COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - COMERICA INC /NEW/	cma-20180331ex992.htm
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COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION,

$1.59 PER SHARE

First Quarter 2018 Adjusted Net Income of $271 Million, $1.54 Per Share

Rate Increases to Date Expected to Add $205 Million to $215 Million to 2018 Net Interest Income¹

Prudent Pricing as Interest Rates Rise, Expense Control and Strong Credit Quality Help Drive Return on Common Shareholders' Equity to 14 Percent

DALLAS/April 17, 2018 -- Comerica Incorporated (NYSE:CMA) today reported first quarter earnings of $281 million, or $1.59 per share. Adjusted net income was $271 million or $1.54 per share, after excluding restructuring charges, tax benefits from employee stock transactions and a small deferred tax adjustment.

“Our relationship banking strategy is serving us well. It is helping us prudently manage loan and deposit pricing as interest rates have increased, as well as maintain strong credit metrics. This has resulted in a significant increase in our returns and helped drive our efficiency ratio to 56 percent,” said Ralph W. Babb, Jr., chairman and chief executive officer. “Our pipeline is strong, and we expect loan growth to return with typical seasonality in the second quarter. We believe the continued achievement of our GEAR Up initiatives will assist us in growing revenue and controlling expenses. We remain well positioned to benefit from additional rate increases, favorable changes in regulation and economic growth.”



(dollar amounts in millions, except per share data)	1st Qtr '18			4th Qtr '17			1st Qtr '17
Net interest income	$	549		$	545		$	470
Provision for credit losses	12			17			16
Noninterest income	244			285			271
Noninterest expenses	446			483			457
Pre-tax income	335			330			268
Provision for income taxes	54			218			66
Net income	$	281		$	112		$	202

Diluted income per common share	1.59			0.63			1.11
Net interest margin	3.41		%	3.27		%	2.85		%
Efficiency ratio (a)	56.33			58.14			61.71
Common equity Tier 1 capital ratio (b)	11.96			11.68			11.55
Common equity ratio	11.06			11.13			10.87


(a)	Noninterest expenses as a percentage of net interest income and noninterest income excluding net securities gains (losses).


(b)	March 31, 2018 ratio is estimated.

The following table reconciles items presented on an adjusted basis to facilitate trend analysis.



(dollar amounts in millions, except per share data)	1st Qtr '18			4th Qtr '17			1st Qtr '17
Earnings per share	$	1.59		$	0.63		$	1.11
Restructuring charges, net of tax	0.07			0.04			0.04
Deferred tax adjustment	(0.01		)	0.61			—
One-time employee bonus, net of tax	—			0.02			—
Tax benefits from employee stock transactions	(0.11		)	(0.02		)	(0.13		)
Adjusted earnings per share (a)	$	1.54		$	1.28		$	1.02

-Table continues on next page-

¹ Full-year 2018 benefit to net interest income over full-year 2017 resulting from the 2017 and first quarter 2018 rate increases. Estimated based on simulation modeling analysis. Refer to page F-29 of Comerica's 2017 Annual Report for further information.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION



(dollar amounts in millions, except per share data)	1st Qtr '18			4th Qtr '17			1st Qtr '17
Net income	$	281		$	112		$	202
Restructuring charges, net of tax	12			8			7
Deferred tax adjustment	(3		)	107			—
One-time employee bonus, net of tax	—			3			—
Tax benefits from employee stock transactions	(19		)	(4		)	(24		)
Adjusted net income (a)	$	271		$	226		$	185

Noninterest income	$	244		$	285		$	271
Proforma effect of adopting new accounting standard (b)	—			(34		)	(26		)
Adjusted noninterest income (a)	$	244		$	251		$	245

Noninterest expenses	$	446		$	483		$	457
Proforma effect of adopting new accounting standard (b)	—			(34		)	(26		)
Restructuring charges	(16		)	(13		)	(11		)
One-time employee bonus	—			(5		)	—
Adjusted noninterest expenses (a)	$	430		$	431		$	420

Return on Average Assets (ROA)	1.62		%	0.62		%	1.14		%
Adjusted ROA (a)	1.56			1.26			1.05
Return on Average Common Shareholders' Equity (ROE)	14.37			5.58			10.42
Adjusted ROE (a)	13.85			11.24			9.56
Efficiency ratio	56.33			58.14			61.71
Adjusted efficiency ratio (a)	54.32			54.23			58.79


(a)	See Reconciliation of Non-GAAP Financial Measures.


(b)	Adoption of new accounting standard for revenue recognition (Topic 606 - Revenue from Contracts with Customers), effective January 1, 2018, resulted in a change in presentation which records certain costs in the same category as the associated revenues. The effect of this change was to reduce both noninterest income and noninterest expenses by $35 million in the first quarter 2018.

First Quarter 2018 Compared to Fourth Quarter 2017

Average total loans decreased $512 million to $48.4 billion.


•	Largely attributed to a seasonal decrease in Mortgage Banker Finance and a decrease in Corporate Banking, partially offset by an increase in National Dealer Services.


•	Period end loans unchanged at $49.2 billion.

Average total deposits decreased $1.6 billion to $56.1 billion.


•	Driven by a $1.9 billion seasonal decrease in noninterest-bearing deposits.


•	Primarily reflected seasonal decreases in general Middle Market (driven by a decrease in Municipalities), Corporate Banking and Commercial Real Estate.


•	Period end deposits decreased $268 million to $57.6 billion.

Net interest income increased $4 million to $549 million.


•	Reflected the net benefit from increases in short-term rates, partially offset by two fewer days in the first quarter 2018.

Provision for credit losses decreased $5 million to $12 million, reflecting improvements in credit quality of the portfolio.


•	Net credit-related charge-offs remained low at 0.23 percent of average loans.


•	The allowance for loan losses was $698 million, or 1.42 percent of total loans.


•	Total criticized loans declined $111 million, including a $76 million decrease in nonperforming loans.

Adjusted noninterest income (see table above) decreased $7 million.


•	Primarily reflected a $4 million decrease in commercial lending fees, mostly due to a decrease in syndication fees, as well as smaller decreases in other categories.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION

Adjusted noninterest expenses (see table above) decreased $1 million.


•	Mostly due to decreases of $4 million in outside processing expense, adjusted for the impact of adoption of the new revenue accounting standard, and $3 million in advertising expense, as well as a business tax refund of $5 million, partially offset by a $7 million seasonal increase in salaries and benefits expense.


•	Pension costs pertaining to actuarial estimates, other than employee service costs, have been reclassified out of salaries and benefits expense to other noninterest expenses due to the adoption of a new retirement benefits accounting standard.

Provision for income taxes decreased $164 million to $54 million.


•	Related to the decrease in the statutory tax rate in the first quarter of 2018 and the $107 million charge to adjust deferred taxes in the fourth quarter of 2017, both resulting from the Tax Cuts and Jobs Act.


•	Additionally impacted by a $15 million increase in tax benefits from employee stock transactions.

Capital position remained solid at March 31, 2018.


•	Returned a total of $201 million to shareholders, including dividends and the repurchase of $149 million of common stock (1.6 million shares) under the equity repurchase program.

First Quarter 2018 Compared to First Quarter 2017

Prudent management of loan and deposit pricing and successful execution of GEAR Up initiatives resulted in an increase in pretax income of 25 percent.

Average total loans increased $521 million.


•	Excluding a $272 million decline in Energy, average loans increased $793 million, reflecting increases in National Dealer Services and Technology and Life Sciences.

Average total deposits decreased $1.7 billion.


•	Due to decreases of $1.1 billion in interest-bearing deposits and $590 million in noninterest-bearing deposits.


•	Primarily reflected decreases in general Middle Market (driven by a decrease in Municipalities), Corporate Banking and Commercial Real Estate.

Net interest income increased $79 million.


•	Driven by the net benefit from higher short-term rates.

Provision for credit losses decreased $4 million.


•	Total criticized loans declined $516 million.


•	Net credit-related charge-offs improved to 0.23 percent of average loans, compared to 0.28 percent of average loans.

Adjusted noninterest income (see table above) decreased $1 million.


•	Largely reflected a $3 million decrease in service charges on deposit accounts and smaller decreases in various other accounts, partially offset by increases of $7 million in card fees, adjusted for the impact of adoption of the new revenue accounting standard, and $3 million in fiduciary income.

Adjusted noninterest expense (see table above) increased $10 million.


•	Reflected an increase of $10 million in salaries and benefits expense, primarily driven by an increase of $6 million in stock compensation.

Provision for income taxes decreased $12 million.


•	Due to the decrease in the statutory tax rate in the first quarter of 2018, partially offset by an increase in pretax income and a $5 million decrease in tax benefits from employee stock transactions.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION

Net Interest Income



(dollar amounts in millions)	1st Qtr '18			4th Qtr '17			1st Qtr '17
Net interest income	$	549		$	545		$	470

Net interest margin	3.41		%	3.27		%	2.85		%

Selected average balances:
Total earning assets	$	65,012		$	66,167		$	66,648
Total loans	48,421			48,933			47,900
Total investment securities	11,911			12,155			12,198
Federal Reserve Bank deposits	4,315			4,771			6,249


Total deposits	56,090			57,641			57,779
Total noninterest-bearing deposits	29,869			31,780			30,459
Medium- and long-term debt	5,192			4,631			5,157

Net interest income increased $4 million to $549 million in the first quarter 2018, compared to the fourth quarter 2017.


•	Interest on loans increased $11 million, primarily reflecting the benefit from higher short-term rates (+$32 million), partially offset by two less days in the quarter (-$10 million), a decrease in average loan balances (-$5 million), other loan dynamics driven by a decrease in loan fees (-$4 million) and the impact of lower interest recoveries (-$2 million).


•	Interest on short-term investments increased $1 million, reflecting the increases in the Federal Funds rate and decreases in average balances.


•	Interest expense on deposits increased $3 million, primarily due to a deliberate and strategic approach to pricing.


•	Interest expense on debt increased $5 million, primarily due to higher short-term rates and an increase in average borrowings.

The net interest margin increased 14 basis points to 3.41 percent compared to the fourth quarter 2017, reflecting:


•	The loan benefit from higher short-term rates (+20 basis points), partially offset by the impact of lower interest recoveries (-1 basis point) and other loan dynamics (-2 basis points).


•	The benefit from a higher yield on short-term investments and a decrease in lower-yielding deposits with the Federal Reserve Bank (+3 basis points).


•	Higher costs on deposits (-3 basis points) and debt (-3 basis points).

The net benefit from higher rates was $27 million or 17 basis points.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION

Credit Quality

“Positive credit migration continued in the first quarter as criticized and nonaccrual loans decreased again,” said Babb. “We are not seeing any concerning trends, yet remain vigilant. While credit quality remains strong, we are maintaining a conservative stance regarding trade, economic and market conditions.”



(dollar amounts in millions)	1st Qtr '18			4th Qtr '17			1st Qtr '17
Credit-related charge-offs	$	37		$	29		$	44
Recoveries	9			13			11
Net credit-related charge-offs	28			16			33
Net credit-related charge-offs/Average total loans	0.23		%	0.13		%	0.28		%

Provision for credit losses	$	12		$	17		$	16

Nonperforming loans	334			410			529
Nonperforming assets (NPAs)	339			415			545
NPAs/Total loans and foreclosed property	0.69		%	0.84		%	1.13		%

Loans past due 90 days or more and still accruing	$	36		$	35		$	26

Allowance for loan losses	698			712			708
Allowance for credit losses on lending-related commitments (a)	40			42			46
Total allowance for credit losses	738			754			754

Allowance for loan losses/Period-end total loans	1.42		%	1.45		%	1.47		%
Allowance for loan losses/Nonperforming loans	209			173			134


(a)	Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.


•	The allowance for loan losses decreased to $698 million at March 31, 2018, or 1.42 percent of total loans, reflecting improvements in credit quality of the portfolio.

•

Criticized loans decreased $111 million to $2.1 billion at March 31, 2018, compared to $2.2 billion at December 31, 2017, including a $40 million decrease in Energy. Criticized loans as a percentage of total loans were 4.3 percent at March 31, 2018, compared to 4.5 percent at December 31, 2017. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.


•	Nonperforming loans decreased $76 million to $334 million at March 31, 2018, compared to $410 million at December 31, 2017. Nonperforming loans as a percentage of total loans decreased to 0.68 percent at March 31, 2018, compared to 0.83 percent at December 31, 2017.


•	Net charge-offs in the first quarter 2018 were $28 million with no net charge-offs in Energy.

Full-Year 2018 Outlook

For full-year 2018 compared to full-year 2017, management expects the following, assuming a continuation of the current economic and rate environment as well as approximately $270 million of benefits from the GEAR Up initiative:


•	Growth in average loans in line with real Gross Domestic Product (GDP), reflecting increases in most lines of business, led by general Middle Market, Technology and Life Sciences, National Dealer Services and Mortgage Banker Finance, while remaining stable in Energy and Corporate Banking.


•	Net interest income higher, reflecting rate increases and loan growth.


◦	Full-year benefits from the 2017 and first quarter 2018 rate increases of $205 million to $215 million.


◦	Elevated interest recoveries of $28 million in 2017 not expected to repeat in 2018.


•	Provision for credit losses of 15 to 25 basis points and net charge-offs to remain low, with continued solid performance of the overall portfolio.


•	Noninterest income higher by 4 percent (compared to full-year 2017 excluding the impact of accounting changes of $120 million and deferred compensation of $8 million) benefiting from the continued execution of GEAR Up opportunities helping to drive growth in treasury management income, card fees, brokerage fees and fiduciary income.


•	Noninterest expenses higher by 1 percent (compared to full-year 2017 excluding the impact of accounting changes of $120 million and restructuring of $45 million) reflecting an additional $50 million benefit from the GEAR Up initiative.

◦Restructuring charges of $47 million to $57 million.


◦	Continued higher technology expenditures and typical inflationary pressures.


◦	Efficiency ratio to continue to improve.


•	Income tax expense to be approximately 23 percent of pre-tax income, excluding any further tax impact from employee stock transactions.

Second Quarter 2018 Outlook

In addition to the 2018 outlook, management expects the following for second quarter 2018 compared to first quarter 2018:


•	Growth in average loans due to seasonal increases, particularly in Mortgage Banker Finance.


•	Net interest income higher, reflecting the full quarter impact from the first quarter 2018 rate increase and the return of loan growth.


•	Provision for credit losses higher.


•	Noninterest expenses modestly lower, primarily due to lower compensation expense.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION

Business Segments

Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. For a summary of business segment and geographic market quarterly results, see the Business Segment Financial Results and Market Segment Financial Results tables included later in this report. The financial results provided are based on the internal business unit and geographic market structures of Comerica and methodologies in effect at March 31, 2018. A discussion of business segment and geographic market year-to-date results will be included in Comerica's First Quarter 2018 Form 10-Q.

Conference Call and Webcast

Comerica will host a conference call to review first quarter 2018 financial results at 7 a.m. CT Tuesday, April 17, 2018. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 22791268). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can be accessed via Comerica's “Investor Relations” page at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

COMERICA REPORTS FIRST QUARTER 2018 NET INCOME OF $281 MILLION

Forward-looking Statements

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,” “continue,” “remain,” “maintain,” “on track,” “trend,” “objective,” “looks forward,” “projects,” “models” and variations of such words and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may” or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, including the GEAR Up initiative, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of the economic benefits of the GEAR Up initiative, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; operational difficulties, failure of technology infrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers; unfavorable developments concerning credit quality; changes in regulation or oversight; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; transitions away from LIBOR towards new interest rate benchmarks; reductions in Comerica's credit rating; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; changes in customer behavior; management's ability to maintain and expand customer relationships; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; the effects of recent tax reform and potential legislative, administrative or judicial changes or interpretations related to these and other tax regulations; any future strategic acquisitions or divestitures; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effects of terrorist activities and other hostilities; changes in accounting standards; the critical nature of Comerica's accounting policies and the volatility of Comerica’s stock price. Comerica cautions that the foregoing list of factors is not all-inclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 11 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2017. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.



Media Contact:	Investor Contacts:
Yolanda Y. Walker	Darlene P. Persons
(214) 462-4443	(214) 462-6831

	Chelsea R. Smith
	(214) 462-6834



CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries

	Three Months Ended
	March 31,			December 31,			March 31,
(in millions, except per share data)	2018			2017			2017
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income	$	1.59		$	0.63		$	1.11
Cash dividends declared	0.30			0.30			0.23

Average diluted shares (in thousands)	175,097			175,818			180,353
KEY RATIOS
Return on average common shareholders' equity	14.37		%	5.58		%	10.42		%
Return on average assets	1.62			0.62			1.14
Common equity tier 1 and tier 1 risk-based capital ratio (a)	11.96			11.68			11.55
Total risk-based capital ratio (a)	14.10			13.84			13.72
Leverage ratio (a)	11.23			10.89			10.67
Common equity ratio	11.06			11.13			10.87
Tangible common equity ratio (b)	10.26			10.32			10.07
AVERAGE BALANCES
Commercial loans	$	30,145		$	30,719		$	29,694
Real estate construction loans	3,067			3,031			2,958
Commercial mortgage loans	9,217			9,054			8,977
Lease financing	464			470			570
International loans	996			1,122			1,210
Residential mortgage loans	2,011			2,014			1,963
Consumer loans	2,521			2,523			2,528
Total loans	48,421			48,933			47,900

Earning assets	65,012			66,167			66,648
Total assets	70,326			71,398			71,819

Noninterest-bearing deposits	29,869			31,780			30,459
Interest-bearing deposits	26,221			25,861			27,320
Total deposits	56,090			57,641			57,779

Common shareholders' equity	7,927			7,987			7,865
NET INTEREST INCOME
Net interest income	$	549		$	545		$	470
Net interest margin	3.41		%	3.27		%	2.85		%
CREDIT QUALITY
Total nonperforming assets	$	339		$	415		$	545

Loans past due 90 days or more and still accruing	36			35			26

Net credit-related charge-offs	28			16			33

Allowance for loan losses	698			712			708
Allowance for credit losses on lending-related commitments	40			42			46
Total allowance for credit losses	738			754			754

Allowance for loan losses as a percentage of total loans	1.42		%	1.45		%	1.47		%
Net credit-related charge-offs as a percentage of average total loans	0.23			0.13			0.28
Nonperforming assets as a percentage of total loans and foreclosed property	0.69			0.84			1.13
Allowance for loan losses as a percentage of total nonperforming loans	209			173			134


(a)	March 31, 2018 ratios are estimated.


(b)	See Reconciliation of Non-GAAP Financial Measures.



CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries

	March 31,			December 31,			March 31,
(in millions, except share data)	2018			2017			2017
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	1,173		$	1,438		$	1,176

Interest-bearing deposits with banks	5,663			4,407			7,143
Other short-term investments	133			96			92

Investment securities available-for-sale	11,971			10,938			10,830
Investment securities held-to-maturity	—			1,266			1,508

Commercial loans	30,909			31,060			30,215
Real estate construction loans	3,114			2,961			2,930
Commercial mortgage loans	9,272			9,159			9,021
Lease financing	464			468			550
International loans	964			983			1,106
Residential mortgage loans	2,003			1,988			1,944
Consumer loans	2,514			2,554			2,537
Total loans	49,240			49,173			48,303
Less allowance for loan losses	(698		)	(712		)	(708		)
Net loans	48,542			48,461			47,595

Premises and equipment	468			466			488
Accrued income and other assets	4,385			4,495			4,144
Total assets	$	72,335		$	71,567		$	72,976

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	30,961		$	32,071		$	31,892

Money market and interest-bearing checking deposits	22,355			21,500			22,177
Savings deposits	2,233			2,152			2,138
Customer certificates of deposit	2,071			2,165			2,597
Foreign office time deposits	15			15			59
Total interest-bearing deposits	26,674			25,832			26,971
Total deposits	57,635			57,903			58,863

Short-term borrowings	48			10			41
Accrued expenses and other liabilities	1,058			1,069			989
Medium- and long-term debt	5,594			4,622			5,153
Total liabilities	64,335			63,604			65,046

Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141			1,141			1,141
Capital surplus	2,134			2,122			2,106
Accumulated other comprehensive loss	(553		)	(451		)	(379		)
Retained earnings	8,110			7,887			7,431
Less cost of common stock in treasury - 55,690,402 shares at 3/31/18, 55,306,483 shares at 12/31/17, and 50,732,795 shares at 3/31/17	(2,832		)	(2,736		)	(2,369		)
Total shareholders' equity	8,000			7,963			7,930
Total liabilities and shareholders' equity	$	72,335		$	71,567		$	72,976



CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	First		Fourth		Third			Second			First			First Quarter 2018
	Quarter		Quarter		Quarter			Quarter			Quarter			Fourth Quarter 2017					First Quarter 2017
(in millions, except per share data)	2018		2017		2017			2017			2017			Amount			Percent		Amount			Percent
INTEREST INCOME
Interest and fees on loans	$	509	$	498	$	500		$	453		$	421		$	11		2	%	$	88		21	%
Interest on investment securities	64		64		63			62			61			—			—		3			3
Interest on short-term investments	17		16		16			14			14			1			6		3			31
Total interest income	590		578		579			529			496			12			2		94			19
INTEREST EXPENSE
Interest on deposits	16		13		11			9			9			3			31		7			72
Interest on short-term borrowings	—		—		3			—			—			—			—		—			—
Interest on medium- and long-term debt	25		20		19			20			17			5			28		8			51
Total interest expense	41		33		33			29			26			8			28		15			59
Net interest income	549		545		546			500			470			4			1		79			17
Provision for credit losses	12		17		24			17			16			(5		)	(29	)	(4		)	(23	)
Net interest income after provision for credit losses	537		528		522			483			454			9			2		83			18
NONINTEREST INCOME
Card fees	59		91		85			80			77			(32		)	(35	)	(18		)	(23	)
Service charges on deposit accounts	54		55		57			57			58			(1		)	(3	)	(4		)	(6	)
Fiduciary income	52		50		48			51			49			2			4		3			5
Commercial lending fees	18		22		21			22			20			(4		)	(18	)	(2		)	(10	)
Letter of credit fees	10		11		11			11			12			(1		)	(1	)	(2		)	(14	)
Bank-owned life insurance	9		12		12			9			10			(3		)	(22	)	(1		)	(9	)
Foreign exchange income	12		12		11			11			11			—			—		1			7
Brokerage fees	7		6		6			6			5			1			16		2			27
Net securities losses	—		—		(1		)	(2		)	—			—			—		—			—
Other noninterest income	23		26		25			31			29			(3		)	(15	)	(6		)	(22	)
Total noninterest income	244		285		275			276			271			(41		)	(14	)	(27		)	(10	)
NONINTEREST EXPENSES
Salaries and benefits expense	255		248		237			231			245			7			3		10			4
Outside processing fee expense	61		99		92			88			87			(38		)	(38	)	(26		)	(30	)
Net occupancy expense	38		40		38			38			38			(2		)	(6	)	—			—
Equipment expense	11		11		12			11			11			—			—		—			—
Restructuring charges	16		13		7			14			11			3			31		5			47
Software expense	31		31		35			31			29			—			—		2			8
FDIC insurance expense	13		13		13			12			13			—			—		—			—
Advertising expense	6		9		8			7			4			(3		)	(30	)	2			46
Litigation-related expense	—		—		—			—			(2		)	—			—		2			n/m
Other noninterest expenses	15		19		21			25			21			(4		)	(26	)	(6		)	(26	)
Total noninterest expenses	446		483		463			457			457			(37		)	(8	)	(11		)	(2	)
Income before income taxes	335		330		334			302			268			5			1		67			25
Provision for income taxes	54		218		108			99			66			(164		)	(75	)	(12		)	(19	)
NET INCOME	281		112		226			203			202			169			150		79			39
Less income allocated to participating securities	2		—		2			1			2			2			n/m		—			—
Net income attributable to common shares	$	279	$	112	$	224		$	202		$	200		$	167		150	%	$	79		39	%
Earnings per common share:
Basic	$	1.62	$	0.65	$	1.29		$	1.15		$	1.15		$	0.97		149	%	$	0.47		41	%
Diluted	1.59		0.63		1.26			1.13			1.11			0.96			152		0.48			43

Comprehensive income	178		107		228			221			206			71			67		(28		)	(13	)

Cash dividends declared on common stock	52		52		53			46			42			—			—		10			26
Cash dividends declared per common share	0.30		0.30		0.30			0.26			0.23			—			—		0.07			30

n/m - not meaningful



ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries

	2018			2017
(in millions)	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr

Balance at beginning of period	$	712		$	712		$	705		$	708		$	730

Loan charge-offs:
Commercial	36			26			35			34			38
Commercial mortgage	—			1			—			1			1
Lease financing	—			—			1			—			—
International	—			1			—			2			3
Consumer	1			1			1			2			2
Total loan charge-offs	37			29			37			39			44

Recoveries on loans previously charged-off:
Commercial	8			7			6			17			7
Real estate construction	—			—			1			—			—
Commercial mortgage	—			2			2			3			2
International	—			2			1			—			—
Residential mortgage	—			1			—			—			—
Consumer	1			1			2			1			2
Total recoveries	9			13			12			21			11
Net loan charge-offs	28			16			25			18			33
Provision for loan losses	14			16			31			15			11
Foreign currency translation adjustment	—			—			1			—			—
Balance at end of period	$	698		$	712		$	712		$	705		$	708

Allowance for loan losses as a percentage of total loans	1.42		%	1.45		%	1.45		%	1.43		%	1.47		%

Net loan charge-offs as a percentage of average total loans	0.23			0.13			0.21			0.15			0.28



ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)
Comerica Incorporated and Subsidiaries

	2018			2017
(in millions)	1st Qtr			4th Qtr		3rd Qtr			2nd Qtr		1st Qtr

Balance at beginning of period	$	42		$	41	$	48		$	46	$	41
Add: Provision for credit losses on lending-related commitments	(2		)	1		(7		)	2		5
Balance at end of period	$	40		$	42	$	41		$	48	$	46



NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries

	2018			2017
(in millions)	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr

SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial	$	242		$	309		$	345		$	379		$	400
Commercial mortgage	29			31			35			41			41
Lease financing	3			4			8			8			6
International	4			6			6			6			8
Total nonaccrual business loans	278			350			394			434			455
Retail loans:
Residential mortgage	29			31			28			36			39
Consumer:
Home equity	19			21			22			23			26
Other consumer	—			—			—			—			1
Total consumer	19			21			22			23			27
Total nonaccrual retail loans	48			52			50			59			66
Total nonaccrual loans	326			402			444			493			521
Reduced-rate loans	8			8			8			8			8
Total nonperforming loans	334			410			452			501			529
Foreclosed property	5			5			6			18			16
Total nonperforming assets	$	339		$	415		$	458		$	519		$	545

Nonperforming loans as a percentage of total loans	0.68		%	0.83		%	0.92		%	1.01		%	1.10		%
Nonperforming assets as a percentage of total loans and foreclosed property	0.69			0.84			0.93			1.05			1.13
Allowance for loan losses as a percentage of total nonperforming loans	209			173			157			141			134
Loans past due 90 days or more and still accruing	$	36		$	35		$	12		$	30		$	26

ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period	$	402		$	444		$	493		$	521		$	582
Loans transferred to nonaccrual (a)	71			73			66			54			104
Nonaccrual business loan gross charge-offs (b)	(36		)	(28		)	(36		)	(37		)	(42		)
Loans transferred to accrual status (a)	(3		)	—			—			—			—
Nonaccrual business loans sold (c)	(10		)	(22		)	(10		)	—			(8		)
Payments/Other (d)	(98		)	(65		)	(69		)	(45		)	(115		)
Nonaccrual loans at end of period	$	326		$	402		$	444		$	493		$	521
(a) Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(b) Analysis of gross loan charge-offs:
Nonaccrual business loans	$	36		$	28		$	36		$	37		$	42
Consumer and residential mortgage loans	1			1			1			2			2
Total gross loan charge-offs	$	37		$	29		$	37		$	39		$	44
(c) Analysis of loans sold:
Nonaccrual business loans	$	10		$	22		$	10		$	—		$	8
Performing criticized loans	8			12			—			—			—
Total criticized loans sold	$	18		$	34		$	10		$	—		$	8
(d) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold.



ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries

	Three Months Ended
	March 31, 2018							December 31, 2017							March 31, 2017
	Average					Average		Average					Average		Average					Average
(dollar amounts in millions)	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate

Commercial loans	$	30,145		$	315	4.24	%	$	30,719		$	311	4.02	%	$	29,694		$	256	3.50	%
Real estate construction loans	3,067			36		4.74		3,031			34		4.44		2,958			28		3.82
Commercial mortgage loans	9,217			98		4.32		9,054			93		4.08		8,977			83		3.73
Lease financing	464			5		4.22		470			4		3.38		570			5		3.29
International loans	996			11		4.60		1,122			12		4.41		1,210			11		3.77
Residential mortgage loans	2,011			18		3.67		2,014			19		3.66		1,963			17		3.57
Consumer loans	2,521			26		4.13		2,523			25		3.92		2,528			21		3.42
Total loans	48,421			509		4.26		48,933			498		4.04		47,900			421		3.56

Mortgage-backed securities	9,168			52		2.21		9,315			52		2.19		9,306			50		2.14
Other investment securities	2,743			12		1.72		2,840			12		1.69		2,892			11		1.59
Total investment securities	11,911			64		2.09		12,155			64		2.07		12,198			61		2.01

Interest-bearing deposits with banks	4,548			17		1.55		4,987			16		1.30		6,458			14		0.83
Other short-term investments	132			—		0.60		92			—		0.58		92			—		0.67
Total earning assets	65,012			590		3.66		66,167			578		3.46		66,648			496		3.01

Cash and due from banks	1,261							1,274							1,180
Allowance for loan losses	(718		)					(726		)					(741		)
Accrued income and other assets	4,771							4,683							4,732
Total assets	$	70,326						$	71,398						$	71,819

Money market and interest-bearing checking deposits	$	21,891		14		0.26		$	21,402		10		0.19		$	22,477		7		0.12
Savings deposits	2,177			—		0.03		2,152			—		0.02		2,085			—		0.02
Customer certificates of deposit	2,122			2		0.34		2,259			3		0.35		2,715			2		0.38
Foreign office time deposits	31			—		1.14		48			—		0.76		43			—		0.49
Total interest-bearing deposits	26,221			16		0.25		25,861			13		0.19		27,320			9		0.14

Short-term borrowings	35			—		1.47		116			—		1.16		22			—		0.73
Medium- and long-term debt	5,192			25		1.96		4,631			20		1.69		5,157			17		1.30
Total interest-bearing sources	31,448			41		0.53		30,608			33		0.42		32,499			26		0.33

Noninterest-bearing deposits	29,869							31,780							30,459
Accrued expenses and other liabilities	1,082							1,023							996
Total shareholders' equity	7,927							7,987							7,865
Total liabilities and shareholders' equity	$	70,326						$	71,398						$	71,819

Net interest income/rate spread				$	549	3.13					$	545	3.04					$	470	2.68

Impact of net noninterest-bearing sources of funds						0.28							0.23							0.17
Net interest margin (as a percentage of average earning assets)						3.41	%						3.27	%						2.85	%



CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries

	March 31,			December 31,			September 30,			June 30,			March 31,
(in millions, except per share data)	2018			2017			2017			2017			2017

Commercial loans:
Floor plan	$	4,302		$	4,359		$	3,960		$	4,346		$	4,191
Other	26,607			26,701			27,102			27,103			26,024
Total commercial loans	30,909			31,060			31,062			31,449			30,215
Real estate construction loans	3,114			2,961			3,018			2,857			2,930
Commercial mortgage loans	9,272			9,159			8,985			8,974			9,021
Lease financing	464			468			475			472			550
International loans	964			983			1,159			1,145			1,106
Residential mortgage loans	2,003			1,988			1,999			1,976			1,944
Consumer loans:
Home equity	1,763			1,816			1,790			1,796			1,790
Other consumer	751			738			721			739			747
Total consumer loans	2,514			2,554			2,511			2,535			2,537
Total loans	$	49,240		$	49,173		$	49,209		$	49,408		$	48,303

Goodwill	$	635		$	635		$	635		$	635		$	635
Core deposit intangible	5			6			6			7			7
Other intangibles	2			2			2			2			3

Common equity tier 1 capital (a)	7,912			7,773			7,752			7,705			7,667
Risk-weighted assets (a)	66,157			66,575			67,341			66,928			66,355

Common equity tier 1 and tier 1 risk-based capital ratio (a)	11.96		%	11.68		%	11.51		%	11.51		%	11.55		%
Total risk-based capital ratio (a)	14.10			13.84			13.65			13.66			13.72
Leverage ratio (a)	11.23			10.89			10.87			10.80			10.67
Common equity ratio	11.06			11.13			11.16			11.18			10.87
Tangible common equity ratio (b)	10.26			10.32			10.35			10.37			10.07

Common shareholders' equity per share of common stock	$	46.38		$	46.07		$	46.09		$	45.39		$	44.69
Tangible common equity per share of common stock (b)	42.66			42.34			42.39			41.73			41.05
Market value per share for the quarter:
High	102.66			88.22			76.76			75.30			75.00
Low	86.02			74.16			64.04			64.75			64.27
Close	95.93			86.81			76.26			73.24			68.58

Quarterly ratios:
Return on average common shareholders' equity	14.37		%	5.58		%	11.17		%	10.26		%	10.42		%
Return on average assets	1.62			0.62			1.25			1.14			1.14
Efficiency ratio (c)	56.33			58.14			56.33			58.99			61.71

Number of banking centers	438			438			439			439			458

Number of employees - full time equivalent	7,942			7,999			7,974			8,017			8,044


(a)	March 31, 2018 amounts and ratios are estimated.


(b)	See Reconciliation of Non-GAAP Financial Measures.


(c)	Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net securities gains (losses).



CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries

								Accumulated
	Common Stock							Other									Total
	Shares				Capital			Comprehensive			Retained			Treasury			Shareholders'
(in millions, except per share data)	Outstanding		Amount		Surplus			Loss			Earnings			Stock			Equity

BALANCE AT DECEMBER 31, 2016	175.3		$	1,141	$	2,135		$	(383	)	$	7,331		$	(2,428	)	$	7,796
Cumulative effect of change in accounting principle	—		—		3			—			(2		)	—			1
Net income	—		—		—			—			202			—			202
Other comprehensive income, net of tax	—		—		—			4			—			—			4
Cash dividends declared on common stock ($0.23 per share)	—		—		—			—			(42		)	—			(42		)
Purchase of common stock	(1.7	)	—		—			—			—			(118		)	(118		)
Net issuance of common stock under employee stock plans	2.3		—		(25		)	—			(14		)	108			69
Net issuance of common stock for warrants	1.5		—		(24		)	—			(44		)	68			—
Share-based compensation	—		—		18			—			—			—			18
Other	—		—		(1		)	—			—			1			—
BALANCE AT MARCH 31, 2017	177.4		$	1,141	$	2,106		$	(379	)	$	7,431		$	(2,369	)	$	7,930

BALANCE AT DECEMBER 31, 2017	172.9		$	1,141	$	2,122		$	(451	)	$	7,887		$	(2,736	)	$	7,963
Cumulative effect of change in accounting principles	—		—		—			1			14			—			15
Net income	—		—		—			—			281			—			281
Other comprehensive loss, net of tax	—		—		—			(103		)	—			—			(103		)
Cash dividends declared on common stock ($0.30 per share)	—		—		—			—			(52		)	—			(52		)
Purchase of common stock	(1.7	)	—		—			—			—			(159		)	(159		)
Net issuance of common stock under employee stock plans	1.2		—		(11		)	—			(17		)	59			31
Net issuance of common stock for warrants	0.1		—		(1		)	—			(3		)	4			—
Share-based compensation	—		—		24			—			—			—			24
BALANCE AT MARCH 31, 2018	172.5		$	1,141	$	2,134		$	(553	)	$	8,110		$	(2,832	)	$	8,000



BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries


(dollar amounts in millions)	Business			Retail			Wealth
Three Months Ended March 31, 2018	Bank			Bank			Management			Finance			Other				Total
Earnings summary:
Net interest income	$	330		$	165		$	41		$	1		$	12			$	549
Provision for credit losses	10			4			(4		)	—			2				12
Noninterest income	121			42			68			11			2				244
Noninterest expenses	184			177			72			(1		)	14				446
Provision (benefit) for income taxes	59			6			10			1			(22		)	(a)	54
Net income	$	198		$	20		$	31		$	12		$	20			$	281
Net credit-related charge-offs (recoveries)	$	18		$	12		$	(2	)	$	—		$	—			$	28

Selected average balances:
Assets	$	38,911		$	6,427		$	5,373		$	13,779		$	5,836			$	70,326
Loans	37,368			5,807			5,246			—			—				48,421
Deposits	27,314			24,064			3,796			823			93				56,090

Statistical data:
Return on average assets (b)	2.07		%	0.33		%	2.30		%	N/M			N/M				1.62		%
Efficiency ratio (c)	40.72			85.03			67.10			N/M			N/M				56.33

	Business			Retail			Wealth
Three Months Ended December 31, 2017	Bank			Bank			Management			Finance			Other				Total
Earnings summary:
Net interest income (expense)	$	348		$	170		$	43		$	(25	)	$	9			$	545
Provision for credit losses	20			(3		)	(5		)	—			5				17
Noninterest income	156			49			64			14			2				285
Noninterest expenses	210			189			73			(1		)	12				483
Provision (benefit) for income taxes	98			12			15			(8		)	101			(a)	218
Net income (loss)	$	176		$	21		$	24		$	(2	)	$	(107	)		$	112
Net credit-related charge-offs (recoveries)	$	14		$	3		$	(1	)	$	—		$	—			$	16

Selected average balances:
Assets	$	39,300		$	6,445		$	5,352		$	13,940		$	6,361			$	71,398
Loans	37,873			5,835			5,225			—			—				48,933
Deposits	28,717			24,232			4,184			394			114				57,641

Statistical data:
Return on average assets (b)	1.78		%	0.33		%	1.78		%	N/M			N/M				0.62		%
Efficiency ratio (c)	41.72			85.86			68.50			N/M			N/M				58.14

	Business			Retail			Wealth
Three Months Ended March 31, 2017	Bank			Bank			Management			Finance			Other				Total
Earnings summary:
Net interest income (expense)	$	332		$	160		$	41		$	(71	)	$	8			$	470
Provision for credit losses	10			12			(1		)	—			(5		)		16
Noninterest income	144			48			64			11			4				271
Noninterest expenses	197			179			70			(1		)	12				457
Provision (benefit) for income taxes	92			6			13			(24		)	(21		)	(a)	66
Net income (loss)	$	177		$	11		$	23		$	(35	)	$	26			$	202
Net credit-related charge-offs (recoveries)	$	30		$	5		$	(2	)	$	—		$	—			$	33

Selected average balances:
Assets	$	38,091		$	6,525		$	5,406		$	13,944		$	7,853			$	71,819
Loans	36,754			5,895			5,251			—			—				47,900
Deposits	29,648			23,795			3,978			142			216				57,779

Statistical data:
Return on average assets (b)	1.89		%	0.18		%	1.71		%	N/M			N/M				1.14		%
Efficiency ratio (c)	41.39			86.01			67.17			N/M			N/M				61.71


(a)	Included tax benefits of $19 million, $4 million and $24 million from employee stock transactions for the first quarter 2018 and fourth and first quarters 2017, respectively. Fourth quarter 2017 also included $107 million charge to adjust deferred taxes as a result of the enactment of the Tax Cut and Jobs Act.


(b)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.


(c)	Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net securities gains (losses).

N/M - Not Meaningful



MARKET SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries


(dollar amounts in millions)										Other			Finance
Three Months Ended March 31, 2018	Michigan			California			Texas			Markets			& Other				Total
Earnings summary:
Net interest income	$	169		$	180		$	109		$	78		$	13			$	549
Provision for credit losses	33			(2		)	(13		)	(8		)	2				12
Noninterest income	73			39			31			88			13				244
Noninterest expenses	144			106			92			91			13				446
Provision (benefit) for income taxes	16			30			14			15			(21		)	(a)	54
Net income	$	49		$	85		$	47		$	68		$	32			$	281
Net credit-related charge-offs (recoveries)	$	(1	)	$	13		$	5		$	11		$	—			$	28

Selected average balances:
Assets	$	13,395		$	18,581		$	10,373		$	8,362		$	19,615			$	70,326
Loans	12,604			18,347			9,830			7,640			—				48,421
Deposits	21,227			17,091			9,188			7,668			916				56,090

Statistical data:
Return on average assets (b)	0.88		%	1.86		%	1.85		%	3.32		%	N/M				1.62		%
Efficiency ratio (c)	59.61			48.39			65.63			54.97			N/M				56.33

										Other			Finance
Three Months Ended December 31, 2017	Michigan			California			Texas			Markets			& Other				Total
Earnings summary:
Net interest income (expense)	$	175		$	188		$	115		$	83		$	(16	)		$	545
Provision for credit losses	6			31			(27		)	2			5				17
Noninterest income	81			43			34			111			16				285
Noninterest expenses	150			107			95			120			11				483
Provision for income taxes	36			36			32			21			93			(a)	218
Net income (loss)	$	64		$	57		$	49		$	51		$	(109	)		$	112
Net credit-related charge-offs	$	1		$	5		$	10		$	—		$	—			$	16

Selected average balances:
Assets	$	13,583		$	18,470		$	10,305		$	8,739		$	20,301			$	71,398
Loans	12,798			18,236			9,795			8,104			—				48,933
Deposits	21,807			18,222			9,366			7,738			508				57,641

Statistical data:
Return on average assets (b)	1.13		%	1.17		%	1.85		%	2.30		%	N/M				0.62		%
Efficiency ratio (c)	58.65			46.42			63.58			61.68			N/M				58.14

										Other			Finance
Three Months Ended March 31, 2017	Michigan			California			Texas			Markets			& Other				Total
Earnings summary:
Net interest income (expense)	$	170		$	171		$	113		$	79		$	(63	)		$	470
Provision for credit losses	(2		)	21			(9		)	11			(5		)		16
Noninterest income	83			41			32			100			15				271
Noninterest expenses	150			96			94			106			11				457
Provision (benefit) for income taxes	37			36			22			16			(45		)	(a)	66
Net income (loss)	$	68		$	59		$	38		$	46		$	(9	)		$	202
Net credit-related charge-offs (recoveries)	$	(3	)	$	10		$	22		$	4		$	—			$	33

Selected average balances:
Assets	$	13,254		$	17,958		$	10,555		$	8,255		$	21,797			$	71,819
Loans	12,586			17,680			10,111			7,523			—				47,900
Deposits	22,150			17,243			10,113			7,915			358				57,779

Statistical data:
Return on average assets (b)	1.20		%	1.32		%	1.35		%	2.13		%	N/M				1.14		%
Efficiency ratio (c)	59.50			45.25			64.80			59.31			N/M				61.71


(a)	Included tax benefits of $19 million, $4 million and $24 million from employee stock transactions for the first quarter 2018 and fourth and first quarters 2017, respectively. Fourth quarter 2017 also included $107 million charge to adjust deferred taxes as a result of the enactment of the Tax Cut and Jobs Act.


(b)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.


(c)	Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net securities gains (losses).

N/M - Not Meaningful



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries

Comerica believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and our performance trends. Comerica believes adjusted net income, earnings per share, ROA, ROE, noninterest income, noninterest expenses and efficiency ratio provide a greater understanding of ongoing operations and enhances comparability of results with prior periods. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.



	Three Months Ended
	March 31,			December 31,			March 31,
(dollar amounts in millions, except per share data)	2018			2017			2017

Adjusted Earnings per Common Share:
Net income attributable to common shareholders	$	279		$	112		$	200
Restructuring charges, net of tax	12			8			7
Deferred tax adjustment	(3		)	107			—
One-time employee bonus, net of tax	—			3			—
Tax benefits from employee stock transactions	(19		)	(4		)	(24		)
Adjusted net income attributable to common shareholders	$	269		$	226		$	183
Diluted average common shares (in millions)	175			176			180
Diluted earnings per common share:
Reported	$	1.59		$	0.63		$	1.11
Adjusted	1.54			1.28			1.02

Adjusted Noninterest Income, Noninterest Expenses and Efficiency Ratio:
Noninterest income	$	244		$	285		$	271
Proforma effect of adoption of accounting standard	—			(34		)	(26		)
Adjusted noninterest income	$	244		$	251		$	245
Noninterest expenses	$	446		$	483		$	457
Proforma effect of adoption of accounting standard	—			(34		)	(26		)
Restructuring charges	(16		)	(13		)	(11		)
One-time employee bonus	—			(5		)	—
Adjusted noninterest expenses	$	430		$	431		$	420
Net interest income	$	549		$	545		$	470
Efficiency ratio:
Reported	56.33		%	58.14		%	61.71		%
Adjusted	54.32			54.23			58.79

Adjusted Net Income, ROA and ROE:
Net income	$	281		$	112		$	202
Restructuring charges, net of tax	12			8			7
Deferred tax adjustment	(3		)	107			—
One-time employee bonus, net of tax	—			3			—
Tax benefits from employee stock transactions	(19		)	(4		)	(24		)
Adjusted net income	$	271		$	226		$	185

Average assets	$	70,326		$	71,398		$	71,819
ROA:
Reported	1.62		%	0.62		%	1.14		%
Adjusted	1.56			1.26			1.05

Average common shareholders' equity	$	7,927		$	7,987		$	7,865
ROE:
Reported	14.37		%	5.58		%	10.42		%
Adjusted	13.85			11.24			9.56

Adjusted net income, earnings per share, ROA and ROE remove the after tax effect of restructuring charges, one-time employee bonuses, the charge to adjust deferred taxes resulting from the Tax Cut and Jobs Act and tax benefits from employee stock transactions from net income and net income available to common shareholders. Adjusted noninterest income, noninterest expenses and efficiency ratio remove the proforma effect of the adoption of the new accounting standard for revenue recognition, restructuring charges and one-time employee bonuses from noninterest income and noninterest expenses.



	March 31,			December 31,			September 30,			June 30,			March 31,
(dollar amounts in millions)	2018			2017			2017			2017			2017

Tangible Common Equity Ratio:
Common shareholders' equity	$	8,000		$	7,963		$	8,034		$	7,985		$	7,930
Less:
Goodwill	635			635			635			635			635
Other intangible assets	7			8			8			9			10
Tangible common equity	$	7,358		$	7,320		$	7,391		$	7,341		$	7,285

Total assets	$	72,335		$	71,567		$	72,017		$	71,447		$	72,976
Less:
Goodwill	635			635			635			635			635
Other intangible assets	7			8			8			9			10
Tangible assets	$	71,693		$	70,924		$	71,374		$	70,803		$	72,331

Common equity ratio	11.06		%	11.13		%	11.16		%	11.18		%	10.87		%
Tangible common equity ratio	10.26			10.32			10.35			10.37			10.07

Tangible Common Equity per Share of Common Stock:
Common shareholders' equity	$	8,000		$	7,963		$	8,034		$	7,985		$	7,930
Tangible common equity	7,358			7,320			7,391			7,341			7,285

Shares of common stock outstanding (in millions)	172			173			174			176			177

Common shareholders' equity per share of common stock	$	46.38		$	46.07		$	46.09		$	45.39		$	44.69
Tangible common equity per share of common stock	42.66			42.34			42.39			41.73			41.05

The tangible common equity ratio removes the effect of intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock.

COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - April 17, 2018

Attached files

COMERICA INC /NEW/ Reports