DALLAS, Jan. 19, 2016 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported full-year 2015 net income of $535 million, or $2.92 per diluted share, compared to $593 million, or $3.16 per diluted share for full-year 2014. Fourth quarter 2015 net income was $130 million, compared to $136 million for the third quarter 2015 and $149 million for the fourth quarter 2014. Earnings per diluted share were 71 cents for fourth quarter 2015 compared to 74 cents for third quarter 2015 and 80 cents for fourth quarter 2014.
(dollar amounts in millions, except per share data) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 |
|||||||||
Net interest income |
$ |
433 |
$ |
422 |
$ |
415 |
||||||
Provision for credit losses |
35 |
26 |
2 |
|||||||||
Noninterest income (a) |
270 |
264 |
225 |
|||||||||
Noninterest expenses (a) |
489 |
461 |
419 |
|||||||||
Provision for income taxes |
49 |
63 |
70 |
|||||||||
Net income |
130 |
136 |
149 |
|||||||||
Net income attributable to common shares |
129 |
134 |
148 |
|||||||||
Diluted income per common share |
0.71 |
0.74 |
0.80 |
|||||||||
Average diluted shares (in millions) |
179 |
181 |
184 |
|||||||||
Basel III common equity Tier 1 capital ratio (b) (c) |
10.53 |
% |
10.51 |
% |
n/a |
|||||||
Tier 1 common capital ratio (b) (d) |
n/a |
n/a |
10.50 |
% |
||||||||
Tangible common equity ratio (d) |
9.72 |
9.91 |
9.85 |
|||||||||
Tangible common equity per share of common stock (d) |
$ |
39.41 |
$ |
39.36 |
$ |
37.72 |
(a) |
Effective January 1, 2015, contractual changes to a card program resulted in a change to the accounting presentation of the related revenues and expenses. The effect of this change was increases of $45 million and $48 million to both noninterest income and noninterest expenses in the fourth and third quarters of 2015, respectively. | |||||||||||
(b) |
Basel III capital rules (standardized approach) became effective for Comerica on January 1, 2015. The ratio reflects transitional treatment for certain regulatory deductions and adjustments. For further information, see "Balance Sheet and Capital Management". Capital ratios for prior periods are based on Basel I rules. | |||||||||||
(c) |
December 31, 2015 ratio is estimated. | |||||||||||
(d) |
See Reconciliation of Non-GAAP Financial Measures. | |||||||||||
n/a - not applicable. |
"In 2015 we had good balance sheet growth as average loans topped $48 billion and average deposits grew to a record $58 billion," said Ralph W. Babb, Jr., chairman and chief executive officer. "All the while, we are navigating our way through a modestly growing U.S. economy, as well as increased regulatory and technology demands. Credit quality continued to be solid, and while net charge-offs and the provision increased, they remain below normal historical levels. Through buybacks and dividends we returned $389 million or 73 percent of 2015 net income to shareholders. Both our book value and tangible book value per share increased 4 percent over the past year, as we continue to focus on creating long-term shareholder value.
"With respect to the fourth quarter, revenue increased more than 2 percent. This was a result of growth in net interest income, which benefited from higher nonaccrual interest and the rise in rates late in the quarter, as well as an increase in fee generation, particularly commercial lending and card fees. Technology and regulatory costs drove noninterest expenses higher, as anticipated. Negative credit migration in our energy exposure continued as expected, while overall our customers have been acting prudently as evidenced by declining loan balances. The remainder of the loan book continues to perform well. We increased our share buyback to $65 million from the $59 million that was repurchased in each of the past six quarters.
"As we look forward to the year ahead, we remain keenly focused on growing loans and deposits along with managing expenses as we make necessary investments. With the Federal Reserve increasing its benchmark rate 25 basis points in December, our revenue picture looks better, as our balance sheet remains well positioned to benefit from rising rates. With oil prices at a cyclical low, we have been closely monitoring our energy customers. In each quarter of 2015, we increased our reserves for energy and related loans(a). Well into the cycle, we continue to feel comfortable with our energy portfolio. In summary, we are committed to providing high quality financial services and building lasting customer relationships, which combined with our diverse geographic footprint, will continue to assist us in building long-term shareholder value."
(a) Loans related to energy at December 31, 2015 included approximately $3.1 billion of outstanding loans in our Energy business line as well as approximately $625 million of loans in other lines of business to companies that have a sizable portion of their revenue related to energy or could be otherwise disproportionately negatively impacted by prolonged low oil and gas prices.
Full-Year 2015 and Fourth Quarter Overview
Full-Year 2015 Compared to Full-Year 2014
Fourth Quarter 2015 Compared to Third Quarter 2015
Net Interest Income | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income |
$ |
433 |
$ |
422 |
$ |
415 |
|||||
Net interest margin |
2.58 |
% |
2.54 |
% |
2.57 |
% | |||||
Selected average balances: |
|||||||||||
Total earning assets |
$ |
66,818 |
$ |
66,191 |
$ |
64,453 |
|||||
Total loans |
48,548 |
48,972 |
47,361 |
||||||||
Total investment securities |
10,864 |
10,232 |
9,365 |
||||||||
Federal Reserve Bank deposits |
7,073 |
6,710 |
7,463 |
||||||||
Total deposits |
59,736 |
59,140 |
57,760 |
||||||||
Total noninterest-bearing deposits |
29,627 |
28,623 |
27,504 |
Noninterest Income
Noninterest income increased $6 million to $270 million in the fourth quarter 2015, compared to $264 million for the third quarter 2015. The increase primarily reflected increases of $8 million in commercial lending fees (primarily syndication agent fees) and $6 million in deferred compensation asset returns, partially offset by decreases of $4 million in warrant-related income and $3 million in hedge ineffectiveness income. The increase in deferred compensation asset returns was offset by an increase in deferred compensation plan expense in noninterest expenses.
Noninterest Expenses
Noninterest expenses increased $28 million to $489 million in the fourth quarter 2015, compared to $461 million for the third quarter 2015, primarily reflecting a $22 million increase in salaries and benefits expense, a $3 million increase in litigation-related expense, reflecting the release of reserves in the third quarter 2015, and smaller increases in several other categories, partially offset by a $3 million decrease in outside processing fees. The increase in salaries and benefits expense primarily reflected an increase in technology-related contract labor expense and higher staff insurance expense. Additionally, benefits in the third quarter 2015 from low deferred compensation expense and lower share-based compensation expense as a result of forfeitures were not repeated in the fourth quarter.
Credit Quality
"Net charge-offs were 21 basis points of average loans in the fourth quarter, remaining below historical normal levels," said Babb. "Given persistently low oil and gas prices, we continue to see negative migration in the energy book, which has resulted in an increase in criticized loans, nonaccrual loans and charge-offs. We have appropriately increased our reserves for energy and related loans in each quarter of 2015, and as of quarter end, our reserve allocation for energy and related loans was more than 4 percent of our total of these loans. Loans in our Energy line of business have declined by approximately $700 million from the February peak and, as of year-end, totaled about $3.1 billion, or about 6.25 percent of our total loans. Well into the cycle, we continue to feel comfortable with our energy and related exposure, and the remainder of the portfolio continues to perform well."
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | |||||||||
Loan charge-offs |
$ |
51 |
$ |
34 |
$ |
20 |
||||||
Loan recoveries |
25 |
11 |
19 |
|||||||||
Net loan charge-offs |
26 |
23 |
1 |
|||||||||
Net loan charge-offs/Average total loans |
0.21 |
% |
0.19 |
% |
0.01 |
% | ||||||
Provision for credit losses |
$ |
35 |
$ |
26 |
$ |
2 |
||||||
Nonperforming loans (a) |
379 |
369 |
290 |
|||||||||
Nonperforming assets (NPAs) (a) |
391 |
381 |
300 |
|||||||||
NPAs/Total loans and foreclosed property |
0.80 |
% |
0.78 |
% |
0.62 |
% | ||||||
Loans past due 90 days or more and still accruing |
$ |
17 |
$ |
5 |
$ |
5 |
||||||
Allowance for loan losses |
634 |
622 |
594 |
|||||||||
Allowance for credit losses on lending-related commitments (b) |
45 |
48 |
41 |
|||||||||
Total allowance for credit losses |
679 |
670 |
635 |
|||||||||
Allowance for loan losses/Period-end total loans |
1.29 |
% |
1.27 |
% |
1.22 |
% | ||||||
Allowance for loan losses/Nonperforming loans |
167 |
169 |
205 |
(a) |
Excludes loans acquired with credit impairment. |
|||||||||||
(b) |
Included in "Accrued expenses and other liabilities" on the consolidated balance sheets. |
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $71.9 billion and $7.6 billion, respectively, at December 31, 2015, compared to $71.0 billion and $7.6 billion, respectively, at September 30, 2015.
There were approximately 176 million common shares outstanding at December 31, 2015. Share repurchases of $65 million (1.5 million shares) under the equity repurchase program, combined with dividends of 21 cents per share, returned 79 percent of fourth quarter 2015 net income to shareholders. Diluted average shares decreased 2 million to 179 million for the fourth quarter 2015.
The estimated common equity Tier 1 capital ratio, reflective of transition provisions and excluding accumulated other comprehensive income ("AOCI"), was 10.53 percent at December 31, 2015. Certain deductions and adjustments to regulatory capital began phasing in on January 1, 2015 and will be fully implemented on January 1, 2018. The estimated ratio under fully phased-in Basel III capital rules is largely the same as the transitional ratio. Comerica's tangible common equity ratio was 9.72 percent at December 31, 2015, a decrease of 19 basis points from September 30, 2015.
Full-Year 2016 Outlook
For full-year 2016 compared to full-year 2015, management expects the following, assuming a continuation of the current economic and low-rate environment:
Business Segments
Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at December 31, 2015 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2015 results compared to third quarter 2015.
The following table presents net income (loss) by business segment.
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||||||||
Business Bank |
$ |
199 |
85 |
% |
$ |
194 |
85 |
% |
$ |
216 |
87 |
% | |||||
Retail Bank |
14 |
6 |
13 |
6 |
11 |
4 |
|||||||||||
Wealth Management |
21 |
9 |
21 |
9 |
22 |
9 |
|||||||||||
234 |
100 |
% |
228 |
100 |
% |
249 |
100 |
% | |||||||||
Finance |
(102) |
(93) |
(100) |
||||||||||||||
Other (a) |
(2) |
1 |
— |
||||||||||||||
Total |
$ |
130 |
$ |
136 |
$ |
149 |
(a) |
Includes items not directly associated with the three major business segments or the Finance Division. |
Business Bank | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income (FTE) |
$ |
387 |
$ |
380 |
$ |
387 |
|||||
Provision for credit losses |
41 |
30 |
8 |
||||||||
Noninterest income |
147 |
145 |
104 |
||||||||
Noninterest expenses |
210 |
202 |
148 |
||||||||
Net income |
199 |
194 |
216 |
||||||||
Net loan charge-offs (recoveries) |
35 |
23 |
(1) |
||||||||
Selected average balances: |
|||||||||||
Assets |
38,765 |
39,210 |
37,896 |
||||||||
Loans |
37,682 |
38,113 |
36,890 |
||||||||
Deposits |
31,738 |
31,397 |
30,897 |
||||||||
Retail Bank | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income (FTE) |
$ |
160 |
$ |
158 |
$ |
152 |
|||||
Provision for credit losses |
(2) |
2 |
(2) |
||||||||
Noninterest income |
49 |
49 |
45 |
||||||||
Noninterest expenses |
192 |
185 |
182 |
||||||||
Net income |
14 |
13 |
11 |
||||||||
Net loan charge-offs |
— |
1 |
4 |
||||||||
Selected average balances: |
|||||||||||
Assets |
6,549 |
6,518 |
6,298 |
||||||||
Loans |
5,868 |
5,835 |
5,626 |
||||||||
Deposits |
23,262 |
23,079 |
22,301 |
||||||||
Wealth Management | ||||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | |||||||||
Net interest income (FTE) |
$ |
47 |
$ |
45 |
$ |
47 |
||||||
Provision for credit losses |
(7) |
(3) |
(9) |
|||||||||
Noninterest income |
57 |
59 |
60 |
|||||||||
Noninterest expenses |
81 |
74 |
80 |
|||||||||
Net income |
21 |
21 |
22 |
|||||||||
Net loan charge-offs (recoveries) |
(9) |
(1) |
(2) |
|||||||||
Selected average balances: |
||||||||||||
Assets |
5,199 |
5,228 |
5,034 |
|||||||||
Loans |
4,998 |
5,024 |
4,845 |
|||||||||
Deposits |
4,355 |
4,188 |
4,094 |
|||||||||
Geographic Market Segments
Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. The tables below present the geographic market results based on the methodologies in effect at December 31, 2015 and are presented on a fully taxable equivalent (FTE) basis.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||||||||
Michigan |
$ |
83 |
35 |
% |
$ |
71 |
31 |
% |
$ |
79 |
32 |
% | |||||
California |
90 |
38 |
62 |
27 |
84 |
34 |
|||||||||||
Texas |
(4) |
(1) |
36 |
16 |
40 |
16 |
|||||||||||
Other Markets |
65 |
28 |
59 |
26 |
46 |
18 |
|||||||||||
234 |
100 |
% |
228 |
100 |
% |
249 |
100 |
% | |||||||||
Finance & Other (a) |
(104) |
(92) |
(100) |
||||||||||||||
Total |
$ |
130 |
$ |
136 |
$ |
149 |
(a) |
Includes items not directly associated with the geographic markets. |
Michigan Market | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income (FTE) |
$ |
183 |
$ |
180 |
$ |
173 |
|||||
Provision for credit losses |
(12) |
6 |
(19) |
||||||||
Noninterest income |
82 |
85 |
89 |
||||||||
Noninterest expenses |
162 |
152 |
157 |
||||||||
Net income |
83 |
71 |
79 |
||||||||
Net loan charge-offs (recoveries) |
(2) |
9 |
(5) |
||||||||
Selected average balances: |
|||||||||||
Assets |
13,601 |
13,856 |
13,605 |
||||||||
Loans |
12,986 |
13,223 |
13,142 |
||||||||
Deposits |
22,123 |
21,946 |
21,530 |
California Market | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income (FTE) |
$ |
193 |
$ |
187 |
$ |
192 |
|||||
Provision for credit losses |
(7) |
24 |
(10) |
||||||||
Noninterest income |
41 |
38 |
37 |
||||||||
Noninterest expenses |
108 |
102 |
100 |
||||||||
Net income |
90 |
62 |
84 |
||||||||
Net loan charge-offs |
1 |
10 |
1 |
||||||||
Selected average balances: |
|||||||||||
Assets |
17,297 |
17,060 |
16,035 |
||||||||
Loans |
17,033 |
16,789 |
15,777 |
||||||||
Deposits |
18,545 |
18,372 |
18,028 |
Texas Market | |||||||||||
(dollar amounts in millions) |
4th Qtr '15 |
3rd Qtr '15 |
4th Qtr '14 | ||||||||
Net interest income (FTE) |
$ |
131 |
$ |
129 |
$ |
139 |
|||||
Provision for credit losses |
57 |
10 |
18 |
||||||||
Noninterest income |
32 |
34 |
38 |
||||||||
Noninterest expenses |
104 |
97 |
95 |
||||||||
Net (loss) income |
(4) |
36 |
40 |
||||||||
Net loan charge-offs |
33 |
4 |
2 |
||||||||
Selected average balances: |
|||||||||||
Assets |
11,474 |
11,578 |
12,003 |
||||||||
Loans |
10,893 |
10,997 |
11,327 |
||||||||
Deposits |
10,807 |
10,753 |
10,825 |
Conference Call and Webcast
Comerica will host a conference call to review fourth quarter 2015 financial results at 7 a.m. CT Tuesday January 19, 2016. Interested parties may access the conference call by calling (877) 523-5249 or (210) 591-1147 (event ID No. 93937227). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can be accessed via Comerica's "Investor Relations" page at www.comerica.com.
Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Forward-looking Statements
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "contemplates," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "on course," "trend," "objective," "looks forward," "projects," "models" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including changes in interest rates; changes in regulation or oversight; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers, including the energy industry; operational difficulties, failure of technology infrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; factors impacting noninterest expenses which are beyond Comerica's control; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; changes in Comerica's credit rating; unfavorable developments concerning credit quality; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2014. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) |
|||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||
Three Months Ended |
Years Ended | ||||||||||||||||
December 31, |
September 30, |
December 31, |
December 31, | ||||||||||||||
(in millions, except per share data) |
2015 |
2015 |
2014 |
2015 |
2014 | ||||||||||||
PER COMMON SHARE AND COMMON STOCK DATA |
|||||||||||||||||
Diluted net income |
$ |
0.71 |
$ |
0.74 |
$ |
0.80 |
$ |
2.92 |
$ |
3.16 |
|||||||
Cash dividends declared |
0.21 |
0.21 |
0.20 |
0.83 |
0.79 |
||||||||||||
Average diluted shares (in thousands) |
179,197 |
180,714 |
183,728 |
181,104 |
185,474 |
||||||||||||
KEY RATIOS |
|||||||||||||||||
Return on average common shareholders' equity |
6.81 |
% |
7.19 |
% |
7.96 |
% |
7.10 |
% |
8.05 |
% | |||||||
Return on average assets |
0.72 |
0.76 |
0.86 |
0.76 |
0.89 |
||||||||||||
Common equity tier 1 risk-based capital ratio (a) (b) |
10.53 |
10.51 |
n/a |
||||||||||||||
Tier 1 common risk-based capital ratio (c) |
n/a |
n/a |
10.50 |
||||||||||||||
Tier 1 risk-based capital ratio (a) (b) |
10.53 |
10.51 |
10.50 |
||||||||||||||
Total risk-based capital ratio (a) (b) |
12.68 |
12.82 |
12.51 |
||||||||||||||
Leverage ratio (a) (b) |
10.24 |
10.28 |
10.35 |
||||||||||||||
Tangible common equity ratio (c) |
9.72 |
9.91 |
9.85 |
||||||||||||||
AVERAGE BALANCES |
|||||||||||||||||
Commercial loans |
31,219 |
31,900 |
30,391 |
31,501 |
29,715 |
||||||||||||
Real estate construction loans |
1,961 |
1,833 |
1,920 |
1,884 |
1,909 |
||||||||||||
Commercial mortgage loans |
8,842 |
8,691 |
8,609 |
8,697 |
8,706 |
||||||||||||
Lease financing |
750 |
788 |
818 |
783 |
834 |
||||||||||||
International loans |
1,402 |
1,401 |
1,455 |
1,441 |
1,376 |
||||||||||||
Residential mortgage loans |
1,896 |
1,882 |
1,821 |
1,878 |
1,778 |
||||||||||||
Consumer loans |
2,478 |
2,477 |
2,347 |
2,444 |
2,270 |
||||||||||||
Total loans |
48,548 |
48,972 |
47,361 |
48,628 |
46,588 |
||||||||||||
Earning assets |
66,818 |
66,191 |
64,453 |
65,129 |
61,560 |
||||||||||||
Total assets |
71,907 |
71,333 |
69,307 |
70,247 |
66,336 |
||||||||||||
Noninterest-bearing deposits |
29,627 |
28,623 |
27,504 |
28,087 |
25,019 |
||||||||||||
Interest-bearing deposits |
30,109 |
30,517 |
30,256 |
30,239 |
29,765 |
||||||||||||
Total deposits |
59,736 |
59,140 |
57,760 |
58,326 |
54,784 |
||||||||||||
Common shareholders' equity |
7,613 |
7,559 |
7,518 |
7,534 |
7,373 |
||||||||||||
NET INTEREST INCOME (fully taxable equivalent basis) |
|||||||||||||||||
Net interest income |
$ |
434 |
$ |
423 |
$ |
416 |
$ |
1,693 |
$ |
1,659 |
|||||||
Net interest margin |
2.58 |
% |
2.54 |
% |
2.57 |
% |
2.60 |
% |
2.70 |
% | |||||||
CREDIT QUALITY |
|||||||||||||||||
Total nonperforming assets |
$ |
391 |
$ |
381 |
$ |
300 |
|||||||||||
Loans past due 90 days or more and still accruing |
17 |
5 |
5 |
||||||||||||||
Net loan charge-offs |
26 |
23 |
1 |
$ |
75 |
$ |
25 |
||||||||||
Allowance for loan losses |
634 |
622 |
594 |
||||||||||||||
Allowance for credit losses on lending-related commitments |
45 |
48 |
41 |
||||||||||||||
Total allowance for credit losses |
679 |
670 |
635 |
||||||||||||||
Allowance for loan losses as a percentage of total loans |
1.29 |
% |
1.27 |
% |
1.22 |
% |
|||||||||||
Net loan charge-offs as a percentage of average total loans |
0.21 |
0.19 |
0.01 |
0.15 |
% |
0.05 |
% | ||||||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.80 |
0.78 |
0.62 |
||||||||||||||
Allowance for loan losses as a percentage of total nonperforming loans |
167 |
169 |
205 |
(a) |
Basel III rules became effective on January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules. |
(b) |
December 31, 2015 ratios are estimated. |
(c) |
See Reconciliation of Non-GAAP Financial Measures. |
n/a - not applicable. |
CONSOLIDATED BALANCE SHEETS | |||||||||
Comerica Incorporated and Subsidiaries | |||||||||
December 31, |
September 30, |
December 31, | |||||||
(in millions, except share data) |
2015 |
2015 |
2014 | ||||||
(unaudited) |
(unaudited) |
||||||||
ASSETS |
|||||||||
Cash and due from banks |
$ |
1,157 |
$ |
1,101 |
$ |
1,026 |
|||
Interest-bearing deposits with banks |
4,990 |
6,099 |
5,045 |
||||||
Other short-term investments |
113 |
107 |
99 |
||||||
Investment securities available-for-sale |
10,519 |
8,749 |
8,116 |
||||||
Investment securities held-to-maturity |
1,981 |
1,863 |
1,935 |
||||||
Commercial loans |
31,684 |
31,777 |
31,520 |
||||||
Real estate construction loans |
2,001 |
1,874 |
1,955 |
||||||
Commercial mortgage loans |
8,977 |
8,787 |
8,604 |
||||||
Lease financing |
724 |
751 |
805 |
||||||
International loans |
1,368 |
1,382 |
1,496 |
||||||
Residential mortgage loans |
1,870 |
1,880 |
1,831 |
||||||
Consumer loans |
2,485 |
2,491 |
2,382 |
||||||
Total loans |
49,109 |
48,942 |
48,593 |
||||||
Less allowance for loan losses |
(634) |
(622) |
(594) |
||||||
Net loans |
48,475 |
48,320 |
47,999 |
||||||
Premises and equipment |
550 |
541 |
532 |
||||||
Accrued income and other assets |
4,110 |
4,232 |
4,434 |
||||||
Total assets |
$ |
71,895 |
$ |
71,012 |
$ |
69,186 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Noninterest-bearing deposits |
$ |
30,839 |
$ |
28,697 |
$ |
27,224 |
|||
Money market and interest-bearing checking deposits |
23,532 |
23,948 |
23,954 |
||||||
Savings deposits |
1,898 |
1,853 |
1,752 |
||||||
Customer certificates of deposit |
3,552 |
4,126 |
4,421 |
||||||
Foreign office time deposits |
32 |
144 |
135 |
||||||
Total interest-bearing deposits |
29,014 |
30,071 |
30,262 |
||||||
Total deposits |
59,853 |
58,768 |
57,486 |
||||||
Short-term borrowings |
23 |
109 |
116 |
||||||
Accrued expenses and other liabilities |
1,387 |
1,413 |
1,507 |
||||||
Medium- and long-term debt |
3,058 |
3,100 |
2,675 |
||||||
Total liabilities |
64,321 |
63,390 |
61,784 |
||||||
Common stock - $5 par value: |
|||||||||
Authorized - 325,000,000 shares |
|||||||||
Issued - 228,164,824 shares |
1,141 |
1,141 |
1,141 |
||||||
Capital surplus |
2,173 |
2,165 |
2,188 |
||||||
Accumulated other comprehensive loss |
(429) |
(345) |
(412) |
||||||
Retained earnings |
7,098 |
7,007 |
6,744 |
||||||
Less cost of common stock in treasury - 52,457,113 shares at 12/31/15; 51,010,418 shares at 9/30/15 and 49,146,225 shares at 12/31/14 |
(2,409) |
(2,346) |
(2,259) |
||||||
Total shareholders' equity |
7,574 |
7,622 |
7,402 |
||||||
Total liabilities and shareholders' equity |
$ |
71,895 |
$ |
71,012 |
$ |
69,186 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||
Three Months Ended |
Years Ended | ||||||||||||
December 31, |
December 31, | ||||||||||||
(in millions, except per share data) |
2015 |
2014 |
2015 |
2014 | |||||||||
INTEREST INCOME |
|||||||||||||
Interest and fees on loans |
$ |
395 |
$ |
383 |
$ |
1,551 |
$ |
1,525 |
|||||
Interest on investment securities |
56 |
51 |
216 |
211 |
|||||||||
Interest on short-term investments |
6 |
4 |
17 |
14 |
|||||||||
Total interest income |
457 |
438 |
1,784 |
1,750 |
|||||||||
INTEREST EXPENSE |
|||||||||||||
Interest on deposits |
10 |
12 |
43 |
45 |
|||||||||
Interest on medium- and long-term debt |
14 |
11 |
52 |
50 |
|||||||||
Total interest expense |
24 |
23 |
95 |
95 |
|||||||||
Net interest income |
433 |
415 |
1,689 |
1,655 |
|||||||||
Provision for credit losses |
35 |
2 |
122 |
27 |
|||||||||
Net interest income after provision for credit losses |
398 |
413 |
1,567 |
1,628 |
|||||||||
NONINTEREST INCOME |
|||||||||||||
Card fees |
77 |
24 |
290 |
92 |
|||||||||
Service charges on deposit accounts |
55 |
53 |
223 |
215 |
|||||||||
Fiduciary income |
45 |
47 |
187 |
180 |
|||||||||
Commercial lending fees |
30 |
29 |
99 |
98 |
|||||||||
Letter of credit fees |
14 |
14 |
53 |
57 |
|||||||||
Bank-owned life insurance |
11 |
8 |
40 |
39 |
|||||||||
Foreign exchange income |
11 |
10 |
40 |
40 |
|||||||||
Brokerage fees |
4 |
4 |
17 |
17 |
|||||||||
Net securities losses |
— |
— |
(2) |
— |
|||||||||
Other noninterest income |
23 |
36 |
103 |
130 |
|||||||||
Total noninterest income |
270 |
225 |
1,050 |
868 |
|||||||||
NONINTEREST EXPENSES |
|||||||||||||
Salaries and benefits expense |
265 |
245 |
1,012 |
980 |
|||||||||
Outside processing fee expense |
83 |
33 |
332 |
122 |
|||||||||
Net occupancy expense |
41 |
46 |
159 |
171 |
|||||||||
Equipment expense |
14 |
14 |
53 |
57 |
|||||||||
Software expense |
26 |
23 |
99 |
95 |
|||||||||
FDIC insurance expense |
10 |
8 |
37 |
33 |
|||||||||
Advertising expense |
7 |
7 |
24 |
23 |
|||||||||
Litigation-related expense |
— |
— |
(32) |
4 |
|||||||||
Gain on debt redemption |
— |
— |
— |
(32) |
|||||||||
Other noninterest expenses |
43 |
43 |
161 |
173 |
|||||||||
Total noninterest expenses |
489 |
419 |
1,845 |
1,626 |
|||||||||
Income before income taxes |
179 |
219 |
772 |
870 |
|||||||||
Provision for income taxes |
49 |
70 |
237 |
277 |
|||||||||
NET INCOME |
130 |
149 |
535 |
593 |
|||||||||
Less income allocated to participating securities |
1 |
1 |
6 |
7 |
|||||||||
Net income attributable to common shares |
$ |
129 |
$ |
148 |
$ |
529 |
$ |
586 |
|||||
Earnings per common share: |
|||||||||||||
Basic |
$ |
0.73 |
$ |
0.83 |
$ |
3.01 |
$ |
3.28 |
|||||
Diluted |
0.71 |
0.80 |
2.92 |
3.16 |
|||||||||
Comprehensive income |
45 |
54 |
518 |
572 |
|||||||||
Cash dividends declared on common stock |
37 |
36 |
147 |
143 |
|||||||||
Cash dividends declared per common share |
0.21 |
0.20 |
0.83 |
0.79 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||||||||||||
Fourth |
Third |
Second |
First |
Fourth |
Fourth Quarter 2015 Compared To: | ||||||||||||||||||||||
Quarter |
Quarter |
Quarter |
Quarter |
Quarter |
Third Quarter 2015 |
Fourth Quarter 2014 | |||||||||||||||||||||
(in millions, except per share data) |
2015 |
2015 |
2015 |
2015 |
2014 |
Amount |
Percent |
Amount |
Percent | ||||||||||||||||||
INTEREST INCOME |
|||||||||||||||||||||||||||
Interest and fees on loans |
$ |
395 |
$ |
390 |
$ |
388 |
$ |
378 |
$ |
383 |
$ |
5 |
1 |
% |
$ |
12 |
3 |
% | |||||||||
Interest on investment securities |
56 |
54 |
53 |
53 |
51 |
2 |
6 |
5 |
12 |
||||||||||||||||||
Interest on short-term investments |
6 |
4 |
3 |
4 |
4 |
2 |
19 |
2 |
8 |
||||||||||||||||||
Total interest income |
457 |
448 |
444 |
435 |
438 |
9 |
2 |
19 |
4 |
||||||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||||||||||
Interest on deposits |
10 |
11 |
11 |
11 |
12 |
(1) |
(3) |
(2) |
(7) |
||||||||||||||||||
Interest on medium- and long-term debt |
14 |
15 |
12 |
11 |
11 |
(1) |
(6) |
3 |
21 |
||||||||||||||||||
Total interest expense |
24 |
26 |
23 |
22 |
23 |
(2) |
(4) |
1 |
7 |
||||||||||||||||||
Net interest income |
433 |
422 |
421 |
413 |
415 |
$ |
11 |
3 |
$ |
18 |
4 |
||||||||||||||||
Provision for credit losses |
35 |
26 |
47 |
14 |
2 |
9 |
32 |
33 |
N/M |
||||||||||||||||||
Net interest income after provision for credit losses |
398 |
396 |
374 |
399 |
413 |
2 |
1 |
(15) |
(4) |
||||||||||||||||||
NONINTEREST INCOME |
|||||||||||||||||||||||||||
Card fees |
77 |
74 |
72 |
67 |
24 |
3 |
3 |
53 |
N/M |
||||||||||||||||||
Service charges on deposit accounts |
55 |
57 |
56 |
55 |
53 |
(2) |
(3) |
2 |
4 |
||||||||||||||||||
Fiduciary income |
45 |
47 |
48 |
47 |
47 |
(2) |
(4) |
(2) |
(4) |
||||||||||||||||||
Commercial lending fees |
30 |
22 |
22 |
25 |
29 |
8 |
35 |
1 |
5 |
||||||||||||||||||
Letter of credit fees |
14 |
13 |
13 |
13 |
14 |
1 |
2 |
— |
— |
||||||||||||||||||
Bank-owned life insurance |
11 |
10 |
10 |
9 |
8 |
1 |
1 |
3 |
18 |
||||||||||||||||||
Foreign exchange income |
11 |
10 |
9 |
10 |
10 |
1 |
5 |
1 |
11 |
||||||||||||||||||
Brokerage fees |
4 |
5 |
4 |
4 |
4 |
(1) |
(12) |
— |
— |
||||||||||||||||||
Net securities losses |
— |
— |
— |
(2) |
— |
— |
N/M |
— |
— |
||||||||||||||||||
Other noninterest income |
23 |
26 |
27 |
27 |
36 |
(3) |
(7) |
(13) |
(33) |
||||||||||||||||||
Total noninterest income |
270 |
264 |
261 |
255 |
225 |
6 |
2 |
45 |
20 |
||||||||||||||||||
NONINTEREST EXPENSES |
|||||||||||||||||||||||||||
Salaries and benefits expense |
265 |
243 |
251 |
253 |
245 |
22 |
9 |
20 |
8 |
||||||||||||||||||
Outside processing fee expense |
83 |
86 |
86 |
77 |
33 |
(3) |
(5) |
50 |
N/M |
||||||||||||||||||
Net occupancy expense |
41 |
41 |
39 |
38 |
46 |
— |
— |
(5) |
(10) |
||||||||||||||||||
Equipment expense |
14 |
13 |
13 |
13 |
14 |
1 |
1 |
— |
— |
||||||||||||||||||
Software expense |
26 |
26 |
24 |
23 |
23 |
— |
— |
3 |
9 |
||||||||||||||||||
FDIC insurance expense |
10 |
9 |
9 |
9 |
8 |
1 |
24 |
2 |
31 |
||||||||||||||||||
Advertising expense |
7 |
6 |
5 |
6 |
7 |
1 |
13 |
— |
— |
||||||||||||||||||
Litigation-related expense |
— |
(3) |
(30) |
1 |
— |
3 |
N/M |
— |
— |
||||||||||||||||||
Other noninterest expenses |
43 |
40 |
39 |
39 |
43 |
3 |
8 |
— |
— |
||||||||||||||||||
Total noninterest expenses |
489 |
461 |
436 |
459 |
419 |
28 |
6 |
70 |
17 |
||||||||||||||||||
Income before income taxes |
179 |
199 |
199 |
195 |
219 |
(20) |
(10) |
(40) |
(19) |
||||||||||||||||||
Provision for income taxes |
49 |
63 |
64 |
61 |
70 |
(14) |
(22) |
(21) |
(30) |
||||||||||||||||||
NET INCOME |
130 |
136 |
135 |
134 |
149 |
(6) |
(5) |
(19) |
(13) |
||||||||||||||||||
Less income allocated to participating securities |
1 |
2 |
1 |
2 |
1 |
(1) |
(3) |
— |
— |
||||||||||||||||||
Net income attributable to common shares |
$ |
129 |
$ |
134 |
$ |
134 |
$ |
132 |
$ |
148 |
$ |
(5) |
(5) |
% |
$ |
(19) |
(13) |
% | |||||||||
Earnings per common share: |
|||||||||||||||||||||||||||
Basic |
$ |
0.73 |
$ |
0.76 |
$ |
0.76 |
$ |
0.75 |
$ |
0.83 |
$ |
(0.03) |
(4) |
% |
$ |
(0.10) |
(12) |
% | |||||||||
Diluted |
0.71 |
0.74 |
0.73 |
0.73 |
0.80 |
(0.03) |
(4) |
(0.09) |
(11) |
||||||||||||||||||
Comprehensive income |
45 |
187 |
109 |
176 |
54 |
(142) |
(76) |
(9) |
(18) |
||||||||||||||||||
Cash dividends declared on common stock |
37 |
37 |
37 |
36 |
36 |
— |
— |
1 |
3 |
||||||||||||||||||
Cash dividends declared per common share |
0.21 |
0.21 |
0.21 |
0.20 |
0.20 |
— |
— |
0.01 |
5 |
N/M - not meaningful |
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries |
||||||||||||||||
2015 |
2014 | |||||||||||||||
(in millions) |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr | |||||||||||
Balance at beginning of period |
$ |
622 |
$ |
618 |
$ |
601 |
$ |
594 |
$ |
592 |
||||||
Loan charge-offs: |
||||||||||||||||
Commercial |
48 |
30 |
17 |
19 |
8 |
|||||||||||
Commercial mortgage |
1 |
— |
2 |
— |
2 |
|||||||||||
Lease financing |
— |
— |
1 |
— |
— |
|||||||||||
International |
— |
1 |
11 |
2 |
6 |
|||||||||||
Residential mortgage |
— |
— |
1 |
— |
1 |
|||||||||||
Consumer |
2 |
3 |
3 |
2 |
3 |
|||||||||||
Total loan charge-offs |
51 |
34 |
35 |
23 |
20 |
|||||||||||
Recoveries on loans previously charged-off: |
||||||||||||||||
Commercial |
6 |
8 |
10 |
9 |
6 |
|||||||||||
Real estate construction |
— |
— |
1 |
— |
2 |
|||||||||||
Commercial mortgage |
11 |
2 |
5 |
3 |
10 |
|||||||||||
Residential mortgage |
1 |
— |
— |
1 |
— |
|||||||||||
Consumer |
7 |
1 |
1 |
2 |
1 |
|||||||||||
Total recoveries |
25 |
11 |
17 |
15 |
19 |
|||||||||||
Net loan charge-offs |
26 |
23 |
18 |
8 |
1 |
|||||||||||
Provision for loan losses |
38 |
28 |
35 |
16 |
4 |
|||||||||||
Foreign currency translation adjustment |
— |
(1) |
— |
(1) |
(1) |
|||||||||||
Balance at end of period |
$ |
634 |
$ |
622 |
$ |
618 |
$ |
601 |
$ |
594 |
||||||
Allowance for loan losses as a percentage of total loans |
1.29 |
% |
1.27 |
% |
1.24 |
% |
1.22 |
% |
1.22 |
% | ||||||
Net loan charge-offs as a percentage of average total loans |
0.21 |
0.19 |
0.15 |
0.07 |
0.01 |
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||
2015 |
2014 | ||||||||||||||||
(in millions) |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr | ||||||||||||
Balance at beginning of period |
$ |
48 |
$ |
50 |
$ |
39 |
$ |
41 |
$ |
43 |
|||||||
Less: Charge-offs on lending-related commitments (a) |
— |
— |
1 |
— |
— |
||||||||||||
Add: Provision for credit losses on lending-related commitments |
(3) |
(2) |
12 |
(2) |
(2) |
||||||||||||
Balance at end of period |
$ |
45 |
$ |
48 |
$ |
50 |
$ |
39 |
$ |
41 |
|||||||
Unfunded lending-related commitments sold |
$ |
— |
$ |
— |
$ |
12 |
$ |
1 |
$ |
— |
(a) |
Charge-offs result from the sale of unfunded lending-related commitments. |
NONPERFORMING ASSETS (unaudited) |
||||||||||||||||
Comerica Incorporated and Subsidiaries |
||||||||||||||||
2015 |
2014 | |||||||||||||||
(in millions) |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr | |||||||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS |
||||||||||||||||
Nonaccrual loans: |
||||||||||||||||
Business loans: |
||||||||||||||||
Commercial |
$ |
238 |
$ |
214 |
$ |
186 |
$ |
113 |
$ |
109 |
||||||
Real estate construction |
1 |
1 |
1 |
1 |
2 |
|||||||||||
Commercial mortgage |
60 |
66 |
77 |
82 |
95 |
|||||||||||
Lease financing |
6 |
8 |
11 |
— |
— |
|||||||||||
International |
8 |
8 |
9 |
1 |
— |
|||||||||||
Total nonaccrual business loans |
313 |
297 |
284 |
197 |
206 |
|||||||||||
Retail loans: |
||||||||||||||||
Residential mortgage |
27 |
31 |
35 |
37 |
36 |
|||||||||||
Consumer: |
||||||||||||||||
Home equity |
27 |
28 |
29 |
31 |
30 |
|||||||||||
Other consumer |
— |
1 |
1 |
1 |
1 |
|||||||||||
Total consumer |
27 |
29 |
30 |
32 |
31 |
|||||||||||
Total nonaccrual retail loans |
54 |
60 |
65 |
69 |
67 |
|||||||||||
Total nonaccrual loans |
367 |
357 |
349 |
266 |
273 |
|||||||||||
Reduced-rate loans |
12 |
12 |
12 |
13 |
17 |
|||||||||||
Total nonperforming loans (a) |
379 |
369 |
361 |
279 |
290 |
|||||||||||
Foreclosed property |
12 |
12 |
9 |
9 |
10 |
|||||||||||
Total nonperforming assets (a) |
$ |
391 |
$ |
381 |
$ |
370 |
$ |
288 |
$ |
300 |
||||||
Nonperforming loans as a percentage of total loans |
0.77 |
% |
0.75 |
% |
0.72 |
% |
0.57 |
% |
0.60 |
% | ||||||
Nonperforming assets as a percentage of total loans and foreclosed property |
0.80 |
0.78 |
0.74 |
0.59 |
0.62 |
|||||||||||
Allowance for loan losses as a percentage of total nonperforming loans |
167 |
169 |
171 |
216 |
205 |
|||||||||||
Loans past due 90 days or more and still accruing |
$ |
17 |
$ |
5 |
$ |
18 |
$ |
12 |
$ |
5 |
||||||
ANALYSIS OF NONACCRUAL LOANS |
||||||||||||||||
Nonaccrual loans at beginning of period |
$ |
357 |
$ |
349 |
$ |
266 |
$ |
273 |
$ |
329 |
||||||
Loans transferred to nonaccrual (b) |
105 |
69 |
145 |
39 |
41 |
|||||||||||
Nonaccrual business loan gross charge-offs (c) |
(49) |
(31) |
(31) |
(21) |
(16) |
|||||||||||
Loans transferred to accrual status (b) |
— |
— |
— |
(4) |
(18) |
|||||||||||
Nonaccrual business loans sold (d) |
— |
— |
(1) |
(2) |
(24) |
|||||||||||
Payments/Other (e) |
(46) |
(30) |
(30) |
(19) |
(39) |
|||||||||||
Nonaccrual loans at end of period |
$ |
367 |
$ |
357 |
$ |
349 |
$ |
266 |
$ |
273 |
||||||
(a) Excludes loans acquired with credit impairment. | ||||||||||||||||
(b) Based on an analysis of nonaccrual loans with book balances greater than $2 million. | ||||||||||||||||
(c) Analysis of gross loan charge-offs: |
||||||||||||||||
Nonaccrual business loans |
$ |
49 |
$ |
31 |
$ |
31 |
$ |
21 |
$ |
16 |
||||||
Consumer and residential mortgage loans |
2 |
3 |
4 |
2 |
4 |
|||||||||||
Total gross loan charge-offs |
$ |
51 |
$ |
34 |
$ |
35 |
$ |
23 |
$ |
20 |
||||||
(d) Analysis of loans sold: |
||||||||||||||||
Nonaccrual business loans |
$ |
— |
$ |
— |
$ |
1 |
$ |
2 |
$ |
24 |
||||||
Performing criticized loans |
3 |
— |
— |
7 |
5 |
|||||||||||
Total criticized loans sold |
$ |
3 |
$ |
— |
$ |
1 |
$ |
9 |
$ |
29 |
||||||
(e) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold. |
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||
Years Ended | |||||||||||||||||
December 31, 2015 |
December 31, 2014 | ||||||||||||||||
Average |
Average |
Average |
Average | ||||||||||||||
(dollar amounts in millions) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate | |||||||||||
Commercial loans |
$ |
31,501 |
$ |
966 |
3.07 |
% |
$ |
29,715 |
$ |
927 |
3.12 |
% | |||||
Real estate construction loans |
1,884 |
66 |
3.48 |
1,909 |
65 |
3.41 |
|||||||||||
Commercial mortgage loans |
8,697 |
296 |
3.41 |
8,706 |
327 |
3.75 |
|||||||||||
Lease financing |
783 |
25 |
3.17 |
834 |
19 |
2.33 |
|||||||||||
International loans |
1,441 |
51 |
3.58 |
1,376 |
50 |
3.65 |
|||||||||||
Residential mortgage loans |
1,878 |
71 |
3.77 |
1,778 |
68 |
3.82 |
|||||||||||
Consumer loans |
2,444 |
80 |
3.26 |
2,270 |
73 |
3.20 |
|||||||||||
Total loans (a) |
48,628 |
1,555 |
3.20 |
46,588 |
1,529 |
3.28 |
|||||||||||
Mortgage-backed securities (b) |
9,113 |
202 |
2.24 |
8,970 |
209 |
2.33 |
|||||||||||
Other investment securities |
1,124 |
14 |
1.25 |
380 |
2 |
0.45 |
|||||||||||
Total investment securities (b) |
10,237 |
216 |
2.13 |
9,350 |
211 |
2.26 |
|||||||||||
Interest-bearing deposits with banks |
6,158 |
16 |
0.26 |
5,513 |
14 |
0.26 |
|||||||||||
Other short-term investments |
106 |
1 |
0.81 |
109 |
— |
0.57 |
|||||||||||
Total earning assets |
65,129 |
1,788 |
2.75 |
61,560 |
1,754 |
2.85 |
|||||||||||
Cash and due from banks |
1,059 |
934 |
|||||||||||||||
Allowance for loan losses |
(621) |
(601) |
|||||||||||||||
Accrued income and other assets |
4,680 |
4,443 |
|||||||||||||||
Total assets |
$ |
70,247 |
$ |
66,336 |
|||||||||||||
Money market and interest-bearing checking deposits |
$ |
24,073 |
26 |
0.11 |
$ |
22,891 |
24 |
0.11 |
|||||||||
Savings deposits |
1,841 |
— |
0.02 |
1,744 |
1 |
0.03 |
|||||||||||
Customer certificates of deposit |
4,209 |
16 |
0.37 |
4,869 |
18 |
0.36 |
|||||||||||
Foreign office time deposits |
116 |
1 |
1.02 |
261 |
2 |
0.82 |
|||||||||||
Total interest-bearing deposits |
30,239 |
43 |
0.14 |
29,765 |
45 |
0.15 |
|||||||||||
Short-term borrowings |
93 |
— |
0.05 |
200 |
— |
0.04 |
|||||||||||
Medium- and long-term debt |
2,905 |
52 |
1.80 |
2,963 |
50 |
1.68 |
|||||||||||
Total interest-bearing sources |
33,237 |
95 |
0.29 |
32,928 |
95 |
0.29 |
|||||||||||
Noninterest-bearing deposits |
28,087 |
25,019 |
|||||||||||||||
Accrued expenses and other liabilities |
1,389 |
1,016 |
|||||||||||||||
Total shareholders' equity |
7,534 |
7,373 |
|||||||||||||||
Total liabilities and shareholders' equity |
$ |
70,247 |
$ |
66,336 |
|||||||||||||
Net interest income/rate spread (FTE) |
$ |
1,693 |
2.46 |
$ |
1,659 |
2.56 |
|||||||||||
FTE adjustment |
$ |
4 |
$ |
4 |
|||||||||||||
Impact of net noninterest-bearing sources of funds |
0.14 |
0.14 |
|||||||||||||||
Net interest margin (as a percentage of average earning assets) (FTE) (a) |
2.60 |
% |
2.70 |
% |
(a) |
Accretion of the purchase discount on the acquired loan portfolio of $7 million and $34 million in the years ended December 31, 2015 and 2014, respectively, increased the net interest margin by 1 basis point and 6 basis points in each respective period. |
(b) |
Includes investment securities available-for-sale and investment securities held-to-maturity. |
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) | ||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries |
||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
December 31, 2015 |
September 30, 2015 |
December 31, 2014 | ||||||||||||||||||||||||
Average |
Average |
Average |
Average |
Average |
Average | |||||||||||||||||||||
(dollar amounts in millions) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate | |||||||||||||||||
Commercial loans |
$ |
31,219 |
$ |
245 |
3.11 |
% |
$ |
31,900 |
$ |
244 |
3.04 |
% |
$ |
30,391 |
$ |
238 |
3.11 |
% | ||||||||
Real estate construction loans |
1,961 |
18 |
3.58 |
1,833 |
16 |
3.47 |
1,920 |
16 |
3.40 |
|||||||||||||||||
Commercial mortgage loans |
8,842 |
76 |
3.43 |
8,691 |
74 |
3.39 |
8,609 |
81 |
3.70 |
|||||||||||||||||
Lease financing |
750 |
6 |
3.29 |
788 |
6 |
3.16 |
818 |
(1) |
(0.43) |
|||||||||||||||||
International loans |
1,402 |
12 |
3.40 |
1,401 |
13 |
3.51 |
1,455 |
13 |
3.68 |
|||||||||||||||||
Residential mortgage loans |
1,896 |
18 |
3.75 |
1,882 |
18 |
3.79 |
1,821 |
18 |
3.86 |
|||||||||||||||||
Consumer loans |
2,478 |
21 |
3.38 |
2,477 |
20 |
3.21 |
2,347 |
19 |
3.20 |
|||||||||||||||||
Total loans (a) |
48,548 |
396 |
3.24 |
48,972 |
391 |
3.17 |
47,361 |
384 |
3.22 |
|||||||||||||||||
Mortgage-backed securities (b) |
9,226 |
51 |
2.25 |
9,099 |
50 |
2.21 |
8,954 |
50 |
2.27 |
|||||||||||||||||
Other investment securities |
1,638 |
5 |
1.37 |
1,133 |
4 |
1.26 |
411 |
1 |
0.49 |
|||||||||||||||||
Total investment securities (b) |
10,864 |
56 |
2.11 |
10,232 |
54 |
2.11 |
9,365 |
51 |
2.19 |
|||||||||||||||||
Interest-bearing deposits with banks |
7,300 |
5 |
0.28 |
6,869 |
4 |
0.25 |
7,622 |
4 |
0.26 |
|||||||||||||||||
Other short-term investments |
106 |
1 |
0.91 |
118 |
— |
0.82 |
105 |
— |
0.48 |
|||||||||||||||||
Total earning assets |
66,818 |
458 |
2.73 |
66,191 |
449 |
2.70 |
64,453 |
439 |
2.71 |
|||||||||||||||||
Cash and due from banks |
1,071 |
1,095 |
937 |
|||||||||||||||||||||||
Allowance for loan losses |
(641) |
(628) |
(597) |
|||||||||||||||||||||||
Accrued income and other assets |
4,659 |
4,675 |
4,514 |
|||||||||||||||||||||||
Total assets |
$ |
71,907 |
$ |
71,333 |
$ |
69,307 |
||||||||||||||||||||
Money market and interest-bearing checking deposits |
$ |
24,368 |
6 |
0.11 |
$ |
24,298 |
7 |
0.11 |
$ |
23,841 |
7 |
0.11 |
||||||||||||||
Savings deposits |
1,883 |
— |
0.02 |
1,860 |
— |
0.02 |
1,771 |
— |
0.03 |
|||||||||||||||||
Customer certificates of deposit |
3,763 |
4 |
0.39 |
4,232 |
4 |
0.37 |
4,510 |
4 |
0.37 |
|||||||||||||||||
Foreign office time deposits |
95 |
— |
0.59 |
127 |
— |
0.70 |
134 |
1 |
1.74 |
|||||||||||||||||
Total interest-bearing deposits |
30,109 |
10 |
0.14 |
30,517 |
11 |
0.14 |
30,256 |
12 |
0.15 |
|||||||||||||||||
Short-term borrowings |
92 |
— |
0.06 |
91 |
— |
0.04 |
172 |
— |
0.04 |
|||||||||||||||||
Medium- and long-term debt |
3,089 |
14 |
1.79 |
3,175 |
15 |
1.85 |
2,674 |
11 |
1.72 |
|||||||||||||||||
Total interest-bearing sources |
33,290 |
24 |
0.29 |
33,783 |
26 |
0.30 |
33,102 |
23 |
0.27 |
|||||||||||||||||
Noninterest-bearing deposits |
29,627 |
28,623 |
27,504 |
|||||||||||||||||||||||
Accrued expenses and other liabilities |
1,377 |
1,368 |
1,183 |
|||||||||||||||||||||||
Total shareholders' equity |
7,613 |
7,559 |
7,518 |
|||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
71,907 |
$ |
71,333 |
$ |
69,307 |
||||||||||||||||||||
Net interest income/rate spread (FTE) |
$ |
434 |
2.44 |
$ |
423 |
2.40 |
$ |
416 |
2.44 |
|||||||||||||||||
FTE adjustment |
$ |
1 |
$ |
1 |
$ |
1 |
||||||||||||||||||||
Impact of net noninterest-bearing sources of funds |
0.14 |
0.14 |
0.13 |
|||||||||||||||||||||||
Net interest margin (as a percentage of average earning assets) (FTE) (a) |
2.58 |
% |
2.54 |
% |
2.57 |
% |
(a) |
Accretion of the purchase discount on the acquired loan portfolio of $1 million, $2 million and $9 million in the fourth quarter 2015, the third quarter 2015 and the fourth quarter 2014, respectively, increased the net interest margin by 1 basis point, 1 basis point and 5 basis points in each respective period. |
(b) |
Includes investment securities available-for-sale and investment securities held-to-maturity. |
CONSOLIDATED STATISTICAL DATA (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, | |||||||||||
(in millions, except per share data) |
2015 |
2015 |
2015 |
2015 |
2014 | ||||||||||
Commercial loans: |
|||||||||||||||
Floor plan |
$ |
3,939 |
$ |
3,538 |
$ |
3,840 |
$ |
3,544 |
$ |
3,790 |
|||||
Other |
27,745 |
28,239 |
28,883 |
28,547 |
27,730 |
||||||||||
Total commercial loans |
31,684 |
31,777 |
32,723 |
32,091 |
31,520 |
||||||||||
Real estate construction loans |
2,001 |
1,874 |
1,795 |
1,917 |
1,955 |
||||||||||
Commercial mortgage loans |
8,977 |
8,787 |
8,674 |
8,558 |
8,604 |
||||||||||
Lease financing |
724 |
751 |
786 |
792 |
805 |
||||||||||
International loans |
1,368 |
1,382 |
1,420 |
1,433 |
1,496 |
||||||||||
Residential mortgage loans |
1,870 |
1,880 |
1,865 |
1,859 |
1,831 |
||||||||||
Consumer loans: |
|||||||||||||||
Home equity |
1,720 |
1,714 |
1,682 |
1,678 |
1,658 |
||||||||||
Other consumer |
765 |
777 |
796 |
744 |
724 |
||||||||||
Total consumer loans |
2,485 |
2,491 |
2,478 |
2,422 |
2,382 |
||||||||||
Total loans |
$ |
49,109 |
$ |
48,942 |
$ |
49,741 |
$ |
49,072 |
$ |
48,593 |
|||||
Goodwill |
$ |
635 |
$ |
635 |
$ |
635 |
$ |
635 |
$ |
635 |
|||||
Core deposit intangible |
10 |
10 |
11 |
12 |
13 |
||||||||||
Other intangibles |
4 |
4 |
4 |
3 |
2 |
||||||||||
Common equity tier 1 capital (a) (b) |
7,364 |
7,327 |
7,280 |
7,230 |
n/a |
||||||||||
Tier 1 common capital (c) |
n/a |
n/a |
n/a |
n/a |
7,169 |
||||||||||
Risk-weighted assets (a) (b) |
69,919 |
69,718 |
69,967 |
69,514 |
68,273 |
||||||||||
Common equity tier 1 risk-based capital ratio (a) (b) |
10.53 |
% |
10.51 |
% |
10.40 |
% |
10.40 |
% |
n/a |
||||||
Tier 1 common risk-based capital ratio (c) |
n/a |
n/a |
n/a |
n/a |
10.50 |
% | |||||||||
Tier 1 risk-based capital ratio (a) (b) |
10.53 |
10.51 |
10.40 |
10.40 |
10.50 |
||||||||||
Total risk-based capital ratio (a) (b) |
12.68 |
12.82 |
12.38 |
12.35 |
12.51 |
||||||||||
Leverage ratio (a) (b) |
10.24 |
10.28 |
10.56 |
10.53 |
10.35 |
||||||||||
Tangible common equity ratio (c) |
9.72 |
9.91 |
9.92 |
9.97 |
9.85 |
||||||||||
Common shareholders' equity per share of common stock |
$ |
43.11 |
$ |
43.02 |
$ |
42.18 |
$ |
42.12 |
$ |
41.35 |
|||||
Tangible common equity per share of common stock (c) |
39.41 |
39.36 |
38.53 |
38.47 |
37.72 |
||||||||||
Market value per share for the quarter: |
|||||||||||||||
High |
47.44 |
52.93 |
53.45 |
47.94 |
50.14 |
||||||||||
Low |
39.52 |
40.01 |
44.38 |
40.09 |
42.73 |
||||||||||
Close |
41.83 |
41.10 |
51.32 |
45.13 |
46.84 |
||||||||||
Quarterly ratios: |
|||||||||||||||
Return on average common shareholders' equity |
6.81 |
% |
7.19 |
% |
7.21 |
% |
7.20 |
% |
7.96 |
% | |||||
Return on average assets |
0.72 |
0.76 |
0.79 |
0.78 |
0.86 |
||||||||||
Efficiency ratio (d) |
69.53 |
67.08 |
63.68 |
68.50 |
65.26 |
||||||||||
Number of banking centers |
477 |
477 |
477 |
482 |
481 |
||||||||||
Number of employees - full time equivalent |
8,880 |
8,941 |
8,901 |
8,831 |
8,876 |
(a) |
Basel III rules became effective January 1, 2015, with transitional provisions. All prior period data is based on Basel I rules. |
||||||||||||||
(b) |
December 31, 2015 amounts and ratios are estimated. | ||||||||||||||
(c) |
See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||
(d) |
Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains (losses). | ||||||||||||||
n/a - not applicable. |
PARENT COMPANY ONLY BALANCE SHEETS (unaudited) | |||||||||
Comerica Incorporated |
|||||||||
December 31, |
September 30, |
December 31, | |||||||
(in millions, except share data) |
2015 |
2015 |
2014 | ||||||
ASSETS |
|||||||||
Cash and due from subsidiary bank |
$ |
4 |
$ |
5 |
$ |
— |
|||
Short-term investments with subsidiary bank |
569 |
563 |
1,133 |
||||||
Other short-term investments |
89 |
89 |
94 |
||||||
Investment in subsidiaries, principally banks |
7,538 |
7,596 |
7,411 |
||||||
Premises and equipment |
3 |
2 |
2 |
||||||
Other assets |
137 |
138 |
138 |
||||||
Total assets |
$ |
8,340 |
$ |
8,393 |
$ |
8,778 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Medium- and long-term debt |
$ |
608 |
$ |
618 |
$ |
1,208 |
|||
Other liabilities |
158 |
153 |
168 |
||||||
Total liabilities |
766 |
771 |
1,376 |
||||||
Common stock - $5 par value: |
|||||||||
Authorized - 325,000,000 shares |
|||||||||
Issued - 228,164,824 shares |
1,141 |
1,141 |
1,141 |
||||||
Capital surplus |
2,173 |
2,165 |
2,188 |
||||||
Accumulated other comprehensive loss |
(429) |
(345) |
(412) |
||||||
Retained earnings |
7,098 |
7,007 |
6,744 |
||||||
Less cost of common stock in treasury - 52,457,113 shares at 12/31/15; 51,010,418 shares at 9/30/15 and 49,146,225 shares at 12/31/14 |
(2,409) |
(2,346) |
(2,259) |
||||||
Total shareholders' equity |
7,574 |
7,622 |
7,402 |
||||||
Total liabilities and shareholders' equity |
$ |
8,340 |
$ |
8,393 |
$ |
8,778 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | ||||||||||||||||||||
Comerica Incorporated and Subsidiaries |
||||||||||||||||||||
Accumulated |
||||||||||||||||||||
Common Stock |
Other |
Total | ||||||||||||||||||
Shares |
Capital |
Comprehensive |
Retained |
Treasury |
Shareholders' | |||||||||||||||
(in millions, except per share data) |
Outstanding |
Amount |
Surplus |
Loss |
Earnings |
Stock |
Equity | |||||||||||||
BALANCE AT DECEMBER 31, 2013 |
182.3 |
$ |
1,141 |
$ |
2,179 |
$ |
(391) |
$ |
6,318 |
$ |
(2,097) |
$ |
7,150 |
|||||||
Net income |
— |
— |
— |
— |
593 |
— |
593 |
|||||||||||||
Other comprehensive loss, net of tax |
— |
— |
— |
(21) |
— |
— |
(21) |
|||||||||||||
Cash dividends declared on common stock ($0.79 per share) |
— |
— |
— |
— |
(143) |
— |
(143) |
|||||||||||||
Purchase of common stock |
(5.4) |
— |
— |
— |
— |
(260) |
(260) |
|||||||||||||
Net issuance of common stock under employee stock plans |
2.1 |
— |
(27) |
— |
(24) |
96 |
45 |
|||||||||||||
Share-based compensation |
— |
— |
38 |
— |
— |
— |
38 |
|||||||||||||
Other |
— |
— |
(2) |
— |
— |
2 |
— |
|||||||||||||
BALANCE AT DECEMBER 31, 2014 |
179.0 |
$ |
1,141 |
$ |
2,188 |
$ |
(412) |
$ |
6,744 |
$ |
(2,259) |
$ |
7,402 |
|||||||
Net income |
— |
— |
— |
— |
535 |
— |
535 |
|||||||||||||
Other comprehensive loss, net of tax |
— |
— |
— |
(17) |
— |
— |
(17) |
|||||||||||||
Cash dividends declared on common stock ($0.83 per share) |
— |
— |
— |
— |
(148) |
— |
(148) |
|||||||||||||
Purchase of common stock |
(5.3) |
— |
— |
— |
— |
(240) |
(240) |
|||||||||||||
Purchase and retirement of warrants |
— |
— |
(10) |
— |
— |
— |
(10) |
|||||||||||||
Net issuance of common stock under employee stock plans |
1.0 |
— |
(22) |
— |
(11) |
47 |
14 |
|||||||||||||
Net issuance of common stock for warrants |
1.0 |
— |
(21) |
— |
(22) |
43 |
— |
|||||||||||||
Share-based compensation |
— |
— |
38 |
— |
— |
— |
38 |
|||||||||||||
BALANCE AT DECEMBER 31, 2015 |
175.7 |
$ |
1,141 |
$ |
2,173 |
$ |
(429) |
$ |
7,098 |
$ |
(2,409) |
$ |
7,574 |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||||||||
(dollar amounts in millions) |
Business |
Retail |
Wealth |
||||||||||||||||||||
Three Months Ended December 31, 2015 |
Bank |
Bank |
Management |
Finance |
Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
387 |
$ |
160 |
$ |
47 |
$ |
(162) |
$ |
2 |
$ |
434 |
|||||||||||
Provision for credit losses |
41 |
(2) |
(7) |
— |
3 |
35 |
|||||||||||||||||
Noninterest income |
147 |
49 |
57 |
15 |
2 |
270 |
|||||||||||||||||
Noninterest expenses |
210 |
192 |
81 |
2 |
4 |
489 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
84 |
5 |
9 |
(47) |
(1) |
50 |
|||||||||||||||||
Net income (loss) |
$ |
199 |
$ |
14 |
$ |
21 |
$ |
(102) |
$ |
(2) |
$ |
130 |
|||||||||||
Net loan charge-offs (recoveries) |
$ |
35 |
$ |
— |
$ |
(9) |
$ |
— |
$ |
— |
$ |
26 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
38,765 |
$ |
6,549 |
$ |
5,199 |
$ |
12,678 |
$ |
8,716 |
$ |
71,907 |
|||||||||||
Loans |
37,682 |
5,868 |
4,998 |
— |
— |
48,548 |
|||||||||||||||||
Deposits |
31,738 |
23,262 |
4,355 |
120 |
261 |
59,736 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
2.05 |
% |
0.23 |
% |
1.65 |
% |
N/M |
N/M |
0.72 |
% | |||||||||||||
Efficiency ratio (b) |
39.32 |
92.03 |
77.56 |
N/M |
N/M |
69.53 |
|||||||||||||||||
Business |
Retail |
Wealth |
|||||||||||||||||||||
Three Months Ended September 30, 2015 |
Bank |
Bank |
Management |
Finance |
Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
380 |
$ |
158 |
$ |
45 |
$ |
(162) |
$ |
2 |
$ |
423 |
|||||||||||
Provision for credit losses |
30 |
2 |
(3) |
— |
(3) |
26 |
|||||||||||||||||
Noninterest income |
145 |
49 |
59 |
15 |
(4) |
264 |
|||||||||||||||||
Noninterest expenses |
202 |
185 |
74 |
2 |
(2) |
461 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
99 |
7 |
12 |
(56) |
2 |
64 |
|||||||||||||||||
Net income (loss) |
$ |
194 |
$ |
13 |
$ |
21 |
$ |
(93) |
$ |
1 |
$ |
136 |
|||||||||||
Net loan charge-offs (recoveries) |
$ |
23 |
$ |
1 |
$ |
(1) |
$ |
— |
$ |
— |
$ |
23 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
39,210 |
$ |
6,518 |
$ |
5,228 |
$ |
12,177 |
$ |
8,200 |
$ |
71,333 |
|||||||||||
Loans |
38,113 |
5,835 |
5,024 |
— |
— |
48,972 |
|||||||||||||||||
Deposits |
31,397 |
23,079 |
4,188 |
212 |
264 |
59,140 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
1.98 |
% |
0.23 |
% |
1.62 |
% |
N/M |
N/M |
0.76 |
% | |||||||||||||
Efficiency ratio (b) |
38.41 |
89.33 |
71.11 |
N/M |
N/M |
67.08 |
|||||||||||||||||
Business |
Retail |
Wealth |
|||||||||||||||||||||
Three Months Ended December 31, 2014 |
Bank |
Bank |
Management |
Finance |
Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
387 |
$ |
152 |
$ |
47 |
$ |
(177) |
7 |
$ |
416 |
||||||||||||
Provision for credit losses |
8 |
(2) |
(9) |
— |
5 |
2 |
|||||||||||||||||
Noninterest income |
104 |
45 |
60 |
16 |
— |
225 |
|||||||||||||||||
Noninterest expenses |
148 |
182 |
80 |
3 |
6 |
419 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
119 |
6 |
14 |
(64) |
(4) |
71 |
|||||||||||||||||
Net income (loss) |
$ |
216 |
$ |
11 |
$ |
22 |
$ |
(100) |
$ |
— |
$ |
149 |
|||||||||||
Net loan charge-offs (recoveries) |
$ |
(1) |
$ |
4 |
$ |
(2) |
$ |
— |
$ |
— |
$ |
1 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
37,896 |
$ |
6,298 |
$ |
5,034 |
$ |
12,218 |
$ |
7,861 |
$ |
69,307 |
|||||||||||
Loans |
36,890 |
5,626 |
4,845 |
— |
— |
47,361 |
|||||||||||||||||
Deposits |
30,897 |
22,301 |
4,094 |
195 |
273 |
57,760 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
2.28 |
% |
0.19 |
% |
1.79 |
% |
N/M |
N/M |
0.86 |
% | |||||||||||||
Efficiency ratio (b) |
30.09 |
92.33 |
74.48 |
N/M |
N/M |
65.26 |
(a) |
Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. |
(b) |
Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains. |
FTE - Fully Taxable Equivalent | |
N/M - Not Meaningful |
MARKET SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||||||||||
(dollar amounts in millions) |
Other |
Finance |
|||||||||||||||||||||
Three Months Ended December 31, 2015 |
Michigan |
California |
Texas |
Markets |
& Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
183 |
$ |
193 |
$ |
131 |
$ |
87 |
$ |
(160) |
$ |
434 |
|||||||||||
Provision for credit losses |
(12) |
(7) |
57 |
(6) |
3 |
35 |
|||||||||||||||||
Noninterest income |
82 |
41 |
32 |
98 |
17 |
270 |
|||||||||||||||||
Noninterest expenses |
162 |
108 |
104 |
109 |
6 |
489 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
32 |
43 |
6 |
17 |
(48) |
50 |
|||||||||||||||||
Net income (loss) |
$ |
83 |
$ |
90 |
$ |
(4) |
$ |
65 |
$ |
(104) |
$ |
130 |
|||||||||||
Net loan charge-offs |
$ |
(2) |
$ |
1 |
$ |
33 |
$ |
(6) |
$ |
— |
$ |
26 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
13,601 |
$ |
17,297 |
$ |
11,474 |
$ |
8,141 |
$ |
21,394 |
$ |
71,907 |
|||||||||||
Loans |
12,986 |
17,033 |
10,893 |
7,636 |
— |
48,548 |
|||||||||||||||||
Deposits |
22,123 |
18,545 |
10,807 |
7,880 |
381 |
59,736 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
1.43 |
% |
1.82 |
% |
(0.11)% |
3.07 |
% |
N/M |
0.72 |
% | |||||||||||||
Efficiency ratio (b) |
61.26 |
46.43 |
63.28 |
58.79 |
N/M |
69.53 |
|||||||||||||||||
Other |
Finance |
||||||||||||||||||||||
Three Months Ended September 30, 2015 |
Michigan |
California |
Texas |
Markets |
& Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
180 |
$ |
187 |
$ |
129 |
$ |
87 |
$ |
(160) |
$ |
423 |
|||||||||||
Provision for credit losses |
6 |
24 |
10 |
(11) |
(3) |
26 |
|||||||||||||||||
Noninterest income |
85 |
38 |
34 |
96 |
11 |
264 |
|||||||||||||||||
Noninterest expenses |
152 |
102 |
97 |
110 |
— |
461 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
36 |
37 |
20 |
25 |
(54) |
64 |
|||||||||||||||||
Net income (loss) |
$ |
71 |
$ |
62 |
$ |
36 |
$ |
59 |
$ |
(92) |
$ |
136 |
|||||||||||
Net loan charge-offs (recoveries) |
$ |
9 |
$ |
10 |
$ |
4 |
$ |
— |
$ |
— |
$ |
23 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
13,856 |
$ |
17,060 |
$ |
11,578 |
$ |
8,462 |
$ |
20,377 |
$ |
71,333 |
|||||||||||
Loans |
13,223 |
16,789 |
10,997 |
7,963 |
— |
48,972 |
|||||||||||||||||
Deposits |
21,946 |
18,372 |
10,753 |
7,593 |
476 |
59,140 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
1.23 |
% |
1.27 |
% |
1.16 |
% |
2.82 |
% |
N/M |
0.76 |
% | ||||||||||||
Efficiency ratio (b) |
57.49 |
45.28 |
59.54 |
59.86 |
N/M |
67.08 |
|||||||||||||||||
Other |
Finance |
||||||||||||||||||||||
Three Months Ended December 31, 2014 |
Michigan |
California |
Texas |
Markets |
& Other |
Total | |||||||||||||||||
Earnings summary: |
|||||||||||||||||||||||
Net interest income (expense) (FTE) |
$ |
173 |
$ |
192 |
$ |
139 |
$ |
82 |
$ |
(170) |
$ |
416 |
|||||||||||
Provision for credit losses |
(19) |
(10) |
18 |
8 |
5 |
2 |
|||||||||||||||||
Noninterest income |
89 |
37 |
38 |
45 |
16 |
225 |
|||||||||||||||||
Noninterest expenses |
157 |
100 |
95 |
58 |
9 |
419 |
|||||||||||||||||
Provision (benefit) for income taxes (FTE) |
45 |
55 |
24 |
15 |
(68) |
71 |
|||||||||||||||||
Net income (loss) |
$ |
79 |
$ |
84 |
$ |
40 |
$ |
46 |
$ |
(100) |
$ |
149 |
|||||||||||
Net loan charge-offs (recoveries) |
$ |
(5) |
$ |
1 |
$ |
2 |
$ |
3 |
$ |
— |
$ |
1 |
|||||||||||
Selected average balances: |
|||||||||||||||||||||||
Assets |
$ |
13,605 |
$ |
16,035 |
$ |
12,003 |
$ |
7,585 |
$ |
20,079 |
$ |
69,307 |
|||||||||||
Loans |
13,142 |
15,777 |
11,327 |
7,115 |
— |
47,361 |
|||||||||||||||||
Deposits |
21,530 |
18,028 |
10,825 |
6,909 |
468 |
57,760 |
|||||||||||||||||
Statistical data: |
|||||||||||||||||||||||
Return on average assets (a) |
1.41 |
% |
1.77 |
% |
1.32 |
% |
2.42 |
% |
N/M |
0.86 |
% | ||||||||||||
Efficiency ratio (b) |
59.92 |
43.61 |
53.62 |
45.47 |
N/M |
65.26 |
(a) |
Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. |
(b) |
Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains. |
FTE - Fully Taxable Equivalent | |
N/M - Not Meaningful |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries |
|||||||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, | |||||||||||
(dollar amounts in millions) |
2015 |
2015 |
2015 |
2015 |
2014 | ||||||||||
Tier 1 Common Capital Ratio: |
|||||||||||||||
Tier 1 and Tier 1 common capital (a) |
n/a |
n/a |
n/a |
n/a |
$ |
7,169 |
|||||||||
Risk-weighted assets (a) |
n/a |
n/a |
n/a |
n/a |
68,269 |
||||||||||
Tier 1 and Tier 1 common risk-based capital ratio |
n/a |
n/a |
n/a |
n/a |
10.50 |
% | |||||||||
Tangible Common Equity Ratio: |
|||||||||||||||
Common shareholders' equity |
$ |
7,574 |
$ |
7,622 |
$ |
7,523 |
$ |
7,500 |
$ |
7,402 |
|||||
Less: |
|||||||||||||||
Goodwill |
635 |
635 |
635 |
635 |
635 |
||||||||||
Other intangible assets |
14 |
14 |
15 |
15 |
15 |
||||||||||
Tangible common equity |
$ |
6,925 |
$ |
6,973 |
$ |
6,873 |
$ |
6,850 |
$ |
6,752 |
|||||
Total assets |
$ |
71,895 |
$ |
71,012 |
$ |
69,945 |
$ |
69,333 |
$ |
69,186 |
|||||
Less: |
|||||||||||||||
Goodwill |
635 |
635 |
635 |
635 |
635 |
||||||||||
Other intangible assets |
14 |
14 |
15 |
15 |
15 |
||||||||||
Tangible assets |
$ |
71,246 |
$ |
70,363 |
$ |
69,295 |
$ |
68,683 |
$ |
68,536 |
|||||
Common equity ratio |
10.54 |
% |
10.73 |
% |
10.76 |
% |
10.82 |
% |
10.70 |
% | |||||
Tangible common equity ratio |
9.72 |
9.91 |
9.92 |
9.97 |
9.85 |
||||||||||
Tangible Common Equity per Share of Common Stock: |
|||||||||||||||
Common shareholders' equity |
$ |
7,574 |
$ |
7,622 |
$ |
7,523 |
$ |
7,500 |
$ |
7,402 |
|||||
Tangible common equity |
6,925 |
6,973 |
6,873 |
6,850 |
6,752 |
||||||||||
Shares of common stock outstanding (in millions) |
176 |
177 |
178 |
178 |
179 |
||||||||||
Common shareholders' equity per share of common stock |
$ |
43.11 |
$ |
43.02 |
$ |
42.18 |
$ |
42.12 |
$ |
41.35 |
|||||
Tangible common equity per share of common stock |
39.41 |
39.36 |
38.53 |
38.47 |
37.72 |
(a) |
Tier 1 capital and risk-weighted assets as defined by Basel I risk-based capital rules. |
n/a - not applicable. |
The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with Basel I risk-based capital rules in effect through December 31, 2014. Effective January 1, 2015, regulatory capital components and risk-weighted assets are defined by and calculated in conformity with Basel III risk-based capital rules. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock. Comerica believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.
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SOURCE Comerica Incorporated