Comerica 8K Second Quarter 2022 Net Income of $261 Million, $1.92 Per Share | CMA 20 Jul 22

SECOND QUARTER 2022 NET INCOME OF $261 MILLION, $1.92 PER SHARE

Earnings Per Share Increased 40% Over First Quarter 2022

Strong Revenue Growth, Solid Expense Control and Excellent Credit Quality

Benefits from Higher Interest Rates, Strong Loan Growth and Liquidity Deployment

ROE of 17% and Efficiency Ratio of 58%

"Our second quarter earnings per share increased 40% over the first quarter and revenue grew 18%,” said Curt C. Farmer, Comerica Chairman and Chief Executive Officer. “These results reflect the rising rate environment, including prudent actions taken to lock in higher rates. In addition, loan growth in the second quarter was one of the highest in our history, with increases in nearly every business line. Credit quality was excellent and fee income increased 10%. Higher revenue, combined with careful expense management as we continue to invest in our colleagues and platforms, resulted in a significant improvement in our efficiency ratio to 58%. Overall, it was a strong quarter with a return on equity of 17%. While there is a great deal of economic uncertainty, we feel positive about the path we are on."


(dollar amounts in millions, except per share data)	2nd Qtr '22			1st Qtr '22			2nd Qtr '21
FINANCIAL RESULTS
Net interest income	$	561		$	456		$	465
Provision for credit losses	10			(11)			(135)
Noninterest income	268			244			284
Noninterest expenses	482			473			463
Pre-tax income	337			238			421
Provision for income taxes	76			49			93
Net income	$	261		$	189		$	328
Diluted earnings per common share	$	1.92		$	1.37		$	2.32


Average loans	50,027			48,273			49,828
Average deposits	77,589			79,103			75,520
Return on average assets	1.18		%	0.84		%	1.50		%
Return on average common shareholders' equity	16.72			10.10			17.10
Net interest margin	2.74			2.19			2.29
Efficiency ratio (a)	58.03			66.91			61.72
Common equity Tier 1 capital ratio (b)	9.72			9.93			10.35
Tier 1 capital ratio (b)	10.24			10.48			10.93
Common equity ratio	6.95			7.45			8.53
Common shareholders' equity per share of common stock	$	46.19		$	50.80		$	56.28
Tangible common equity per share of common stock (c)	41.25			45.86			51.43

(a)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding 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, 2022 ratios are estimated.

(c)See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios.

Second Quarter 2022 Compared to First Quarter 2022 Overview

Balance sheet items discussed in terms of average balances unless otherwise noted.

Loans increased $1.8 billion to $50.0 billion.

•Growth in nearly every line of business, notably $401 million in National Dealer Services, $395 million in general Middle Market, $341 million in Corporate Banking and $298 million in Equity Fund Services. Commercial Real Estate decreased $142 million.

•Paycheck Protection Program (PPP) loans declined $186 million to $149 million.

•Average yield on loans increased 42 basis points to 3.64%, primarily driven by higher short-term rates.

Securities increased $1.7 billion to $19.0 billion.

•Increase of $1.8 billion in mortgage-backed securities reflected continued deployment of excess liquidity to reduce asset sensitivity, partially offset by a decrease of $103 million in Treasury securities.

•Average yield on securities increased 18 basis points to 1.92% due to higher yields on purchases and reinvestments.

Deposits decreased $1.5 billion to $77.6 billion.

•Interest-bearing and noninterest-bearing deposits decreased $1.0 billion and $501 million, respectively, due to strategic deposit management as well as customers utilizing balances to fund business activities. Highly rate- sensitive businesses, such as Municipalities and Financial Institutions (both part of general Middle Market), Corporate Banking, National Dealer Services and Technology and Life Sciences largely contributed to the decline, partly offset by growth in Wealth Management and Retail deposits.

•The average cost of interest-bearing deposits remained stable at 5 basis points.

Net interest income increased $105 million to $561 million.

•Driven by the benefit of higher short-term rates as well as growth in loan and securities balances.

•Net interest margin increased 55 basis points to 2.74%, reflecting higher rates and a decrease in lower-yielding deposits held with the Federal Reserve Bank.

Provision for credit losses increased to an expense of $10 million from a benefit of $11 million.

•The allowance for credit losses increased $10 million to $609 million at June 30, 2022, reflecting loan growth, strong credit metrics and an uncertain economic environment. As a percentage of total loans, the allowance for credit losses was 1.18%, a decrease of 3 basis points.

Noninterest income increased $24 million to $268 million.

•Increases of $8 million each in commercial lending fees (mostly syndication agent fees) and warrant-related income, $7 million in derivative income (mostly due to a $5 million increase in credit valuation adjustments) and $4 million in fiduciary income, partially offset by a $7 million decrease in deferred compensation asset returns (offset in noninterest expenses).

Noninterest expenses increased $9 million to $482 million.

•Increases of $8 million in certain technology-related costs and $5 million in salaries and benefits expense, as well as increases of $2 million each in litigation-related and occupancy expenses, partially offset by a decrease of $5 million in operational losses and a $4 million refund related to a favorable state tax ruling.

◦Technology-related costs included consulting, software and equipment expenses.

◦Salaries and benefits expense included increases of $17 million in performance-based compensation and $4 million each in contract labor, staff insurance and merit increases, partially offset by a $19 million net decrease from seasonal items and $7 million in deferred compensation expense (offset in other noninterest income). Seasonal items included decreases of $18 million in annual stock-based compensation and $5 million in payroll taxes, partially offset by increases of $2 million each in 401K expense and one additional day.

◦Included $7 million of expenses for asset impairments and consulting fees (reported in other noninterest expenses) as well as severance costs and contract labor (reported in salaries and benefits) for certain modernization initiatives related to transformation of the retail banking delivery model, alignment of corporate facilities and optimization of technology platform.

Capital position remained solid with a common equity Tier 1 capital ratio of 9.72% and a Tier 1 capital ratio of 10.24%.

•Declared dividends of $89 million on common stock and $5 million on preferred stock.

Second Quarter 2022 Compared to Second Quarter 2021 Overview

Balance sheet items discussed in terms of average balances.

Loans were relatively stable at $50.0 billion, including a $3.3 billion decline in PPP loans.

•Increases in Corporate Banking, Equity Fund Services, general Middle Market and Environmental Services were mostly offset by decreases in Mortgage Banker Finance, Business Banking, Personal Banking and Commercial Real Estate.

•Average yield on loans increased 39 basis points, primarily reflecting the increase in short-term rates, partially offset by the net impact of PPP loans.

Securities increased $3.6 billion, or 24%.

•Reflects investment of a portion of excess liquidity into mortgage-backed securities, partly offset by maturities of Treasury securities.

•Average yield on securities increased 10 basis points, reflecting higher yields on reinvestments.

Deposits increased $2.1 billion, or 3%.

•Most business lines experienced growth as noninterest-bearing deposits increased $2.6 billion, partially offset by a decrease of $509 million in interest-bearing deposits, due to customers' solid profitability and capital markets activity as well as the liquidity injected into the economy through fiscal and monetary actions.

•The average cost of interest-bearing deposits decreased 1 basis point, reflecting prudent management of relationship pricing.

Net interest income increased $96 million.

•Higher short-term rates and volume of earning assets, partially offset by the net impact of PPP loans.

Provision for credit losses increased to an expense of $10 million from a benefit of $135 million.

•The allowance for credit losses decreased $74 million, primarily reflecting strong credit quality and sustained improvements in the economic forecast. As a percentage of total loans, the allowance for credit losses decreased 18 basis points.

Noninterest income decreased $16 million.

•Decreases in deferred compensation asset returns (offset in noninterest expenses) and card fees (higher activity in 2021 from stimulus payments), partially offset by increases in derivative income, service charges on deposit accounts, commercial lending fees and bank-owned life insurance.

Noninterest expenses increased $19 million.

•Increases in salaries and benefits expense, consulting fees, software expense and operational losses, partially offset by decreases in outside processing fee expense and litigation-related expenses as well as a refund from a favorable state tax ruling received in second quarter 2022.

Net Interest Income

Balance sheet items presented and discussed in terms of average balances.


(dollar amounts in millions)	2nd Qtr '22			1st Qtr '22			2nd Qtr '21
Net interest income	$	561		$	456		$	465
Net interest margin	2.74		%	2.19		%	2.29		%
Selected balances:
Total earning assets	$	80,093		$	83,570		$	81,533
Total loans	50,027			48,273			49,828
Total investment securities	19,029			17,327			15,403
Federal Reserve Bank deposits	10,409			17,267			15,701

Total deposits	77,589			79,103			75,520
Total noninterest-bearing deposits	42,918			43,419			40,340

Medium- and long-term debt	2,656			2,767			2,858

Net interest income increased $105 million, and net interest margin increased 55 basis points compared to first quarter 2022.

•Interest income on loans increased $71 million and improved net interest margin by 29 basis points, due to higher short-term rates (+$52 million, +26 basis points), higher loan balances (+$15 million, +3 basis points) and one additional day in the quarter (+$4 million).

•Interest income on investment securities increased $23 million and improved net interest margin by 1 basis point due to portfolio growth and higher short-term rates.

•Interest income on short-term investments increased $14 million and improved net interest margin by 26 basis points due to higher short-term rates (+$29 million, +15 basis points) as well as a decrease of $6.9 billion in lower-yielding deposits with the Federal Reserve (-$15 million, +11 basis points).

•Interest expense on medium- and long-term debt increased $3 million and reduced net interest margin by 1 basis point.

The net impact of higher rates to the second quarter 2022 net interest income was an increase of $82 million and 42 basis points to the net interest margin.

Credit Quality

"Credit quality remained excellent in the second quarter with no net charge-offs and declines in criticized and nonaccrual loans,” said Farmer. “Strong credit metrics, loan growth and economic uncertainty resulted in a relatively stable allowance for credit losses at 1.18% of loans and a provision of only $10 million. The allowance to nonaccrual loans remained strong at 2.3 times. Overall, our customers have been able to manage through the challenging environment, while performing well and maintaining strong balance sheets."


(dollar amounts in millions)	2nd Qtr '22			1st Qtr '22			2nd Qtr '21
Credit-related charge-offs	$	13		$	18		$	8
Recoveries	13			10			19
Net credit-related (recoveries) charge-offs	—			8			(11)
Net credit-related charge-offs/Average total loans	—		%	0.06		%	(0.09		%)
Provision for credit losses	$	10		$	(11)		$	(135)

Nonperforming loans	265			273			319
Nonperforming assets (NPAs)	266			274			320
NPAs/Total loans and foreclosed property	0.52		%	0.55		%	0.64		%
Loans past due 90 days or more and still accruing	$	12		$	26		$	27
Allowance for loan losses	563			554			652
Allowance for credit losses on lending-related commitments (a)	46			45			31
Total allowance for credit losses	609			599			683


Allowance for credit losses/Period-end total loans	1.18		%	1.21		%	1.36		%
Allowance for credit losses/Period-end total loans excluding PPP loans	1.19			1.22			1.44
Allowance for credit losses/Nonperforming loans	2.3x			2.2x			2.1x

(a) Included in accrued expenses and other liabilities on the Consolidated Balance Sheets.

•The allowance for credit losses increased $10 million to $609 million at June 30, 2022, or 1.18% of total loans, reflecting loan growth, strong credit metrics and an uncertain economic environment.

•Criticized loans decreased $113 million to $1.5 billion, or 3% 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, Business Banking, Energy and Corporate Banking, partially offset by an increase in Technology and Life Sciences.

•Nonperforming assets decreased $8 million to $266 million, or 0.52% of total loans and foreclosed property, compared to 0.55% in first quarter 2022.

◦Nonaccrual retail loans decreased by $7 million.

•There were no net charge-offs compared to $8 million in first quarter 2022.

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 report. 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, 2022. A discussion of business segment year-to-date results will be included in Comerica's Second Quarter 2022 Form 10-Q.

Conference Call and Webcast

Comerica will host a conference call to review second quarter 2022 financial results at 7 a.m. CT Wednesday, July 20, 2022. Interested parties may access the conference call by calling (877) 336-4440 or (409) 207-6984 (Event ID No. 4619582). The call and supplemental financial information, as well as a replay of the Webcast, can also be accessed via Comerica's "Investor Relations" page at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Forward-looking Statements

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on 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 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 (unfavorable developments concerning credit quality; declines or other changes in the businesses or industries of Comerica's customers; and changes in customer behavior); market risks (changes in monetary and fiscal policies; fluctuations in interest rates and their impact on deposit pricing; and transitions away from LIBOR 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); 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 (impacts from the COVID-19 global pandemic; changes in general economic, political or industry conditions; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events; changes in accounting standards and the critical nature of Comerica's accounting policies; and the volatility of Comerica’s stock price). 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 13 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2021. 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 Hogan			Darlene P. Persons
(214) 462-6657			(214) 462-6831

Louis H. Mora			Morgan Mathers
(214) 462-6669			(214) 462-6731


CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(in millions, except per share data)	2022			2022			2021			2022			2021
PER COMMON SHARE AND COMMON STOCK DATA
Diluted earnings per common share	$	1.92		$	1.37		$	2.32		$	3.29		$	4.76

Cash dividends declared	0.68			0.68			0.68			1.36			1.36
Average diluted shares (in thousands)	132,446			132,912			138,070			132,687			139,566
PERFORMANCE RATIOS
Return on average common shareholders' equity	16.72		%	10.10		%	17.10		%	13.13		%	17.57		%
Return on average assets	1.18			0.84			1.50			1.01			1.59
Efficiency ratio (a)	58.03			66.91			61.72			62.11			62.12
CAPITAL
Common equity tier 1 capital (b), (c)	$	7,348		$	7,169		$	7,004
Tier 1 capital (b), (c)	7,742			7,563			7,398
Risk-weighted assets (b)	75,584			72,195			67,685
Common equity tier 1 capital ratio (b), (c)	9.72		%	9.93		%	10.35		%
Tier 1 capital ratio (b), (c)	10.24			10.48			10.93
Total capital ratio (b)	11.75			12.04			12.95
Leverage ratio (b)	8.63			8.25			8.45
Common shareholders' equity per share of common stock	$	46.19		$	50.80		$	56.28
Tangible common equity per share of common stock (c)	41.25			45.86			51.43
Common equity ratio	6.95		%	7.45		%	8.53		%
Tangible common equity ratio (c)	6.26			6.77			7.85
AVERAGE BALANCES
Commercial loans	$	29,918		$	28,275		$	30,042		$	29,101		$	30,502
Real estate construction loans	2,332			2,659			4,191			2,494			4,164
Commercial mortgage loans	11,947			11,647			10,093			11,798			10,022
Lease financing	642			635			578			639			585
International loans	1,303			1,220			1,034			1,262			999
Residential mortgage loans	1,773			1,785			1,817			1,779			1,813
Consumer loans	2,112			2,052			2,073			2,082			2,121
Total loans	50,027			48,273			49,828			49,155			50,206
Earning assets	80,093			83,570			81,533			81,822			80,036
Total assets	88,810			91,150			87,860			89,974			86,218
Noninterest-bearing deposits	42,918			43,419			40,340			43,167			38,858
Interest-bearing deposits	34,671			35,684			35,180			35,175			34,609
Total deposits	77,589			79,103			75,520			78,342			73,467
Common shareholders' equity	6,131			7,344			7,563			6,734			7,654
Total shareholders' equity	6,525			7,738			7,957			7,128			8,048
NET INTEREST INCOME
Net interest income	$	561		$	456		$	465		$	1,017		$	908
Net interest margin	2.74		%	2.19		%	2.29		%	2.47		%	2.29		%
CREDIT QUALITY
Nonperforming assets	$	266		$	274		$	320
Loans past due 90 days or more and still accruing	12			26			27


Net credit-related charge-offs (recoveries)	—			8			(11)			$	8		$	(8)
Allowance for loan losses	563			554			652
Allowance for credit losses on lending-related commitments	46			45			31
Total allowance for credit losses	609			599			683
Allowance for credit losses as a percentage of total loans	1.18		%	1.21		%	1.36		%
Net loan charge-offs (recoveries) as a percentage of average total loans	—			0.06			(0.09)			0.03		%	(0.03		%)
Nonperforming assets as a percentage of total loans and foreclosed property	0.52			0.55			0.64
Allowance for credit losses as a multiple of total nonperforming loans	2.3x			2.2x			2.1x
OTHER KEY INFORMATION
Number of banking centers	433			433			431
Number of employees - full time equivalent	7,436			7,484			7,532

(a) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding 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, 2022 ratios are estimated.


CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries

	June 30,		March 31,		December 31,		June 30,
(in millions, except share data)	2022		2022		2021		2021
	(unaudited)		(unaudited)				(unaudited)
ASSETS
Cash and due from banks	$	1,631	$	1,466	$	1,236	$	1,008

Interest-bearing deposits with banks	5,902		12,084		21,443		15,493
Other short-term investments	160		181		197		183
Investment securities available-for-sale	20,829		18,810		16,986		15,837

Commercial loans	31,259		29,562		29,366		30,207
Real estate construction loans	2,465		2,301		2,948		3,172
Commercial mortgage loans	11,855		11,992		11,255		11,334
Lease financing	653		644		640		589
International loans	1,291		1,248		1,208		1,036
Residential mortgage loans	1,753		1,769		1,771		1,807
Consumer loans	2,178		2,047		2,097		2,083
Total loans	51,454		49,563		49,285		50,228
Allowance for loan losses	(563)		(554)		(588)		(652)
Net loans	50,891		49,009		48,697		49,576
Premises and equipment	422		444		454		454
Accrued income and other assets	7,054		7,171		5,603		5,804
Total assets	$	86,889	$	89,165	$	94,616	$	88,355
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	42,308	$	42,677	$	45,800	$	40,514
Money market and interest-bearing checking deposits	28,409		29,746		31,349		30,319
Savings deposits	3,342		3,300		3,167		3,095
Customer certificates of deposit	1,686		1,854		1,973		2,115

Foreign office time deposits	20		31		50		23
Total interest-bearing deposits	33,457		34,931		36,539		35,552
Total deposits	75,765		77,608		82,339		76,066

Accrued expenses and other liabilities	2,059		1,839		1,584		1,504
Medium- and long-term debt	2,630		2,682		2,796		2,854
Total liabilities	80,454		82,129		86,719		80,424
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 shares	1,141		1,141		1,141		1,141
Capital surplus	2,204		2,194		2,175		2,163
Accumulated other comprehensive loss	(1,954)		(1,173)		(212)		(120)
Retained earnings	10,752		10,585		10,494		10,202
Less cost of common stock in treasury - 97,387,508 shares at 6/30/22, 97,435,493 shares at 3/31/22, 97,476,872 shares at 12/31/21 and 94,247,402 shares at 6/30/21	(6,102)		(6,105)		(6,095)		(5,849)
Total shareholders' equity	6,435		7,036		7,897		7,931
Total liabilities and shareholders' equity	$	86,889	$	89,165	$	94,616	$	88,355


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Comerica Incorporated and Subsidiaries

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share data)	2022		2021		2022		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME
Interest and fees on loans	$	454	$	404	$	837	$	790
Interest on investment securities	100		70		177		139
Interest on short-term investments	23		5		32		9
Total interest income	577		479		1,046		938
INTEREST EXPENSE
Interest on deposits	4		5		8		12

Interest on medium- and long-term debt	12		9		21		18
Total interest expense	16		14		29		30
Net interest income	561		465		1,017		908
Provision for credit losses	10		(135)		(1)		(317)
Net interest income after provision for credit losses	551		600		1,018		1,225
NONINTEREST INCOME
Card fees	69		84		138		155
Fiduciary income	62		60		120		113
Service charges on deposit accounts	50		47		98		95
Commercial lending fees	30		27		52		45
Derivative income	29		22		51		52
Bank-owned life insurance	12		9		25		20
Letter of credit fees	9		10		18		20
Brokerage fees	4		4		8		8

Other noninterest income	3		21		2		46
Total noninterest income	268		284		512		554
NONINTEREST EXPENSES
Salaries and benefits expense	294		277		583		559
Outside processing fee expense	62		71		124		135
Software expense	41		38		80		77
Occupancy expense	40		38		78		77
Equipment expense	13		13		24		25
Advertising expense	8		9		15		15
FDIC insurance expense	8		7		16		13
Other noninterest expenses	16		10		35		9
Total noninterest expenses	482		463		955		910
Income before income taxes	337		421		575		869
Provision for income taxes	76		93		125		191
NET INCOME	261		328		450		678
Less:
Income allocated to participating securities	1		2		2		3
Preferred stock dividends	5		5		11		11
Net income attributable to common shares	$	255	$	321	$	437	$	664
Earnings per common share:
Basic	$	1.94	$	2.35	$	3.33	$	4.81
Diluted	1.92		2.32		3.29		4.76
Comprehensive (loss) income	(520)		313		(1,292)		494
Cash dividends declared on common stock	89		92		178		187
Cash dividends declared per common share	0.68		0.68		1.36		1.36


CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Second		First		Fourth		Third		Second		Second Quarter 2022 Compared to:
	Quarter		Quarter		Quarter		Quarter		Quarter		First Quarter 2022				Second Quarter 2021
(in millions, except per share data)	2022		2022		2021		2021		2021		Amount		Percent		Amount		Percent
INTEREST INCOME
Interest and fees on loans	$	454	$	383	$	393	$	411	$	404	$	71	19	%	$	50	12	%
Interest on investment securities	100		77		71		70		70		23		28		30		44
Interest on short-term investments	23		9		10		8		5		14		n/m		18		n/m
Total interest income	577		469		474		489		479		108		23		98		21
INTEREST EXPENSE
Interest on deposits	4		4		5		5		5		—		—		(1)		(16)

Interest on medium- and long-term debt	12		9		8		9		9		3		40		3		47
Total interest expense	16		13		13		14		14		3		30		2		22
Net interest income	561		456		461		475		465		105		23		96		21
Provision for credit losses	10		(11)		(25)		(42)		(135)		21		n/m		145		n/m
Net interest income after provision for credit losses	551		467		486		517		600		84		18		(49)		(8)
NONINTEREST INCOME
Card fees	69		69		71		72		84		—		—		(15)		(18)
Fiduciary income	62		58		60		58		60		4		6		2		3
Service charges on deposit accounts	50		48		50		50		47		2		5		3		5
Commercial lending fees	30		22		28		31		27		8		30		3		8
Derivative income	29		22		27		20		22		7		30		7		29
Bank-owned life insurance	12		13		11		12		9		(1)		(9)		3		32
Letter of credit fees	9		9		10		10		10		—		—		(1)		(6)
Brokerage fees	4		4		3		3		4		—		—		—		—

Other noninterest income	3		(1)		29		24		21		4		n/m		(18)		(84)
Total noninterest income	268		244		289		280		284		24		10		(16)		(6)
NONINTEREST EXPENSES
Salaries and benefits expense	294		289		292		282		277		5		2		17		6
Outside processing fee expense	62		62		66		65		71		—		—		(9)		(12)
Software expense	41		39		38		40		38		2		6		3		5
Occupancy expense	40		38		44		40		38		2		5		2		5
Equipment expense	13		11		12		13		13		2		9		—		—
Advertising expense	8		7		10		10		9		1		13		(1)		(7)
FDIC insurance expense	8		8		5		4		7		—		—		1		28
Other noninterest expenses	16		19		19		11		10		(3)		(13)		6		72
Total noninterest expenses	482		473		486		465		463		9		2		19		4
Income before income taxes	337		238		289		332		421		99		41		(84)		(20)
Provision for income taxes	76		49		61		70		93		27		53		(17)		(18)
NET INCOME	261		189		228		262		328		72		39		(67)		(20)
Less:
Income allocated to participating securities	1		1		1		1		2		—		—		(1)		(9)
Preferred stock dividends	5		6		6		6		5		(1)		—		—		—
Net income attributable to common shares	$	255	$	182	$	221	$	255	$	321	$	73	40	%	$	(66)	(21	%)
Earnings per common share:
Basic	$	1.94	$	1.39	$	1.69	$	1.92	$	2.35	$	0.55	40	%	$	(0.41)	(17	%)
Diluted	1.92		1.37		1.66		1.90		2.32		0.55		40		(0.40)		(17)
Comprehensive (loss) income	(520)		(772)		223		175		313		252		(33)		(833)		n/m
Cash dividends declared on common stock	89		89		89		89		92		—		—		(3)		(7)
Cash dividends declared per common share	0.68		0.68		0.68		0.68		0.68		—		—		—		—

n/m - not meaningful


ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited)
Comerica Incorporated and Subsidiaries

	2022						2021
(in millions)	2nd Qtr			1st Qtr				4th Qtr			3rd Qtr			2nd Qtr
Balance at beginning of period:
Allowance for loan losses	$	554		$	588			$	609		$	652		$	777
Allowance for credit losses on lending-related commitments	45			30				30			31			30
Allowance for credit losses	599			618				639			683			807

Loan charge-offs:
Commercial	13			15				14			24			7
Real estate construction	—			1				—			—			—
Commercial mortgage	—			1				2			—			—

International	—			—				3			2			—

Consumer	—			1				1			—			1
Total loan charge-offs	13			18				20			26			8

Recoveries on loans previously charged-off:
Commercial	12			8				23			22			18

Commercial mortgage	—			1				—			—			—

International	—			—				—			—			1
Residential mortgage	—			—				1			1			—
Consumer	1			1				—			1			—
Total recoveries	13			10				24			24			19
Net loan charge-offs (recoveries)	—			8				(4)			2			(11)
Provision for credit losses:
Provision for loan losses	9			(26)				(25)			(41)			(136)
Provision for credit losses on lending-related commitments	1			15				—			(1)			1
Provision for credit losses	10			(11)				(25)			(42)			(135)

Balance at end of period:
Allowance for loan losses	563			554				588			609			652
Allowance for credit losses on lending-related commitments	46			45				30			30			31
Allowance for credit losses	$	609		$	599			$	618		$	639		$	683



Allowance for credit losses as a percentage of total loans	1.18		%	1.21		%		1.26		%	1.33		%	1.36		%
Allowance for credit losses as a percentage of total loans excluding PPP loans	1.19			1.22				1.27			1.35			1.44
Net loan charge-offs (recoveries) as a percentage of average total loans	—			0.06				(0.03)			0.01			(0.09)


NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries

	2022						2021
(in millions)	2nd Qtr			1st Qtr				4th Qtr			3rd Qtr			2nd Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial	$	161		$	163			$	173		$	200		$	221
Real estate construction	4			4				6			6			4
Commercial mortgage	29			27				32			30			31

International	5			5				5			8			—
Total nonaccrual business loans	199			199				216			244			256
Retail loans:
Residential mortgage	49			53				36			35			41
Consumer:
Home equity	13			14				12			12			14
Other consumer	1			3				—			—			—
Total nonaccrual retail loans	63			70				48			47			55
Total nonaccrual loans	262			269				264			291			311
Reduced-rate loans	3			4				4			4			8
Total nonperforming loans	265			273				268			295			319
Foreclosed property	1			1				1			1			—
Other repossessed assets	—			—				—			—			1
Total nonperforming assets	$	266		$	274			$	269		$	296		$	320
Nonperforming loans as a percentage of total loans	0.52		%	0.55		%		0.54		%	0.61		%	0.64		%
Nonperforming assets as a percentage of total loans and foreclosed property	0.52			0.55				0.55			0.62			0.64
Allowance for credit losses as a multiple of total nonperforming loans	2.3x			2.2x				2.3x			2.2x			2.1x
Loans past due 90 days or more and still accruing	$	12		$	26			$	27		$	12		$	27
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period	$	269		$	264			$	291		$	311		$	314
Loans transferred to nonaccrual (a)	30			41				15			55			62
Nonaccrual loan gross charge-offs	(13)			(18)				(20)			(26)			(8)
Loans transferred to accrual status (a)	—			(4)				—			(8)			—
Nonaccrual loans sold	(9)			—				—			(9)			—
Payments/other (b)	(15)			(14)				(22)			(32)			(57)
Nonaccrual loans at end of period	$	262		$	269			$	264		$	291		$	311

(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.


ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
	Six Months Ended
	June 30, 2022						June 30, 2021
	Average				Average		Average				Average
(dollar amounts in millions)	Balance		Interest		Rate		Balance		Interest		Rate
Commercial loans (a) (b)	$	29,101	$	514	3.56	%	$	30,502	$	507	3.36	%
Real estate construction loans	2,494		48		3.82		4,164		69		3.34
Commercial mortgage loans	11,798		183		3.13		10,022		142		2.86
Lease financing (c)	639		9		2.95		585		(8)		(2.87)
International loans	1,262		21		3.38		999		16		3.19
Residential mortgage loans	1,779		25		2.83		1,813		28		3.11
Consumer loans	2,082		37		3.55		2,121		36		3.39
Total loans	49,155		837		3.43		50,206		790		3.17
Mortgage-backed securities (d)	15,321		163		1.99		10,657		105		1.98
U.S. Treasury securities (e)	2,862		14		0.99		4,493		34		1.56
Total investment securities	18,183		177		1.83		15,150		139		1.86
Interest-bearing deposits with banks	14,302		32		0.44		14,507		9		0.11
Other short-term investments	182		—		0.42		173		—		0.24
Total earning assets	81,822		1,046		2.54		80,036		938		2.36
Cash and due from banks	1,434						976
Allowance for loan losses	(568)						(835)
Accrued income and other assets	7,286						6,041
Total assets	$	89,974					$	86,218
Money market and interest-bearing checking deposits	$	30,008	6		0.05		$	29,505	10		0.07
Savings deposits	3,272		—		0.02		2,911		—		0.02
Customer certificates of deposit	1,847		2		0.18		2,141		2		0.23

Foreign office time deposits	48		—		0.34		52		—		0.09
Total interest-bearing deposits	35,175		8		0.05		34,609		12		0.07
Short-term borrowings	3		—		0.56		2		—		0.05
Medium- and long-term debt	2,711		21		1.55		3,232		18		1.07
Total interest-bearing sources	37,889		29		0.16		37,843		30		0.15
Noninterest-bearing deposits	43,167						38,858
Accrued expenses and other liabilities	1,790						1,469
Shareholders' equity	7,128						8,048
Total liabilities and shareholders' equity	$	89,974					$	86,218
Net interest income/rate spread			$	1,017	2.38				$	908	2.21


Impact of net noninterest-bearing sources of funds					0.09						0.08
Net interest margin (as a percentage of average earning assets)					2.47	%					2.29	%

(a)Interest income on commercial loans included $47 million and $48 million of business loan swap income for the six months ended June 30, 2022 and 2021, respectively.

(b)Included PPP loans with average balances of $242 million and $3.5 billion, interest income of $9 million and $62 million and average yields of 7.50% and 3.57% for the six months ended June 30, 2022 and 2021, respectively.

(c)The six months ended June 30, 2021 included residual value adjustments totaling $17 million, or a 7 basis point impact to average loan yield.

(d)Average balances included $(1.1) billion and $124 million of unrealized gains and losses for the six months ended June 30, 2022 and 2021, respectively; yields calculated gross of these unrealized gains and losses.

(e)Average balances included $(88) million and $45 million of unrealized gains and losses for the six months ended June 30, 2022 and 2021, respectively; yields calculated gross of these unrealized gains and losses.


ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
	Three Months Ended
	June 30, 2022						March 31, 2022						June 30, 2021
	Average				Average		Average				Average		Average				Average
(dollar amounts in millions)	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Commercial loans (a) (b)	$	29,918	$	282	3.77	%	$	28,275	$	232	3.34	%	$	30,042	$	255	3.38	%
Real estate construction loans	2,332		24		4.05		2,659		24		3.62		4,191		34		3.30
Commercial mortgage loans	11,947		99		3.33		11,647		84		2.92		10,093		72		2.87
Lease financing	642		4		3.01		635		5		2.89		578		4		2.82
International loans	1,303		12		3.66		1,220		9		3.09		1,034		8		3.21
Residential mortgage loans	1,773		14		3.16		1,785		11		2.51		1,817		14		3.09
Consumer loans	2,112		19		3.64		2,052		18		3.47		2,073		17		3.37
Total loans	50,027		454		3.64		48,273		383		3.22		49,828		404		3.25
Mortgage-backed securities (c)	16,218		93		2.07		14,413		70		1.88		11,053		53		1.94
U.S. Treasury securities (d)	2,811		7		0.98		2,914		7		1.00		4,350		17		1.53
Total investment securities	19,029		100		1.92		17,327		77		1.74		15,403		70		1.82
Interest-bearing deposits with banks	10,861		23		0.85		17,781		9		0.19		16,126		5		0.11
Other short-term investments	176		—		0.66		189		—		0.19		176		—		0.20
Total earning assets	80,093		577		2.83		83,570		469		2.26		81,533		479		2.36
Cash and due from banks	1,421						1,446						982
Allowance for loan losses	(555)						(581)						(755)
Accrued income and other assets	7,851						6,715						6,100
Total assets	$	88,810					$	91,150					$	87,860
Money market and interest-bearing checking deposits	$	29,513	3		0.05		$	30,506	3		0.04		$	29,993	4		0.06
Savings deposits	3,330		—		0.02		3,213		—		0.01		3,021		—		0.01
Customer certificates of deposit	1,774		1		0.18		1,921		1		0.19		2,126		1		0.22
Other time deposits	1		—		0.30		—		—		—		—		—		—
Foreign office time deposits	53		—		0.54		44		—		0.11		40		—		0.10
Total interest-bearing deposits	34,671		4		0.05		35,684		4		0.05		35,180		5		0.06
Short-term borrowings	5		—		0.64		1		—		0.13		2		—		0.05
Medium- and long-term debt	2,656		12		1.85		2,767		9		1.27		2,858		9		1.18
Total interest-bearing sources	37,332		16		0.19		38,452		13		0.14		38,040		14		0.15
Noninterest-bearing deposits	42,918						43,419						40,340
Accrued expenses and other liabilities	2,035						1,541						1,523
Shareholders' equity	6,525						7,738						7,957
Total liabilities and shareholders' equity	$	88,810					$	91,150					$	87,860
Net interest income/rate spread			$	561	2.64				$	456	2.12				$	465	2.21
Impact of net noninterest-bearing sources of funds					0.10						0.07						0.08
Net interest margin (as a percentage of average earning assets)					2.74	%					2.19	%					2.29	%

(a)Interest income on commercial loans included $25 million, $22 million and $24 million of business loan swap income for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

(b)Included PPP loans with average balances of $149 million, $335 million and $3.5 billion, interest income of $4 million, $5 million and $32 million and average yields of 9.63%, 6.54% and 3.66% for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively.

(c)Average balances included $(1.7) billion, $(562) million and $91 million of unrealized gains and losses for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively; yields calculated gross of these unrealized gains and losses.

(d)Average balances included $(118) million, $(57) million and $33 million of unrealized gains and losses for the three months ended June 30, 2022, March 31, 2022 and June 30, 2021, respectively; yields calculated gross of these unrealized gains and losses.


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries

								Accumulated
	Nonredeemable		Common Stock					Other						Total
	Preferred		Shares			Capital		Comprehensive		Retained		Treasury		Shareholders'
(in millions, except per share data)	Stock		Outstanding	Amount		Surplus		(Loss) Income		Earnings		Stock		Equity
BALANCE AT MARCH 31, 2021	$	394	139.6	$	1,141	$	2,183	$	(105)	$	9,975	$	(5,436)	$	8,152

Net income	—		—	—		—		—		328		—		328
Other comprehensive loss, net of tax	—		—	—		—		(15)		—		—		(15)
Cash dividends declared on common stock ($0.68 per share)	—		—	—		—		—		(92)		—		(92)
Cash dividends declared on preferred stock	—		—	—		—		—		(5)		—		(5)
Purchase of common stock	—		(5.8)	—		(24)		—		—		(426)		(450)


Net issuance of common stock under employee stock plans	—		0.1	—		(3)		—		(4)		13		6

Share-based compensation	—		—	—		7		—		—		—		7

BALANCE AT JUNE 30, 2021	$	394	133.9	$	1,141	$	2,163	$	(120)	$	10,202	$	(5,849)	$	7,931
BALANCE AT MARCH 31, 2022	$	394	130.7	$	1,141	$	2,194	$	(1,173)	$	10,585	$	(6,105)	$	7,036

Net income	—		—	—		—		—		261		—		261
Other comprehensive loss, net of tax	—		—	—		—		(781)		—		—		(781)
Cash dividends declared on common stock ($0.68 per share)	—		—	—		—		—		(89)		—		(89)
Cash dividends declared on preferred stock	—		—	—		—		—		(5)		—		(5)


Net issuance of common stock under employee stock plans	—		0.1	—		(1)		—		—		3		2
Share-based compensation	—		—	—		11		—		—		—		11

BALANCE AT JUNE 30, 2022	$	394	130.8	$	1,141	$	2,204	$	(1,954)	$	10,752	$	(6,102)	$	6,435
BALANCE AT DECEMBER 31, 2020	$	394	139.2	$	1,141	$	2,185	$	64	$	9,727	$	(5,461)	$	8,050

Net income	—		—	—		—		—		678		—		678
Other comprehensive loss, net of tax	—		—	—		—		(184)		—		—		(184)
Cash dividends declared on common stock ($1.36 per share)	—		—	—		—		—		(187)		—		(187)
Cash dividends declared on preferred stock	—		—	—		—		—		(11)		—		(11)
Purchase of common stock	—		(5.9)	—		(24)		—		—		(429)		(453)


Net issuance of common stock under employee stock plans	—		0.6	—		(27)		—		(5)		41		9

Share-based compensation	—		—	—		29		—		—		—		29

BALANCE AT JUNE 30, 2021	$	394	133.9	$	1,141	$	2,163	$	(120)	$	10,202	$	(5,849)	$	7,931
BALANCE AT DECEMBER 31, 2021	$	394	130.7	$	1,141	$	2,175	$	(212)	$	10,494	$	(6,095)	$	7,897

Net income	—		—	—		—		—		450		—		450
Other comprehensive loss, net of tax	—		—	—		—		(1,742)		—		—		(1,742)
Cash dividends declared on common stock ($1.36 per share)	—		—	—		—		—		(178)		—		(178)
Cash dividends declared on preferred stock	—		—	—		—		—		(11)		—		(11)
Purchase of common stock	—		(0.4)	—		—		—		—		(36)		(36)


Net issuance of common stock under employee stock plans	—		0.5	—		(10)		—		(3)		29		16

Share-based compensation	—		—	—		39		—		—		—		39

BALANCE AT JUNE 30, 2022	$	394	130.8	$	1,141	$	2,204	$	(1,954)	$	10,752	$	(6,102)	$	6,435


BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries


(dollar amounts in millions)	Commercial			Retail			Wealth
Three Months Ended June 30, 2022	Bank			Bank			Management			Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	399		$	147		$	47		$	(33)	$	1	$	561
Provision for credit losses	8			(2)			4			—		—		10
Noninterest income	160			32			77			12		(13)		268
Noninterest expenses	237			173			89			—		(17)		482
Provision (benefit) for income taxes	70			2			7			(7)		4		76
Net income (loss)	$	244		$	6		$	24		$	(14)	$	1	$	261
Net credit-related charge-offs (recoveries)	$	2		$	(1)		$	(1)		$	—	$	—	$	—
Selected average balances:
Assets	$	47,451		$	2,769		$	4,963		$	21,071	$	12,556	$	88,810
Loans	43,171			2,015			4,832			—		9		50,027
Deposits	43,744			27,145			5,966			520		214		77,589
Statistical data:
Return on average assets (a)	2.00		%	0.09		%	1.52		%	n/m		n/m		1.18		%
Efficiency ratio (b)	42.38			95.87			71.82			n/m		n/m		58.03

	Commercial			Retail			Wealth
Three Months Ended March 31, 2022	Bank			Bank			Management			Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	356		$	130		$	36		$	(64)	$	(2)	$	456
Provision for credit losses	(23)			7			2			—		3		(11)
Noninterest income	132			28			72			18		(6)		244
Noninterest expenses	234			164			83			—		(8)		473
Provision (benefit) for income taxes	65			(4)			6			(12)		(6)		49
Net income (loss)	$	212		$	(9)		$	17		$	(34)	$	3	$	189
Net credit-related charge-offs (recoveries)	$	9		$	—		$	(1)		$	—	$	—	$	8
Selected average balances:
Assets	$	44,882		$	2,807		$	4,858		$	19,235	$	19,368	$	91,150
Loans	41,549			2,013			4,713			—		(2)		48,273
Deposits	46,040			26,861			5,303			680		219		79,103
Statistical data:
Return on average assets (a)	1.71		%	(0.14)		%	1.21		%	n/m		n/m		0.84		%
Efficiency ratio (b)	47.32			103.82			76.79			n/m		n/m		66.91

	Commercial			Retail			Wealth
Three Months Ended June 30, 2021	Bank			Bank			Management			Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	402		$	145		$	43		$	(127)	$	2	$	465
Provision for credit losses	(123)			(7)			(4)			—		(1)		(135)
Noninterest income	167			30			71			9		7		284
Noninterest expenses	204			173			77			1		8		463
Provision (benefit) for income taxes	111			1			9			(26)		(2)		93
Net income (loss)	$	377		$	8		$	32		$	(93)	$	4	$	328
Net credit-related (recoveries) charge-offs	$	(12)		$	1		$	—		$	—	$	—	$	(11)
Selected average balances:
Assets	$	44,283		$	3,395		$	5,063		$	17,461	$	17,658	$	87,860
Loans	42,350			2,533			4,936			—		9		49,828
Deposits	43,682			25,573			5,103			944		218		75,520
Statistical data:
Return on average assets (a)	3.21		%	0.12		%	2.40		%	n/m		n/m		1.50		%
Efficiency ratio (b)	35.99			98.06			66.85			n/m		n/m		61.72

(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 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

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 our performance trends. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.

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. Comerica believes that the presentation of tangible common equity adjusted for the impact of accumulated other comprehensive loss provides a greater understanding of ongoing operations and enhances comparability with prior periods.


	June 30,			March 31,			June 30,
(dollar amounts in millions)	2022			2022			2021
Common Equity Tier 1 Capital (a):
Tier 1 capital	$	7,742		$	7,563		$	7,398
Less:
Fixed-rate reset non-cumulative perpetual preferred stock	394			394			394
Common equity tier 1 capital	$	7,348		$	7,169		$	7,004
Risk-weighted assets	$	75,584		$	72,195		$	67,685
Tier 1 capital ratio	10.24		%	10.48		%	10.93		%
Common equity tier 1 capital ratio	9.72			9.93			10.35
Tangible Common Equity:
Total shareholders' equity	$	6,435		$	7,036		$	7,931
Less:
Fixed-rate reset non-cumulative perpetual preferred stock	394			394			394
Common shareholders' equity	$	6,041		$	6,642		$	7,537
Less:
Goodwill	635			635			635
Other intangible assets	10			11			14
Tangible common equity	$	5,396		$	5,996		$	6,888
Total assets	$	86,889		$	89,165		$	88,355
Less:
Goodwill	635			635			635
Other intangible assets	10			11			14
Tangible assets	$	86,244		$	88,519		$	87,706
Common equity ratio	6.95		%	7.45		%	8.53		%
Tangible common equity ratio	6.26			6.77			7.85
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	6,041		$	6,642		$	7,537
Tangible common equity	5,396			5,996			6,888
Shares of common stock outstanding (in millions)	131			131			134
Common shareholders' equity per share of common stock	$	46.19		$	50.80		$	56.28
Tangible common equity per share of common stock	41.25			45.86			51.43

Impact of Accumulated Other Comprehensive Loss to Tangible Common Equity:
Accumulated other comprehensive loss (AOCI)	$	(1,954)		$	(1,173)		$	(120)
Tangible common equity, excluding AOCI	7,350			7,169			7,008
Tangible common equity ratio, excluding AOCI	8.52		%	8.10		%	7.99		%
Tangible common equity per share of common stock, excluding AOCI	$	56.19		$	54.83		$	52.33

(a)June 30, 2022 ratios are estimated.

Comerica (CMA) 8-KSecond Quarter 2022 Net Income of $261 Million, $1.92 Per Share