Comerica 8K Third Quarter 2024 Net Income of $184 Million, $1.33 Per Share | CMA 18 Oct 24

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 '24			2nd Qtr '24			3rd Qtr '23
FINANCIAL RESULTS
Net interest income	$	534		$	533		$	601
Provision for credit losses	14			—			14
Noninterest income	277			291			295
Noninterest expenses	562			555			555
Pre-tax income	235			269			327
Provision for income taxes	51			63			76
Net income	$	184		$	206		$	251
Diluted earnings per common share	$	1.33		$	1.49		$	1.84


Average loans	50,861			51,071			53,987
Average deposits	63,896			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 margin	2.80			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 '24			2nd Qtr '24			3rd 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
ROA	0.92		%	1.05		%	1.12		%
Adjusted ROA	0.94			1.07			1.07
ROE	10.88			14.78			19.50
Adjusted ROE	11.22			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.

•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%.

Net Interest Income

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


(dollar amounts in millions)	3rd Qtr '24			2nd Qtr '24			3rd Qtr '23

Net interest income	$	534		$	533		$	601
Net interest margin	2.80		%	2.86		%	2.84		%
Selected balances:
Total earning assets	$	73,103		$	71,829		$	80,996
Total loans	50,861			51,071			53,987
Total investment securities	15,880			15,750			16,881
Federal Reserve Bank deposits	5,789			4,474			9,443

Total deposits	63,896			63,055			65,883
Total noninterest-bearing deposits	24,357			25,357			29,016
Short-term borrowings	77			666			8,847
Medium- and long-term debt	6,849			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.

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 '24			2nd Qtr '24			3rd Qtr '23
Charge-offs	$	23		$	28		$	14
Recoveries	12			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 property	0.50		%	0.44		%	0.29		%
Loans past due 90 days or more and still accruing	$	21		$	11		$	45
Allowance for loan losses	686			686			694
Allowance for credit losses on lending-related commitments (a)	34			31			42
Total allowance for credit losses	720			717			736


Allowance for credit losses/Period-end total loans	1.43		%	1.38		%	1.38		%

Allowance for credit losses/Nonperforming loans	2.9x			3.2x			4.8x

(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.

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.

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 Hogan			Kelly Gage
(214) 462-6657			(833) 571-0486

Louis H. Mora			Lindsey Baird
(214) 462-6669			(833) 571-0486


CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries
	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,
(in millions, except per share data)	2024			2024			2023			2024			2023
PER COMMON SHARE AND COMMON STOCK DATA
Diluted earnings per common share	$	1.33		$	1.49		$	1.84		$	3.80		$	6.24

Cash dividends declared	0.71			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' equity	10.88		%	14.78		%	19.50		%	11.58		%	21.02		%
Return on average assets	0.92			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 ratio	8.75		%	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 loans	4,205			4,553			4,294			4,642			3,786
Commercial mortgage loans	14,494			14,171			13,814			14,104			13,694
Lease financing	804			798			770			804			770
International loans	1,036			1,111			1,241			1,096			1,245
Residential mortgage loans	1,905			1,898			1,915			1,895			1,869
Consumer loans	2,244			2,248			2,232			2,254			2,281
Total loans	50,861			51,071			53,987			51,100			54,276
Earning assets	73,103			71,829			80,996			73,578			80,241
Total assets	80,231			79,207			89,150			81,016			88,229
Noninterest-bearing deposits	24,357			25,357			29,016			25,371			31,916
Interest-bearing deposits	39,539			37,698			36,867			38,716			34,093
Total deposits	63,896			63,055			65,883			64,087			66,009
Common shareholders' equity	6,546			5,454			4,984			5,898			5,286
Total shareholders' equity	6,940			5,848			5,378			6,293			5,680
NET INTEREST INCOME
Net interest income	$	534		$	533		$	601		$	1,615		$	1,930
Net interest margin	2.80		%	2.86		%	2.84		%	2.82		%	3.11		%
CREDIT QUALITY
Nonperforming assets	$	250		$	226		$	154
Loans past due 90 days or more and still accruing	21			11			45
Net charge-offs (recoveries)	11			11			6			$	36		$	2
Allowance for loan losses	686			686			694
Allowance for credit losses on lending-related commitments	34			31			42
Total allowance for credit losses	720			717			736
Allowance for credit losses as a percentage of total loans	1.43		%	1.38		%	1.38		%
Net loan charge-offs as a percentage of average total loans	0.08			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 loans	2.9x			3.2x			4.8x
OTHER KEY INFORMATION
Number of banking centers	380			381			408
Number of employees - full time equivalent	7,666			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.


CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries

	September 30,		June 30,		December 31,		September 30,
(in millions, except share data)	2024		2024		2023		2023
	(unaudited)		(unaudited)				(unaudited)
ASSETS
Cash and due from banks	$	870	$	719	$	1,443	$	1,228

Interest-bearing deposits with banks	5,523		4,093		8,059		6,884
Other short-term investments	364		396		399		403
Investment securities available-for-sale	15,886		15,656		16,869		16,323

Commercial loans	25,953		27,113		27,251		29,007
Real estate construction loans	3,859		4,554		5,083		4,545
Commercial mortgage loans	14,774		14,156		13,686		13,721
Lease financing	767		806		807		790
International loans	1,003		1,087		1,102		1,194
Residential mortgage loans	1,901		1,896		1,889		1,905
Consumer loans	2,260		2,238		2,295		2,236
Total loans	50,517		51,850		52,113		53,398
Allowance for loan losses	(686)		(686)		(688)		(694)
Net loans	49,831		51,164		51,425		52,704
Premises and equipment	476		474		445		410
Accrued income and other assets	6,713		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 deposits	31,469		29,016		28,246		26,298
Savings deposits	2,155		2,247		2,381		2,521
Customer certificates of deposit	3,592		3,775		3,723		3,401
Other time deposits	2,017		2,879		4,550		5,011
Foreign office time deposits	25		20		13		5
Total interest-bearing deposits	39,258		37,937		38,913		37,236
Total deposits	63,077		62,459		66,762		67,158
Short-term borrowings	—		1,250		3,565		4,812
Accrued expenses and other liabilities	2,434		2,615		2,895		2,715
Medium- and long-term debt	6,786		7,112		6,206		6,049
Total liabilities	72,297		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 shares	1,141		1,141		1,141		1,141
Capital surplus	2,217		2,210		2,224		2,220
Accumulated other comprehensive loss	(2,355)		(3,463)		(3,048)		(4,540)
Retained earnings	11,949		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' equity	7,366		6,161		6,406		4,972
Total liabilities and shareholders' equity	$	79,663	$	79,597	$	85,834	$	85,706


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Comerica Incorporated and Subsidiaries

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions, except per share data)	2024		2023		2024		2023
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
INTEREST INCOME
Interest and fees on loans	$	798	$	862	$	2,409	$	2,491
Interest on investment securities	99		105		302		326
Interest on short-term investments	85		136		261		309
Total interest income	982		1,103		2,972		3,126
INTEREST EXPENSE
Interest on deposits	330		271		952		590
Interest on short-term borrowings	1		125		47		333
Interest on medium- and long-term debt	117		106		358		273
Total interest expense	448		502		1,357		1,196
Net interest income	534		601		1,615		1,930
Provision for credit losses	14		14		28		77
Net interest income after provision for credit losses	520		587		1,587		1,853
NONINTEREST INCOME
Card fees	64		71		194		212
Fiduciary income	57		59		166		179
Service charges on deposit accounts	46		47		137		140
Capital markets income	39		35		106		113
Commercial lending fees	17		19		50		55
Brokerage fees	13		6		37		22
Bank-owned life insurance	12		12		33		36
Letter of credit fees	10		10		30		31

Risk management hedging income (loss)	7		17		(1)		32
Other noninterest income	12		19		52		60
Total noninterest income	277		295		804		880
NONINTEREST EXPENSES
Salaries and benefits expense	335		315		1,006		947
Outside processing fee expense	69		75		205		207
Software expense	46		44		135		127
Occupancy expense	46		44		134		126
Equipment expense	13		12		38		36
FDIC insurance expense	11		19		66		48
Advertising expense	10		12		30		30
Other noninterest expenses	32		34		106		120
Total noninterest expenses	562		555		1,720		1,641
Income before income taxes	235		327		671		1,092
Provision for income taxes	51		76		143		244
NET INCOME	184		251		528		848
Less:
Income allocated to participating securities	1		1		3		4
Preferred stock dividends	6		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
Diluted	1.33		1.84		3.80		6.24
Comprehensive income (loss)	1,292		(533)		1,221		50
Cash dividends declared on common stock	94		94		283		282
Cash dividends declared per common share	0.71		0.71		2.13		2.13


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

	Third		Second		First		Fourth		Third		Third Quarter 2024 Compared to:
	Quarter		Quarter		Quarter		Quarter		Quarter		Second Quarter 2024				Third Quarter 2023
(in millions, except per share data)	2024		2024		2024		2023		2023		Amount		Percent		Amount		Percent
INTEREST INCOME
Interest and fees on loans	$	798	$	803	$	808	$	849	$	862	$	(5)	(1	%)	$	(64)	(7	%)
Interest on investment securities	99		101		102		104		105		(2)		(1)		(6)		(6)
Interest on short-term investments	85		67		109		96		136		18		26		(51)		(38)
Total interest income	982		971		1,019		1,049		1,103		11		1		(121)		(11)
INTEREST EXPENSE
Interest on deposits	330		305		317		302		271		25		8		59		22
Interest on short-term borrowings	1		9		37		58		125		(8)		(88)		(124)		(99)
Interest on medium- and long-term debt	117		124		117		105		106		(7)		(5)		11		11
Total interest expense	448		438		471		465		502		10		3		(54)		(11)
Net interest income	534		533		548		584		601		1		—		(67)		(11)
Provision for credit losses	14		—		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 fees	64		64		66		68		71		—		—		(7)		(9)
Fiduciary income	57		58		51		56		59		(1)		(2)		(2)		(4)
Service charges on deposit accounts	46		46		45		45		47		—		—		(1)		(2)
Capital markets income	39		37		30		34		35		2		7		4		11
Commercial lending fees	17		17		16		17		19		—		—		(2)		(8)
Brokerage fees	13		14		10		8		6		(1)		—		7		n/m
Bank-owned life insurance	12		11		10		10		12		1		9		—		—
Letter of credit fees	10		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 income	277		291		236		198		295		(14)		(4)		(18)		(6)
NONINTEREST EXPENSES
Salaries and benefits expense	335		323		348		359		315		12		4		20		6
Outside processing fee expense	69		68		68		70		75		1		1		(6)		(9)
Software expense	46		45		44		44		44		1		1		2		4
Occupancy expense	46		44		44		45		44		2		5		2		5
Equipment expense	13		13		12		14		12		—		—		1		9
FDIC insurance expense	11		19		36		132		19		(8)		(49)		(8)		(45)
Advertising expense	10		12		8		10		12		(2)		(4)		(2)		(8)
Other noninterest expenses	32		31		43		44		34		1		1		(2)		(9)
Total noninterest expenses	562		555		603		718		555		7		1		7		1
Income before income taxes	235		269		167		52		327		(34)		(12)		(92)		(28)
Provision for income taxes	51		63		29		19		76		(12)		(18)		(25)		(32)
NET INCOME	184		206		138		33		251		(22)		(10)		(67)		(26)
Less:
Income allocated to participating securities	1		1		1		—		1		—		—		—		—
Preferred stock dividends	6		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	%)
Diluted	1.33		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/m		1,825		n/m
Cash dividends declared on common stock	94		95		94		93		94		(1)		n/m		—		—
Cash dividends declared per common share	0.71		0.71		0.71		0.71		0.71		—		—		—		—

n/m - not meaningful


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

	2024									2023
(in millions)	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Balance at beginning of period:
Allowance for loan losses	$	686		$	691		$	688		$	694		$	684
Allowance for credit losses on lending-related commitments	31			37			40			42			44
Allowance for credit losses	717			728			728			736			728

Loan charge-offs:
Commercial	11			19			20			13			9

Commercial mortgage	10			6			—			1			3
Lease financing	1			3			—			—			—
International	1			—			—			11			1

Consumer	—			—			1			—			1
Total loan charge-offs	23			28			21			25			14
Recoveries on loans previously charged-off:
Commercial	6			15			6			3			5

Commercial mortgage	1			1			—			2			2

International	5			—			—			—			—

Consumer	—			1			1			—			1
Total recoveries	12			17			7			5			8
Net loan charge-offs	11			11			14			20			6
Provision for credit losses:
Provision for loan losses	11			6			17			14			16
Provision for credit losses on lending-related commitments	3			(6)			(3)			(2)			(2)
Provision for credit losses	14			—			14			12			14

Balance at end of period:
Allowance for loan losses	686			686			691			688			694
Allowance for credit losses on lending-related commitments	34			31			37			40			42
Allowance for credit losses	$	720		$	717		$	728		$	728		$	736


Allowance for credit losses as a percentage of total loans	1.43		%	1.38		%	1.43		%	1.40		%	1.38		%

Net loan charge-offs as a percentage of average total loans	0.08			0.09			0.10			0.15			0.05


NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries

	2024									2023
(in millions)	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd 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 mortgage	88			69			67			41			30
Lease financing	1			1			—			—			—
International	3			13			16			20			3
Total nonperforming business loans	189			177			171			138			118
Retail loans:
Residential mortgage	36			23			23			19			19
Consumer:
Home equity	25			26			23			21			17

Total nonperforming retail loans	61			49			46			40			36
Total nonperforming loans and nonperforming assets	250			226			217			178			154



Nonperforming loans as a percentage of total loans	0.50		%	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 loans	2.9x			3.2x			3.4x			4.1x			4.8x
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.


ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
	Nine Months Ended
	September 30, 2024						September 30, 2023
	Average				Average		Average				Average
(dollar amounts in millions)	Balance		Interest		Rate		Balance		Interest		Rate
Commercial loans (a)	$	26,305	$	1,035	5.26	%	$	30,631	$	1,263	5.52	%
Real estate construction loans	4,642		292		8.41		3,786		228		8.05
Commercial mortgage loans	14,104		788		7.46		13,694		723		7.06
Lease financing	804		37		6.14		770		25		4.24
International loans	1,096		64		7.85		1,245		73		7.89
Residential mortgage loans	1,895		55		3.84		1,869		49		3.47
Consumer loans	2,254		138		8.20		2,281		130		7.65
Total loans	51,100		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 securities	15,985		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 investments	381		11		3.94		319		9		3.57
Total earning assets	73,578		2,972		5.19		80,241		3,126		5.03
Cash and due from banks	711						1,251
Allowance for loan losses	(688)						(646)
Accrued income and other assets	7,415						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 deposits	2,277		4		0.21		2,886		5		0.20
Customer certificates of deposit	3,797		103		3.61		2,414		42		2.35
Other time deposits	3,035		120		5.30		3,247		123		5.08
Foreign office time deposits	22		1		4.39		27		1		3.90
Total interest-bearing deposits	38,716		952		3.28		34,093		590		2.30
Federal funds purchased	9		—		5.39		34		1		4.68
Other short-term borrowings	1,095		47		5.65		8,268		332		5.37

Medium- and long-term debt	6,944		358		6.87		5,772		273		6.31
Total interest-bearing sources	46,764		1,357		3.86		48,167		1,196		3.30
Noninterest-bearing deposits	25,371						31,916
Accrued expenses and other liabilities	2,588						2,466
Shareholders' equity	6,293						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 funds					1.49						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.


ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries
	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
	Average				Average		Average				Average		Average				Average
(dollar amounts in millions)	Balance		Interest		Rate		Balance		Interest		Rate		Balance		Interest		Rate
Commercial loans (a)	$	26,173	$	341	5.18	%	$	26,292	$	346	5.29	%	$	29,721	$	416	5.55	%
Real estate construction loans	4,205		89		8.43		4,553		95		8.43		4,294		90		8.29
Commercial mortgage loans	14,494		272		7.44		14,171		263		7.47		13,814		257		7.38
Lease financing	804		12		6.10		798		13		6.20		770		11		5.56
International loans	1,036		20		7.73		1,111		22		8.02		1,241		25		7.97
Residential mortgage loans	1,905		19		3.94		1,898		18		3.83		1,915		18		3.72
Consumer loans	2,244		45		8.04		2,248		46		8.24		2,232		45		8.10
Total loans	50,861		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 securities	15,880		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 investments	393		4		3.83		366		3		3.99		391		4		4.00
Total earning assets	73,103		982		5.17		71,829		971		5.20		80,996		1,103		5.21
Cash and due from banks	593						603						1,130
Allowance for loan losses	(686)						(691)						(684)
Accrued income and other assets	7,221						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 deposits	2,194		1		0.19		2,287		2		0.22		2,640		2		0.23
Customer certificates of deposit	3,625		31		3.39		3,901		36		3.67		3,049		24		3.08
Other time deposits	2,739		37		5.35		2,403		31		5.28		5,121		67		5.21
Foreign office time deposits	21		1		4.38		27		—		4.42		14		—		4.34
Total interest-bearing deposits	39,539		330		3.31		37,698		305		3.23		36,867		271		2.90
Federal funds purchased	—		—		—		—		—		—		11		—		5.31
Other short-term borrowings	77		1		5.65		666		9		5.63		8,836		125		5.60

Medium- and long-term debt	6,849		117		6.87		7,082		124		6.98		6,383		106		6.64
Total interest-bearing sources	46,465		448		3.84		45,446		438		3.85		52,097		502		3.81
Noninterest-bearing deposits	24,357						25,357						29,016
Accrued expenses and other liabilities	2,469						2,556						2,659
Shareholders' equity	6,940						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 funds					1.47						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.


CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries
								Accumulated Other Comprehensive Loss
	Nonredeemable Preferred Stock		Common Stock											Total Shareholders' Equity
			Shares Outstanding	Amount		Capital Surplus				Retained Earnings		Treasury 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.


BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries

(dollar amounts in millions)	Commercial Bank			Retail Bank			Wealth Management			Finance		Other		Total
Three Months Ended September 30, 2024
Earnings summary:
Net interest income (expense)	$	464		$	205		$	46		$	(220)	$	39	$	534
Provision for credit losses	6			4			3			—		1		14
Noninterest income	149			24			73			26		5		277
Noninterest expenses	252			175			90			1		44		562
Provision (benefit) for income taxes	83			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
Deposits	32,261			24,224			3,844			3,300		267		63,896
Statistical data:
Return on average assets (a)	2.36		%	0.63		%	1.47		%	n/m		n/m		0.92		%
Efficiency ratio (b)	41.23			74.24			75.35			n/m		n/m		68.80

	Commercial Bank			Retail Bank			Wealth Management			Finance		Other		Total
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 income	146			33			78			33		1		291
Noninterest expenses	250			177			88			1		39		555
Provision (benefit) for income taxes	85			14			10			(46)		—		63
Net income (loss)	$	276		$	44		$	30		$	(142)	$	(2)	$	206
Net charge-offs	$	8		$	2		$	1		$	—	$	—	$	11
Selected average balances:
Assets	$	45,843		$	3,029		$	5,299		$	18,448	$	6,588	$	79,207
Loans	43,709			2,322			5,026			—		14		51,071
Deposits	31,176			24,590			3,951			3,032		306		63,055
Statistical data:
Return on average assets (a)	2.42		%	0.71		%	2.25		%	n/m		n/m		1.05		%
Efficiency ratio (b)	40.90			76.12			70.78			n/m		n/m		67.77

	Commercial Bank			Retail Bank			Wealth Management			Finance		Other		Total
Three Months Ended September 30, 2023
Earnings summary:
Net interest income (expense)	$	505		$	208		$	49		$	(187)	$	26	$	601
Provision for credit losses	22			—			(9)			—		1		14
Noninterest income	150			31			78			40		(4)		295
Noninterest expenses	257			175			102			1		20		555
Provision (benefit) for income taxes	89			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
Loans	46,477			2,250			5,227			—		33		53,987
Deposits	31,868			24,034			3,950			5,711		320		65,883
Statistical data:
Return on average assets (a)	2.30		%	0.79		%	1.81		%	n/m		n/m		1.12		%
Efficiency ratio (b)	39.34			72.71			79.99			n/m		n/m		61.86

(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

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.


	Third			Second			Third			Nine Months Ended
	Quarter			Quarter			Quarter			September 30,
(dollar amounts in millions, except per share data)	2024			2024			2023			2024			2023
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
Adjusted	1.37			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:
Reported	0.92		%	1.05		%	1.12		%	0.87		%	1.29		%
Adjusted	0.94			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’ equity	1			—			(3)			10			1
Adjusted average common shareholder’s equity	$	6,547		$	5,454		$	4,981		$	5,908		$	5,287
ROE:
Reported	10.88		%	14.78		%	19.50		%	11.58		%	21.02		%
Adjusted	11.22			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.

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)	2024			2024			2023
Common Equity Tier 1 Capital (a):
Tier 1 capital	$	9,078		$	8,980		$	8,866
Less:
Fixed-rate reset non-cumulative perpetual preferred stock	394			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 ratio	12.51		%	12.08		%	11.30		%
Common equity tier 1 capital ratio	11.97			11.55			10.80
Tangible Common Equity:
Total shareholders' equity	$	7,366		$	6,161		$	4,972
Less:
Fixed-rate reset non-cumulative perpetual preferred stock	394			394			394
Common shareholders' equity	$	6,972		$	5,767		$	4,578
Less:
Goodwill	635			635			635
Other intangible assets	6			7			8
Tangible common equity	$	6,331		$	5,125		$	3,935
Total assets	$	79,663		$	79,597		$	85,706
Less:
Goodwill	635			635			635
Other intangible assets	6			7			8
Tangible assets	$	79,022		$	78,955		$	85,063
Common equity ratio	8.75		%	7.24		%	5.34		%
Tangible common equity ratio	8.01			6.49			4.62
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	6,972		$	5,767		$	4,578
Tangible common equity	6,331			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 stock	47.69			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)	2024		2024		2023
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

Comerica (CMA) 8-KThird Quarter 2024 Net Income of $184 Million, $1.33 Per Share