Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - COMERICA INC /NEW/ | june4form8-k.htm |
Comerica IncorporatedInvestor Roadshow June 5-6, 2012 Karen Parkhill Vice Chairman and CFO Darlene Persons Director of Investor Relations Safe Harbor Statement 2 Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of1995. 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” 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-lookingstatements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known toComerica's management as of the date of this presentation and do not purport to speak as of any other date. Forward-looking statements may includedescriptions 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 trendsand 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 anduncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differmaterially 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 the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and creditmarkets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorabledevelopments concerning credit quality; the acquisition of Sterling Bancshares, Inc., or any future acquisitions; the effects of more stringent capital or liquidityrequirements; declines or other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and businessmodels, including the implementation of revenue enhancements and efficiency improvements; Comerica's ability to utilize technology to efficiently andeffectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents;changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures amongfinancial institutions within Comerica's markets; changes in customer behavior; 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; the effectiveness of methods of reducing riskexposures; 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 thatthe 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 withthe Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form10-K for the year ended December 31, 2011. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to updateforward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For anyforward-looking statements made in this presentation or in any documents, Comerica claims the protection of the safe harbor for forward-looking statementscontained in the Private Securities Litigation Reform Act of 1995.
Comerica: A Brief Overview Among the top 25 U.S. bank holding companies $63 billion in assets Strong presence in Texas, California, and Michigan Three primary lines of business: Business Bank, Retail Bank, and Wealth Management Founded over 160 years ago Strong capital position • Tier 1 Common Ratio 10.27%3 3 Business Segment Revenue1 Business Bank $46059% Retail Bank $209 27% WM $11214% Market Segment Revenue2 Other Markets $598% Western$20426% International $26 3% Texas$18223% Florida$142% Midwest$29638% At 3/31/12; $ in millions (MM) 1YTD 3/31/12; YTD revenues (FTE) of $781MM from major business segments ($650MM from continuing operations (FTE) including Finance & Other Businesses); 2YTD 3/31/12: YTD revenues (FTE) of $781MM from major geographic markets ($650MM from continuing operations (FTE) including Finance & Other Businesses) based on office of origination; Midwest includes: MI, OH, IL; Western includes: CA, AZ, NV, CO, WA; Other Markets include markets not separately identified above in addition to businesses with a national perspective. 3See Supplemental Financial Data slides for reconciliation of non-GAAP financial measures Comerica’s Long-Term Strategy 4 6 interdependent pillars: Diversity Accountability Balance Growth Risk Mgmt Relationships Applied across 5 primary markets: Business Bank Retail Bank Wealth Management On behalf of 3 businesses:
2.20.9 3.2 3.3 2.4 1.9 1.7 1.1 0.0 1.0 2.0 3.0 4.0 Central W. MI Detroit Austin Houston North Texas San Antonio No. CA So. CA U.S. Average 1.6% CMA Market Avg.1 2.0% 2.1 0.8 3.2 2.9 2.3 2.6 1.4 1.0 0.0 1.0 2.0 3.0 4.0 Central W. MI Detroit Austin Houston North Texas San Antonio No. CA So. CA U.S. Average: 1.6% CMA Market Avg.1 2.1% 2013 Y/Y Projected Job Growth in Comerica Metro Areas2012 Y/Y Projected Job Growth in Comerica Metro Areas 1Comerica average also includes the Phoenix MSA and Miami MSASource: Comerica Economics forecast of nonfarm payroll data based on Bureau of Labor Statistics, as compiled by Moody’s Analytics. Analysis as of April 2012. Comerica Markets: Job Growth Projected to Outpace US Average 5 1.9 1.4 1.9 2.3 1.4 -0.3 0.1 -0.6 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Central W. MI Detroit Austin Houston North Texas San Antonio No. CA So. CA U.S. Average: 0.1% CMA Market Avg.1 1.0% 2.1 1.9 3.0 2.4 2.1 1.8 1.5 0.1 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Central W. MI Detroit Austin Houston North Texas San Antonio No. CA So. CA U.S. Average: 1.3% CMA Market Avg.1 1.8% 2013 Y/Y Projected Home Price Growth in Comerica Metro Areas 2012 Y/Y Projected Home Price Growth in Comerica Metro Areas 1Comerica average also includes the Phoenix MSA and Miami MSA. Source: Comerica Economics forecast of housing prices based on Federal Housing Finance Agency, as compiled by Moody’s Analytics. Analysis as of April 2012. Comerica Markets: Home Price Growth Projected to Outpace US Average 6
Financial Results $ in millions, except per share data1Calculated using net income attributable to common shares. 2Includes restructuring expenses of -0- in 1Q12, $37MM in 4Q11 and -0- 1Q11, related to the acquisition of Sterling Bancshares. 1Q12 4Q11 1Q11 Diluted income per common share1,2 $0.66 $0.48 $0.57 Net interest income $443 $444 $395 Provision for loan losses 23 19 49 Noninterest income 206 182 207 Noninterest expenses2 448 478 415 Net income 130 96 103 Total loans (average) $42,269 $41,454 $39,551 Total deposits (average) 48,311 47,779 40,598 Tier 1 capital ratio 10.27% 10.41% 10.35% Average diluted shares (millions) 196 197 178 7 Diverse Loan Portfolio Geography based on office of origination; Midwest: MI, OH, IL; Western: CA, AZ, NV, CO, WA1Specialty Businesses includes: Financial Services Division (FSD), Entertainment , Energy, Leasing, Mortgage Banker Finance and Technology and Life Sciences (TLS )2Other Markets include markets not separately identified above in addition to businesses with a national perspective Midwest$13.8B 33% Western$12.4B 29% Texas $9.3B 22% Florida $1.4B 3%Int'l$1.7B 4% Other Markets2$3.7B 9% Middle Market$12.0B 27% CommercialReal Estate$4.4B 11% Global CorpBanking$4.9B 12% Nat'l DealerServices$3.8B 9% SpecialtyBusinesses1$7.1B 17% Personal Banking$1.7B 4% Small Business Banking $3.8B 9% Private Banking$4.6B 11% Average 1Q12: $42.3 billion By Market By Line of Business 8
0.6 0.6 0.9 1.5 1.5 21.5 21.7 22.1 23.5 24.7 1Q11 2Q11 3Q11 4Q11 1Q12 Mortgage Banker 39.6 39.2 40.1 41.5 42.3 1Q11 2Q11 3Q11 4Q11 1Q12 +2% Commercial Loan Growth (Average Balances, $B) Average Loans Grew 2% with Commercial Loans up 5% Loan Growth Across Most Businesses and Markets +5% Total Loan Growth (Average Balances, $B) 9 1Q12 compared to 4Q11 Recent Commercial Loan Growth Outpacing Peers and the Industry 10 7% 5% 4% 3% 2% 2% 2% 1% 0% -1% -2% Peer Group Average: 2% 1 1Q12 compared to 4Q11 Source: SNL Financial and company reports.; Excludes ZION, as amount is not reported.2Source: Federal Reserve H.8 as of 3/28/12. Large banks are defined as the top 25 domestically chartered commercial banks, ranked by domestic assets. 3The primary difference between commercial loans on Comerica’s financial statements vs. H.8 C&I loans, is that Mortgage Banker Finance is excluded from the H.8 definition of C&I. 0% 2% 4% 6% 8% 1Q11 2Q11 3Q11 4Q11 1Q12 Comerica All Banks Large Banks Average Commercial Loan Growth1 Average Quarterly C&I Loan Growth2,3
Loan Commitments Increase $27.7 $25.8 $22.9 $21.7 $20.3 $20.3 $20.5 $20.3 $19.7 $19.8 $20.4 $22.3 $22.7 $52.5 $50.5 $48.5 $46.4 $44.9 $44.7 $44.3 $44.5 $44.5 $44.4 $45.0 $46.9 $47.8 40% 45% 50% 55% 60% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Outstandings Commitments Utilization Commitments and Outstandings ($ in MM) 1Q12 compared to 4Q11; 3Q11 includes Comerica legacy and Sterling Energy portfolio from date of acquisition; Average utilization of commercial commitments as a percentage of total commercial commitments at period end Line utilization is stable at 47.4% Commitments increased $1B to $47.8B, highest level since 3Q09 Increased commitments in all major markets Loan pipeline remained strong and increased 11 Comerica’s Loan Yields:Well Positioned for Growth & Rate Rise 0% 20% 40% 60% 80% 100% BOKF CMA KEY FHN FITB STI HBAN RF SNV MTB C&I Commercial RE All Other Large Proportion of C&I Loans3 0% 20% 40% 60% 80% 100% CMA FHN KEY RF MTB HBAN STI BOKF FITB BBT 3 months or less Greater than 3 months Faster Re-pricing or Maturity Date4 3.00 3.50 4.00 4.50 5.00 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Average of Peer Banks CMA Loan Yield Differential Narrows (%)1 Source: SNL Financial. 1Peer Banks include BBT, BOKF, FITB, FHN, HBAN, KEY, MTB, RF, STI, SNV, ZION. 2At 3/31/12. 3Excludes BBT and ZION as amounts were not reported. 4Excludes SNV and ZION as amounts were not reported. 1.00 0.68 Loan yields reflect2: Approx. 80% of loans are floating rate with 70% LIBOR based Rate floors are minimal (<10% of loans) Credit quality among the best of peers 12
Focus: Mortgage Banker Finance 13 40+ years experience with reputation for consistent, reliable approach Provide short-term warehouse financing: bridge from origination of residential mortgage until sale into end market Extensive backroom provides collateral monitoring and customer service Focus on full banking relationships Excellent credit quality throughout downturn. Charge-offs in 2010 and 2011 were virtually zero. 563 65 7 504 564 425 707 9 43 1,10 1 566 614 923 1,53 5 1,48 3 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Average Loans ($ MMs) 198 2 80 319 254 360 481 52 3 551 6 37 513 372 399 4 41 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Average Deposits ($ MMs) Toyota/Lexus 19% Honda/Acura 17% Ford 8% GM 8% Chrysler 7% Mercedes 4%Nissan/ Infiniti 8% Other European 9% Other Asian 9% Other211% Diverse Franchise Distribution1 Focus: National Dealer Services Detroit 3 23% at 3/12 vs. 41% at 12/05 Geographic DispersionWestern 57% Florida 7%Midwest 21% Texas 8% 1 Franchise distribution based on March 31, 2012 period-end (PE) outstandings2 “Other” includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) • 65 years of Floor Plan lending experience; over 20 years on a national basis • Top tier strategy• Majority are “Mega Dealer” (five or more dealerships in group)• Excellent credit quality• Robust monitoring of company inventory and performance 14 4,06 5 3,62 1 3,10 7 3,08 5 3,25 0 3,32 9 3,48 7 3,76 3 3,79 7 3,60 3 3,11 5 3,39 3 3,80 0 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Average Loans ($ MMs)
Focus: Energy • 30+ years experience through the cycles • Focus on middle market companies• Excellent credit quality• Deep relationships with significant ancillary noncredit products • Diverse customer base1: Natural Gas Oil Mixed Midstream 20% Service 18% Exploration & Production 62% $ in millions. 1Based on 1Q12 period end loans outstanding. 1,81 1 1,65 6 1,46 9 1,32 7 1,29 6 1,14 9 1,19 6 1,26 9 1,42 3 1,45 6 1,63 5 1,94 7 2,30 5 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Average Loans ($ MMs) 67 71 84 107 152 233 430 444 501 493 492 865 686 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Average Deposits ($ MMs) 15 • Approximately 890 borrowers• Strategy: Full relationships with ancillary business• Comerica is agent for approximately 17%• Adhere to same credit underwriting standards as rest of loan book • Credit quality mirrors total portfolio March 31, 2012: $8.7 billion Period-end outstandings as of March 31, 2012Shared National Credit (SNC): Facilities greater than $20 million shared by three or more federally supervised financial institutions which are reviewed by regulatory authorities at the agent bank level. Commercial Real Estate $0.9B 10% Global Corp Banking $2.7B 32% Nat'l Dealer Services $0.4B 4% Energy $2.0B 23% Other $0.6B 7% Middle Market $2.1B 24% 16 Focus: Shared National Credit Relationships
Focus: Commercial Real Estate 1Included in Commercial Real Estate line of business2$ in millions; excludes Commercial Real Estate line of business loans not secured by real estate 1Q12 Period End: $11.5 billion Primarily Owner-Occupied Commercial Mortgages$7.9B 70% Real Estate Construction1 $1.1B 9% Commercial Mortgages1 $2.5B 21% 1Q12 Period-end2 17 Western Michigan Texas Florida Other Markets Total Single Family 74 8 29 4 7 122Land Development 17 6 23 ‐ 23 69Total Residential 91 14 52 4 30 191Multi‐Family 83 ‐ 68 37 11 199Retail 103 40 85 11 29 268Multi‐use 65 ‐ 52 ‐ ‐ 117Other 85 12 68 2 ‐ 167Sterling ‐ ‐ 113 ‐ ‐ 113Total Commercial 336 52 386 50 40 864Subtotal 427 66 438 54 70 1,055 Single Family 16 5 5 3 20 49Land Carry 60 38 19 29 8 154Total Residential 76 43 24 32 28 203Multi‐Family 110 55 118 153 22 458Retail 177 79 46 66 18 386Multi‐use 114 19 36 ‐ 24 193Other 259 155 67 35 54 570Sterling ‐ ‐ 691 ‐ ‐ 691Total Commercial 660 308 958 254 118 2,298Subtotal 736 351 982 286 146 2,501 Total 1,163 417 1,420 340 216 3,556 Real Estate Construction Loans Commercial Mortgage Loans Focus: Consumer Loan Portfolio 8.6% of total outstandings No sub-prime mortgage programs Self-originated & relationship oriented Net loan charge-off ratio of 0.10% 1Q12: $3.7 billion Period-end loans. $ in billions. 1Residential mortgages on the balance sheet are primarily associated with Private Banking customers. Residential mortgages originated through the banking centers are typically sold to a third party. 2The “other” category includes automobile, personal watercraft, student and recreational vehicle loans. 3Data on loans booked through the Consumer Loan Center which encompasses about 85% of the Home Equity Lines and Loans. Consumer Loan Portfolio About 86% home equity lines and 14% home equity loans Average FICO score appx. 750 at origination 85% have CLTV ≤ 80% at origination Average loan vintage 6.0 years 1Q12: $1.6 billionHome Equity Portfolio3 Consumer Loans-Home Equity $1.6B 43% Residential Mortgages 1$1.5B 40% Consumer Loans-Other2$0.6B 17% Midwest 58% Western 26% Texas 13% Florida 3% 18
At 3/31/121Source: 2011 Nilson Report, a leading payment systems publication. 2Final rule announced 12/22/10 Focus: Government Card Programs #2 prepaid card issuer1 in US Service 32 state and local government benefit programs with over 5.6MM cards issued US Treasury DirectExpress Program:• Exclusive provider of prepaid debit cards with a contract through January 2015• Over 2.9 million cards registered• Deposit growth reflects the phase out of checks for government benefits2:o 5/1/11 – new benefit recipientso 3/1/13 – current check recipients 19 185 290 532 650 720 867 2007 2008 2009 2010 2011 YTD 2012 US Treasury Program State Card Programs Average Noninterest-Bearing Deposits ($ MMs) Investment Securities Portfolio Consists primarily of AAA mortgage-backed Freddie Mac and Fannie Mae government agency securities (MBS) Total average MBS portfolio of $9.5B Net unrealized pre-tax gain $250MM Yield of 2.73% Duration of 2.9 years Balance at period end 3/31/12 $9.6B Target: Mortgage-backed Securities ≈ $9B Average $ in millions (MM) 6,757 6,907 7,721 9,355 9,537 554 500 437 426 352 1Q11 2Q11 3Q11 4Q11 1Q12 Auction-Rate SecuritiesPrimarily Mortgage-backed Securities (MBS) 20
Record Deposit Levels 1Q12 compared to 4Q11 Total average deposits grew $532MM• Noninterest-bearing deposits up $461MM• Interest-bearing deposits up $71MM • Increase across all major markets and most lines of business Total period-end deposits grew $1.5B • Noninterest-bearing deposits up $977MM• Interest-bearing deposits up $574MM 21 Deposit Costs Decline as Deposits Grow ($B)1 40.6 41.5 45.1 47.8 48.3 47.8 49.3 0.37 0.35 0.33 0.29 0.26 1Q11 2Q11 3Q11 4Q11 1Q12 Sterling Deposit Rates Average Balances 4Q11 1Q12 Period-end Growing Deposit Base Provides Low Cost Funding 22 22% 25% 26 % 28% 29% 31 % 31% 32% 33 % 34% 3 8% 42 % Noninterest-bearing as a Percent of Total Deposits1 0.16 0.2 2 0.22 0.2 7 0.37 0.38 0.38 0.3 9 0.40 0.40 0.52 0.5 5 -4.6 % 0.8% 1.1% 3.6 % 4.2% 4.9% 6.2 % 8.8% 10.3 % 16.1 % 17.8 % 20.5 % Total Deposit Growth (3/31/11 vs. 3/31/12) 55.4 58.6 6 4.8 65.1 70 .2 76.3 76.5 77.1 88.2 88.6 9 6.7 Interest Costs on Total Deposits3 (%)Deposits Per Branch ($M)2 Source: SNL Financial. 1At 3/31/12. 2At 12/31/11; Excludes BOKF, as amounts were not available. 31Q12 interest incurred on deposits as a percent of average deposits
Steady Loan and Declining Deposit Yields 23 3.95 4.04 4.07 3.96 3.92 3.85 3.79 4.01 3.98 3.92 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 0.83 0.60 0.47 0.43 0.40 0.37 0.35 0.33 0.29 0.26 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Loan Yield Steady through the Cycle (%) Declining Total Deposit Costs1 (%) 100 % 98% 97% 96% 91% 90% 89% 87% 85% 81% 80% 64% MTB FITB FHN STI HBAN SNV BBT CMA ZION KEY RF BOKF Loan to Deposit Coverage2 As of 3/31/12; 1Interest incurred on deposits as a percentage of average interest-bearing deposits. 21Q12 Loan/ Deposit Ratio; Source SNL Financial; ratio is calculated as total gross loans as a percent of period end total deposits. Balance Sheet Positioned for Growth 24 Assets Approx. 80% of loans are floating rate of which approximately 70% are LIBOR based Rate floors are minimal (< 10% of total loans) Securities are primarily low risk and liquid, with an avg. life of approx. 3 years Nonaccrual loans – relatively minor impact Funding Funding predominantly from core deposits Approx. 40% of deposits are noninterest-bearing – provide more value in a higher rate environment Wholesale funding options remain accessible Interest Rate Sensitivity Balance sheet is well positioned for rising rates1 Sensitivity is to short-term interest rates At 3/31/12.1For analysis and underlying assumptions, see caption "Interest Rate Risk" starting on page 61 of our 3/31/12 Form 10-Q
Credit Quality Improvement Continued $ in millions1Watch list is generally consistent with regulatory defined Special Mention, Substandard and Doubtful (nonaccrual) loans2Reflects addition of Sterling watch list loans from July 28, 2011. 1 25 49 47 38 19 23 1.03 0.92 0.77 0.57 0.43 1Q11 2Q11 3Q11 4Q11 1Q12 Provision Net Charge-offs Ratio Net charge-offs decline for 11 consecutive quarters 1,030 974 958 887 856 5,166 4,827 4,969 4,467 4,206 1Q11 2Q11 3Q11 4Q11 1Q12 Nonperforming Loans Accruing Watch list Loans 2 Watch list1 continued to trend down Net Interest Income Stable 11Q12 compared to 4Q11.2At 3/31/12; Analysis based on non-parallel ramp in interest rates over 12 months; See 10Q filing with SEC for methodology. Net interest income stable1 reflecting:+ Loan growth ($7MM)+ Lower deposit costs ($2MM)- One less day in the quarter ($5MM)- Lower loan yields due to mix shift ($5MM), primarily from CRE to Commercial Balance sheet remains well positioned for a rising rate environment2: 200 basis points annual rate increase equates to ≈$165MM expected increase in net interest income 395 391 423 444 443 3.85 3.79 4.01 3.98 3.92 1Q11 2Q11 3Q11 4Q11 1Q12 Accretion Loan Yields 252627 Net Interest Income ($MM)1 26
Customer Fee Income GrowthOffsetting Regulatory Headwinds At March 31, 2012 1Customer-Driven Fee Income includes service charges on deposit accounts, fiduciary income, commercial lending fees, letter of credit fees, card fees, foreign exchange income, brokerage fees and customer-driven components of other noninterest income. 27 177 178 180 171 181 207 202 201 182 206 1Q11 2Q11 3Q11 4Q11 1Q12 Customer-Driven Fee Income Total Noninterest Income ($MM) 1 +13% +6% Noninterest income increased 13% reflecting: Customer-driven Fee Income increased $10MM, or 6%+ Service charges on deposit accounts ($4MM)+ Investment banking fees ($3MM)+ Fiduciary income ($2MM)+ Commercial lending fees ($2MM) All other noninterest income increased $14MM+ Gain on redemption of ARS ($4MM)+ 4Q11 impacted by VISA related charge ($5MM) Tight Expense Control Continues 4Q11 compared to 1Q12. 1Increase excludes restructuring charges of $37MM in 4Q11 and -0- in 1Q12. 2Calculated as Total Assets divided by Full Time Equivalent Employees; Source: SNL Financial at 3/31/2012. 8,955 8,915 9,701 9,397 9,195 1Q11 2Q11 3Q11 4Q11 1Q12 -2% Full Time Equivalent (FTE) 28 404 427 441 415 409 460 478 448 1Q11 2Q11 3Q11 4Q11 1Q12 Restructuring Noninterest Expenses ($MM) +2%1 $5,004 $5,031 $5,242 $5,327 $5,431 $5,505 $5,586 $5,591 $5,604 $5,676 $6,228 $6,807 HBAN ZION SNV MTB RF FITB FHN BOKF BBT KEY STI CMA Total Assets per Employees2
Active Capital Manager 83% 59% 34% 36% 62% 91% 57% 96% 104% 86% 143% 34% 19% 76% 63% 81% 35% 34% 34% 34% 45% 56% 53% 47% 43% 43% 57% 17% 19% 20% 21% 23% '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 1Q11 2Q11 3Q11 4Q11 ProForma1Q12 Shares Repurchased Dividend Historical Average Shareholder Payout of 77% of annual earnings 2012 Capital Plan Approved Regulators had no objection to 2012 Capital Plan Board increased dividend 50% to $0.15 per share $375MM share repurchase target from 1Q12 through 1Q132 1.125 million shares purchased in 1Q12 ($33MM) 11Q12 payout ratio is a pro forma estimate, based on 1Q12 actual results. Assumes capital plan announced in March 2012 was executed during the period. Share repurchases assume 1/5th of announced amount was repurchased during the period. 1Q12 ProForma includes $0.15 dividend and $75MM share repurchase. Actual CMA 1Q12 Payout Ratio = 41%. 2Shares repurchased are pursuant to Comerica’s Repurchase program. Outlook as of June 4, 2012. 1 29 30 Factors Expected to Drive Long-Term ROA Goal 2011 ROA Long-Term ROA Goal1 0.69% >1.30%Managed Expense Growth of 1- 2% Fee Income Growth of 4 - 5% Loan Growth of 5 - 6% • Increase cross-sell penetration • Collaboration between businesses Focused growth:• Target markets • Allocation of resources to faster growing businesses • Relationship driven • Normalized rates not necessary to reach long-term goal Fed Funds Many factors at play, none of which move independently • Continued focus on operating leverage 1Goal as of June 4, 2012. Normal (≈3.5%) <2% <1%
Update on Sterling Acquisition Virtually tripled deposit share in Houston1 Complemented Dallas/Ft. Worth locations Enabled entry in San Antonio & Kerrville 1Source: FDIC June 2011 data. 2Estimated as of 5/1/12. 3Merger-related charges estimates compared to expectations at the time of announcement of acquisition. 2011 restructuring charges were $47MM after-tax($75MM pre-tax). 2012 revised estimate: $25MM after-tax ($40MM pre-tax). 4Estimated overall loan growth in the Houston, San Antonio, and Kerrville markets from August 2011 through 1Q12. 5 To be delivered in 2012. Estimated overall increases in the Houston, San Antonio, and Kerrville markets based on run-rate as of acquisition date. Sterling Acquisition Accelerates Growth in Texas Comerica Branches Sterling Branches • Completed on scheduleSystems Integration • Achieved 35% savings in 2011, a year ahead of scheduleExpense Synergies • Achieved4: • 10% loan growth• On track to achieve5:• 15% increase in noninterest income Revenue Synergies2 • Less than original estimate• ≈$40MM for remainder of 2012• $5MM-$10MM in 2Q12 Merger-Related Charges2,3 31 • Solid Position• Tier 1 (10.27%): 100% common equity• 2012 Capital Plan• Share repurchases up to $375MM through 1Q13 Active Capital Mgmt • Positive Trends• Improvement for ten consecutive quarters• Weathered cycle well relative to peers Asset Quality • Positioned for rising rates• Rate decline is already absorbed, continued low rates will have no further negative impact. Interest Rate Sensitivity • Positioned in faster growing markets (MI & TX) and industries (Energy, TLS & Dealer) Loan Growth • Well managed• Profit improvement plan launched Fall ‘11 to offset headwinds Expense Control • Lowest cost deposits and largest percentage of funding from DDA among peers.• Holding new and renewed loan spreads. Maintain Deposit & Loan Spreads 32 Factors That Can Drive Increasing Returns Well Positioned for the Future
Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch DBRS BB&T A- A2 A+ A (high) Comerica A- A3 A A M&T Bank A- A3 A- A (low) BOK Financial BBB+ A2 A- A (low) KeyCorp BBB+ Baa1 A- BBB (high) SunTrust BBB Baa1 BBB+ A (low) Fifth Third BBB Baa1 A- A (low) Huntington BBB Baa1 BBB+ BBB First Horizon National Corp BBB- Baa1 BBB+ Regions Financial BBB- Ba3 BBB- BBB Zions Bancorporation BBB- Ba3 BBB- BBB (low) Synovus Financial Corp B B2 BB- Holding Company Debt Ratings As of 5/22/12; Source: SNL Financial; Debt Ratings are not a recommendation to buy, sell, or hold securities. 33 Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ in millions) 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 bank regulations. 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.The Corporation 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.1Regulatory Capital, Tier 1 Capital and risk-weighted assets as defined and calculated in accordance with regulation. 3/31/12 12/31/11 9/30/11 6/30/11 3/31/11Total Regulatory Capital1 $9,056 $9,015 $9,141 $8,705 $8,730Tier 1 capital1Less: Trust preferred securities $6,647-- $6,58225 $6,56049 $6,193-- $6,107--Tier 1 common capitalRisk-weighted assets1Tier 1 common capital ratio 6,64764,74210.27% 6,55763,24410.37% 6,51161,59310.57% 6,19358,79010.53% 6,10758,99810.35% Total shareholders’ equityLess: GoodwillLess: Other intangible assets $6,98563530 $6,86863532 $6,95163535 $6,0381504 $5,8771505 Tangible common equity $6,320 $6,201 $6,281 $5,844 $5,722Total assetsLess: GoodwillLess: Other intangible assets $62,59363530 $61,00863532 $60,88863535 $54,1411504 $55,0171505Tangible assets $61,928 $60,341 $60,218 $53,987 $54,862Tangible common equity ratio 10.21% 10.27% 10.43% 10.90% 10.43% 34