Comerica (CMA 4.63%) reported its Q2 2025 earnings on July 18, reporting EPS of $1.42 (up nearly 14% sequentially). In the quarter, it returned $193 million to shareholders through stock repurchases and dividends. Management highlighted inflecting loan growth, normalization of pressured deposits, disciplined expense control, and sustained capital strength, while maintaining guidance of net interest income growth of 5% to 7% for the year, despite anticipated short-term headwinds.Loan Growth Highlights Organi ...

Core Viewpoint - Comerica Incorporated (CMA) reported second-quarter 2025 adjusted earnings per share (EPS) of $1.42, exceeding the Zacks Consensus Estimate of $1.23, but down from $1.53 in the prior-year quarter [1][8] Financial Performance - Net income attributable to common shareholders was $187 million, a decline of 6.5% from the year-ago quarter [2] - Total quarterly revenues reached $849 million, up 3% year over year, surpassing the consensus estimate by 0.5% [3] - Net interest income (NII) increased by 7.9% year over year to $575 million, with the net interest margin rising 30 basis points to 3.16% [3] - Total non-interest income decreased by 5.8% year over year to $274 million [3] - Non-interest expenses totaled $561 million, up 1.1% year over year, primarily due to increased salaries and benefits and occupancy expenses [4] - The efficiency ratio improved to 65.78% from 67.77% in the prior-year quarter, indicating increased profitability [4] Loan and Deposit Trends - Total loans rose by 2.5% sequentially to $51.2 billion as of June 30, 2025 [5] - Total deposits declined by 2.4% from the previous quarter to $60 billion [5] Credit Quality - The company recorded a provision for credit loss of $44 million in the second quarter, compared to no provision in the year-ago quarter [6] - The allowance for credit losses increased by 2.5% year over year to $735 million [6] - Total non-performing assets rose by 10.2% year over year to $249 million [6] - The allowance for credit losses to total loans ratio was 1.44%, up from 1.38% a year ago [7] - Net charge-offs increased significantly to $28 million from $11 million in the prior-year quarter [7] Capital Position - The total capital ratio was 13.74%, down from 14.02% in the year-ago quarter [9] - The Common Equity Tier 1 capital ratio improved to 11.94% from 11.55% in the prior-year quarter [9] - The tangible common equity ratio was 8.04%, up from 6.49% in the prior-year quarter [9] Capital Distribution Activities - The company repurchased $100 million of common stock under the share repurchase program [10] Overall Assessment - The company's capital position is viewed positively, supporting future capital distribution activities and enhancing investor confidence [11] - Focus on improving operational efficiency is expected to bolster financials, although weak asset quality and rising expenses are noted as near-term concerns [11]

For the quarter ended June 2025, Comerica Incorporated (CMA) reported revenue of $849 million, up 3% over the same period last year. EPS came in at $1.42, compared to $1.53 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $844.72 million, representing a surprise of +0.51%. The company delivered an EPS surprise of +15.45%, with the consensus EPS estimate being $1.23.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Comerica (CMA) Q2 2025 Earnings Call July 18, 2025 08:00 AM ET Company ParticipantsKelly Gage - Director - IRCurtis Farmer - Chairman, CEO & PresidentJames Herzog - CFO & Senior EVPManan Gosalia - Head - U.S. Midcaps Banks ResearchPeter Sefzik - Senior EVP & Chief Banking OfficerJon Arfstrom - MD & Associate Director - US ResearchMike Mayo - MD & Head - US Large-Cap Bank ResearchAnthony Elian - Equity Research – BanksAndrew Leischner - AVP - Equity ResearchMelinda Chausse - Senior EVP & Chief Credit Officer ...

Financial Data and Key Metrics Changes - The company reported earnings per share of $1.42, representing an almost 14% increase over the prior quarter [7] - Net interest income remained stable at $575 million for the third consecutive quarter, with a modest two basis point reduction in net interest margin [14] - Capitalization strength was highlighted with an estimated CET1 of 11.94%, well above the 10% strategic target [6][18] Business Line Data and Key Metrics Changes - Average loans increased almost 1% and period-end loans rose approximately 3%, driven by new loan production for new and existing customers [9] - Non-interest income increased by $20 million, with growth across most customer line items due to higher loan volumes and seasonal benefits [15] - Expenses decreased by $23 million over the prior quarter, largely due to lower litigation-related expenses and salaries [16] Market Data and Key Metrics Changes - Average deposits declined just over 1%, with the largest decreases in retail, corporate banking, and technology and life sciences [11] - Non-interest bearing deposits as a percentage of total deposits remained flat at 38% for the fourth consecutive quarter, indicating stability in the funding mix [12] - The company expects full-year average deposits to decline by 2% to 3% in 2025, with a moderate increase in the third quarter balances anticipated [19] Company Strategy and Development Direction - The company is focused on strategic investments in small business, middle market, business banking, and payments to drive responsible growth [26] - The management emphasized the importance of maintaining a conservative approach to capital while supporting customer needs and driving growth [24] - The company plans to continue share repurchases and monitor the economic environment and regulatory landscape for future capital decisions [23] Management's Comments on Operating Environment and Future Outlook - Management noted that while economic and geopolitical uncertainty persists, customers appear more confident in navigating the environment and making investments [6] - The outlook for 2025 includes projected net interest income growth of 5% to 7%, with loan trends outperforming expectations [20] - Management acknowledged the challenges in deposit pricing and anticipated upward pressure as they fund robust loan growth [21] Other Important Information - The company redeemed preferred stock, which, while beneficial for EPS, created a slight drag on net interest income due to the cash used for redemption [18] - The management expressed commitment to driving efficiency while balancing long-term growth and return objectives [22] Q&A Session Summary Question: Can you provide more color on the NII trajectory? - Management expects a slight decrease in NII in Q3 before an upward trajectory in Q4, driven by strong loan growth and deposit increases [30][31] Question: What are the expectations for expenses in Q3 and Q4? - Management indicated that expenses are expected to step up due to deferred project expenses and seasonal factors, with notable items not repeating [41][42] Question: Can you quantify the improvement in pipelines and activity? - Management noted an improvement in loan growth and positive momentum in pipelines, although quantifying it remains challenging [47][48] Question: What conditions would indicate that Comerica has not earned the right to remain independent? - Management emphasized the need to perform at an acceptable level and acknowledged the importance of protecting the company and serving clients [80][82] Question: How does the company view potential mergers and acquisitions? - Management stated that the $100 billion asset threshold is not a governor for pursuing transactions, focusing instead on organic growth opportunities [68][69] Question: What are the expectations for deposit pricing and repricing opportunities? - Management acknowledged the competitive environment for deposits and indicated that they are closely monitoring pricing strategies [100][101] Question: Can you provide more color on the increase in criticized loans? - Management described the increase as moderate, concentrated in three credits with consumer components under pressure from higher rates [103][105]

Core Viewpoint - Comerica Incorporated (CMA) reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, but down from $1.53 per share a year ago, indicating an earnings surprise of +15.45% [1][2] Financial Performance - The company posted revenues of $849 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.51% and up from $824 million year-over-year [2] - Over the last four quarters, Comerica has exceeded consensus EPS estimates three times and has topped consensus revenue estimates three times as well [2] Stock Performance and Outlook - Comerica shares have increased by approximately 0.9% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The company's current consensus EPS estimate for the upcoming quarter is $1.32 on revenues of $856.2 million, and for the current fiscal year, it is $5.08 on revenues of $3.39 billion [7] Industry Context - The Zacks Industry Rank for Banks - Major Regional is currently in the top 7% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Comerica Incorporated Second Quarter 2025 Financial Review July 18, 2025 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as "achieve," "anticipate," "assume," "believe," "could," "deliver," "drive," "enhance," "estimate," "expect," "focus," "future," "goal," "grow," "guidance," "intend," "may," "might," "plan," " ...

Core Viewpoint - Comerica Incorporated has reported its second quarter 2025 financial results, which are accessible on its Investor Relations website [1][2]. Financial Results - The financial results and earnings presentation will be filed on Form 8-K and available on the SEC website [1]. - A conference call to review the second quarter 2025 financial results is scheduled for July 18, 2025, at 7 a.m. CT / 8 a.m. ET [2]. Company Overview - Comerica is a financial services company headquartered in Dallas, Texas, and operates through three business segments: The Commercial Bank, The Retail Bank, and Wealth Management [2]. - As one of the 25 largest commercial U.S. financial holding companies, Comerica focuses on building relationships to support the success of individuals and businesses [2]. - The company reported total assets of $78.0 billion as of June 30, 2025 [2].

SECOND QUARTER 2025 NET INCOME OF $199 MILLION, $1.42 PER SHARE Broad-based Loan Growth and Continued Strong Capitalization Favorable Expense and Fee Income Trends Drove Higher Profitability "Today we reported second quarter net income of $199 million, representing a 16% increase over the prior quarter," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. "Improved customer sentiment contributed to broad- based loan growth, offsetting modest deposit pressures and keeping net interest incom ...

Core Viewpoint - Comerica Incorporated (CMA) is expected to report second-quarter 2025 results on July 18, with anticipated revenue growth but a decline in earnings compared to the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for second-quarter 2025 earnings is $1.23 per share, reflecting a 19.6% decline from the year-ago quarter [2][9]. - Revenue estimates for the same quarter are projected at $844.7 million, indicating a 2.5% increase year-over-year [2][9]. Loan and Net Interest Income (NII) Insights - The lending environment has been stable, with modest loan demand reported by the Federal Reserve [3]. - Average loans are expected to be higher than the first quarter of 2025, with average earning assets estimated at $70.4 billion, showing a marginal increase [4]. - The consensus estimate for NII is $576.5 million, reflecting a slight rise from the previous quarter's figure of $575 million [5]. Non-Interest Income and Market Activity - Global mergers and acquisitions activity improved in the second quarter, contributing positively to capital market fees, which are estimated at $32.8 million, a 5.9% sequential rise [6][8]. - The IPO market saw a resurgence, leading to increased capital raised and improved market sentiment [7]. Fee Income and Deposit Trends - Overall fee income is expected to grow by 3.7% to $263.5 million, driven by stronger capital markets and card-related revenues [11]. - Average deposits declined by 1% to $61.3 billion, with expectations of further declines impacting service charges on deposits, estimated at $47 million, a 2.1% increase from the prior quarter [10]. Expense and Asset Quality Considerations - Higher expenses are anticipated due to increased compensation costs and lower gains on real estate sales, with non-interest expenses projected to rise slightly from $584 million in the first quarter [12][13]. - The Zacks Consensus Estimate for non-performing loans is $308.5 million, indicating a 2.5% rise from the previous quarter [14]. Earnings Prediction Model - The likelihood of Comerica beating earnings estimates is low, with an Earnings ESP of -0.46% and a Zacks Rank of 3 [15].