It is that time of the year again when Comerica Inc. (NYSE:CMA) stock holders are waiting to see how did their favorite Texas financial company perform in the 3 months behind us.
And everything seems to be getting back on the track, at least in my eyes. Net Income in Q2 2020 is $113 million, while CMA experienced loss of $60M in Q1.
“The highlight of the quarter was significant loan and deposit growth, which drove average balances to record highs and partly offset the impact of lower interest rates on net interest income. Overall, credit quality remained solid; however, with the unprecedented, rapid decline in the economy and high level of uncertainty, we prudently increased our credit reserves. Capital levels continued to be strong and we remain focused on maintaining an attractive dividend yield for our shareholders, as our book value per share grew to $53.28.”- noted Curt C. Farmer, Comerica Chairman, President and CEO.
He also added that the Company will pay 80 cents per share.
When it comes to loans they are up in Q2 compared to Q1. Loans increased $3.9 billion, or 8 percent, to $53.5 billion. Deposits increased $7.5 billion, or 13 percent, to $64.3 billion. Noninterest income increased $10 million to $247 million.
“Overall, our portfolio performed well in the second quarter, with net charge-offs of 37 basis points and only 4 basis points excluding Energy loans,” said Farmer. “Nonperforming assets remained low at 53 basis points, a modest increase over the first quarter. The economy improved through the quarter, including a rise in employment, higher energy prices, and consumer spending has started to come back. However, the economic outlook continues to be uncertain with the unprecedented impacts of the COVID-19 pandemic. Therefore, we prudently increased our credit reserves to 2.15 percent of average loans, excluding PPP loans, and our reserve to nonperforming loans is strong at 3.9 times. The allocation of reserves to Energy loans remains above 10 percent. We continue to work closely with our customers, carefully reviewing current and projected financial performance, providing assistance as warranted, and adjusting risk ratings as appropriate, which is reflected in the increase in criticized loans.”
Comerica will host a conference call to review second quarter 2020 financial results at 7 a.m. CT Tuesday, July 21, 2020. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (Event ID No. 3854013). The call and supplemental financial information can also be accessed via Comerica’s “Investor Relations” page at www.comerica.com. A replay of the Webcast can be accessed via Comerica’s “Investor Relations” page at www.comerica.com.