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DALLAS - On Friday, Comerica Incorporated (NYSE:CMA) reported second quarter net income of $199 million, or $1.42 per share, exceeding analyst expectations of $1.25 per share. Revenue reached $849 million, surpassing the consensus estimate of $843.63 million.
The bank’s performance represented a 16% increase in net income compared to the first quarter, though it declined 3% from the $206 million reported in the same quarter last year. Revenue benefited from stable net interest income and improved noninterest income.
Comerica saw broad-based loan growth with average loans increasing $451 million to $50.7 billion. Period-end loans jumped even more significantly, rising $1.3 billion to $51.2 billion, with growth across most business lines. Average deposits decreased $653 million to $61.2 billion.
"Improved customer sentiment contributed to broad-based loan growth, offsetting modest deposit pressures and keeping net interest income flat to the first quarter and in line with guidance," said Curtis C. Farmer, Comerica Chairman and Chief Executive Officer.
Net interest income remained stable at $575 million compared to the previous quarter, though it increased 8% from $533 million in the year-ago period. The net interest margin decreased slightly to 3.16% from 3.18% in the first quarter.
Noninterest income increased $20 million to $274 million, driven by higher capital markets income, deferred compensation asset returns, and fiduciary income. Meanwhile, noninterest expenses decreased $23 million to $561 million.
Credit quality remained strong with net charge-offs at 22 basis points, which the company described as "at the low end of our normal range." The allowance for credit losses was $735 million, or 1.44% of total loans, unchanged from the previous quarter.
"We believe our proven approach to credit and underwriting serves as a competitive advantage," Farmer noted, adding that the bank is "well-positioned to support our customers as they navigate the dynamic environment."
Comerica maintained a strong capital position with an estimated common equity Tier 1 capital ratio of 11.94%. The bank returned $193 million to shareholders through $100 million in share repurchases and $93 million in dividends.
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