COMERICA INC /NEW/ [CMA] Filings

10-Q 1 cma-20240930.htm 10-Q cma-20240930

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________

FORM 10-Q

______________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-10706

____________________________________________________________________________________

Comerica Incorporated

(Exact name of registrant as specified in its charter)

___________________________________________________________________________________


Delaware			38-1998421
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

Comerica Bank Tower

1717 Main Street, MC 6404

Dallas, Texas 75201

(Address of principal executive offices)

(Zip Code)

(833) 571-0486

(Registrant’s telephone number, including area code)

_________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $5 par value	CMA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

$5 par value common stock: Outstanding as of October 24, 2024: 131,514,178 shares

Table of Contents

COMERICA INCORPORATED AND SUBSIDIARIES

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Consolidated Balance Sheets at September 30, 2024 (unaudited) and December 31, 2023			1

Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)			2

Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (unaudited)			3

Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (unaudited)			4

Notes to Consolidated Financial Statements (unaudited)			5

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			38

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk			66

ITEM 4. Controls and Procedures			66

PART II. OTHER INFORMATION

ITEM 1. Legal Proceedings			66

ITEM 1A. Risk Factors			66

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds			66

ITEM 5. Other Information			66

ITEM 6. Exhibits			67

Signature			68

Table of Contents

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

Comerica Incorporated and Subsidiaries



(in millions, except share data)	September 30, 2024		December 31, 2023
	(unaudited)
ASSETS
Cash and due from banks	$	870	$	1,443
Interest-bearing deposits with banks	5,523		8,059
Other short-term investments	364		399
Investment securities available-for-sale	15,886		16,869

Commercial loans	25,953		27,251
Real estate construction loans	3,859		5,083
Commercial mortgage loans	14,774		13,686
Lease financing	767		807
International loans	1,003		1,102
Residential mortgage loans	1,901		1,889
Consumer loans	2,260		2,295
Total loans	50,517		52,113
Allowance for loan losses	(686)		(688)
Net loans	49,831		51,425
Premises and equipment	476		445
Accrued income and other assets	6,713		7,194
Total assets	$	79,663	$	85,834
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	23,819	$	27,849
Money market and interest-bearing checking deposits	31,469		28,246
Savings deposits	2,155		2,381
Customer certificates of deposit	3,592		3,723
Other time deposits	2,017		4,550
Foreign office time deposits	25		13
Total interest-bearing deposits	39,258		38,913
Total deposits	63,077		66,762
Short-term borrowings	—		3,565
Accrued expenses and other liabilities	2,434		2,895
Medium- and long-term debt	6,786		6,206
Total liabilities	72,297		79,428
Fixed rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share:
Authorized - 4,000 shares
Issued - 4,000 shares	394		394
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141		1,141
Capital surplus	2,217		2,224
Accumulated other comprehensive loss	(2,355)		(3,048)
Retained earnings	11,949		11,727
Less cost of common stock in treasury - 95,441,515 shares at 9/30/2024 and 96,266,568 shares at 12/31/2023	(5,980)		(6,032)
Total shareholders’ equity	7,366		6,406
Total liabilities and shareholders’ equity	$	79,663	$	85,834

See notes to consolidated financial statements (unaudited).

Table of Contents

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

Comerica Incorporated and Subsidiaries


	Three Months Ended September 30,				Nine Months Ended September 30,

(in millions, except per share data)	2024		2023		2024		2023

INTEREST INCOME
Interest and fees on loans	$	798	$	862	$	2,409	$	2,491
Interest on investment securities	99		105		302		326
Interest on short-term investments	85		136		261		309
Total interest income	982		1,103		2,972		3,126
INTEREST EXPENSE
Interest on deposits	330		271		952		590
Interest on short-term borrowings	1		125		47		333
Interest on medium- and long-term debt	117		106		358		273
Total interest expense	448		502		1,357		1,196
Net interest income	534		601		1,615		1,930
Provision for credit losses	14		14		28		77
Net interest income after provision for credit losses	520		587		1,587		1,853
NONINTEREST INCOME
Card fees	64		71		194		212
Fiduciary income	57		59		166		179
Service charges on deposit accounts	46		47		137		140
Capital markets income	39		35		106		113
Commercial lending fees	17		19		50		55
Brokerage fees	13		6		37		22
Bank-owned life insurance	12		12		33		36
Letter of credit fees	10		10		30		31

Risk management hedging income (loss)	7		17		(1)		32
Other noninterest income	12		19		52		60
Total noninterest income	277		295		804		880
NONINTEREST EXPENSES
Salaries and benefits expense	335		315		1,006		947
Outside processing fee expense	69		75		205		207
Software expense	46		44		135		127
Occupancy expense	46		44		134		126
Equipment expense	13		12		38		36
FDIC insurance expense	11		19		66		48
Advertising expense	10		12		30		30
Other noninterest expenses	32		34		106		120
Total noninterest expenses	562		555		1,720		1,641
Income before income taxes	235		327		671		1,092
Provision for income taxes	51		76		143		244
NET INCOME	184		251		528		848
Less:
Income allocated to participating securities	1		1		3		4
Preferred stock dividends	6		6		17		17
Net income attributable to common shares	$	177	$	244	$	508	$	827
Earnings per common share:
Basic	$	1.34	$	1.85	$	3.83	$	6.27
Diluted	1.33		1.84		3.80		6.24
Comprehensive income (loss)	1,292		(533)		1,221		50
Cash dividends declared on common stock	94		94		283		282
Cash dividends declared per common share	0.71		0.71		2.13		2.13

See notes to consolidated financial statements (unaudited).

Table of Contents

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

Comerica Incorporated and Subsidiaries


								Accumulated Other Comprehensive Loss
	Nonredeemable Preferred Stock		Common Stock											Total Shareholders' Equity
			Shares Outstanding			Capital Surplus				Retained Earnings		Treasury Stock
(in millions, except per share data)				Amount
BALANCE AT JUNE 30, 2023	$	394	131.7	$	1,141	$	2,212	$	(3,756)	$	11,648	$	(6,044)	$	5,595

Net income	—		—	—		—		—		251		—		251
Other comprehensive loss, net of tax	—		—	—		—		(784)		—		—		(784)
Cash dividends declared on common stock ($0.71 per share)	—		—	—		—		—		(94)		—		(94)
Cash dividends declared on preferred stock	—		—	—		—		—		(6)		—		(6)


Net issuance of common stock under employee stock plans	—		0.1	—		(1)		—		(3)		5		1

Share-based compensation	—		—	—		9		—		—		—		9

BALANCE AT SEPTEMBER 30, 2023	$	394	131.8	$	1,141	$	2,220	$	(4,540)	$	11,796	$	(6,039)	$	4,972
BALANCE AT JUNE 30, 2024	$	394	132.6	$	1,141	$	2,210	$	(3,463)	$	11,867	$	(5,988)	$	6,161
Net income	—		—	—		—		—		184		—		184
Other comprehensive income, net of tax	—		—	—		—		1,108		—		—		1,108
Cash dividends declared on common stock ($0.71 per share)	—		—	—		—		—		(94)		—		(94)
Cash dividends declared on preferred stock	—		—	—		—		—		(6)		—		(6)


Net issuance of common stock under employee stock plans	—		0.1	—		(2)		—		(2)		8		4
Share-based compensation	—		—	—		9		—		—		—		9

BALANCE AT SEPTEMBER 30, 2024	$	394	132.7	$	1,141	$	2,217	$	(2,355)	$	11,949	$	(5,980)	$	7,366
BALANCE AT DECEMBER 31, 2022	$	394	131.0	$	1,141	$	2,220	$	(3,742)	$	11,258	$	(6,090)	$	5,181

Net income	—		—	—		—		—		848		—		848
Other comprehensive loss, net of tax	—		—	—		—		(798)		—		—		(798)
Cash dividends declared on common stock ($2.13 per share)	—		—	—		—		—		(282)		—		(282)
Cash dividends declared on preferred stock	—		—	—		—		—		(17)		—		(17)



Net issuance of common stock under employee stock plans	—		0.8	—		(44)		—		(11)		51		(4)

Share-based compensation	—		—	—		44		—		—		—		44

BALANCE AT SEPTEMBER 30, 2023	$	394	131.8	$	1,141	$	2,220	$	(4,540)	$	11,796	$	(6,039)	$	4,972
BALANCE AT DECEMBER 31, 2023	$	394	131.9	$	1,141	$	2,224	$	(3,048)	$	11,727	$	(6,032)	$	6,406
Cumulative effect of change in accounting principle (a)	—		—	—		—		—		(4)		—		(4)
Net income	—		—	—		—		—		528		—		528
Other comprehensive income, net of tax	—		—	—		—		693		—		—		693
Cash dividends declared on common stock ($2.13 per share)	—		—	—		—		—		(283)		—		(283)
Cash dividends declared on preferred stock	—		—	—		—		—		(17)		—		(17)


Net issuance of common stock under employee stock plans	—		0.8	—		(52)		—		(2)		52		(2)

Share-based compensation	—		—	—		45		—		—		—		45

BALANCE AT SEPTEMBER 30, 2024	$	394	132.7	$	1,141	$	2,217	$	(2,355)	$	11,949	$	(5,980)	$	7,366

See notes to consolidated financial statements (unaudited).

(a)Effective January 1, 2024, the Corporation adopted ASU 2023-02, which expanded the permitted use of the proportional amortization method to certain tax credit investments.

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Comerica Incorporated and Subsidiaries


	Nine Months Ended September 30,

(in millions)	2024		2023

OPERATING ACTIVITIES
Net income	$	528	$	848
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	28		77
Provision (benefit) for deferred income taxes	13		(25)
Depreciation and amortization	70		64
Net periodic defined benefit credit	(36)		(20)
Share-based compensation expense	45		44
Net amortization of securities	8		15


Net gains on sales of foreclosed property and other bank property	—		(22)


Net change in:

Accrued income receivable	55		(70)
Accrued expenses payable	(188)		134
Other, net	432		(916)
Net cash provided by operating activities	955		129
INVESTING ACTIVITIES
Investment securities available-for-sale:
Maturities and redemptions	1,524		2,061

Purchases	(130)		—



Net change in loans	1,561		(15)
Proceeds from sales of foreclosed property and other bank property	—		27
Net increase in premises and equipment	(118)		(93)

Federal Home Loan Bank stock:
Purchases	(551)		(504)
Redemptions	697

COMERICA INC /NEW/ [CMA] Filings
10-Q	[2024-10]
10-Q	[2024-07]
10-Q	[2024-04-26]
10-K	[2024-02-28]
10-Q	[2023-10-30]
10-Q	[2023-07-26]
10-Q	[2023-04-28]
10-K	[2023-02-14]
10-Q	[2022-10-28]
10-Q	[2022-07-28]
10-Q	[2022-04-27]
10-K	[2022-02-16]
10-Q	[2021-10-29]
10-Q	[2021-07-29]
10-Q	[2021-04-28]
10-K	[2021-02-09]
10-Q	[2020-10-30]
10-Q	[2020-07-31]
10-Q	[2020-04-29]
10-K	[2020-02-11]
10-Q	[2019-10-30]
10-Q	[2019-08-01]
10-Q	[2019-04-29]
10-K	[2019-02-12]
10-Q	[2018-10-31]
10-Q	[2018-07-31]
10-Q	[2018-04-30]
10-K	[2018-02-15]
10-Q	[2017-10-30]
10-Q	[2017-07-31]
10-Q	[2017-04-28]
10-K	[2017-02-15]
10-Q	[2016-11-01]
10-Q	[2016-08-01]
10-Q	[2016-04-29]
10-K	[2016-02-26]
10-Q	[2015-10-29]
10-Q	[2015-07-27]
10-Q	[2015-04-29]
10-K	[2015-02-17]
10-Q	[2014-10-28]
10-Q	[2014-07-29]
10-Q	[2014-04-29]
10-K	[2014-02-14]
10-Q	[2013-10-29]
10-Q	[2013-07-29]
10-Q	[2013-04-29]
10-K	[2013-02-19]
10-Q	[2012-10-30]
10-Q	[2012-07-30]
10-Q	[2012-05-01]
10-K	[2012-02-21]