Earnings release
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EX-99.1 2 a2025q4pressrelease-ex991.htm EX-99.1 CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) Comerica Incorporated and Subsidiaries Three Months Ended Years Ended December 31, September 30, December 31, December 31, (in millions, except per share data) 2025 2025 2024 2025 2024 NET INCOME, PER COMMON SHARE AND COMMON STOCK DATA Net income $ 176 $ 176 $ 170 $ 723 $ 698 Net income, excluding merger-related expense (a) 201 176 170 748 698 Diluted earnings per common share 1.27 1.35 1.22 5.28 5.02 Diluted earnings per common share, excluding merger-related expense (a) 1.46 1.35 1.22 5.47 5.02 Cash dividends declared 0.71 0.71 0.71 2.84 2.84 Average diluted shares (in thousands) 129,714 129,802 133,361 131,006 133,647 PERFORMANCE RATIOS Return on average common shareholders' equity 9.15 10.20 10.27 10.30 11.23 Return on average assets 0.88 0.89 0.85 0.92 0.87 Efficiency ratio (b) 72.30 70.23 69.51 69.64 70.68 CAPITAL Common equity tier 1 capital (a), (c) $ 8,754 $ 8,657 $ 8,667 Tier 1 capital (a), (c) 9,146 9,049 9,061 Risk-weighted assets (c) 72,841 72,714 72,903 Common equity tier 1 capital ratio (a), (c) 12.02 11.91 11.89 Tier 1 capital ratio (a), (c) 12.56 12.44 12.43 Total capital ratio (c) 14.25 14.13 14.21 Leverage ratio (c) 11.24 11.23 11.08 Common shareholders' equity per share of common stock $ 57.16 $ 55.15 $ 46.79 Tangible common equity per share of common stock (a) 52.16 50.14 41.91 Common equity ratio 9.14 9.09 7.75 Tangible common equity ratio (a) 8.40 8.34 7.00 AVERAGE BALANCES Commercial loans $ 26,891 $ 26,500 $ 26,198 $ 26,488 $ 26,278 Real estate construction loans 2,643 2,900 3,765 3,127 4,422 Commercial mortgage loans 15,331 15,283 14,728 15,019 14,260 Lease financing 780 776 752 755 791 International loans 1,124 1,115 988 1,078 1,069 Residential mortgage loans 1,968 1,954 1,921 1,948 1,902 Consumer loans 2,275 2,227 2,265 2,249 2,257 Total loans 51,012 50,755 50,617 50,664 50,979 Earning assets 72,401 71,220 72,072 71,091 73,199 Total assets 79,408 78,276 79,234 78,202 80,568 Noninterest-bearing deposits 22,484 22,923 24,222 22,995 25,082 Interest-bearing deposits 41,986 39,812 39,125 39,599 38,819 Total deposits 64,470 62,735 63,347 62,594 63,901 Common shareholders' equity 7,167 6,841 6,345 6,754 6,011 Total shareholders' equity 7,559 7,058 6,739 7,081 6,405 NET INTEREST INCOME Net interest income $ 577 $ 574 $ 575 $ 2,301 $ 2,190 Net interest margin 3.07 3.09 3.06 3.12 2.88 CREDIT QUALITY Nonperforming assets $ 251 $ 260 $ 308 Loans past due 90 days or more and still accruing 11 14 44 Net charge-offs 3 32 16 $ 89 $ 52 Allowance for loan losses 695 686 690 Allowance for credit losses on lending-related commitments 41 39 35 Total allowance for credit losses 736 725 725 Allowance for credit losses as a percentage of total loans 1.45 1.43 1.44 Net loan charge-offs as a percentage of average total loans 0.02 0.25 0.13 0.17 0.10 Nonperforming assets as a percentage of total loans and foreclosed property 0.49 0.51 0.61 Allowance for credit losses as a multiple of total nonperforming loans 3.0x 2.8x 2.4x OTHER KEY INFORMATION Number of banking centers 352 353 381 Number of employees - full time equivalent 7,876 7,927 7,766 (a) See Reconciliations of Non-GAAP Financial Measures and Regulatory Ratios. (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. (c) December 31, 2025 ratios are estimated. % % % % % % % % % % % % % % % % % % % % %
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CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries December 31, September 30, December 31, (in millions, except share data) 2025 2025 2024 (unaudited) (unaudited) ASSETS Cash and due from banks $ 866 $ 986 $ 850 Interest-bearing deposits with banks 6,631 4,053 5,954 Other short-term investments 325 325 375 Investment securities available-for-sale 14,910 14,816 15,045 Commercial loans 26,848 26,755 26,492 Real estate construction loans 2,503 2,849 3,680 Commercial mortgage loans 15,244 15,190 14,493 Lease financing 755 782 722 International loans 1,153 1,116 952 Residential mortgage loans 1,950 1,938 1,929 Consumer loans 2,300 2,256 2,271 Total loans 50,753 50,886 50,539 Allowance for loan losses (695) (686) (690) Net loans 50,058 50,200 49,849 Premises and equipment 426 432 473 Accrued income and other assets 6,858 6,564 6,751 Total assets $ 80,074 $ 77,376 $ 79,297 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $ 22,934 $ 22,581 $ 24,425 Money market and interest-bearing checking deposits 35,875 33,839 32,714 Savings deposits 1,974 2,014 2,138 Customer certificates of deposit 3,972 3,424 3,450 Other time deposits — 707 1,052 Foreign office time deposits 117 31 32 Total interest-bearing deposits 41,938 40,015 39,386 Total deposits 64,872 62,596 63,811 Accrued expenses and other liabilities 2,071 1,929 2,270 Medium- and long-term debt 5,424 5,422 6,673 Total liabilities 72,367 69,947 72,754 Preferred stock - no par value: Authorized - 10,000,000 shares Issued and outstanding - 400,000 shares at 12/31/25 and 9/30/25,4,000 shares at 12/31/24 392 392 394 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares 1,141 1,141 1,141 Capital surplus 2,198 2,197 2,218 Accumulated other comprehensive loss (2,079) (2,261) (3,161) Retained earnings 12,338 12,268 12,017 Less cost of common stock in treasury - 100,184,086 shares at 12/31/25, 100,575,744 shares at 9/30/25, 96,755,368 shares at 12/31/24 (6,283) (6,308) (6,066) Total shareholders' equity 7,707 7,429 6,543 Total liabilities and shareholders' equity $ 80,074 $ 77,376 $ 79,297 2
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Comerica Incorporated and Subsidiaries Three Months Ended Years Ended December 31, December 31, (in millions, except per share data) 2025 2024 2025 2024 (unaudited) (unaudited) (unaudited) INTEREST INCOME Interest and fees on loans $ 763 $ 795 $ 3,072 $ 3,204 Interest on investment securities 105 100 426 402 Interest on short-term investments 64 72 235 333 Total interest income 932 967 3,733 3,939 INTEREST EXPENSE Interest on deposits 279 286 1,067 1,238 Interest on short-term borrowings — 1 28 48 Interest on medium- and long-term debt 76 105 337 463 Total interest expense 355 392 1,432 1,749 Net interest income 577 575 2,301 2,190 Provision for credit losses 14 21 100 49 Net interest income after provision for credit losses 563 554 2,201 2,141 NONINTEREST INCOME Card fees 61 62 236 256 Fiduciary income 55 54 215 220 Service charges on deposit accounts 48 47 188 184 Capital markets income 36 36 146 142 Commercial lending fees 16 18 66 68 Brokerage fees 15 14 57 51 Letter of credit fees 12 10 43 40 Bank-owned life insurance 11 11 42 44 Risk management hedging income 1 9 17 8 Net losses on debt securities — (19) — (19) Other noninterest income 18 8 55 60 Total noninterest income 273 250 1,065 1,054 NONINTEREST EXPENSES Salaries and benefits expense 365 346 1,444 1,352 Outside processing fee expense 68 68 268 273 Software expense 51 46 197 181 Occupancy expense 49 47 189 181 Merger-related expense 32 — 32 — Equipment expense 13 14 52 52 Advertising expense 12 11 41 41 FDIC insurance expense 1 10 36 76 Other noninterest expenses 26 45 92 151 Total noninterest expenses 617 587 2,351 2,307 Income before income taxes 219 217 915 888 Provision for income taxes 43 47 192 190 NET INCOME 176 170 723 698 Less: Income allocated to participating securities 1 1 4 4 Preferred stock dividends and other 11 6 28 23 Net income attributable to common shares $ 164 $ 163 $ 691 $ 671 Earnings per common share: Basic $ 1.28 $ 1.23 $ 5.33 $ 5.06 Diluted 1.27 1.22 5.28 5.02 Comprehensive income (loss) 358 (636) 1,805 585 Cash dividends declared on common stock 90 93 367 376 Cash dividends declared per common share 0.71 0.71 2.84 2.84 3
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CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Comerica Incorporated and Subsidiaries Fourth Third Second First Fourth Fourth Quarter 2025 Compared to: Quarter Quarter Quarter Quarter Quarter Third Quarter 2025 Fourth Quarter 2024 (in millions, except per share data) 2025 2025 2025 2025 2024 Amount Percent Amount Percent INTEREST INCOME Interest and fees on loans $ 763 $ 779 $ 771 $ 759 $ 795 $ (16) (2) $ (32) (4 Interest on investment securities 105 105 107 109 100 — — 5 5 Interest on short-term investments 64 62 53 56 72 2 2 (8) (11) Total interest income 932 946 931 924 967 (14) (1) (35) (4) INTEREST EXPENSE Interest on deposits 279 280 256 252 286 (1) — (7) (2) Interest on short-term borrowings — 11 15 2 1 (11) (100) (1) (96) Interest on medium- and long-term debt 76 81 85 95 105 (5) (8) (29) (28) Total interest expense 355 372 356 349 392 (17) (5) (37) (9) Net interest income 577 574 575 575 575 3 1 2 — Provision for credit losses 14 22 44 20 21 (8) (34) (7) (32) Net interest income after provisionfor credit losses 563 552 531 555 554 11 2 9 2 NONINTEREST INCOME Card fees 61 57 59 59 62 4 7 (1) (1) Fiduciary income 55 51 57 52 54 4 6 1 2 Service charges on deposit accounts 48 47 47 46 47 1 — 1 1 Capital markets income 36 37 42 31 36 (1) (2) — — Commercial lending fees 16 17 17 16 18 (1) (1) (2) (4) Brokerage fees 15 14 14 14 14 1 5 1 7 Letter of credit fees 12 10 10 11 10 2 3 2 6 Bank-owned life insurance 11 13 9 9 11 (2) (15) — — Risk management hedging income 1 4 5 7 9 (3) (47) (8) (79) Net losses on debt securities — — — — (19) — — 19 n/m Other noninterest income 18 14 14 9 8 4 22 10 n/m Total noninterest income 273 264 274 254 250 9 3 23 9 NONINTEREST EXPENSES Salaries and benefits expense 365 353 358 368 346 12 3 19 5 Outside processing fee expense 68 69 67 64 68 (1) (2) — — Software expense 51 50 48 48 46 1 2 5 10 Occupancy expense 49 48 46 46 47 1 — 2 3 Merger-related expense 32 — — — — 32 n/m 32 n/m Equipment expense 13 13 13 13 14 — — (1) (7) Advertising expense 12 10 11 8 11 2 6 1 5 FDIC insurance expense 1 10 11 14 10 (9) (91) (9) (92) Other noninterest expenses 26 36 7 23 45 (10) (27) (19) (41) Total noninterest expenses 617 589 561 584 587 28 4 30 5 Income before income taxes 219 227 244 225 217 (8) (4) 2 1 Provision for income taxes 43 51 45 53 47 (8) (16) (4) (9) NET INCOME 176 176 199 172 170 — — 6 4 Less: Income allocated to participating securities 1 1 1 1 1 — — — — Preferred stock dividends and other 11 — 11 6 6 11 n/m 5 90 Net income attributable to common shares $ 164 $ 175 $ 187 $ 165 $ 163 $ (11) (6 $ 1 1 Earnings per common share: Basic $ 1.28 $ 1.36 $ 1.43 $ 1.26 $ 1.23 $ (0.08) (6 $ 0.05 4 Diluted 1.27 1.35 1.42 1.25 1.22 (0.08) (6) 0.05 4 Comprehensive income (loss) 358 414 395 638 (636) (56) (13) 994 n/m Cash dividends declared on common stock 90 91 93 93 93 (1) — (3) (2) Cash dividends declared per common share 0.71 0.71 0.71 0.71 0.71 — — — — n/m - not meaningful % %) %) % %) % 4
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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, and that net income and diluted earnings per common share, adjusted to exclude merger-related expenses, provide a greater understanding of ongoing operations and financial results. Fourth Third Fourth Years Ended Quarter Quarter Quarter December 31, (dollar amounts in millions, except per share data) 2025 2025 2024 2025 2024 Net Income, Excluding Merger-Related Expense: Net income $ 176 $ 176 $ 170 $ 723 $ 698 Merger-related expense (a) 32 — — 32 — Income tax impact of merger-related expense (7) — — (7) — Net income, excluding merger-related expense $ 201 $ 176 $ 170 $ 748 $ 698 Earnings per Common Share, Excluding Merger-Related Expense: Net income attributable to common shareholders $ 164 $ 175 $ 163 $ 691 $ 671 Merger-related expense (a) 32 — — 32 — Income tax impact of merger-related expense (7) — — (7) — Net income attributable to common shareholders, excluding merger-relatedexpense $ 189 $ 175 $ 163 $ 716 $ 671 Diluted average common shares (in millions) 130 130 133 131 134 Diluted earnings per common share: Reported $ 1.27 $ 1.35 $ 1.22 $ 5.28 $ 5.02 Excluding merger-related expense 1.46 1.35 1.22 5.47 5.02 (a) Expenses related to the pending merger with Fifth Third Bancorp, which was announced on October 6, 2025. On January 6, 2026, shareholders of Comerica and Fifth Third Bancorp voted separately to approve the proposed merger of the two companies. The transaction is expected to close in the first quarter of 2026, subject to satisfaction of the remaining customary closing conditions. 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. Tangible common equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk. 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. 5
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December 31, September 30, December 31, (in millions, except share data) 2025 2025 2024 Common Equity Tier 1 Capital (a): Tier 1 capital $ 9,146 $ 9,049 $ 9,061 Less: Fixed-rate reset non-cumulative perpetual preferred stock 392 392 394 Common equity tier 1 capital $ 8,754 $ 8,657 $ 8,667 Risk-weighted assets $ 72,841 $ 72,714 $ 72,903 Tier 1 capital ratio 12.56 12.44 12.43 Common equity tier 1 capital ratio 12.02 11.91 11.89 Tangible Common Equity: Total shareholders' equity $ 7,707 $ 7,429 $ 6,543 Less: Fixed-rate reset non-cumulative perpetual preferred stock 392 392 394 Common shareholders' equity $ 7,315 $ 7,037 $ 6,149 Less: Goodwill 635 635 635 Other intangible assets 4 5 6 Tangible common equity $ 6,676 $ 6,397 $ 5,508 Total assets $ 80,074 $ 77,376 $ 79,297 Less: Goodwill 635 635 635 Other intangible assets 4 5 6 Tangible assets $ 79,435 $ 76,736 $ 78,656 Common equity ratio 9.14 9.09 7.75 Tangible common equity ratio 8.40 8.34 7.00 Tangible Common Equity per Share of Common Stock: Common shareholders' equity $ 7,315 $ 7,037 $ 6,149 Tangible common equity 6,676 6,397 5,508 Shares of common stock outstanding (in millions) 128 128 131 Common shareholders' equity per share of common stock $ 57.16 $ 55.15 $ 46.79 Tangible common equity per share of common stock 52.16 50.14 41.91 (a) December 31, 2025 ratios are estimated. % % % % % % 6