Attached files
| file | filename |
|---|---|
| 8-K - 8-K - COMERICA INC /NEW/ | august2013investorpresenta.htm |
Comerica Incorporated Investor PresentationAugust 2013 Ralph W. Babb, Jr.Chairman and CEO Karen ParkhillVice Chairman and CFO Safe Harbor Statement 2 Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities LitigationReform 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” 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 itsmanagement, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs andassumptions of Comerica's management based on information known to Comerica's management as of the date of this presentation and do notpurport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's managementfor 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 reflectthe 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 ofthese risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from thosediscussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes inmonetary 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; any future acquisitions or divestitures; the effects of more stringent capital or liquidity requirements;declines or other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and businessmodels; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operationaldifficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interestrates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Comerica's markets;changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officersand employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; theeffects 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 theforegoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to ourfilings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 13 of Comerica'sAnnual Report on Form 10-K for the year ended December 31, 2012 and "Item 1A. Risk Factors" beginning on page 68 of the Corporation'sQuarterly Report on Form 10-Q for the quarter ended June 30, 2013. 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 datethe forward-looking statements are made. For any forward-looking statements made in this presentation or in any documents, Comerica claimsthe protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
3 As of 6/30/13 ● 1Analysis based on non-parallel gradual increase in interest rates over 12 months; For methodology see the Company’s Form 10Q for the quarter ended 6/30/13, as filed with the SEC Well Positioned for the Future Loans • Positioned in faster growing markets and industries • Maintain pricing & structure discipline Expenses • Continued tight expense control • Lowest cost deposits & largest percentage DDA funding vs. peers Asset Quality • Strong credit culture leads to solid credit metrics • Weathered cycle well relative to peers Capital Manager • One of the highest shareholder payouts in peer group • Strong capital base; Well positioned for Basel III capital rules Rising Rates • Well positioned for rising rates • 200 bps increase in rates expected to result in 11% increase in net interest income1 Financial Results 4 2Q13 1Q13 2Q12 Diluted income per common share1 $0.76 $0.70 $0.73 Net interest income $414 $416 $435 Loan accretion 7 11 18 Provision for credit losses 13 16 19 Noninterest income 208 200 211 Noninterest expenses 416 416 434 Restructuring expenses -- -- 8 Net income 143 134 143 Total average loans $44,893 $44,617 $43,228 Total average deposits 51,448 50,692 48,672 Tier 1 common capital ratio2 10.43% 10.37% 10.39% Basel III Tier 1 common capital ratio2,3 10.1% 10.1% 10.0% Average diluted shares (millions) 187 187 194 $ in millions, except per share data ● 1Calculated using net income attributable to common shares ● 2See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures ● 3Estimated ratios based on the standardized approach in the final rule and assuming the election to exclude most elements of accumulated other comprehensive income (AOCI)
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 Capital Ratio 10.43%2 5 Average Loan Balances1 Average Deposit Balances1 Other Markets $5.911% California$14.729% Finance & Other$0.5 1%Texas$10.220%Michigan$20.139% At 6/30/13 ● 12Q13 balances; $ in billions ● 2See Supplemental Financial Data slides for reconciliation of non-GAAP financial measures California$13.931% Texas$10.223% Michigan$13.630% Other Markets$7.216% Established Texas presence: 1988 Moved headquarters to Dallas: 2007 Largest U.S. commercial bank with corporate headquarters in Texas Acquisition of Sterling completed July 2011 Increased deposit share two notches to #91from 2011 Comerica Texas Economic Activity Index2 up 45% from cycle low 6 At 6/30/13 ● Charts: $ in billions ● 1Source: FDIC June 2012 ● 2May 2013 economic activity index, published July 2013 Substantial Growth Opportunities in Texas 9.5 9.6 9.8 10.1 10.2 2Q12 3Q12 4Q12 1Q13 2Q13 10.2 9.9 9.8 10.0 10.2 2Q12 3Q12 4Q12 1Q13 2Q13 --% +7% Average Loan Balances Average Deposit Balances
Established California presence: 1991 Increased deposit market share from 20111 Comerica California Economic Activity Index2 up 47% from cycle low 7 Charts: $ in billions ● 1Source: FDIC June 2012 ● 2May 2013 economic activity index, published July 2013 Well Positioned for Growth Opportunities in California 12.6 12.9 13.3 13.5 13.9 2Q12 3Q12 4Q12 1Q13 2Q13 14.1 15.0 15.5 14.4 14.7 2Q12 3Q12 4Q12 1Q13 2Q13 +4% +10% Average Loan Balances Average Deposit Balances Established Michigan presence: 1849 Maintained #2 position in Michigan, with an increased deposit market share from 20111 Comerica Michigan Economic Activity Index2 up 74% from cycle low Charts: $ in billions ● 1Source: FDIC June 2012 ● 2May 2013 economic activity index, published July 2013 8 Leveraging #2 Deposit Market Share in Michigan 13.8 13.5 13.4 13.6 13.6 2Q12 3Q12 4Q12 1Q13 2Q13 19.3 19.6 20.0 20.2 20.1 2Q12 3Q12 4Q12 1Q13 2Q13 +5% -1% Average Loan Balances Average Deposit Balances
2013 Loan Growth Outpacing Industry and Peer Average 9 1Source: Federal Reserve H.8 as of 6/26/13 ● 2Source: SNL Financial Average Quarterly Total Loan Growth1 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 2Q12 3Q12 4Q12 1Q13 2Q13 Comerica All Commercial Banks -1.3 % 0.1% 0 .2% 0.2% 0.2 % 0.4% 0.6% 0 .7% 0 .7% 0.8 % 0.8% 0.9% FHN SNV MTB KEY ST I RF CMA FITB BB T BOK F ZIO N HBA N Growth in Average Loans2(2Q13 vs. 1Q13) Average: 0.4% Commercial Loans Again Drive Growth:Pace of Decline in CRE Continues to Slow 1.5 2.0 2.1 1.7 1.826.0 26.7 27.5 28.1 28.4 2Q12 3Q12 4Q12 1Q13 2Q13 Mortgage Banker 10 Left chart: $ in millions ● Right charts: $ in billions ● Average loan balances ● 1Primarily loans secured by owner-occupied real estate ● 2Primarily loans to real estate developers +9% Commercial Loan Growth Real Estate Construction & Commercial Mortgage Loans 7.9 8.0 7.8 7.7 7.6 3.5 3.1 3.0 3.0 3.0 11.4 11.1 10.8 10.7 10.6 2Q12 3Q12 4Q12 1Q13 2Q13 Owner-Occupied CRE Developer CRE1 2 Growth Driven by Lower Yielding Commercial Loans(2Q13 vs. 1Q13) -18 46 -20 -2 -206 139 337 276 Consumer loans Residential mortgage loans International loans Lease financing Commercial mortgage loans Real estate construction loans Commercial loans Total loans Yield 3.47 3.29 4.04 3.86
$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 $23.7 $24.0 $25.0 $24.3 $25.0 $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 $48.5 $49.7 $50.6 $50.9 $51.9 30% 40% 50% 60% 70% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 Outstandings Commitments Utilization Chart: $ in billions ● 2Q13 compared to 1Q13 ● Average utilization of commercial commitments as a percentage of total commercial commitments at period end Line utilization of 48.2%, up from 47.7% Commitments increased almost $1B to $51.9B, highest level since 1Q09 Increased commitments in all major markets and nearly all business lines Loan pipeline increased to highest level since 1Q12 11 Loan Commitments Continue to Grow:Utilization Rate Holding Steady Commitments and Outstandings Loans by Business and Market 12 Middle Market: Serving companies with revenues generally between $20-$500MM Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM Average $ in billions By Line of Business 2Q13 1Q13 2Q12 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $13.53.05.10.61.90.8 $13.43.04.90.62.00.8 $13.12.54.30.61.70.6 Total Middle Market $24.9 $24.7 $22.8 Corporate BankingUS BankingInternational 2.71.7 2.81.8 3.01.8 Mortgage Banker Finance 1.8 1.7 1.5 Commercial Real Estate 3.8 3.7 4.3 BUSINESS BANK $34.9 $34.7 $33.4 Small Business 3.6 3.6 3.5 Retail Banking 1.7 1.7 1.8 RETAIL BANK $5.3 $5.3 $5.3 Private Banking 4.7 4.6 4.5 WEALTH MANAGEMENT $4.7 $4.6 $4.5 TOTAL $44.9 $44.6 $43.2 By Market 2Q13 1Q13 2Q12 Michigan $13.6 $13.6 $13.8 California 13.9 13.5 12.6 Texas 10.2 10.1 9.5 Other Markets 7.2 7.4 7.3 TOTAL $44.9 $44.6 $43.2
13 General Middle Market At 6/30/13 ● Charts: $ in billions ● 12Q13 average balance 8.9 8.9 9.2 9.6 9.8 10 .6 10.9 11. 4 11.2 11.2 12 .1 12.7 13 .5 13.5 14. 1 14.6 14.1 13.8 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 Average Loans Average Deposits 16.5 15.9 15.0 14.2 13.6 13.4 13.0 13.0 13.0 13.2 13.1 13.0 13.0 13.1 13.1 13.2 13. 4 13.5 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 Represents largest segment at 30% of total average loans Average loans grew in 5 of the last 6 quarters Commitments up $400M from 1Q13 Pipeline is strong Average tenure of a relationship manager is 9 years California$4.0B 29% Texas$2.4B 18% Michigan$6.8B 51% Other Markets$0.3B 2% Average Loans by Market1 Mortgage Banker Finance 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 Average Deposits 198 2 80 319 254 360 481 52 3 551 6 37 513 372 399 4 41 454 49 7 62 5 645 665 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 563 6 57 504 56 4 425 707 943 1 ,101 566 61 4 923 1,53 5 1,48 3 1,50 7 1,99 6 2,09 4 1,73 7 1,81 5 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 Average Loans Charts: $ in millions 14
National Dealer Services Line of Business 15 Toyota/Lexus18% Honda/Acura 17% Ford 8% GM 9% Chrysler 8% Mercedes 3%Nissan/ Infiniti 7% Other European 9% Other Asian 11% Other210% 65+ years of Floor Plan lending, with 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 Geographic DispersionCalifornia 63% Texas 6%Michigan 18% Other 13% 3. 5 3.5 3.5 4.3 4.9 5.1 5.3 2009 2010 2011 2012 1Q13 2Q13 2Q13 Loan Balances Average Period End 1Franchise distribution based on 6/30/13 period-end outstandings ● 2Other includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) ●Right chart: $ in billions Franchise Distribution1 Energy 16 Average Loans Average Deposits 30+ years’ experience through the cycles Focus on middle market companies Excellent credit quality Deep relationships with significant ancillary noncredit products Natural Gas Oil Mixed Midstream 20% Service 14% Exploration & Production 66% Charts: $ in millions ● 1Based on 2Q13 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 2,45 2 2,64 1 2,85 1 3,00 2 2,95 1 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 67 71 84 107 152 233 430 444 50 1 493 492 865 686 567 533 512 411 48 8 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 Diverse Customer Base1
Technology and Life Sciences 20+ year history Products and services tailored to meet the needs of emerging technology and life science companies throughout their lifecycle Strong relationships with top-tier investors National business headquartered in Palo Alto, CA, operating from 13 offices in the U.S. and Toronto Top notch relationship managers with extensive industry expertise Average Loans Average Deposits 1,71 6 1,52 1 1,37 1 1,28 0 1,09 8 1,14 7 1,12 0 1,16 2 1,19 3 1,21 7 1,34 6 1,51 7 1,64 3 1,65 9 1,83 1 1,88 6 2,00 8 1,91 3 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 2,64 9 2,72 7 2,85 6 3,19 8 3,26 9 3,42 4 3,34 5 3,49 8 3,73 0 4,11 6 4,23 1 4,44 0 4,70 3 5,06 5 5,20 8 5,16 6 5,02 6 4,99 6 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 At 6/30/13 ● Charts: $ in millions 17 18 6,84 3 6,65 2 6,36 5 6,04 5 5,74 4 5,37 4 5,09 6 4,75 4 4,42 8 4,03 4 4,43 6 4,57 7 4,36 5 4,30 5 3,92 4 3,72 7 3,69 3 3,79 1 1Q0 9 2Q0 9 3Q0 9 4Q0 9 1Q1 0 2Q1 0 3Q1 0 4Q1 0 1Q1 1 2Q1 1 3Q1 1 4Q1 1 1Q1 2 2Q1 2 3Q1 2 4Q1 2 1Q1 3 2Q1 3 Commercial MortgagesReal Estate ConstructionCommercial & Other 160+ years experience with focus on well-established developers, primarily in our footprint Provides construction and mini-perm mortgage financing Real Estate Construction average loans up $102MM from 1Q13 4,228 4,248 4,345 4,655 4,703 2Q12 3Q12 4Q12 1Q13 2Q13 +11% At 6/30/13 ● Charts: $ in millions ● 1Includes CRE line of business loans not secured by real estate ● 2Based on period-end commitments CRE Line of BusinessAverage Loans CRE Commitments2 Commercial Real Estate Line of Business 1
Shared National Credit Relationships 19 Approximately 870 borrowers Strategy: Pursue full relationships with ancillary business Comerica is agent for approximately 18% Adhere to same credit underwriting standards as rest of loan book Credit quality mirrors total portfolio Commercial Real Estate$0.6B 7% Corporate $2.5B 27% General$2.2B 24% National Dealer $0.4B 4% Energy$2.6B 29% Entertainment$0.2B 2% Tech. & Life Sciences$0.2B 2% Environmental Services $0.3B 3% Mortgage Banker$0.2B 2% June 30, 2013: $9.2B Period-end outstandings as of 6/30/13 ● Shared 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 = Total Middle Market (64%) Highly Liquid, Highly Rated Securities Portfolio 20 At 6/30/13 ● Excludes auction-rate securities ● Residential mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises ● 1Estimated as of 6/30/13 ● 2Outlook as of 7/16/13. Prepayments include both scheduled principal amortization and mortgage prepayments Mortgage-backed Securities (MBS) Portfolio of $9.3B at 6/30/13 MBS Portfolio Key Metrics: Portfolio size fluid depending on deposit and loan growth expectations as well as yields available for MBS Duration of 4.1 years1 Duration extends to 5.1 years under a 200 bps instantaneous rate increase1 Net unrealized pre-tax gain $10MM, down $219MM (after-tax impact to AOCI $139MM) Unamortized premium of about $80MM Expect prepayments of $500MM-$600MM for 3Q132 15-Year agency Pass-Through$4.1B 44% 10-Year agency Pass-Through$0.1B 1% Agency CMO$5.0B 54%Other (PT & ARM)$0.1B 1% Average MBS Portfolio for 2Q13: $9.4B
54.1 6 3.7 64.4 70 .5 70.8 82.9 86 .6 93.0 94. 8 105 .9 RF HBA N KEY FITB BB T STI BOK F FHN ZIO N CMA 12 13 14 23 23 24 25 26 26 28 CMA ZIO N RF FITB ST I BBT FHN HBA N KEY BOK F Growing Deposit Base: Provides Low Cost Funding 21 Total Average Deposit Growth(2Q13 vs. 1Q13) Deposits Per Branch2 Interest Costs on Total Deposits3 Source: SNL Financial ● 1$ in billions ● 2$ in millions at 6/30/13. Excludes MTB and SNV, as amounts were not available as of 8/7/13 ● 3In basis points. 2Q13 interest incurred on deposits as a percent of average deposits. Excludes MTB and SNV as amounts were not available as of 8/7/13 -0.9 % -0.4 % -0.3 % 0.4% 0.6 % 1.3% 1.5% 1.8 % 2.8% 3.5 % BOK F RF STI FHN BBT HBA N SNV ZIO N CMA MTB KE Y FITB Average Deposit Growth1 48.7 49.9 51.3 50.7 51.4 2Q12 3Q12 4Q12 1Q13 2Q13 -2.6 % -1.3 %+6% Growing Average Noninterest-Bearing Deposits Government Card Programs 22 #1 prepaid card issuer1 in US Service 32 state and local government benefit programs Service US Treasury DirectExpress Program:• Exclusive provider of prepaid debit cards with a contract through January 2015• Over 4.5 million cards registered• Phasing out checks2As of 5/1/11, new benefit recipientsAs of 3/1/13, current check recipients• 95% of Direct Express card holders report they are satisfied3• Nearly 8MM monthly benefit checks eliminated, resulting in significant taxpayer savings4185 290 532 650 720 948 1,128 1,214 2007 2008 2009 2010 2011 2012 1Q13 2Q13 US Treasury ProgramState Card Programs At 6/30/13 ● Chart: $ in millions ● 1Source: the Nilson Report July 2013 ● 2Final rule announced 12/22/10 ● 3Based on a June 2012 survey. Source: U.S. Department of the Treasury ● 4Checks eliminated since December 2010. Source: U.S. Department of the Treasury
Deposits by Business and Market 23 Middle Market: Serving companies with revenues generally between $20-$500MM Corporate Banking: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM Average $ in billions By Line of Business 2Q13 1Q13 2Q12 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $13.80.50.20.15.00.2 $14.10.40.20.15.00.2 $13.50.60.20.15.10.1 Total Middle Market $19.8 $20.0 $19.6 Corporate BankingUS BankingInternational 2.61.6 2.31.5 1.71.4 Mortgage Banker Finance 0.7 0.6 0.5 Commercial Real Estate 1.3 1.2 1.0 BUSINESS BANK $26.0 $25.6 $24.2 Small Business 2.7 2.6 5.9 Retail Banking 18.5 18.4 14.6 RETAIL BANK $21.2 $21.0 $20.5 Private Banking 3.7 3.7 3.6 WEALTH MANAGEMENT $3.7 $3.7 $3.6 Finance/ Other 0.5 0.4 0.4 TOTAL $51.4 $50.7 $48.7 By Market 2Q13 1Q13 2Q12 Michigan $20.1 $20.2 $19.3 California 14.7 14.4 14.1 Texas 10.2 10.0 10.2 Other Markets 5.9 5.7 4.7 Finance/ Other 0.5 0.4 0.4 TOTAL $51.4 $50.7 $48.7 Why is Comerica Asset Sensitive? ~85% of loans are floating rate with ~75% LIBOR based (primarily 30-day LIBOR) ~15% of loans are fixed rate <10% of loans have rate floors 200 basis points annual rate increase equates to ≈$187MM expected increase in net interest income2 Noninterest-Bearing as a Percentof Total Deposits3 25.1 % 25.8 % 27.1 % 29.1 % 29.8 % 31.9 % 32.2 % 36.6 % 36.7 % 36.8 % 39.6 % 42.7 % SNV BBT FHN HBAN STI RF FITB BOKF MTB KEY ZION CMA Source: SNL Financial ● At 6/30/13 ● 1Excludes BBT, FHN, MTB & ZION as amounts were not available as of 8/7/13 ●2Analysis based on non-parallel gradual increase in interest rates over 12 months; For methodology see the Company’s Form 10Q for the quarter ended 6/30/13, as filed with the SEC. ● 3Average balances Large Proportion of C&I Loans1 Faster Re-pricing or Maturity Date Comerica’s Loan Portfolio 0% 20% 40% 60% 80% 100% CMA FHN KEY RF FITB MTB HBAN STI BOKF ZION SNV BBT Less Than 3 Months Greater Than 3 Months 24 0% 20% 40% 60% 80% 100% CMA BOKF KEY FITB STI HBAN RF SNV C&I Commercial RE All Other
747 692 541 515 471 667 647 629 617 613 2Q12 3Q12 4Q12 1Q13 2Q13 Nonperforming Loans Allowance for Loan Losses 45 43 37 24 17 2Q12 3Q12 4Q12 1Q13 2Q13 Continued Solid Credit Quality 25 1$ in millions ● 2Watch list is generally consistent with regulatory defined Special Mention, Substandard and Doubtful (nonaccrual) loans● 3Quarterly allowance for loan losses as divided by the last twelve months of net loan charge-offs Allowance to NPL Coverage1 3,835 3,653 3,088 3,110 2,886 2Q12 3Q12 4Q12 1Q13 2Q13 Net Loan Charge-offs1 294% 335% 370% 414% 507% 2Q12 3Q12 4Q12 1Q13 2Q13 Allowance Coverage Ratio for LTM of Net Loan Charge-offs3 Watch List2 Continues to Trend Down1 Left chart: Source: SNL Financial ● Right chart: $ in millions ● 2Q13 compared to 1Q13 Nonperforming Assets of $500MM, a $55MM decrease, included:• Nonaccrual loans decreased $45MM • Foreclosed Property decreased to $29MM Troubled Debt Restructurings (TDRs) of $223MM, included:• $78MM Performing Restructured• $21MM Reduced Rate • $124MM Nonaccrual TDR 26 Strong Credit Culture 814 755 595 555 5001.85 1.71 1.29 1.23 1.10 2Q12 3Q12 4Q12 1Q13 2Q13 Nonperforming Assets as aPercentage of Total Loans + ORE 0 2 4 6 2008 2009 2010 2011 2012 1Q13 2Q13 Peer Range Peer Group Average CMA NCO Ratio: Lower Then Peer Average2 Weathered cycle well relative to peers:• Consistent credit underwriting policies• Positive credit migration reflected in loan yields• Credit metrics currently within historical normal range Nonperforming Assets
Allowance Coverage Reflects Loan Mix 27 2.16 % 2.12 % 1.95 % 1.74 % 1.70 % 1.69 % 1.64 % 1.61 % 1.59 % 1.58 % 1.41 % 1.35 % RF ZION FITB HBAN SNV STI KEY BBT BOKF FHN MTB CMA Allowance for Loan Losses as a Percentage of Total Loans 112 % 112 % 90% 80% 78% 54% 39% 30% KEY CMA ZION MTB BBT STI RF SNV Allowance for Loan Losses to NPLs2 ALLL to loans ratio reflects our large proportion of commercial loans and solid credit quality Typically troubled commercial loans are carried as NPLs, whereas troubled consumer loans are charged-off This results in a higher ALLL to NPLs and a lower ALLL to Loans ratio for CMA Large Proportion of C&I Loans1 0% 20% 40% 60% 80% 100% CMA BOKF KEY FITB STI HBAN RF SNV C&I Commercial RE All Other At 6/30/13 ● Source: SNL Financial ● 1Excludes BBT, FHN, MTB, & ZION as amounts were not available as of 8/7/13 ●2Excludes BOKF, FHN, FITB, & HBAN as amounts were not available as of 8/7/13. NPLs = the sum of nonaccruing and renegotiated loans Relatively Stable Net Interest Income:Contribution from Accretion Continues to Decline 28 Chart: $ in millions ● Table: 2Q13 compared to 1Q13 ● 1Outlook as of 7/16/13 Net Interest Income Net interest income and rate NIM: $416MM 1Q13 2.88% +4MM 1 more day in quarter -- +2MM Loan growth -- +1MM Lower funding costs +0.01 - 4MM Accretion on acquired portfolio -0.03 - 4MM Loan portfolio dynamics -0.02 - 1MM Securities portfolio dynamics -- -- Excess liquidity -0.01 $414MM 2Q13 2.83% FY13 Expected Accretion1 of $25MM - $30MM 417 412 411 405 407 18 15 13 11 7 435 427 424 416 414 3.10 2.96 2.87 2.88 2.83 2Q12 3Q12 4Q12 1Q13 2Q13 Accretion NIM
Focus on Growing Noninterest Income 29 $ in millions Card Fees Service Charges on Deposit Accounts Fiduciary Income Letter of Credit Fees Fee Income Growth Opportunities Challenges to Fee Income 52 56 55 51 53 53 53 53 52 52 208 214 108 2011 2012 2013 1Q 2Q3Q 4Q+4% 39 38 43 39 39 44 37 39 36 42 151 158 87 2011 2012 2013 1Q 2Q3Q 4Q+5% 18 17 16 18 18 16 19 19 18 17 73 71 32 2011 2012 2013 1Q 2Q3Q 4Q-3% 15 11 12 15 12 13 17 12 11 12 58 47 25 2011 2012 2013 1Q 2Q3Q 4Q-20% Focus on Growing Noninterest Income 30 1Source: SNL Financial. Noninterest Income = Total noninterest revenues, excluding only gains from securities transactions (if reported) and nonrecurring items ● 2Network interchange fees are included in card fees and other noninterest income on the income statement 5.1% 4.6% 4.5% 2.5% 1.9% 0.6% -0.3 % -0.6 % -1.4 % -2.2 % -4.5 % -8.6 % FITB BB T CMA ZIO N MTB RF ST I SNV HBA N KEY BOK F FHN Noninterest Income Growth1(2Q13 vs. 1Q13) Average: 0.1% Collaboration Opportunity: Strategic initiative focused on referral opportunities between our business lines• Personal Banking to Small Business• Middle Market to Wealth Management Gaining momentum and exceeding goals Network Interchange Fees2: 1H13 debit card network interchange fees were about $11MM Timing and ultimate impact from July court ruling on Durbin unknown
426 424 425 416 416 434 449 427 416 416 2Q12 3Q12 4Q12 1Q13 2Q13 Restructuring Disciplined Expense Management 31 $4,617 $5,010 $5,288 $5,395 $5,589 $5,850 $5,902 $5,964 $5,997 $6,548 $7,050 HBAN RF ZION BBT SNV FHN BOKF KEY FITB STI CMA Noninterest Expense -4% At 6/30/13 ● Left chart: $ in millions ● Right chart: $ in thousands. Source: SNL Financial. Excludes MTB as amounts were not available as of 8/7/13 Assets Per Employee Compared to Peers Efficiency improvements• Vendor consolidation• Selective outsourcing• Leverage technology Assisting in offsetting headwinds• Low rate environment• Pension• Healthcare• Regulatory 83% 59% 34% 36% 62% 91% 57% 96% 104% 86% 143% 47% 79% 77% 72% 35% 34% 34% 34% 45% 56% 53% 47% 43% 43% 57% 19% 21% 24% 22% '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '11 '12 1Q13 2Q13 Shares RepurchasedDividend Historical Average Shareholder Payout of 77% of annual earnings 32 Continued Strong Shareholder Payout 2013 Capital Plan target1: Up to $288MM share repurchase over four quarters (2Q13 through 1Q14) 2Q13 1.9MM shares repurchased ($72MM) 1Outlook as of 7/16/13
Efficiency Ratio and ROA Goals 33 Goal as of 8/9/13 Efficiency Ratio Return on Average Assets (ROA) 59% 66% 69% 67% 72% 69% 68% 66% 2007 2008 2009 2010 2011 2012 1Q13 2Q13 20 year average: 59% 1.17% 0.33% 0.03% 0.50% 0.69% 0.83% 0.84% 0.90% 2007 2008 2009 2010 2011 2012 1Q13 2Q13 20 year average: 1.18% Long-TermGoal: Above 1.30% Long-TermGoal: Below 60% 34 2012 Long-Term Goal1 Efficiency Ratio:69% Efficiency Ratio:<60% Expense Growth of 0 - 2% Fee Income Growth of 2 - 4% Loan Growth of 3 - 5% • Increase cross-sell penetration • Collaboration between businesses Focused growth:• Target markets • Allocation of resources to faster growing businesses • Relationship driven • Normalized rates not necessary to reach long-term goal • Continued focus on operating leverage 1Goal as of 8/9/13 ≈1% ≈2% Normal (≈3.5%) Fed Funds Factors Expected to Drive Long-Term Efficiency Ratio Goal
Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch DBRS BB&T A- A2 A+ A (high) Comerica A- A3 A A BOK Financial A- A2 A A (low) M&T Bank A- A3 A- A (low) KeyCorp BBB+ Baa1 A- BBB (high) SunTrust BBB Baa1 BBB+ A (low) Fifth Third BBB Baa1 A- A (low) Huntington BBB Baa1 BBB+ BBB First Horizon National Corp BBB- Baa2 BBB- Regions Financial BBB- Ba1 BBB- BBB Zions Bancorporation BBB- Ba1 BBB- BBB (low) Synovus Financial Corp BB- B1 BB Wells Fargo & Company A+ A2 AA- AA U.S. Bancorp A+ A1 AA- AA JP Morgan A A2 A+ A (high) PNC Financial Services Group A- A3 A+ A (high) Bank of America A- Baa2 A A Holding Company Debt Ratings 35 Pee r Ba nks Larg e Ba nks As of 8/5/13 ● Source: SNL Financial ● Debt Ratings are not a recommendation to buy, sell, or hold securities Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ in millions) 36 6/30/13 3/31/13 12/31/12 9/30/12 6/30/12 Tier 1 and Tier 1 common capital1Risk-weighted assets1Tier 1 and Tier 1 common capital ratio 6,80065,22010.43% 6,74865,09910.37% 6,70566,11510.14% 6,68564,48610.37% 6,67664,24410.39% Total shareholders’ equityLess: GoodwillLess: Other intangible assets $6,91163520 $6,98863521 $6,94263522 $7,08463525 $7,02863528 Tangible common equity $6,256 $6,332 $6,285 $6,424 $6,365Total assetsLess: GoodwillLess: Other intangible assets $62,94763520 $64,88563521 $65,06963522 $63,00063525 $62,38063528Tangible assets $62,292 $64,229 $64,412 $62,340 $61,717Tangible common equity ratio 10.04% 9.86% 9.76% 10.30% 10.31% The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets.The Corporation believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.1Tier 1 Capital and risk-weighted assets as defined and calculated in accordance with regulation.
Supplemental Financial DataTier 1 Common Equity under Basel III ($ in millions) 37 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 Basel III Tier 1 common capital ratio further adjusts Tier 1 common capital and risk-weighted assets to account for the final rule approved by U.S. banking regulators in July 2013 for the U.S. adoption of the Basel III regulatory capital framework. The final Basel III capital rules are effective January 1, 2015 for banking organizations subject to the standardized approach. 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.1Tier 1 Capital and risk-weighted assets as defined in accordance with regulation.2Estimated ratios based on the standardized approach in the final rule for the U.S. adoption of the Basel III regulatory capital framework and assuming the election to exclude most elements of AOCI. 3Estimated ratios based on the standardized approach in the final Basel III capital rules, assuming no election to exclude most elements of AOCI. Basel III Tier 1 Common Capital Ratio 6/30/13 3/31/13 12/31/12 9/30/12 6/30/12Tier 1 common capitalBasel III adjustments2 $6,800-- $6,748(1) $6,705(39) $6,685(17) $6,676(35) Basel III Tier 1 common capital2Basel III adjustments3 $6,800(537) $6,747(409) $6,666(413) $6,668(253) $6,641(301) Basel III Tier 1 common capital3 $6,263 $6,338 $6,253 $6,415 $6,340 Risk-weighted assets1Basel III adjustments2 $65,2202,091 $65,0991,996 $66,1151,854 $64,4862,313 $64,2442,329Basel III risk-weighted assets2 $67,311 $67,095 $67,969 $66,799 $66,573 Tier 1 common capital ratioBasel III Tier 1 common capital ratio2Basel III Tier 1 common capital ratio3 10.4%10.1% 9.3% 10.4%10.1% 9.4% 10.1%9.8% 9.2% 10.4%10.0% 9.6% 10.4%10.0% 9.5%