- change ups
Comerica reports net income
Comerica Inc. (NYSE: CMA) reported second quarter 2010 net income from continuing operations of $70 million, compared to $35 million for the first quarter 2010. Second quarter net income attributable to common shares of $69 million, compared to a net loss attributable to common shares of $71 million for the first quarter 2010, reflected a lower provision for loan losses resulting from continued improvement in credit quality and the benefit of the first quarter 2010 full redemption of $2.25 billion of preferred stock issued to the U.S. Treasury. Second quarter 2010 included a $126 million provision for loan losses, compared to $175 million for the first quarter 2010.
"Our financial results reflect the many positive trends we have seen over several quarters," said Ralph W. Babb Jr., chairman and chief executive officer. "This includes three consecutive quarters of improvement in credit quality, with leading indicators of future credit quality also pointing positive. Our net interest margin continued to expand, and our expenses remained well controlled. We have strong capital and liquidity to support future growth, with the flexibility to grow organically as well as by acquisition.
"We continue to reach out to our customers, taking their pulse on the economy, their current financial needs and future plans. As a relationship-focused 'Main Street' bank, this type of proactive outreach is how we differentiate ourselves. Since the onset of the economic downturn, we stepped-up our calling efforts to be sure we were ideally positioned to assist customers in navigating the economic environment and to meet their needs as the economy improves. This is reflected in our loan pipeline, which is now at its highest level in more than two years.
"While the pace of the economic recovery remains uncertain, we continue to focus on growing new relationships and expanding existing ones, with confidence we are in the right markets with the right people and a full array of products and services to make a positive difference for our customers, shareholders and the communities we serve."
Net interest income increased $7 million to $422 million for the second quarter 2010, compared to $415 million for the first quarter 2010. The net interest margin of 3.28 percent increased 10 basis points, from 3.18 percent in the first quarter 2010, with little change from the impact of excess liquidity, represented by average balances deposited with the Federal Reserve Bank.
Net credit-related charge-offs decreased $27 million to $146 million, or 1.44 percent of average total loans, for the second quarter 2010, compared to $173 million, or 1.68 percent of average total loans, for the first quarter 2010.
There were no preferred stock dividends in second quarter 2010, compared to $123 million in the first quarter 2010. Comerica fully redeemed the $2.25 billion of preferred stock issued to the U.S. Treasury under the Capital Purchase Program in March 2010.