Group 1 - Comerica Incorporated has appointed Eric Teal as Chief Investment Officer, who will lead investment strategy and portfolio construction [1] - Teal has over 30 years of experience in investment management and wealth management, with previous roles at U.S. Bank Private Wealth Management and First Citizens Bank [1][2] - Comerica is a major financial services company with total assets of $77.6 billion as of March 31, 2025, and operates across 15 states [3]

Comerica Incorporated First Quarter 2025 Financial Review April 21, 2025 Safe Harbor Statement This presentation, & other Comerica written & oral communications, include statements that are not historical facts but rather are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as achieve, anticipate, aspire, assume, believe, can, confident, continue, could, designed, enhances, estimate, expect, feel, forecast, forward, future, goal, grow, guidance, guide ...

Financial Data and Key Metrics Changes - The company reported earnings of $172 million or $1.25 per share, showing higher profitability compared to the prior quarter [15] - The estimated CET1 ratio increased to 12.05%, comfortably above the strategic target, while $143 million was returned to shareholders through share repurchases and dividends [9][18] - Net interest income remained stable at $575 million, with a 12 basis point expansion in net interest margin [26][16] Business Line Data and Key Metrics Changes - Average loans declined less than 1%, primarily due to lower floor plan balances in National Dealer Services and paydowns in Commercial Real Estate [19] - Non-interest income increased by $4 million, largely due to the absence of a $19 million loss from securities repositioning in the previous quarter [31] - Non-interest expenses decreased by $3 million as efficiency was prioritized, despite some seasonal increases in salaries and benefits [33] Market Data and Key Metrics Changes - Period-end deposits decreased by $2.3 billion, with a proactive pricing strategy leading to a 26 basis points decline in deposit pricing [23] - Non-interest bearing deposits as a percentage of total deposits remained flat at 38%, reflecting a strong funding mix [22] - The company expects full-year average loans to decline by 1% to 2% and full-year average deposits to decrease by 2% to 3% in 2025 [36][38] Company Strategy and Development Direction - The company aims to continue executing its relationship model while managing through economic cycles, emphasizing conservative capital management and credit discipline [10][12] - There is a focus on enhancing deposit offerings and processes to mitigate seasonal impacts and improve competitive positioning [22][24] - The company plans to maintain a CET1 ratio well above the 10% strategic target throughout 2025, allowing for continued share repurchases [42] Management's Comments on Operating Environment and Future Outlook - Management noted increased macroeconomic uncertainty affecting customer sentiment, but expressed confidence in the company's ability to navigate the environment [10] - The outlook for 2025 assumes slower GDP growth than in 2024, with expectations for loan demand to improve in the second half of the year [36][37] - Credit metrics remain strong, with net charge-offs expected to stay in the lower end of the normal range [41] Other Important Information - The company has robust liquidity with a strong loan-to-deposit ratio and has taken steps to minimize exposure to rate volatility [13] - The capital position allows for flexibility in navigating economic challenges, with a focus on responsible growth and efficiency [34][45] Q&A Session Summary Question: Loan growth outlook and near-term conversations - Management indicated that customers are cautious but not halting activity, with expectations for improved loan demand as the year progresses [52][56] Question: Commercial real estate outlook - There is hope for stabilization in commercial real estate, with deal flow picking up, although it remains a headwind [57][60] Question: Non-interest income and expense guidance - Non-interest income is expected to face pressure from non-customer trends, while expenses will be monitored closely to maintain flexibility [66][70] Question: Deposit costs and strategies - The company has successfully reduced deposit costs and expects to continue adjusting as rates decline, with a focus on gathering more interest-bearing deposits [80][84] Question: M&A considerations - The company remains focused on independence but is open to considering M&A opportunities that align with strategic goals [128][130] Question: Capital markets business outlook - An uptick in capital markets income is anticipated, driven by syndications and M&A activities [148][149] Question: Supply chain impacts on National Dealer portfolio - Customers are prepared to manage supply chain challenges, with a cautious outlook on car sales for the year [151][153]

Core Viewpoint - Comerica Incorporated (CMA) reported first-quarter 2025 adjusted earnings per share (EPS) of $1.25, exceeding the Zacks Consensus Estimate of $1.14, but down from $1.29 in the prior-year quarter [1] Financial Performance - Net income attributable to common shareholders was $165 million, reflecting a 26% increase from the year-ago quarter [2] - Total quarterly revenues reached $829 million, up 5.7% year over year, although it missed the consensus estimate by 0.4% [3] - Quarterly net interest income (NII) rose 4.9% year over year to $575 million, with the net interest margin increasing by 38 basis points to 3.18% [3] - Total non-interest income was $254 million, an 8% increase year over year, driven by higher service charges, capital markets income, and brokerage fees [4] - Non-interest expenses totaled $584 million, down 3.2% year over year, primarily due to reduced outside processing fees and FDIC insurance expenses [4] - The efficiency ratio improved to 70.28% from 76.91% in the prior-year quarter, indicating increased profitability [4] Loan and Deposit Trends - Total loans declined 1.2% sequentially to $49.9 billion as of March 31, 2025 [5] - Total deposits decreased by 3.6% from the previous quarter to $61.5 billion [5] Credit Quality - The company recorded a provision for credit loss of $20 million, a 42.9% increase year over year [6] - The allowance for credit losses was $719 million, down 1.2% year over year [6] - Total non-performing assets rose 38.7% year over year to $301 million [6] - The allowance for credit losses to total loans ratio was 1.44%, up from 1.43% a year ago, with net charge-offs of $26 million, an 85.7% increase year over year [7] Capital Position - Total capital ratio improved to 14.39% from 13.98% in the year-ago quarter [8] - The Common Equity Tier 1 capital ratio increased to 12.05% from 11.48% in the prior-year quarter [8] - The tangible common equity ratio was 7.82%, up from 6.36% in the prior-year quarter [8] Capital Distribution Activities - The company repurchased $50 million of common stock under its share repurchase program [9] Outlook - The company's solid capital position is expected to support capital distribution activities, enhancing investor confidence [10] - Focus on improving operational efficiency is anticipated to bolster financial performance [10] - While the rise in NII and decline in expenses are positive, weak asset quality and declining loan and deposit balances remain concerns [10]

Core Insights - Comerica Incorporated (CMA) reported revenue of $829 million for Q1 2025, reflecting a 5.7% increase year-over-year, but slightly below the Zacks Consensus Estimate of $831.98 million, resulting in a revenue surprise of -0.36% [1] - The company's EPS for the quarter was $1.25, down from $1.29 in the same quarter last year, but exceeded the consensus EPS estimate of $1.14, leading to an EPS surprise of +9.65% [1] Financial Performance Metrics - Efficiency Ratio was reported at 70.3%, better than the estimated 71.9% by analysts [4] - Net interest margin stood at 3.2%, matching the average estimate [4] - Net charge-offs (recoveries) to average total loans ratio was 0.2%, consistent with analyst estimates [4] - Average balance of total earning assets was $70.38 billion, below the estimated $71.18 billion [4] - Total nonperforming assets were $301 million, slightly better than the estimated $314.05 million [4] - Total nonperforming loans were also $301 million, compared to the estimated $317.08 million [4] - Total noninterest income was $254 million, lower than the estimated $266.25 million [4] - Net interest income was reported at $575 million, exceeding the estimated $566.88 million [4] - Service charges on deposit accounts were $46 million, in line with the average estimate [4] - Fiduciary income was $52 million, below the estimated $54.23 million [4] - Commercial lending fees were $16 million, slightly below the estimated $17.35 million [4] - Bank-owned life insurance income was $9 million, lower than the estimated $11.03 million [4] Stock Performance - Comerica's shares have returned -10.3% over the past month, compared to a -5.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Comerica Incorporated (CMA) has shown a reasonable performance over the past year with a 6% gain, but has faced challenges during the recent market sell-off, resulting in a decline of approximately $20 from its peak [1] Company Performance - The stock of Comerica has gained 6% over the past year [1] - Despite the gain, the stock has not been able to withstand the recent market downturn [1] - The stock has fallen about $20 from its recent high [1]

分组1 - Comerica Incorporated (CMA) reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, but down from $1.29 per share a year ago, representing an earnings surprise of 9.65% [1] - The company posted revenues of $829 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.36%, compared to year-ago revenues of $784 million [2] - Over the last four quarters, Comerica has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 14.4% since the beginning of the year, compared to the S&P 500's decline of 10.2% [3] - The current consensus EPS estimate for the coming quarter is $1.29 on revenues of $852.68 million, and for the current fiscal year, it is $5.09 on revenues of $3.41 billion [7] - The Zacks Industry Rank for Banks - Major Regional is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Viewpoint - Comerica Incorporated has reported its first quarter 2025 financial results, which are available on its Investor Relations website [1] Group 1: Financial Results - The financial results and earnings presentation will be furnished on a Form 8-K filing available on the SEC website [1] - A conference call to review the first quarter 2025 financial results is scheduled for April 21, 2025, at 7 a.m. CT / 8 a.m. ET [2] Group 2: Company Overview - Comerica is a financial services company headquartered in Dallas, Texas, and is one of the 25 largest commercial U.S. financial holding companies [2] - The company operates through three business segments: The Commercial Bank, The Retail Bank, and Wealth Management [2] - As of March 31, 2025, Comerica reported total assets of $77.6 billion [2]

Financial Performance - First quarter 2025 net income was $172 million, translating to $1.25 per share, an increase from $138 million in the first quarter of 2024[1]. - Noninterest income increased by $4 million to $254 million, although excluding a prior loss, it would have decreased by $15 million[8]. - Net income attributable to common shares for Q1 2025 was $165 million, a 2% increase from $163 million in Q4 2024 and a 26% increase from $131 million in Q1 2024[28]. - The company reported a comprehensive income of $638 million in Q1 2025, compared to a comprehensive loss of $(636) million in Q4 2024[28]. - Cash dividends declared on common stock remained stable at $93 million for Q1 2025, consistent with the previous quarter[28]. - Cash dividends declared on common stock were $0.71 per share for the three months ended March 31, 2025[37]. Loan and Deposit Trends - Average loans decreased by $403 million to $50.2 billion, while average deposits decreased by $1.4 billion to $61.9 billion[2][5]. - Total loans outstanding were $50.2 billion in Q1 2025, with total earning assets at $70.4 billion[32]. - Total deposits decreased to $61.899 billion in Q1 2025 from $63.347 billion in Q4 2024[25]. - Total deposits decreased to $61,505 million as of March 31, 2025, down from $63,811 million at December 31, 2024, a decrease of 3.6%[27]. - The average balance of interest-bearing deposits was $38.4 billion in Q1 2025, with total interest-bearing sources at $45.1 billion[32]. Credit Quality - Provision for credit losses decreased by $1 million to $20 million, with net charge-offs at 0.21% of average total loans[7][16]. - Criticized loans increased by $43 million to $2.6 billion, representing 5.2% of total loans[19]. - Nonperforming assets decreased by $7 million to $301 million, or 0.60% of total loans and foreclosed property, compared to 0.61% in Q4 2024[19]. - Net charge-offs totaled $26 million, an increase from $16 million in Q4 2024[19]. - The provision for credit losses was $20 million in Q1 2025, a slight decrease from $21 million in Q4 2024, but an increase of 39% compared to $14 million in Q1 2024[28]. - Total nonperforming loans at the end of Q1 2025 were $301 million, slightly down from $308 million in Q4 2024, with nonperforming loans as a percentage of total loans at 0.60%[30]. Capital and Efficiency Ratios - The common equity Tier 1 capital ratio was estimated at 12.05%, well above the 10% target[9]. - Common equity tier 1 capital ratio increased to 12.05% in Q1 2025 from 11.89% in Q4 2024[25]. - Total shareholders' equity increased to $7.052 billion as of March 31, 2025, from $6.543 billion at December 31, 2024[40]. - The tangible common equity ratio was 7.82% as of March 31, 2025, compared to 7.00% at December 31, 2024[40]. - The efficiency ratio improved to 70.28%, down from 76.91% in the first quarter of 2024[1]. - The efficiency ratio was 70.28% in Q1 2025, compared to 69.51% in Q4 2024[25]. Interest Income and Margin - Net interest income remained stable at $575 million, with a net interest margin increase of 12 basis points to 3.18% compared to the previous quarter[6][13]. - Total interest income decreased to $924 million in Q1 2025, down 5% from $967 million in Q4 2024 and down 9% from $1,019 million in Q1 2024[28]. - Net interest income remained stable at $575 million for both Q1 2025 and Q4 2024[25]. - The net interest income for Q1 2025 was $575 million, maintaining the same level as in Q4 2024, with a net interest margin of 3.18%[32]. - Average loans for the three months ended March 31, 2025, were $50.214 billion, a slight decrease from $50.617 billion in the previous quarter[38]. Asset and Liability Management - Total assets decreased to $77,622 million as of March 31, 2025, down from $79,297 million at December 31, 2024, representing a decline of 2.1%[27]. - Total liabilities decreased to $70,570 million as of March 31, 2025, down from $72,754 million at December 31, 2024, reflecting a decline of 3.0%[27]. - Total uninsured deposits as of March 31, 2025, amount to $32,291 million, a decrease from $33,387 million on December 31, 2024[42]. - Total uninsured deposits, excluding affiliate deposits, stand at $28,447 million as of March 31, 2025, compared to $29,511 million on December 31, 2024[42]. - Affiliate deposits decreased to $3,844 million as of March 31, 2025, down from $3,876 million on December 31, 2024[42].

Core Viewpoint - Comerica Incorporated (CMA) is expected to report an increase in revenues but a decline in earnings for the first quarter of 2025 compared to the previous year [1][3]. Financial Performance - The earnings for the fourth quarter of 2024 missed the Zacks Consensus Estimate, primarily due to a decline in net interest income (NII) and weak asset quality, although a rise in deposit balance and solid fee income growth provided some support [2]. - The Zacks Consensus Estimate for first-quarter 2025 earnings is $1.14 per share, reflecting an 11.6% decline from the year-ago quarter [3]. - The consensus estimate for first-quarter 2025 revenues is $829.6 million, indicating a 5.9% increase from the previous year [3]. Loan and Asset Quality - The lending environment was not favorable in the first quarter, with modest demand for loans due to market uncertainties stemming from tariff plans [4]. - Average loans were marginally down sequentially, with management expecting them to remain flat compared to the fourth quarter of 2024 [4]. - The Zacks Consensus Estimate for average earning assets is $71.2 billion, indicating a 1.2% sequential decrease [5]. Net Interest Income (NII) - The consensus estimate for NII is $566.9 million, reflecting a 1.4% decline from the prior quarter [6]. - Management anticipates a decline of 1-2% in NII from the previous quarter [6]. Non-Interest Income - Global M&A activities showed modest growth, primarily in the Asia Pacific region, but overall market volatility and economic uncertainty led to cautious behavior among companies regarding M&A [7]. - The Zacks Consensus Estimate for capital markets income is $36.7 million, indicating a marginal sequential rise [8]. - The overall fee income estimate is $266.3 million, reflecting a 1% decline from the previous quarter [11]. Deposits and Service Charges - Average deposits (excluding brokered time deposits) declined 2.3% to $61.9 billion from the end of the fourth quarter of 2024 [9]. - The Zacks Consensus Estimate for service charges on deposits is $46.1 million, indicating a 2% decline from the prior quarter [10]. Expenses and Asset Quality - The company is expected to incur higher expenses due to seasonally higher compensation costs and lower gains on real estate sales, with non-interest expenses projected to increase by 2% from the fourth quarter of 2024 [12]. - The Zacks Consensus Estimate for non-performing loans is $317.1 million, indicating a 3% rise from the prior quarter [13]. Earnings Outlook - The likelihood of Comerica beating earnings estimates is low, with an Earnings ESP of -0.21% and a Zacks Rank of 3 [14].