EX-99.1 2 a2023q3pressrelease-ex991.htm EX-99.1
THIRD QUARTER 2023 NET INCOME OF $251 MILLION, $1.84 PER SHARE
Reflected Successful Deposit Strategy Resulting in Growth in Customer Balances
Prudent Capital Management and Strong Credit Quality
Abundant Liquidity and Continued Robust Fee Income
“Today we reported third quarter earnings per share of $1.84,” said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. “We are very proud of the success this quarter in adding new deposits and winning back customer balances. Through strategic balance sheet management, loans moderated and customer deposits grew, allowing us to absorb $6 billion in wholesale funding maturities. Excess cash and significant liquidity capacity provide flexibility as we position ourselves to further prioritize high-return growth in the future. Credit quality remained very strong, and our increased coverage ratio reflected continued, expected normalization. We remain committed to running an efficient organization as we navigate expense pressures. Capital generation from earnings and loan optimization increased our CET1 ratio to 10.79, above our 10% target.”

| (dollar amounts in millions, except per share data) | 3rd Qtr '23 |  | 2nd Qtr '23 |  | 3rd Qtr '22 |  |  |  |  |
| FINANCIAL RESULTS |  |  |  |  |  |  |  |  |  |
| Net interest income | $ | 601 |  |  | $ | 621 |  |  | $ | 707 |  |  |  |  |  |
| Provision for credit losses | 14 |  |  | 33 |  |  | 28 |  |  |  |  |  |
| Noninterest income | 295 |  |  | 303 |  |  | 278 |  |  |  |  |  |
| Noninterest expenses | 555 |  |  | 535 |  |  | 502 |  |  |  |  |  |
| Pre-tax income | 327 |  |  | 356 |  |  | 455 |  |  |  |  |  |
| Provision for income taxes | 76 |  |  | 83 |  |  | 104 |  |  |  |  |  |
| Net income | $ | 251 |  |  | $ | 273 |  |  | $ | 351 |  |  |  |  |  |
| Diluted earnings per common share | $ | 1.84 |  |  | $ | 2.01 |  |  | $ | 2.60 |  |  |  |  |  |
| Average loans | 53,987 |  |  | 55,368 |  |  | 51,113 |  |  |  |  |  |
| Average deposits | 65,883 |  |  | 64,332 |  |  | 73,976 |  |  |  |  |  |
| Return on average assets | 1.12 | % |  | 1.21 | % |  | 1.63 | % |  |  |  |  |
| Return on average common shareholders' equity | 19.50 |  |  | 19.38 |  |  | 23.28 |  |  |  |  |  |
| Net interest margin | 2.84 |  |  | 2.93 |  |  | 3.51 |  |  |  |  |  |
| Efficiency ratio (a) | 61.86 |  |  | 57.70 |  |  | 50.75 |  |  |  |  |  |
| Common equity Tier 1 capital ratio (b) | 10.79 |  |  | 10.31 |  |  | 9.93 |  |  |  |  |  |
| Tier 1 capital ratio (b) | 11.29 |  |  | 10.80 |  |  | 10.45 |  |  |  |  |  |

(a)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
(b)September 30, 2023 ratios are estimated.
Third Quarter 2023 Compared to Second Quarter 2023 Overview
Balance sheet items discussed in terms of average balances unless otherwise noted.
Loans decreased $1.4 billion to $54.0 billion.
•Largely driven by decreases of $619 million in Mortgage Banker Finance, $563 million in Equity Fund Services and $472 million in general Middle Market, partially offset by a $505 million increase in Commercial Real Estate.
◦Declines reflect strategic actions, including the planned exit from the Mortgage Banker Finance business, which is expected to be mostly complete by year-end 2023, as well as increased selectivity in other lines of business.
•Average yield on loans (including swaps) increased 16 basis points to 6.34%, reflecting higher short-term rates.
Securities decreased $984 million to $16.9 billion, which reflected a $428 million increase in unrealized losses.
•Period-end unrealized losses on securities increased $710 million to $3.6 billion.

Deposits increased $1.6 billion to $65.9 billion.
•Interest-bearing deposits increased $3.1 billion, reflecting the full-quarter impact of $726 million related to brokered time deposits added in the second quarter, partially offset by a decrease of $1.5 billion in noninterest-bearing deposits.
◦Increases of $569 million in Corporate Banking and $494 million in general Middle Market, partially offset by a decrease of $226 million in Energy.
◦On a period-end basis, deposits increased $1.1 billion, reflecting increases of $862 million in general Middle Market, $642 million in Corporate Banking and $256 million in Retail Banking, partially offset by a $231 million decline in Mortgage Banker Finance related to the above-described planned exit of this business.
•Period-end uninsured deposits as calculated per regulatory guidance totaled $31.5 billion, or 46.9% of total deposits; excluding affiliate deposits, uninsured deposits totaled $27.4 billion, or 40.8% of total deposits.
•The average cost of interest-bearing deposits increased 53 basis points to 290 basis points, mostly reflecting strategic growth in interest-bearing deposits as well as relationship-focused pricing in a higher-rate environment.
Short-term borrowings decreased $1.7 billion to $8.8 billion, due to a reduction in FHLB advances, while medium- and long-term debt decreased $690 million to $6.4 billion, reflecting $850 million in senior notes that matured in the third quarter.
•Total liquidity capacity at period-end totaled $45.1 billion, including cash and available liquidity through the FHLB, the FRB discount window and Bank Term Funding Program.
Net interest income decreased $20 million to $601 million.
•Reduced borrowing balances, higher deposits held at the Federal Reserve Bank and the benefit from one additional day in the quarter were more than offset by increased interest-bearing deposits, a decline in loan balances and the net decrease from higher short-term rates.
•Net interest margin decreased 9 basis points to 2.84%, primarily reflecting higher-cost funding sources.
Provision for credit losses decreased $19 million to $14 million.
•The allowance for credit losses increased $8 million to $736 million at September 30, 2023, reflecting the continuation of an uncertain economic outlook and credit migration, as well as changes in portfolio composition and lower loan volumes. As a percentage of total loans, the allowance for credit losses was 1.38%, an increase of 7 basis points.
Noninterest income decreased $8 million to $295 million.
•Decreases of $7 million in deferred compensation asset returns (offset in noninterest expenses), $4 million in capital markets income (related to reduced derivative income), $3 million in fiduciary income and smaller decreases in other categories, which were partially offset by a $10 million increase in risk management hedging income.
Noninterest expenses increased $20 million to $555 million.
•Increases of $9 million in salaries and benefits expense, $7 million in outside processing fee expense and $3 million each in occupancy and FDIC insurance expense were partially offset by a $5 million decrease in other noninterest expenses.
◦Salaries and benefits expense included increases of $8 million in temporary labor, $4 million in incentive compensation and $3 million in stock-based compensation, partially offset by decreases of $7 million in deferred compensation expense (offset in other noninterest income) and $3 million in severance costs.
◦The decrease in other noninterest expenses was primarily due to $21 million in gains on the sale of real estate and a $5 million decrease in legal fees, partially offset by increases of $10 million in litigation and regulatory-related expenses, $9 million in consulting expenses and $5 million in operational losses.
Common equity Tier 1 capital ratio of 10.79% and a Tier 1 capital ratio of 11.29%.
•Declared dividends of $94 million on common stock and $6 million on preferred stock.
•Tangible common equity ratio was 4.62%.
See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios.
2

Net Interest Income
Balance sheet items presented and discussed in terms of average balances.

(dollar amounts in millions) | 3rd Qtr '23 |  | 2nd Qtr '23 |  | 3rd Qtr '22 |  |  |  |
Net interest income | $ | 601 |  |  | $ | 621 |  |  | $ | 707 |  |  |  |  |
Net interest margin | 2.84 | % |  | 2.93 | % |  | 3.51 | % |  |  |  |
Selected balances: |  |  |  |  |  |  |  |  |
Total earning assets | $ | 80,996 |  |  | $ | 82,311 |  |  | $ | 77,012 |  |  |  |  |
Total loans | 53,987 |  |  | 55,368 |  |  | 51,113 |  |  |  |  |
Total investment securities | 16,881 |  |  | 17,865 |  |  | 20,540 |  |  |  |  |
Federal Reserve Bank deposits | 9,443 |  |  | 8,409 |  |  | 4,967 |  |  |  |  |
Total deposits | 65,883 |  |  | 64,332 |  |  | 73,976 |  |  |  |  |
Total noninterest-bearing deposits | 29,016 |  |  | 30,559 |  |  | 41,820 |  |  |  |  |
Short-term borrowings | 8,847 |  |  | 10,568 |  |  | 144 |  |  |  |  |
Medium- and long-term debt | 6,383 |  |  | 7,073 |  |  | 2,827 |  |  |  |  |

Net interest income decreased $20 million, and net interest margin decreased 9 basis points, compared to second quarter 2023. Amounts shown in parentheses represent the impacts to net interest income and net interest margin, respectively, with impacts of hedging strategy included with rate.
•Interest income on loans increased $10 million and improved net interest margin by 5 basis points, driven by higher short-term rates (+$27 million, +12 basis points) and one additional day in the quarter (+$9 million), partially offset by lower loan balances (-$26 million, -7 basis points).
•Interest income on investment securities decreased $3 million and improved net interest margin by 1 basis point, primarily due to the impact of a decline in lower-yielding securities balances.
•Interest income on short-term investments increased $22 million and improved net interest margin by 6 basis points, primarily reflecting an increase of $1.0 billion in deposits with the Federal Reserve Bank (+$14 million, +3 basis points), higher short-term rates (+$7 million, +3 basis points) and one additional day in the quarter (+$1 million).
•Interest expense on deposits increased $70 million and reduced net interest margin by 32 basis points, reflecting higher average interest-bearing deposit balances (-$36 million, -17 basis points), higher rates ($-32 million, -15 basis points) and one additional day in the quarter (-$2 million).
•Interest expense on debt decreased $21 million and improved net interest margin by 11 basis points, primarily driven by decreases of $1.7 billion in short-term FHLB advances (+$24 million, +11 basis points) and $690 million in medium- and long-term debt (+$5 million, +3 basis points), partially offset by higher rates (-$6 million, -3 basis points) and one additional day in the quarter (-$2 million).
The net impact of higher rates to third quarter 2023 net interest income was a decrease of $4 million and a reduction of 3 basis points to net interest margin.
3

Credit Quality
“With only modest net charge-offs, following three consecutive quarters of net recoveries, our credit quality remained very strong,” said Farmer. “Credit migration continued in line with expectations and was more concentrated in customers or businesses with greater relative exposure to elevated rates and inflationary pressures. While the economic forecast improved slightly from the prior quarter, the economic outlook remained uncertain which, coupled with lower loan balances, contributed to an uptick in the allowance for credit losses to 1.38% of total loans. Consistent with our proven credit discipline, we continue to closely monitor our portfolio and expect further migration to remain manageable.”

(dollar amounts in millions) | 3rd Qtr '23 |  | 2nd Qtr '23 |  | 3rd Qtr '22
Charge-offs | $ | 14 |  |  | $ | 11 |  |  | $ | 26 |
Recoveries | 8 |  |  | 13 |  |  | 13 |
Net charge-offs (recoveries) | 6 |  |  | (2) |  |  | 13 |
Net charge-offs (recoveries)/Average total loans | 0.05 | % |  | (0.01 | %) |  | 0.10 | %
Provision for credit losses | $ | 14 |  |  | $ | 33 |  |  | $ | 28 |
Nonperforming loans | 154 |  |  | 186 |  |  | 262 |
Nonperforming assets (NPAs) | 154 |  |  | 186 |  |  | 262 |
NPAs/Total loans and foreclosed property | 0.29 | % |  | 0.33 | % |  | 0.51 | %
Loans past due 90 days or more and still accruing | $ | 45 |  |  | $ | 9 |  |  | $ | 72 |
Allowance for loan losses | 694 |  |  | 684 |  |  | 576 |
Allowance for credit losses on lending-related commitments (a) | 42 |  |  | 44 |  |  | 48 |
Total allowance for credit losses | 736 |  |  | 728 |  |  | 624 |
Allowance for credit losses/Period-end total loans | 1.38 | % |  | 1.31 | % |  | 1.21 | %
Allowance for credit losses/Nonperforming loans | 4.8x |  | 3.9x |  | 2.4x

(a) Included in accrued expenses and other liabilities on the Consolidated Balance Sheets.

•The allowance for credit losses (which totaled $736 million at September 30, 2023) increased by 7 basis points to 1.38% of total loans, reflecting the continuation of an uncertain economic outlook and credit migration, as well as changes in portfolio composition and lower loan volumes.
•Criticized loans increased $242 million to $2.3 billion, or 4.3% of total loans. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.
◦The increase in criticized loans was primarily driven by Commercial Real Estate.
•Nonperforming assets decreased $32 million to $154 million, or 0.29% of total loans and foreclosed property, compared to 0.33% in second quarter 2023.
•Net charge-offs totaled $6 million, compared to net recoveries of $2 million in second quarter 2023.
Strategic Lines of Business
Comerica's operations are strategically aligned into three major business segments: the Commercial Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. For a summary of business segment quarterly results, see the Business Segment Financial Results tables included later in this press release. From time to time, Comerica may make reclassifications among the segments to reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. The financial results provided are based on the internal business unit structures of Comerica and methodologies in effect at September 30, 2023. A discussion of business segment year-to-date results will be included in Comerica’s Third Quarter 2023 Form 10-Q.
Conference Call and Webcast
Comerica will host a conference call and live webcast to review third quarter 2023 financial results at 7 a.m. CT Friday, October 20, 2023. Interested parties may access the conference call by calling (877) 484-6065 or (201) 689-8846. The call and supplemental financial information, as well as a replay of the Webcast, can also be accessed via Comerica's "Investor Relations" page at www.comerica.com.
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Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: the Commercial Bank, the Retail Bank and Wealth Management. Comerica is one of the 25 largest U.S. commercial bank financial holding companies and focuses on building relationships and helping people and businesses be successful. Comerica provides more than 400 banking centers across the country with locations in Arizona, California, Florida, Michigan and Texas. Founded 174 years ago in Detroit, Michigan, Comerica continues to expand into new regions, including its Southeast Market, based in North Carolina, and Mountain West Market in Colorado. Comerica has offices in 17 states and services 14 of the 15 largest U.S. metropolitan areas, as well as 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.
5

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, 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 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 include credit risks (changes in customer behavior; unfavorable developments concerning credit quality; and declines or other changes in the businesses or industries of Comerica's customers); market risks (changes in monetary and fiscal policies; fluctuations in interest rates and their impact on deposit pricing; and transitions away from LIBOR towards new interest rate benchmarks); liquidity risks (Comerica's ability to maintain adequate sources of funding and liquidity; reductions in Comerica's credit rating; and the interdependence of financial service companies); technology risks (cybersecurity risks and heightened legislative and regulatory focus on cybersecurity and data privacy); operational risks (operational, systems or infrastructure failures; reliance on other companies to provide certain key components of business infrastructure; the impact of legal and regulatory proceedings or determinations; losses due to fraud; and controls and procedures failures); compliance risks (changes in regulation or oversight, or changes in Comerica’s status with respect to existing regulations or oversight; the effects of stringent capital requirements; and the impacts of future legislative, administrative or judicial changes to tax regulations); strategic risks (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 implementation of Comerica's strategies and business initiatives; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; and any future strategic acquisitions or divestitures); and other general risks (changes in general economic, political or industry conditions; negative effects from inflation; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events, including pandemics; physical or transition risks related to climate change; 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 13 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2022, as updated by "Item 1A. Risk Factors" beginning on page 63 of Comerica's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023. 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 Contacts: | Investor Contacts:
Nicole Hogan | Kelly Gage
(214) 462-6657 | (214) 462-6831
Louis H. Mora | Morgan Mathers
(214) 462-6669 | (214) 462-6731

6

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) |  |  |
Comerica Incorporated and Subsidiaries |  |  |  |  |  |
| Three Months Ended |  | Nine Months Ended
| September 30, | June 30, | September 30, |  | September 30,
(in millions, except per share data) | 2023 | 2023 | 2022 |  | 2023 | 2022
PER COMMON SHARE AND COMMON STOCK DATA |  |  |  |  |  |
Diluted earnings per common share | $ | 1.84 |  | $ | 2.01 |  | $ | 2.60 |  |  | $ | 6.24 |  | $ | 5.88 |
Cash dividends declared | 0.71 |  | 0.71 |  | 0.68 |  |  | 2.13 |  | 2.04 |
Average diluted shares (in thousands) | 132,655 |  | 132,356 |  | 132,479 |  |  | 132,520 |  | 132,614 |
PERFORMANCE RATIOS |  |  |  |  |  |
Return on average common shareholders' equity | 19.50 | % | 19.38 | % | 23.28 | % |  | 21.02 | % | 16.26 | %
Return on average assets | 1.12 |  | 1.21 |  | 1.63 |  |  | 1.29 |  | 1.21 |
Efficiency ratio (a) | 61.86 |  | 57.70 |  | 50.75 |  |  | 58.26 |  | 57.67 |
CAPITAL |  |  |  |  |  |
Common equity tier 1 capital (b), (c) | $ | 8,472 |  | $ | 8,311 |  | $ | 7,616 |  |  |  |
Tier 1 capital (b), (c) | 8,866 |  | 8,705 |  | 8,010 |  |  |  |
Risk-weighted assets (b) | 78,499 |  | 80,624 |  | 76,661 |  |  |  |
Common equity tier 1 capital ratio (b), (c) | 10.79 | % | 10.31 | % | 9.93 | % |  |  |
Tier 1 capital ratio (b), (c) | 11.29 |  | 10.80 |  | 10.45 |  |  |  |
Total capital ratio (b) | 13.16 |  | 12.79 |  | 12.41 |  |  |  |
Leverage ratio (b) | 9.60 |  | 9.38 |  | 9.20 |  |  |  |
Common shareholders' equity per share of common stock | $ | 34.73 |  | $ | 39.48 |  | $ | 35.70 |  |  |  |
Tangible common equity per share of common stock (c) | 29.85 |  | 34.59 |  | 30.77 |  |  |  |
Common equity ratio | 5.34 | % | 5.73 | % | 5.55 | % |  |  |
Tangible common equity ratio (c) | 4.62 |  | 5.06 |  | 4.82 |  |  |  |
AVERAGE BALANCES |  |  |  |  |  |
Commercial loans | $ | 29,721 |  | $ | 31,663 |  | $ | 30,573 |  |  | $ | 30,631 |  | $ | 29,597 |
Real estate construction loans | 4,294 |  | 3,708 |  | 2,457 |  |  | 3,786 |  | 2,482 |
Commercial mortgage loans | 13,814 |  | 13,801 |  | 12,180 |  |  | 13,694 |  | 11,927 |
Lease financing | 770 |  | 776 |  | 690 |  |  | 770 |  | 656 |
International loans | 1,241 |  | 1,268 |  | 1,234 |  |  | 1,245 |  | 1,252 |
Residential mortgage loans | 1,915 |  | 1,858 |  | 1,761 |  |  | 1,869 |  | 1,773 |
Consumer loans | 2,232 |  | 2,294 |  | 2,218 |  |  | 2,281 |  | 2,128 |
Total loans | 53,987 |  | 55,368 |  | 51,113 |  |  | 54,276 |  | 49,815 |
Earning assets | 80,996 |  | 82,311 |  | 77,012 |  |  | 80,241 |  | 80,201 |
Total assets | 89,150 |  | 90,355 |  | 85,422 |  |  | 88,229 |  | 88,440 |
Noninterest-bearing deposits | 29,016 |  | 30,559 |  | 41,820 |  |  | 31,916 |  | 42,713 |
Interest-bearing deposits | 36,867 |  | 33,773 |  | 32,156 |  |  | 34,093 |  | 34,158 |
Total deposits | 65,883 |  | 64,332 |  | 73,976 |  |  | 66,009 |  | 76,871 |
Common shareholders' equity | 4,984 |  | 5,544 |  | 5,897 |  |  | 5,286 |  | 6,452 |
Total shareholders' equity | 5,378 |  | 5,938 |  | 6,291 |  |  | 5,680 |  | 6,846 |
NET INTEREST INCOME |  |  |  |  |  |
Net interest income | $ | 601 |  | $ | 621 |  | $ | 707 |  |  | $ | 1,930 |  | $ | 1,724 |
Net interest margin | 2.84 | % | 2.93 | % | 3.51 | % |  | 3.11 | % | 2.78 | %
CREDIT QUALITY |  |  |  |  |  |
Nonperforming assets | $ | 154 |  | $ | 186 |  | $ | 262 |  |  |  |
Loans past due 90 days or more and still accruing | 45 |  | 9 |  | 72 |  |  |  |
Net charge-offs (recoveries) | 6 |  | (2) |  | 13 |  |  | $ | 2 |  | $ | 21 |
Allowance for loan losses | 694 |  | 684 |  | 576 |  |  |  |
Allowance for credit losses on lending-related commitments | 42 |  | 44 |  | 48 |  |  |  |
Total allowance for credit losses | 736 |  | 728 |  | 624 |  |  |  |
Allowance for credit losses as a percentage of total loans | 1.38 | % | 1.31 | % | 1.21 | % |  |  |
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.05 |  | (0.01) |  | 0.10 |  |  | 0.01 | % | 0.06 | %
Nonperforming assets as a percentage of total loans and foreclosed property | 0.29 |  | 0.33 |  | 0.51 |  |  |  |
Allowance for credit losses as a multiple of total nonperforming loans | 4.8x | 3.9x | 2.4x |  |  |
OTHER KEY INFORMATION |  |  |  |  |  |
Number of banking centers | 408 |  | 409 |  | 410 |  |  |  |
Number of employees - full time equivalent | 7,667 |  | 7,672 |  | 7,432 |  |  |  |

(a) Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
(b) September 30, 2023 ratios are estimated.
(c) See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios.
7

CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries |  |  |  |
| September 30, | June 30, | December 31, | September 30,
(in millions, except share data) | 2023 | 2023 | 2022 | 2022
| (unaudited) | (unaudited) |  | (unaudited)
ASSETS |  |  |  |
Cash and due from banks | $ | 1,228 |  | $ | 1,413 |  | $ | 1,758 |  | $ | 1,735
Interest-bearing deposits with banks | 6,884 |  | 8,810 |  | 4,524 |  | 4,235
Other short-term investments | 403 |  | 389 |  | 157 |  | 159
Investment securities available-for-sale | 16,323 |  | 17,415 |  | 19,012 |  | 19,452
Commercial loans | 29,007 |  | 31,745 |  | 30,909 |  | 30,713
Real estate construction loans | 4,545 |  | 3,983 |  | 3,105 |  | 2,617
Commercial mortgage loans | 13,721 |  | 13,851 |  | 13,306 |  | 12,438
Lease financing | 790 |  | 756 |  | 760 |  | 713
International loans | 1,194 |  | 1,282 |  | 1,197 |  | 1,216
Residential mortgage loans | 1,905 |  | 1,894 |  | 1,814 |  | 1,753
Consumer loans | 2,236 |  | 2,253 |  | 2,311 |  | 2,262
Total loans | 53,398 |  | 55,764 |  | 53,402 |  | 51,712
Allowance for loan losses | (694) |  | (684) |  | (610) |  | (576)
Net loans | 52,704 |  | 55,080 |  | 52,792 |  | 51,136
Premises and equipment | 410 |  | 397 |  | 400 |  | 412
Accrued income and other assets | 7,754 |  | 7,257 |  | 6,763 |  | 7,014
Total assets | $ | 85,706 |  | $ | 90,761 |  | $ | 85,406 |  | $ | 84,143
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |
Noninterest-bearing deposits | $ | 29,922 |  | $ | 31,067 |  | $ | 39,945 |  | $ | 42,296
Money market and interest-bearing checking deposits | 26,298 |  | 24,397 |  | 26,290 |  | 25,663
Savings deposits | 2,521 |  | 2,760 |  | 3,225 |  | 3,375
Customer certificates of deposit | 3,401 |  | 2,630 |  | 1,762 |  | 1,661
Other time deposits | 5,011 |  | 5,159 |  | 124 |  | —
Foreign office time deposits | 5 |  | 2 |  | 51 |  | 21
Total interest-bearing deposits | 37,236 |  | 34,948 |  | 31,452 |  | 30,720
Total deposits | 67,158 |  | 66,015 |  | 71,397 |  | 73,016
Short-term borrowings | 4,812 |  | 9,558 |  | 3,211 |  | 508
Accrued expenses and other liabilities | 2,715 |  | 2,632 |  | 2,593 |  | 2,534
Medium- and long-term debt | 6,049 |  | 6,961 |  | 3,024 |  | 3,016
Total liabilities | 80,734 |  | 85,166 |  | 80,225 |  | 79,074
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 |  | 394 |  | 394
Common stock - $5 par value: |  |  |  |
Authorized - 325,000,000 shares |  |  |  |
Issued - 228,164,824 shares | 1,141 |  | 1,141 |  | 1,141 |  | 1,141
Capital surplus | 2,220 |  | 2,212 |  | 2,220 |  | 2,209
Accumulated other comprehensive loss | (4,540) |  | (3,756) |  | (3,742) |  | (3,587)
Retained earnings | 11,796 |  | 11,648 |  | 11,258 |  | 11,005
Less cost of common stock in treasury - 96,374,736 shares at 9/30/23, 96,449,879 shares at 6/30/23, 97,197,962 shares at 12/31/22 and 97,244,273 shares at 9/30/22 | (6,039) |  | (6,044) |  | (6,090) |  | (6,093)
Total shareholders' equity | 4,972 |  | 5,595 |  | 5,181 |  | 5,069
Total liabilities and shareholders' equity | $ | 85,706 |  | $ | 90,761 |  | $ | 85,406 |  | $ | 84,143

8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Comerica Incorporated and Subsidiaries |  |  |  |  |
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
(in millions, except per share data) | 2023 | 2022 |  | 2023 | 2022
| (unaudited) | (unaudited) |  | (unaudited) | (unaudited)
INTEREST INCOME |  |  |  |  |
Interest and fees on loans | $ | 862 |  | $ | 597 |  |  | $ | 2,491 |  | $ | 1,434 |
Interest on investment securities | 105 |  | 119 |  |  | 326 |  | 296 |
Interest on short-term investments | 136 |  | 34 |  |  | 309 |  | 66 |
Total interest income | 1,103 |  | 750 |  |  | 3,126 |  | 1,796 |
INTEREST EXPENSE |  |  |  |  |
Interest on deposits | 271 |  | 16 |  |  | 590 |  | 24 |
Interest on short-term borrowings | 125 |  | 1 |  |  | 333 |  | 1 |
Interest on medium- and long-term debt | 106 |  | 26 |  |  | 273 |  | 47 |
Total interest expense | 502 |  | 43 |  |  | 1,196 |  | 72 |
Net interest income | 601 |  | 707 |  |  | 1,930 |  | 1,724 |
Provision for credit losses | 14 |  | 28 |  |  | 77 |  | 27 |
Net interest income after provision for credit losses | 587 |  | 679 |  |  | 1,853 |  | 1,697 |
NONINTEREST INCOME |  |  |  |  |
Card fees | 71 |  | 67 |  |  | 212 |  | 205 |
Fiduciary income | 59 |  | 58 |  |  | 179 |  | 178 |
Service charges on deposit accounts | 47 |  | 50 |  |  | 140 |  | 148 |
Capital markets income (a) | 35 |  | 48 |  |  | 113 |  | 120 |
Commercial lending fees (a) | 19 |  | 17 |  |  | 55 |  | 50 |
Bank-owned life insurance | 12 |  | 12 |  |  | 36 |  | 37 |
Letter of credit fees | 10 |  | 10 |  |  | 31 |  | 28 |
Brokerage fees | 6 |  | 6 |  |  | 22 |  | 14 |
Other noninterest income (a) | 36 |  | 10 |  |  | 92 |  | 10 |
Total noninterest income | 295 |  | 278 |  |  | 880 |  | 790 |
NONINTEREST EXPENSES |  |  |  |  |
Salaries and benefits expense | 315 |  | 307 |  |  | 947 |  | 890 |
Outside processing fee expense | 75 |  | 64 |  |  | 207 |  | 188 |
Software expense | 44 |  | 40 |  |  | 127 |  | 120 |
Occupancy expense | 44 |  | 44 |  |  | 126 |  | 122 |
FDIC insurance expense | 19 |  | 8 |  |  | 48 |  | 24 |
Equipment expense | 12 |  | 12 |  |  | 36 |  | 36 |
Advertising expense | 12 |  | 9 |  |  | 30 |  | 24 |
Other noninterest expenses | 34 |  | 18 |  |  | 120 |  | 53 |
Total noninterest expenses | 555 |  | 502 |  |  | 1,641 |  | 1,457 |
Income before income taxes | 327 |  | 455 |  |  | 1,092 |  | 1,030 |
Provision for income taxes | 76 |  | 104 |  |  | 244 |  | 229 |
NET INCOME | 251 |  | 351 |  |  | 848 |  | 801 |
Less: |  |  |  |  |
Income allocated to participating securities | 1 |  | 2 |  |  | 4 |  | 4 |
Preferred stock dividends | 6 |  | 6 |  |  | 17 |  | 17 |
Net income attributable to common shares | $ | 244 |  | $ | 343 |  |  | $ | 827 |  | $ | 780 |
Earnings per common share: |  |  |  |  |
Basic | $ | 1.85 |  | $ | 2.63 |  |  | $ | 6.27 |  | $ | 5.96 |
Diluted | 1.84 |  | 2.60 |  |  | 6.24 |  | 5.88 |
Comprehensive (loss) income | (533) |  | (1,282) |  |  | 50 |  | (2,574) |
Cash dividends declared on common stock | 94 |  | 89 |  |  | 282 |  | 267 |
Cash dividends declared per common share | 0.71 |  | 0.68 |  |  | 2.13 |  | 2.04 |

(a) Adjusted 2022 amounts. See Reconciliations of Previously Reported Balances.
9

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |
| Third | Second | First | Fourth | Third |  | Third Quarter 2023 Compared to:
| Quarter | Quarter | Quarter | Quarter | Quarter |  | Second Quarter 2023 |  | Third Quarter 2022
(in millions, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 |  | Amount | Percent |  | Amount | Percent
INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
Interest and fees on loans | $ | 862 |  | $ | 852 |  | $ | 777 |  | $ | 719 |  | $ | 597 |  |  | $ | 10 |  | 1 | % |  | $ | 265 |  | 44 | %
Interest on investment securities | 105 |  | 108 |  | 113 |  | 118 |  | 119 |  |  | (3) |  | (2) |  |  | (14) |  | (10) |
Interest on short-term investments | 136 |  | 114 |  | 59 |  | 39 |  | 34 |  |  | 22 |  | 19 |  |  | 102 |  | n/m
Total interest income | 1,103 |  | 1,074 |  | 949 |  | 876 |  | 750 |  |  | 29 |  | 3 |  |  | 353 |  | 47 |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |
Interest on deposits | 271 |  | 201 |  | 118 |  | 78 |  | 16 |  |  | 70 |  | 35 |  |  | 255 |  | n/m
Interest on short-term borrowings | 125 |  | 142 |  | 66 |  | 16 |  | 1 |  |  | (17) |  | (12) |  | 124 |  | n/m
Interest on medium- and long-term debt | 106 |  | 110 |  | 57 |  | 40 |  | 26 |  |  | (4) |  | (4) |  |  | 80 |  | n/m
Total interest expense | 502 |  | 453 |  | 241 |  | 134 |  | 43 |  |  | 49 |  | 11 |  |  | 459 |  | n/m
Net interest income | 601 |  | 621 |  | 708 |  | 742 |  | 707 |  |  | (20) |  | (3) |  |  | (106) |  | (15) |
Provision for credit losses | 14 |  | 33 |  | 30 |  | 33 |  | 28 |  |  | (19) |  | (57) |  |  | (14) |  | (50)
Net interest income after provision for credit losses | 587 |  | 588 |  | 678 |  | 709 |  | 679 |  |  | (1) |  | — |  |  | (92) |  | (13) |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
Card fees | 71 |  | 72 |  | 69 |  | 68 |  | 67 |  |  | (1) |  | (2) |  |  | 4 |  | 5 |
Fiduciary income | 59 |  | 62 |  | 58 |  | 55 |  | 58 |  |  | (3) |  | (4) |  |  | 1 |  | 2 |
Service charges on deposit accounts | 47 |  | 47 |  | 46 |  | 47 |  | 50 |  |  | — |  | — |  |  | (3) |  | (7) |
Capital markets income (a) | 35 |  | 39 |  | 39 |  | 34 |  | 48 |  |  | (4) |  | (10) |  |  | (13) |  | (27) |
Commercial lending fees (a) | 19 |  | 18 |  | 18 |  | 18 |  | 17 |  |  | 1 |  | 4 |  |  | 2 |  | 9 |
Bank-owned life insurance | 12 |  | 14 |  | 10 |  | 10 |  | 12 |  |  | (2) |  | (8) |  |  | — |  | — |
Letter of credit fees | 10 |  | 11 |  | 10 |  | 10 |  | 10 |  |  | (1) |  | (8) |  |  | — |  | — |
Brokerage fees | 6 |  | 8 |  | 8 |  | 7 |  | 6 |  |  | (2) |  | (26) |  |  | — |  | — |
Other noninterest income (a) | 36 |  | 32 |  | 24 |  | 29 |  | 10 |  |  | 4 |  | 11 |  |  | 26 |  | n/m
Total noninterest income | 295 |  | 303 |  | 282 |  | 278 |  | 278 |  |  | (8) |  | (2) |  |  | 17 |  | 6 |
NONINTEREST EXPENSES |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits expense | 315 |  | 306 |  | 326 |  | 318 |  | 307 |  |  | 9 |  | 3 |  |  | 8 |  | 3 |
Outside processing fee expense | 75 |  | 68 |  | 64 |  | 63 |  | 64 |  |  | 7 |  | 11 |  |  | 11 |  | 19 |
Software expense | 44 |  | 43 |  | 40 |  | 41 |  | 40 |  |  | 1 |  | 3 |  |  | 4 |  | 7 |
Occupancy expense | 44 |  | 41 |  | 41 |  | 53 |  | 44 |  |  | 3 |  | 8 |  |  | — |  | — |
FDIC insurance expense | 19 |  | 16 |  | 13 |  | 7 |  | 8 |  |  | 3 |  | 19 |  |  | 11 |  | n/m
Equipment expense | 12 |  | 12 |  | 12 |  | 14 |  | 12 |  |  | — |  | — |  |  | — |  | — |
Advertising expense | 12 |  | 10 |  | 8 |  | 14 |  | 9 |  |  | 2 |  | 21 |  |  | 3 |  | 29 |
Other noninterest expenses | 34 |  | 39 |  | 47 |  | 31 |  | 18 |  |  | (5) |  | (11) |  |  | 16 |  | 99
Total noninterest expenses | 555 |  | 535 |  | 551 |  | 541 |  | 502 |  |  | 20 |  | 4 |  |  | 53 |  | 11 |
Income before income taxes | 327 |  | 356 |  | 409 |  | 446 |  | 455 |  |  | (29) |  | (8) |  |  | (128) |  | (28) |
Provision for income taxes | 76 |  | 83 |  | 85 |  | 96 |  | 104 |  |  | (7) |  | (8) |  |  | (28) |  | (27) |
NET INCOME | 251 |  | 273 |  | 324 |  | 350 |  | 351 |  |  | (22) |  | (8) |  |  | (100) |  | (29) |
Less: |  |  |  |  |  |  |  |  |  |  |
Income allocated to participating securities | 1 |  | 2 |  | 1 |  | 2 |  | 2 |  |  | (1) |  | — |  |  | (1) |  | (29) |
Preferred stock dividends | 6 |  | 5 |  | 6 |  | 6 |  | 6 |  |  | 1 |  | — |  |  | — |  | — |
Net income attributable to common shares | $ | 244 |  | $ | 266 |  | $ | 317 |  | $ | 342 |  | $ | 343 |  |  | $ | (22) |  | (9 | %) |  | $ | (99) |  | (29 | %)
Earnings per common share: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 1.85 |  | $ | 2.02 |  | $ | 2.41 |  | $ | 2.61 |  | $ | 2.63 |  |  | $ | (0.17) |  | (8 | %) |  | $ | (0.78) |  | (30 | %)
Diluted | 1.84 |  | 2.01 |  | 2.39 |  | 2.58 |  | 2.60 |  |  | (0.17) |  | (8) |  |  | (0.76) |  | (29) |
Comprehensive (loss) income | (533) |  | (312) |  | 895 |  | 195 |  | (1,282) |  |  | (221) |  | 71 |  | 749 |  | (58) |
Cash dividends declared on common stock | 94 |  | 94 |  | 94 |  | 89 |  | 89 |  |  | — |  | — |  |  | 5 |  | 5 |
Cash dividends declared per common share | 0.71 |  | 0.71 |  | 0.71 |  | 0.68 |  | 0.68 |  |  | — |  | — |  |  | 0.03 |  | 4 |

(a) Adjusted 2022 amounts. See Reconciliations of Previously Reported Balances.
n/m - not meaningful
10

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |
| 2023 |  | 2022
(in millions) | 3rd Qtr |  | 2nd Qtr | 1st Qtr |  | 4th Qtr |  |  | 3rd Qtr
Balance at beginning of period: |  |  |  |  |  |  |  |  |
Allowance for loan losses | $ | 684 |  |  | $ | 641 |  | $ | 610 |  |  | $ | 576 |  |  |  | $ | 563 |
Allowance for credit losses on lending-related commitments | 44 |  |  | 52 |  | 51 |  |  | 48 |  |  |  | 46 |
Allowance for credit losses | 728 |  |  | 693 |  | 661 |  |  | 624 |  |  |  | 609 |
Loan charge-offs: |  |  |  |  |  |  |  |  |
Commercial | 9 |  |  | 9 |  | 11 |  |  | 10 |  |  |  | 25 |
Commercial mortgage | 3 |  |  | — |  | — |  |  | — |  |  |  | — |
International | 1 |  |  | 1 |  | — |  |  | — |  |  |  | — |
Consumer | 1 |  |  | 1 |  | 1 |  |  | 1 |  |  |  | 1 |
Total loan charge-offs | 14 |  |  | 11 |  | 12 |  |  | 11 |  |  |  | 26 |
Recoveries on loans previously charged-off: |  |  |  |  |  |  |  |  |
Commercial | 5 |  |  | 12 |  | 13 |  |  | 13 |  |  |  | 12 |
Real estate construction | — |  |  | — |  | — |  |  | 1 |  |  |  | — |
Commercial mortgage | 2 |  |  | 1 |  | — |  |  | — |  |  |  | — |
Residential mortgage | — |  |  | — |  | — |  |  | — |  |  |  | 1 |
Consumer | 1 |  |  | — |  | 1 |  |  | 1 |  |  |  | — |
Total recoveries | 8 |  |  | 13 |  | 14 |  |  | 15 |  |  |  | 13 |
Net loan charge-offs (recoveries) | 6 |  |  | (2) |  | (2) |  |  | (4) |  |  |  | 13 |
Provision for credit losses: |  |  |  |  |  |  |  |  |
Provision for loan losses | 16 |  |  | 41 |  | 29 |  |  | 30 |  |  |  | 26 |
Provision for credit losses on lending-related commitments | (2) |  |  | (8) |  | 1 |  |  | 3 |  |  |  | 2 |
Provision for credit losses | 14 |  |  | 33 |  | 30 |  |  | 33 |  |  |  | 28 |
Balance at end of period: |  |  |  |  |  |  |  |  |
Allowance for loan losses | 694 |  |  | 684 |  | 641 |  |  | 610 |  |  |  | 576 |
Allowance for credit losses on lending-related commitments | 42 |  |  | 44 |  | 52 |  |  | 51 |  |  |  | 48 |
Allowance for credit losses | $ | 736 |  |  | $ | 728 |  | $ | 693 |  |  | $ | 661 |  |  |  | $ | 624 |
Allowance for credit losses as a percentage of total loans | 1.38 | % |  | 1.31 | % | 1.26 | % |  | 1.24 | % |  |  | 1.21 | %
Net loan charge-offs (recoveries) as a percentage of average total loans | 0.05 |  |  | (0.01) |  | (0.01) |  |  | (0.03) |  |  |  | 0.10 |

11

NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |
| 2023 |  | 2022
(in millions) | 3rd Qtr |  | 2nd Qtr | 1st Qtr |  | 4th Qtr |  |  | 3rd Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS |  |  |  |  |  |  |  |  |
Nonaccrual loans: |  |  |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |  |  |
Commercial | $ | 83 |  |  | $ | 93 |  | $ | 134 |  |  | $ | 142 |  |  |  | $ | 154 |
Real estate construction | 2 |  |  | 2 |  | 3 |  |  | 3 |  |  |  | 4 |
Commercial mortgage | 30 |  |  | 37 |  | 24 |  |  | 23 |  |  |  | 25 |
International | 3 |  |  | 4 |  | 3 |  |  | 3 |  |  |  | 5 |
Total nonaccrual business loans | 118 |  |  | 136 |  | 164 |  |  | 171 |  |  |  | 188 |
Retail loans: |  |  |  |  |  |  |  |  |
Residential mortgage | 19 |  |  | 33 |  | 39 |  |  | 53 |  |  |  | 56 |
Consumer: |  |  |  |  |  |  |  |  |
Home equity | 17 |  |  | 17 |  | 18 |  |  | 15 |  |  |  | 14 |
Other consumer | — |  |  | — |  | — |  |  | 1 |  |  |  | 1 |
Total nonaccrual retail loans | 36 |  |  | 50 |  | 57 |  |  | 69 |  |  |  | 71 |
Total nonaccrual loans | 154 |  |  | 186 |  | 221 |  |  | 240 |  |  |  | 259 |
Reduced-rate loans | n/a |  | n/a | n/a |  | 4 |  |  |  | 3 |
Total nonperforming loans | 154 |  |  | 186 |  | 221 |  |  | 244 |  |  |  | 262 |
Foreclosed property | — |  |  | — |  | — |  |  | — |  |  |  | — |
Total nonperforming assets | $ | 154 |  |  | $ | 186 |  | $ | 221 |  |  | $ | 244 |  |  |  | $ | 262 |
Nonperforming loans as a percentage of total loans | 0.29 | % |  | 0.33 | % | 0.40 | % |  | 0.46 | % |  |  | 0.51 | %
Nonperforming assets as a percentage of total loans and foreclosed property | 0.29 |  |  | 0.33 |  | 0.40 |  |  | 0.46 |  |  |  | 0.51 |
Allowance for credit losses as a multiple of total nonperforming loans | 4.8x |  | 3.9x | 3.1x |  | 2.7x |  |  | 2.4x
Loans past due 90 days or more and still accruing | $ | 45 |  |  | $ | 9 |  | $ | 20 |  |  | $ | 23 |  |  |  | $ | 72 |
ANALYSIS OF NONACCRUAL LOANS |  |  |  |  |  |  |  |  |
Nonaccrual loans at beginning of period | $ | 186 |  |  | $ | 221 |  | $ | 240 |  |  | $ | 259 |  |  |  | $ | 262 |
Loans transferred to nonaccrual (a) | 14 |  |  | 17 |  | 9 |  |  | 16 |  |  |  | 45 |
Nonaccrual loan gross charge-offs | (14) |  |  | (11) |  | (12) |  |  | (11) |  |  |  | (26) |
Loans transferred to accrual status (a) | (7) |  |  | — |  | (7) |  |  | (7) |  |  |  | — |
Nonaccrual loans sold | — |  |  | (3) |  | (1) |  |  | (2) |  |  |  | (4) |
Payments/other (b) | (25) |  |  | (38) |  | (8) |  |  | (15) |  |  |  | (18) |
Nonaccrual loans at end of period | $ | 154 |  |  | $ | 186 |  | $ | 221 |  |  | $ | 240 |  |  |  | $ | 259 |

(a)Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(b)Includes net changes related to nonaccrual loans with balances less than or equal to $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property.
n/a Reduced-rate loans represented troubled debt restructurings (TDRs) which have been renegotiated to less than the original contractual rates. Effective January 1, 2023, the Corporation prospectively adopted the provisions of Accounting Standards Update No. 2022-02, "Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures," which eliminated the accounting for TDRs.
12

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |
| Nine Months Ended
| September 30, 2023 |  | September 30, 2022
| Average |  | Average |  | Average |  | Average
(dollar amounts in millions) | Balance | Interest | Rate |  | Balance | Interest | Rate
Commercial loans (a) | $ | 30,631 |  | $ | 1,263 |  | 5.52 | % |  | $ | 29,597 |  | $ | 876 |  | 3.96 | %
Real estate construction loans | 3,786 |  | 228 |  | 8.05 |  |  | 2,482 |  | 81 |  | 4.36 |
Commercial mortgage loans | 13,694 |  | 723 |  | 7.06 |  |  | 11,927 |  | 324 |  | 3.63 |
Lease financing | 770 |  | 25 |  | 4.24 |  |  | 656 |  | 13 |  | 2.65 |
International loans | 1,245 |  | 73 |  | 7.89 |  |  | 1,252 |  | 36 |  | 3.88 |
Residential mortgage loans | 1,869 |  | 49 |  | 3.47 |  |  | 1,773 |  | 41 |  | 3.05 |
Consumer loans | 2,281 |  | 130 |  | 7.65 |  |  | 2,128 |  | 63 |  | 3.98 |
Total loans | 54,276 |  | 2,491 |  | 6.14 |  |  | 49,815 |  | 1,434 |  | 3.85 |
Mortgage-backed securities (b) | 15,865 |  | 318 |  | 2.28 |  |  | 16,140 |  | 274 |  | 2.08 |
U.S. Treasury securities (c) | 1,966 |  | 8 |  | 0.53 |  |  | 2,837 |  | 22 |  | 0.98 |
Total investment securities | 17,831 |  | 326 |  | 2.10 |  |  | 18,977 |  | 296 |  | 1.93 |
Interest-bearing deposits with banks (d) | 7,815 |  | 300 |  | 5.14 |  |  | 11,232 |  | 65 |  | 0.72 |
Other short-term investments | 319 |  | 9 |  | 3.57 |  |  | 177 |  | 1 |  | 0.59 |
Total earning assets | 80,241 |  | 3,126 |  | 5.03 |  |  | 80,201 |  | 1,796 |  | 2.90 |
Cash and due from banks | 1,251 |  |  |  |  | 1,466 |  |  |
Allowance for loan losses | (646) |  |  |  |  | (566) |  |  |
Accrued income and other assets | 7,383 |  |  |  |  | 7,339 |  |  |
Total assets | $ | 88,229 |  |  |  |  | $ | 88,440 |  |  |
Money market and interest-bearing checking deposits (e) | $ | 25,519 |  | 419 |  | 2.18 |  |  | $ | 29,036 |  | 21 |  | 0.10 |
Savings deposits | 2,886 |  | 5 |  | 0.20 |  |  | 3,303 |  | 1 |  | 0.03 |
Customer certificates of deposit | 2,414 |  | 42 |  | 2.35 |  |  | 1,775 |  | 2 |  | 0.19 |
Other time deposits | 3,247 |  | 123 |  | 5.08 |  |  | — |  | — |  | — |
Foreign office time deposits | 27 |  | 1 |  | 3.90 |  |  | 44 |  | — |  | 0.63 |
Total interest-bearing deposits | 34,093 |  | 590 |  | 2.30 |  |  | 34,158 |  | 24 |  | 0.10 |
Federal funds purchased | 34 |  | 1 |  | 4.68 |  |  | 28 |  | 1 |  | 2.37 |
Other short-term borrowings | 8,268 |  | 332 |  | 5.37 |  |  | 22 |  | — |  | 3.04 |
Medium- and long-term debt | 5,772 |  | 273 |  | 6.31 |  |  | 2,750 |  | 47 |  | 2.26 |
Total interest-bearing sources | 48,167 |  | 1,196 |  | 3.30 |  |  | 36,958 |  | 72 |  | 0.26 |
Noninterest-bearing deposits | 31,916 |  |  |  |  | 42,713 |  |  |
Accrued expenses and other liabilities | 2,466 |  |  |  |  | 1,923 |  |  |
Shareholders' equity | 5,680 |  |  |  |  | 6,846 |  |  |
Total liabilities and shareholders' equity | $ | 88,229 |  |  |  |  | $ | 88,440 |  |  |
Net interest income/rate spread |  | $ | 1,930 |  | 1.73 |  |  |  | $ | 1,724 |  | 2.64 |
Impact of net noninterest-bearing sources of funds |  |  | 1.38 |  |  |  |  | 0.14 |
Net interest margin (as a percentage of average earning assets) |  |  | 3.11 | % |  |  |  | 2.78 | %

(a)Interest income on commercial loans included $(432) million and $45 million of business loan swap (expense) income for the nine months ended September 30, 2023 and 2022, respectively.
(b)Average balances included $2.8 billion and $1.4 billion of unrealized losses for the nine months ended September 30, 2023 and 2022, respectively; yields calculated gross of these unrealized gains and losses.
(c)Average balances included $122 million and $103 million of unrealized losses for the nine months ended September 30, 2023 and 2022, respectively; yields calculated gross of these unrealized gains and losses.
(d)Average balances included $2 million and excluded $996 million of collateral posted and netted against derivative liability positions for the nine months ended September 30, 2023 and 2022, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $213 million and $110 million of collateral received and netted against derivative asset positions for the nine months ended September 30, 2023 and 2022, respectively; rates calculated gross of derivative netting amounts.
13

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |  |
| Three Months Ended
| September 30, 2023 |  | June 30, 2023 |  | September 30, 2022
| Average |  | Average |  | Average |  | Average |  | Average |  | Average
(dollar amounts in millions) | Balance | Interest | Rate |  | Balance | Interest | Rate |  | Balance | Interest | Rate
Commercial loans (a) | $ | 29,721 |  | $ | 416 |  | 5.55 | % |  | $ | 31,663 |  | $ | 437 |  | 5.54 | % |  | $ | 30,573 |  | $ | 362 |  | 4.69 | %
Real estate construction loans | 4,294 |  | 90 |  | 8.29 |  |  | 3,708 |  | 75 |  | 8.11 |  |  | 2,457 |  | 33 |  | 5.44 |
Commercial mortgage loans | 13,814 |  | 257 |  | 7.38 |  |  | 13,801 |  | 245 |  | 7.12 |  |  | 12,180 |  | 141 |  | 4.59 |
Lease financing | 770 |  | 11 |  | 5.56 |  |  | 776 |  | 10 |  | 5.21 |  |  | 690 |  | 4 |  | 2.10 |
International loans | 1,241 |  | 25 |  | 7.97 |  |  | 1,268 |  | 24 |  | 7.80 |  |  | 1,234 |  | 15 |  | 4.89 |
Residential mortgage loans | 1,915 |  | 18 |  | 3.72 |  |  | 1,858 |  | 16 |  | 3.40 |  |  | 1,761 |  | 16 |  | 3.47 |
Consumer loans | 2,232 |  | 45 |  | 8.10 |  |  | 2,294 |  | 45 |  | 7.78 |  |  | 2,218 |  | 26 |  | 4.77 |
Total loans | 53,987 |  | 862 |  | 6.34 |  |  | 55,368 |  | 852 |  | 6.18 |  |  | 51,113 |  | 597 |  | 4.64 |
Mortgage-backed securities (b) | 15,205 |  | 104 |  | 2.28 |  |  | 16,004 |  | 106 |  | 2.28 |  |  | 17,752 |  | 111 |  | 2.25 |
U.S. Treasury securities (c) | 1,676 |  | 1 |  | 0.26 |  |  | 1,861 |  | 2 |  | 0.44 |  |  | 2,788 |  | 8 |  | 0.97 |
Total investment securities | 16,881 |  | 105 |  | 2.10 |  |  | 17,865 |  | 108 |  | 2.10 |  |  | 20,540 |  | 119 |  | 2.08 |
Interest-bearing deposits with banks (d) | 9,737 |  | 132 |  | 5.40 |  |  | 8,701 |  | 110 |  | 5.11 |  |  | 5,194 |  | 33 |  | 2.20 |
Other short-term investments | 391 |  | 4 |  | 4.00 |  |  | 377 |  | 4 |  | 3.75 |  |  | 165 |  | 1 |  | 0.96 |
Total earning assets | 80,996 |  | 1,103 |  | 5.21 |  |  | 82,311 |  | 1,074 |  | 5.07 |  |  | 77,012 |  | 750 |  | 3.72 |
Cash and due from banks | 1,130 |  |  |  |  | 1,163 |  |  |  |  | 1,529 |  |  |
Allowance for loan losses | (684) |  |  |  |  | (642) |  |  |  |  | (563) |  |  |
Accrued income and other assets | 7,708 |  |  |  |  | 7,523 |  |  |  |  | 7,444 |  |  |
Total assets | $ | 89,150 |  |  |  |  | $ | 90,355 |  |  |  |  | $ | 85,422 |  |  |
Money market and interest-bearing checking deposits (e) | $ | 26,043 |  | 178 |  | 2.70 |  |  | $ | 24,177 |  | 132 |  | 2.17 |  |  | $ | 27,125 |  | 15 |  | 0.21 |
Savings deposits | 2,640 |  | 2 |  | 0.23 |  |  | 2,877 |  | 2 |  | 0.21 |  |  | 3,365 |  | 1 |  | 0.05 |
Customer certificates of deposit | 3,049 |  | 24 |  | 3.08 |  |  | 2,306 |  | 12 |  | 2.20 |  |  | 1,632 |  | — |  | 0.21 |
Other time deposits | 5,121 |  | 67 |  | 5.21 |  |  | 4,395 |  | 54 |  | 4.98 |  |  | — |  | — |  | — |
Foreign office time deposits | 14 |  | — |  | 4.34 |  |  | 18 |  | 1 |  | 4.03 |  |  | 34 |  | — |  | 1.42 |
Total interest-bearing deposits | 36,867 |  | 271 |  | 2.90 |  |  | 33,773 |  | 201 |  | 2.37 |  |  | 32,156 |  | 16 |  | 0.20 |
Federal funds purchased | 11 |  | — |  | 5.31 |  |  | 9 |  | — |  | 5.00 |  |  | 79 |  | 1 |  | 2.50 |
Other short-term borrowings | 8,836 |  | 125 |  | 5.60 |  |  | 10,559 |  | 142 |  | 5.39 |  |  | 65 |  | — |  | 3.04 |
Medium- and long-term debt | 6,383 |  | 106 |  | 6.64 |  |  | 7,073 |  | 110 |  | 6.24 |  |  | 2,827 |  | 26 |  | 3.60 |
Total interest-bearing sources | 52,097 |  | 502 |  | 3.81 |  |  | 51,414 |  | 453 |  | 3.52 |  |  | 35,127 |  | 43 |  | 0.48 |
Noninterest-bearing deposits | 29,016 |  |  |  |  | 30,559 |  |  |  |  | 41,820 |  |  |
Accrued expenses and other liabilities | 2,659 |  |  |  |  | 2,444 |  |  |  |  | 2,184 |  |  |
Shareholders' equity | 5,378 |  |  |  |  | 5,938 |  |  |  |  | 6,291 |  |  |
Total liabilities and shareholders' equity | $ | 89,150 |  |  |  |  | $ | 90,355 |  |  |  |  | $ | 85,422 |  |  |
Net interest income/rate spread |  | $ | 601 |  | 1.40 |  |  |  | $ | 621 |  | 1.55 |  |  |  | $ | 707 |  | 3.24 |
Impact of net noninterest-bearing sources of funds |  |  | 1.44 |  |  |  |  | 1.38 |  |  |  |  | 0.27 |
Net interest margin (as a percentage of average earning assets) |  |  | 2.84 | % |  |  |  | 2.93 | % |  |  |  | 3.51 | %

(a)Interest income on commercial loans included $163 million, $150 million and $2 million of business loan swap expense for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively.
(b)Average balances included $3.1 billion, $2.7 billion and $2.0 billion of unrealized losses for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively; yields calculated gross of these unrealized losses.
(c)Average balances included $115 million, $117 million and $134 million of unrealized losses for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively; yields calculated gross of these unrealized losses.
(d)Average balances included $59 million, included $46 million and excluded $917 million of collateral posted and netted against derivative liability positions for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $161 million, $231 million and $164 million of collateral received and netted against derivative asset positions for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022, respectively; rates calculated gross of derivative netting amounts.
14

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) |
Comerica Incorporated and Subsidiaries |  |  |  |  |  |
|  |  |  |  | Accumulated Other Comprehensive Loss |  |  |  |
| Nonredeemable Preferred Stock | Common Stock |  |  |  | Total Shareholders' Equity |
| Shares Outstanding | Amount | Capital Surplus | Retained Earnings | Treasury Stock |
(in millions, except per share data) |
BALANCE AT JUNE 30, 2022 | $ | 394 |  | 130.8 |  | $ | 1,141 |  | $ | 2,204 |  | $ | (1,954) |  | $ | 10,752 |  | $ | (6,102) |  | $ | 6,435 |
Net income | — |  | — |  | — |  | — |  | — |  | 351 |  | — |  | 351 |
Other comprehensive loss, net of tax | — |  | — |  | — |  | — |  | (1,633) |  | — |  | — |  | (1,633) |
Cash dividends declared on common stock ($0.68 per share) | — |  | — |  | — |  | — |  | — |  | (89) |  | — |  | (89) |
Cash dividends declared on preferred stock | — |  | — |  | — |  | — |  | — |  | (6) |  | — |  | (6) |
Net issuance of common stock under employee stock plans | — |  | 0.1 |  | — |  | (4) |  | — |  | (3) |  | 9 |  | 2 |
Share-based compensation | — |  | — |  | — |  | 9 |  | — |  | — |  | — |  | 9 |
BALANCE AT SEPTEMBER 30, 2022 | $ | 394 |  | 130.9 |  | $ | 1,141 |  | $ | 2,209 |  | $ | (3,587) |  | $ | 11,005 |  | $ | (6,093) |  | $ | 5,069 |
BALANCE AT JUNE 30, 2023 | $ | 394 |  | 131.7 |  | $ | 1,141 |  | $ | 2,212 |  | $ | (3,756) |  | $ | 11,648 |  | $ | (6,044) |  | $ | 5,595 |
Net income | — |  | — |  | — |  | — |  | — |  | 251 |  | — |  | 251 |
Other comprehensive loss, net of tax | — |  | — |  | — |  | — |  | (784) |  | — |  | — |  | (784) |
Cash dividends declared on common stock ($0.71 per share) | — |  | — |  | — |  | — |  | — |  | (94) |  | — |  | (94) |
Cash dividends declared on preferred stock | — |  | — |  | — |  | — |  | — |  | (6) |  | — |  | (6) |
Net issuance of common stock under employee stock plans | — |  | 0.1 |  | — |  | (1) |  | — |  | (3) |  | 5 |  | 1 |
Share-based compensation | — |  | — |  | — |  | 9 |  | — |  | — |  | — |  | 9 |
BALANCE AT SEPTEMBER 30, 2023 | $ | 394 |  | 131.8 |  | $ | 1,141 |  | $ | 2,220 |  | $ | (4,540) |  | $ | 11,796 |  | $ | (6,039) |  | $ | 4,972 |
BALANCE AT DECEMBER 31, 2021 | $ | 394 |  | 130.7 |  | $ | 1,141 |  | $ | 2,175 |  | $ | (212) |  | $ | 10,494 |  | $ | (6,095) |  | $ | 7,897 |
Net income | — |  | — |  | — |  | — |  | — |  | 801 |  | — |  | 801 |
Other comprehensive loss, net of tax | — |  | — |  | — |  | — |  | (3,375) |  | — |  | — |  | (3,375) |
Cash dividends declared on common stock ($2.04 per share) | — |  | — |  | — |  | — |  | — |  | (267) |  | — |  | (267) |
Cash dividends declared on preferred stock | — |  | — |  | — |  | — |  | — |  | (17) |  | — |  | (17) |
Purchase of common stock | — |  | (0.4) |  | — |  | — |  | — |  | — |  | (36) |  | (36) |
Net issuance of common stock under employee stock plans | — |  | 0.6 |  | — |  | (14) |  | — |  | (6) |  | 38 |  | 18 |
Share-based compensation | — |  | — |  | — |  | 48 |  | — |  | — |  | — |  | 48 |
BALANCE AT SEPTEMBER 30, 2022 | $ | 394 |  | 130.9 |  | $ | 1,141 |  | $ | 2,209 |  | $ | (3,587) |  | $ | 11,005 |  | $ | (6,093) |  | $ | 5,069 |
BALANCE AT DECEMBER 31, 2022 | $ | 394 |  | 131.0 |  | $ | 1,141 |  | $ | 2,220 |  | $ | (3,742) |  | $ | 11,258 |  | $ | (6,090) |  | $ | 5,181 |
Net income | — |  | — |  | — |  | — |  | — |  | 848 |  | — |  | 848 |
Other comprehensive loss, net of tax | — |  | — |  | — |  | — |  | (798) |  | — |  | — |  | (798) |
Cash dividends declared on common stock ($2.13 per share) | — |  | — |  | — |  | — |  | — |  | (282) |  | — |  | (282) |
Cash dividends declared on preferred stock | — |  | — |  | — |  | — |  | — |  | (17) |  | — |  | (17) |
Net issuance of common stock under employee stock plans | — |  | 0.8 |  | — |  | (44) |  | — |  | (11) |  | 51 |  | (4) |
Share-based compensation | — |  | — |  | — |  | 44 |  | — |  | — |  | — |  | 44 |
BALANCE AT SEPTEMBER 30, 2023 | $ | 394 |  | 131.8 |  | $ | 1,141 |  | $ | 2,220 |  | $ | (4,540) |  | $ | 11,796 |  | $ | (6,039) |  | $ | 4,972 |  |

15

BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |
(dollar amounts in millions) | Commercial |  | Retail |  | Wealth |  |  |  |  |  |
Three Months Ended September 30, 2023 | Bank |  | Bank |  | Management |  | Finance |  | Other |  | Total
Earnings summary: |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) | $ | 505 |  |  | $ | 208 |  |  | $ | 49 |  |  | $ | (187) |  |  | $ | 26 |  |  | $ | 601 |
Provision for credit losses | 22 |  |  | — |  |  | (9) |  |  | — |  |  | 1 |  |  | 14 |
Noninterest income | 150 |  |  | 31 |  |  | 78 |  |  | 40 |  |  | (4) |  |  | 295 |
Noninterest expenses | 257 |  |  | 175 |  |  | 102 |  |  | 1 |  |  | 20 |  |  | 555 |
Provision (benefit) for income taxes | 89 |  |  | 16 |  |  | 9 |  |  | (37) |  |  | (1) |  |  | 76 |
Net income (loss) | $ | 287 |  |  | $ | 48 |  |  | $ | 25 |  |  | $ | (111) |  |  | $ | 2 |  |  | $ | 251 |
Net charge-offs | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Selected average balances: |  |  |  |  |  |  |  |  |  |  |
Assets | $ | 49,459 |  |  | $ | 2,985 |  |  | $ | 5,557 |  |  | $ | 19,832 |  |  | $ | 11,317 |  |  | $ | 89,150 |
Loans | 46,477 |  |  | 2,250 |  |  | 5,227 |  |  | — |  |  | 33 |  |  | 53,987 |
Deposits | 31,868 |  |  | 24,034 |  |  | 3,950 |  |  | 5,711 |  |  | 320 |  |  | 65,883 |
Statistical data: |  |  |  |  |  |  |  |  |  |  |
Return on average assets (a) | 2.30 | % |  | 0.78 | % |  | 1.81 | % |  | n/m |  | n/m |  | 1.12 | %
Efficiency ratio (b) | 39.34 |  |  | 72.70 |  |  | 80.01 |  |  | n/m |  | n/m |  | 61.86 |
| Commercial |  | Retail |  | Wealth |  |  |  |  |  |
Three Months Ended June 30, 2023 | Bank |  | Bank |  | Management |  | Finance |  | Other |  | Total
Earnings summary: |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) | $ | 504 |  |  | $ | 214 |  |  | $ | 51 |  |  | $ | (173) |  |  | $ | 25 |  |  | $ | 621 |
Provision for credit losses | 33 |  |  | (4) |  |  | 2 |  |  | — |  |  | 2 |  |  | 33 |
Noninterest income | 158 |  |  | 29 |  |  | 83 |  |  | 29 |  |  | 4 |  |  | 303 |
Noninterest expenses | 248 |  |  | 171 |  |  | 89 |  |  | 2 |  |  | 25 |  |  | 535 |
Provision (benefit) for income taxes | 91 |  |  | 18 |  |  | 10 |  |  | (36) |  |  | — |  |  | 83 |
Net income (loss) | $ | 290 |  |  | $ | 58 |  |  | $ | 33 |  |  | $ | (110) |  |  | $ | 2 |  |  | $ | 273 |
Net (recoveries) charge-offs | $ | (3) |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | (2) |
Selected average balances: |  |  |  |  |  |  |  |  |  |  |
Assets | $ | 50,945 |  |  | $ | 2,930 |  |  | $ | 5,625 |  |  | $ | 20,649 |  |  | $ | 10,206 |  |  | $ | 90,355 |
Loans | 47,813 |  |  | 2,214 |  |  | 5,341 |  |  | — |  |  | — |  |  | 55,368 |
Deposits | 31,030 |  |  | 24,002 |  |  | 3,943 |  |  | 4,980 |  |  | 377 |  |  | 64,332 |
Statistical data: |  |  |  |  |  |  |  |  |  |  |
Return on average assets (a) | 2.29 | % |  | 0.94 | % |  | 2.31 | % |  | n/m |  | n/m |  | 1.21 | %
Efficiency ratio (b) | 37.45 |  |  | 69.73 |  |  | 66.23 |  |  | n/m |  | n/m |  | 57.70 |
| Commercial |  | Retail |  | Wealth |  |  |  |  |  |
Three Months Ended September 30, 2022 | Bank |  | Bank |  | Management |  | Finance |  | Other |  | Total
Earnings summary: |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) | $ | 478 |  |  | $ | 188 |  |  | $ | 55 |  |  | $ | (22) |  |  | $ | 8 |  |  | $ | 707 |
Provision for credit losses | 16 |  |  | 2 |  |  | 5 |  |  | — |  |  | 5 |  |  | 28 |
Noninterest income | 169 |  |  | 29 |  |  | 77 |  |  | 6 |  |  | (3) |  |  | 278 |
Noninterest expenses | 242 |  |  | 170 |  |  | 87 |  |  | — |  |  | 3 |  |  | 502 |
Provision (benefit) for income taxes | 94 |  |  | 11 |  |  | 10 |  |  | (6) |  |  | (5) |  |  | 104 |
Net income (loss) | $ | 295 |  |  | $ | 34 |  |  | $ | 30 |  |  | $ | (10) |  |  | $ | 2 |  |  | $ | 351 |
Net charge-offs | $ | 13 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13 |
Selected average balances: |  |  |  |  |  |  |  |  |  |  |
Assets | $ | 48,323 |  |  | $ | 2,799 |  |  | $ | 5,097 |  |  | $ | 22,140 |  |  | $ | 7,063 |  |  | $ | 85,422 |
Loans | 44,043 |  |  | 2,066 |  |  | 4,973 |  |  | — |  |  | 31 |  |  | 51,113 |
Deposits | 41,471 |  |  | 26,665 |  |  | 5,293 |  |  | 144 |  |  | 403 |  |  | 73,976 |
Statistical data: |  |  |  |  |  |  |  |  |  |  |
Return on average assets (a) | 2.42 | % |  | 0.51 | % |  | 2.08 | % |  | n/m |  | n/m |  | 1.63 | %
Efficiency ratio (b) | 37.54 |  |  | 77.00 |  |  | 65.86 |  |  | n/m |  | n/m |  | 50.75 |

(a)Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(b)Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities, a derivative contract tied to the conversion rate of Visa Class B shares and changes in the value of shares obtained through monetization of warrants.
n/m - not meaningful
16

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES AND REGULATORY RATIOS (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. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.
Common equity tier 1 capital ratio removes preferred stock from the Tier 1 capital ratio as defined by and calculated in conformity with bank regulations. 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.

| September 30, | June 30, | September 30,
(in millions, except share data) | 2023 | 2023 | 2022
Common Equity Tier 1 Capital (a): |  |  |
Tier 1 capital | $ | 8,866 |  | $ | 8,705 |  | $ | 8,010 |
Less: |  |  |
Fixed-rate reset non-cumulative perpetual preferred stock | 394 |  | 394 |  | 394 |
Common equity tier 1 capital | $ | 8,472 |  | $ | 8,311 |  | $ | 7,616 |
Risk-weighted assets | $ | 78,499 |  | $ | 80,624 |  | $ | 76,661 |
Tier 1 capital ratio | 11.29 | % | 10.80 | % | 10.45 | %
Common equity tier 1 capital ratio | 10.79 |  | 10.31 |  | 9.93 |
Tangible Common Equity: |  |  |
Total shareholders' equity | $ | 4,972 |  | $ | 5,595 |  | $ | 5,069 |
Less: |  |  |
Fixed-rate reset non-cumulative perpetual preferred stock | 394 |  | 394 |  | 394 |
Common shareholders' equity | $ | 4,578 |  | $ | 5,201 |  | $ | 4,675 |
Less: |  |  |
Goodwill | 635 |  | 635 |  | 635 |
Other intangible assets | 8 |  | 8 |  | 10 |
Tangible common equity | $ | 3,935 |  | $ | 4,558 |  | $ | 4,030 |
Total assets | $ | 85,706 |  | $ | 90,761 |  | $ | 84,143 |
Less: |  |  |
Goodwill | 635 |  | 635 |  | 635 |
Other intangible assets | 8 |  | 8 |  | 10 |
Tangible assets | $ | 85,063 |  | $ | 90,118 |  | $ | 83,498 |
Common equity ratio | 5.34 | % | 5.73 | % | 5.55 | %
Tangible common equity ratio | 4.62 |  | 5.06 |  | 4.82 |
Tangible Common Equity per Share of Common Stock: |  |  |
Common shareholders' equity | $ | 4,578 |  | $ | 5,201 |  | $ | 4,675 |
Tangible common equity | 3,935 |  | 4,558 |  | 4,030 |
Shares of common stock outstanding (in millions) | 132 |  | 132 |  | 131 |
Common shareholders' equity per share of common stock | $ | 34.73 |  | $ | 39.48 |  | $ | 35.70 |
Tangible common equity per share of common stock | 29.85 |  | 34.59 |  | 30.77 |

(a)September 30, 2023 ratios are estimated.
Total uninsured deposits as calculated per regulatory guidance and reported on schedule RC-O of Comerica Bank’s Call Report include affiliate deposits, which by definition have a different risk profile than other uninsured deposits. The amounts presented below remove affiliate deposits from the total uninsured deposits number. Comerica believes that the presentation of uninsured deposits adjusted for the impact of affiliate deposits provides enhanced clarity of uninsured deposits at risk.
17

| September 30, | June 30, | September 30,
(dollar amounts in millions) | 2023 | 2023 | 2022
Uninsured Deposits: |  |  |
Total uninsured deposits, as calculated per regulatory guidelines | $ | 31,476 |  | $ | 31,626 |  | $ | 46,923 |
Less: |  |  |
Affiliate deposits | (4,088) |  | (4,412) |  | (4,298) |
Total uninsured deposits, excluding affiliate deposits | $ | 27,388 |  | $ | 27,214 |  | $ | 42,625 |

RECONCILIATIONS OF PREVIOUSLY REPORTED BALANCES (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |

Beginning with first quarter 2023, Comerica reported derivative income, syndication agent fees (previously a component of commercial lending fees) and investment banking fees (previously a component of other noninterest income) as a combined item captioned by capital markets income on the Consolidated Statements of Comprehensive Income. In addition to the reclassified revenue categories, merger and acquisition advisory fees were included in capital markets income (insignificant in previous periods) beginning with first quarter 2023. Prior periods have been adjusted to conform to this presentation, and the changes in presentation do not impact total noninterest income. The table below reconciles amounts previously reported to the new presentation.

| Three Months Ended |  | Nine Months Ended
| December 31, |  | September 30, |  |  |  |  |  | September 30,
(in millions) | 2022 |  | 2022 |  |  |  |  |  | 2022
Derivative income (as reported) | $ | 23 |  |  | $ | 35 |  |  |  |  |  |  | $ | 86 |
Syndication agent fees (a) | 10 |  |  | 12 |  |  |  |  |  |  | 31 |
Investment banking fees (b) | 1 |  |  | 1 |  |  |  |  |  |  | 3 |
Capital markets income | $ | 34 |  |  | $ | 48 |  |  |  |  |  |  | $ | 120 |
Commercial lending fees (as reported) | 28 |  |  | 29 |  |  |  |  |  |  | 81 |
Less: Syndication agent fees (a) | 10 |  |  | 12 |  |  |  |  |  |  | 31 |
Commercial lending fees (as adjusted) | $ | 18 |  |  | $ | 17 |  |  |  |  |  |  | $ | 50 |
Other noninterest income (as reported) | 30 |  |  | 11 |  |  |  |  |  |  | 13 |
Less: Investment banking fees (b) | 1 |  |  | 1 |  |  |  |  |  |  | 3 |
Other noninterest income (as adjusted) | $ | 29 |  |  | $ | 10 |  |  |  |  |  |  | $ | 10 |

(a)Previously reported as a component of commercial lending fees.
(b)Previously reported as a component of other noninterest income.
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