[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  LongYield [@LongYield](/creator/twitter/LongYield) on x 4484 followers Created: 2025-07-20 16:40:31 UTC $CMA Comerica Incorporated Earnings Call Key Highlights: (2/2) 📉 Expense Discipline and Revised Guidance Noninterest expenses fell $XX million quarter-over-quarter due to lower litigation costs and seasonal declines in compensation. Expense tailwinds included one-time benefits such as litigation recoveries, asset sales, and state tax recoveries; partially offset by modest increases in processing and advertising. FY2025 noninterest expense growth guidance was revised downward to X% from prior estimates, reflecting strong YTD performance and tighter cost controls. Third quarter expenses expected to rise sequentially due to the absence of one-time Q2 benefits, seasonal trends, and reinvestment in strategic growth initiatives. 🔐 Credit Quality and Reserve Management Credit quality remained resilient, with net charge-offs flat at XX basis points, at the low end of Comerica’s historical range. Nonperforming loans declined to the lowest level in four quarters and remained well below long-term averages, demonstrating ongoing credit discipline. Criticized loans increased moderately, concentrated in three middle-market credits tied to consumer-facing segments such as luxury goods, liquor, and freight. Provisioning remained conservative with the allowance coverage ratio unchanged at 1.44%, as macroeconomic risks were already reflected in prior qualitative adjustments. 📈 Capital Positioning and Repurchases CET1 capital ratio stood at 11.94%, enabling a $XXX million common stock repurchase in Q2 and another $XXX million targeted for Q3 2025. Redeemed preferred stock during the quarter to avoid reset to a higher coupon rate; while slightly dilutive to net interest income, this move is expected to be EPS accretive. Tangible common equity ratio improved by XX basis points due to reduced AOCI losses and favorable market rate movement. Continued strong capital flexibility allows for both shareholder returns and organic growth investments without compromising regulatory thresholds. 🔮 Revised Outlook for 2025 Full-year average loan growth guidance improved to flat to down 1%, reflecting stronger-than-expected Q2 trends and continued pipeline strength across most business lines. FY2025 average deposits still expected to decline 2%–3%, driven by planned runoff in brokered CDs, though core deposit growth is expected to strengthen in Q4. FY2025 net interest income growth forecast of 5%–7% maintained, though Q3 guidance points to a slight dip due to one-time factors; full-year NII now likely to be near the low end of range. Full-year charge-offs expected at the lower end of Comerica’s 20–40 basis point range; tax rate lowered to approximately XX% for the year, excluding discrete items. 🌍 Strategic Positioning and M&A Considerations Management reiterated a focus on long-term strategic growth through organic expansion, notably in payments, middle-market banking, and geographic diversification. Acknowledged broader industry interest in M&A activity, especially in Texas, but emphasized that Comerica’s focus remains on shareholder value and strategic alignment. Stressed that CET1 threshold (e.g., $100B CAT IV designation) is not a barrier to considering whole-bank acquisitions, though no transactions are currently planned. Board and executive team affirmed commitment to shareholder returns and are closely monitoring performance benchmarks and evolving market dynamics. XXX engagements  **Related Topics** [tax bracket](/topic/tax-bracket) [sales and](/topic/sales-and) [quarterly earnings](/topic/quarterly-earnings) [$cma](/topic/$cma) [comerica inc](/topic/comerica-inc) [stocks financial services](/topic/stocks-financial-services) [stocks banks](/topic/stocks-banks) [Post Link](https://x.com/LongYield/status/1946973506375426220)
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LongYield @LongYield on x 4484 followers
Created: 2025-07-20 16:40:31 UTC
$CMA Comerica Incorporated Earnings Call Key Highlights: (2/2)
📉 Expense Discipline and Revised Guidance
Noninterest expenses fell $XX million quarter-over-quarter due to lower litigation costs and seasonal declines in compensation.
Expense tailwinds included one-time benefits such as litigation recoveries, asset sales, and state tax recoveries; partially offset by modest increases in processing and advertising.
FY2025 noninterest expense growth guidance was revised downward to X% from prior estimates, reflecting strong YTD performance and tighter cost controls.
Third quarter expenses expected to rise sequentially due to the absence of one-time Q2 benefits, seasonal trends, and reinvestment in strategic growth initiatives.
🔐 Credit Quality and Reserve Management
Credit quality remained resilient, with net charge-offs flat at XX basis points, at the low end of Comerica’s historical range.
Nonperforming loans declined to the lowest level in four quarters and remained well below long-term averages, demonstrating ongoing credit discipline.
Criticized loans increased moderately, concentrated in three middle-market credits tied to consumer-facing segments such as luxury goods, liquor, and freight.
Provisioning remained conservative with the allowance coverage ratio unchanged at 1.44%, as macroeconomic risks were already reflected in prior qualitative adjustments.
📈 Capital Positioning and Repurchases
CET1 capital ratio stood at 11.94%, enabling a $XXX million common stock repurchase in Q2 and another $XXX million targeted for Q3 2025.
Redeemed preferred stock during the quarter to avoid reset to a higher coupon rate; while slightly dilutive to net interest income, this move is expected to be EPS accretive.
Tangible common equity ratio improved by XX basis points due to reduced AOCI losses and favorable market rate movement.
Continued strong capital flexibility allows for both shareholder returns and organic growth investments without compromising regulatory thresholds.
🔮 Revised Outlook for 2025
Full-year average loan growth guidance improved to flat to down 1%, reflecting stronger-than-expected Q2 trends and continued pipeline strength across most business lines.
FY2025 average deposits still expected to decline 2%–3%, driven by planned runoff in brokered CDs, though core deposit growth is expected to strengthen in Q4.
FY2025 net interest income growth forecast of 5%–7% maintained, though Q3 guidance points to a slight dip due to one-time factors; full-year NII now likely to be near the low end of range.
Full-year charge-offs expected at the lower end of Comerica’s 20–40 basis point range; tax rate lowered to approximately XX% for the year, excluding discrete items.
🌍 Strategic Positioning and M&A Considerations
Management reiterated a focus on long-term strategic growth through organic expansion, notably in payments, middle-market banking, and geographic diversification.
Acknowledged broader industry interest in M&A activity, especially in Texas, but emphasized that Comerica’s focus remains on shareholder value and strategic alignment.
Stressed that CET1 threshold (e.g., $100B CAT IV designation) is not a barrier to considering whole-bank acquisitions, though no transactions are currently planned.
Board and executive team affirmed commitment to shareholder returns and are closely monitoring performance benchmarks and evolving market dynamics.
XXX engagements
Related Topics tax bracket sales and quarterly earnings $cma comerica inc stocks financial services stocks banks