Assistance from Comerica will help provide free access to the aquarium every Thursday in August, and help support preservation and restoration of the park DETROIT, July 30, 2024 /PRNewswire/ -- The Belle Isle Conservancy is extending the aquarium's hours of operation to provide community members free access every Thursday in August with support from Comerica Bank. The bank's assistance, which includes a $10,000 contribution, will not only enable the aquarium to be open an extra day every week in August but ...

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Comerica Incorporated's unaudited consolidated financial statements, including Balance Sheets, Statements of Comprehensive Income, Shareholders' Equity, and Cash Flows, along with detailed accounting policy notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$79.6 billion** at June 30, 2024, from **$85.8 billion** at year-end 2023, primarily due to reduced interest-bearing deposits, with total liabilities and shareholders' equity also declining Consolidated Balance Sheet Highlights (unaudited) | (in millions) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$79,597** | **$85,834** | | Total Loans, net | $51,164 | $51,425 | | Investment securities available-for-sale | $15,656 | $16,869 | | Interest-bearing deposits with banks | $4,093 | $8,059 | | **Total Liabilities** | **$73,436** | **$79,428** | | Total Deposits | $62,459 | $66,762 | | Short-term borrowings | $1,250 | $3,565 | | Medium- and long-term debt | $7,112 | $6,206 | | **Total Shareholders' Equity** | **$6,161** | **$6,406** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income for the six months ended June 30, 2024, significantly decreased to **$344 million** from **$597 million** in 2023, driven by lower net interest income and higher noninterest expenses, resulting in diluted EPS of **$2.47** Six Months Ended June 30, (unaudited) | (in millions, except per share data) | 2024 | 2023 | | :--- | :--- | :--- | | Net interest income | $1,081 | $1,329 | | Provision for credit losses | $14 | $63 | | Total noninterest income | $527 | $585 | | Total noninterest expenses | $1,158 | $1,086 | | **Net Income** | **$344** | **$597** | | **Diluted EPS** | **$2.47** | **$4.40** | [Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity decreased from **$6.41 billion** at year-end 2023 to **$6.16 billion** at June 30, 2024, primarily due to a **$415 million** other comprehensive loss and **$200 million** in dividends, partially offset by net income Changes in Shareholders' Equity (Six Months Ended June 30, 2024) | (in millions) | Amount | | :--- | :--- | | **Balance at Dec 31, 2023** | **$6,406** | | Net income | $344 | | Other comprehensive loss, net of tax | ($415) | | Cash dividends declared (Common & Preferred) | ($200) | | Share-based compensation & stock plans | $30 | | **Balance at June 30, 2024** | **$6,161** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$94 million** for the six months ended June 30, 2024, a reversal from **$307 million** provided in 2023, leading to a **$4.69 billion** decrease in cash and cash equivalents due to financing activities Net Cash Flow Summary (Six Months Ended June 30) | (in millions) | 2024 | 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(94) | $307 | | Net cash provided by (used in) investing activities | $1,171 | $(1,145) | | Net cash (used in) provided by financing activities | $(5,767) | $4,779 | | **Net (decrease) increase in cash and cash equivalents** | **$(4,690)** | **$3,941** | | Cash and cash equivalents at end of period | $4,812 | $10,223 | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, fair value, investment securities, credit quality, derivatives, debt, and segment performance, highlighting ASU 2023-02 adoption, nonperforming loan details, and derivative hedging impacts - Effective January 1, 2024, the Corporation adopted ASU 2023-02, expanding the use of the proportional amortization method for tax equity investments, resulting in a **$4 million** reduction to retained earnings[6](index=6&type=chunk) - Total nonaccrual loans increased to **$226 million** at June 30, 2024, from **$178 million** at December 31, 2023[41](index=41&type=chunk) - The Corporation de-designated and subsequently re-designated **$7.0 billion** of interest rate swaps due to the upcoming cessation of the BSBY index, impacting noninterest income by a net loss of **$130 million** in Q4 2023 and Q1 2024[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=42&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and operations, covering performance, segment results, balance sheet changes, capital, and risk management, including the potential loss of the Direct Express program contract [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Net income for Q2 2024 increased to **$206 million** from **$138 million** in Q1 2024, while the first six months of 2024 saw net income decrease to **$344 million** from **$597 million** year-over-year due to lower net interest income Q2 2024 vs Q1 2024 Performance | (in millions) | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Net interest income | $533 | $548 | | Noninterest income | $291 | $236 | | Noninterest expenses | $555 | $603 | | **Net income** | **$206** | **$138** | Six Months 2024 vs Six Months 2023 Performance | (in millions) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net interest income | $1,081 | $1,329 | | Noninterest income | $527 | $585 | | Noninterest expenses | $1,158 | $1,086 | | **Net income** | **$344** | **$597** | [Strategic Lines of Business](index=51&type=section&id=Strategic%20Lines%20of%20Business) In H1 2024, net income decreased across Commercial Bank (**$552 million**), Retail Bank (**$85 million**), and Wealth Management (**$42 million**) due to lower net interest income and higher expenses, while Finance & Other reported a larger net loss - Commercial Bank: Net income decreased by **$66 million** to **$552 million** in H1 2024, driven by a **$103 million** drop in net interest income from higher deposit costs and FTP charges[97](index=97&type=chunk) - Retail Bank: Net income fell by **$33 million** to **$85 million** in H1 2024, as a **$32 million** decrease in net interest income and a **$22 million** rise in noninterest expenses weighed on results[140](index=140&type=chunk) - Wealth Management: Net income declined by **$11 million** to **$42 million** in H1 2024, primarily due to a **$15 million** decrease in net interest income and a **$13 million** drop in noninterest income[119](index=119&type=chunk) [Financial Condition](index=55&type=section&id=Financial%20Condition) Total assets decreased by **$6.2 billion** to **$79.6 billion** at June 30, 2024, primarily due to reduced Federal Reserve deposits, while the estimated Common Equity Tier 1 capital ratio improved to **11.55%**, with no current share repurchases Capital Ratios | Ratio | June 30, 2024 (Est.) | Dec 31, 2023 | | :--- | :--- | :--- | | Common equity tier 1 (CET1) | 11.55% | 11.09% | | Tier 1 risk-based | 12.08% | 11.60% | | Total risk-based | 14.02% | 13.52% | | Tangible common equity | 6.49% | 6.30% | - Management is not currently engaged in repurchasing shares and will monitor earnings, capital needs, and market conditions before resuming the program; the remaining authorization is for **4.977 million** shares[125](index=125&type=chunk)[146](index=146&type=chunk) [Risk Management](index=58&type=section&id=Risk%20Management) Credit risk increased with nonperforming assets rising to **$226 million**, while the allowance for credit losses slightly decreased to **1.38%**; significant concentration exists in commercial real estate (**36%** of loans), and the potential loss of the Direct Express program poses a major emerging risk - The company received preliminary notification that it was not selected to continue the Direct Express program for the U.S. Treasury, which had average deposits of **$3.3 billion** in Q2 2024 and generated **$137 million** in card fees in 2023, potentially having a material impact[195](index=195&type=chunk) Credit Quality Metrics | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Nonperforming Assets | $226M | $178M | | Nonperforming loans as % of total loans | 0.44% | 0.34% | | Allowance for credit losses as % of total loans | 1.38% | 1.40% | | Total criticized loans | $2,430M | $2,405M | - Commercial real estate loans represent the largest concentration of credit risk, totaling **$18.7 billion**, or **36%** of total loans at June 30, 2024[158](index=158&type=chunk)[177](index=177&type=chunk) - Total available liquidity stood at **$41.4 billion** as of June 30, 2024, comprising cash, unencumbered securities, and borrowing capacity from the FHLB and FRB[193](index=193&type=chunk) [Critical Accounting Estimates](index=71&type=section&id=Critical%20Accounting%20Estimates) No significant changes have occurred in the Corporation's critical accounting estimates, including allowance for credit losses, fair value, goodwill, pension accounting, and income taxes, since the 2023 Annual Report - There have been no significant changes to the Corporation's critical accounting estimates, which include allowance for credit losses, fair value, goodwill, pension accounting, and income taxes, since the 2023 Annual Report[198](index=198&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the 'Market and Liquidity Risk' subsection within 'Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations' for market risk disclosures - Disclosures for the current period regarding market risk are located in the 'Market and Liquidity Risk' section of the MD&A (Item 2)[222](index=222&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2024, with no material changes to internal control over financial reporting identified during the quarter - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of the evaluation date, June 30, 2024[222](index=222&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, such controls[222](index=222&type=chunk) [PART II. OTHER INFORMATION](index=73&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for legal proceedings information, disclosing an estimated aggregate range of reasonably possible losses from zero to approximately **$172 million** as of June 30, 2024 - For information on legal proceedings, the report refers to Note 12 – Contingent Liabilities[200](index=200&type=chunk) - The estimated aggregate range of reasonably possible losses for all legal and regulatory matters, in excess of established accruals, is from zero to approximately **$172 million** at June 30, 2024[76](index=76&type=chunk) [Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Corporation's risk factors as previously disclosed in its Form 10-K for the year ended December 31, 2023 - There has been no material change in the Corporation's risk factors as disclosed in the Form 10-K for the year ended December 31, 2023[223](index=223&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section refers to the 'Capital' subsection within the MD&A for information on equity security purchases, noting that management is not currently engaged in share repurchases - For information on the purchase of equity securities, the report refers to the 'Capital' section of the MD&A[224](index=224&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2024 - No director or officer adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during Q2 2024[233](index=233&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the quarterly report, including the company's bylaws, CEO and CFO certifications, and financial statements in Inline XBRL format - The report includes standard exhibits such as the Restated Certificate of Incorporation, Bylaws, CEO/CFO certifications (Rule 13a-14(a) and Section 1350), and financial statements in Inline XBRL format[226](index=226&type=chunk)

DALLAS, July 23, 2024 /PRNewswire/ -- The Board of Directors of Comerica Incorporated (NYSE: CMA) declared a quarterly cash dividend for common stock of 71 cents ($0.71) per share. The dividend is payable Oct. 1, 2024, to shareholders of record at the close of business on Sept. 13, 2024. The Board also declared a dividend of $1,406.25 per share (equivalent to $14.0625 per depositary share) on the Series A Non-Cumulative Perpetual Preferred Stock of Comerica Incorporated, payable Oct. 1, 2024, to preferred s ...

Company Overview - Comerica is an American financial services company with over 400 branches across the US, including Texas, Michigan, California, Florida, and Arizona [1] - KeyCorp is the holding company for KeyBank National Association, one of the top 30 largest US banks, based in Cleveland, Ohio, known for its high dividend rate of around 5.50% [16][17] - SoFi Technologies is an American personal finance company and online bank based in San Francisco, offering various financial products [6] Financial Performance - Comerica generated a quarterly total revenue of $1.53 billion, declining by 4.3% year-over-year, with net income from continuing operations falling by 5.2% to $237 million [2] - KeyCorp has performed poorly across all key metrics, with a significant decline in revenue and net income [4] - SoFi Technologies reported a net revenue of $645 million and a net income of $88 million, indicating strong financial performance [19] Market Position and Challenges - Comerica's market cap is around $7.4 billion, but it was recently delisted from the S&P 500 due to not meeting the market cap requirement of $12.7 billion [13][14] - Despite beating analysts' estimates, Comerica's shares tumbled, and it was informed by the US Treasury that it would not continue providing the Direct Express Card [15] - SoFi Technologies faces concerns regarding its profitability sustainability, particularly due to its focus on student loan refinancing and high borrower credit risk [7] Industry Context - The financial industry remains one of the most profitable sectors globally, but some financial stocks, including KeyCorp, have not benefited from the industry's resurgence [9][10] - A combination of low revenue generation, inability to facilitate lending, and low liquidity of the target audience makes certain financial stocks unattractive for investors [10]

Core Viewpoint - Comerica Incorporated reported better-than-expected quarterly results, leading to changes in analysts' price targets and ratings for the stock [5]. Financial Performance - Comerica reported quarterly earnings of $1.53 per share, surpassing the analyst consensus estimate of $1.19 per share [5]. - The company achieved quarterly sales of $824 million, exceeding the analyst consensus estimate of $813.472 million [5]. Analyst Ratings and Price Targets - Truist Securities analyst Brandon King downgraded Comerica from Buy to Hold and reduced the price target from $55 to $53 [2]. - Barclays analyst Jason Goldberg maintained an Underweight rating and lowered the price target from $59 to $56 [2]. - Piper Sandler analyst Scott Siefers kept a Neutral rating and raised the price target from $51 to $52 [2].

JHVEPhoto/iStock Editorial via Getty Images Comerica lost its contract for the Direct Express debit card with the U.S. Treasury. Because this contract expires in early 2025, it does not impact 2024 financials. However with 4.5 million beneficiaries, this will be a large 2025 headwind. This program provided $3.3 billion of noninterest-bearing deposits, though CMA expects it to be a "long" process next year for these to wind down. Now, by next year, rates should be lower, but even assuming this funding is rep ...

Interest rate pressure and a lost government contract outweighed a better-than-expected quarter. Comerica (CMA -10.92%) topped quarterly expectations in its latest earnings report, but the bank delivered a couple of surprises that left investors feeling less confident about what lies ahead. Wall Street is mostly focused on the negative, sending Comerica shares down about 12% as of noon ET. Better, but not great Bank stock investors have had a lot to digest so far in 2024. The Federal Reserve's push to fight ...

Core Viewpoint - The financial results of various companies in the banking sector reflect challenges such as declining net interest income (NII), increased expenses, and mixed credit quality, despite some support from higher loan demand and capital positions. Group 1: Financial Performance - FNB's results were impacted by higher provisions, expenses, and lower NII, but supported by increased non-interest income and higher average loans and deposits [2] - First Horizon Corporation's adjusted earnings per share of 36 cents missed estimates and declined 7.7% year over year [4] - Net income for common shareholders at First Horizon was $200 million, down 24.8% from the previous year [5] - Comerica reported adjusted earnings per share of $1.53, beating estimates but down 25.4% year over year [9] - Total quarterly revenues for Comerica were $824 million, down 10.8% year over year but above consensus estimates [10] Group 2: Credit Quality and Provisions - The allowance for credit losses at First Horizon was $717 million, down 1.5% from the year-ago quarter [1] - Total non-performing assets increased 21.5% year over year to $226 million [12] - The allowance for credit losses to total loans ratio was 1.38% as of June 30, 2024, up from 1.31% a year earlier [19] Group 3: Capital Position and Expenses - Comerica's tangible common equity ratio improved to 6.49% from 5.06% year over year [6] - Non-interest expenses for Comerica totaled $555 million, up 3.7% year over year due to increased salaries and FDIC insurance expenses [11] - The total capital ratio for Comerica was 14.02%, up from 12.79% in the prior year [20] - The efficiency ratio for First Horizon was 67.77%, indicating lower profitability compared to 57.50% in the prior year [17] Group 4: Market Reaction - Shares of the company lost more than 12% following the earnings release due to negative aspects such as declining net interest and fee income [7] - FNB's adjusted earnings per share of 34 cents lagged estimates by a penny and declined 12.8% from the prior year [23]

Key Takeaways Shares of Comerica (CMA) tumbled Friday despite second-quarter results beating estimates, as the regional bank said it has been informed by the U.S. Treasury that it likely won't be selected to continue exclusively providing the Direct Express card. Comerica's net income fell to $206 million from $273 million in the same quarter last year, but topped the $165.4 million consensus estimate of analysts compiled by Visible Alpha. The Treasury has given Comerica preliminary notice that it likely wo ...

Comerica Incorporated (NYSE:CMA) Q2 2024 Earnings Conference Call July 19, 2024 8:00 AM ET Company Participants Kelly Gage - Director, Investor Relations Curt Farmer - President, Chairman & Chief Executive Officer Jim Herzog - Chief Financial Officer Peter Sefzik - Chief Banking Officer Melinda Chausse - Chief Credit Officer Conference Call Participants Ken Usdin - Jefferies Chris McGratty - KBW Bernard Von Gizycki - Deutsche Bank Mike Mayo - Wells Fargo Manan Gosalia - Morgan Stanley Samuel Varga - UBS Ope ...