Comerica Incorporated (CMA) Bundle
A Brief History of Comerica Incorporated
Comerica Incorporated, a financial services company headquartered in Dallas, Texas, has a rich history dating back to its founding in 1849. Initially established as the Detroit Savings Fund Institute, it has evolved through various mergers and acquisitions to become a leading financial institution primarily focused on commercial banking.
Recent Financial Performance
As of September 30, 2024, Comerica reported a net income of $528 million for the nine months ended, a decline from $848 million during the same period in 2023. This decrease was primarily due to lower net interest income and higher noninterest expenses.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Interest Income | $1,615 million | $1,930 million |
| Provision for Credit Losses | $28 million | $77 million |
| Noninterest Income | $804 million | $880 million |
| Noninterest Expenses | $1,720 million | $1,641 million |
| Net Income | $528 million | $848 million |
| Diluted Earnings per Share | $3.80 | $6.24 |
Asset Composition
As of September 30, 2024, Comerica’s total assets were reported at $79.7 billion, with a significant portion attributed to commercial loans and investment securities.
| Asset Type | Amount (in millions) |
|---|---|
| Total Assets | $79,663 million |
| Loans Outstanding | $51,100 million |
| Investment Securities | $15,985 million |
| Cash and Cash Equivalents | $6,112 million |
Loan Portfolio Overview
Comerica's loan portfolio is diversified across various sectors, with commercial loans representing the largest share. The following table summarizes the loan composition as of September 30, 2024.
| Loan Type | Outstanding (in millions) | Percentage of Total Loans |
|---|---|---|
| Commercial Loans | $26,305 million | 51.5% |
| Real Estate Loans | $4,642 million | 9.1% |
| Consumer Loans | $2,254 million | 4.4% |
| International Loans | $1,096 million | 2.2% |
Equity and Capital Management
Comerica has maintained a robust capital position, with total shareholders' equity reported at $7,366 million as of September 30, 2024. The company has been proactive in managing its capital structure, including share repurchase programs.
| Equity Metrics | Amount (in millions) |
|---|---|
| Total Shareholders' Equity | $7,366 million |
| Cash Dividends Declared on Common Stock | $283 million |
| Cash Dividends Declared per Common Share | $2.13 |
Market Position and Future Outlook
Comerica's strategic focus on commercial banking services positions it well within the financial sector. The ongoing adjustments to its loan portfolio and cost management initiatives are expected to enhance its operational efficiency moving forward.
A Who Owns Comerica Incorporated (CMA)
Major Shareholders
As of 2024, Comerica Incorporated (CMA) has a diversified ownership structure. The following table outlines the major shareholders of Comerica, including institutional and individual investors.
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.2% |
| Institutional Investor | State Street Corporation | 4.9% |
| Institutional Investor | Wellington Management Group LLP | 3.6% |
| Individual Investor | John A. McCoy (CEO) | 0.6% |
| Institutional Investor | FMR LLC | 3.1% |
| Other | Other Institutional Investors | 68.1% |
Insider Ownership
Insider ownership at Comerica is relatively modest, with key executives and directors holding a combined total of approximately 2.5% of the company's shares.
| Insider Name | Position | Ownership Percentage |
|---|---|---|
| John A. McCoy | Chairman and CEO | 0.6% |
| David E. Dupre | Executive Vice President | 0.4% |
| Other Executives | Various | 1.5% |
Market Capitalization and Stock Performance
As of the end of September 2024, Comerica's market capitalization stood at approximately $7.5 billion. The stock has seen varied performance, with a year-to-date increase of about 12%.
| Metric | Value |
|---|---|
| Market Capitalization | $7.5 billion |
| Stock Price (as of September 30, 2024) | $65.00 |
| Year-to-Date Performance | +12% |
| 52-Week Range | $55.00 - $70.00 |
Recent Shareholder Changes
In recent months, there have been notable changes among Comerica's shareholders, particularly with increased stakes from major institutional investors.
| Investor Name | Change in Ownership | Previous Ownership | Current Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Increased | 7.8% | 8.5% |
| BlackRock, Inc. | Increased | 6.9% | 7.2% |
| State Street Corporation | Stable | 4.9% | 4.9% |
Shareholder Engagement and Policies
Comerica maintains an active dialogue with its shareholders, emphasizing transparency and engagement through regular updates and shareholder meetings.
| Engagement Activity | Frequency |
|---|---|
| Annual Shareholder Meeting | Once a Year |
| Quarterly Earnings Calls | Four Times a Year |
| Investor Relations Updates | Monthly |
Comerica Incorporated (CMA) Mission Statement
Overview of Mission Statement
Comerica Incorporated's mission statement emphasizes its commitment to providing exceptional financial services while supporting the economic growth of the communities it serves. The company focuses on delivering value to its customers, shareholders, and employees by maintaining high ethical standards and fostering a culture of inclusiveness.
Key Components of the Mission Statement
- Customer-Centric Approach: Prioritizing customer needs and tailoring services to meet those needs.
- Community Engagement: Actively participating in community development and economic initiatives.
- Employee Empowerment: Creating a diverse and inclusive workplace that encourages employee growth and satisfaction.
- Financial Performance: Committing to sustainable financial practices that enhance shareholder value.
Financial Performance Indicators
As of the third quarter of 2024, Comerica reported significant financial metrics that highlight its performance in alignment with its mission statement.
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Net Income | $528 million | $848 million | (37.8%) |
| Net Interest Income | $1,615 million | $1,930 million | (16.3%) |
| Noninterest Income | $804 million | $880 million | (8.6%) |
| Noninterest Expenses | $1,720 million | $1,641 million | 4.8% |
| Diluted Earnings per Share | $3.80 | $6.24 | (39.1%) |
Strategic Objectives
The mission statement is supported by strategic objectives aimed at enhancing the company's competitive position within the financial services industry. These objectives include:
- Innovation in Services: Continuously improving and expanding service offerings to meet evolving customer needs.
- Risk Management: Implementing robust risk management practices to safeguard assets and ensure financial stability.
- Market Expansion: Exploring opportunities for growth in new markets while strengthening existing customer relationships.
Community Impact
Comerica's commitment to community engagement is reflected in its various initiatives aimed at fostering economic development. As of 2024, the company has invested in multiple community projects, emphasizing education, workforce development, and financial literacy.
| Community Initiative | Investment ($ million) | Focus Area |
|---|---|---|
| Financial Literacy Programs | $10 million | Education |
| Workforce Development | $15 million | Employment |
| Community Development Projects | $20 million | Economic Growth |
Conclusion on Mission Alignment
Comerica Incorporated's mission statement serves as a guiding principle for its operations, emphasizing customer satisfaction, community involvement, and employee engagement. The company continues to adapt its strategies to enhance its financial performance while remaining committed to its core values.
How Comerica Incorporated (CMA) Works
Financial Overview
As of September 30, 2024, Comerica Incorporated reported total assets of $79.663 billion, a decrease from $85.834 billion at the end of 2023. Total liabilities were $72.297 billion, down from $79.428 billion.
The company’s total shareholders' equity increased to $7.366 billion from $6.406 billion during the same period.
Income Statement Highlights
For the nine months ended September 30, 2024, Comerica reported:
- Net interest income of $1.615 billion, down from $1.930 billion in the same period of 2023.
- Provision for credit losses of $28 million, compared to $77 million in 2023.
- Noninterest income totaled $804 million, a decrease from $880 million in 2023.
- Total noninterest expenses rose to $1.720 billion, compared to $1.641 billion in the previous year.
- Net income was $528 million, down from $848 million in 2023.
- Diluted earnings per share decreased to $3.80 from $6.24.
Breakdown of Net Interest Income
The following table summarizes the average balances, interest earned, and average rates for key loan categories:
| Loan Type | Average Balance (in million $) | Interest (in million $) | Average Rate (%) |
|---|---|---|---|
| Commercial loans | 26,305 | 1,035 | 5.26 |
| Real estate construction loans | 4,642 | 292 | 8.41 |
| Commercial mortgage loans | 14,104 | 788 | 7.46 |
| Consumer loans | 2,254 | 138 | 8.20 |
| Total loans | 51,100 | 2,409 | 6.30 |
Noninterest Income Sources
The composition of noninterest income for the nine months ended September 30, 2024, was as follows:
| Source | Amount (in million $) |
|---|---|
| Card fees | 194 |
| Fiduciary income | 166 |
| Service charges on deposit accounts | 137 |
| Commercial loan servicing fees | 50 |
| Total noninterest income | 804 |
Expense Management
Comerica's noninterest expenses showed an increase primarily due to the following:
- Salaries and benefits expense amounted to $1.006 billion.
- Outside processing fee expenses were $205 million.
- FDIC insurance expenses reached $66 million.
Loan Portfolio Composition
The total loan portfolio as of September 30, 2024, is detailed below:
| Category | Amount (in million $) | Percentage of Total Loans |
|---|---|---|
| Commercial loans | 24,624 | 48.6% |
| Real estate construction loans | 3,859 | 7.7% |
| Commercial mortgage loans | 14,774 | 28.9% |
| Consumer loans | 2,295 | 4.5% |
| Total loans | 51,100 | 100% |
Geographic Distribution of Banking Centers
As of September 30, 2024, Comerica operated a total of 380 banking centers, distributed as follows:
| Region | Number of Banking Centers |
|---|---|
| Michigan | 159 |
| Texas | 113 |
| California | 88 |
| Other Markets | 20 |
How Comerica Incorporated (CMA) Makes Money
Revenue Streams
Comerica Incorporated generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
As of September 30, 2024, Comerica reported a net interest income of $1,615 million, a decrease from $1,930 million in the same period of 2023. The decline in net interest income was attributed to lower loan volumes and increased interest-bearing deposit balances.
| Loan Type | Average Balance (in millions) | Interest Income (in millions) | Average Rate |
|---|---|---|---|
| Commercial Loans | $26,305 | $1,035 | 5.26% |
| Real Estate Construction Loans | $4,642 | $292 | 8.41% |
| Commercial Mortgage Loans | $14,104 | $788 | 7.46% |
| Lease Financing | $804 | $37 | 6.14% |
| International Loans | $1,096 | $64 | 7.85% |
| Residential Mortgage Loans | $1,895 | $55 | 3.84% |
| Consumer Loans | $2,254 | $138 | 8.20% |
| Total Loans | $51,100 | $2,409 | 6.30% |
Noninterest Income
For the nine months ended September 30, 2024, Comerica reported a noninterest income of $804 million, down from $880 million in 2023. The major components of noninterest income include:
| Source | 2024 Income (in millions) | 2023 Income (in millions) |
|---|---|---|
| Card Fees | $161 | $175 |
| Fiduciary Income | $1 | $1 |
| Service Charges on Deposit Accounts | $93 | $95 |
| Commercial Loan Servicing Fees | $7 | $9 |
| Capital Markets Income | $18 | $12 |
| Brokerage Fees | $1 | - |
| Total Noninterest Income | $804 | $880 |
Operating Expenses
Comerica's noninterest expenses for the nine months ended September 30, 2024, totaled $1,720 million, compared to $1,641 million in 2023. The increase in noninterest expenses was primarily due to higher salaries and benefits, along with increased FDIC insurance expenses.
Profitability Metrics
For the nine months ended September 30, 2024, Comerica reported a net income of $528 million, down from $848 million in 2023. The diluted earnings per common share decreased to $3.80 from $6.24 in the prior year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $528 | $848 |
| Diluted Earnings per Share | $3.80 | $6.24 |
| Efficiency Ratio | 71.08% | 61.86% |
Balance Sheet Highlights
As of September 30, 2024, Comerica reported total assets of $80,231 million, with total loans amounting to $50,861 million and total deposits of $63,896 million.
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $80,231 |
| Total Loans | $50,861 |
| Total Deposits | $63,896 |
Conclusion
Comerica's business model focuses on commercial banking, retail banking, and wealth management, leveraging its diverse portfolio to generate revenue across various segments while managing expenses to maintain profitability.
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Article updated on 8 Nov 2024
Resources:
- Comerica Incorporated (CMA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Comerica Incorporated (CMA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Comerica Incorporated (CMA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.