EX-99.1 2 a2024q2pressrelease-ex991.htm EX-99.1 Document
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SECOND QUARTER 2024 NET INCOME OF $206 MILLION, $1.49 PER SHARE
Period-End Loan Growth and Continued Strong Credit Quality
Successful Execution of Expense Management and Fee Income Initiatives

“Today we reported second quarter earnings per share of $1.49, an increase of $0.51 over first quarter results," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. "Our focus on responsible growth drove an inflection in loan balances through quarter-end. While deposits remained pressured by persistently high rates, we grew customer-related interest-bearing deposits and maintained a favorable mix of noninterest-bearing balances. Fee income and expenses both improved quarter-over-quarter as we strive to balance strategic investments with efficiency, working towards positive operating leverage. Our proven approach to credit continued to be a competitive strength, resulting in net charge-offs of 9 basis points, below historical averages. Conservative capital management remained a priority with an estimated CET1 ratio of 11.55%, well above our 10% target.”
(dollar amounts in millions, except per share data)2nd Qtr '241st Qtr '242nd Qtr '23
FINANCIAL RESULTS
Net interest income $533 $548 $621 
Provision for credit losses— 14 33 
Noninterest income291 236 303 
Noninterest expenses555 603 535 
Pre-tax income269 167 356 
Provision for income taxes63 29 83 
Net income$206 $138 $273 
Diluted earnings per common share$1.49 $0.98 $2.01 
Average loans51,071 51,372 55,368 
Average deposits63,055 65,310 64,332 
Return on average assets (ROA)1.05 %0.66 %1.21 %
Return on average common shareholders' equity (ROE)14.78 9.33 19.38 
Net interest margin2.86 2.80 2.93 
Efficiency ratio (a)67.77 76.91 57.70 
Common equity Tier 1 capital ratio (b)11.55 11.48 10.31 
Tier 1 capital ratio (b)12.08 12.01 10.80 
(a)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
(b)June 30, 2024 ratios are estimated. See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.



Impact of Notable Items to Financial Results
The following table reconciles adjusted diluted earnings per common share, net income attributable to common shareholders and return ratios. See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.
(dollar amounts in millions, except per share data)2nd Qtr '241st Qtr '242nd Qtr '23
Diluted earnings per common share$1.49 $0.98 $2.01 
Net BSBY cessation hedging losses (a)
0.01 0.21 — 
FDIC special assessment (b)
0.02 0.09 — 
Modernization and expense recalibration initiatives (c)
0.01 0.01 0.04 
Adjusted diluted earnings per common share$1.53 $1.29 $2.05 
Net income attributable to common shareholders$200 $131 $266 
Net BSBY cessation hedging losses (a)
3 36 — 
FDIC special assessment (b)
3 16 — 
Modernization and expense recalibration initiatives (c)
2 1 7 
Income tax impact of above items(2)(13)(2)
Adjusted net income attributable to common shareholders$206 $171 $271 
ROA1.05 %0.66 %1.21 %
Adjusted ROA1.07 0.86 1.24 
ROE14.78 9.33 19.38 
Adjusted ROE15.18 12.22 19.72 
(a)The planned cessation of the Bloomberg Short-Term Bank Yield Index (BSBY) announced in November 2023 resulted in the de-designation of certain interest rate swaps requiring reclassification of amounts recognized in accumulated other comprehensive income (AOCI) into earnings. Settlement of interest payments and changes in fair value for each impacted swap are recorded as risk management hedging losses until the swap is re-designated.
(b)Additional FDIC insurance expense resulting from the FDIC Board of Directors’ November 2023 approval of a special assessment to recover the loss to the Deposit Insurance Fund following the failures of Silicon Valley Bank and Signature Bank.
(c)Related to certain initiatives to transform the retail banking delivery model, align corporate facilities and optimize technology platforms, as well as calibrate expenses to enhance earnings power while creating capacity for strategic and risk management initiatives.
Second Quarter 2024 Compared to First Quarter 2024 Overview
Balance sheet items discussed in terms of average balances unless otherwise noted.
Loans decreased $301 million to $51.1 billion.
•Decreases of $291 million in Equity Fund Services and $126 million in Wealth Management, partially offset by an increase of $145 million in Commercial Real Estate.
◦Period-end loans increased $1.0 billion, which included increases of $407 million in National Dealer Services, $366 million in Equity Fund Services and $175 million in Environmental Services, partially offset by a decrease of $214 million in Corporate Banking.
•Average yield on loans (including swaps) decreased 1 basis point to 6.32%.
Securities decreased $578 million to $15.8 billion, reflecting paydowns and an increase in average unrealized losses.
•Period-end unrealized losses on securities remained relatively flat at $3.0 billion.
Deposits decreased $2.3 billion to $63.1 billion.
•Interest-bearing and noninterest-bearing deposits decreased $1.2 billion and $1.1 billion, respectively.
◦Brokered time deposits decreased $1.6 billion, while decreases of $682 million in general Middle Market and $220 million in Corporate Banking were partially offset by a $206 million increase in Retail Banking.
•The average cost of interest-bearing deposits decreased 5 basis points to 323 basis points, reflecting the decline in brokered time deposits, partially offset by continued strategic growth in core interest-bearing deposits.
Short-term borrowings decreased $1.9 billion to $666 million, reflecting a reduction in Federal Home Loan Bank (FHLB) advances, while medium- and long-term debt was relatively stable at $7.1 billion.
•Total liquidity capacity at period-end totaled $41.4 billion, including cash, available liquidity through the FHLB and the Federal Reserve Bank (FRB) discount window, as well as the market value of unencumbered investment securities.


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Net interest income decreased $15 million to $533 million, and net interest margin increased 6 basis points to 2.86%.
•Decrease in net interest income driven by a decline in deposits held at the FRB, lower loan volume and the net impact of higher short-term rates, partially offset by lower brokered time deposits and FHLB advances.
•Improvement in net interest margin reflected a reduction in higher-cost funding sources, partially offset by lower deposits held at the FRB and the net impact of higher short-term rates.
Provision for credit losses decreased $14 million.
•The allowance for credit losses decreased $11 million to $717 million, reflecting changes in portfolio composition as well as continued improvement in the economic outlook.
•As a percentage of total loans, the allowance for credit losses was 1.38%, a decrease of 5 basis points.
Noninterest income increased $55 million to $291 million.
•Driven by a $42 million increase in risk management hedging income, as well as increases of $7 million each in capital markets and fiduciary income and a $4 million increase in brokerage fees, partially offset by a $5 million decrease in deferred compensation asset returns (offset in noninterest expenses).
◦The increase in risk management hedging income included a $39 million improvement related to BSBY cessation as well as a $3 million increase in price alignment income received for centrally cleared risk management positions.
Noninterest expenses decreased $48 million to $555 million.
•Decreases of $25 million in salaries and benefits expense, $17 million in FDIC insurance expense (primarily driven by special assessment) and $12 million in other noninterest expenses, partially offset by a $4 million increase in advertising.
◦Seasonal impacts to salaries and benefits expense included decreases of $19 million in annual stock-based compensation, $5 million in payroll taxes and $3 million in 401(k) expense, partially offset by a $2 million increase in staff insurance. Salaries and benefits expense also included increases of $4 million in severance costs and $3 million from annual merit increases, mostly offset by a $5 million decrease in deferred compensation expense (offset in other noninterest income).
◦Other noninterest expenses included decreases of $9 million in consulting expenses and $4 million in operational losses as well as $3 million in asset impairment costs included in the first quarter which did not repeat in the second quarter, partially offset by smaller increases in other categories.
Common equity Tier 1 capital ratio of 11.55% and a Tier 1 capital ratio of 12.08%.
See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.
•Declared dividends of $95 million on common stock and $5 million on preferred stock.
•Tangible common equity ratio was 6.49%.

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Net Interest Income
Balance sheet items presented and discussed in terms of average balances.
(dollar amounts in millions)2nd Qtr '241st Qtr '242nd Qtr '23
Net interest income$533 $548 $621 
Net interest margin2.86 %2.80 %2.93 %
Selected balances:
Total earning assets$71,829 $75,807 $82,311 
Total loans51,071 51,372 55,368 
Total investment securities15,750 16,328 17,865 
Federal Reserve Bank deposits4,474 7,526 8,409 
Total deposits63,055 65,310 64,332 
Total noninterest-bearing deposits25,357 26,408 30,559 
Short-term borrowings666 2,581 10,568 
Medium- and long-term debt7,082 6,903 7,073 
Net interest income decreased $15 million, and net interest margin increased 6 basis points, compared to first quarter 2024. Amounts shown in parentheses below represent the impacts to net interest income and net interest margin, respectively, with impacts of hedging program included with rate.
•Interest income on loans decreased $5 million and reduced net interest margin by 1 basis point, driven by lower loan balances (-$7 million, -2 basis points) and other portfolio dynamics (+$2 million, +1 basis point).
◦The net impact of change in rate on loan interest income was nominal during the quarter.
◦BSBY cessation negatively impacted net interest income and net interest margin by $3 million and 2 basis points for second quarter 2024, compared to a positive impact of $3 million and 1 basis point for first quarter 2024.
•Interest income on investment securities decreased $1 million.
•Interest income on short-term investments decreased $42 million and reduced net interest margin by 10 basis points, primarily reflecting a decrease of $3.1 billion in deposits with the Federal Reserve Bank.
•Interest expense on deposits decreased $12 million and improved net interest margin by 7 basis points, reflecting lower average interest-bearing deposit balances (+$16 million, +9 basis points), partially offset by higher rates (-$4 million, -2 basis points).
•Interest expense on debt decreased $21 million and improved net interest margin by 10 basis points, driven by a decrease of $1.9 billion in short-term FHLB advances (+$27 million, +14 basis points), partially offset by an increase of $179 million in medium- and long-term debt (-$3 million, -2 basis points) and higher rates (-$3 million, -2 basis points).
The net impact of higher rates to second quarter 2024 net interest income was a decrease of $7 million and a reduction of 4 basis points to net interest margin.
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Credit Quality
“Credit quality remained strong with net charge-offs of 9 basis points, below historical averages,” said Farmer. “Despite ongoing inflationary pressures and elevated interest rates, we saw lower criticized loans and a modest decline in our allowance for credit losses to 1.38% of total loans. We continue to incrementally monitor select portfolios with higher relative pressure, but feel overall metrics and trends remain manageable. Our proven approach to credit, coupled with our intentional portfolio diversification, continues to deliver strong results and positions us well for the future.”

(dollar amounts in millions)2nd Qtr '241st Qtr '242nd Qtr '23
Charge-offs$28 $21 $11 
Recoveries17 7 13 
Net charge-offs (recoveries) 11 14 (2)
Net charge-offs (recoveries)/Average total loans0.09 %0.10 %(0.01 %)
Provision for credit losses$— $14 $33 
Nonperforming loans and nonperforming assets (NPAs)226 217 186 
NPAs/Total loans and foreclosed property0.44 %0.43 %0.33 %
Loans past due 90 days or more and still accruing$11 $32 $9 
Allowance for loan losses686 691 684 
Allowance for credit losses on lending-related commitments (a)31 37 44 
Total allowance for credit losses717 728 728 
Allowance for credit losses/Period-end total loans1.38 %1.43 %1.31 %
Allowance for credit losses/Nonperforming loans3.2x3.4x3.9x
(a)    Included in accrued expenses and other liabilities on the Consolidated Balance Sheets.
•The allowance for credit losses totaled $717 million at June 30, 2024 and decreased by 5 basis points to 1.38% of total loans, reflecting changes in portfolio composition as well as continued improvement in the economic outlook.
•Criticized loans decreased $258 million to $2.4 billion, or 4.7% of total loans. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.
◦The decrease in criticized loans was primarily driven by general Middle Market.
•Nonperforming assets increased $9 million to $226 million, or 0.44% of total loans and foreclosed property, compared to 0.43% in first quarter 2024.
•Net charge-offs totaled $11 million, compared to net charge-offs of $14 million in first quarter 2024.
Strategic Lines of Business
Comerica's operations are strategically aligned into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. For a summary of business segment quarterly results, see the Business Segment Financial Results tables included later in this press release. From time to time, Comerica may make reclassifications among the segments to reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. The financial results provided are based on the internal business unit structures of Comerica and methodologies in effect at June 30, 2024. A discussion of business segment results will be included in Comerica’s Form 10-Q for the quarter ended June 30, 2024.
Conference Call and Webcast
Comerica will host a conference call and live webcast to review second quarter 2024 financial results at 7 a.m. CT Friday, July 19, 2024. Interested parties may access the conference call by calling (877) 484-6065 or (201) 689-8846. 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’s presentation may include forward-looking statements, such as descriptions of plans and objectives for future or past operations, products or services; forecasts of revenue, earnings or other measures of economic performance and profitability; and estimates of credit trends and stability.
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Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: the Commercial Bank, the Retail Bank and Wealth Management. Comerica is one of the 25 largest U.S. commercial bank financial holding companies and focuses on building relationships and helping people and businesses be successful. Comerica provides more than 380 banking centers across the country with locations in Arizona, California, Florida, Michigan and Texas. Founded 175 years ago in Detroit, Michigan, Comerica continues to expand into new regions, including its Southeast Market, based in North Carolina, and Mountain West Market in Colorado. Comerica has offices in 17 states and services 14 of the 15 largest U.S. metropolitan areas, as well as Canada and Mexico.
This press release contains (and Comerica’s related upcoming conference call and live webcast will discuss) 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 or in the investor relations portions of Comerica’s website, www.comerica.com. 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.
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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 “achieve, anticipate, aspire, assume, believe, can, commit, confident, continue, could, designed, enhances, estimate, expect, feel, forecast, forward, future, goal, grow, initiative, intend, look forward, maintain, may, might, mission, model, objective, opportunity, outcome, on track, outlook, plan, position, potential, project, propose, remain, seek, should, strategy, strive, target, trend, until, well-positioned, will, would” or similar expressions, as they relate to Comerica, or to economic, market or other environmental conditions 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 as well as 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 include credit risks (changes in customer behavior; unfavorable developments concerning credit quality; and declines or other changes in the businesses or industries of Comerica's customers); market risks (changes in monetary and fiscal policies; fluctuations in interest rates and their impact on deposit pricing; and transitions away from the Bloomberg Short-Term Bank Yield Index towards new interest rate benchmarks); liquidity risks (Comerica's ability to maintain adequate sources of funding and liquidity; reductions in Comerica's credit rating; and the interdependence of financial service companies and their soundness); technology risks (cybersecurity risks and heightened legislative and regulatory focus on cybersecurity and data privacy); operational risks (operational, systems or infrastructure failures; reliance on other companies to provide certain key components of business infrastructure; the impact of legal and regulatory proceedings or determinations; losses due to fraud; and controls and procedures failures); compliance risks (changes in regulation or oversight, or changes in Comerica’s status with respect to existing regulations or oversight; the effects of stringent capital requirements; and the impacts of future legislative, administrative or judicial changes to tax regulations); strategic risks (damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; the implementation of Comerica's strategies and business initiatives; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; and any future strategic acquisitions or divestitures); and other general risks (changes in general economic, political or industry conditions; negative effects from inflation; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events, including pandemics; physical or transition risks related to climate change; changes in accounting standards; the critical nature of Comerica's accounting policies, processes and management estimates; the volatility of Comerica’s stock price; and that an investment in Comerica’s equity securities is not insured or guaranteed by the FDIC). Comerica cautions that the foregoing list of factors is not all-inclusive. 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 14 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2023. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Media Contacts:Investor Contacts:
Nicole HoganKelly Gage
(214) 462-6657(833) 571-0486
Louis H. MoraLindsey Baird
(214) 462-6669(833) 571-0486
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CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries
Three Months EndedSix Months Ended
June 30,March 31,June 30,June 30,
(in millions, except per share data)20242024202320242023
PER COMMON SHARE AND COMMON STOCK DATA
Diluted earnings per common share$1.49 $0.98 $2.01 $2.47 $4.40 
Cash dividends declared0.71 0.71 0.71 1.42 1.42 
Average diluted shares (in thousands)133,763 133,369 132,356 133,565 132,455 
PERFORMANCE RATIOS
Return on average common shareholders' equity14.78 %9.33 %19.38 %12.00 %21.73 %
Return on average assets1.05 0.66 1.21 0.85 1.37 
Efficiency ratio (a)67.77 76.91 57.70 72.24 56.58 
CAPITAL
Common equity tier 1 capital (b), (c)$8,586 $8,469 $8,311 
Tier 1 capital (b), (c)8,980 8,863 8,705 
Risk-weighted assets (b)74,338 73,794 80,624 
Common equity tier 1 capital ratio (b), (c)11.55 %11.48 %10.31 %
Tier 1 capital ratio (b), (c)12.08 12.01 10.80 
Total capital ratio (b)14.02 13.98 12.79 
Leverage ratio (b)10.90 10.23 9.38 
Common shareholders' equity per share of common stock$43.49 $42.69 $39.48 
Tangible common equity per share of common stock (c)38.65 37.84 34.59 
Common equity ratio7.24 %7.12 %5.73 %
Tangible common equity ratio (c)6.49 6.36 5.06 
AVERAGE BALANCES
Commercial loans$26,292 $26,451 $31,663 $26,372 $31,093 
Real estate construction loans4,553 5,174 3,708 4,863 3,528 
Commercial mortgage loans14,171 13,642 13,801 13,906 13,633 
Lease financing798 810 776 804 770 
International loans1,111 1,141 1,268 1,126 1,247 
Residential mortgage loans1,898 1,882 1,858 1,890 1,846 
Consumer loans2,248 2,272 2,294 2,260 2,306 
Total loans51,071 51,372 55,368 51,221 54,423 
Earning assets71,829 75,807 82,311 73,818 79,857 
Total assets79,207 83,617 90,355 81,412 87,761 
Noninterest-bearing deposits25,357 26,408 30,559 25,883 33,389 
Interest-bearing deposits37,698 38,902 33,773 38,300 32,683 
Total deposits63,055 65,310 64,332 64,183 66,072 
Common shareholders' equity5,454 5,683 5,544 5,568 5,440 
Total shareholders' equity5,848 6,077 5,938 5,962 5,834 
NET INTEREST INCOME
Net interest income$533 $548 $621 $1,081 $1,329 
Net interest margin2.86 %2.80 %2.93 %2.83 %3.24 %
CREDIT QUALITY
Nonperforming assets$226 $217 $186 
Loans past due 90 days or more and still accruing11 32 9 
Net charge-offs (recoveries)11 14 (2)$25 $(4)
Allowance for loan losses686 691 684 
Allowance for credit losses on lending-related commitments31 37 44 
Total allowance for credit losses717 728 728 
Allowance for credit losses as a percentage of total loans1.38 %1.43 %1.31 %
Net loan charge-offs (recoveries) as a percentage of average total loans0.09 0.10 (0.01)0.10 %(0.01 %)
Nonperforming assets as a percentage of total loans and foreclosed property
0.44 0.43 0.33 
Allowance for credit losses as a multiple of total nonperforming loans3.2x3.4x3.9x
OTHER KEY INFORMATION
Number of banking centers381 408 409 
Number of employees - full time equivalent7,608 7,619 7,672 
(a)    Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
(b)    June 30, 2024 ratios are estimated.
(c)    See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios.
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 CONSOLIDATED BALANCE SHEETS
 Comerica Incorporated and Subsidiaries
June 30,March 31,December 31,June 30,
(in millions, except share data)2024202420232023
(unaudited)(unaudited)(unaudited)
ASSETS
Cash and due from banks$719 $689 $1,443 $1,413
Interest-bearing deposits with banks4,093 4,446 8,059 8,810
Other short-term investments396 366 399 389
Investment securities available-for-sale15,656 16,246 16,869 17,415
Commercial loans27,113 26,019 27,251 31,745
Real estate construction loans4,554 4,558 5,083 3,983
Commercial mortgage loans14,156 14,266 13,686 13,851
Lease financing806 793 807 756
International loans1,087 1,070 1,102 1,282
Residential mortgage loans1,896 1,889 1,889 1,894
Consumer loans2,238 2,227 2,295 2,253
Total loans51,850 50,822 52,113 55,764
Allowance for loan losses(686)(691)(688)(684)
Net loans51,164 50,131 51,425 55,080
Premises and equipment474 462 445 397
Accrued income and other assets7,095 7,104 7,194 7,257
Total assets$79,597 $79,444 $85,834 $90,761
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits$24,522 $25,833 $27,849 $31,067
Money market and interest-bearing checking deposits29,016 28,550 28,246 24,397
Savings deposits2,247 2,342 2,381 2,760
Customer certificates of deposit3,775 3,941 3,723 2,630
Other time deposits2,879 2,894 4,550 5,159
Foreign office time deposits20 18 13 2
Total interest-bearing deposits37,937 37,745 38,913 34,948
Total deposits62,459 63,578 66,762 66,015
Short-term borrowings1,250 — 3,565 9,558
Accrued expenses and other liabilities2,615 2,695 2,895 2,632
Medium- and long-term debt7,112 7,121 6,206 6,961
Total liabilities73,436 73,394 79,428 85,166
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share:
Authorized - 4,000 shares
Issued - 4,000 shares 394 394 394 394
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares1,141 1,141 1,141 1,141
Capital surplus2,210 2,202 2,224 2,212
Accumulated other comprehensive loss(3,463)(3,457)(3,048)(3,756)
Retained earnings11,867 11,765 11,727 11,648
Less cost of common stock in treasury - 95,559,986 shares at 6/30/24, 95,683,776 shares at 03/31/24, 96,449,879 shares at 6/30/23
(5,988)(5,995)(6,032)(6,044)
Total shareholders' equity6,161 6,050 6,406 5,595
Total liabilities and shareholders' equity$79,597 $79,444 $85,834 $90,761
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Comerica Incorporated and Subsidiaries
Three Months EndedSix Months Ended
June 30,June 30,
(in millions, except per share data)2024202320242023
(unaudited)(unaudited)(unaudited)(unaudited)
INTEREST INCOME
Interest and fees on loans$803 $852 $1,611 $1,629 
Interest on investment securities101 108 203 221 
Interest on short-term investments67 114 176 173 
Total interest income971 1,074 1,990 2,023 
INTEREST EXPENSE
Interest on deposits305 201 622 319 
Interest on short-term borrowings9 142 46 208 
Interest on medium- and long-term debt124 110 241 167 
Total interest expense438 453 909 694 
Net interest income533 621 1,081 1,329 
Provision for credit losses— 33 14 63 
Net interest income after provision for credit losses533 588 1,067 1,266 
NONINTEREST INCOME
Card fees64 72 130 141 
Fiduciary income58 62 109 120 
Service charges on deposit accounts46 47 91 93 
Capital markets income37 39 67 78 
Commercial lending fees17 18 33 36 
Risk management hedging income (loss)17 7 (8)15 
Brokerage fees14 8 24 16 
Bank-owned life insurance11 14 21 24 
Letter of credit fees10 11 20 21 
Other noninterest income17 25 40 41 
Total noninterest income291 303 527 585 
NONINTEREST EXPENSES
Salaries and benefits expense323 306 671 632 
Outside processing fee expense68 68 136 132 
Software expense45 43 89 83 
Occupancy expense44 41 88 82 
FDIC insurance expense19 16 55 29 
Equipment expense13 12 25 24 
Advertising expense12 10 20 18 
Other noninterest expenses 31 39 74 86 
Total noninterest expenses555 535 1,158 1,086 
Income before income taxes 269 356 436 765 
Provision for income taxes63 83 92 168 
NET INCOME206 273 344 597 
Less:
Income allocated to participating securities1 2 2 3 
Preferred stock dividends5 5 11 11 
Net income attributable to common shares$200 $266 $331 $583 
Earnings per common share:
Basic$1.50 $2.02 $2.49 $4.43 
Diluted1.49 2.01 2.47 4.40 
Comprehensive income (loss)200 (312)(71)583 
Cash dividends declared on common stock95 94 189 188 
Cash dividends declared per common share0.71 0.71 1.42 1.42 
10

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
SecondFirstFourthThirdSecondSecond Quarter 2024 Compared to:
QuarterQuarterQuarterQuarterQuarterFirst Quarter 2024Second Quarter 2023
(in millions, except per share data)20242024202320232023 AmountPercentAmountPercent
INTEREST INCOME
Interest and fees on loans$803 $808 $849 $862 $852 $(5)(1 %)$(49)(6 %)
Interest on investment securities101 102 104 105 108 (1)(1)(7)(7)
Interest on short-term investments67 109 96 136 114 (42)(38)(47)(41)
Total interest income971 1,019 1,049 1,103 1,074 (48)(5)(103)(10)
INTEREST EXPENSE
Interest on deposits305 317 302 271 201 (12)(4)104 51 
Interest on short-term borrowings9 37 58 125 142 (28)(74)(133)(93)
Interest on medium- and long-term debt124 117 105 106 110 7 6 14 12 
Total interest expense438 471 465 502 453 (33)(7)(15)(4)
Net interest income533 548 584 601 621 (15)(3)(88)(14)
Provision for credit losses— 14 12 14 33 (14)(98)(33)(99)
Net interest income after provision
for credit losses
533 534 572 587 588 (1)— (55)(9)
NONINTEREST INCOME
Card fees64 66 68 71 72 (2)(3)(8)(11)
Fiduciary income58 51 56 59 62 7 13 (4)(6)
Service charges on deposit accounts46 45 45 47 47 1 1 (1)(2)
Capital markets income 37 30 34 35 39 7 23 (2)(6)
Commercial lending fees17 16 17 19 18 1 5 (1)(9)
Risk management hedging income (loss)17 (25)(74)17 7 42 n/m10 n/m
Brokerage fees14 10 8 6 8 4 34 6 71 
Bank-owned life insurance11 10 10 12 14 1 16 (3)(20)
Letter of credit fees10 10 11 10 11 — — (1)(10)
Other noninterest income 17 23 23 19 25 (6)(22)(8)(29)
Total noninterest income291 236 198 295 303 55 23 (12)(4)
NONINTEREST EXPENSES
Salaries and benefits expense323 348 359 315 306 (25)(7)17 5 
Outside processing fee expense68 68 70 75 68 — — — — 
Software expense45 44 44 44 43 1 2 2 6 
Occupancy expense44 44 45 44 41 — — 3 7 
FDIC insurance expense19 36 132 19 16 (17)(45)3 26 
Equipment expense13 12 14 12 12 1 9 1 4 
Advertising expense12 8 10 12 10 4 35 2 17 
Other noninterest expenses31 43 44 34 39 (12)(28)(8)(20)
Total noninterest expenses555 603 718 555 535 (48)(8)20 4 
Income before income taxes269 167 52 327 356 102 62 (87)(24)
Provision for income taxes63 29 19 76 83 34 n/m(20)(24)
NET INCOME206 138 33 251 273 68 50 (67)(25)
Less:
Income allocated to participating securities1 1 — 1 2 — — (1)(12)
Preferred stock dividends5 6 6 6 5 (1)— — — 
Net income attributable to common shares$200 $131 $27 $244 $266 $69 52 %$(66)(25 %)
Earnings per common share:
Basic$1.50 $0.99 $0.20 $1.85 $2.02 $0.51 52 %$(0.52)(26 %)
Diluted1.49 0.98 0.20 1.84 2.01 0.51 52 (0.52)(26)
Comprehensive income (loss)200 (271)1,525 (533)(312)471 n/m512 n/m
Cash dividends declared on common stock95 94 93 94 94 1 — 1 1 
Cash dividends declared per common share0.71 0.71 0.71 0.71 0.71 — — — — 
n/m - not meaningful
11

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited)
Comerica Incorporated and Subsidiaries
20242023
(in millions)2nd Qtr1st Qtr4th Qtr3rd Qtr2nd Qtr
Balance at beginning of period:
Allowance for loan losses$691 $688 $694 $684 $641 
Allowance for credit losses on lending-related commitments37 40 42 44 52 
Allowance for credit losses728 728 736 728 693 
Loan charge-offs:
Commercial19 20 13 9 9 
Commercial mortgage6 — 1 3 — 
Lease financing3 — — — — 
International— — 11 1 1 
Consumer— 1 — 1 1 
Total loan charge-offs28 21 25 14 11 
Recoveries on loans previously charged-off:
Commercial15 6 3 5 12 
Commercial mortgage1 — 2 2 1 
Consumer1 1 — 1 — 
Total recoveries17 7 5 8 13 
Net loan charge-offs (recoveries)11 14 20 6 (2)
Provision for credit losses:
Provision for loan losses6 17 14 16 41 
Provision for credit losses on lending-related commitments(6)(3)(2)(2)(8)
Provision for credit losses— 14 12 14 33 
Balance at end of period:
Allowance for loan losses686 691 688 694 684 
Allowance for credit losses on lending-related commitments31 37 40 42 44 
Allowance for credit losses$717 $728 $728 $736 $728 
Allowance for credit losses as a percentage of total loans1.38 %1.43 %1.40 %1.38 %1.31 %
Net loan charge-offs (recoveries) as a percentage of average total loans0.09 0.10 0.15 0.05 (0.01)
    




12

NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries
20242023
(in millions)2nd Qtr1st Qtr4th Qtr3rd Qtr2nd Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonperforming loans:
Business loans:
Commercial$94 $88 $75 $83 $93 
Real estate construction— — 2 2 2 
Commercial mortgage69 67 41 30 37 
Lease financing1 — — — — 
International13 16 20 3 4 
Total nonperforming business loans177 171 138 118 136 
Retail loans:
Residential mortgage23 23 19 19 33 
Consumer:
Home equity26 23 21 17 17 
Total nonperforming retail loans49 46 40 36 50 
Total nonperforming loans and nonperforming assets226 217 178 154 186 
Nonperforming loans as a percentage of total loans0.44 %0.43 %0.34 %0.29 %0.33 %
Nonperforming assets as a percentage of total loans and foreclosed property
0.44 0.43 0.34 0.29 0.33 
Allowance for credit losses as a multiple of total nonperforming loans3.2x3.4x4.1x4.8x3.9x
Loans past due 90 days or more and still accruing$11 $32 $20 $45 $9 
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period$217 $178 $154 $186 $221 
Loans transferred to nonaccrual (a)45 83 54 14 17 
Nonaccrual loan gross charge-offs(28)(21)(25)(14)(11)
Loans transferred to accrual status (a)— (2)— (7)— 
Nonaccrual loans sold(2)(12)(1)— (3)
Payments/other (b)(6)(9)(4)(25)(38)
Nonaccrual loans at end of period$226 $217 $178 $154 $186 
(a)Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(b)Includes net changes related to nonaccrual loans with balances less than or equal to $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property.

13

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
Six Months Ended
June 30, 2024June 30, 2023
AverageAverageAverageAverage
(dollar amounts in millions)BalanceInterestRateBalanceInterestRate
Commercial loans (a)$26,372 $694 5.30 %$31,093 $847 5.50 %
Real estate construction loans4,863 203 8.40 3,528 138 7.90 
Commercial mortgage loans13,906 516 7.46 13,633 466 6.90 
Lease financing804 25 6.16 770 14 3.58 
International loans1,126 44 7.91 1,247 48 7.85 
Residential mortgage loans1,890 36 3.79 1,846 31 3.35 
Consumer loans2,260 93 8.28 2,306 85 7.43 
Total loans51,221 1,611 6.33 54,423 1,629 6.04 
Mortgage-backed securities (b)14,536 200 2.29 16,200 214 2.28 
U.S. Treasury securities (c)1,503 3 0.33 2,113 7 0.63 
Total investment securities16,039 203 2.13 18,313 221 2.10 
Interest-bearing deposits with banks (d)6,184 169 5.48 6,839 168 4.95 
Other short-term investments374 7 4.00 282 5 3.27 
Total earning assets73,818 1,990 5.20 79,857 2,023 4.94 
Cash and due from banks771 1,313 
Allowance for loan losses(690)(626)
Accrued income and other assets7,513 7,217 
Total assets$81,412 $87,761 
Money market and interest-bearing checking deposits (e)$28,890 464 3.21 $25,253 241 1.92 
Savings deposits2,320 3 0.22 3,011 3 0.19 
Customer certificates of deposit3,883 72 3.71 2,092 18 1.81 
Other time deposits3,184 83 5.28 2,294 56 4.94 
Foreign office time deposits23 — 4.39 33 1 3.81 
Total interest-bearing deposits38,300 622 3.26 32,683 319 1.96 
Federal funds purchased13 — 5.39 46 1 4.60 
Other short-term borrowings1,611 46 5.65 7,979 207 5.23 
Medium- and long-term debt6,992 241 6.88 5,462 167 6.12 
Total interest-bearing sources46,916 909 3.88 46,170 694 3.02 
Noninterest-bearing deposits25,883 33,389 
Accrued expenses and other liabilities2,651 2,368 
Shareholders' equity5,962 5,834 
Total liabilities and shareholders' equity$81,412 $87,761 
Net interest income/rate spread$1,081 1.32 $1,329 1.92 
Impact of net noninterest-bearing sources of funds1.51 1.32 
Net interest margin (as a percentage of average earning assets) 2.83 %3.24 %
(a)Interest income on commercial loans included net expense from cash flow swaps of $344 million and $269 million for the six months ended June 30, 2024 and 2023, respectively.
(b)Average balances included $3.0 billion and $2.6 billion of unrealized losses for the six months ended June 30, 2024 and 2023, respectively; yields calculated gross of these unrealized gains and losses.
(c)Average balances included $64 million and $126 million of unrealized losses for the six months ended June 30, 2024 and 2023, respectively; yields calculated gross of these unrealized gains and losses.
(d)Average balances excluded $3 million and $27 million of collateral posted and netted against derivative liability positions for the six months ended June 30, 2024 and 2023, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $125 million and $98 million of collateral received and netted against derivative asset positions for the six months ended June 30, 2024 and 2023, respectively; rates calculated gross of derivative netting amounts.
14

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
Three Months Ended
June 30, 2024March 31, 2024June 30, 2023
AverageAverageAverageAverageAverageAverage
(dollar amounts in millions)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Commercial loans (a)$26,292 $346 5.29 %$26,451 $348 5.30 %$31,663 $437 5.54 %
Real estate construction loans4,553 95 8.43 5,174 108 8.37 3,708 75 8.11 
Commercial mortgage loans14,171 263 7.47 13,642 253 7.46 13,801 245 7.12 
Lease financing798 13 6.20 810 12 6.11 776 10 5.21 
International loans1,111 22 8.02 1,141 22 7.80 1,268 24 7.80 
Residential mortgage loans1,898 18 3.83 1,882 18 3.74 1,858 16 3.40 
Consumer loans2,248 46 8.24 2,272 47 8.32 2,294 45 7.78 
Total loans51,071 803 6.32 51,372 808 6.33 55,368 852 6.18 
Mortgage-backed securities (b)14,290 99 2.29 14,782 101 2.28 16,004 106 2.28 
U.S. Treasury securities (c)1,460 2 0.39 1,546 1 0.28 1,861 2 0.44 
Total investment securities15,750 101 2.14 16,328 102 2.12 17,865 108 2.10 
Interest-bearing deposits with banks (d)4,642 64 5.40 7,726 105 5.47 8,701 110 5.11 
Other short-term investments366 3 3.99 381 4 4.01 377 4 3.75 
Total earning assets71,829 971 5.20 75,807 1,019 5.20 82,311 1,074 5.07 
Cash and due from banks603 938 1,163 
Allowance for loan losses(691)(688)(642)
Accrued income and other assets7,466 7,560 7,523 
Total assets$79,207 $83,617 $90,355 
Money market and interest-bearing checking deposits (e)$29,080 236 3.24 $28,700 228 3.18 $24,177 132 2.17 
Savings deposits2,287 2 0.22 2,352 1 0.23 2,877 2 0.21 
Customer certificates of deposit3,901 36 3.67 3,868 36 3.76 2,306 12 2.20 
Other time deposits2,403 31 5.28 3,964 52 5.28 4,395 54 4.98 
Foreign office time deposits27 — 4.42 18 — 4.35 18 1 4.03 
Total interest-bearing deposits37,698 305 3.23 38,902 317 3.28 33,773 201 2.37 
Federal funds purchased— — — 26 — 5.39 9 — 5.00 
Other short-term borrowings666 9 5.63 2,555 37 5.65 10,559 142 5.39 
Medium- and long-term debt7,082 124 6.98 6,903 117 6.77 7,073 110 6.24 
Total interest-bearing sources45,446 438 3.85 48,386 471 3.90 51,414 453 3.52 
Noninterest-bearing deposits25,357 26,408 30,559 
Accrued expenses and other liabilities2,556 2,746 2,444 
Shareholders' equity5,848 6,077 5,938 
Total liabilities and shareholders' equity$79,207 $83,617 $90,355 
Net interest income/rate spread$533 1.35 $548 1.30 $621 1.55 
Impact of net noninterest-bearing sources of funds1.51 1.50 1.38 
Net interest margin (as a percentage of average earning assets) 2.86 %2.80 %2.93 %
(a)Interest income on commercial loans included net expense from cash flow swaps of $174 million, $170 million and $150 million for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.
(b)Average balances included $3.1 billion, $2.9 billion and $2.7 billion of unrealized losses for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively; yields calculated gross of these unrealized losses.
(c)Average balances included $58 million, $71 million and $117 million of unrealized losses for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively; yields calculated gross of these unrealized losses.
(d)Average balances excluded $8 million, included $2 million and included $46 million of collateral posted and netted against derivative liability positions for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $121 million, $130 million and $231 million of collateral received and netted against derivative asset positions for the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively; rates calculated gross of derivative netting amounts.

15

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries
Accumulated Other Comprehensive Loss
Nonredeemable Preferred StockCommon StockTotal Shareholders' Equity
Shares OutstandingAmountCapital SurplusRetained EarningsTreasury Stock
(in millions, except per share data)
BALANCE AT MARCH 31, 2023$394 131.5 $1,141 $2,209 $(3,171)$11,476 $(6,055)$5,994
Net income— — — — — 273 — 273
Other comprehensive loss, net of tax— — — — (585)— — (585)
Cash dividends declared on common stock ($0.71 per share)— — — — — (94)— (94)
Cash dividends declared on preferred stock— — — — — (5)— (5)
Net issuance of common stock under employee stock plans— 0.2 — (4)— (2)11 5
Share-based compensation— — — 7 — — — 7
BALANCE AT JUNE 30, 2023$394 131.7 $1,141 $2,212 $(3,756)$11,648 $(6,044)$5,595
BALANCE AT MARCH 31, 2024$394 132.5 $1,141 $2,202 $(3,457)$11,765 $(5,995)$6,050
Net income— — — — — 206 — 206
Other comprehensive loss, net of tax— — — — (6)— — (6)
Cash dividends declared on common stock ($0.71 per share)— — — — — (95)— (95)
Cash dividends declared on preferred stock— — — — — (5)— (5)
Net issuance of common stock under employee stock plans— 0.1 — (1)— (4)7 2
Share-based compensation— — — 9 — — — 9
BALANCE AT JUNE 30, 2024$394 132.6 $1,141 $2,210 $(3,463)$11,867 $(5,988)$6,161
BALANCE AT DECEMBER 31, 2022$394 131.0 $1,141 $2,220 $(3,742)$11,258 $(6,090)$5,181
Net income— — — — — 597 — 597
Other comprehensive loss, net of tax— — — — (14)— — (14)
Cash dividends declared on common stock ($1.42 per share)— — — — — (188)— (188)
Cash dividends declared on preferred stock— — — — — (11)— (11)
Net issuance of common stock under employee stock plans— 0.7 — (43)— (8)46 (5)
Share-based compensation— — — 35 — — — 35
BALANCE AT JUNE 30, 2023$394 131.7 $1,141 $2,212 $(3,756)$11,648 $(6,044)$5,595
BALANCE AT DECEMBER 31, 2023$394 131.9 $1,141 $2,224 $(3,048)$11,727 $(6,032)$6,406
Cumulative effect of change in accounting principle (a)— — — — — (4)— (4)
Net income— — — — — 344 — 344
Other comprehensive loss, net of tax— — — — (415)— — (415)
Cash dividends declared on common stock ($1.42 per share)— — — — — (189)— (189)
Cash dividends declared on preferred stock— — — — — (11)— (11)
Net issuance of common stock under employee stock plans— 0.7 — (50)— — 44 (6)
Share-based compensation— — — 36 — — — 36
BALANCE AT JUNE 30, 2024$394 132.6 $1,141 $2,210 $(3,463)$11,867 $(5,988)$6,161 
(a)Effective January 1, 2024, the Corporation adopted ASU 2023-02, which expanded the permitted use of the proportional amortization method to certain tax credit investments.








16

 BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
 Comerica Incorporated and Subsidiaries
(dollar amounts in millions)CommercialRetailWealth
Three Months Ended June 30, 2024BankBankManagementFinanceOtherTotal
Earnings summary:
Net interest income (expense)$465 $203 $48 $(220)$37 $533 
Provision for credit losses— 1 (2)— 1 — 
Noninterest income146 33 78 33 1 291 
Noninterest expenses250 177 88 1 39 555 
Provision (benefit) for income taxes85 14 10 (46)— 63 
Net income (loss)$276 $44 $30 $(142)$(2)$206 
Net charge-offs$8 $2 $1 $— $— $11 
Selected average balances:
Assets $45,843 $3,029 $5,299 $18,448 $6,588 $79,207 
Loans 43,709 2,322 5,026 — 14 51,071 
Deposits31,176 24,590 3,951 3,032 306 63,055 
Statistical data:
Return on average assets (a)2.42 %0.71 %2.25 %n/mn/m1.05 %
Efficiency ratio (b)40.97 76.15 70.78 n/mn/m67.77 
CommercialRetailWealth
Three Months Ended March 31, 2024BankBankManagementFinanceOtherTotal
Earnings summary:
Net interest income (expense)$477 $200 $47 $(217)$41 $548 
Provision for credit losses16 (1)1 — (2)14 
Noninterest income147 29 65 (11)6 236 
Noninterest expenses275 182 96 2 48 603 
Provision (benefit) for income taxes56 8 2 (41)4 29 
Net income (loss)$277 $40 $13 $(189)$(3)$138 
Net charge-offs$14 $— $— $— $— $14 
Selected average balances:
Assets$46,485 $3,025 $5,444 $19,057 $9,606 $83,617 
Loans43,911 2,297 5,152 — 12 51,372 
Deposits32,212 24,384 3,900 4,539 275 65,310 
Statistical data:
Return on average assets (a)2.40 %0.64 %0.88 %n/mn/m0.66 %
Efficiency ratio (b)44.05 79.14 86.66 n/mn/m76.91 
CommercialRetailWealth
Three Months Ended June 30, 2023BankBankManagementFinanceOtherTotal
Earnings summary:
Net interest income (expense)$504 $214 $51 $(173)$25 $621 
Provision for credit losses33 (4)2 — 2 33 
Noninterest income158 29 83 29 4 303 
Noninterest expenses248 171 89 2 25 535 
Provision (benefit) for income taxes90 18 11 (36)— 83 
Net income (loss)$291 $58 $32 $(110)$2 $273 
Net (recoveries) charge-offs$(3)$— $1 $— $— $(2)
Selected average balances:
Assets$50,945 $2,931 $5,624 $20,649 $10,206 $90,355 
Loans47,813 2,214 5,341 — — 55,368 
Deposits31,030 24,002 3,942 4,980 378 64,332 
Statistical data:
Return on average assets (a)2.29 %0.94 %2.31 %n/mn/m1.21 %
Efficiency ratio (b)37.44 69.73 66.21 n/mn/m57.70 
(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 and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
n/m - not meaningful
17

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (unaudited)
Comerica Incorporated and Subsidiaries
Comerica believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Comerica believes adjusted net income, earnings per share, ROA and ROE provide a greater understanding of ongoing operations and financial results by removing the impact of notable items from net income, net income available to common shareholders, average assets and average common shareholders’ equity. Notable items are meaningful because they provide greater detail of how certain events or initiatives affect Comerica’s results for a more informed understanding of those results. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.
SecondFirstSecondSix Months Ended
QuarterQuarterQuarterJune 30,
(dollar amounts in millions, except per share data)20242024202320242023
Adjusted Earnings per Common Share:
Net income attributable to common shareholders$200 $131 $266 $331 $583 
Net BSBY cessation hedging losses (a)3 36 — 39 — 
FDIC special assessment (b)3 16 — 19 — 
Modernization and expense recalibration initiatives (c)2 1 7 3 23 
Income tax impact of above items(2)(13)(2)(15)(6)
Adjusted net income attributable to common shareholders$206 $171 $271 $377 $600 
Diluted average common shares (in millions)134 133 132 134 132 
Diluted earnings per common share:
Reported$1.49 $0.98 $2.01 $2.47 $4.40 
Adjusted1.53 1.29 2.05 2.82 4.53 
Adjusted Net Income, ROA and ROE:
Net income$206 $138 $273 $344 $597 
Net BSBY cessation hedging losses (a)3 36 — 39 — 
FDIC special assessment (b)3 16 — 19 — 
Modernization and expense recalibration initiatives (c)2 1 7 3 23 
Income tax impact of above items(2)(13)(2)(15)(6)
Adjusted net income$212 $178 $278 $390 $614 
Average assets$79,207 $83,617 $90,355 $81,412 $87,761 
Impact of adjusted items to average assets— — (1)(2)(1)
Adjusted average assets$79,207 $83,617 $90,354 $81,410 $87,760 
ROA:
Reported1.05 %0.66 %1.21 %0.85 %1.37 %
Adjusted1.07 0.86 1.24 0.96 1.41 
Average common shareholder’s equity$5,454 $5,683 $5,544 $5,568 $5,440 
Impact of adjusted items to average common shareholders’ equity— 1 3 6 4 
Adjusted average common shareholder’s equity$5,454 $5,684 $5,547 $5,574 $5,444 
ROE:
Reported14.78 %9.33 %19.38 %12.00 %21.73 %
Adjusted15.18 12.22 19.72 13.66 22.35 
(a)The planned cessation of BSBY announced in November 2023 resulted in the de-designation of certain interest rate swaps requiring reclassification of amounts recognized in AOCI into earnings. Settlement of interest payments and changes in fair value for each impacted swap are recorded as risk management hedging losses until the swap is re-designated.
(b)Additional FDIC insurance expense resulting from the FDIC Board of Directors’ November 2023 approval of a special assessment to recover the loss to the Deposit Insurance Fund following the failures of Silicon Valley Bank and Signature Bank.
(c)Related to certain initiatives to transform the retail banking delivery model, align corporate facilities and optimize technology platforms, as well as calibrate expenses to enhance earnings power while creating capacity for strategic and risk management initiatives.


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Common equity tier 1 capital ratio removes preferred stock from the Tier 1 capital ratio as defined by and calculated in     conformity with bank regulations. The tangible common equity ratio removes the effect of intangible assets from capital and 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.
June 30,March 31,June 30,
(in millions, except share data)202420242023
Common Equity Tier 1 Capital (a):
Tier 1 capital$8,980 $8,863 $8,705 
Less:
Fixed-rate reset non-cumulative perpetual preferred stock394 394 394 
Common equity tier 1 capital$8,586 $8,469 $8,311 
Risk-weighted assets$74,338 $73,794 $80,624 
Tier 1 capital ratio12.08 %12.01 %10.80 %
Common equity tier 1 capital ratio11.55 11.48 10.31 
Tangible Common Equity:
Total shareholders' equity$6,161 $6,050 $5,595 
Less:
Fixed-rate reset non-cumulative perpetual preferred stock394 394 394 
Common shareholders' equity$5,767 $5,656 $5,201 
Less:
Goodwill635 635 635 
Other intangible assets7 8 8 
Tangible common equity$5,125 $5,013 $4,558 
Total assets$79,597 $79,444 $90,761 
Less:
Goodwill635 635 635 
Other intangible assets7 8 8 
Tangible assets$78,955 $78,801 $90,118 
Common equity ratio7.24 %7.12 %5.73 %
Tangible common equity ratio6.49 6.36 5.06 
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity$5,767 $5,656 $5,201 
Tangible common equity5,125 5,013 4,558 
Shares of common stock outstanding (in millions)133 133 132 
Common shareholders' equity per share of common stock$43.49 $42.69 $39.48 
Tangible common equity per share of common stock38.65 37.84 34.59 
(a)June 30, 2024 ratios are estimated.

Total uninsured deposits as calculated per regulatory guidance and reported on schedule RC-O of Comerica Bank’s Call Report include affiliate deposits, which by definition have a different risk profile than other uninsured deposits. The amounts presented below remove affiliate deposits from the total uninsured deposits number. Comerica believes that the presentation of uninsured deposits adjusted for the impact of affiliate deposits provides enhanced clarity of uninsured deposits at risk.

June 30,March 31,June 30,
(dollar amounts in millions)202420242023
Uninsured Deposits:
Total uninsured deposits, as calculated per regulatory guidelines$29,509 $30,481 $31,627 
Less:
Affiliate deposits(3,882)(3,966)(4,412)
Total uninsured deposits, excluding affiliate deposits$25,627 $26,515 $27,215 
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