EX-99.1 2 a2024q3pressrelease-ex991.htm EX-99.1 Document
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THIRD QUARTER 2024 NET INCOME OF $184 MILLION, $1.33 PER SHARE
Favorable Deposit and Net Interest Income Trends
Strong Capitalization with Ongoing Credit and Expense Discipline

“Today we reported third quarter earnings per share of $1.33," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. "Growth in customer deposits offset muted loan demand and contributed to net interest income exceeding expectations for the quarter. Expense discipline remained a priority as we continued to execute on action plans set forth earlier this year. Credit quality was strong with net charge offs of 8 basis points, well below historical averages, and we continue to believe future migration will remain manageable. We favor a conservative approach to capital management as our estimated CET1 capital ratio rose to 11.97%, well above our 10% target. Further, the downward shift in the rate curve drove a meaningful improvement in AOCI for the quarter.”
(dollar amounts in millions, except per share data)3rd Qtr '242nd Qtr '243rd Qtr '23
FINANCIAL RESULTS
Net interest income $534 $533 $601 
Provision for credit losses14 — 14 
Noninterest income277 291 295 
Noninterest expenses562 555 555 
Pre-tax income235 269 327 
Provision for income taxes51 63 76 
Net income$184 $206 $251 
Diluted earnings per common share$1.33 $1.49 $1.84 
Average loans50,861 51,071 53,987 
Average deposits63,896 63,055 65,883 
Return on average assets (ROA)0.92 %1.05 %1.12 %
Return on average common shareholders' equity (ROE)10.88 14.78 19.50 
Net interest margin2.80 2.86 2.84 
Efficiency ratio (a)68.80 67.77 61.86 
Common equity Tier 1 capital ratio (b)11.97 11.55 10.80 
Tier 1 capital ratio (b)12.51 12.08 11.30 
(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)September 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)3rd Qtr '242nd Qtr '243rd Qtr '23
Diluted earnings per common share$1.33 $1.49 $1.84 
Net BSBY cessation hedging losses (a)
0.05 0.01 — 
FDIC special assessment (b)
(0.02)0.02 — 
Modernization and expense recalibration initiatives (c)
0.01 0.01 (0.08)
Adjusted diluted earnings per common share$1.37 $1.53 $1.76 
Net income attributable to common shareholders$177 $200 $244 
Net BSBY cessation hedging losses (a)
9 3 — 
FDIC special assessment (b)
(4)3 — 
Modernization and expense recalibration initiatives (c)
2 2 (14)
Income tax impact of above items(2)(2)3 
Adjusted net income attributable to common shareholders$182 $206 $233 
ROA0.92 %1.05 %1.12 %
Adjusted ROA0.94 1.07 1.07 
ROE10.88 14.78 19.50 
Adjusted ROE11.22 15.18 18.65 
(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. All impacted swaps were re-designated as of April 1, 2024; therefore, settlement of interest payments for third quarter 2024 and second quarter 2024 were recorded as net interest income.
(b)Additional FDIC insurance accrual adjustments 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.
Third Quarter 2024 Compared to Second Quarter 2024 Overview
Balance sheet items discussed in terms of average balances unless otherwise noted.
Loans decreased $210 million to $50.9 billion.
•Decreases of $234 million in National Dealer Services and $179 million in Corporate Banking, partially offset by increases of $157 million in Commercial Real Estate and $135 million in Environmental Services.
◦Period-end loans decreased $1.3 billion driven by declines of $705 million in National Dealer Services, $374 million in Equity Fund Services and $247 million in general Middle Market, partially offset by an increase of $172 million in Commercial Real Estate.
•Average yield on loans (including swaps) decreased 8 basis points to 6.24% reflecting lower nonaccrual interest.
Securities increased $130 million to $15.9 billion, reflecting a decrease in average unrealized losses, partially offset by paydowns and maturities.
•Period-end unrealized losses on securities decreased $701 million to $2.3 billion.
Deposits increased $841 million to $63.9 billion.
•Interest-bearing deposits increased $1.8 billion, partially offset by a decrease of $1.0 billion in noninterest-bearing deposits.
◦Increases of $364 million in Equity Fund Services, $213 million in general Middle Market, $194 million in Corporate Banking and $140 million in Commercial Real Estate, partially offset by a $365 million decrease in Retail Banking.
◦Average brokered time deposits increased $336 million. On a period-end basis, brokered time deposits decreased $862 million.
•The average cost of interest-bearing deposits increased 8 basis points to 331 basis points, mostly reflecting continued strategic growth in core interest-bearing deposits.
Short-term borrowings decreased $589 million, reflecting a reduction in Federal Home Loan Bank (FHLB) advances, while medium- and long-term debt decreased $233 million to $6.8 billion, driven by a maturity during the quarter.
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•Total liquidity capacity at period-end totaled $44.1 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.
Net interest income was stable at $534 million, and net interest margin decreased 6 basis points to 2.80%.
•Includes higher deposits held at the FRB, a decline in debt (including short-term FHLB advances) and one additional day in the quarter, offset by an increase in interest-bearing deposits, the net impact of lower short-term rates, lower nonaccrual loan interest and a decline in loan volume.
•The decline in net interest margin reflected an increase in interest-bearing deposit costs and lower nonaccrual interest, partially offset by higher deposits held at the FRB and the decline in debt balances.
Provision for credit losses was $14 million.
•The allowance for credit losses increased $3 million to $720 million, reflecting changes in portfolio composition and a relatively consistent economic outlook.
•As a percentage of total loans, the allowance for credit losses was 1.43%, an increase of 5 basis points.
Noninterest income decreased $14 million to $277 million.
•Decrease of $10 million in risk management hedging income (mostly price alignment income), partially offset by increases of $3 million in deferred compensation asset returns (offset in noninterest expenses) and $2 million in capital markets income, as well as smaller increases in other categories.
◦Other noninterest income for third quarter 2024 included a $5 million loss, while other noninterest income for second quarter 2024 included a $6 million gain, both pertaining to a derivative related to Visa’s Class B shares.
Noninterest expenses increased $7 million to $562 million.
•Increases of $12 million in salaries and benefits expense and $2 million in occupancy expense, partially offset by an $8 million decrease in FDIC insurance expense (including a $7 million impact from changes to the special assessment estimates by the FDIC).
◦Salaries and benefits expense included increases of $4 million in deferred compensation expense (mostly offset in other noninterest income) and $3 million from staff additions, as well as impacts of $2 million each from an additional day in the quarter, higher incentive compensation and stock-based compensation.
◦Other noninterest expenses included an increase of $3 million in operational losses, partially offset by a $2 million decrease in consulting expenses.
Common equity Tier 1 capital ratio of 11.97% and a Tier 1 capital ratio of 12.51%.
See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.
•Share repurchases targeting $100 million are expected to resume in the fourth quarter of 2024.
•Declared dividends of $94 million on common stock and $6 million on preferred stock.
•Tangible common equity ratio was 8.01%.

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Net Interest Income
Balance sheet items presented and discussed in terms of average balances.
(dollar amounts in millions)3rd Qtr '242nd Qtr '243rd Qtr '23
Net interest income$534 $533 $601 
Net interest margin2.80 %2.86 %2.84 %
Selected balances:
Total earning assets$73,103 $71,829 $80,996 
Total loans50,861 51,071 53,987 
Total investment securities15,880 15,750 16,881 
Federal Reserve Bank deposits5,789 4,474 9,443 
Total deposits63,896 63,055 65,883 
Total noninterest-bearing deposits24,357 25,357 29,016 
Short-term borrowings77 666 8,847 
Medium- and long-term debt6,849 7,082 6,383 
Net interest income increased $1 million, and net interest margin decreased 6 basis points, compared to second 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 6 basis points, driven by other portfolio dynamics (-$6 million, -4 basis points consisting of lower nonaccrual interest), lower loan balances (-$5 million, -1 basis point) and lower short-term rates (-$2 million, -1 basis point), partially offset by one additional day in the quarter (+$8 million).
◦BSBY cessation negatively impacted net interest income and net interest margin by $9 million and 5 basis points for third quarter 2024, compared to a negative impact of $3 million and 2 basis points for second quarter 2024.
•Interest income on investment securities decreased $2 million and improved net interest margin by 1 basis point.
•Interest income on short-term investments increased $18 million and improved net interest margin by 4 basis points, primarily reflecting an increase of $1.3 billion in deposits with the FRB.
•Interest expense on deposits increased $25 million and reduced net interest margin by 12 basis points, reflecting higher average interest-bearing deposit balances (-$16 million, -8 basis points), higher pay rates on deposits (-$6 million, -4 basis points) and one additional day in the quarter (-$3 million).
•Interest expense on debt decreased $15 million and improved net interest margin by 7 basis points, driven by a decrease of $589 million in short-term FHLB advances (+$9 million, +4 basis points), a decline of $233 million in medium- and long-term debt (+$5 million, +2 basis points) and lower rates (+$1 million, +1 basis point).
The net impact of lower rates to third 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
“Our strategic diversification and prudent approach to underwriting continued to deliver strong credit results with net charge-offs of only 8 basis points," said Farmer. "Although persistent inflationary pressures impacted customer profitability, our portfolio continues to perform well, as criticized loan balances declined. A relatively consistent economic outlook coupled with lower loans drove a modest increase in our reserve to 1.43%. However, with the market expectation of additional rate declines, we see potential for favorable trends in portfolios currently under more relative pressure. In either event, we feel our proven, conservative credit discipline continues to position us well to outperform peers through the cycle.”

(dollar amounts in millions)3rd Qtr '242nd Qtr '243rd Qtr '23
Charge-offs$23 $28 $14 
Recoveries12 17 8 
Net charge-offs
11 11 6 
Net charge-offs/Average total loans
0.08 %0.09 %0.05 %
Provision for credit losses$14 $— $14 
Nonperforming loans and nonperforming assets (NPAs)250 226 154 
NPAs/Total loans and foreclosed property0.50 %0.44 %0.29 %
Loans past due 90 days or more and still accruing$21 $11 $45 
Allowance for loan losses686 686 694 
Allowance for credit losses on lending-related commitments (a)34 31 42 
Total allowance for credit losses720 717 736 
Allowance for credit losses/Period-end total loans1.43 %1.38 %1.38 %
Allowance for credit losses/Nonperforming loans2.9x3.2x4.8x
(a)    Included in accrued expenses and other liabilities on the Consolidated Balance Sheets.
•The allowance for credit losses totaled $720 million at September 30, 2024 and increased by 5 basis points to 1.43% of total loans, reflecting changes in portfolio composition and a relatively consistent economic outlook.
•Criticized loans were relatively flat, totaling $2.4 billion, or 4.8% of total loans. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.
•Nonperforming assets increased $24 million to $250 million, or 0.50% of total loans and foreclosed property, compared to 0.44% in second quarter 2024.
•Net charge-offs were stable at $11 million, unchanged from second 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 September 30, 2024. A discussion of business segment results will be included in Comerica’s Form 10-Q for the quarter ended September 30, 2024.
Conference Call and Webcast
Comerica will host a conference call and live webcast to review third quarter 2024 financial results at 7 a.m. CT Friday, October 18, 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 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 EndedNine Months Ended
September 30,June 30,September 30,September 30,
(in millions, except per share data)20242024202320242023
PER COMMON SHARE AND COMMON STOCK DATA
Diluted earnings per common share$1.33 $1.49 $1.84 $3.80 $6.24 
Cash dividends declared0.71 0.71 0.71 2.13 2.13 
Average diluted shares (in thousands)134,039 133,763 132,655 133,727 132,520 
PERFORMANCE RATIOS
Return on average common shareholders' equity10.88 %14.78 %19.50 %11.58 %21.02 %
Return on average assets0.92 1.05 1.12 0.87 1.29 
Efficiency ratio (a)68.80 67.77 61.86 71.08 58.26 
CAPITAL
Common equity tier 1 capital (b), (c)$8,684 $8,586 $8,472 
Tier 1 capital (b), (c)9,078 8,980 8,866 
Risk-weighted assets (b)72,576 74,342 78,439 
Common equity tier 1 capital ratio (b), (c)11.97 %11.55 %10.80 %
Tier 1 capital ratio (b), (c)12.51 12.08 11.30 
Total capital ratio (b)14.30 14.02 13.17 
Leverage ratio (b)11.02 10.90 9.60 
Common shareholders' equity per share of common stock$52.52 $43.49 $34.73 
Tangible common equity per share of common stock (c)47.69 38.65 29.85 
Common equity ratio8.75 %7.24 %5.34 %
Tangible common equity ratio (c)8.01 6.49 4.62 
AVERAGE BALANCES
Commercial loans$26,173 $26,292 $29,721 $26,305 $30,631 
Real estate construction loans4,205 4,553 4,294 4,642 3,786 
Commercial mortgage loans14,494 14,171 13,814 14,104 13,694 
Lease financing804 798 770 804 770 
International loans1,036 1,111 1,241 1,096 1,245 
Residential mortgage loans1,905 1,898 1,915 1,895 1,869 
Consumer loans2,244 2,248 2,232 2,254 2,281 
Total loans50,861 51,071 53,987 51,100 54,276 
Earning assets73,103 71,829 80,996 73,578 80,241 
Total assets80,231 79,207 89,150 81,016 88,229 
Noninterest-bearing deposits24,357 25,357 29,016 25,371 31,916 
Interest-bearing deposits39,539 37,698 36,867 38,716 34,093 
Total deposits63,896 63,055 65,883 64,087 66,009 
Common shareholders' equity6,546 5,454 4,984 5,898 5,286 
Total shareholders' equity6,940 5,848 5,378 6,293 5,680 
NET INTEREST INCOME
Net interest income$534 $533 $601 $1,615 $1,930 
Net interest margin2.80 %2.86 %2.84 %2.82 %3.11 %
CREDIT QUALITY
Nonperforming assets$250 $226 $154 
Loans past due 90 days or more and still accruing21 11 45 
Net charge-offs (recoveries)11 11 6 $36 $2 
Allowance for loan losses686 686 694 
Allowance for credit losses on lending-related commitments34 31 42 
Total allowance for credit losses720 717 736 
Allowance for credit losses as a percentage of total loans1.43 %1.38 %1.38 %
Net loan charge-offs as a percentage of average total loans0.08 0.09 0.05 0.09 %0.01 %
Nonperforming assets as a percentage of total loans and foreclosed property
0.50 0.44 0.29 
Allowance for credit losses as a multiple of total nonperforming loans2.9x3.2x4.8x
OTHER KEY INFORMATION
Number of banking centers380 381 408 
Number of employees - full time equivalent7,666 7,608 7,667 
(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)    September 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
September 30,June 30,December 31,September 30,
(in millions, except share data)2024202420232023
(unaudited)(unaudited)(unaudited)
ASSETS
Cash and due from banks$870 $719 $1,443 $1,228
Interest-bearing deposits with banks5,523 4,093 8,059 6,884
Other short-term investments364 396 399 403
Investment securities available-for-sale15,886 15,656 16,869 16,323
Commercial loans25,953 27,113 27,251 29,007
Real estate construction loans3,859 4,554 5,083 4,545
Commercial mortgage loans14,774 14,156 13,686 13,721
Lease financing767 806 807 790
International loans1,003 1,087 1,102 1,194
Residential mortgage loans1,901 1,896 1,889 1,905
Consumer loans2,260 2,238 2,295 2,236
Total loans50,517 51,850 52,113 53,398
Allowance for loan losses(686)(686)(688)(694)
Net loans49,831 51,164 51,425 52,704
Premises and equipment476 474 445 410
Accrued income and other assets6,713 7,095 7,194 7,754
Total assets$79,663 $79,597 $85,834 $85,706
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits$23,819 $24,522 $27,849 $29,922
Money market and interest-bearing checking deposits31,469 29,016 28,246 26,298
Savings deposits2,155 2,247 2,381 2,521
Customer certificates of deposit3,592 3,775 3,723 3,401
Other time deposits2,017 2,879 4,550 5,011
Foreign office time deposits25 20 13 5
Total interest-bearing deposits39,258 37,937 38,913 37,236
Total deposits63,077 62,459 66,762 67,158
Short-term borrowings— 1,250 3,565 4,812
Accrued expenses and other liabilities2,434 2,615 2,895 2,715
Medium- and long-term debt6,786 7,112 6,206 6,049
Total liabilities72,297 73,436 79,428 80,734
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 surplus2,217 2,210 2,224 2,220
Accumulated other comprehensive loss(2,355)(3,463)(3,048)(4,540)
Retained earnings11,949 11,867 11,727 11,796
Less cost of common stock in treasury - 95,441,515 shares at 9/30/24, 95,559,986 shares at 06/30/24, 96,266,568 shares at 12/31/23, 96,374,736 shares at 9/30/23
(5,980)(5,988)(6,032)(6,039)
Total shareholders' equity7,366 6,161 6,406 4,972
Total liabilities and shareholders' equity$79,663 $79,597 $85,834 $85,706
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Comerica Incorporated and Subsidiaries
Three Months EndedNine Months Ended
September 30,September 30,
(in millions, except per share data)2024202320242023
(unaudited)(unaudited)(unaudited)(unaudited)
INTEREST INCOME
Interest and fees on loans$798 $862 $2,409 $2,491 
Interest on investment securities99 105 302 326 
Interest on short-term investments85 136 261 309 
Total interest income982 1,103 2,972 3,126 
INTEREST EXPENSE
Interest on deposits330 271 952 590 
Interest on short-term borrowings1 125 47 333 
Interest on medium- and long-term debt117 106 358 273 
Total interest expense448 502 1,357 1,196 
Net interest income534 601 1,615 1,930 
Provision for credit losses14 14 28 77 
Net interest income after provision for credit losses520 587 1,587 1,853 
NONINTEREST INCOME
Card fees64 71 194 212 
Fiduciary income57 59 166 179 
Service charges on deposit accounts46 47 137 140 
Capital markets income39 35 106 113 
Commercial lending fees17 19 50 55 
Brokerage fees13 6 37 22 
Bank-owned life insurance12 12 33 36 
Letter of credit fees10 10 30 31 
Risk management hedging income (loss)7 17 (1)32 
Other noninterest income12 19 52 60 
Total noninterest income277 295 804 880 
NONINTEREST EXPENSES
Salaries and benefits expense335 315 1,006 947 
Outside processing fee expense69 75 205 207 
Software expense46 44 135 127 
Occupancy expense46 44 134 126 
Equipment expense13 12 38 36 
FDIC insurance expense11 19 66 48 
Advertising expense10 12 30 30 
Other noninterest expenses 32 34 106 120 
Total noninterest expenses562 555 1,720 1,641 
Income before income taxes 235 327 671 1,092 
Provision for income taxes51 76 143 244 
NET INCOME184 251 528 848 
Less:
Income allocated to participating securities1 1 3 4 
Preferred stock dividends6 6 17 17 
Net income attributable to common shares$177 $244 $508 $827 
Earnings per common share:
Basic$1.34 $1.85 $3.83 $6.27 
Diluted1.33 1.84 3.80 6.24 
Comprehensive income (loss)1,292 (533)1,221 50 
Cash dividends declared on common stock94 94 283 282 
Cash dividends declared per common share0.71 0.71 2.13 2.13 
10

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
ThirdSecondFirstFourthThirdThird Quarter 2024 Compared to:
QuarterQuarterQuarterQuarterQuarterSecond Quarter 2024Third Quarter 2023
(in millions, except per share data)20242024202420232023 AmountPercentAmountPercent
INTEREST INCOME
Interest and fees on loans$798 $803 $808 $849 $862 $(5)(1 %)$(64)(7 %)
Interest on investment securities99 101 102 104 105 (2)(1)(6)(6)
Interest on short-term investments85 67 109 96 136 18 26 (51)(38)
Total interest income982 971 1,019 1,049 1,103 11 1 (121)(11)
INTEREST EXPENSE
Interest on deposits330 305 317 302 271 25 8 59 22 
Interest on short-term borrowings1 9 37 58 125 (8)(88)(124)(99)
Interest on medium- and long-term debt117 124 117 105 106 (7)(5)11 11 
Total interest expense448 438 471 465 502 10 3 (54)(11)
Net interest income534 533 548 584 601 1 — (67)(11)
Provision for credit losses14 — 14 12 14 14 n/m— — 
Net interest income after provision
for credit losses
520 533 534 572 587 (13)(3)(67)(12)
NONINTEREST INCOME
Card fees64 64 66 68 71 — — (7)(9)
Fiduciary income57 58 51 56 59 (1)(2)(2)(4)
Service charges on deposit accounts46 46 45 45 47 — — (1)(2)
Capital markets income 39 37 30 34 35 2 7 4 11 
Commercial lending fees17 17 16 17 19 — — (2)(8)
Brokerage fees13 14 10 8 6 (1)— 7 n/m
Bank-owned life insurance12 11 10 10 12 1 9 — — 
Letter of credit fees10 10 10 11 10 — — — — 
Risk management hedging income (loss)7 17 (25)(74)17 (10)(57)(10)(58)
Other noninterest income 12 17 23 23 19 (5)(34)(7)(35)
Total noninterest income277 291 236 198 295 (14)(4)(18)(6)
NONINTEREST EXPENSES
Salaries and benefits expense335 323 348 359 315 12 4 20 6 
Outside processing fee expense69 68 68 70 75 1 1 (6)(9)
Software expense46 45 44 44 44 1 1 2 4 
Occupancy expense46 44 44 45 44 2 5 2 5 
Equipment expense
13 13 12 14 12 — — 1 9 
FDIC insurance expense11 19 36 132 19 (8)(49)(8)(45)
Advertising expense10 12 8 10 12 (2)(4)(2)(8)
Other noninterest expenses32 31 43 44 34 1 1 (2)(9)
Total noninterest expenses562 555 603 718 555 7 1 7 1 
Income before income taxes235 269 167 52 327 (34)(12)(92)(28)
Provision for income taxes51 63 29 19 76 (12)(18)(25)(32)
NET INCOME184 206 138 33 251 (22)(10)(67)(26)
Less:
Income allocated to participating securities1 1 1 — 1 — — — — 
Preferred stock dividends6 5 6 6 6 1 — — — 
Net income attributable to common shares$177 $200 $131 $27 $244 $(23)(11 %)$(67)(27 %)
Earnings per common share:
Basic$1.34 $1.50 $0.99 $0.20 $1.85 $(0.16)(11 %)$(0.51)(28 %)
Diluted1.33 1.49 0.98 0.20 1.84 (0.16)(11)(0.51)(28)
Comprehensive income (loss)1,292 200 (271)1,525 (533)1,092 n/m1,825 n/m
Cash dividends declared on common stock94 95 94 93 94 (1)n/m— — 
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)3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr
Balance at beginning of period:
Allowance for loan losses$686 $691 $688 $694 $684 
Allowance for credit losses on lending-related commitments31 37 40 42 44 
Allowance for credit losses717 728 728 736 728 
Loan charge-offs:
Commercial11 19 20 13 9 
Commercial mortgage10 6 — 1 3 
Lease financing1 3 — — — 
International1 — — 11 1 
Consumer— — 1 — 1 
Total loan charge-offs23 28 21 25 14 
Recoveries on loans previously charged-off:
Commercial6 15 6 3 5 
Commercial mortgage1 1 — 2 2 
International5 — — — — 
Consumer— 1 1 — 1 
Total recoveries12 17 7 5 8 
Net loan charge-offs11 11 14 20 6 
Provision for credit losses:
Provision for loan losses11 6 17 14 16 
Provision for credit losses on lending-related commitments3 (6)(3)(2)(2)
Provision for credit losses14 — 14 12 14 
Balance at end of period:
Allowance for loan losses686 686 691 688 694 
Allowance for credit losses on lending-related commitments34 31 37 40 42 
Allowance for credit losses$720 $717 $728 $728 $736 
Allowance for credit losses as a percentage of total loans1.43 %1.38 %1.43 %1.40 %1.38 %
Net loan charge-offs as a percentage of average total loans0.08 0.09 0.10 0.15 0.05 
    




12

NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries
20242023
(in millions)3rd Qtr2nd Qtr1st Qtr4th Qtr3rd Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonperforming loans:
Business loans:
Commercial$97 $94 $88 $75 $83 
Real estate construction— — — 2 2 
Commercial mortgage88 69 67 41 30 
Lease financing1 1 — — — 
International3 13 16 20 3 
Total nonperforming business loans189 177 171 138 118 
Retail loans:
Residential mortgage36 23 23 19 19 
Consumer:
Home equity25 26 23 21 17 
Total nonperforming retail loans61 49 46 40 36 
Total nonperforming loans and nonperforming assets250 226 217 178 154 
Nonperforming loans as a percentage of total loans0.50 %0.44 %0.43 %0.34 %0.29 %
Nonperforming assets as a percentage of total loans and foreclosed property
0.50 0.44 0.43 0.34 0.29 
Allowance for credit losses as a multiple of total nonperforming loans2.9x3.2x3.4x4.1x4.8x
Loans past due 90 days or more and still accruing$21 $11 $32 $20 $45 
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period$226 $217 $178 $154 $186 
Loans transferred to nonaccrual (a)55 45 83 54 14 
Nonaccrual loan gross charge-offs(23)(28)(21)(25)(14)
Loans transferred to accrual status (a)— — (2)— (7)
Nonaccrual loans sold(14)(2)(12)(1)— 
Payments/other (b)6 (6)(9)(4)(25)
Nonaccrual loans at end of period$250 $226 $217 $178 $154 
(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
Nine Months Ended
September 30, 2024September 30, 2023
AverageAverageAverageAverage
(dollar amounts in millions)BalanceInterestRateBalanceInterestRate
Commercial loans (a)$26,305 $1,035 5.26 %$30,631 $1,263 5.52 %
Real estate construction loans4,642 292 8.41 3,786 228 8.05 
Commercial mortgage loans14,104 788 7.46 13,694 723 7.06 
Lease financing804 37 6.14 770 25 4.24 
International loans1,096 64 7.85 1,245 73 7.89 
Residential mortgage loans1,895 55 3.84 1,869 49 3.47 
Consumer loans2,254 138 8.20 2,281 130 7.65 
Total loans51,100 2,409 6.30 54,276 2,491 6.14 
Mortgage-backed securities (b)14,560 298 2.29 15,865 318 2.28 
U.S. Treasury securities (c)1,425 4 0.38 1,966 8 0.53 
Total investment securities15,985 302 2.14 17,831 326 2.10 
Interest-bearing deposits with banks (d)6,112 250 5.45 7,815 300 5.14 
Other short-term investments381 11 3.94 319 9 3.57 
Total earning assets73,578 2,972 5.19 80,241 3,126 5.03 
Cash and due from banks711 1,251 
Allowance for loan losses(688)(646)
Accrued income and other assets7,415 7,383 
Total assets$81,016 $88,229 
Money market and interest-bearing checking deposits (e)$29,585 724 3.26 $25,519 419 2.18 
Savings deposits2,277 4 0.21 2,886 5 0.20 
Customer certificates of deposit3,797 103 3.61 2,414 42 2.35 
Other time deposits3,035 120 5.30 3,247 123 5.08 
Foreign office time deposits22 1 4.39 27 1 3.90 
Total interest-bearing deposits38,716 952 3.28 34,093 590 2.30 
Federal funds purchased9 — 5.39 34 1 4.68 
Other short-term borrowings1,095 47 5.65 8,268 332 5.37 
Medium- and long-term debt6,944 358 6.87 5,772 273 6.31 
Total interest-bearing sources46,764 1,357 3.86 48,167 1,196 3.30 
Noninterest-bearing deposits25,371 31,916 
Accrued expenses and other liabilities2,588 2,466 
Shareholders' equity6,293 5,680 
Total liabilities and shareholders' equity$81,016 $88,229 
Net interest income/rate spread$1,615 1.33 $1,930 1.73 
Impact of net noninterest-bearing sources of funds1.49 1.38 
Net interest margin (as a percentage of average earning assets) 2.82 %3.11 %
(a)Interest income on commercial loans included net expense from cash flow swaps of $522 million and $432 million for the nine months ended September 30, 2024 and 2023, respectively.
(b)Average balances included $2.8 billion of unrealized losses for both the nine months ended September 30, 2024 and 2023; yields calculated gross of these unrealized gains and losses.
(c)Average balances included $55 million and $122 million of unrealized losses for the nine months ended September 30, 2024 and 2023, respectively; yields calculated gross of these unrealized gains and losses.
(d)Average balances included $2 million of collateral posted and netted against derivative liability positions for both the nine months ended September 30, 2024 and 2023; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $108 million and $213 million of collateral received and netted against derivative asset positions for the nine months ended September 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
September 30, 2024June 30, 2024September 30, 2023
AverageAverageAverageAverageAverageAverage
(dollar amounts in millions)BalanceInterestRateBalanceInterestRateBalanceInterestRate
Commercial loans (a)$26,173 $341 5.18 %$26,292 $346 5.29 %$29,721 $416 5.55 %
Real estate construction loans4,205 89 8.43 4,553 95 8.43 4,294 90 8.29 
Commercial mortgage loans14,494 272 7.44 14,171 263 7.47 13,814 257 7.38 
Lease financing804 12 6.10 798 13 6.20 770 11 5.56 
International loans1,036 20 7.73 1,111 22 8.02 1,241 25 7.97 
Residential mortgage loans1,905 19 3.94 1,898 18 3.83 1,915 18 3.72 
Consumer loans2,244 45 8.04 2,248 46 8.24 2,232 45 8.10 
Total loans50,861 798 6.24 51,071 803 6.32 53,987 862 6.34 
Mortgage-backed securities (b)14,608 98 2.29 14,290 99 2.29 15,205 104 2.28 
U.S. Treasury securities (c)1,272 1 0.50 1,460 2 0.39 1,676 1 0.26 
Total investment securities15,880 99 2.17 15,750 101 2.14 16,881 105 2.10 
Interest-bearing deposits with banks (d)5,969 81 5.32 4,642 64 5.40 9,737 132 5.40 
Other short-term investments393 4 3.83 366 3 3.99 391 4 4.00 
Total earning assets73,103 982 5.17 71,829 971 5.20 80,996 1,103 5.21 
Cash and due from banks593 603 1,130 
Allowance for loan losses(686)(691)(684)
Accrued income and other assets7,221 7,466 7,708 
Total assets$80,231 $79,207 $89,150 
Money market and interest-bearing checking deposits (e)$30,960 260 3.34 $29,080 236 3.24 $26,043 178 2.70 
Savings deposits2,194 1 0.19 2,287 2 0.22 2,640 2 0.23 
Customer certificates of deposit3,625 31 3.39 3,901 36 3.67 3,049 24 3.08 
Other time deposits2,739 37 5.35 2,403 31 5.28 5,121 67 5.21 
Foreign office time deposits21 1 4.38 27 — 4.42 14 — 4.34 
Total interest-bearing deposits39,539 330 3.31 37,698 305 3.23 36,867 271 2.90 
Federal funds purchased— — — — — — 11 — 5.31 
Other short-term borrowings77 1 5.65 666 9 5.63 8,836 125 5.60 
Medium- and long-term debt6,849 117 6.87 7,082 124 6.98 6,383 106 6.64 
Total interest-bearing sources46,465 448 3.84 45,446 438 3.85 52,097 502 3.81 
Noninterest-bearing deposits24,357 25,357 29,016 
Accrued expenses and other liabilities2,469 2,556 2,659 
Shareholders' equity6,940 5,848 5,378 
Total liabilities and shareholders' equity$80,231 $79,207 $89,150 
Net interest income/rate spread$534 1.33 $533 1.35 $601 1.40 
Impact of net noninterest-bearing sources of funds1.47 1.51 1.44 
Net interest margin (as a percentage of average earning assets) 2.80 %2.86 %2.84 %
(a)Interest income on commercial loans included net expense from cash flow swaps of $178 million, $174 million and $163 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(b)Average balances included unrealized losses of $2.4 billion for the three months ended September 30, 2024 and $3.1 billion for both the three months ended June 30, 2024 and September 30, 2023; yields calculated gross of these unrealized losses.
(c)Average balances included $38 million, $58 million and $115 million of unrealized losses for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively; yields calculated gross of these unrealized losses.
(d)Average balances included $13 million, excluded $8 million and included $59 million of collateral posted and netted against derivative liability positions for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $72 million, $121 million and $161 million of collateral received and netted against derivative asset positions for the three months ended September 30, 2024, June 30, 2024 and September 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 JUNE 30, 2023$394 131.7 $1,141 $2,212 $(3,756)$11,648 $(6,044)$5,595
Net income— — — — — 251 — 251
Other comprehensive loss, net of tax— — — — (784)— — (784)
Cash dividends declared on common stock ($0.71 per share)— — — — — (94)— (94)
Cash dividends declared on preferred stock— — — — — (6)— (6)
Net issuance of common stock under employee stock plans— 0.1 — (1)— (3)5 1
Share-based compensation— — — 9 — — — 9
BALANCE AT SEPTEMBER 30, 2023$394 131.8 $1,141 $2,220 $(4,540)$11,796 $(6,039)$4,972
BALANCE AT JUNE 30, 2024$394 132.6 $1,141 $2,210 $(3,463)$11,867 $(5,988)$6,161
Net income— — — — — 184 — 184
Other comprehensive income, net of tax— — — — 1,108 — — 1,108
Cash dividends declared on common stock ($0.71 per share)— — — — — (94)— (94)
Cash dividends declared on preferred stock— — — — — (6)— (6)
Net issuance of common stock under employee stock plans— 0.1 — (2)— (2)8 4
Share-based compensation— — — 9 — — — 9
BALANCE AT SEPTEMBER 30, 2024$394 132.7 $1,141 $2,217 $(2,355)$11,949 $(5,980)$7,366
BALANCE AT DECEMBER 31, 2022$394 131.0 $1,141 $2,220 $(3,742)$11,258 $(6,090)$5,181
Net income— — — — — 848 — 848
Other comprehensive loss, net of tax— — — — (798)— — (798)
Cash dividends declared on common stock ($2.13 per share)— — — — — (282)— (282)
Cash dividends declared on preferred stock— — — — — (17)— (17)
Net issuance of common stock under employee stock plans— 0.8 — (44)— (11)51 (4)
Share-based compensation— — — 44 — — — 44
BALANCE AT SEPTEMBER 30, 2023$394 131.8 $1,141 $2,220 $(4,540)$11,796 $(6,039)$4,972
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— — — — — 528 — 528
Other comprehensive income, net of tax— — — — 693 — — 693
Cash dividends declared on common stock ($2.13 per share)— — — — — (283)— (283)
Cash dividends declared on preferred stock— — — — — (17)— (17)
Net issuance of common stock under employee stock plans— 0.8 — (52)— (2)52 (2)
Share-based compensation— — — 45 — — — 45
BALANCE AT SEPTEMBER 30, 2024$394 132.7 $1,141 $2,217 $(2,355)$11,949 $(5,980)$7,366 
(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)Commercial BankRetail BankWealth ManagementFinanceOtherTotal
Three Months Ended September 30, 2024
Earnings summary:
Net interest income (expense)$464 $205 $46 $(220)$39 $534 
Provision for credit losses6 4 3 — 1 14 
Noninterest income149 24 73 26 5 277 
Noninterest expenses252 175 90 1 44 562 
Provision (benefit) for income taxes83 12 7 (48)(3)51 
Net income (loss)$272 $38 $19 $(147)$2 $184 
Net charge-offs$10 $1 $— $— $— $11 
Selected average balances:
Assets $45,669 $3,045 $5,296 $18,277 $7,944 $80,231 
Loans 43,462 2,347 5,042 — 10 50,861 
Deposits32,261 24,224 3,844 3,300 267 63,896 
Statistical data:
Return on average assets (a)2.36 %0.63 %1.47 %n/mn/m0.92 %
Efficiency ratio (b)41.23 74.24 75.35 n/mn/m68.80 
Commercial BankRetail BankWealth ManagementFinanceOtherTotal
Three Months Ended June 30, 2024
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 
Loans43,709 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)40.90 76.12 70.78 n/mn/m67.77 
Commercial BankRetail BankWealth ManagementFinanceOtherTotal
Three Months Ended September 30, 2023
Earnings summary:
Net interest income (expense)$505 $208 $49 $(187)$26 $601 
Provision for credit losses22 — (9)— 1 14 
Noninterest income150 31 78 40 (4)295 
Noninterest expenses257 175 102 1 20 555 
Provision (benefit) for income taxes89 16 9 (37)(1)76 
Net income (loss)$287 $48 $25 $(111)$2 $251 
Net charge-offs$6 $— $— $— $— $6 
Selected average balances:
Assets$49,459 $2,985 $5,557 $19,832 $11,317 $89,150 
Loans46,477 2,250 5,227 — 33 53,987 
Deposits31,868 24,034 3,950 5,711 320 65,883 
Statistical data:
Return on average assets (a)2.30 %0.79 %1.81 %n/mn/m1.12 %
Efficiency ratio (b)39.34 72.71 79.99 n/mn/m61.86 
(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.
ThirdSecondThirdNine Months Ended
QuarterQuarterQuarterSeptember 30,
(dollar amounts in millions, except per share data)20242024202320242023
Adjusted Earnings per Common Share:
Net income attributable to common shareholders$177 $200 $244 $508 $827 
Net BSBY cessation hedging losses (a)9 3 — 48 — 
FDIC special assessment (b)(4)3 — 15 — 
Modernization and expense recalibration initiatives (c)2 2 (14)5 9 
Income tax impact of above items(2)(2)3 (16)(2)
Adjusted net income attributable to common shareholders$182 $206 $233 $560 $834 
Diluted average common shares (in millions)134 134 133 134 133 
Diluted earnings per common share:
Reported$1.33 $1.49 $1.84 $3.80 $6.24 
Adjusted1.37 1.53 1.76 4.19 6.29 
Adjusted Net Income, ROA and ROE:
Net income$184 $206 $251 $528 $848 
Net BSBY cessation hedging losses (a)9 3 — 48 — 
FDIC special assessment (b)(4)3 — 15 — 
Modernization and expense recalibration initiatives (c)2 2 (14)5 9 
Income tax impact of above items(2)(2)3 (16)(2)
Adjusted net income$189 $212 $240 $580 $855 
Average assets$80,231 $79,207 $89,150 $81,016 $88,229 
Impact of adjusted items to average assets— — 1 (3)— 
Adjusted average assets$80,231 $79,207 $89,151 $81,013 $88,229 
ROA:
Reported0.92 %1.05 %1.12 %0.87 %1.29 %
Adjusted0.94 1.07 1.07 0.96 1.29 
Average common shareholder’s equity$6,546 $5,454 $4,984 $5,898 $5,286 
Impact of adjusted items to average common shareholders’ equity1 — (3)10 1 
Adjusted average common shareholder’s equity$6,547 $5,454 $4,981 $5,908 $5,287 
ROE:
Reported10.88 %14.78 %19.50 %11.58 %21.02 %
Adjusted11.22 15.18 18.65 12.74 21.18 
(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 were recorded as risk management hedging losses until the swap was re-designated. All impacted swaps were re-designated as of April 1, 2024; therefore, settlement of interest payments for third quarter 2024 and second quarter 2024 were recorded as net interest income.
(b)Additional FDIC insurance accrual adjustments 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.
September 30,June 30,September 30,
(in millions, except share data)202420242023
Common Equity Tier 1 Capital (a):
Tier 1 capital$9,078 $8,980 $8,866 
Less:
Fixed-rate reset non-cumulative perpetual preferred stock394 394 394 
Common equity tier 1 capital$8,684 $8,586 $8,472 
Risk-weighted assets$72,576 $74,342 $78,439 
Tier 1 capital ratio12.51 %12.08 %11.30 %
Common equity tier 1 capital ratio11.97 11.55 10.80 
Tangible Common Equity:
Total shareholders' equity$7,366 $6,161 $4,972 
Less:
Fixed-rate reset non-cumulative perpetual preferred stock394 394 394 
Common shareholders' equity$6,972 $5,767 $4,578 
Less:
Goodwill635 635 635 
Other intangible assets6 7 8 
Tangible common equity$6,331 $5,125 $3,935 
Total assets$79,663 $79,597 $85,706 
Less:
Goodwill635 635 635 
Other intangible assets6 7 8 
Tangible assets$79,022 $78,955 $85,063 
Common equity ratio8.75 %7.24 %5.34 %
Tangible common equity ratio8.01 6.49 4.62 
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity$6,972 $5,767 $4,578 
Tangible common equity6,331 5,125 3,935 
Shares of common stock outstanding (in millions)133 133 132 
Common shareholders' equity per share of common stock$52.52 $43.49 $34.73 
Tangible common equity per share of common stock47.69 38.65 29.85 
(a)September 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.

September 30,June 30,September 30,
(dollar amounts in millions)202420242023
Uninsured Deposits:
Total uninsured deposits, as calculated per regulatory guidelines$31,926 $29,509 $31,476 
Less:
Affiliate deposits(3,839)(3,882)(4,088)
Total uninsured deposits, excluding affiliate deposits$28,087 $25,627 $27,388 
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