EX-99.1 2 a2024q3pressrelease-ex991.htm EX-99.1
THIRD QUARTER 2024 NET INCOME OF $184 MILLION, $1.33 PER SHARE
Favorable Deposit and Net Interest Income Trends
Strong Capitalization with Ongoing Credit and Expense Discipline
“Today we reported third quarter earnings per share of $1.33," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer. "Growth in customer deposits offset muted loan demand and contributed to net interest income exceeding expectations for the quarter. Expense discipline remained a priority as we continued to execute on action plans set forth earlier this year. Credit quality was strong with net charge offs of 8 basis points, well below historical averages, and we continue to believe future migration will remain manageable. We favor a conservative approach to capital management as our estimated CET1 capital ratio rose to 11.97%, well above our 10% target. Further, the downward shift in the rate curve drove a meaningful improvement in AOCI for the quarter.”

| (dollar amounts in millions, except per share data) | 3rd Qtr '24 |  | 2nd Qtr '24 |  | 3rd Qtr '23 |  |  |  |  |
| FINANCIAL RESULTS |  |  |  |  |  |  |  |  |  |
| Net interest income | $ | 534 |  |  | $ | 533 |  |  | $ | 601 |  |  |  |  |  |
| Provision for credit losses | 14 |  |  | — |  |  | 14 |  |  |  |  |  |
| Noninterest income | 277 |  |  | 291 |  |  | 295 |  |  |  |  |  |
| Noninterest expenses | 562 |  |  | 555 |  |  | 555 |  |  |  |  |  |
| Pre-tax income | 235 |  |  | 269 |  |  | 327 |  |  |  |  |  |
| Provision for income taxes | 51 |  |  | 63 |  |  | 76 |  |  |  |  |  |
| Net income | $ | 184 |  |  | $ | 206 |  |  | $ | 251 |  |  |  |  |  |
| Diluted earnings per common share | $ | 1.33 |  |  | $ | 1.49 |  |  | $ | 1.84 |  |  |  |  |  |
| Average loans | 50,861 |  |  | 51,071 |  |  | 53,987 |  |  |  |  |  |
| Average deposits | 63,896 |  |  | 63,055 |  |  | 65,883 |  |  |  |  |  |
| Return on average assets (ROA) | 0.92 | % |  | 1.05 | % |  | 1.12 | % |  |  |  |  |
| Return on average common shareholders' equity (ROE) | 10.88 |  |  | 14.78 |  |  | 19.50 |  |  |  |  |  |
| Net interest margin | 2.80 |  |  | 2.86 |  |  | 2.84 |  |  |  |  |  |
| Efficiency ratio (a) | 68.80 |  |  | 67.77 |  |  | 61.86 |  |  |  |  |  |
| Common equity Tier 1 capital ratio (b) | 11.97 |  |  | 11.55 |  |  | 10.80 |  |  |  |  |  |
| Tier 1 capital ratio (b) | 12.51 |  |  | 12.08 |  |  | 11.30 |  |  |  |  |  |

(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, 2024 ratios are estimated. See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.

Impact of Notable Items to Financial Results
The following table reconciles adjusted diluted earnings per common share, net income attributable to common shareholders and return ratios. See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.

(dollar amounts in millions, except per share data) | 3rd Qtr '24 |  | 2nd Qtr '24 |  | 3rd Qtr '23 |  |  |  |
Diluted earnings per common share | $ | 1.33 |  |  | $ | 1.49 |  |  | $ | 1.84 |  |  |  |  |
Net BSBY cessation hedging losses (a) | 0.05 |  |  | 0.01 |  |  | — |  |  |  |  |
FDIC special assessment (b) | (0.02) |  |  | 0.02 |  |  | — |  |  |  |  |
Modernization and expense recalibration initiatives (c) | 0.01 |  |  | 0.01 |  |  | (0.08) |  |  |  |  |
Adjusted diluted earnings per common share | $ | 1.37 |  |  | $ | 1.53 |  |  | $ | 1.76 |  |  |  |  |
Net income attributable to common shareholders | $ | 177 |  |  | $ | 200 |  |  | $ | 244 |  |  |  |  |
Net BSBY cessation hedging losses (a) | 9 |  |  | 3 |  |  | — |  |  |  |  |
FDIC special assessment (b) | (4) |  |  | 3 |  |  | — |  |  |  |  |
Modernization and expense recalibration initiatives (c) | 2 |  |  | 2 |  |  | (14) |  |  |  |  |
Income tax impact of above items | (2) |  |  | (2) |  |  | 3 |  |  |  |  |
Adjusted net income attributable to common shareholders | $ | 182 |  |  | $ | 206 |  |  | $ | 233 |  |  |  |  |
ROA | 0.92 | % |  | 1.05 | % |  | 1.12 | % |  |  |  |
Adjusted ROA | 0.94 |  |  | 1.07 |  |  | 1.07 |  |  |  |  |
ROE | 10.88 |  |  | 14.78 |  |  | 19.50 |  |  |  |  |
Adjusted ROE | 11.22 |  |  | 15.18 |  |  | 18.65 |  |  |  |  |

(a)The planned cessation of the Bloomberg Short-Term Bank Yield Index (BSBY) announced in November 2023 resulted in the de-designation of certain interest rate swaps requiring reclassification of amounts recognized in accumulated other comprehensive income (AOCI) into earnings. All impacted swaps were re-designated as of April 1, 2024; therefore, settlement of interest payments for third quarter 2024 and second quarter 2024 were recorded as net interest income.
(b)Additional FDIC insurance accrual adjustments resulting from the FDIC Board of Directors’ November 2023 approval of a special assessment to recover the loss to the Deposit Insurance Fund following the failures of Silicon Valley Bank and Signature Bank.
(c)Related to certain initiatives to transform the retail banking delivery model, align corporate facilities and optimize technology platforms, as well as calibrate expenses to enhance earnings power while creating capacity for strategic and risk management initiatives.
Third Quarter 2024 Compared to Second Quarter 2024 Overview
Balance sheet items discussed in terms of average balances unless otherwise noted.
Loans decreased $210 million to $50.9 billion.
•Decreases of $234 million in National Dealer Services and $179 million in Corporate Banking, partially offset by increases of $157 million in Commercial Real Estate and $135 million in Environmental Services.
◦Period-end loans decreased $1.3 billion driven by declines of $705 million in National Dealer Services, $374 million in Equity Fund Services and $247 million in general Middle Market, partially offset by an increase of $172 million in Commercial Real Estate.
•Average yield on loans (including swaps) decreased 8 basis points to 6.24% reflecting lower nonaccrual interest.
Securities increased $130 million to $15.9 billion, reflecting a decrease in average unrealized losses, partially offset by paydowns and maturities.
•Period-end unrealized losses on securities decreased $701 million to $2.3 billion.
Deposits increased $841 million to $63.9 billion.
•Interest-bearing deposits increased $1.8 billion, partially offset by a decrease of $1.0 billion in noninterest-bearing deposits.
◦Increases of $364 million in Equity Fund Services, $213 million in general Middle Market, $194 million in Corporate Banking and $140 million in Commercial Real Estate, partially offset by a $365 million decrease in Retail Banking.
◦Average brokered time deposits increased $336 million. On a period-end basis, brokered time deposits decreased $862 million.
•The average cost of interest-bearing deposits increased 8 basis points to 331 basis points, mostly reflecting continued strategic growth in core interest-bearing deposits.
Short-term borrowings decreased $589 million, reflecting a reduction in Federal Home Loan Bank (FHLB) advances, while medium- and long-term debt decreased $233 million to $6.8 billion, driven by a maturity during the quarter.
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•Total liquidity capacity at period-end totaled $44.1 billion, including cash, available liquidity through the FHLB and the Federal Reserve Bank (FRB) discount window, as well as the market value of unencumbered investment securities.
Net interest income was stable at $534 million, and net interest margin decreased 6 basis points to 2.80%.
•Includes higher deposits held at the FRB, a decline in debt (including short-term FHLB advances) and one additional day in the quarter, offset by an increase in interest-bearing deposits, the net impact of lower short-term rates, lower nonaccrual loan interest and a decline in loan volume.
•The decline in net interest margin reflected an increase in interest-bearing deposit costs and lower nonaccrual interest, partially offset by higher deposits held at the FRB and the decline in debt balances.
Provision for credit losses was $14 million.
•The allowance for credit losses increased $3 million to $720 million, reflecting changes in portfolio composition and a relatively consistent economic outlook.
•As a percentage of total loans, the allowance for credit losses was 1.43%, an increase of 5 basis points.
Noninterest income decreased $14 million to $277 million.
•Decrease of $10 million in risk management hedging income (mostly price alignment income), partially offset by increases of $3 million in deferred compensation asset returns (offset in noninterest expenses) and $2 million in capital markets income, as well as smaller increases in other categories.
◦Other noninterest income for third quarter 2024 included a $5 million loss, while other noninterest income for second quarter 2024 included a $6 million gain, both pertaining to a derivative related to Visa’s Class B shares.
Noninterest expenses increased $7 million to $562 million.
•Increases of $12 million in salaries and benefits expense and $2 million in occupancy expense, partially offset by an $8 million decrease in FDIC insurance expense (including a $7 million impact from changes to the special assessment estimates by the FDIC).
◦Salaries and benefits expense included increases of $4 million in deferred compensation expense (mostly offset in other noninterest income) and $3 million from staff additions, as well as impacts of $2 million each from an additional day in the quarter, higher incentive compensation and stock-based compensation.
◦Other noninterest expenses included an increase of $3 million in operational losses, partially offset by a $2 million decrease in consulting expenses.
Common equity Tier 1 capital ratio of 11.97% and a Tier 1 capital ratio of 12.51%.
See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios for additional information.
•Share repurchases targeting $100 million are expected to resume in the fourth quarter of 2024.
•Declared dividends of $94 million on common stock and $6 million on preferred stock.
•Tangible common equity ratio was 8.01%.
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Net Interest Income
Balance sheet items presented and discussed in terms of average balances.

(dollar amounts in millions) | 3rd Qtr '24 |  | 2nd Qtr '24 |  | 3rd Qtr '23 |  |  |  |
Net interest income | $ | 534 |  |  | $ | 533 |  |  | $ | 601 |  |  |  |  |
Net interest margin | 2.80 | % |  | 2.86 | % |  | 2.84 | % |  |  |  |
Selected balances: |  |  |  |  |  |  |  |  |
Total earning assets | $ | 73,103 |  |  | $ | 71,829 |  |  | $ | 80,996 |  |  |  |  |
Total loans | 50,861 |  |  | 51,071 |  |  | 53,987 |  |  |  |  |
Total investment securities | 15,880 |  |  | 15,750 |  |  | 16,881 |  |  |  |  |
Federal Reserve Bank deposits | 5,789 |  |  | 4,474 |  |  | 9,443 |  |  |  |  |
Total deposits | 63,896 |  |  | 63,055 |  |  | 65,883 |  |  |  |  |
Total noninterest-bearing deposits | 24,357 |  |  | 25,357 |  |  | 29,016 |  |  |  |  |
Short-term borrowings | 77 |  |  | 666 |  |  | 8,847 |  |  |  |  |
Medium- and long-term debt | 6,849 |  |  | 7,082 |  |  | 6,383 |  |  |  |  |

Net interest income increased $1 million, and net interest margin decreased 6 basis points, compared to second quarter 2024. Amounts shown in parentheses below represent the impacts to net interest income and net interest margin, respectively, with impacts of hedging program included with rate.
•Interest income on loans decreased $5 million and reduced net interest margin by 6 basis points, driven by other portfolio dynamics (-$6 million, -4 basis points consisting of lower nonaccrual interest), lower loan balances (-$5 million, -1 basis point) and lower short-term rates (-$2 million, -1 basis point), partially offset by one additional day in the quarter (+$8 million).
◦BSBY cessation negatively impacted net interest income and net interest margin by $9 million and 5 basis points for third quarter 2024, compared to a negative impact of $3 million and 2 basis points for second quarter 2024.
•Interest income on investment securities decreased $2 million and improved net interest margin by 1 basis point.
•Interest income on short-term investments increased $18 million and improved net interest margin by 4 basis points, primarily reflecting an increase of $1.3 billion in deposits with the FRB.
•Interest expense on deposits increased $25 million and reduced net interest margin by 12 basis points, reflecting higher average interest-bearing deposit balances (-$16 million, -8 basis points), higher pay rates on deposits (-$6 million, -4 basis points) and one additional day in the quarter (-$3 million).
•Interest expense on debt decreased $15 million and improved net interest margin by 7 basis points, driven by a decrease of $589 million in short-term FHLB advances (+$9 million, +4 basis points), a decline of $233 million in medium- and long-term debt (+$5 million, +2 basis points) and lower rates (+$1 million, +1 basis point).
The net impact of lower rates to third quarter 2024 net interest income was a decrease of $7 million and a reduction of 4 basis points to net interest margin.
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Credit Quality
“Our strategic diversification and prudent approach to underwriting continued to deliver strong credit results with net charge-offs of only 8 basis points," said Farmer. "Although persistent inflationary pressures impacted customer profitability, our portfolio continues to perform well, as criticized loan balances declined. A relatively consistent economic outlook coupled with lower loans drove a modest increase in our reserve to 1.43%. However, with the market expectation of additional rate declines, we see potential for favorable trends in portfolios currently under more relative pressure. In either event, we feel our proven, conservative credit discipline continues to position us well to outperform peers through the cycle.”

(dollar amounts in millions) | 3rd Qtr '24 |  | 2nd Qtr '24 |  | 3rd Qtr '23
Charge-offs | $ | 23 |  |  | $ | 28 |  |  | $ | 14 |
Recoveries | 12 |  |  | 17 |  |  | 8 |
Net charge-offs | 11 |  |  | 11 |  |  | 6 |
Net charge-offs/Average total loans | 0.08 | % |  | 0.09 | % |  | 0.05 | %
Provision for credit losses | $ | 14 |  |  | $ | — |  |  | $ | 14 |
Nonperforming loans and nonperforming assets (NPAs) | 250 |  |  | 226 |  |  | 154 |
NPAs/Total loans and foreclosed property | 0.50 | % |  | 0.44 | % |  | 0.29 | %
Loans past due 90 days or more and still accruing | $ | 21 |  |  | $ | 11 |  |  | $ | 45 |
Allowance for loan losses | 686 |  |  | 686 |  |  | 694 |
Allowance for credit losses on lending-related commitments (a) | 34 |  |  | 31 |  |  | 42 |
Total allowance for credit losses | 720 |  |  | 717 |  |  | 736 |
Allowance for credit losses/Period-end total loans | 1.43 | % |  | 1.38 | % |  | 1.38 | %
Allowance for credit losses/Nonperforming loans | 2.9x |  | 3.2x |  | 4.8x

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

•The allowance for credit losses totaled $720 million at September 30, 2024 and increased by 5 basis points to 1.43% of total loans, reflecting changes in portfolio composition and a relatively consistent economic outlook.
•Criticized loans were relatively flat, totaling $2.4 billion, or 4.8% of total loans. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.
•Nonperforming assets increased $24 million to $250 million, or 0.50% of total loans and foreclosed property, compared to 0.44% in second quarter 2024.
•Net charge-offs were stable at $11 million, unchanged from second quarter 2024.
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, 2024. A discussion of business segment results will be included in Comerica’s Form 10-Q for the quarter ended September 30, 2024.
Conference Call and Webcast
Comerica will host a conference call and live webcast to review third quarter 2024 financial results at 7 a.m. CT Friday, October 18, 2024. 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. Comerica’s presentation may include forward-looking statements, such as descriptions of plans and objectives for future or past operations, products or services; forecasts of revenue, earnings or other measures of economic performance and profitability; and estimates of credit trends and stability.
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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 380 banking centers across the country with locations in Arizona, California, Florida, Michigan and Texas. Founded 175 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 (and Comerica’s related upcoming conference call and live webcast will discuss) 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 or in the investor relations portions of Comerica’s website, www.comerica.com. 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.
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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 “achieve, anticipate, aspire, assume, believe, can, commit, confident, continue, could, designed, enhances, estimate, expect, feel, forecast, forward, future, goal, grow, initiative, intend, look forward, maintain, may, might, mission, model, objective, opportunity, outcome, on track, outlook, plan, position, potential, project, propose, remain, seek, should, strategy, strive, target, trend, until, well-positioned, will, would” or similar expressions, as they relate to Comerica, or to economic, market or other environmental conditions 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 the Bloomberg Short-Term Bank Yield Index 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 and their soundness); 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, processes and management estimates; the volatility of Comerica’s stock price; and that an investment in Comerica’s equity securities is not insured or guaranteed by the FDIC). 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 14 of Comerica's Annual Report on Form 10-K for the year ended December 31, 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 | (833) 571-0486
Louis H. Mora | Lindsey Baird
(214) 462-6669 | (833) 571-0486

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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) | 2024 | 2024 | 2023 |  | 2024 | 2023
PER COMMON SHARE AND COMMON STOCK DATA |  |  |  |  |  |
Diluted earnings per common share | $ | 1.33 |  | $ | 1.49 |  | $ | 1.84 |  |  | $ | 3.80 |  | $ | 6.24 |
Cash dividends declared | 0.71 |  | 0.71 |  | 0.71 |  |  | 2.13 |  | 2.13 |
Average diluted shares (in thousands) | 134,039 |  | 133,763 |  | 132,655 |  |  | 133,727 |  | 132,520 |
PERFORMANCE RATIOS |  |  |  |  |  |
Return on average common shareholders' equity | 10.88 | % | 14.78 | % | 19.50 | % |  | 11.58 | % | 21.02 | %
Return on average assets | 0.92 |  | 1.05 |  | 1.12 |  |  | 0.87 |  | 1.29 |
Efficiency ratio (a) | 68.80 |  | 67.77 |  | 61.86 |  |  | 71.08 |  | 58.26 |
CAPITAL |  |  |  |  |  |
Common equity tier 1 capital (b), (c) | $ | 8,684 |  | $ | 8,586 |  | $ | 8,472 |  |  |  |
Tier 1 capital (b), (c) | 9,078 |  | 8,980 |  | 8,866 |  |  |  |
Risk-weighted assets (b) | 72,576 |  | 74,342 |  | 78,439 |  |  |  |
Common equity tier 1 capital ratio (b), (c) | 11.97 | % | 11.55 | % | 10.80 | % |  |  |
Tier 1 capital ratio (b), (c) | 12.51 |  | 12.08 |  | 11.30 |  |  |  |
Total capital ratio (b) | 14.30 |  | 14.02 |  | 13.17 |  |  |  |
Leverage ratio (b) | 11.02 |  | 10.90 |  | 9.60 |  |  |  |
Common shareholders' equity per share of common stock | $ | 52.52 |  | $ | 43.49 |  | $ | 34.73 |  |  |  |
Tangible common equity per share of common stock (c) | 47.69 |  | 38.65 |  | 29.85 |  |  |  |
Common equity ratio | 8.75 | % | 7.24 | % | 5.34 | % |  |  |
Tangible common equity ratio (c) | 8.01 |  | 6.49 |  | 4.62 |  |  |  |
AVERAGE BALANCES |  |  |  |  |  |
Commercial loans | $ | 26,173 |  | $ | 26,292 |  | $ | 29,721 |  |  | $ | 26,305 |  | $ | 30,631 |
Real estate construction loans | 4,205 |  | 4,553 |  | 4,294 |  |  | 4,642 |  | 3,786 |
Commercial mortgage loans | 14,494 |  | 14,171 |  | 13,814 |  |  | 14,104 |  | 13,694 |
Lease financing | 804 |  | 798 |  | 770 |  |  | 804 |  | 770 |
International loans | 1,036 |  | 1,111 |  | 1,241 |  |  | 1,096 |  | 1,245 |
Residential mortgage loans | 1,905 |  | 1,898 |  | 1,915 |  |  | 1,895 |  | 1,869 |
Consumer loans | 2,244 |  | 2,248 |  | 2,232 |  |  | 2,254 |  | 2,281 |
Total loans | 50,861 |  | 51,071 |  | 53,987 |  |  | 51,100 |  | 54,276 |
Earning assets | 73,103 |  | 71,829 |  | 80,996 |  |  | 73,578 |  | 80,241 |
Total assets | 80,231 |  | 79,207 |  | 89,150 |  |  | 81,016 |  | 88,229 |
Noninterest-bearing deposits | 24,357 |  | 25,357 |  | 29,016 |  |  | 25,371 |  | 31,916 |
Interest-bearing deposits | 39,539 |  | 37,698 |  | 36,867 |  |  | 38,716 |  | 34,093 |
Total deposits | 63,896 |  | 63,055 |  | 65,883 |  |  | 64,087 |  | 66,009 |
Common shareholders' equity | 6,546 |  | 5,454 |  | 4,984 |  |  | 5,898 |  | 5,286 |
Total shareholders' equity | 6,940 |  | 5,848 |  | 5,378 |  |  | 6,293 |  | 5,680 |
NET INTEREST INCOME |  |  |  |  |  |
Net interest income | $ | 534 |  | $ | 533 |  | $ | 601 |  |  | $ | 1,615 |  | $ | 1,930 |
Net interest margin | 2.80 | % | 2.86 | % | 2.84 | % |  | 2.82 | % | 3.11 | %
CREDIT QUALITY |  |  |  |  |  |
Nonperforming assets | $ | 250 |  | $ | 226 |  | $ | 154 |  |  |  |
Loans past due 90 days or more and still accruing | 21 |  | 11 |  | 45 |  |  |  |
Net charge-offs (recoveries) | 11 |  | 11 |  | 6 |  |  | $ | 36 |  | $ | 2 |
Allowance for loan losses | 686 |  | 686 |  | 694 |  |  |  |
Allowance for credit losses on lending-related commitments | 34 |  | 31 |  | 42 |  |  |  |
Total allowance for credit losses | 720 |  | 717 |  | 736 |  |  |  |
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.38 | % | 1.38 | % |  |  |
Net loan charge-offs as a percentage of average total loans | 0.08 |  | 0.09 |  | 0.05 |  |  | 0.09 | % | 0.01 | %
Nonperforming assets as a percentage of total loans and foreclosed property | 0.50 |  | 0.44 |  | 0.29 |  |  |  |
Allowance for credit losses as a multiple of total nonperforming loans | 2.9x | 3.2x | 4.8x |  |  |
OTHER KEY INFORMATION |  |  |  |  |  |
Number of banking centers | 380 |  | 381 |  | 408 |  |  |  |
Number of employees - full time equivalent | 7,666 |  | 7,608 |  | 7,667 |  |  |  |

(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, 2024 ratios are estimated.
(c) See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios.
8

CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries |  |  |  |
| September 30, | June 30, | December 31, | September 30,
(in millions, except share data) | 2024 | 2024 | 2023 | 2023
| (unaudited) | (unaudited) |  | (unaudited)
ASSETS |  |  |  |
Cash and due from banks | $ | 870 |  | $ | 719 |  | $ | 1,443 |  | $ | 1,228
Interest-bearing deposits with banks | 5,523 |  | 4,093 |  | 8,059 |  | 6,884
Other short-term investments | 364 |  | 396 |  | 399 |  | 403
Investment securities available-for-sale | 15,886 |  | 15,656 |  | 16,869 |  | 16,323
Commercial loans | 25,953 |  | 27,113 |  | 27,251 |  | 29,007
Real estate construction loans | 3,859 |  | 4,554 |  | 5,083 |  | 4,545
Commercial mortgage loans | 14,774 |  | 14,156 |  | 13,686 |  | 13,721
Lease financing | 767 |  | 806 |  | 807 |  | 790
International loans | 1,003 |  | 1,087 |  | 1,102 |  | 1,194
Residential mortgage loans | 1,901 |  | 1,896 |  | 1,889 |  | 1,905
Consumer loans | 2,260 |  | 2,238 |  | 2,295 |  | 2,236
Total loans | 50,517 |  | 51,850 |  | 52,113 |  | 53,398
Allowance for loan losses | (686) |  | (686) |  | (688) |  | (694)
Net loans | 49,831 |  | 51,164 |  | 51,425 |  | 52,704
Premises and equipment | 476 |  | 474 |  | 445 |  | 410
Accrued income and other assets | 6,713 |  | 7,095 |  | 7,194 |  | 7,754
Total assets | $ | 79,663 |  | $ | 79,597 |  | $ | 85,834 |  | $ | 85,706
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |
Noninterest-bearing deposits | $ | 23,819 |  | $ | 24,522 |  | $ | 27,849 |  | $ | 29,922
Money market and interest-bearing checking deposits | 31,469 |  | 29,016 |  | 28,246 |  | 26,298
Savings deposits | 2,155 |  | 2,247 |  | 2,381 |  | 2,521
Customer certificates of deposit | 3,592 |  | 3,775 |  | 3,723 |  | 3,401
Other time deposits | 2,017 |  | 2,879 |  | 4,550 |  | 5,011
Foreign office time deposits | 25 |  | 20 |  | 13 |  | 5
Total interest-bearing deposits | 39,258 |  | 37,937 |  | 38,913 |  | 37,236
Total deposits | 63,077 |  | 62,459 |  | 66,762 |  | 67,158
Short-term borrowings | — |  | 1,250 |  | 3,565 |  | 4,812
Accrued expenses and other liabilities | 2,434 |  | 2,615 |  | 2,895 |  | 2,715
Medium- and long-term debt | 6,786 |  | 7,112 |  | 6,206 |  | 6,049
Total liabilities | 72,297 |  | 73,436 |  | 79,428 |  | 80,734
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 | 2,217 |  | 2,210 |  | 2,224 |  | 2,220
Accumulated other comprehensive loss | (2,355) |  | (3,463) |  | (3,048) |  | (4,540)
Retained earnings | 11,949 |  | 11,867 |  | 11,727 |  | 11,796
Less cost of common stock in treasury - 95,441,515 shares at 9/30/24, 95,559,986 shares at 06/30/24, 96,266,568 shares at 12/31/23, 96,374,736 shares at 9/30/23 | (5,980) |  | (5,988) |  | (6,032) |  | (6,039)
Total shareholders' equity | 7,366 |  | 6,161 |  | 6,406 |  | 4,972
Total liabilities and shareholders' equity | $ | 79,663 |  | $ | 79,597 |  | $ | 85,834 |  | $ | 85,706

9

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) | 2024 | 2023 |  | 2024 | 2023
| (unaudited) | (unaudited) |  | (unaudited) | (unaudited)
INTEREST INCOME |  |  |  |  |
Interest and fees on loans | $ | 798 |  | $ | 862 |  |  | $ | 2,409 |  | $ | 2,491 |
Interest on investment securities | 99 |  | 105 |  |  | 302 |  | 326 |
Interest on short-term investments | 85 |  | 136 |  |  | 261 |  | 309 |
Total interest income | 982 |  | 1,103 |  |  | 2,972 |  | 3,126 |
INTEREST EXPENSE |  |  |  |  |
Interest on deposits | 330 |  | 271 |  |  | 952 |  | 590 |
Interest on short-term borrowings | 1 |  | 125 |  |  | 47 |  | 333 |
Interest on medium- and long-term debt | 117 |  | 106 |  |  | 358 |  | 273 |
Total interest expense | 448 |  | 502 |  |  | 1,357 |  | 1,196 |
Net interest income | 534 |  | 601 |  |  | 1,615 |  | 1,930 |
Provision for credit losses | 14 |  | 14 |  |  | 28 |  | 77 |
Net interest income after provision for credit losses | 520 |  | 587 |  |  | 1,587 |  | 1,853 |
NONINTEREST INCOME |  |  |  |  |
Card fees | 64 |  | 71 |  |  | 194 |  | 212 |
Fiduciary income | 57 |  | 59 |  |  | 166 |  | 179 |
Service charges on deposit accounts | 46 |  | 47 |  |  | 137 |  | 140 |
Capital markets income | 39 |  | 35 |  |  | 106 |  | 113 |
Commercial lending fees | 17 |  | 19 |  |  | 50 |  | 55 |
Brokerage fees | 13 |  | 6 |  |  | 37 |  | 22 |
Bank-owned life insurance | 12 |  | 12 |  |  | 33 |  | 36 |
Letter of credit fees | 10 |  | 10 |  |  | 30 |  | 31 |
Risk management hedging income (loss) | 7 |  | 17 |  |  | (1) |  | 32 |
Other noninterest income | 12 |  | 19 |  |  | 52 |  | 60 |
Total noninterest income | 277 |  | 295 |  |  | 804 |  | 880 |
NONINTEREST EXPENSES |  |  |  |  |
Salaries and benefits expense | 335 |  | 315 |  |  | 1,006 |  | 947 |
Outside processing fee expense | 69 |  | 75 |  |  | 205 |  | 207 |
Software expense | 46 |  | 44 |  |  | 135 |  | 127 |
Occupancy expense | 46 |  | 44 |  |  | 134 |  | 126 |
Equipment expense | 13 |  | 12 |  |  | 38 |  | 36 |
FDIC insurance expense | 11 |  | 19 |  |  | 66 |  | 48 |
Advertising expense | 10 |  | 12 |  |  | 30 |  | 30 |
Other noninterest expenses | 32 |  | 34 |  |  | 106 |  | 120 |
Total noninterest expenses | 562 |  | 555 |  |  | 1,720 |  | 1,641 |
Income before income taxes | 235 |  | 327 |  |  | 671 |  | 1,092 |
Provision for income taxes | 51 |  | 76 |  |  | 143 |  | 244 |
NET INCOME | 184 |  | 251 |  |  | 528 |  | 848 |
Less: |  |  |  |  |
Income allocated to participating securities | 1 |  | 1 |  |  | 3 |  | 4 |
Preferred stock dividends | 6 |  | 6 |  |  | 17 |  | 17 |
Net income attributable to common shares | $ | 177 |  | $ | 244 |  |  | $ | 508 |  | $ | 827 |
Earnings per common share: |  |  |  |  |
Basic | $ | 1.34 |  | $ | 1.85 |  |  | $ | 3.83 |  | $ | 6.27 |
Diluted | 1.33 |  | 1.84 |  |  | 3.80 |  | 6.24 |
Comprehensive income (loss) | 1,292 |  | (533) |  |  | 1,221 |  | 50 |
Cash dividends declared on common stock | 94 |  | 94 |  |  | 283 |  | 282 |
Cash dividends declared per common share | 0.71 |  | 0.71 |  |  | 2.13 |  | 2.13 |

10

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |
| Third | Second | First | Fourth | Third |  | Third Quarter 2024 Compared to:
| Quarter | Quarter | Quarter | Quarter | Quarter |  | Second Quarter 2024 |  | Third Quarter 2023
(in millions, except per share data) | 2024 | 2024 | 2024 | 2023 | 2023 |  | Amount | Percent |  | Amount | Percent
INTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
Interest and fees on loans | $ | 798 |  | $ | 803 |  | $ | 808 |  | $ | 849 |  | $ | 862 |  |  | $ | (5) |  | (1 | %) |  | $ | (64) |  | (7 | %)
Interest on investment securities | 99 |  | 101 |  | 102 |  | 104 |  | 105 |  |  | (2) |  | (1) |  |  | (6) |  | (6) |
Interest on short-term investments | 85 |  | 67 |  | 109 |  | 96 |  | 136 |  |  | 18 |  | 26 |  |  | (51) |  | (38) |
Total interest income | 982 |  | 971 |  | 1,019 |  | 1,049 |  | 1,103 |  |  | 11 |  | 1 |  |  | (121) |  | (11) |
INTEREST EXPENSE |  |  |  |  |  |  |  |  |  |  |
Interest on deposits | 330 |  | 305 |  | 317 |  | 302 |  | 271 |  |  | 25 |  | 8 |  |  | 59 |  | 22 |
Interest on short-term borrowings | 1 |  | 9 |  | 37 |  | 58 |  | 125 |  |  | (8) |  | (88) |  |  | (124) |  | (99) |
Interest on medium- and long-term debt | 117 |  | 124 |  | 117 |  | 105 |  | 106 |  |  | (7) |  | (5) |  |  | 11 |  | 11 |
Total interest expense | 448 |  | 438 |  | 471 |  | 465 |  | 502 |  |  | 10 |  | 3 |  |  | (54) |  | (11) |
Net interest income | 534 |  | 533 |  | 548 |  | 584 |  | 601 |  |  | 1 |  | — |  |  | (67) |  | (11) |
Provision for credit losses | 14 |  | — |  | 14 |  | 12 |  | 14 |  |  | 14 |  | n/m |  | — |  | — |
Net interest income after provision for credit losses | 520 |  | 533 |  | 534 |  | 572 |  | 587 |  |  | (13) |  | (3) |  |  | (67) |  | (12) |
NONINTEREST INCOME |  |  |  |  |  |  |  |  |  |  |
Card fees | 64 |  | 64 |  | 66 |  | 68 |  | 71 |  |  | — |  | — |  |  | (7) |  | (9) |
Fiduciary income | 57 |  | 58 |  | 51 |  | 56 |  | 59 |  |  | (1) |  | (2) |  |  | (2) |  | (4) |
Service charges on deposit accounts | 46 |  | 46 |  | 45 |  | 45 |  | 47 |  |  | — |  | — |  |  | (1) |  | (2) |
Capital markets income | 39 |  | 37 |  | 30 |  | 34 |  | 35 |  |  | 2 |  | 7 |  |  | 4 |  | 11 |
Commercial lending fees | 17 |  | 17 |  | 16 |  | 17 |  | 19 |  |  | — |  | — |  |  | (2) |  | (8) |
Brokerage fees | 13 |  | 14 |  | 10 |  | 8 |  | 6 |  |  | (1) |  | — |  |  | 7 |  | n/m
Bank-owned life insurance | 12 |  | 11 |  | 10 |  | 10 |  | 12 |  |  | 1 |  | 9 |  |  | — |  | — |
Letter of credit fees | 10 |  | 10 |  | 10 |  | 11 |  | 10 |  |  | — |  | — |  |  | — |  | — |
Risk management hedging income (loss) | 7 |  | 17 |  | (25) |  | (74) |  | 17 |  |  | (10) |  | (57) |  | (10) |  | (58)
Other noninterest income | 12 |  | 17 |  | 23 |  | 23 |  | 19 |  |  | (5) |  | (34) |  |  | (7) |  | (35) |
Total noninterest income | 277 |  | 291 |  | 236 |  | 198 |  | 295 |  |  | (14) |  | (4) |  |  | (18) |  | (6) |
NONINTEREST EXPENSES |  |  |  |  |  |  |  |  |  |  |
Salaries and benefits expense | 335 |  | 323 |  | 348 |  | 359 |  | 315 |  |  | 12 |  | 4 |  |  | 20 |  | 6 |
Outside processing fee expense | 69 |  | 68 |  | 68 |  | 70 |  | 75 |  |  | 1 |  | 1 |  |  | (6) |  | (9) |
Software expense | 46 |  | 45 |  | 44 |  | 44 |  | 44 |  |  | 1 |  | 1 |  |  | 2 |  | 4 |
Occupancy expense | 46 |  | 44 |  | 44 |  | 45 |  | 44 |  |  | 2 |  | 5 |  |  | 2 |  | 5 |
Equipment expense | 13 |  | 13 |  | 12 |  | 14 |  | 12 |  |  | — |  | — |  |  | 1 |  | 9 |
FDIC insurance expense | 11 |  | 19 |  | 36 |  | 132 |  | 19 |  |  | (8) |  | (49) |  |  | (8) |  | (45) |
Advertising expense | 10 |  | 12 |  | 8 |  | 10 |  | 12 |  |  | (2) |  | (4) |  |  | (2) |  | (8) |
Other noninterest expenses | 32 |  | 31 |  | 43 |  | 44 |  | 34 |  |  | 1 |  | 1 |  |  | (2) |  | (9) |
Total noninterest expenses | 562 |  | 555 |  | 603 |  | 718 |  | 555 |  |  | 7 |  | 1 |  |  | 7 |  | 1 |
Income before income taxes | 235 |  | 269 |  | 167 |  | 52 |  | 327 |  |  | (34) |  | (12) |  |  | (92) |  | (28) |
Provision for income taxes | 51 |  | 63 |  | 29 |  | 19 |  | 76 |  |  | (12) |  | (18) |  | (25) |  | (32) |
NET INCOME | 184 |  | 206 |  | 138 |  | 33 |  | 251 |  |  | (22) |  | (10) |  |  | (67) |  | (26) |
Less: |  |  |  |  |  |  |  |  |  |  |
Income allocated to participating securities | 1 |  | 1 |  | 1 |  | — |  | 1 |  |  | — |  | — |  |  | — |  | — |
Preferred stock dividends | 6 |  | 5 |  | 6 |  | 6 |  | 6 |  |  | 1 |  | — |  |  | — |  | — |
Net income attributable to common shares | $ | 177 |  | $ | 200 |  | $ | 131 |  | $ | 27 |  | $ | 244 |  |  | $ | (23) |  | (11 | %) |  | $ | (67) |  | (27 | %)
Earnings per common share: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 1.34 |  | $ | 1.50 |  | $ | 0.99 |  | $ | 0.20 |  | $ | 1.85 |  |  | $ | (0.16) |  | (11 | %) |  | $ | (0.51) |  | (28 | %)
Diluted | 1.33 |  | 1.49 |  | 0.98 |  | 0.20 |  | 1.84 |  |  | (0.16) |  | (11) |  |  | (0.51) |  | (28) |
Comprehensive income (loss) | 1,292 |  | 200 |  | (271) |  | 1,525 |  | (533) |  |  | 1,092 |  | n/m |  | 1,825 |  | n/m
Cash dividends declared on common stock | 94 |  | 95 |  | 94 |  | 93 |  | 94 |  |  | (1) |  | n/m |  | — |  | — |
Cash dividends declared per common share | 0.71 |  | 0.71 |  | 0.71 |  | 0.71 |  | 0.71 |  |  | — |  | — |  |  | — |  | — |

n/m - not meaningful
11

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |
| 2024 |  | 2023
(in millions) | 3rd Qtr | 2nd Qtr | 1st Qtr |  | 4th Qtr | 3rd Qtr
Balance at beginning of period: |  |  |  |  |  |
Allowance for loan losses | $ | 686 |  | $ | 691 |  | $ | 688 |  |  | $ | 694 |  | $ | 684 |
Allowance for credit losses on lending-related commitments | 31 |  | 37 |  | 40 |  |  | 42 |  | 44 |
Allowance for credit losses | 717 |  | 728 |  | 728 |  |  | 736 |  | 728 |
Loan charge-offs: |  |  |  |  |  |
Commercial | 11 |  | 19 |  | 20 |  |  | 13 |  | 9 |
Commercial mortgage | 10 |  | 6 |  | — |  |  | 1 |  | 3 |
Lease financing | 1 |  | 3 |  | — |  |  | — |  | — |
International | 1 |  | — |  | — |  |  | 11 |  | 1 |
Consumer | — |  | — |  | 1 |  |  | — |  | 1 |
Total loan charge-offs | 23 |  | 28 |  | 21 |  |  | 25 |  | 14 |
Recoveries on loans previously charged-off: |  |  |  |  |  |
Commercial | 6 |  | 15 |  | 6 |  |  | 3 |  | 5 |
Commercial mortgage | 1 |  | 1 |  | — |  |  | 2 |  | 2 |
International | 5 |  | — |  | — |  |  | — |  | — |
Consumer | — |  | 1 |  | 1 |  |  | — |  | 1 |
Total recoveries | 12 |  | 17 |  | 7 |  |  | 5 |  | 8 |
Net loan charge-offs | 11 |  | 11 |  | 14 |  |  | 20 |  | 6 |
Provision for credit losses: |  |  |  |  |  |
Provision for loan losses | 11 |  | 6 |  | 17 |  |  | 14 |  | 16 |
Provision for credit losses on lending-related commitments | 3 |  | (6) |  | (3) |  |  | (2) |  | (2) |
Provision for credit losses | 14 |  | — |  | 14 |  |  | 12 |  | 14 |
Balance at end of period: |  |  |  |  |  |
Allowance for loan losses | 686 |  | 686 |  | 691 |  |  | 688 |  | 694 |
Allowance for credit losses on lending-related commitments | 34 |  | 31 |  | 37 |  |  | 40 |  | 42 |
Allowance for credit losses | $ | 720 |  | $ | 717 |  | $ | 728 |  |  | $ | 728 |  | $ | 736 |
Allowance for credit losses as a percentage of total loans | 1.43 | % | 1.38 | % | 1.43 | % |  | 1.40 | % | 1.38 | %
Net loan charge-offs as a percentage of average total loans | 0.08 |  | 0.09 |  | 0.10 |  |  | 0.15 |  | 0.05 |

12

NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |
| 2024 |  | 2023
(in millions) | 3rd Qtr | 2nd Qtr | 1st Qtr |  | 4th Qtr |  | 3rd Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS |  |  |  |  |  |  |
Nonperforming loans: |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |
Commercial | $ | 97 |  | $ | 94 |  | $ | 88 |  |  | $ | 75 |  |  | $ | 83 |
Real estate construction | — |  | — |  | — |  |  | 2 |  |  | 2 |
Commercial mortgage | 88 |  | 69 |  | 67 |  |  | 41 |  |  | 30 |
Lease financing | 1 |  | 1 |  | — |  |  | — |  |  | — |
International | 3 |  | 13 |  | 16 |  |  | 20 |  |  | 3 |
Total nonperforming business loans | 189 |  | 177 |  | 171 |  |  | 138 |  |  | 118 |
Retail loans: |  |  |  |  |  |  |
Residential mortgage | 36 |  | 23 |  | 23 |  |  | 19 |  |  | 19 |
Consumer: |  |  |  |  |  |  |
Home equity | 25 |  | 26 |  | 23 |  |  | 21 |  |  | 17 |
Total nonperforming retail loans | 61 |  | 49 |  | 46 |  |  | 40 |  |  | 36 |
Total nonperforming loans and nonperforming assets | 250 |  | 226 |  | 217 |  |  | 178 |  |  | 154 |
Nonperforming loans as a percentage of total loans | 0.50 | % | 0.44 | % | 0.43 | % |  | 0.34 | % |  | 0.29 | %
Nonperforming assets as a percentage of total loans and foreclosed property | 0.50 |  | 0.44 |  | 0.43 |  |  | 0.34 |  |  | 0.29 |
Allowance for credit losses as a multiple of total nonperforming loans | 2.9x | 3.2x | 3.4x |  | 4.1x |  | 4.8x
Loans past due 90 days or more and still accruing | $ | 21 |  | $ | 11 |  | $ | 32 |  |  | $ | 20 |  |  | $ | 45 |
ANALYSIS OF NONACCRUAL LOANS |  |  |  |  |  |  |
Nonaccrual loans at beginning of period | $ | 226 |  | $ | 217 |  | $ | 178 |  |  | $ | 154 |  |  | $ | 186 |
Loans transferred to nonaccrual (a) | 55 |  | 45 |  | 83 |  |  | 54 |  |  | 14 |
Nonaccrual loan gross charge-offs | (23) |  | (28) |  | (21) |  |  | (25) |  |  | (14) |
Loans transferred to accrual status (a) | — |  | — |  | (2) |  |  | — |  |  | (7) |
Nonaccrual loans sold | (14) |  | (2) |  | (12) |  |  | (1) |  |  | — |
Payments/other (b) | 6 |  | (6) |  | (9) |  |  | (4) |  |  | (25) |
Nonaccrual loans at end of period | $ | 250 |  | $ | 226 |  | $ | 217 |  |  | $ | 178 |  |  | $ | 154 |

(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.
13

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |
| Nine Months Ended
| September 30, 2024 |  | September 30, 2023
| Average |  | Average |  | Average |  | Average
(dollar amounts in millions) | Balance | Interest | Rate |  | Balance | Interest | Rate
Commercial loans (a) | $ | 26,305 |  | $ | 1,035 |  | 5.26 | % |  | $ | 30,631 |  | $ | 1,263 |  | 5.52 | %
Real estate construction loans | 4,642 |  | 292 |  | 8.41 |  |  | 3,786 |  | 228 |  | 8.05 |
Commercial mortgage loans | 14,104 |  | 788 |  | 7.46 |  |  | 13,694 |  | 723 |  | 7.06 |
Lease financing | 804 |  | 37 |  | 6.14 |  |  | 770 |  | 25 |  | 4.24 |
International loans | 1,096 |  | 64 |  | 7.85 |  |  | 1,245 |  | 73 |  | 7.89 |
Residential mortgage loans | 1,895 |  | 55 |  | 3.84 |  |  | 1,869 |  | 49 |  | 3.47 |
Consumer loans | 2,254 |  | 138 |  | 8.20 |  |  | 2,281 |  | 130 |  | 7.65 |
Total loans | 51,100 |  | 2,409 |  | 6.30 |  |  | 54,276 |  | 2,491 |  | 6.14 |
Mortgage-backed securities (b) | 14,560 |  | 298 |  | 2.29 |  |  | 15,865 |  | 318 |  | 2.28 |
U.S. Treasury securities (c) | 1,425 |  | 4 |  | 0.38 |  |  | 1,966 |  | 8 |  | 0.53 |
Total investment securities | 15,985 |  | 302 |  | 2.14 |  |  | 17,831 |  | 326 |  | 2.10 |
Interest-bearing deposits with banks (d) | 6,112 |  | 250 |  | 5.45 |  |  | 7,815 |  | 300 |  | 5.14 |
Other short-term investments | 381 |  | 11 |  | 3.94 |  |  | 319 |  | 9 |  | 3.57 |
Total earning assets | 73,578 |  | 2,972 |  | 5.19 |  |  | 80,241 |  | 3,126 |  | 5.03 |
Cash and due from banks | 711 |  |  |  |  | 1,251 |  |  |
Allowance for loan losses | (688) |  |  |  |  | (646) |  |  |
Accrued income and other assets | 7,415 |  |  |  |  | 7,383 |  |  |
Total assets | $ | 81,016 |  |  |  |  | $ | 88,229 |  |  |
Money market and interest-bearing checking deposits (e) | $ | 29,585 |  | 724 |  | 3.26 |  |  | $ | 25,519 |  | 419 |  | 2.18 |
Savings deposits | 2,277 |  | 4 |  | 0.21 |  |  | 2,886 |  | 5 |  | 0.20 |
Customer certificates of deposit | 3,797 |  | 103 |  | 3.61 |  |  | 2,414 |  | 42 |  | 2.35 |
Other time deposits | 3,035 |  | 120 |  | 5.30 |  |  | 3,247 |  | 123 |  | 5.08 |
Foreign office time deposits | 22 |  | 1 |  | 4.39 |  |  | 27 |  | 1 |  | 3.90 |
Total interest-bearing deposits | 38,716 |  | 952 |  | 3.28 |  |  | 34,093 |  | 590 |  | 2.30 |
Federal funds purchased | 9 |  | — |  | 5.39 |  |  | 34 |  | 1 |  | 4.68 |
Other short-term borrowings | 1,095 |  | 47 |  | 5.65 |  |  | 8,268 |  | 332 |  | 5.37 |
Medium- and long-term debt | 6,944 |  | 358 |  | 6.87 |  |  | 5,772 |  | 273 |  | 6.31 |
Total interest-bearing sources | 46,764 |  | 1,357 |  | 3.86 |  |  | 48,167 |  | 1,196 |  | 3.30 |
Noninterest-bearing deposits | 25,371 |  |  |  |  | 31,916 |  |  |
Accrued expenses and other liabilities | 2,588 |  |  |  |  | 2,466 |  |  |
Shareholders' equity | 6,293 |  |  |  |  | 5,680 |  |  |
Total liabilities and shareholders' equity | $ | 81,016 |  |  |  |  | $ | 88,229 |  |  |
Net interest income/rate spread |  | $ | 1,615 |  | 1.33 |  |  |  | $ | 1,930 |  | 1.73 |
Impact of net noninterest-bearing sources of funds |  |  | 1.49 |  |  |  |  | 1.38 |
Net interest margin (as a percentage of average earning assets) |  |  | 2.82 | % |  |  |  | 3.11 | %

(a)Interest income on commercial loans included net expense from cash flow swaps of $522 million and $432 million for the nine months ended September 30, 2024 and 2023, respectively.
(b)Average balances included $2.8 billion of unrealized losses for both the nine months ended September 30, 2024 and 2023; yields calculated gross of these unrealized gains and losses.
(c)Average balances included $55 million and $122 million of unrealized losses for the nine months ended September 30, 2024 and 2023, respectively; yields calculated gross of these unrealized gains and losses.
(d)Average balances included $2 million of collateral posted and netted against derivative liability positions for both the nine months ended September 30, 2024 and 2023; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $108 million and $213 million of collateral received and netted against derivative asset positions for the nine months ended September 30, 2024 and 2023, respectively; rates calculated gross of derivative netting amounts.
14

ANALYSIS OF NET INTEREST INCOME (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |  |
| Three Months Ended
| September 30, 2024 |  | June 30, 2024 |  | September 30, 2023
| Average |  | Average |  | Average |  | Average |  | Average |  | Average
(dollar amounts in millions) | Balance | Interest | Rate |  | Balance | Interest | Rate |  | Balance | Interest | Rate
Commercial loans (a) | $ | 26,173 |  | $ | 341 |  | 5.18 | % |  | $ | 26,292 |  | $ | 346 |  | 5.29 | % |  | $ | 29,721 |  | $ | 416 |  | 5.55 | %
Real estate construction loans | 4,205 |  | 89 |  | 8.43 |  |  | 4,553 |  | 95 |  | 8.43 |  |  | 4,294 |  | 90 |  | 8.29 |
Commercial mortgage loans | 14,494 |  | 272 |  | 7.44 |  |  | 14,171 |  | 263 |  | 7.47 |  |  | 13,814 |  | 257 |  | 7.38 |
Lease financing | 804 |  | 12 |  | 6.10 |  |  | 798 |  | 13 |  | 6.20 |  |  | 770 |  | 11 |  | 5.56 |
International loans | 1,036 |  | 20 |  | 7.73 |  |  | 1,111 |  | 22 |  | 8.02 |  |  | 1,241 |  | 25 |  | 7.97 |
Residential mortgage loans | 1,905 |  | 19 |  | 3.94 |  |  | 1,898 |  | 18 |  | 3.83 |  |  | 1,915 |  | 18 |  | 3.72 |
Consumer loans | 2,244 |  | 45 |  | 8.04 |  |  | 2,248 |  | 46 |  | 8.24 |  |  | 2,232 |  | 45 |  | 8.10 |
Total loans | 50,861 |  | 798 |  | 6.24 |  |  | 51,071 |  | 803 |  | 6.32 |  |  | 53,987 |  | 862 |  | 6.34 |
Mortgage-backed securities (b) | 14,608 |  | 98 |  | 2.29 |  |  | 14,290 |  | 99 |  | 2.29 |  |  | 15,205 |  | 104 |  | 2.28 |
U.S. Treasury securities (c) | 1,272 |  | 1 |  | 0.50 |  |  | 1,460 |  | 2 |  | 0.39 |  |  | 1,676 |  | 1 |  | 0.26 |
Total investment securities | 15,880 |  | 99 |  | 2.17 |  |  | 15,750 |  | 101 |  | 2.14 |  |  | 16,881 |  | 105 |  | 2.10 |
Interest-bearing deposits with banks (d) | 5,969 |  | 81 |  | 5.32 |  |  | 4,642 |  | 64 |  | 5.40 |  |  | 9,737 |  | 132 |  | 5.40 |
Other short-term investments | 393 |  | 4 |  | 3.83 |  |  | 366 |  | 3 |  | 3.99 |  |  | 391 |  | 4 |  | 4.00 |
Total earning assets | 73,103 |  | 982 |  | 5.17 |  |  | 71,829 |  | 971 |  | 5.20 |  |  | 80,996 |  | 1,103 |  | 5.21 |
Cash and due from banks | 593 |  |  |  |  | 603 |  |  |  |  | 1,130 |  |  |
Allowance for loan losses | (686) |  |  |  |  | (691) |  |  |  |  | (684) |  |  |
Accrued income and other assets | 7,221 |  |  |  |  | 7,466 |  |  |  |  | 7,708 |  |  |
Total assets | $ | 80,231 |  |  |  |  | $ | 79,207 |  |  |  |  | $ | 89,150 |  |  |
Money market and interest-bearing checking deposits (e) | $ | 30,960 |  | 260 |  | 3.34 |  |  | $ | 29,080 |  | 236 |  | 3.24 |  |  | $ | 26,043 |  | 178 |  | 2.70 |
Savings deposits | 2,194 |  | 1 |  | 0.19 |  |  | 2,287 |  | 2 |  | 0.22 |  |  | 2,640 |  | 2 |  | 0.23 |
Customer certificates of deposit | 3,625 |  | 31 |  | 3.39 |  |  | 3,901 |  | 36 |  | 3.67 |  |  | 3,049 |  | 24 |  | 3.08 |
Other time deposits | 2,739 |  | 37 |  | 5.35 |  |  | 2,403 |  | 31 |  | 5.28 |  |  | 5,121 |  | 67 |  | 5.21 |
Foreign office time deposits | 21 |  | 1 |  | 4.38 |  |  | 27 |  | — |  | 4.42 |  |  | 14 |  | — |  | 4.34 |
Total interest-bearing deposits | 39,539 |  | 330 |  | 3.31 |  |  | 37,698 |  | 305 |  | 3.23 |  |  | 36,867 |  | 271 |  | 2.90 |
Federal funds purchased | — |  | — |  | — |  |  | — |  | — |  | — |  |  | 11 |  | — |  | 5.31 |
Other short-term borrowings | 77 |  | 1 |  | 5.65 |  |  | 666 |  | 9 |  | 5.63 |  |  | 8,836 |  | 125 |  | 5.60 |
Medium- and long-term debt | 6,849 |  | 117 |  | 6.87 |  |  | 7,082 |  | 124 |  | 6.98 |  |  | 6,383 |  | 106 |  | 6.64 |
Total interest-bearing sources | 46,465 |  | 448 |  | 3.84 |  |  | 45,446 |  | 438 |  | 3.85 |  |  | 52,097 |  | 502 |  | 3.81 |
Noninterest-bearing deposits | 24,357 |  |  |  |  | 25,357 |  |  |  |  | 29,016 |  |  |
Accrued expenses and other liabilities | 2,469 |  |  |  |  | 2,556 |  |  |  |  | 2,659 |  |  |
Shareholders' equity | 6,940 |  |  |  |  | 5,848 |  |  |  |  | 5,378 |  |  |
Total liabilities and shareholders' equity | $ | 80,231 |  |  |  |  | $ | 79,207 |  |  |  |  | $ | 89,150 |  |  |
Net interest income/rate spread |  | $ | 534 |  | 1.33 |  |  |  | $ | 533 |  | 1.35 |  |  |  | $ | 601 |  | 1.40 |
Impact of net noninterest-bearing sources of funds |  |  | 1.47 |  |  |  |  | 1.51 |  |  |  |  | 1.44 |
Net interest margin (as a percentage of average earning assets) |  |  | 2.80 | % |  |  |  | 2.86 | % |  |  |  | 2.84 | %

(a)Interest income on commercial loans included net expense from cash flow swaps of $178 million, $174 million and $163 million for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(b)Average balances included unrealized losses of $2.4 billion for the three months ended September 30, 2024 and $3.1 billion for both the three months ended June 30, 2024 and September 30, 2023; yields calculated gross of these unrealized losses.
(c)Average balances included $38 million, $58 million and $115 million of unrealized losses for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively; yields calculated gross of these unrealized losses.
(d)Average balances included $13 million, excluded $8 million and included $59 million of collateral posted and netted against derivative liability positions for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively; yields calculated gross of derivative netting amounts.
(e)Average balances excluded $72 million, $121 million and $161 million of collateral received and netted against derivative asset positions for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively; rates calculated gross of derivative netting amounts.
15

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, 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 JUNE 30, 2024 | $ | 394 |  | 132.6 |  | $ | 1,141 |  | $ | 2,210 |  | $ | (3,463) |  | $ | 11,867 |  | $ | (5,988) |  | $ | 6,161 |
Net income | — |  | — |  | — |  | — |  | — |  | 184 |  | — |  | 184 |
Other comprehensive income, net of tax | — |  | — |  | — |  | — |  | 1,108 |  | — |  | — |  | 1,108 |
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 |  | — |  | (2) |  | — |  | (2) |  | 8 |  | 4 |
Share-based compensation | — |  | — |  | — |  | 9 |  | — |  | — |  | — |  | 9 |
BALANCE AT SEPTEMBER 30, 2024 | $ | 394 |  | 132.7 |  | $ | 1,141 |  | $ | 2,217 |  | $ | (2,355) |  | $ | 11,949 |  | $ | (5,980) |  | $ | 7,366 |
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 |
BALANCE AT DECEMBER 31, 2023 | $ | 394 |  | 131.9 |  | $ | 1,141 |  | $ | 2,224 |  | $ | (3,048) |  | $ | 11,727 |  | $ | (6,032) |  | $ | 6,406 |
Cumulative effect of change in accounting principle (a) | — |  | — |  | — |  | — |  | — |  | (4) |  | — |  | (4) |
Net income | — |  | — |  | — |  | — |  | — |  | 528 |  | — |  | 528 |
Other comprehensive income, net of tax | — |  | — |  | — |  | — |  | 693 |  | — |  | — |  | 693 |
Cash dividends declared on common stock ($2.13 per share) | — |  | — |  | — |  | — |  | — |  | (283) |  | — |  | (283) |
Cash dividends declared on preferred stock | — |  | — |  | — |  | — |  | — |  | (17) |  | — |  | (17) |
Net issuance of common stock under employee stock plans | — |  | 0.8 |  | — |  | (52) |  | — |  | (2) |  | 52 |  | (2) |
Share-based compensation | — |  | — |  | — |  | 45 |  | — |  | — |  | — |  | 45 |
BALANCE AT SEPTEMBER 30, 2024 | $ | 394 |  | 132.7 |  | $ | 1,141 |  | $ | 2,217 |  | $ | (2,355) |  | $ | 11,949 |  | $ | (5,980) |  | $ | 7,366 |  |

(a)Effective January 1, 2024, the Corporation adopted ASU 2023-02, which expanded the permitted use of the proportional amortization method to certain tax credit investments.
16

BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries |  |  |  |  |  |  |  |  |  |
(dollar amounts in millions) | Commercial Bank |  | Retail Bank |  | Wealth Management |  | Finance |  | Other |  | Total
Three Months Ended September 30, 2024 |  |  |  |  |
Earnings summary: |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) | $ | 464 |  |  | $ | 205 |  |  | $ | 46 |  |  | $ | (220) |  |  | $ | 39 |  |  | $ | 534 |
Provision for credit losses | 6 |  |  | 4 |  |  | 3 |  |  | — |  |  | 1 |  |  | 14 |
Noninterest income | 149 |  |  | 24 |  |  | 73 |  |  | 26 |  |  | 5 |  |  | 277 |
Noninterest expenses | 252 |  |  | 175 |  |  | 90 |  |  | 1 |  |  | 44 |  |  | 562 |
Provision (benefit) for income taxes | 83 |  |  | 12 |  |  | 7 |  |  | (48) |  |  | (3) |  |  | 51 |
Net income (loss) | $ | 272 |  |  | $ | 38 |  |  | $ | 19 |  |  | $ | (147) |  |  | $ | 2 |  |  | $ | 184 |
Net charge-offs | $ | 10 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
Selected average balances: |  |  |  |  |  |  |  |  |  |  |
Assets | $ | 45,669 |  |  | $ | 3,045 |  |  | $ | 5,296 |  |  | $ | 18,277 |  |  | $ | 7,944 |  |  | $ | 80,231 |
Loans | 43,462 |  |  | 2,347 |  |  | 5,042 |  |  | — |  |  | 10 |  |  | 50,861 |
Deposits | 32,261 |  |  | 24,224 |  |  | 3,844 |  |  | 3,300 |  |  | 267 |  |  | 63,896 |
Statistical data: |  |  |  |  |  |  |  |  |  |  |
Return on average assets (a) | 2.36 | % |  | 0.63 | % |  | 1.47 | % |  | n/m |  | n/m |  | 0.92 | %
Efficiency ratio (b) | 41.23 |  |  | 74.24 |  |  | 75.35 |  |  | n/m |  | n/m |  | 68.80 |
| Commercial Bank |  | Retail Bank |  | Wealth Management |  | Finance |  | Other |  | Total
Three Months Ended June 30, 2024 |  |  |  |  |
Earnings summary: |  |  |  |  |  |  |  |  |  |  |
Net interest income (expense) | $ | 465 |  |  | $ | 203 |  |  | $ | 48 |  |  | $ | (220) |  |  | $ | 37 |  |  | $ | 533 |
Provision for credit losses | — |  |  | 1 |  |  | (2) |  |  | — |  |  | 1 |  |  | — |
Noninterest income | 146 |  |  | 33 |  |  | 78 |  |  | 33 |  |  | 1 |  |  | 291 |
Noninterest expenses | 250 |  |  | 177 |  |  | 88 |  |  | 1 |  |  | 39 |  |  | 555 |
Provision (benefit) for income taxes | 85 |  |  | 14 |  |  | 10 |  |  | (46) |  |  | — |  |  | 63 |
Net income (loss) | $ | 276 |  |  | $ | 44 |  |  | $ | 30 |  |  | $ | (142) |  |  | $ | (2) |  |  | $ | 206 |
Net charge-offs | $ | 8 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 11 |
Selected average balances: |  |  |  |  |  |  |  |  |  |  |
Assets | $ | 45,843 |  |  | $ | 3,029 |  |  | $ | 5,299 |  |  | $ | 18,448 |  |  | $ | 6,588 |  |  | $ | 79,207 |
Loans | 43,709 |  |  | 2,322 |  |  | 5,026 |  |  | — |  |  | 14 |  |  | 51,071 |
Deposits | 31,176 |  |  | 24,590 |  |  | 3,951 |  |  | 3,032 |  |  | 306 |  |  | 63,055 |
Statistical data: |  |  |  |  |  |  |  |  |  |  |
Return on average assets (a) | 2.42 | % |  | 0.71 | % |  | 2.25 | % |  | n/m |  | n/m |  | 1.05 | %
Efficiency ratio (b) | 40.90 |  |  | 76.12 |  |  | 70.78 |  |  | n/m |  | n/m |  | 67.77 |
| Commercial Bank |  | Retail Bank |  | Wealth Management |  | Finance |  | Other |  | Total
Three Months Ended September 30, 2023 |  |  |  |  |
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 | % |  | 0.79 | % |  | 1.81 | % |  | n/m |  | n/m |  | 1.12 | %
Efficiency ratio (b) | 39.34 |  |  | 72.71 |  |  | 79.99 |  |  | n/m |  | n/m |  | 61.86 |

(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
17

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 performance trends. Comerica believes adjusted net income, earnings per share, ROA and ROE provide a greater understanding of ongoing operations and financial results by removing the impact of notable items from net income, net income available to common shareholders, average assets and average common shareholders’ equity. Notable items are meaningful because they provide greater detail of how certain events or initiatives affect Comerica’s results for a more informed understanding of those results. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.

| Third | Second | Third |  | Nine Months Ended
| Quarter | Quarter | Quarter |  | September 30,
(dollar amounts in millions, except per share data) | 2024 | 2024 | 2023 |  | 2024 | 2023
Adjusted Earnings per Common Share: |  |  |  |  |  |
Net income attributable to common shareholders | $ | 177 |  | $ | 200 |  | $ | 244 |  |  | $ | 508 |  | $ | 827 |
Net BSBY cessation hedging losses (a) | 9 |  | 3 |  | — |  |  | 48 |  | — |
FDIC special assessment (b) | (4) |  | 3 |  | — |  |  | 15 |  | — |
Modernization and expense recalibration initiatives (c) | 2 |  | 2 |  | (14) |  |  | 5 |  | 9 |
Income tax impact of above items | (2) |  | (2) |  | 3 |  |  | (16) |  | (2) |
Adjusted net income attributable to common shareholders | $ | 182 |  | $ | 206 |  | $ | 233 |  |  | $ | 560 |  | $ | 834 |
Diluted average common shares (in millions) | 134 |  | 134 |  | 133 |  |  | 134 |  | 133 |
Diluted earnings per common share: |  |  |  |  |  |
Reported | $ | 1.33 |  | $ | 1.49 |  | $ | 1.84 |  |  | $ | 3.80 |  | $ | 6.24 |
Adjusted | 1.37 |  | 1.53 |  | 1.76 |  |  | 4.19 |  | 6.29 |
Adjusted Net Income, ROA and ROE: |  |  |  |  |  |
Net income | $ | 184 |  | $ | 206 |  | $ | 251 |  |  | $ | 528 |  | $ | 848 |
Net BSBY cessation hedging losses (a) | 9 |  | 3 |  | — |  |  | 48 |  | — |
FDIC special assessment (b) | (4) |  | 3 |  | — |  |  | 15 |  | — |
Modernization and expense recalibration initiatives (c) | 2 |  | 2 |  | (14) |  |  | 5 |  | 9 |
Income tax impact of above items | (2) |  | (2) |  | 3 |  |  | (16) |  | (2) |
Adjusted net income | $ | 189 |  | $ | 212 |  | $ | 240 |  |  | $ | 580 |  | $ | 855 |
Average assets | $ | 80,231 |  | $ | 79,207 |  | $ | 89,150 |  |  | $ | 81,016 |  | $ | 88,229 |
Impact of adjusted items to average assets | — |  | — |  | 1 |  |  | (3) |  | — |
Adjusted average assets | $ | 80,231 |  | $ | 79,207 |  | $ | 89,151 |  |  | $ | 81,013 |  | $ | 88,229 |
ROA: |  |  |  |  |  |
Reported | 0.92 | % | 1.05 | % | 1.12 | % |  | 0.87 | % | 1.29 | %
Adjusted | 0.94 |  | 1.07 |  | 1.07 |  |  | 0.96 |  | 1.29 |
Average common shareholder’s equity | $ | 6,546 |  | $ | 5,454 |  | $ | 4,984 |  |  | $ | 5,898 |  | $ | 5,286 |
Impact of adjusted items to average common shareholders’ equity | 1 |  | — |  | (3) |  |  | 10 |  | 1 |
Adjusted average common shareholder’s equity | $ | 6,547 |  | $ | 5,454 |  | $ | 4,981 |  |  | $ | 5,908 |  | $ | 5,287 |
ROE: |  |  |  |  |  |
Reported | 10.88 | % | 14.78 | % | 19.50 | % |  | 11.58 | % | 21.02 | %
Adjusted | 11.22 |  | 15.18 |  | 18.65 |  |  | 12.74 |  | 21.18 |

(a)The planned cessation of BSBY announced in November 2023 resulted in the de-designation of certain interest rate swaps requiring reclassification of amounts recognized in AOCI into earnings. Settlement of interest payments and changes in fair value for each impacted swap were recorded as risk management hedging losses until the swap was re-designated. All impacted swaps were re-designated as of April 1, 2024; therefore, settlement of interest payments for third quarter 2024 and second quarter 2024 were recorded as net interest income.
(b)Additional FDIC insurance accrual adjustments resulting from the FDIC Board of Directors’ November 2023 approval of a special assessment to recover the loss to the Deposit Insurance Fund following the failures of Silicon Valley Bank and Signature Bank.
(c)Related to certain initiatives to transform the retail banking delivery model, align corporate facilities and optimize technology platforms, as well as calibrate expenses to enhance earnings power while creating capacity for strategic and risk management initiatives.
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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) | 2024 | 2024 | 2023
Common Equity Tier 1 Capital (a): |  |  |
Tier 1 capital | $ | 9,078 |  | $ | 8,980 |  | $ | 8,866 |
Less: |  |  |
Fixed-rate reset non-cumulative perpetual preferred stock | 394 |  | 394 |  | 394 |
Common equity tier 1 capital | $ | 8,684 |  | $ | 8,586 |  | $ | 8,472 |
Risk-weighted assets | $ | 72,576 |  | $ | 74,342 |  | $ | 78,439 |
Tier 1 capital ratio | 12.51 | % | 12.08 | % | 11.30 | %
Common equity tier 1 capital ratio | 11.97 |  | 11.55 |  | 10.80 |
Tangible Common Equity: |  |  |
Total shareholders' equity | $ | 7,366 |  | $ | 6,161 |  | $ | 4,972 |
Less: |  |  |
Fixed-rate reset non-cumulative perpetual preferred stock | 394 |  | 394 |  | 394 |
Common shareholders' equity | $ | 6,972 |  | $ | 5,767 |  | $ | 4,578 |
Less: |  |  |
Goodwill | 635 |  | 635 |  | 635 |
Other intangible assets | 6 |  | 7 |  | 8 |
Tangible common equity | $ | 6,331 |  | $ | 5,125 |  | $ | 3,935 |
Total assets | $ | 79,663 |  | $ | 79,597 |  | $ | 85,706 |
Less: |  |  |
Goodwill | 635 |  | 635 |  | 635 |
Other intangible assets | 6 |  | 7 |  | 8 |
Tangible assets | $ | 79,022 |  | $ | 78,955 |  | $ | 85,063 |
Common equity ratio | 8.75 | % | 7.24 | % | 5.34 | %
Tangible common equity ratio | 8.01 |  | 6.49 |  | 4.62 |
Tangible Common Equity per Share of Common Stock: |  |  |
Common shareholders' equity | $ | 6,972 |  | $ | 5,767 |  | $ | 4,578 |
Tangible common equity | 6,331 |  | 5,125 |  | 3,935 |
Shares of common stock outstanding (in millions) | 133 |  | 133 |  | 132 |
Common shareholders' equity per share of common stock | $ | 52.52 |  | $ | 43.49 |  | $ | 34.73 |
Tangible common equity per share of common stock | 47.69 |  | 38.65 |  | 29.85 |

(a)September 30, 2024 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.

| September 30, | June 30, | September 30,
(dollar amounts in millions) | 2024 | 2024 | 2023
Uninsured Deposits: |  |  |
Total uninsured deposits, as calculated per regulatory guidelines | $ | 31,926 |  | $ | 29,509 |  | $ | 31,476 |
Less: |  |  |
Affiliate deposits | (3,839) |  | (3,882) |  | (4,088) |
Total uninsured deposits, excluding affiliate deposits | $ | 28,087 |  | $ | 25,627 |  | $ | 27,388 |

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