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Comerica Incorporated Goldman Sachs Financial Services ConferenceDecember 9, 2015 J. Patrick FaubionExecutive Vice President, Business Bank Ralph W. Babb, Jr.Chairman and Chief Executive Officer Karen ParkhillVice Chairman and Chief Financial Officer 2 Safe Harbor Statement 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,” “projects,” “models” and variations of such words andsimilar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as theyrelate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated onthe beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of thispresentation and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives ofComerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures ofeconomic 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 anduncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual resultscould differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, politicalor industry conditions; changes in monetary and fiscal policies, including changes in interest rates; changes in regulation or oversight; Comerica'sability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or otherchanges in the businesses or industries of Comerica's customers, including the energy industry; operational difficulties, failure of technologyinfrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; factorsimpacting noninterest expenses which are beyond Comerica's control; changes in the financial markets, including fluctuations in interest rates andtheir impact on deposit pricing; changes in Comerica's credit rating; unfavorable developments concerning credit quality; the interdependence offinancial service companies; the implementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology toefficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financialinstitutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; management's ability tomaintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatoryproceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; theeffects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accountingstandards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. Fordiscussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and ExchangeCommission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the yearended December 31, 2014. 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 aremade. For any forward-looking statements made in this presentation or in any documents, Comerica claims the protection of the safe harbor forforward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
3 Comerica: A Brief Overview At 9/30/15 ● 1Consists of Other Markets ($7.5B) & Finance/ Other ($0.5B). Comerica Strengths Strong capital position,Prudent credit underwriting CONSERVATIVE Complemented by Retail Bank and Wealth Management PRIMARILY A BUSINESS BANK Strong presence in Texas, California, & Michigan ATTRACTIVE FOOTPRINT Products & services of a large bank with the culture of a community bank NIMBLE SIZE$71B in Assets Founded 166 years ago LONG HISTORY Trusted Advisor approach RELATIONSHIP BANKING STRATEGY Loans by Geography($ in billons; 3Q15 average) California$16.8 34% Other Markets$8.0 16%Michigan$13.2 27% Texas$11.0 23% Michigan$21.9 37% Deposits by Geography($ in billions; 3Q15 average) California$18.4 31% Texas$10.818% Other1$8.014% Total $49.0 Total $59.1 43.8 49.5 51.7 54.8 57.9 010 2030 4050 60 2011 2012 2013 2014 YTD 3Q15 Other TX CA MI 4 Diverse Geographic FootprintAssists in driving consistent, steady growth At 9/30/15 ● 1Includes Sterling Bancshares from July 2011 acquisition. ● 2Source: Comerica Economics Average Deposits($ in billions) 40.1 43.3 44.4 46.6 48.7 0 10 20 30 40 50 2011 2012 2013 2014 YTD 3Q15 Other TX CA MI Average Loans ($ in billions) Florida7 Michigan 214 Arizona19 Texas133 California103 U.S. Banking Centers by Location 1 1 Total 476 Comerica Economic Activity Indices2: MI index stable at 127.5 in September, following five straight months of growth CA index declines slightly to 119.4 in September; easing with Tech stocks TX index increased to 95.5 in September, first expansion since Oct 2014; remains well above cyclical low of 72.8
~10% ~20% ~40% ~30% 5 Energy Performing as ExpectedContinued decline in loans; losses expected to be manageable At 9/30/15 ● 1Includes ~$3.2B of loans in Energy business line & $614MM loans in other businesses that have a sizable portion of their revenue related to energy or could be otherwise disproportionately negatively impacted by prolonged energy prices. ● 2The bank's entire allowance is available to cover any & all losses. The allocation of allowance for energy loans reflects our robust allowance methodology which contains quantitative and qualitative components.● 3Outlook as of 12/7/15 Natural Gas 13% Oil40% Mixed17% 454 535 463 481566 535 530 513 2,539 2,496 2,316 2,249 3,559 3,566 3,309 3,243 4Q14 1Q15 2Q15 3Q15 Midstream Services Exploration & Production Energy Business Line Loans ($ in millions; Period-end) Exploration & Production 69% Midstream15% Services16% Natural Gas 11% Oil40% Mixed18% Diverse Customer Base(Based on period-end outstandings) Proprietary Services & Manufacturing Products Wellsite Service & Equipment Early Stage Services & Commodity Products Pipeline, Refinery & Industrial Uses Services $513MMExploration Production Energy1 Credit Metrics Energy reserve2 >3% of Energy loans Nonaccruals $126MM (3% of Energy loans) Criticized loans increased $480MM to $1.1B• Prudently downgrading loans based on distressed cash flows due to fall in energy prices• Overall, collateral coverage remains strong Losses expected to be manageable3 Early Stage~15% Growth~35% Late Stage~10% Leveraged Finance~5% 6 Growth in Technology and Life Sciences20+ Years experience provides competitive advantage At 9/30/15 ● 1TLS net charge-offs to avg. TLS loans 0.3 0.3 0.4 0.6 1.0 1.3 1.8 2.0 2.5 3.1 2011 2012 2013 2014 YTD 3Q15 Equity Fund Services Technology & Life Sciences Avg. Loans($ in billions) Customer Segment Overview(based on period-end loans) Strong relationships with top-tier investors Granular portfolio: >750 customers (including >100 customers in Equity Fund Services) Closely monitor cash balances Numerous verticals, many with concentration limits• Ad tech ● Cyber security• Software ● Life sciences Net Charge-offs1(In basis points) (27) 49 - 26 69 168 24 80 57 61 89 100 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 YTD 3Q 15 Equity Fund Services~35% Total $3.3B
3.8 4.4 5.3 6.4 6.9 01 23 45 67 2011 2012 2013 2014 3Q15 Other TX CA MI Commitments($ in billions; Based on period-end) 7 Growing Commercial Real Estate Line of BusinessLong history of working with well established developers At 9/30/15 ●1Excludes CRE line of business loans not secured by real estate. 4.4 4.1 3.7 4.1 4.3 0 1 2 3 4 5 2011 2012 2013 2014 YTD 3Q15 Other TX CA MI Average Loans($ in billions) Multifamily $1,66146% Retail $39411% Commercial $3339% Office$2908% Single Family $2648% Multi-Use $1434% Land Carry $2798% Other $2216% CRE by Property Type1($ in millions; Period-end, based on location of property) Total$3,585 12.8 14.5 15.6 16.5 17.4 2011 2012 2013 2014 YTD 2015 8 Opportunities in Specialty BusinessesDeep experience, consistent reliable approach At 9/30/15 ● 1Source: Moody’s Analytics; SAAR = seasonally adjusted annual rates ● 2Average through 11/30. ● 3Source: Mortgage Bankers Association (MBA); YTD 3Q15 as of 11/17/15 forecast. 0.9 1.8 1.6 1.3 1.9 2011 2012 2013 2014 YTD 3Q15 Mortgage Banker Finance Avg. Loans($ in billions) National Dealer Services Avg. Loans($ in billions) 1.6 2.2 2.9 3.3 3.5 3.5 4.3 5.0 5.6 5.9 2011 2012 2013 2014 YTD 3Q15 Floor Plan U.S. Auto Sales SAAR1(in millions) MBA Mortgage Originations3($ in billions) 316 438 439 281 369 2011 2012 2013 2014 YTD 3Q15 2
Average Deposits($ in billions) 9 Fourth Quarter Update 4Q15 average balances though 11/30/15 are preliminary and subject to change. ● 1Comparisons to 3Q15 ● 2Through 11/30 ● 3Utilization of commercial commitments as a percentage of total commercial commitments at period-end. Average Loans($ in billions) 55.2 57.8 57.0 57.4 59.1 59.4 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15Thru 11/30 Loans Average loan growth of over 4% YTD22015 vs. FY14 Outlook for relatively stable average loan growth in 4Q15 vs. 3Q15 remains unchanged Average 4Q15 QTD1: • Commercial Real Estate positive trend continues• National Dealer seasonally higher• Mortgage Banker seasonally lower• General Middle Market, Energy & Corporate Banking decline • Utilization3 stable at 50% Deposits Increased slightly, after strong, broad-based average deposit growth in 3Q15 October and November Trends1 47.2 47.4 48.2 48.8 49.0 48.4 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15Thru 11/30 43.8 49.5 51.7 54.8 57.9 0.33 0.25 0.19 0.15 0.14 2011 2012 2013 2014 YTD 3Q15 Deposit Rates 10 Maintain Strong Deposit BaseLow cost, relationship-oriented At 9/30/15 ● 1Interest costs on interest-bearing deposits. ● 2Source: SNL Financial ● 33Q15 interest incurred on deposits as a percentage of average deposits. 28% 29% 30% 31 % 35% 35% 37% 39 % 39% 43 % 44% 49 % STI FHN BBT HBA N FITB R F KEY MTB BOK F CFR ZIO N CMA Highest Noninterest-Bearing as aPercent of Total Deposits2(Period-end) 34 26 24 24 22 21 18 17 17 14 13 6 BOK F FITB BB T KEY HBA N STI ZIO N FHN RF CMA MTB CFR One of the Lowest Cost of Deposits2,3(In basis points) Strong Deposit Base($ in billions; Average) 1
115 116 128 133 151 158 171 180 142 2011 2012 2013 2014 YTD 2015 YTD 3Q 11 Growth Opportunities in Fee BusinessesFocus on cross-sell At 9/30/15 22 25 27 31 30 34 37 42 32 2011 2012 2013 2014 YTD 2015 YTD 3Q Growing Commercial Card Fees ($ in millions) Increasing cross-sell of Wealth Management services to business owners Growing Professional Trust Alliance • 17 alliance partners• 14 offices throughout U.S. Fiduciary Income ($ in millions) Expansion of card programs• Commercial• Merchant • Prepaid Generating fees & valuable deposits Robust pipeline 2016 Expense View2($ in millions) 40 ~48 ~20 2014 2015 2016 9,468 9,035 8,948 8,876 8,941 $8.9 $10.3 $10.7 $11.4 $11.9 2011 2012 2013 2014 YTD3Q15 Employees Avg. Loans + Deposits/Employee 12 Expenses Remain Well ControlledFocus on efficiency while facing headwinds At 9/30/15 ● 1Number of employees – full time equivalent ● 2Outlook as of 12/7/15. ● 3Technology projects & regulatory expense related to industry compliance, regulatory demands & cybersecurity. Technology projects expense excludes maintenance costs & includes hardware/software depreciation and associated direct labor costs. ● 4Includes net periodic cost related to postretirement benefit plan. ● 5Estimates based on current level of long-term rates. Driving Efficiency While Growing Loans & Deposits($ in millions) 1 Face typical inflationary pressures (merit raises, occupancy, etc.) Increased outside processing in line with growing revenue Growing IT spend for hardware & software FY15 benefitted from $33MM legal reserve reversal 90 ~130 ~160 2014 2015 2016 Continuous review of processes in order to maximize efficiency Judiciously negotiate contract renewals Leverage use of technology Reallocate resources to faster growing businesses Technology Projects & Regulatory Expense3 Pension4 5
13 Maintaining Asset Sensitive PositionPoised to benefit when rates rise At 9/30/15 ● 1Period-end loan balances; includes Sterling Bancshares from July 2011 acquisition. ● 2Growth calculated for YoY average balances; includes Sterling Bancshares from July 2011 acquisition. ● 3For methodology see the Company’s Forms 10-Q & 10-K for the respective periods, as filed with the SEC. Estimates are based on simulation modeling analysis.● 4Outlook as of 12/7/15 ● 5Est. duration 3.6 years at 9/30/15; Excludes auction rate securities (ARS). Deposit Growth in Excess of Loan Growth2(In percentage points) Over next few months, deploy portion of excess reserves into higher yielding, high quality securities Carefully manage duration5 Maintain asset sensitivity (while tempering its continued rise) 8.5 6.9 6.8 7.3 6.4 10.3 9.7 9.6 10.2 9.3 23.9 29.5 29.1 31.1 33.3 42.7 46.1 45.5 48.6 49.0 2011 2012 2013 2014 3Q15 Fixed Prime LIBOR Growing Loans Tied to Floating Rate1($ in billions; Period-end) -20 24 68 1012 14 2011 2012 2013 2014 YTD 2015 Loans Deposits ~160 ~180 ~210 ~220 ~220 4Q11 4Q12 4Q13 4Q14 3Q15 Standard Model3Estimated Increase to Net Interest Income($ in millions) Expect to add up to $2-3B in Securities4 -7-3 15 913 1721 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 200 5 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 201 4 YTD 201 5 CMA Peer Average 14 19% 21% 23% 24% 28% 28% 58% 53% 42% 43%47% 79% 76% 66% 71% 2011 2012 2013 2014 3Q15 Dividends Equity Repurchases Active Capital Management 1Outlook as of 12/7/15 ● 2See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures. ●3Shares & warrants repurchased under equity repurchase program. ● 4Source: SNL Shareholder Payout2015 Capital Plan Target1: Up to $393MM equity repurchases over five quarters (2Q15 through 2Q16) 4Q15 targeting moderate increase from $59MM repurchased in each of 2Q15 & 3Q15 Pace of buyback linked to financial performance & balance sheet movement Pre-cycle ROE above Peers $31.40 $33.36 $35.64 $37.72 $39.36 2011 2012 2013 2014 3Q15 Tangible Book Value Per Share2 4 3
15 Well Positioned for the Future As of 9/30/15 ● 1Analysis based on non-parallel gradual increase in interest rates over 12 months. For methodology see the Company’s Form 10-Q, as filed with the SEC. GROWING LOANS & FEE INCOME CONTROLLING EXPENSES MAINTAINING ASSET QUALITY MANAGING CAPITAL POSITIONED FOR RISING RATES • Positioned in faster growing markets and industries• Focus on cross-sell to drive fee income • Continued tight expense control while making necessary investments • Strong Capital base; Basel III Common Equity Tier 1 Capital: 10.51%• Continue share buyback; Increased dividend in 3Q15 • Strong credit culture leads to solid credit metrics• Weathered cycle well relative to peers • 200 bps increase in rates expected to result in >10% increase in net interest income1 Appendix
17 Financial Summary $ in millions, except per share data ● n/a – not applicable ● 1Including $48MM & $44MM impact of accounting presentation of a card program in 3Q15 & 2Q15, respectively. ● 2Reflects litigation reserves releases of $3MM, $30MM & $2MM in 3Q15, 2Q15 & 3Q14, respectively. ● 3Basel III capital rules (standardized approach) became effective for Comerica on 1/1/15. The ratio reflects transitional treatment for certain regulatory deductions and adjustments. Capital ratios for prior periods are based on Basel I rules. ● 4See slide #31 for a reconciliation of non-GAAP financial measures. 3Q15 2Q15 3Q14 Diluted income per common share $0.74 $0.73 $0.82 Net interest income $422 $421 $414 Provision for credit losses 26 47 5 Noninterest income1 264 261 215 Noninterest expenses1,2 461 436 397 Net income 136 135 154 Total average loans $48,972 $48,833 $47,159 Total average deposits 59,140 57,398 55,163 Basel III common equity Tier 1 capital ratio3 10.51% 10.40% n/a Tier 1 common capital ratio3,4 n/a n/a 10.59% Average diluted shares (millions) 181 182 185 18 Third Quarter 2015 Results $ in millions, except per share data ● n/a – not applicable ● 3Q15 compared to 2Q15 ● 1Including the $48MM & $44MM impact of accounting presentation of a card program in 3Q15 & 2Q15, respectively. ● 2EPS based on diluted income per share. ● 3See slide #31 for a reconciliation of non-GAAP financial measures. ● 43Q15 repurchases under the equity repurchase program. 3Q15 Change From2Q15 3Q14Total average loans $48,972 $ 139 $1,813 Total average deposits 59,140 1,742 3,977 Net interest income $422 $ 1 $ 8 Provision for credit losses 26 (21) 21 Noninterest income1 264 3 49 Noninterest expenses1 461 25 64 Net income 136 1 (18) Earnings per share (EPS)2 $0.74 $0.01 $(0.08) Tangible Book Value Per Share3 $39.36 $0.83 $1.71 Equity repurchases4 1.2MM shares or $59MM Key QoQ Performance Drivers Pace of loan growth moderated, as expected, while deposits increased 3% Net interest income stable Provision reflected modest reserve build & increase in net charge-offs to 19 bps Noninterest income increase included growth in card fees Expenses remained well controlled & reflect litigation reserve release ($3MM in 3Q15 & $30MM in 2Q15) Equity repurchases4, combined with dividends of $0.21 per share, returned $96 million or 71% to shareholders
19 Loans by Business and Market Average $ in billions ● 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets. 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 By Line of Business 3Q15 2Q15 3Q14 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $13.33.36.00.73.30.9 $13.53.46.00.63.00.9 $13.53.35.50.62.60.9 Total Middle Market $27.5 $27.4 $26.4 Corporate BankingUS BankingInternational 2.41.7 2.61.8 2.81.8 Mortgage Banker Finance 2.1 2.1 1.6 Commercial Real Estate 4.4 4.2 4.2 BUSINESS BANK $38.1 $38.1 $36.8 Small Business 4.0 3.9 3.8 Retail Banking 1.9 1.9 1.8 RETAIL BANK $5.9 $5.8 $5.6 Private Banking 5.0 4.9 4.8 WEALTH MANAGEMENT $5.0 $4.9 $4.8 TOTAL $49.0 $48.8 $47.2 By Market 3Q15 2Q15 3Q14 Michigan $13.2 $13.3 $13.3 California 16.8 16.4 15.5 Texas 11.0 11.2 11.1 Other Markets1 8.0 7.9 7.3 TOTAL $49.0 $48.8 $47.2 20 Deposits by Business and Market Average $ in billions ● 1Other Markets includes Florida, Arizona, the International Finance Division and businesses that have a significant presence outside of the three primary geographic markets. ● 2Finance/ Other includes items not directly associated with the geographic markets or the three major business segments. 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 By Line of Business 3Q15 2Q15 3Q14 Middle MarketGeneralEnergyNational Dealer ServicesEntertainmentTech. & Life SciencesEnvironmental Services $16.20.60.20.16.70.2 $15.70.70.20.16.20.2 $15.30.50.20.15.90.1 Total Middle Market $24.0 23.1 $22.1 Corporate BankingUS BankingInternational 2.72.2 2.62.0 2.71.8 Mortgage Banker Finance 0.7 0.6 0.5 Commercial Real Estate 1.8 1.9 1.7 BUSINESS BANK $31.4 $30.2 $28.8 Small Business 3.1 2.9 2.9 Retail Banking 19.9 19.8 19.2 RETAIL BANK $23.0 $22.7 $22.1 Private Banking 4.2 4.1 3.9 WEALTH MANAGEMENT $4.2 $4.1 $3.9 Finance/ Other2 0.5 0.4 0.4 TOTAL $59.1 $57.4 $55.2 By Market 3Q15 2Q15 3Q14 Michigan $21.9 $21.7 $21.2 California 18.4 17.3 16.4 Texas 10.8 11.0 10.6 Other Markets1 7.5 7.0 6.6 Finance/ Other2 0.5 0.4 0.4 TOTAL $59.1 $57.4 $55.2
21 Securities Portfolio GrewPositioned for LCR compliance At 9/30/15 ● LCR: Liquidity Coverage Ratio ● 1Estimated as of 9/30/15. Excludes auction rate securities (ARS). ● 2Net unrealized pre-tax gain on the available-for-sale (AFS) portfolio. ● 3Net unamortized premium on the MBS portfolio. Total average securities portfolio increased $300MM Purchased ~$200MM in Treasury Securities & ~$150MM MBS in 3Q15 • Subsequent to issuing $350MM in subordinated bank debt & $175MM in senior bank debt Duration of 3.6 years1 • Extends to 4.5 years under a 200 bps instantaneous rate increase1 Net unrealized pre-tax gain of $127MM2 Net unamortized premium of $40MM3 GNMA ~35% of MBS portfolio 9.0 9.0 9.1 9.1 9.1 9.2 9.4 9.4 9.4 9.9 9.9 10.2 10.2 10.6 2.22 2.19 2.16 2.13 2.11 3Q14 4Q14 1Q15 2Q15 3Q15 2Q15 3Q15 Other (Incl. Treasury Securities)Mortgage-backed Securities (MBS)Securities Yields Securities Portfolio($ in billions) Average Balances Period-end 22 Net Interest Income StableNIM compression mainly due to increased Fed deposits 13Q15 compared to 2Q15 ● 2For standard model assumptions see slide #23. Estimate is based on simulation modeling analysis. 414 415 413 421 422 2.67 2.57 2.64 2.65 2.54 3Q14 4Q14 1Q15 2Q15 3Q15 NIM Net Interest Income($ in millions) +200 bps rate rise = ~$220MM2 Estimated increase to net interest income over 12 months Net Interest Income and Rate NIM1 $421MM 2Q15 2.65% +2 Loan impacts:+$4MM One add’l day in 3Q15+$1MM loan growth- $3MM lower yields -0.02 -3 Higher debt expense -0.02 +1 Higher securities balance at lower yield -0.01 +1 Higher balances at Fed -0.06 $422MM 3Q15 2.54%
23 Interest Rate SensitivityRemain well positioned for rising rates At 9/30/15 ● For methodology see the Company’s Form 10-Q, as filed with the SEC. Estimates are based on simulation modeling analysis. Estimated Net Interest Income: Annual (12 month) SensitivitiesBased on Various AssumptionsAdditional Scenarios are Relative to 3Q15 Standard Model($ in millions) ~110 ~190 ~200 ~210 ~220 ~260 ~330 Up 100bps Addl. $3BDepositDecline Addl.20%Increasein Beta Addl. $1BDepositDecline 3Q15StandardModel Addl.~3%LoanGrowth Up 300bps 0.1 Interest Rates 200 bps gradual, non-parallel rise Loan Balances Modest increase Deposit Balances Moderate decrease Deposit Pricing (Beta) Historical price movements with short-term rates Securities Portfolio Increased for LCR compliance Loan Spreads Held at current levels MBS Prepayments Third-party projections and historical experience Hedging (Swaps) No additions modeled Standard Model Assumptions 3 1 8 18 23 3 1 7 15 19 3Q14 4Q14 1Q15 2Q15 3Q15 NCO Ratio 24 Credit Quality Remains StrongNet charge-offs well below normal at 19bps At 9/30/15 ● 1Criticized loans are consistent with regulatory defined Special Mention, Substandard, Doubtful & Loss loan classifications. ● 2This information includes all loans related to energy at 9/30/15, ~$3.2B of loans in our Energy business line & $614MM loans in other businesses that have a sizable portion of their revenue related to energy or could be otherwise disproportionately negatively impacted by prolonged low oil and gas prices. ● 3“Normal” estimates are based on internal historical analysis & management judgement. Net Loan Charge-offs($ in millions) (bps) Normal Net Charge-Offs ~40 bps3 329 273 266 349 357 2,094 1,893 2,067 2,361 2,898 4.4 3.9 4.2 4.7 5.9 3Q14 4Q14 1Q15 2Q15 3Q15 NALsCriticized as a % of Total Loans Criticized Loans1($ in millions) Normal Criticized Loans of ~8.5% of Total Loans3 635 635 640 668 670 1.7 2.1 2.2 1.7 1.7 3Q14 4Q14 1Q15 2Q15 3Q15 Allowance for LoanLosses as a % of NPL's Allowance for Credit Losses($ in millions) Provision decreased to $26MM• $2MM Allowance increase• $23MM NCO mainly Technology & Life Sciences & energy-related2 Inflows to nonaccrual $69MM • Down from $145MM in 2Q15 Nonaccruals stable at 0.7% of total loans• Increased $8MM with energy2 increase of $7MM to $126MM Criticized loans increased $537MM• Energy2 increased $480M to $1.1B
25 Noninterest Income Increased 3Q15 compared to 2Q15 ● 1Including impact of accounting presentation of a card program of $48MM in 3Q15 & $44MM in both 2Q15 & 1Q15. ● 2Impact of changes in interest rate curve on the credit spread of debt that is swapped from fixed to floating interest rate. 215 225 255 261 264 3Q14 4Q14 1Q15 2Q15 3Q15 Noninterest Income1($ in millions) Noninterest income increased $3MM + $3MM Card fees + $1MM Foreign Exchange + $1MM Brokerage - $1MM Fiduciary - Other noninterest income+ $4MM Hedge ineffectiveness income2+ $3MM Warrant related income- $5MM Deferred comp (offset in expenses)- $4MM Investment banking 26 Noninterest Expenses Reflect Tight Control 3Q15 compared to 2Q15 ● 1Including impact of accounting presentation of a card program of $48MM in 3Q15 & $44MM in both 2Q15 & 1Q15. Noninterest expenses increased $25MM + $27MM Litigation-related release (Reserve release of $3MM in 3Q15 & $30MM in 2Q15) + $ 2MM Occupancy + $ 2MM Software - $ 8MM Salaries & benefits expense - Deferred comp - Stock comp forfeiture- Staff insurance+ Technology-related contract labor+ 1 additional day 397 419 459 436 461 3Q14 4Q14 1Q15 2Q15 3Q15 Noninterest Expenses1($ in millions)
27 Shared National Credit (SNC) Relationships At 9/30/15 ● SNCs are not a line of business. The balances shown above are included in the line of business balances. ●SNCs are facilities greater than $20 million shared by three or more federally supervised financial institutions which are reviewed by regulatory authorities at the agent bank level. SNC relationships included in business line balances Approximately 797 borrowers Comerica is agent for approx. 20% Strategy: Pursue full relationships with ancillary business Adhere to same credit underwriting standards as rest of loan book Period-end Loans($ in billions) Commercial Real Estate$0.77% Corporate $2.423% General$2.222%National Dealer $0.44% Energy$3.030% Entertainment$0.33% Tech. & Life Sciences$0.33% Environmental Services0.3 3% Mortgage Banker$0.44% Small Bus & Per Fin Svc$0.1 1% = Total Middle Market (65%) Total$10.1 28 Government Card ProgramsGenerate valuable retail deposits At 9/30/15 ● 1Source: the Nilson Report July 2015, based on 2014 data ● 2Based on a 2014 survey conducted by KRC Research. ● 3Source: U.S. Department of the Treasury ● 4Source: Social Security Administration 720 948 1,221 1,444 1,669 2011 2012 2013 2014 YTD 3Q15 US Treasury ProgramState Card Programs Growing Average Noninterest-Bearing Deposits($ in millions) #2 prepaid card issuer in US1 State/ Local government benefit programs:• 49 distinct programs US Treasury DirectExpress Program:• Exclusive provider of prepaid debit cards since 2008; contract extended to January 2020• ~80k new accounts per month• 95% of Direct Express card holders report they are satisfied2• Eliminating monthly benefit checks, resulting in significant taxpayer savings3 # of Social Security Beneficiaries4(in millions) 25 30 35 40 45 50 55 60 1970 1975 1980 1985 1990 1995 2000 2005 2010 Key Facts
29 Funding and Maturity Profile At 9/30/15 ● 1Face value at maturity. Wholesale debt markets Federal Home Loan Bank of Dallas• $-0- outstanding • $5B borrowing capacity Brokered deposits• $-0-outstanding Fed funds/ Repo markets Multiple Funding Sources Debt Profile by Maturity1($ in millions) 650 500 350 1,425 2016 2017 2019 2020+ Subordinated NotesSenior Notes Equity$7.611% Interest-Bearing Deposits$30.143% Noninterest-Bearing Deposits$28.741% Wholesale Debt $3.25% Funding ProfileAt September 30, 2015($ in billions) Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch Cullen Frost A A2 -- BB&T A- A2 A+ BOK Financial A- A2 A Comerica A- A3 A M&T Bank A- A3 A KeyCorp BBB+ Baa1 A- Fifth Third BBB+ Baa1 A SunTrust BBB+ Baa1 A- Huntington BBB Baa1 A- Regions Financial BBB Baa3 BBB Zions Bancorporation BBB- Ba1 BBB- First Horizon National Corp BB+ Baa3 BBB- Wells Fargo & Company A A2 AA- U.S. Bancorp A+ A1 AA JP Morgan A- A3 A+ PNC Financial Services Group A- A3 A+ Bank of America BBB+ Baa1 A 30 Holding Company Debt Rating As of 12/4/15 ● Source: SNL Financial ● Debt Ratings are not a recommendation to buy, sell, or hold securities. Pee r Ba nks Larg e Ba nks
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 Basel I risk-based capital rules in effect through 12/31/14. Effective 1/1/15, 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.● 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. ● n/a – not applicable. ● 1Tier 1 Capital and risk-weighted assets as defined by Basel I risk-based capital rules. 9/30/15 6/30/15 12/31/14 9/30/14 12/31/13 12/31/12 12/31/11 Tier 1 and Tier 1 common capital1Risk-weighted assets1Tier 1 and Tier 1 common capital ratio n/an/an/a n/an/an/a 7,16968,26910.50% 7,10567,10610.59% 6,89564,82510.64% 6,70566,11510.14% Common shareholders’ equityLess: GoodwillLess: Other intangible assets $7,62263514 $7,52363515 $7,40263515 $7,43363515 $7,15063517 $6,93963522 $6,86563532 Tangible common equity 6,973 6,873 $6,752 $6,783 $6,498 $6,282 $6,198 Total assetsLess: GoodwillLess: Other intangible assets $71,01263514 $69,94563515 $69,18663515 $68,88363515 $65,22463517 $65,06663522 $61,00563532 Tangible assets 70,363 69,295 $68,536 $68,233 $64,572 $64,409 $60,338Common equity ratio 10.73% 10.76% 10.70% 10.79% 10.97% 10.67% 11.26%Tangible common equity ratio 9.91 9.92 9.85 9.94 10.07 9.76 10.27 Common shareholders’ equity $7,622 $7,523 $7,402 $7,433 $7,150 $6,939 $6,865Tangible common equity 6,973 6,873 $6,752 $6,783 $6,498 $6,282 $6,198Shares of common stock outstanding (in millions) 177 178 179 180 182 188 197 Common shareholders’ equity per share of common stock $43.02 $42.18 $41.35 $41.26 $39.22 $36.86 $34.79 Tangible common equity per share of common stock 39.36 38.53 37.72 37.65 35.64 33.36 31.40 31