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].

Core Viewpoint - Comerica Incorporated (CMA) is expected to report a quarterly earnings per share (EPS) of $1.23, reflecting a decline of 19.6% year-over-year, while revenues are forecasted to increase by 2.5% to $844.72 million [1] Earnings Estimates - The consensus EPS estimate has been revised 1.3% lower in the last 30 days, indicating a reevaluation by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Key Financial Metrics - The consensus estimate for the Efficiency Ratio is 70.1%, up from 67.8% in the same quarter last year [5] - Analysts project the Average Balance of Total earning assets to be $70.40 billion, down from $71.83 billion year-over-year [5] - Total nonperforming assets are expected to reach $306.34 million, compared to $226.00 million in the same quarter last year [6] - Total nonperforming loans are estimated at $308.51 million, also up from $226.00 million year-over-year [6] Income Projections - Net interest income is forecasted at $576.45 million, an increase from $533.00 million in the same quarter last year [7] - Total noninterest income is expected to be $263.45 million, down from $291.00 million year-over-year [7] - Service charges on deposit accounts are projected at $46.96 million, slightly up from $46.00 million last year [8] - Commercial lending fees are estimated at $16.82 million, down from $17.00 million in the same quarter last year [8] Additional Income Metrics - Fiduciary income is expected to be $54.69 million, down from $58.00 million year-over-year [9] - Letter of credit fees are projected at $11.94 million, up from $10.00 million last year [9] - Capital markets income is estimated at $32.83 million, down from $37.00 million in the same quarter last year [9] - Card fees are expected to reach $60.98 million, down from $64.00 million year-over-year [10] Stock Performance - Comerica shares have returned +15.1% over the past month, outperforming the Zacks S&P 500 composite's +5% change [11]

Core Viewpoint - Comerica Incorporated (NYSE: CMA) is assigned a "Hold" rating, indicating a balanced perspective on the opportunities and risks surrounding the bank and its market [1]. Company Fundamentals - The company demonstrates solid fundamentals in its structure, suggesting resilience in its operations despite market challenges [1].

Financial Performance & Key Metrics - FY24 net income was $698 million, with earnings per share at $5.02 [11] - Adjusted earnings per share for FY24 were $5.39 [11] - The CET1 ratio was 11.89% [8, 11], well above the company's strategic target - The efficiency ratio for FY24 was 70.68% [11] - Net interest income for FY24 was $2.19 billion [11] Balance Sheet & Loan Portfolio - Average loans for FY24 were $50.979 billion [11], a decrease of $2.924 billion year-over-year [11] - Average deposits for FY24 were $63.901 billion [11], a decrease of $2.117 billion year-over-year [11] - Brokered time deposits were reduced to $4.8 billion at the end of 2024 [8] from $10.4 billion in 2023 [8] Credit Quality & Risk Management - Net charge-offs for FY24 were historically low at 0.10% of average total loans [8] - Allowance for credit losses as a percentage of total loans was 1.44% in 4Q24 [15] - Criticized loans in the Commercial Real Estate business line were 4.4% of loans as of 4Q24 [72] Strategic Initiatives & Market Presence - The company has a diversified geographic footprint with significant presence in Texas (25% of loans, 17% of deposits), California (36% of loans, 27% of deposits), and Michigan (22% of loans, 15% of deposits) [5] - The company resumed share repurchases in 4Q24 [9] - Wealth Management represents approximately 27% of Comerica's Noninterest Income and has >$200B Assets Under Administration (AUA) [100]

Group 1 - Comerica Bank has appointed Stephen Jeffrey as Senior Vice President and Austin Market President, responsible for market strategy, community development, and growth [1] - Jeffrey has over 27 years of experience in Private and Commercial banking in Central Texas, previously working with PNC Bank [2] - His family has been involved in the Austin community for over a century, contributing to local arts, business, and public service [3] Group 2 - Jeffrey is a graduate of the University of Wisconsin-Madison Graduate School of Banking and holds a Bachelor of Business Administration in finance from Texas State University [4] - Comerica Bank is headquartered in Dallas, Texas, and operates across 15 states, focusing on building relationships and providing financial services [5] - As of March 31, 2025, Comerica reported total assets of $77.6 billion [5]

Core Points - The Comerica Bank-Kalamazoo Growlers Summer Food Drive aims to support the South Michigan Food Bank by encouraging public donations of nonperishable food items [1][3] - The food drive runs from June 20 to July 24, with a final donation opportunity at a Kalamazoo Growlers home game on July 25 [2][10] - The initiative has successfully generated approximately 193,000 meals since its inception in 2022 and has seen a total donation of $32,000 from Comerica Bank and its charitable foundation [7] Company Involvement - Comerica Bank emphasizes its commitment to community support through this food drive, highlighting the importance of the South Michigan Food Bank in providing nutritious meals [3][8] - The bank offers incentives for donations, including Growlers ticket vouchers and themed prizes for contributors [4][5] - Comerica Bank has a long-standing presence in Michigan, with over 4,300 employees and a focus on community engagement and charitable contributions [11] Community Impact - The partnership between Comerica Bank, the Kalamazoo Growlers, and the South Michigan Food Bank showcases effective collaboration to address local hunger and food insecurity [8][9] - The food drive is part of a broader community engagement strategy that includes educational initiatives, such as financial education programs for local students [9]

Core Viewpoint - Comerica Bank is adopting new On-Behalf-Of (OBO) payment capabilities on the RTP network, enhancing its instant payment solutions for clients like Monex USA, which will facilitate real-time disbursements and improve operational efficiency [1][3][4]. Group 1: OBO Payment Capabilities - OBO payments allow a sender to make payments on behalf of another person, enhancing payment transparency and risk management through revised rules [2][3]. - The new framework for OBO payments broadens the benefits of RTP transactions, enabling real-time disbursement use cases such as payroll and marketplace payouts [3][4]. Group 2: Impact on Clients - Monex USA will leverage RTP OBO payments to streamline its operational processes and enhance transparency in domestic transactions [4][5]. - The introduction of OBO payments aligns with Monex USA's strategy to integrate advanced payment systems, providing clients with real-time insights and improved decision-making capabilities [5]. Group 3: Comerica Bank Overview - Comerica Bank is a significant player in the U.S. financial services sector, with total assets of $77.6 billion as of March 31, 2025, and a focus on building customer relationships [7]. - The bank has been an early adopter of the RTP network, emphasizing its commitment to delivering innovative payment solutions [4][6]. Group 4: The Clearing House - The Clearing House operates the RTP network, which processes over one million transactions daily for more than 950 banks and credit unions, facilitating secure and efficient payment systems [3][9].

Core Insights - Comerica Incorporated (CMA) has revised its second-quarter 2025 outlook for loans and deposits, indicating a decline in average deposits and an increase in average loans compared to previous guidance [1][3][7] Group 1: Deposit Trends - Average deposits for the quarter to date through May 31, 2025, have decreased by $0.6 billion compared to the first quarter, with significant declines noted in middle market, retail, and corporate banking [1][2][7] - The bank's previous guidance anticipated average deposits to remain flat from the first quarter's $61.9 billion, but current trends suggest downward pressure on this outlook [2][7] Group 2: Loan Performance - Average loans for the quarter to date have increased by $200 million from the previous quarter, driven by growth in corporate and private banking, although this was partially offset by declines in equity fund services and national dealer services [3][7] - Comerica now expects average loan balances to outperform earlier guidance, which had projected a slight decline from the first quarter's $50.2 billion [3][7] Group 3: Income and Expenses - Net interest income (NII) for the second quarter is projected to be relatively flat at $575 million, with a 5-7% increase anticipated for 2025 compared to 2024 [4] - Non-interest income is expected to show stronger growth from the first quarter's $254 million, with a projected 2% year-over-year increase for 2025 [4] - Non-interest expenses are anticipated to be slightly higher than the previous quarter's $584 million, with a 2-3% rise expected for 2025 compared to 2024 [5] Group 4: Market Performance - CMA shares have declined by 7% year-to-date, contrasting with a 2.7% decline in the industry [6]

Core Points - Walter Pat's Bakery Cafe has won the 2025 Comerica Hatch Detroit Contest, receiving a $100,000 grant to establish a physical location in Detroit, Hamtramck, or Highland Park [1][2] - The bakery specializes in seasonal, small-batch viennoiseries and focuses on using Michigan seasonal produce and flavors from the Midwest and South [3] - The founder, Lauren Ellis, has over a decade of experience as a pastry chef and plans to open the bakery in District 5, inspired by her grandmother [4] Business Support and Community Impact - The three runner-up finalists each received a $10,000 grant to assist with their storefront openings, funded by TechTown's Small Business Support Hub [5] - TechTown Detroit, which organized the contest, aims to support local entrepreneurs and enhance the small business ecosystem in Detroit [6][11] - Comerica Bank has invested approximately $1.3 million into the Hatch Detroit program since its inception in 2012, supporting small business development [8] Contest Details - The contest involved public voting, with over 21,000 votes cast to determine the finalists, which included Walter Pat's Bakery Cafe and three others [6][7] - The final event took place at the Wayne State University Industry Innovation Center, where finalists pitched their business ideas to judges and the community [7] - Hatch Detroit has supported 50 alumni businesses, which have collectively created over 500 jobs and invested more than $10 million in economic development [12]

Financial Performance & Strategy - Comerica's strategic revenue investments are designed to drive sustainable revenue growth and compelling returns over time[4,5] - The company is focused on leveraging its strong foundation, executing a differentiated strategy, and driving responsible growth[3] - Comerica aims to maximize deposit balances through tailored SLAs and hands-on executive management, creating a "small bank touch" service model[7,8] - The company is making targeted investments in people and products to achieve scalability and growth, with a focus on faster payments, treasury APIs, and fintech partnerships[9,10] Loan & Deposit Trends - As of May 31, 2025, average loans were trending up with approximately $200 million increase quarter-to-date[22] - The company's loan portfolio as of 1Q25 period-end was $49.9 billion, with 57% fixed rate and 33% floating rate[47] - Average deposits decreased by approximately $0.6 billion quarter-to-date as of May 31, 2025, compared to 1Q25 average[34] - Noninterest-bearing deposits represented 38% of total average deposits in 1Q25[24,68] Capital & Liquidity - The company's CET1 ratio was 12.05% in 1Q25, exceeding the strategic target[37,39] - Comerica has a total liquidity capacity of $42.5 billion as of March 31, 2025[38,71] BSBY Cessation Impacts - The cessation of BSBY is projected to have a $83.5 million positive impact on pre-tax income in FY25[110]