Summary of Comerica's Conference Call Company Overview - **Company**: Comerica - **Industry**: Banking and Financial Services - **Key Executives Present**: Jim Herzog (CFO), Peter Cefcic (Chief Banking Officer), Allison Fleming (Head of Payments) [2][3] Core Points and Arguments Company Positioning and Strategy - Comerica has a strong foundation with over 175 years of history, known for its credit culture, capital strength, and diverse deposit base [4][5] - The bank operates in key markets including Michigan, Texas, California, and has expanded into the Southeast, positioning itself as a national player [6] - Focus on growth initiatives in middle market, business banking, and small business sectors, with plans to provide deeper insights into these areas in future conferences [7] Payments and Deposits Business - Significant investments in the payments sector, particularly in treasury management and card services, aiming to become a leader in payments [8][10] - The bank is actively deploying strategies to enhance core deposit growth through partnerships with high-growth verticals like embedded finance companies [11][12] - Aiming for a compound annual growth rate (CAGR) of 5% to 7% in deposits, with a focus on faster payments and fintech partnerships [17] Financial Performance and Growth - The "maximize product solution" for small businesses has grown from $74 million to over $1 billion in six quarters, showcasing effective deployment strategies [15] - Commercial sweeps have increased from $400 million to over $3.5 billion, indicating strong performance in deposit growth [15] - The bank is focused on maintaining a strong core deposit base while also exploring higher-yielding deposits [57] Market Conditions and Client Sentiment - Current market sentiment is improving, with loan growth observed across various sectors, although not yet at robust levels [38][39] - Clients are feeling more confident, but there is still uncertainty regarding tariffs and interest rates affecting M&A activity [43][44] - The bank is optimistic about the potential for loan growth, particularly in sectors like environmental services and technology [48] Capital Management - Comerica completed a $100 million common share repurchase, enhancing capital efficiency [75] - The bank maintains a strong capital position with a CET1 ratio above 12%, allowing for continued share buybacks and support for loan growth [76] Regulatory Environment - Potential changes in bank regulation could allow Comerica to focus more on revenue initiatives rather than compliance, which would be beneficial for growth [78][79] Additional Important Insights - The bank's service model combines big bank capabilities with personalized service, which is a key differentiator in the market [13][14] - The focus on wealth management and capital markets is expected to yield significant growth opportunities, particularly with the addition of M&A teams [63][66] - The bank is prepared to navigate potential credit challenges, with no immediate stress observed in specific industries [73] This summary encapsulates the key points discussed during the conference call, highlighting Comerica's strategic focus, market positioning, and growth initiatives in the banking sector.

This press release does not constitute a notice of redemption under the certificate of designations governing the Preferred Stock or the deposit agreement governing the Depositary Shares. All regulatory requirements relating to the redemption of the Preferred Stock and corresponding Depositary Shares have been satisfied by Comerica. The Depositary Shares are held through The Depository Trust Company ("DTC") and will be redeemed in accordance with the applicable procedures of DTC. Payment of the Redemption P ...

Core Viewpoint - Comerica Incorporated (CMA) has shown strong performance with a 21.2% increase in shares over the past year, surpassing the industry's growth of 19.5% [1] Price Performance - CMA's stock performance indicates strong investor confidence, outperforming peers like Northern Trust Corporation (NTRS) and BankUnited Inc. (BKU) [1][9] Factors Supporting CMA's Growth - **Improving Operational Efficiency**: The company is optimizing its cost structure by closing underutilized branches, reducing management layers, and enhancing digital tools, leading to a 3.2% year-over-year decline in non-interest expenses in Q1 2025 [3][4] - **Solid Net Interest Income (NII)**: NII has shown a compound annual growth rate (CAGR) of 2.8% over five years, with a 4.9% year-over-year increase in Q1 2025, driven by higher interest rates [5][6] - **Stable Loan Portfolio**: Total loans reached $49.9 billion as of March 31, 2025, with a five-year CAGR of nearly 1%, despite a 1.2% sequential decline due to commercial lending pressures [7] - **Strong Liquidity Position**: The company has a total liquidity capacity of $42.5 billion and $25.4 billion in borrowing capacity at the Federal Reserve, providing financial flexibility [10] - **Impressive Capital Distribution**: With a Common Equity Tier 1 (CET1) ratio of 12.05%, the bank supports robust shareholder return programs, including a quarterly dividend of 71 cents per share and a dividend yield of 4.9% [11][12] Earnings Strength - Comerica has a strong earnings surprise history, beating the Zacks Consensus Estimate in three of the last four quarters with an average surprise of 12.58% [12] - Over the past three to five years, earnings per share (EPS) have grown at a CAGR of 6.37%, higher than the industry average of 4.10% [13] Earnings and Sales Estimates - **Earnings Estimates**: For the current year, the Zacks Consensus Estimate for EPS is $5.11, with a projected decline of 5.2% in 2025, followed by a rise of 9.8% in 2026 [14] - **Sales Estimates**: The current year sales estimate stands at $3.39 billion, with a year-over-year growth estimate of 3.91% [16] Valuation Consideration - CMA's shares are considered expensive relative to the industry, trading at a forward P/E of 11.26X, above the industry average of 11.05X [19]

Core Points - Comerica Bank is hosting its 16th annual Metro Detroit Shred Day on June 14, 2025, at its Great Lakes Campus, offering free document shredding and electronics recycling to the public [1][2] - The event aims to securely dispose of sensitive documents and electronics while also collecting non-perishable food donations for Gleaners Community Food Bank [3][10] Group 1: Event Details - The Shred Day will take place from 8 a.m. to 1 p.m. and is open to residents, small businesses, and nonprofit organizations [1][2] - Last year, over 1,100 vehicles participated, resulting in approximately 169,000 pounds of paper and 17,000 pounds of electronics being recycled [4][7] Group 2: Community Impact - The event not only focuses on fraud prevention but also contributes to sustainability and food security, with over 2,000 non-perishable food donations and approximately $4,500 in cash donations collected in 2024 [5][6] - In its 15-year history, the event has collected nearly 1.3 million pounds of shredded documents, significantly reducing environmental impact by generating 74% less air pollution and using 50% less water compared to traditional paper production [6][7] Group 3: Partnerships and Support - Comerica is partnering with Iron Mountain and Information Systems Resources to provide secure disposal services [3][4] - Gleaners Community Food Bank has been involved for 10 years, receiving over 17,000 pounds of food and approximately $23,000 in cash donations, resulting in over 95,000 meals provided [7][11]

Industry Overview - The U.S. banking industry is experiencing a trend towards consolidation, with over 4,500 banks currently operating, while four major banks—JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup—control trillions in assets [1] - Smaller banks are likely to continue merging to achieve scale, and similar consolidation may occur among large regional banks with assets ranging from $75 billion to $700 billion [1] Regulatory Environment - The Trump administration has facilitated mergers and acquisitions in the banking sector, contrasting with the more restrictive approach of the Biden administration [2] - Large regional banks must increase their size to effectively compete with the top four banks, and acquisition candidates can often command a premium for their shareholders [2] Potential Acquisition Targets Comerica - Comerica has approximately $78 billion in assets and operates in key markets such as Texas and the Southeast U.S., positioning it awkwardly between local and larger banks [3] - The $100 billion asset threshold has been a regulatory concern, as banks of this size are often deemed "too big to fail," necessitating reassessment of regulations and capital requirements [4] - Comerica has opted not to extend a banking relationship with the U.S. Treasury that provided $3 billion in noninterest-bearing deposits, which may contribute to its lower valuation compared to peers [6] - The bank's price-to-tangible book value (TBV) is a critical metric for potential acquisitions, with a lower price-to-TBV making it more attractive for buyers [7][10] - CEO Curtis Farmer has a change-in-control agreement that would yield over $35 million if the bank is acquired [11] KeyCorp - KeyCorp is another potential acquisition target, with a lower price-to-TBV and strong capital-light, fee-based businesses, including investment banking and trust services [12] - The bank sold a 14.9% stake to Scotiabank for $2.8 billion to enhance capital flexibility, allowing Scotiabank to increase its stake to 19.9% over the next five years [13][14] - KeyCorp's CEO Chris Gorman also has a change-in-control agreement that would pay out approximately $35.7 million if the bank is acquired [15]

DALLAS, May 28, 2025 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) announced it will participate in the 2025 Morgan Stanley US Financials Conference on Wednesday, June 11, 2025.Comerica Incorporated also provided details for its second quarter 2025 earnings call on Friday, July 18, 2025.Interested parties may access additional information through the following details:2025 MORGAN STANLEY US FINANCIALS CONFERENCE Date: Wednesday, June 11, 2025 Time:  8 a.m. CT / 9 a.m. ET Participating: ...

Top 4 entrepreneurs to compete on June 11 for startup funds and business support to open a brick-and-mortar locationDETROIT, May 27, 2025 /PRNewswire/ -- The Comerica Hatch Detroit Contest by TechTown, the small business competition behind many of Detroit's most popular neighborhood storefronts, has announced the Top 4 businesses advancing to the final stage of the 2025 competition.These four entrepreneurs will have the opportunity to compete in the Hatch Off, where they will pitch their businesses for the ...

Top 10 entrepreneurs vie for $100,000 prize from Comerica Bank as public voting beginsDETROIT, May 15, 2025 /PRNewswire/ -- The Comerica Hatch Detroit Contest by TechTown, the small business competition behind many of Detroit's most popular neighborhood storefronts, is unveiling its Top 10 semifinalists. These entrepreneurs will go head-to-head over the coming weeks, competing to win $100,000 in startup funds from Comerica Bank to open a brick-and-mortar storefront in Detroit, Hamtramck or Highland Park. ...

Core Points - Comerica Bank is contributing $250,000 to support small business incubation during National Small Business Week, with each of the five selected nonprofit organizations receiving $50,000 [1][3][4] - The five nonprofit organizations include Impact Ventures, Pacific Asian Consortium in Employment, TechTown Detroit, Women's Business Enterprise Alliance, and Working Solutions CDFI, all focused on entrepreneurial development [3][4] - Comerica Bank has established dedicated small business banking teams and launched innovative initiatives to enhance small business growth and customer experiences since 2022 [6][7] Summary by Category Financial Contribution - Comerica Bank is donating a total of $250,000 to five nonprofit organizations, each receiving $50,000, to assist entrepreneurs in various markets [1][3] - The contribution is part of a week-long celebration of small businesses, highlighting the importance of community support [3][4] Nonprofit Organizations - Impact Ventures has engaged nearly 3,500 individuals and supported 255 entrepreneurs who raised over $25 million [12][13] - Pacific Asian Consortium in Employment has helped over 1.4 million individuals achieve economic mobility since its founding [14][15] - TechTown Detroit has supported over 6,090 companies, creating 2,277 jobs and raising more than $406 million in capital [17] - Women's Business Enterprise Alliance has doubled its membership and established scholarship and mentoring programs since 1995 [19][20] - Working Solutions has deployed $60 million in capital and provided over 50,000 consulting hours to more than 3,000 small businesses [21] Community Engagement and Initiatives - Comerica Bank is hosting Business $ense bootcamps and various activities for small businesses during National Small Business Week [9] - The bank has launched services like Comerica BusinessHQ™ and Comerica CoWorkSpaces® to provide resources and collaborative spaces for small businesses [7][8] - Comerica is recognized for its long-term relationships and advisory capabilities in small business banking [10]

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].