 200 - 0.04 211 - 0.07
Medium- and long-term debt 2,965 50 1.68 3,972 57 1.45
-------------------------- ----- --- ---- ----- --- ----
Total interest-bearing sources 32,930 95 0.29 33,515 112 0.33
Noninterest-bearing deposits 25,019 22,379
Accrued expenses and other liabilities 1,016 1,074
Total shareholders' equity 7,373 6,965
----- -----
Total liabilities and shareholders' equity $66,338 $63,933
------- -------
Net interest income/rate spread (FTE) $1,659 2.56 $1,675 2.70
------ ------
FTE adjustment $4 $3
Impact of net noninterest-bearing sources of
funds 0.14 0.14
-------------------------------------------- ---- ----
Net interest margin (as a percentage of average
earning assets) (FTE) (a) (c) 2.70% 2.84%
----------------------------------------------- ---- ----
(a) Accretion of the purchase
discount on the acquired loan
portfolio of $34 million and
$49 million in 2014 and 2013,
respectively, increased the net
interest margin by 6 basis
points and 8 basis points in
each respective period.
(b) Includes investment securities
available-for-sale and
investment securities held-to-
maturity.
(c) Average balances deposited with
the Federal Reserve Bank
reduced the net interest margin
by 29 basis points and 23 basis
points in 2014 and 2013,
respectively.
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)
Comerica Incorporated and Subsidiaries
Three Months Ended
------------------
December 31, 2014 September 30, 2014 December 31, 2013
----------------- ------------------ -----------------
Average Average Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate Balance Interest Rate
--------------------------- ------- -------- ---- ------- -------- ---- ------- -------- ----
Commercial loans $30,391 $238 3.11% $30,188 $236 3.11% $27,683 $228 3.26%
Real estate construction loans 1,920 16 3.40 1,973 17 3.41 1,652 15 3.50
Commercial mortgage loans 8,609 81 3.70 8,698 76 3.45 8,714 101 4.62
Lease financing 818 (1) (0.43) 823 4 2.33 838 7 3.27
International loans 1,455 13 3.68 1,417 13 3.59 1,303 12 3.78
Residential mortgage loans 1,821 18 3.86 1,792 17 3.76 1,679 17 3.97
Consumer loans 2,347 19 3.20 2,268 19 3.24 2,185 18 3.24
-------------- ----- --- ---- ----- --- ---- ----- --- ----
Total loans (a) 47,361 384 3.22 47,159 382 3.22 44,054 398 3.58
Mortgage-backed securities (b) 8,954 50 2.27 9,020 52 2.29 8,969 55 2.46
Other investment securities 411 1 0.49 368 - 0.43 396 - 0.45
--------------------------- --- --- ---- --- --- ---- --- --- ----
Total investment securities (b) 9,365 51 2.19 9,388 52 2.22 9,365 55 2.37
Interest-bearing deposits with banks (c) 7,622 4 0.26 5,015 3 0.25 6,400 4 0.26
Other short-term investments 105 - 0.48 110 - 0.54 105 - 0.69
---------------------------- --- --- ---- --- --- ---- --- --- ----
Total earning assets 64,453 439 2.71 61,672 437 2.82 59,924 457 3.03
Cash and due from banks 937 963 970
Allowance for loan losses (597) (601) (609)
Accrued income and other assets 4,518 4,367 4,317
----- ----- -----
Total assets $69,311 $66,401 $64,602
------- ------- -------
Money market and interest-bearing checking
deposits $23,841 7 0.11 $23,146 6 0.11 $22,030 6 0.12
Savings deposits 1,771 - 0.03 1,759 - 0.03 1,667 - 0.03
Customer certificates of deposit 4,510 4 0.37 4,824 4 0.36 5,078 5 0.38
Foreign office time deposits 134 1 1.74 159 1 1.43 462 1 0.47
---------------------------- --- --- ---- --- --- ---- --- --- ----
Total interest-bearing deposits 30,256 12 0.15 29,888 11 0.15 29,237 12 0.17
Short-term borrowings 172 - 0.04 231 - 0.03 279 - 0.06
Medium- and long-term debt 2,678 11 1.71 2,652 11 1.75 3,563 14 1.53
-------------------------- ----- --- ---- ----- --- ---- ----- --- ----
Total interest-bearing sources 33,106 23 0.27 32,771 22 0.28 33,079 26 0.31
Noninterest-bearing deposits 27,504 25,275 23,532
Accrued expenses and other liabilities 1,183 944 984
Total shareholders' equity 7,518 7,411 7,007
----- ----- -----
Total liabilities and shareholders' equity $69,311 $66,401 $64,602
------- ------- -------
Net interest income/rate spread (FTE) $416 2.44 $415 2.54 $431 2.72
---- ---- ----
FTE adjustment $1 $1 $1
Impact of net noninterest-bearing sources of
funds 0.13 0.13 0.14
-------------------------------------------- ---- ---- ----
Net interest margin (as a percentage of average
earning assets) (FTE) (a) (c) 2.57% 2.67% 2.86%
----------------------------------------------- ---- ---- ----
(a) Accretion of the purchase
discount on the acquired loan
portfolio of $9 million, $3
million and $23 million in the
fourth and third quarters of
2014 and the fourth quarter of
2013, respectively, increased
the net interest margin by 5
basis points, 2 basis points
and 15 basis points in each
respective period.
(b) Includes investment securities
available-for-sale and
investment securities held-to-
maturity.
(c) Average balances deposited with
the Federal Reserve Bank
reduced the net interest margin
by 30 basis points and 21 basis
points in the fourth and third
quarters of 2014, respectively,
and by 31 basis points in the
fourth quarter of 2013.
CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries
December 31, September 30, June 30, March 31, December 31,
(in millions, except per share data) 2014 2014 2014 2014 2013
----------------------------------- ---- ---- ---- ---- ----
Commercial loans:
Floor plan $3,790 $3,183 $3,576 $3,437 $3,504
Other 27,730 27,576 27,410 26,337 25,311
----- ------ ------ ------ ------ ------
Total commercial loans 31,520 30,759 30,986 29,774 28,815
Real estate construction loans 1,955 1,992 1,939 1,847 1,762
Commercial mortgage loans 8,604 8,603 8,747 8,801 8,787
Lease financing 805 805 822 849 845
International loans 1,496 1,429 1,352 1,250 1,327
Residential mortgage loans 1,831 1,797 1,775 1,751 1,697
Consumer loans:
Home equity 1,658 1,634 1,574 1,533 1,517
Other consumer 724 689 687 684 720
-------------- --- --- --- --- ---
Total consumer loans 2,382 2,323 2,261 2,217 2,237
-------------------- ----- ----- ----- ----- -----
Total loans $48,593 $47,708 $47,882 $46,489 $45,470
----------- ------- ------- ------- ------- -------
Goodwill $635 $635 $635 $635 $635
Core deposit intangible 13 14 14 15 16
Other intangibles 2 1 1 1 1
Tier 1 common capital ratio (a) (b) 10.53% 10.59% 10.50% 10.58% 10.64%
Tier 1 risk-based capital ratio (a) 10.53 10.59 10.50 10.58 10.64
Total risk-based capital ratio (a) 12.54 12.83 12.52 13.00 13.10
Leverage ratio (a) 10.44 10.79 10.93 10.85 10.77
Tangible common equity ratio (b) 9.85 9.94 10.39 10.20 10.07
Common shareholders' equity per share of common stock $41.35 $41.26 $40.72 $40.09 $39.22
Tangible common equity per share of common stock (b) 37.72 37.65 37.12 36.50 35.64
Market value per share for the quarter:
High 50.14 52.72 52.60 53.50 48.69
Low 42.73 48.33 45.34 43.96 38.64
Close 46.84 49.86 50.16 51.80 47.54
Quarterly ratios:
Return on average common shareholders' equity 7.96% 8.29% 8.27% 7.68% 6.66%
Return on average assets 0.86 0.93 0.93 0.86 0.72
Efficiency ratio (c) 65.26 62.87 63.35 65.79 72.81
Number of banking centers 481 481 481 483 483
Number of employees - full time equivalent 8,876 8,913 8,901 8,907 8,948
------------------------------------------ ----- ----- ----- ----- -----
(a) December 31,
2014 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.
PARENT COMPANY ONLY BALANCE SHEETS (unaudited)
Comerica Incorporated
December 31, September 30, December 31,
(in millions, except share data) 2014 2014 2013
------------------------------- ---- ---- ----
ASSETS
Cash and due from subsidiary bank $ - $5 $31
Short-term investments with subsidiary bank 1,133 1,136 482
Other short-term investments 94 97 96
Investment in subsidiaries, principally banks 7,411 7,433 7,171
Premises and equipment 2 2 4
Other assets 142 134 139
------------ --- --- ---
Total assets $8,782 $8,807 $7,923
------------ ------ ------ ------
LIABILITIES AND SHAREHOLDERS' EQUITY
Medium- and long-term debt $1,212 $1,202 $617
Other liabilities 168 172 156
----------------- --- --- ---
Total liabilities 1,380 1,374 773
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares 1,141 1,141 1,141
Capital surplus 2,188 2,183 2,179
Accumulated other comprehensive loss (412) (317) (391)
Retained earnings 6,744 6,631 6,318
Less cost of common stock in treasury -49,146,225
shares at 12/31/14, 47,992,721 shares at 9/30/14 and
45,860,786 shares at 12/31/13 (2,259) (2,205) (2,097)
----------------------------------------------------- ------ ------ ------
Total shareholders' equity 7,402 7,433 7,150
-------------------------- ----- ----- -----
Total liabilities and shareholders' equity $8,782 $8,807 $7,923
------------------------------------------ ------ ------ ------
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, 2012 188.3 $1,141 $2,162 $(413) $5,928 $(1,879) $6,939
Net income - - - - 541 - 541
Other comprehensive income, net of tax - - - 22 - - 22
Cash dividends declared on common stock ($0.68 per share) - - - - (126) - (126)
Purchase of common stock (7.5) - - - - (291) (291)
Net issuance of common stock under employee stock plans 1.5 - (17) - (25) 72 30
Share-based compensation - - 35 - - - 35
Other - - (1) - - 1 -
----- --- --- --- --- --- --- ---
BALANCE AT DECEMBER 31, 2013 182.3 $1,141 $2,179 $(391) $6,318 $(2,097) $7,150
Net income - - - - 593 - 593
Other comprehensive loss, net of tax - - - (21) - - (21)
Cash dividends declared on common stock ($0.79 per share) - - - - (143) - (143)
Purchase of common stock (5.4) - - - - (260) (260)
Net issuance of common stock under employee stock plans 2.1 - (27) - (24) 96 45
Share-based compensation - - 38 - - - 38
Other - - (2) - - 2 -
BALANCE AT DECEMBER 31, 2014 179.0 $1,141 $2,188 $(412) $6,744 $(2,259) $7,402
---------------------------- ----- ------ ------ ----- ------ ------- ------
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Business Retail Wealth
Three Months Ended December 31, 2014 Bank Bank Management Finance Other Total
------------------------------------ ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $387 $151 $48 $(177) $7 $416
Provision for credit losses 10 (4) (9) - 5 2
Noninterest income 101 44 64 16 - 225
Noninterest expenses 148 179 83 3 6 419
Provision (benefit) for income taxes (FTE) 118 7 14 (64) (4) 71
--- --- --- --- ---
Net income (loss) $212 $13 $24 $(100) $ - $149
---- --- --- ----- --- --- ----
Net credit-related charge-offs $ - $3 $(2) - - $1
Selected average balances:
Assets $38,039 $6,145 $5,044 $12,222 $7,861 $69,311
Loans 37,034 5,475 4,852 - - 47,361
Deposits 30,925 22,037 4,330 195 273 57,760
Statistical data:
Return on average assets (a) 2.24% 0.22% 1.88% N/M N/M 0.86%
Efficiency ratio (b) 30.30 91.56 74.30 N/M N/M 65.26
----- ----- ----- --- --- -----
Business Retail Wealth
Three Months Ended September 30, 2014 Bank Bank Management Finance Other Total
------------------------------------- ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $377 $150 $47 $(166) $7 $415
Provision for credit losses (4) - 7 - 2 5
Noninterest income 94 41 63 15 2 215
Noninterest expenses 152 181 82 (29) 11 397
Provision (benefit) for income taxes (FTE) 113 3 8 (49) (1) 74
--- --- --- --- ---
Net income (loss) $210 $7 $13 $(73) $(3) $154
---- --- --- ---- --- ----
Net credit-related charge-offs $(2) $ - $5 - - $3
Selected average balances:
Assets $37,898 $6,117 $5,007 $11,026 $6,353 $66,401
Loans 36,894 5,452 4,813 - - 47,159
Deposits 28,841 21,785 4,155 128 254 55,163
Statistical data:
Return on average assets (a) 2.22% 0.12% 1.05% N/M N/M 0.93%
Efficiency ratio (b) 32.32 93.96 74.98 N/M N/M 62.87
------------------- ----- ----- ----- --- --- -----
Business Retail Wealth
Three Months Ended December 31, 2013 Bank Bank Management Finance Other Total
------------------------------------ ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $387 $150 $47 $(161) 8 $431
Provision for credit losses 24 (8) (9) - 2 9
Noninterest income 95 43 61 14 6 219
Noninterest expenses 198 178 80 2 15 473
Provision (benefit) for income taxes (FTE) 90 8 13 (57) (3) 51
--- --- --- --- --- ---
Net income (loss) $170 $15 $24 $(92) $ - $117
---- --- --- ---- --- --- ----
Net credit-related charge-offs $6 $4 $3 - - $13
Selected average balances:
Assets $35,039 $5,997 $4,873 $11,032 $7,661 $64,602
Loans 34,020 5,323 4,711 - - 44,054
Deposits 26,873 21,438 3,933 323 202 52,769
Statistical data:
Return on average assets (a) 1.94% 0.27% 1.93% N/M N/M 0.72%
Efficiency ratio (b) 40.97 92.27 74.64 N/M N/M 72.81
------------------- ----- ----- ----- --- --- -----
(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 December 31, 2014 Michigan California Texas Markets & Other Total
------------------------------------ -------- ---------- ----- ------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $173 $192 $139 $82 $(170) $416
Provision for credit losses (19) (10) 18 8 5 2
Noninterest income 92 38 35 44 16 225
Noninterest expenses 157 102 95 56 9 419
Provision (benefit) for income taxes (FTE) 46 55 23 15 (68) 71
--- --- --- --- --- ---
Net income (loss) $81 $83 $38 $47 $(100) $149
--- --- --- --- ----- ----
Net credit-related charge-offs (recoveries) $(5) $1 $2 $3 $ - $1
Selected average balances:
Assets $13,605 $16,035 $12,003 $7,585 $20,083 $69,311
Loans 13,142 15,777 11,327 7,115 - 47,361
Deposits 21,530 18,028 10,825 6,909 468 57,760
Statistical data:
Return on average assets (a) 1.44% 1.75% 1.27% 2.45% N/M 0.86%
Efficiency ratio (b) 59.28 44.27 54.31 44.47 N/M 65.26
------------------- ----- ----- ----- ----- --- -----
Other Finance
Three Months Ended September 30, 2014 Michigan California Texas Markets & Other Total
------------------------------------- -------- ---------- ----- ------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $179 $182 $130 $83 $(159) $415
Provision for credit losses (8) 14 3 (6) 2 5
Noninterest income 87 37 32 42 17 215
Noninterest expenses 166 103 95 51 (18) 397
Provision (benefit) for income taxes (FTE) 40 39 24 21 (50) 74
--- --- --- --- --- ---
Net income (loss) $68 $63 $40 $59 $(76) $154
--- --- --- --- ---- ----
Net credit-related charge-offs $3 $6 $ - $(6) $ - $3
Selected average balances:
Assets $13,724 $15,768 $11,835 $7,695 $17,379 $66,401
Loans 13,248 15,509 11,147 7,255 - 47,159
Deposits 21,214 16,350 10,633 6,584 382 55,163
Statistical data:
Return on average assets (a) 1.22% 1.46% 1.34% 3.08% N/M 0.93%
Efficiency ratio (b) 62.28 46.72 58.75 41.16 N/M 62.87
------------------- ----- ----- ----- ----- --- -----
Other Finance
Three Months Ended December 31, 2013 Michigan California Texas Markets & Other Total
------------------------------------ -------- ---------- ----- ------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $187 $176 $147 $74 $(153) $431
Provision for credit losses 5 (6) 5 3 2 9
Noninterest income 89 37 33 40 20 219
Noninterest expenses 218 98 91 49 17 473
Provision (benefit) for income taxes (FTE) 20 45 31 15 (60) 51
--- --- --- --- --- ---
Net income (loss) $33 $76 $53 $47 $(92) $117
--- --- --- --- ---- ----
Net credit-related charge-offs $(4) $(2) $13 $6 $ - $13
Selected average balances:
Assets $13,712 $14,710 $10,458 $7,029 $18,693 $64,602
Loans 13,323 14,431 9,766 6,534 - 44,054
Deposits 20,501 15,219 10,536 5,988 525 52,769
Statistical data:
Return on average assets (a) 0.62% 1.87% 1.79% 2.66% N/M 0.72%
Efficiency ratio (b) 79.04 46.12 50.84 42.32 N/M 72.81
------------------- ----- ----- ----- ----- --- -----
Return on average assets is
calculated based on the
greater of average assets or
average liabilities and
(a) attributed equity.
Noninterest expenses as a
percentage of the sum of net
interest income (FTE) and
noninterest income excluding
(b) net securities gains.
FTE - Fully Taxable Equivalent
N/M - Not Meaningful
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries
December 31, September 30, June 30, March 31, December 31,
(dollar amounts in millions) 2014 2014 2014 2014 2013
--------------------------- ---- ---- ---- ---- ----
Tier 1 Common Capital Ratio:
Tier 1 and Tier 1 common capital (a) (b) $7,168 $7,105 $7,027 $6,962 $6,895
Risk-weighted assets (a) (b) $68,101 67,106 66,911 65,788 64,825
--------------------------- ------- ------ ------ ------ ------
Tier 1 and Tier 1 common risk-based capital
ratio (b) 10.53% 10.59% 10.50% 10.58% 10.64%
Basel III Common Equity Tier 1 Capital Ratio:
Tier 1 common capital (b) $7,168 $7,105 $7,027 $6,962 $6,895
Basel III adjustments (c) - (1) (1) (2) (6)
------------------------ --- --- --- --- ---
Basel III common equity Tier 1 capital (c) 7,168 7,104 7,026 6,960 6,889
----------------------------------------- ----- ----- ----- ----- -----
Risk-weighted assets (a) (b) $68,101 $67,106 $66,911 $65,788 $64,825
Basel III adjustments (c) 1,751 1,492 1,594 1,590 1,754
----- ----- ----- ----- -----
Basel III risk-weighted assets (c) $69,852 $68,598 $68,505 $67,378 $66,579
--------------------------------- ------- ------- ------- ------- -------
Tier 1 common capital ratio (b) 10.5% 10.6% 10.5% 10.6% 10.6%
Basel III common equity Tier 1 capital ratio (c) 10.3 10.4 10.3 10.3 10.3
----------------------------------------------- ---- ---- ---- ---- ----
Tangible Common Equity Ratio:
Common shareholders' equity $7,402 $7,433 $7,369 $7,283 $7,150
Less:
Goodwill 635 635 635 635 635
Other intangible assets 15 15 15 16 17
--- --- --- --- ---
Tangible common equity $6,752 $6,783 $6,719 $6,632 $6,498
---------------------- ------ ------ ------ ------ ------
Total assets $69,190 $68,887 $65,325 $65,681 $65,224
Less:
Goodwill 635 635 635 635 635
Other intangible assets 15 15 15 16 17
--- --- --- --- ---
Tangible assets $68,540 $68,237 $64,675 $65,030 $64,572
--------------- ------- ------- ------- ------- -------
Common equity ratio 10.85% 10.79% 11.28% 11.09% 10.97%
Tangible common equity ratio 9.85 9.94 10.39 10.20 10.07
---------------------------- ---- ---- ----- ----- -----
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity $7,402 $7,433 $7,369 $7,283 $7,150
Tangible common equity 6,752 6,783 6,719 6,632 6,498
---------------------- ----- ----- ----- ----- -----
Shares of common stock outstanding (in millions) 179 180 181 182 182
----------------------------------------------- --- --- --- --- ---
Common shareholders' equity per share of common
stock $41.35 $41.26 $40.72 $40.09 $39.22
Tangible common equity per share of common stock 37.72 37.65 37.12 36.50 35.64
------------------------------------------------ ----- ----- ----- ----- -----
(a) Tier 1 capital and risk-weighted
assets as defined by regulation.
(b) December 31, 2014 Tier 1 capital
and risk-weighted assets are
estimated.
(c) Estimated ratios based on the
standardized approach in the
final rule for the U.S. adoption
of the Basel III regulatory
capital framework, as fully
phased-in, and excluding most
elements of AOCI.
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 bank regulations. The Basel III common equity Tier 1 capital ratio further adjusts Tier 1 common capital and risk-weighted assets to account for the final rule approved by U.S. banking regulators in July 2013 for the U.S. adoption of the Basel III regulatory capital framework. The final Basel III capital rules are effective January 1, 2015 for banking organizations subject to the standardized approach. 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
