Financial Performance - Net income for Q1 2025 was $172 million, an increase of $2 million from $170 million in Q4 2024, driven by higher noninterest income and lower noninterest expenses [143]. - Diluted earnings per share rose to $1.25 in Q1 2025 from $1.22 in Q4 2024, reflecting an increase of $0.03 per share [143]. - Net income rose by $34 million to $172 million for the three months ended March 31, 2025, compared to $138 million for the same period in 2024, driven by higher net interest income and lower noninterest expenses [158]. - Noninterest income rose to $254 million in Q1 2025, compared to $250 million in Q4 2024, reflecting improved performance in various segments [143]. - Noninterest income increased by $18 million to $254 million for the three months ended March 31, 2025, compared to $236 million for the same period in 2024 [168]. Interest Income and Expenses - Net interest income remained stable at $575 million for both Q1 2025 and Q4 2024, while net interest margin increased by 12 basis points to 3.18% [149]. - Net interest income increased by $27 million to $575 million for the three months ended March 31, 2025, compared to $548 million for the same period in 2024 [165]. - The average rate on total earning assets was 5.11% in Q1 2025, slightly down from 5.15% in Q4 2024 [144]. - The average rate on commercial loans increased to 5.72% for the three months ended March 31, 2025, compared to 5.30% for the same period in 2024 [160]. Credit Quality - Provision for credit losses decreased to $20 million in Q1 2025 from $21 million in Q4 2024, with the allowance for credit losses at 1.44% of total loans for both periods [151]. - The provision for credit losses increased by $6 million to $20 million for the three months ended March 31, 2025, reflecting changes in the loan portfolio and economic uncertainty [166]. - Net loan charge-offs increased to $26 million in Q1 2025, up from $16 million in Q4 2024, primarily due to increases in Commercial Real Estate and Corporate Banking [152]. - The Corporation's net charge-offs increased by $12 million to $26 million, driven by Commercial Real Estate, Entertainment, and Corporate Banking [180]. - Nonperforming assets decreased by $7 million to $301 million at March 31, 2025, from $308 million at December 31, 2024, with nonperforming loans at 0.60% of total loans [224]. Asset and Liability Management - Total assets decreased to $77.558 billion in Q1 2025 from $79.234 billion in Q4 2024, indicating a reduction in the balance sheet size [144]. - Total assets decreased by $1.7 billion to $77.6 billion at March 31, 2025, reflecting a $1.2 billion decrease in interest-bearing deposits with banks [188]. - Total liabilities decreased by $2.2 billion to $70.6 billion at March 31, 2025, primarily due to a $1.3 billion decrease in noninterest-bearing deposits [189]. - The allowance for credit losses decreased by $6 million to $719 million, maintaining a ratio of 1.44% of total loans [210]. Economic Outlook - The Corporation's management anticipates continued economic uncertainty impacting credit quality and loan performance in the upcoming quarters [140]. - Economic forecasts as of March 31, 2025, reflected improved GDP growth and unemployment trends compared to December 31, 2024 [213]. - Real GDP growth is projected to improve unevenly, reaching 2.1% by the end of 2026, while the unemployment rate is expected to hold at approximately 4.2% throughout the forecast period [218]. Capital and Liquidity - The Corporation's estimated Common Equity Tier 1 (CET1) capital ratio increased to 12.05% from 11.89% at December 31, 2024 [200]. - The Corporation had liquid assets of $1.3 billion on an unconsolidated basis as of March 31, 2025, ensuring sufficient liquidity for expected obligations [266]. - The Corporation's liquidity sources included $4.549 billion in cash on deposit with the FRB and $7.441 billion in unencumbered investment securities, totaling available liquidity of $42.450 billion as of March 31, 2025 [291]. Direct Express Program - For the three months ended March 31, 2025, average deposits related to the Direct Express program were $3.6 billion, all of which were noninterest-bearing [299]. - Card fee income related to the Direct Express program was $28 million for the three months ended March 31, 2025 [299]. - Noninterest expenses related to the Direct Express program for the three months ended March 31, 2025 were $28 million, primarily due to outside processing fee expense [299]. - The Corporation cannot currently predict the impact of the potential loss of the Direct Express contract and related deposits, which could be material [299].

Group 1 - Comerica Incorporated announced the results of its annual meeting of shareholders, where directors were elected for one-year terms [1] - Shareholders ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm and approved a non-binding advisory proposal on executive compensation [2] Group 2 - Comerica is a financial services company headquartered in Dallas, Texas, with a focus on three business segments: The Commercial Bank, The Retail Bank, and Wealth Management [3] - As of March 31, 2025, Comerica reported total assets of $77.6 billion and operates in 15 states, servicing 13 of the 15 largest U.S. metropolitan areas, as well as Canada and Mexico [3]

Core Insights - Comerica Bank has appointed Matt Marchbanks as the Fort Worth Market President, where he will also serve as Senior Vice President, Middle Market and Business Banking Group Manager [1][2] Group 1: Leadership and Responsibilities - Marchbanks will manage business and community development efforts in Tarrant County, focusing on acquiring and strengthening relationships [1] - He will oversee the Middle Market & Business Banking relationship teams, reporting to Brian Enzler, Director of Middle Market and Business Banking for North Texas [1][2] Group 2: Background and Experience - Marchbanks has 25 years of experience in financial services, having started his career with the Comerica Commercial Banking Development Program [2] - He has held various leadership roles, most recently leading commercial banking for the Dallas-Fort Worth West and South Florida regions [2] - Marchbanks is a longtime resident of Tarrant County and holds a bachelor's degree in finance from Texas A&M University [3] Group 3: Company Overview - Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and is one of the 25 largest commercial U.S. financial holding companies [4] - The company operates through three business segments: The Commercial Bank, The Retail Bank, and Wealth Management [4] - As of March 31, 2025, Comerica reported total assets of $77.6 billion [4]

Financial Results Announcement - Comerica Incorporated plans to release its 2026 quarterly financial results on specific dates, with the fourth quarter results scheduled for January 23, 2026 [1] - The first quarter results will be announced on April 21, 2026, the second quarter on July 21, 2026, and the third quarter on October 21, 2026 [1] - Additional information regarding these calls will be provided later, and financial results will be filed on Form 8-K available on the SEC website [1] Company Overview - Comerica Incorporated is a financial services company headquartered in Dallas, Texas, operating through three business segments: The Commercial Bank, The Retail Bank, and Wealth Management [2] - It is one of the 25 largest commercial U.S. financial holding companies, focusing on building relationships to help individuals and businesses succeed [2] - As of March 31, 2025, Comerica reported total assets of $77.6 billion and has expanded into new regions, including North Carolina and Colorado [2]

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]

Market Overview - U.S. stocks experienced a significant decline, with the Dow Jones index dropping over 1,000 points, down 2.73% to 38,072.59, NASDAQ falling 3.19% to 15,767.59, and S&P 500 decreasing 2.86% to 5,131.53 [1] - Consumer discretionary shares fell by 3.1%, while consumer staples shares only decreased by 0.7% [1][2] Company Earnings - Comerica Incorporated reported better-than-expected earnings for its first quarter, posting earnings of $1.25 per share, surpassing the analyst consensus estimate of $1.15 per share. However, quarterly sales of $829 million fell short of the consensus estimate of $831.34 million [3] Commodity Market - In commodity trading, oil prices decreased by 2.6% to $62.97, while gold prices increased by 3.3% to $3,439.00. Silver rose by 1.2% to $32.850, and copper gained 1% to $4.7835 [6] European Market - European shares also declined, with the eurozone's STOXX 600 falling 0.29%, Germany's DAX 40 down 0.64%, and France's CAC 40 dipping 0.76% [7] Asian Market - Asian markets showed mixed results, with Japan's Nikkei 225 falling 1.30%, while China's Shanghai Composite and India's BSE Sensex gained 0.45% and 1.09%, respectively [8] Notable Stock Movements - Upexi, Inc. shares surged 619% to $16.31 following a private placement announcement with approximately $100 million in gross proceeds. SHF Holdings, Inc. shares increased by 93% to $4.12 after announcing a strategic partnership with FundCanna [9] - Wolverine World Wide, Inc. shares rose 8% to $11.62 after an upgrade from Baird analyst Jonathan Komp [9] - Conversely, Thunder Power Holdings, Inc. shares plummeted 63% to $0.0506 due to a Nasdaq delisting notice, and New Fortress Energy Inc. shares fell 12% to $5.03 after announcing a $700 million proposed offering of senior notes [9]

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]