UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________

FORM 10-Q

______________________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 1-10706

____________________________________________________________________________________

Comerica Incorporated

(Exact name of registrant as specified in its charter)

___________________________________________________________________________________

Delaware	38-1998421
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Comerica Bank Tower

1717 Main Street, MC 6404

Dallas, Texas 75201

(Address of principal executive offices)

(Zip Code)

(214) 462-6831

(Registrant’s telephone number, including area code) 

_________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $5 par value	CMA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

$5 par value common stock:

Outstanding as of July 26, 2022: 130,819,770 shares

COMERICA INCORPORATED AND SUBSIDIARIES

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated Balance Sheets at June 30, 2022 (unaudited) and December 31, 2021	1
Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	2
Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2022 and 2021 (unaudited)	3
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021 (unaudited)	4
Notes to Consolidated Financial Statements (unaudited)	5
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk	60
ITEM 4. Controls and Procedures	60
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings	60
ITEM 1A. Risk Factors	60
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	60
ITEM 6. Exhibits	61
Signature	62

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

Comerica Incorporated and Subsidiaries

(in millions, except share data)	June 30, 2022		December 31, 2021
	(unaudited)
ASSETS
Cash and due from banks	$	1,631	$	1,236
Interest-bearing deposits with banks	5,902		21,443
Other short-term investments	160		197
Investment securities available-for-sale	20,829		16,986
Commercial loans	31,259		29,366
Real estate construction loans	2,465		2,948
Commercial mortgage loans	11,855		11,255
Lease financing	653		640
International loans	1,291		1,208
Residential mortgage loans	1,753		1,771
Consumer loans	2,178		2,097
Total loans	51,454		49,285
Allowance for loan losses	(563)		(588)
Net loans	50,891		48,697
Premises and equipment	422		454
Accrued income and other assets	7,054		5,603
Total assets	$	86,889	$	94,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	42,308	$	45,800
Money market and interest-bearing checking deposits	28,409		31,349
Savings deposits	3,342		3,167
Customer certificates of deposit	1,686		1,973
Foreign office time deposits	20		50
Total interest-bearing deposits	33,457		36,539
Total deposits	75,765		82,339
Accrued expenses and other liabilities	2,059		1,584
Medium- and long-term debt	2,630		2,796
Total liabilities	80,454		86,719
Fixed rate reset non-cumulative perpetual preferred stock, series A, no par value, $100,000 liquidation preference per share:
Authorized - 4,000 shares
Issued - 4,000 shares	394		394
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares	1,141		1,141
Capital surplus	2,204		2,175
Accumulated other comprehensive loss	(1,954)		(212)
Retained earnings	10,752		10,494
Less cost of common stock in treasury - 97,387,508 shares at 6/30/2022 and 97,476,872 shares at 12/31/2021	(6,102)		(6,095)
Total shareholders’ equity	6,435		7,897
Total liabilities and shareholders’ equity	$	86,889	$	94,616

See notes to consolidated financial statements (unaudited).

1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

Comerica Incorporated and Subsidiaries 

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share data)	2022		2021		2022		2021
INTEREST INCOME
Interest and fees on loans	$	454	$	404	$	837	$	790
Interest on investment securities	100		70		177		139
Interest on short-term investments	23		5		32		9
Total interest income	577		479		1,046		938
INTEREST EXPENSE
Interest on deposits	4		5		8		12
Interest on medium- and long-term debt	12		9		21		18
Total interest expense	16		14		29		30
Net interest income	561		465		1,017		908
Provision for credit losses	10		(135)		(1)		(317)
Net interest income after provision for credit losses	551		600		1,018		1,225
NONINTEREST INCOME
Card fees	69		84		138		155
Fiduciary income	62		60		120		113
Service charges on deposit accounts	50		47		98		95
Commercial lending fees	30		27		52		45
Derivative income	29		22		51		52
Bank-owned life insurance	12		9		25		20
Letter of credit fees	9		10		18		20
Brokerage fees	4		4		8		8
Other noninterest income	3		21		2		46
Total noninterest income	268		284		512		554
NONINTEREST EXPENSES
Salaries and benefits expense	294		277		583		559
Outside processing fee expense	62		71		124		135
Software expense	41		38		80		77
Occupancy expense	40		38		78		77
Equipment expense	13		13		24		25
Advertising expense	8		9		15		15
FDIC insurance expense	8		7		16		13
Other noninterest expenses	16		10		35		9
Total noninterest expenses	482		463		955		910
Income before income taxes	337		421		575		869
Provision for income taxes	76		93		125		191
NET INCOME	261		328		450		678
Less:
Income allocated to participating securities	1		2		2		3
Preferred stock dividends	5		5		11		11
Net income attributable to common shares	$	255	$	321