Comerica Incorporated Goldman Sachs US Financial Services Conference December 5, 2017 David Duprey Executive Vice President & Chief Financial Officer Ralph W. Babb, Jr. Chairman & Chief Executive Officer Muneera Carr Executive Vice President & Chief Accounting Officer Pete Guilfoile Executive Vice President & Chief Credit Officer Safe Harbor Statement Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on track,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this presentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, including the Growth in Efficiency and Revenue initiative (“GEAR Up”), and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of the economic benefits of the GEAR Up initiative, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including changes in interest rates; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers, in particular the energy industry; unfavorable developments concerning credit quality; operational difficulties, failure of technology infrastructure or information security incidents; changes in regulation or oversight; reliance on other companies to provide certain key components of business infrastructure; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; reductions in Comerica's credit rating; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; potential legislative, administrative or judicial changes or interpretations related to the tax treatment of corporations; changes in accounting standards and the critical nature of Comerica's accounting policies. 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 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2016. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this presentation 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. 2
Focused on Enhancing Shareholder Value 9/30/17 ? 13Q17 dividend of $0.30 (paid on 10/1/17) compared to 4Q16 dividend of $0.23 Comerica: A Brief Overview GROWING REVENUE Positioned in faster growing markets & industries REDUCING EXPENSES Executing GEAR Up initiative to increase efficiency MANAGING RISK Strong, conservative credit culture CAPITAL MANAGMENT Continued share buyback & increased dividend 30% in 20171 POSITIONED FOR RISING RATES Recent rate increases driving significant revenue growth Comerica’s Strengths LONG HISTORY NIMBLE SIZE $74B IN ASSETS ATTRACTIVE FOOTPRINT PRIMARILY A BUSINESS BANK RELATIONSHIP BANKING STRATEGY CONSERVATIVE LONG HISTORY NIMBLE SIZE $72 IN ASSETS ATTRACTIVE FOOTPRINT PRIMARILY A BUSINESS BANK CONSERVATIVE RELATI NSHIP BANKIN STRATE Y Founded 168 years ago Products & services of a large bank with the culture of a community bank Strong presence in Texas, California, & Michigan Complemented by Retail Bank & Wealth Management Trusted Advisor approach Strong capital position, Prudent credit underwriting 3 4Q17 average balances & yields through 11/29/17 are preliminary & subject to change ? 1Comparisons of 4Q17 through 11/29/17 vs 3Q17 Fourth Quarter Update Average loans increase $344MM Average Loans: Oct & Nov Trends1 ($ in billions) Average loans increased 1% ? Growth in Corporate Banking ? Increase in Technology & Life Sciences- Equity Fund Services ? Seasonal increase in National Dealer & decline in Mortgage Banker Loan yields stable, excluding reduction in nonaccrual interest recoveries (from elevated 3Q17 level) 4 48.9 47.9 48.7 48.7 49.0 3.36 3.57 3.74 4.09 3.99 4Q16 1Q17 2Q17 3Q17 4Q17 thru 11/29 Loan Yields
Diverse Footprint & Business Mix Focus on maintaining a balanced loan portfolio Average Loans of $48.7B ($ in billions) Michigan 26% California 37% Texas 20% Other Markets 17% Market General Middle Market 24% National Dealer Services 14% Commercial Real Estate 11% Other Business Bank 28% Retail Bank 12% Wealth Management 11% Business Line 9/30/17 (570) (474) (320) 167 178 544 Mortgage Banker Finance Energy Commercial Real Estate Technology & Life Sciences Wealth Management National Dealer Services ? Cyclical & seasonal factors can affect loan growth & credit quality ? Therefore, a diverse portfolio helps drive more consistent growth & reduces risk Average Loans 3Q17 v. 3Q16 ($ in billions) 5 59.6 57.8 57.1 56.5 57.4 0.14 0.14 0.15 0.16 0.18 4Q16 1Q17 2Q17 3Q17 4Q17 thru 11/29 Deposit RatesR Average Deposits: Oct & Nov Trends1 ($ in billions) 4Q17 average balances & rates through 11/29/17 are preliminary & subject to change ? 1Comparisons of 4Q17 through 11/29/17 vs 3Q17 ? 2Interest costs on interest-bearing deposits ? 3Period-end at 11/29/17 Fourth Quarter Update Deposits increase $951MM Average deposits increase 2% ? Corporate Banking ? Wealth Management ? Small Business ? Retail Banking Continue to prudently manage pricing ? Deposit rates remain steady ? No change in standard rates Loan to deposit ratio: 83%3 2 6
Diverse Footprint & Business Mix Focus on maintaining relationship deposits 55 46 42 42 38 34 34 34 31 29 28 27 CM A ZI O N BO KF CF R RF M TB FI TB BB T KE Y FH N HB AN ST I Average Noninterest-bearing / Total Deposits1 (In percentage points) 3Q17 ? 1Source: SNL Financial ? 2Also includes Finance/Other of $0.4B or 1% High caliber Treasury Management solutions drive customer loyalty: ? 64% of total deposits are commercial ? 87% of noninterest-bearing deposits are commercial • ~80% of commercial noninterest- bearing deposits have Earnings Credit Allowance (ECA) Average Deposits of $56.5B ($ in billions) Michigan 38% California 31% Texas 17% Other Markets 14% Market General Middle Market 26% Technology & Life Sciences 10% Other Business Bank 14% Retail Banking 37% Small Business 5% Wealth Management 7% Business line2 7 March ‘17 Fed Funds +25 bps Deposit Beta -0- June ‘17 Fed Funds +25 bps Deposit Beta ~10% Dec ‘17 Fed Funds +25 bps Deposit Beta ~20-40% 9/30/17 ? Outlook as of 12/4/17 ? 1Assumes increases in Fed Funds, Prime & LIBOR. For methodology see the Company’s Form 10-Q, as filed with the SEC. Estimates are based on simulation modeling analysis. Estimated Additional Net Interest Income1 Benefit from Rate Increases Balance sheet well positioned for rising rates Outcomes may also vary due to a number of other variables including balance sheet movements, such as loan & deposit levels, as well as incremental funding needs ~$20MM ~$35MM TOTAL FY18 ~$110-125MM Fixed Rate ~10% 30-day LIBOR ~60% 60-day+ LIBOR ~15% Prime-Based ~15% Loan Portfolio ($ in billions; Average) Total $48.7 8 ~$55-70MM TOTAL FY17 ~10%+ increase over 2016 net interest income1 ~$190MM Equity $8.0 11% Interest-bearing Deposits $25.4 36% Noninterest-bearing Deposits $32.4 46% Wholesale Debt $5.1 7% Funding Profile ($ in billions; Period-end) Total $70.9
Change in Net Interest Margin1 (In basis points) Better Positioned for Rising Rates Maintaining low cost funding & asset sensitivity resulted in largest increase in NIM 9/30/17 ? Comparisons 3Q17 vs. 2Q17 ? 1Source for peer group data: SNL Financial ? 2Source: 3Q17 Press Releases/Financial supplements; CFR data per SNL Financial 15 16 21 28 34 35 35 38 40 44 45 51 CF R CM A ZI O N RF M TB BB T HB AN ST I KE Y FI TB BO KF FH N Interest-bearing Deposit Cost1 (In basis points) 14 (15) (11) 5 7 8 11 13 13 14 28 35 KE Y ZI O N HB AN ST I FH N BB T M TB RF FI TB CF R BO KF CM A Change in Loan Yields2 (In basis points) 12 (15) (7) (2) 1 1 3 4 6 8 12 26 KE Y ZI O N HB AN BB T ST I CF R RF FI TB M TB BO KF FH N CM A 9 Faster Loan Re-pricing/Maturity Date2 0% 20% 40% 60% 80% 100% CM A CF R FH N KE Y FI TB M TB ST I RF HB AN ZI O N BO KF BB T Less Than 3 Months Greater Than 3 Months Criticized Loans1 ($ in millions) 631 582 521 493 444 3,261 2,856 2,636 2,492 2,434 6.6 5.8 5.5 5.0 5.0 3Q16 4Q16 1Q17 2Q17 3Q17 NALs Criticized as a % of Total Loans Credit Quality Strong Criticized, nonaccrual & net charge-offs declined 9/30/17 ?1Criticized loans are consistent with regulatory defined Special Mention, Substandard, & Doubtful categories ? 2Net credit-related charge-offs ? 3“Normal” estimates are based on internal historical analysis & management judgement ? 4Net credit-related charge-offs (annualized) to average loans Nonaccrual Loans ($ in millions; 3Q17 Period-end) 16 36 33 18 25 13 29 28 15 21 3Q16 4Q16 1Q17 2Q17 3Q17 Ratio (bps)4 Normal Net Charge-Offs ~40 bps3 Net Charge-offs2 ($ in millions) ? Credit quality remains strong ? Metrics remain well below historical levels ? Allowance coverage: ? Allowance/loans 1.45% • Allowance/NPLs 157% • Allowance/LTM NCOs 6x Normal Criticized loans ~8%3 Energy 38% Middle Market (Ex. Energy) 27%Corporate Banking 7% Commercial Real Estate 2% Retail Bank 21% Wealth Management 5% Total $444 10
97 99 105 139 139 40 40 42 46 53137 139 147 185 192 3Q16 4Q16 1Q17 2Q17 3Q17 Equity Repurchases Dividends 9/30/17 ? 1Shares repurchased under equity repurchase program Active Capital Management Continue to return excess capital to shareholders 2017 CCAR Capital Plan (3Q17-2Q18) ? Equity repurchases up to $605 million1 ? 10/1/17 dividend increased 15% to $0.30 per share QTD Share Activity through 11/30/17 ? QTD 1.5MM shares repurchased ($121MM) ? 4Q17 CCAR “non-object” $148MM ? 285K shares issued from employee stock activity • $3.6MM tax benefit from employee stock transactions Dividends Per Share Growth 0.68 0.79 0.83 0.89 1.20 2013 2014 2015 2016 3Q17 Annualized Increasing Shareholder Payout ($ in millions) 11 GEAR Up: Growth in Efficiency And Revenue Helping drive revenue growth & expense reductions 142 148 YTD 3Q16 YTD 3Q17 Fiduciary Income ($ in millions) 224 242 YTD 3Q16 YTD 3Q17 Card Fee Income ($ in millions) 165 172 YTD 3Q16 YTD 3Q17 Service Charges on Deposit Accounts ($ in millions) +8% +4% +4% 742 677 YTD 3Q16 YTD 3Q17 Salaries & Benefits Expense ($ in millions) -9% 117 114 YTD 3Q16 YTD 3Q17 Net Occupancy Expense ($ in millions) -3% 40 34 YTD 3Q16 YTD 3Q17 Equipment Expense ($ in millions) -15% 12 2,209 2,426 YTD 3Q16 YTD 3Q17 Total Revenue ($ in millions) 1,469 1,377 YTD 3Q16 YTD 3Q17 Total Expenses1 ($ in millions) -6% +10% 9/30/17 ? 1Includes restructuring expenses, YTD 3Q16 of $73MM and YTD 3Q17 of $32MM.
9/30/17 ? Comparisons 3Q17 vs. 3Q16 ? 1Source for Peer Data: SNL Financial; ROA for RF obtained from the company’s 3Q17 Financial Supplement as data was not available; *FITB 3Q17 results include gain on sale of a portion of ownership stake in an integrated payment processor ? 2Data for CFR not available 38 .4 0 56 .0 0 56 .2 4 58 .3 0 60 .1 4 60 .5 0 61 .6 8 62 .2 0 62 .3 0 6 5. 50 66 .7 7 *F IT B M TB CM A BB T ST I HB AN R F KE Y ZI O N FH N BO KF Efficiency Ratio1,2 (In percentage points) GEAR Up: Growth in Efficiency And Revenue Top tier performance 13 0. 95 0. 97 0. 99 1. 03 1. 04 1. 06 1. 08 1. 16 1. 18 1. 19 1. 25 2. 85 RF ZI O N FH N BO KF ST I KE Y HB AN BB T M TB CF R CM A *F IT B Return on Assets1 (In percentage points) 7. 41 8. 21 8. 66 8. 73 8. 79 9. 55 9. 85 10 .0 1 10 .2 2 11 .1 7 11 .5 3 24 .0 8 RF ZI O N BB T M TB ST I KE Y BO KF FH N HB AN CM A CF R *F IT B Return on Equity1 (In percentage points) Financial Targets: Medium-term Assuming continuation of the current economic environment Assumptions ? Loan growth inline with current GDP ? Rates reflect forward curve ? Execution of GEAR Up revenue & expense initiatives which provides additional capacity ? Manage expenses to achieve positive operating leverage ? Continued investment in technology ? Credit quality normalizes (NCO ~40 bps) ? Moderate increase in capital efficiency Further Opportunities ? Further rate increases ? Faster economic growth ? Regulatory relief with capital management ? Tax reform ROA 1.1-1.3% ROA 1.1 - 1.3% ROCE 13 - 15% Efficiency Ratio <55% Outlook as of 12/4/17 14
REDUCING EXPENSES Executing GEAR Up initiative to increase efficiency GROWING REVENUE CAPITAL MANAGMENT POSITIONED FOR RISING RATES Positioned in faster growing markets & industries Recent rate increases driving significant revenue growth Share buyback & increased dividend 30% in 20171 MANAGING RISK Strong, conservative credit culture Focused on Enhancing Shareholder Value 15 9/30/17 ? 13Q17 dividend of $0.30 (payable on 10/1/17) compared to 4Q16 dividend of $0.23 Appendix
Financial Summary 3Q17 2Q17 3Q16 Diluted income per common share $1.26 $1.13 $0.84 Net interest income $546 $500 $450 Net interest margin 3.29% 3.03% 2.66% Provision for credit losses 24 17 16 Net credit-related charge-offs to average loans 0.21% 0.15% 0.13% Noninterest income 275 276 272 Noninterest expenses 463 457 493 Restructuring expenses 7 14 20 Net income 226 203 149 Average loans $48,663 $48,723 $49,206 Average deposits 56,493 57,128 58,065 Efficiency ratio1 56.24% 58.63% 68.15% Return on average common shareholders’ equity 11.17 10.26 7.76 Return on average assets 1.25 1.14 0.82 Common equity Tier 1 capital ratio 11.51% 11.51% 10.69 Average diluted shares (millions) 177 179 176 $ in millions, except per share data ? 1Noninterest expenses, including restructuring charges, as a percentage of the sum of net interest income (FTE) & noninterest income excluding net securities gains (losses) 17 Third Quarter 2017 Results EPS increased 12% Key QoQ Performance Drivers ? Loans impacted by seasonality ? Interest-bearing deposits decline, partly offset by increase in noninterest-bearing ? Net interest income grew 9% with higher interest rates, $13MM increase in nonaccrual interest recoveries & one additional day in the quarter ? Credit quality continued to be strong ? Noninterest income stable with higher card fees & BOLI income, offset by lower fiduciary, warrant & derivative income ? Expenses reflect increase in temporary labor, technology costs & higher outside processing (card volume), partly offset by lower restructuring charges ? Continued active capital management. Returned $192MM to shareholders including dividend increase of 15% 18 3Q17 Change From 2Q17 3Q16 Average loans $48,663 $ (60) $ (543) Average deposits 56,493 (635) (1,572) Net interest income $546 $46 $96 Provision for credit losses 24 7 8 Net credit-related charge-offs 25 7 9 Noninterest income 275 (1) 3 Noninterest expenses1 463 6 (30) Provision for income tax2 108 9 44 Net income 226 23 77 Earnings per share (EPS)3 $1.26 $0.13 $0.42 Equity repurchases4 $139 -0- $42 Dividend declared 0.30 0.04 0.07 $ in millions, except per share data ? 3Q17 compared to 2Q17 ? 1Included restructuring charge of $7MM ($0.02 per share, after tax) in 3Q17, $14MM ($0.05 per share, after tax) in 2Q17 & $20MM ($0.07 per share, after tax) in 3Q16 ? 2Included tax benefits of $2MM ($0.01 per share) and $5MM ($0.03 per share) from employee stock transactions for 3Q17 & 2Q17, respectively..? 3EPS based on diluted income per share ? 43Q17 repurchases under the equity repurchase program
Loans by Business and Market Average $ in billions ? Totals shown above may not foot due to rounding ? 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets ? Middle Market: Serving companies with revenues generally between $20-$500MM ? Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM ? Small Business: Serving companies with revenues generally under $20MM By Line of Business 3Q17 2Q17 3Q16 Middle Market General Energy National Dealer Services Entertainment Tech. & Life Sciences Environmental Services $11.9 2.1 6.9 0.6 3.3 1.0 $12.1 2.0 7.1 0.7 3.2 0.9 $12.0 2.6 6.3 0.7 3.1 0.9 Total Middle Market $25.8 $25.9 $25.6 Corporate Banking US Banking International 3.2 1.5 3.1 1.5 2.9 1.7 Mortgage Banker Finance 2.0 1.8 2.5 Commercial Real Estate 5.1 5.3 5.5 BUSINESS BANK $37.6 $37.6 $38.2 Small Business 3.8 3.8 3.9 Retail Banking 2.1 2.1 2.0 RETAIL BANK $5.9 $5.9 $5.9 Private Banking 5.3 5.3 5.1 WEALTH MANAGEMENT $5.3 $5.3 5.1 TOTAL $48.7 $48.7 $49.2 By Market 3Q17 2Q17 3Q16 Michigan $12.6 $12.7 $12.3 California 17.9 18.2 17.8 Texas 10.0 10.0 10.6 Other Markets1 8.2 7.8 8.5 TOTAL $48.7 $48.7 $49.2 19 By Market 3Q17 2Q17 3Q16 Michigan $21.6 $21.7 $21.9 California 17.3 17.3 17.7 Texas 9.4 9.6 9.9 Other Markets1 7.7 8.1 8.2 Finance/ Other2 0.4 0.4 0.4 TOTAL $56.5 $57.1 $58.1 Deposits by Business and Market Average $ in billions ? Totals shown above may not foot due to rounding ? 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets ? 2Finance/ Other includes items not directly associated with the geographic markets or the three major business segments ? Middle Market: Serving companies with revenues generally between $20-$500MM ? Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM ? Small Business: Serving companies with revenues generally under $20MM By Line of Business 3Q17 2Q17 3Q16 Middle Market General Energy National Dealer Services Entertainment Tech. & Life Sciences Environmental Services $14.5 0.7 0.4 0.1 5.5 0.1 $14.0 0.7 0.3 0.2 5.7 0.1 $14.7 0.6 0.3 0.2 6.2 0.1 Total Middle Market $21.3 $21.0 $22.1 Corporate Banking US Banking International 1.9 2.1 2.2 2.4 $2.7 2.3 Mortgage Banker Finance 0.8 0.7 0.8 Commercial Real Estate 2.0 2.4 2.1 BUSINESS BANK $28.1 $28.7 $30.0 Small Business 3.1 3.1 3.3 Retail Banking 20.8 20.8 20.4 RETAIL BANK $23.9 $23.9 $23.7 Private Banking 4.1 4.1 4.0 WEALTH MANAGEMENT $4.1 $4.1 $4.0 Finance/ Other2 0.4 0.4 0.4 TOTAL $56.5 $57.1 $58.1 20
Other 24% California 44% Dallas 13% Houston 8% Austin 7% Other 4% Multifamily 47% Retail 10% Commercial 13% Office 8% Single Family 8% Multi use 3% Land Carry 4% Other 7% 9/30/17 ? 1Excludes CRE line of business loans not secured by real estate ? 2Includes CRE line of business loans not secured by real estate ? 3Criticized loans are consistent with regulatory defined Special Mention, Substandard & Doubtful categories 5.4 5.3 5.3 5.2 5.2 3Q16 4Q16 1Q17 2Q17 3Q17 Period-end Loans2 ($ in billions) Criticized Loans3 ($ in millions) CRE by Property Type1 ($ in millions; Period-end) CRE by Market1 ($ in millions; Period-end, based on location of property) Commercial Real Estate Line of Business Long history of working with well established, proven developers Total $4,440 Texas 32% Total $4,440 Net Charge-offs (Recoveries) ($ in millions) 1 (2) - (2) - 3Q16 4Q16 1Q17 2Q17 3Q17 21 46 49 73 96 120 6.6% 5.8% 5.5% 5.0% 5.0% 0.9% 0.9% 1.4% 1.9% 2.3% 3Q16 4Q16 1Q17 2Q17 3Q17 % CMA Loans Criticized % CRE Criticized 4,605 4,385 4,151 4,175 4,095 52% 50% 45% 47% 48% 3Q16 4Q16 1Q17 2Q17 3Q17 Total Commitments Utilization Rate Energy Line of Business Criticized Loans1 ($ in millions) Energy Line of Business Loans ($ in millions; Period-end) 378 328 266 225 167 1,473 1,155 871 769 627 3Q16 4Q16 1Q17 2Q17 3Q17 NALs Energy Line of Business Credit quality continues to improve; balances stable 9/30/17 ? 1Criticized loans are consistent with regulatory defined Special Mention, Substandard & Doubtful categories ? 2Outlook as of 12/04/17 Mixed 18% ? Maintain granular portfolio: ~180 customers ? Loans decreased 15% since 9/30/16 ? Loans up slightly at period-end due to reduced asset sales & capital markets activity ? Fall redeterminations 70% complete: borrowing bases expected to be flat to slightly increase2 ? 93% of nonaccrual loans current on interest 22 352 374 327 346 308 332 289 268 258 239 1,773 1,587 1,360 1,443 1,530 2,457 2,250 1,955 2,047 2,077 3Q16 4Q16 1Q17 2Q17 3Q17 Midstream Services Exploration & Production
1, 48 3 1, 50 7 1, 99 6 2, 09 4 1, 73 7 1, 81 5 1, 60 5 1, 10 9 88 6 1, 31 9 1, 59 5 1, 39 7 1, 39 9 2, 08 9 2, 13 6 1, 74 2 1, 67 4 2, 14 5 2, 54 4 2, 35 2 1, 45 0 1, 78 0 1, 97 4 200 300 400 500 600 700 800 900 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 Actual MBA Mortgage Origination Volumes 9/30/17 ? 1Source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of11/21/17; 3Q17 also estimated ? 2$ in billions Average Loans ($ in millions) Mortgage Banker Finance 50+ years experience with reputation for consistent, reliable approach MBA Mortgage Originations Forecast1 ($ in billions) 1,2 ? Provide warehouse financing: bridge from residential mortgage origination to sale to end market ? Extensive backroom provides collateral monitoring and customer service ? Focus on full banking relationships ? Granular portfolio with 100+ relationships ? Underlying mortgages are typically related to home purchases as opposed to refinances As of 3Q17: • Comerica: 82% purchase • Industry: 68% purchase1 ? Strong credit quality • No charge-offs since 2010 • Period-end loans declined $270MM to $2.2B compared to 2Q17, due to seasonality 23 471 415 362 450 450 352 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Purchase Refinance National Dealer Services 65+ years of floor plan lending Toyota/Lexus 15% Honda/Acura 13% Ford 9% GM 9% Fiat/Chrysler 10% Mercedes 3% Nissan/ Infiniti 6%Other European 11% Other Asian 12% Other 12% Franchise Distribution (Based on period-end loan outstandings) Geographic Dispersion California 61% Texas 7% Michigan 21% Other 11% Average Loans ($ in billions) ? Top tier strategy ? Focus on “Mega Dealer” (five or more dealerships in group) ? Strong credit quality ? Robust monitoring of company inventory and performance 1. 9 2. 3 2. 3 2. 5 2. 8 3. 1 2. 9 3. 2 3. 2 3. 5 3. 2 3. 4 3. 5 3. 6 3. 5 3. 7 3. 8 4. 0 3. 8 4. 0 4. 1 4. 3 3. 9 3. 8 4. 3 4. 3 4. 6 4. 9 5. 1 4. 9 5. 3 5. 3 5. 7 5. 5 5. 7 5. 9 6. 0 6. 0 6. 2 6. 2 6. 5 6. 3 6. 6 6. 8 7. 1 6. 9 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 4Q 14 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 Floor Plan Total $6.9B 9/30/17 ? 1Other includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) 24 1
Customer Segment Overview (based on period-end loans) Early Stage ~10% Growth ~15% Late Stage ~5% Equity Fund Services ~60% Leveraged Finance ~10% Technology and Life Sciences 20+ years experience provides competitive advantage Technology & Life Sciences Avg. Loans ($ in billions) ? Strong relationships with top-tier investors ? Granular portfolio: ~810 customers (including ~215 customers in Equity Fund Services) ? Manage concentration to numerous verticals to ensure widely diversified portfolio ? Closely monitor cash balances and maintain robust backroom operation ? 15 offices throughout US & Canada ? Recent growth driven by Equity Fund Services • Commercial banking services for venture capital & private equity firms • Bridge financing for capital calls • Strong credit profile Total $3.5B 9/30/17 25 0.6 1.1 1.4 1.6 1.7 1.9 2.5 3.1 3.2 3.2 3.2 3.3 2014 2015 2016 1Q17 2Q17 3Q17 Equity Fund Services Net Interest Income ($ in millions) Net Interest Income Increased $46MM, or 9% NIM increased 26 basis points 3Q17 compared to 2Q17 450 455 470 500 546 1,342 1,516 2.66 2.65 2.86 3.03 3.29 2.74 3.06 3Q16 4Q16 1Q17 2Q17 3Q17 YTD 3Q16 YTD 3Q17 NIM $500MM 2Q17 3.03% +47MM Loan impacts: + $23MM higher rates (+14 bps) + $13MM nonaccrual interest recoveries (+8 bps) + $ 5MM 1 more day + $ 4MM 2Q17 lease residual adj. (+2bps) + $ 2MM other portfolio dynamics +0.26 + 3MM Fed Deposits: Higher Fed Funds rate +0.02 - 2MM Deposit cost: Higher rates on larger MMIAs -0.01 - 2MM Wholesale funding: Higher rates & balance -0.01 $546MM 3Q17 3.29% 26
~95 ~150 ~195 ~195 ~215 ~255 Up 100 bps Addl. $3B Deposit Decline Addl. 20% Increase in Beta Addl. $1B Deposit Decline Standard Model Addl. ~3% Loan Growth Interest Rate Sensitivity Remain well positioned for rising rates 9/30/17 ? For methodology see the Company’s Form 10-Q, as filed with the SEC. Estimates are based on simulation modeling analysis. Estimated Net Interest Income: Annual (12 month) Sensitivities Based on Various Assumptions Additional Scenarios are Relative to 3Q17 Standard Model ($ in millions) 0.1 Interest Rates 200 bps gradual, non-parallel rise Loan Balances Modest increase Deposit Balances Moderate decrease Deposit Pricing (Beta) Historical price movements with short-term rates Securities Portfolio Held flat with prepayment reinvestment Loan Spreads Held at current levels MBS Prepayments Third-party projections and historical experience Hedging (Swaps) No additions modeled Standard Model Assumptions 27 Securities Portfolio ($ in billions) Securities Portfolio Stable Replaced prepays at slightly higher yield 9.4 9.4 9.3 9.3 9.4 9.4 9.5 12.4 12.3 12.2 12.2 12.2 12.4 12.3 2.01 2.01 2.02 2.06 2.06 3Q16 4Q16 1Q17 2Q17 3Q17 2Q17 3Q17 Treasury Securities & Other Mortgage-backed Securities (MBS) Securities Yields Average Balances Duration of 3.2 years1 ? Extends to 3.8 years under a 200 bps instantaneous rate increase1 Net unrealized pre-tax loss of $24MM2 Net unamortized premium of $23MM3 GNMA ~56% of MBS portfolio 9/30/17 ? 1Estimated as of 9/3017. Excludes auction rate securities (ARS). ? 2Net unrealized pre-tax gain/loss on the available-for-sale (AFS) portfolio ? 3Net unamortized premium on the MBS portfolio 28 Period-end
Noninterest Income Stable GEAR Up success evident in card fee growth 3Q17 compared to 2Q17 ? 1Estimated as of 12/04/17 272 267 271 276 275 784 822 3Q16 4Q16 1Q17 2Q17 3Q17 YTD 3Q16 YTD 3Q17 Noninterest Income ($ in millions) + $ 5MM Card fees - $ 3MM Fiduciary income - $ 2MM Customer derivative income (Other) + $ 3MM Bank-owned life insurance - $ 3MM Principal investing & warrants (Other) 29 GEAR Up remained on track1 YTD customer-driven fees increased $32MM Noninterest Expenses Well Controlled Efficiency ratio improves to 56% 3Q17 compared to 2Q17 ? 1Estimated as of 12/04/17 ? 2Noninterest expenses, including restructuring charges, as a percentage of the sum of net interest income (FTE) & noninterest income excluding net securities gains (losses) + $ 6MM Salaries & benefits + Temporary contract labor + One additional day + $ 5MM Technology (Software & Equipment) + $ 4MM Outside processing fees (card-driven) - $ 7MM Restructuring Noninterest Expenses ($ in millions) 30 20 20 11 14 7 73 32 493 461 457 457 463 1,469 1,377 3Q16 4Q16 1Q17 2Q17 3Q17 YTD 3Q16 YTD 3Q17 Restructuring GEAR Up savings remained on track1 Efficiency Ratio2 (In percentage points) 68.15 63.58 61.63 58.63 56.24 3Q16 4Q16 1Q17 2Q17 3Q17
