Comerica (CMA) Investor Presentation summary

Strategic positioning and business model

• Focus on tailored solutions, localized advice, and community engagement to serve target customers, blending small bank service with large bank capabilities.

• Diversified business model across commercial, retail, and wealth management, with a cohesive relationship strategy unlocking franchise value.

• Geographic footprint spans major U.S. growth markets, with significant presence in Texas, California, Michigan, and expansion in the Southeast and Mountain West.

Financial performance and capital management

• 2Q24 saw improved profitability, with net income of $206M and EPS of $1.49, driven by favorable customer trends, prudent credit discipline, and reduced notable items.

• CET1 capital ratio increased to 11.55%, well above the 10% target, maintaining a strong capital position.

• Net interest margin rose to 2.86% as lower Fed deposits and average loans were offset by reduced wholesale funding and improved deposit costs.

• Noninterest expenses declined, reflecting lower salaries, benefits, and FDIC expense, with ongoing efficiency initiatives.

Loans, deposits, and liquidity

• Average loans decreased 0.6% to $51.1B, but period-end loans increased 2% with growth in key business lines.

• Average deposits fell 3.5% to $63.1B, with a strong 40% noninterest-bearing mix and lower concentration in vulnerable businesses.

• Liquidity remains robust, with $41.4B in total capacity and a loan-to-deposit ratio below historical averages.