Parent Company Financial Statements

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

PARENT COMPANY FINANCIAL STATEMENTS

BALANCE SHEETS - COMERICA INCORPORATED


(in millions, except share data)
December 31	2021		2020
			(recast)
Assets
Cash and due from subsidiary banks	$	1,105	$	1,489
Other short-term investments	113		107
Receivable due from subsidiary bank (a)	150		—
Investment in subsidiaries, principally banks	8,278		8,215
Premises and equipment	1		1
Accrued income and other assets	265		329
Total assets	$	9,912	$	10,141
Liabilities and Shareholders’ Equity
Medium- and long-term debt	$	1,736	$	1,818
Accrued expenses and other liabilities	279		273
Total liabilities	2,015		2,091
Fixed-rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share:
Authorized - 4,000 shares
Issued - 4,000 shares	394		394
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141		1,141
Capital surplus	2,175		2,185
Accumulated other comprehensive (loss) income (b)	(212)		64
Retained earnings (b)	10,494		9,727
Less cost of common stock in treasury - 97,476,872 shares at 12/31/2021 and 88,997,430 shares at 12/31/2020	(6,095)		(5,461)
Total shareholders’ equity	7,897		8,050
Total liabilities and shareholders’ equity	$	9,912	$	10,141

(a)In third quarter 2021 the Corporation issued a $150 million loan to Comerica Bank that, after an initial term of 13 months, will automatically extend at the end of each month to roll into a new 13 month plus one day term.

(b)Balances for the year ended December 31, 2020 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information.

STATEMENTS OF INCOME - COMERICA INCORPORATED


(in millions)
Years Ended December 31	2021		2020		2019
			(recast)		(recast)
Income
Income from subsidiaries:
Dividends from subsidiaries	$	849	$	498	$	1,229
Other interest income	1		4		20
Intercompany management fees	235		209		224
Total income	1,085		711		1,473
Expenses
Interest on medium- and long-term debt	20		30		56
Salaries and benefits expense	170		141		143
Other noninterest expenses	72		66		79
Total expenses	262		237		278
Income before benefit for income taxes and equity in undistributed earnings (losses) of subsidiaries	823		474		1,195
Benefit for income taxes	(6)		(6)		(9)
Income before equity in undistributed earnings (losses) of subsidiaries	829		480		1,204
Equity in undistributed earnings (losses) of subsidiaries, principally banks (a)	339		17		(2)
Net income	1,168		497		1,202
Less income allocated to participating securities	5		2		7
Preferred stock dividends	23		13		—
Net income attributable to common shares	$	1,140	$	482	$	1,195

(a) Amounts for the years ended December 31, 2020 and December 31, 2019 have been recast to reflect the retrospective application of the Corporation's election to change the accounting method for certain components of the qualified defined benefit pension plan as of January 1, 2021. Refer to Note 1 for further information.

STATEMENTS OF CASH FLOWS - COMERICA INCORPORATED


(in millions)
Years Ended December 31	2021		2020		2019
			(recast)		(recast)
Operating Activities
Net income	$	1,168	$	497	$	1,202
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed (losses) earnings of subsidiaries, principally banks	(339)		(17)		2
Depreciation and amortization	—		—		1
Net periodic defined benefit cost	5		4		4
Share-based compensation expense	19		11		15
Benefit for deferred income taxes	(2)		(1)		(2)
Other, net	3		2		28
Net cash provided by operating activities	854		496		1,250
Investing Activities
Advance to subsidiary bank	(150)		—		—
Capital transactions with subsidiaries	—		(21)		—
Other, net	(1)		2		—
Net cash used in investing activities	(151)		(19)		—
Financing Activities
Medium- and long-term debt:
Maturities	—		—		(350)
Issuances	—		—		550
Preferred Stock:
Issuances	—		394		—
Cash dividends paid	(23)		(8)		—
Common Stock:
Repurchases	(729)		(199)		(1,394)
Cash dividends paid	(369)		(375)		(402)
Issuances under employee stock plans	34		4		18
Net cash provided by (used in) financing activities	(1,087)		(184)		(1,578)
Net increase (decrease) in cash and cash equivalents	(384)		293		(328)
Cash and cash equivalents at beginning of period	1,489		1,196		1,524
Cash and cash equivalents at end of period	$	1,105	$	1,489	$	1,196
Interest paid	$	21	$	33	$	55