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 September 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 October 26, 2022: 130,952,419 shares

COMERICA INCORPORATED AND SUBSIDIARIES

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Consolidated Balance Sheets at September 30, 2022 (unaudited) and December 31, 2021	1
Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)	2
Consolidated Statements of Changes in Shareholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021 (unaudited)	3
Consolidated Statements of Cash Flows for the Nine Months Ended September 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	61
ITEM 4. Controls and Procedures	61
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings	61
ITEM 1A. Risk Factors	61
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	61
ITEM 6. Exhibits	62
Signature	63

Part I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

Comerica Incorporated and Subsidiaries

(in millions, except share data)	September 30, 2022		December 31, 2021
	(unaudited)
ASSETS
Cash and due from banks	$	1,735	$	1,236
Interest-bearing deposits with banks	4,235		21,443
Other short-term investments	159		197
Investment securities available-for-sale	19,452		16,986
Commercial loans	30,713		29,366
Real estate construction loans	2,617		2,948
Commercial mortgage loans	12,438		11,255
Lease financing	713		640
International loans	1,216		1,208
Residential mortgage loans	1,753		1,771
Consumer loans	2,262		2,097
Total loans	51,712		49,285
Allowance for loan losses	(576)		(588)
Net loans	51,136		48,697
Premises and equipment	412		454
Accrued income and other assets	7,014		5,603
Total assets	$	84,143	$	94,616
LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	42,296	$	45,800
Money market and interest-bearing checking deposits	25,663		31,349
Savings deposits	3,375		3,167
Customer certificates of deposit	1,661		1,973
Foreign office time deposits	21		50
Total interest-bearing deposits	30,720		36,539
Total deposits	73,016		82,339
Short-term borrowings	508		—
Accrued expenses and other liabilities	2,534		1,584
Medium- and long-term debt	3,016		2,796
Total liabilities	79,074		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	2,209		2,175
Accumulated other comprehensive loss	(3,587)		(212)
Retained earnings	11,005		10,494
Less cost of common stock in treasury - 97,244,273 shares at 9/30/2022 and 97,476,872 shares at 12/31/2021	(6,093)		(6,095)
Total shareholders’ equity	5,069		7,897
Total liabilities and shareholders’ equity	$	84,143	$	94,616

See notes to consolidated financial statements (unaudited).

1

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

Comerica Incorporated and Subsidiaries 

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions, except per share data)	2022		2021		2022		2021
INTEREST INCOME
Interest and fees on loans	$	597	$	411	$	1,434	$	1,201
Interest on investment securities	119		70		296		209
Interest on short-term investments	34		8		66		17
Total interest income	750		489		1,796		1,427
INTEREST EXPENSE
Interest on deposits	16		5		24		17
Interest on short-term borrowings	1		—		1		—
Interest on medium- and long-term debt	26		9		47		27
Total interest expense	43		14		72		44
Net interest income	707		475		1,724		1,383
Provision for credit losses	28		(42)		27		(359)
Net interest income after provision for credit losses	679		517		1,697		1,742
NONINTEREST INCOME
Card fees	67		72		205		227
Fiduciary income	58		58		178		171
Service charges on deposit accounts	50		50		148		145
Derivative income	35		20		86		72
Commercial lending fees	29		31		81		76
Bank-owned life insurance	12		12		37		32
Letter of credit fees	10		10		28		30
Brokerage fees	6		3		14		11
Other noninterest income	11		24		13		70