Comerica Incorporated : Q4 2019 News Release

Dallas, TX/January 21, 2020

FULL-YEAR 2019 NET INCOME OF $1.2 BILLION, $7.87 PER SHARE

Earnings per Share Increased 9 Percent Compared to 2018

Reflected Strong Loan Growth, Capital Management, Record Revenue and Expense Control

FOURTH QUARTER 2019 NET INCOME OF $269 MILLION, $1.85 PER SHARE

Return on Equity of 15 Percent and Return on Assets of 1.5 Percent

Reflected Robust Deposit Growth, Capital Management and Strong Credit Quality

"In 2019, we realized strong loan growth, which pushed total assets to a record level while continuing to serve our relationship-oriented deposit base," said Curt C. Farmer, chairman and chief executive officer. "With the benefit of fee income growth, revenue reached an all-time high. This growth, along with careful cost control, resulted in an efficiency ratio of under 52 percent. In addition, credit quality remained solid and we meaningfully reduced excess capital. Altogether, this produced earnings per share of $7.87, a 9 percent increase over 2018, as well as a 10 percent increase in our book value, and our return on equity increased to above 16 percent.

"With respect to the fourth quarter, our results demonstrate our ability to drive solid returns with a return on equity of nearly 15 percent and a return on assets of 1.5 percent, despite declines in interest rates. While loans were relatively stable, deposit growth was robust, increasing $1.5 billion relative to the third quarter, with over 40 percent from noninterest-bearing deposits. Noninterest income growth, strong credit quality and continued active capital management were also positive contributors to our performance.

"As we look forward to the year ahead, we remain keenly focused on growing loans and deposits along with maintaining our proven expense discipline as we invest for the future. Our key strengths, including our diverse, geographic footprint, combined with our relationship banking strategy, provide the foundation to continue to enhance shareholder value."

(dollar amounts in millions, except per share data)		4th Qtr '19		3rd Qtr '19		2019		2018
FINANCIAL RESULTS
Net interest income	$	544	$	586	$	2,339	$	2,352
Provision for credit losses		8		35		74		(1)
Noninterest income		266		256		1,010		976
Noninterest expenses		451		435		1,743		1,794
Pre-tax income		351		372		1,532		1,535
Provision for income taxes		82		80		334		300
Net income	$	269	$	292	$	1,198	$	1,235
Diluted earnings per share	$	1.85	$	1.96	$	7.87	$	7.20
Average loans		50,505		50,887		50,511		48,766
Average deposits		57,178		55,716		55,481		55,935
Return on average assets		1.46%		1.61%		1.68%		1.75%
Return on shareholders' equity		14.74		15.97		16.39		15.82
Efficiency ratio (a)		55.46		51.54		51.82		53.56
Net interest margin		3.20		3.52		3.54		3.58
Common equity Tier 1 capital ratio (b)		10.14		9.96		10.14		11.14
Common equity ratio		9.98		9.88		9.98		10.60
Shareholders' equity per share		51.57		49.96		51.57		46.89
Tangible equity per share (c)		47.07		45.52		47.07		42.89

1. Noninterest expenses as a percentage of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
2. December 31, 2019 ratio is estimated.
3. See Reconciliation of Non-GAAP Financial Measures.

Full-Year 2019 Compared to Full-Year 2018 Overview

Balance sheet items discussed in terms of average balances.

Loans increased $1.7 billion, or 4 percent, to $50.5 billion.

• Reflected increases in Energy, Mortgage Banker Finance, National Dealer Services, general Middle Market and Commercial Real Estate.

Deposits were relatively stable at $55.5 billion.

• Interest-bearingdeposits increased $2.1 billion, reflecting increases of $1.3 billion in relationship-based deposits and $703 million in other time deposits.
• Noninterest-bearingdeposits decreased $2.6 billion. The decline was primarily the result of customers shifting balances to interest-bearing deposits and utilizing their deposits to fund growth, acquisitions and capital expenditures as well as choosing other investment options.

Net interest income decreased $13 million to $2.3 billion.

• Increases due to higher loan balances and the net impact of higher short-term rates were more than offset by higher interest-bearing deposit and debt balances.

Provision for credit losses was $74 million.

• Provision increased $75 million primarily due to a decline in valuations of select liquidating Energy credits.
• Net credit-relatedcharge-offs were $107 million, or 0.21 percent of average loans, including Energy net charge- offs of $86 million.

Excluding losses of $8 million in 2019 and $20 million in 2018 related to securities repositioning, noninterest income increased $22 million.

• Increases of $13 million in card fees and $6 million each in commercial lending fees and customer derivative income were partially offset by an $8 million decrease in service charges on deposit accounts.
• Also included an $11 million increase in deferred compensation asset returns (offset in noninterest expense) and a $6 million gain on the sale of Comerica's Health Savings Account (HSA) business, partially offset by decreases of $5 million due to the wind-down of a retirement savings program in 2018 and $4 million in income from tax- credit investments.

Excluding 2018 restructuring charges of $53 million, noninterest expenses were stable.

• Decreases of $19 million in FDIC insurance expense and $8 million in software expense were offset by increases of $11 million in salaries and benefits expense, $9 million in outside processing fee expense, $4 million in advertising expense and smaller increases in other categories.
• Excluding $11 million increase in deferred compensation expense (offset in noninterest income), salaries and benefits expense was stable as merit increases and higher technology-related contingent labor costs were offset by lower incentive compensation.

Provision for income taxes increased $34 million to $334 million.

• Reflected a $31 million decrease in discrete tax benefits from $48 million in 2018 to $17 million in 2019. Discrete tax benefits included adjustments of $5 million related to annual state tax filings in 2019 and $23 million from a review of certain tax capitalization and recovery positions in 2018. The remaining difference primarily related to a $10 million decrease in discrete tax benefits from employee stock transactions.

Returned a total of $1.8 billion to shareholders, an increase of $141 million compared to 2018.

• Repurchased $1.4 billion, or approximately 18.6 million shares, of common stock during 2019 under the share repurchase program.
• Increased the dividend 46 percent to $2.68 per share

Fourth Quarter 2019 Compared to Third Quarter 2019 Overview

Balance sheet items discussed in terms of average balances unless otherwise indicated.

Loans were relatively stable at $50.5 billion.

• Increases in Commercial Real Estate, Mortgage Banker Finance and Environmental Services were offset by decreases in general Middle Market, National Dealer Services and smaller changes in other lines of business.
• Loan yields of 4.43 percent decreased 40 basis points mostly due to lower short-term interest rates.

Deposits increased $1.5 billion, or 3 percent, to $57.2 billion.

• Noninterest-bearingdeposits increased $615 million to $27.0 billion.

2

• Interest-bearingdeposits increased $847 million to $30.2 billion. The increase was driven by continued growth in relationship-based deposits, partially offset by a $675 million decrease in other time deposits.
• Interest-bearingdeposit costs of 92 basis points decreased 7 basis points, reflecting actions taken in conjunction with the decline in short-term interest rates.

Net interest income decreased $42 million to $544 million.

• The decrease primarily reflected the net impact of lower interest rates. Provision for credit losses decreased $27 million to $8 million.
• Net credit-relatedcharge-offs decreased to $21 million, or 0.16 percent of average loans, from $42 million.
• The period end allowance for loan losses decreased $15 million to $637 million, or 1.27 percent of total loans. Noninterest income increased $10 million to $266 million.
• Reflected a $7 million increase in customer derivative income, a $6 million gain on the sale of the HSA business and $2 million increase in commercial lending fees, partially offset by a $5 million decrease in card fees.

Noninterest expenses increased $16 million to $451 million.

• Driven by a $4 million increase in salaries and benefits expense, a $4 million vendor transition fee (outside processing fee expense), a $2 million increase in occupancy expense and smaller increases in other categories.
• Salaries and benefits expense reflected higher incentive compensation and commissions tied to performance as well as a seasonal increase in staff insurance expense, partly offset by a decrease in technology-related contingent labor costs.

Capital position remained solid with a common equity Tier 1 capital ratio of 10.14 percent.

• Returned a total of $246 million to shareholders, including dividends and the repurchase of $150 million of common stock (2.1 million shares) under the share repurchase program.

Net Interest Income

Balance sheet items discussed in terms of average balances.

(dollar amounts in millions)		4th Qtr '19		3rd Qtr '19		2019		2018
Net interest income	$	544	$	586	$	2,339	$	2,352
Net interest margin		3.20%		3.52%		3.54%		3.58%
Selected average balances:
Total earning assets	$	67,710	$	66,285	$	66,134	$	65,410
Total loans		50,505		50,887		50,511		48,766
Total investment securities		12,225		12,203		12,120		11,810
Federal Reserve Bank deposits		4,597		2,834		3,143		4,495
Total deposits		57,178		55,716		55,481		55,935
Total noninterest-bearing deposits		26,966		26,351		26,644		29,241
Short-term borrowings		60		268		369		62
Medium- and long-term debt		7,305		7,100		6,955		5,842

Net interest income decreased $42 million, and net interest margin decreased 32 basis points, compared to third quarter 2019.

• Interest on loans decreased $55 million and reduced net interest margin by 31 basis points, primarily reflecting the impact of lower short-term rates ($46 million, 28 basis points), lower loan balances ($4 million, 1 basis point), lower nonaccrual interest ($3 million, 1 basis point) and other loan dynamics ($2 million, 1 basis point).
• Interest on short-term investments increased $3 million and reduced net interest margin by 7 basis points, primarily reflecting an increase in lower-yielding deposits with the Federal Reserve Bank (+$7 million, -5 basis points), partially offset by lower rates (-$4 million, -2 basis points).
• Interest expense on deposits decreased $3 million and increased net interest margin by 2 basis points, due to lower deposit pay rates.
• Interest expense on debt decreased $7 million and increased net interest margin by 4 basis points, primarily due to lower rates.

3

Credit Quality

"Credit quality in 2019 continued to be strong with 21 basis points of net charge-offs and only 4 basis points excluding Energy. Fourth quarter net charge-offs were also low at 16 basis points and 1 basis point excluding Energy. Charge- offs continued to primarily consist of valuation impairments on select Energy credits as capital markets for this sector remain soft. Total nonperforming assets declined to one of the lowest levels since 2006 and represented 43 basis points of our total loans. Our allowance remains very healthy at a reserve ratio of 1.27 percent. We expect our portfolio to continue to perform well, yet could begin to migrate from these strong credit metrics towards our historical norm."

(dollar amounts in millions)	4th Qtr '19	3rd Qtr '19	4th Qtr '18
Credit-relatedcharge-offs	$	27	$	61	$	21
Recoveries		6		19		10
Net credit-relatedcharge-offs		21		42		11
Net credit-relatedcharge-offs/Average total loans		0.16%		0.33%		0.09%
Provision for credit losses	$	8	$	35	$	16
Nonperforming loans		204		226		229
Nonperforming assets (NPAs)		215		229		230
NPAs/Total loans and foreclosed property		0.43%		0.44%		0.46%
Loans past due 90 days or more and still accruing	$	26	$	31	$	16
Allowance for loan losses		637		652		671
Allowance for credit losses on lending-related commitments (a)		31		29		30
Total allowance for credit losses		668		681		701
Allowance for loan losses/Period-end total loans		1.27%		1.27%		1.34%
Allowance for loan losses/Nonperforming loans		3.1x		2.9x		2.9x

1. Included in accrued expenses and other liabilities on the Consolidated Balance Sheets.

• The allowance for loan losses decreased $15 million to $637 million at December 31, 2019, or 1.27 percent of total loans, reflecting strong credit quality and a decrease in net credit-relatedcharge-offs.
• Criticized loans were $2.1 billion, or 4.2 percent of total loans, at December 31, 2019. Criticized loans are generally consistent with the Special Mention, Substandard and Doubtful categories defined by regulatory authorities.
• Net charge-offs of $21 million or 16 basis points of average loans.

Energy net charge-offs were $19 million, compared to $34 million in third quarter.

• Nonperforming assets decreased $14 million to $215 million at December 31, 2019, compared to $229 million at September 30, 2019. Nonperforming assets as a percentage of total loans and foreclosed property decreased to 0.43 percent at December 31, 2019, compared to 0.44 percent at September 30, 2019.
• Energy loans were $2.2 billion, or 4.4 percent of total loans, at December 31, 2019.
• Effective January 1, 2020, Comerica will adopt a new accounting standard for measuring credit losses. As a result, the allowance for credit losses is expected to decrease by 5 percent or less from current levels as of the adoption date.

4

Full-Year 2020 Outlook

For full-year 2020 compared to full-year 2019 reported results, management expects the following, assuming a continuation of the current economic and rate environment:

• 2 percent to 3 percent growth in average loans, reflecting increases in most lines of business, partly offset by declines in Mortgage Banker Finance and National Dealer Services.
• 1 percent to 2 percent increase in average deposits, with a continued focus on attracting and retaining relationship- based deposits.
• Decrease in net interest income due to the net impact of lower interest rates, 2019 funding actions and lower nonaccrual interest recoveries, partially offset by loan growth.

$10 million to $15 million net reduction from interest rates in first quarter 2020 compared to fourth quarter 2019, with a modest decrease for the remainder of the year.

• Continued strong credit quality, with net credit-relatedcharge-offs similar to 2019 levels (15 basis points to 25 basis points).
• 1 percent growth in noninterest income, reflecting growth in card fees and fiduciary income, partially offset by lower derivative and warrant income, and assuming no returns on deferred compensation assets.
• 3 percent increase in noninterest expenses, reflecting higher outside processing expenses in line with growing revenue, technology expenditures, typical inflationary pressures and higher pension expense.
• Income tax expense to be approximately 23 percent of pre-tax income.
• Common equity Tier 1 capital ratio target of approximately 10 percent.

5

Business Segments

Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. For a summary of business segment and geographic market quarterly results, see the Business Segment Financial Results and Market Segment Financial Results tables included later in this report. From time to time, the Comerica may make reclassifications among the segments to reflect management's current view of the segments, and methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines. The financial results provided are based on the internal business unit and geographic market structures of Comerica and methodologies in effect at December 31, 2019. A discussion of business segment and geographic market year-to-date results will be included in Comerica's 2019 Form 10-K.

Conference Call and Webcast

Comerica will host a conference call to review fourth quarter 2019 financial results at 7 a.m. CT Tuesday, January 21, 2020. Interested parties may access the conference call by calling [phone] or [phone] (Event ID No. 7291336). 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.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

6

Forward-looking Statements

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "contemplates," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "on track," "trend," "objective," "looks forward," "projects," "models" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies; operational, systems or infrastructure failures; reliance on other companies to provide certain key components of business infrastructure; cybersecurity risks; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital requirements; declines or other changes in the businesses or industries of Comerica's customers; unfavorable developments concerning credit quality; changes in regulation or oversight; heightened legislative and regulatory focus on cybersecurity and data privacy; fluctuations in interest rates and their impact on deposit pricing; transitions away from LIBOR towards new interest rate benchmarks; reductions in Comerica's credit rating; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; changes in customer behavior; management's ability to maintain and expand customer relationships; the effectiveness of methods of reducing risk exposures; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; the impacts of future legislative, administrative or judicial changes to tax regulations; any future strategic acquisitions or divestitures; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; losses due to fraud; the effects of terrorist activities and other hostilities; changes in accounting standards; the critical nature of Comerica's accounting policies; controls and procedures failures; and the volatility of Comerica's stock price. Comerica cautions that the foregoing list of factors is not all-inclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2018. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Media Contact:	Investor Contacts:
Wendy Bridges	Darlene P. Persons
[phone]	[phone]
Louis H. Mora	Amanda Perkins
[phone]	[phone]

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

Comerica Incorporated and Subsidiaries

		Three Months Ended				Years Ended
	December 31,	September 30,	December 31,			December 31,
(in millions, except per share data)		2019		2019		2018			2019		2018
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income	$	1.85	$	1.96	$	1.88	$	7.87	$	7.20
Cash dividends declared		0.67		0.67		0.60			2.68		1.84
Average diluted shares (in thousands)		144,566		148,079		163,501			151,293		170,500
PERFORMANCE RATIOS
Return on average common shareholders' equity		14.74%		15.97%		16.36%			16.39%		15.82%
Return on average assets		1.46		1.61		1.74			1.68		1.75
Efficiency ratio (a)		55.46		51.54		51.93			51.82		53.56
CAPITAL
Common equity tier 1 capital (b)	$	6,919	$	6,892	$	7,470
Risk-weighted assets (b)		68,268		69,223		67,047
Common equity tier 1 and tier 1 risk-based capital ratio (b)		10.14%		9.96%		11.14%
Total risk-based capital ratio (b)		12.13		11.95		13.21
Leverage ratio (b)		9.46		9.63		10.51
Common shareholders' equity per share of common stock		51.57		49.96		46.89
Tangible common equity per share of common stock		47.07		45.52		42.89
Common equity ratio		9.98		9.88		10.60
Tangible common equity ratio (c)		9.19		9.09		9.78
AVERAGE BALANCES
Commercial loans	$	31,808	$	32,329	$	30,651	$	32,053	$	30,534
Real estate construction loans		3,398		3,344		3,164			3,325		3,155
Commercial mortgage loans		9,356		9,264		9,051			9,170		9,131
Lease financing		586		578		495			557		470
International loans		1,030		1,007		1,035			1,019		1,021
Residential mortgage loans		1,887		1,920		1,968			1,929		1,983
Consumer loans		2,440		2,445		2,468			2,458		2,472
Total loans		50,505		50,887		48,832			50,511		48,766
Earning assets		67,710		66,285		65,661			66,134		65,410
Total assets		73,151		71,736		70,830			71,488		70,724
Noninterest-bearing deposits		26,966		26,351		28,600			26,644		29,241
Interest-bearing deposits		30,212		29,365		27,129			28,837		26,694
Total deposits		57,178		55,716		55,729			55,481		55,935
Common shareholders' equity		7,237		7,254		7,519			7,308		7,809
NET INTEREST INCOME
Net interest income	$	544	$	586	$	614	$	2,339	$	2,352
Net interest margin		3.20%		3.52%		3.69%			3.54%		3.58%
CREDIT QUALITY
Total nonperforming assets	$	215	$	229	$	230
Loans past due 90 days or more and still accruing		26		31		16
Net credit-relatedcharge-offs		21		42		11	$	107	$	51
Allowance for loan losses		637		652		671
Allowance for credit losses on lending-related commitments		31		29		30
Total allowance for credit losses		668		681		701
Allowance for loan losses as a percentage of total loans		1.27%		1.27%		1.34%
Net credit-relatedcharge-offs as a percentage of average total loans		0.16		0.33		0.09			0.21%		0.11%
Nonperforming assets as a percentage of total loans and foreclosed		0.43		0.44		0.46
property
Allowance for loan losses as a multiple of total nonperforming loans		3.1x		2.9x		2.9x
OTHER KEY INFORMATION
Number of banking centers		436		436		436
Number of employees - full time equivalent		7,747		7,725		7,865

1. Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.
2. December 31, 2019 ratios are estimated.
3. See Reconciliation of Non-GAAP Financial Measures.

8

CONSOLIDATED BALANCE SHEETS

Comerica Incorporated and Subsidiaries

	December 31,	September 30,	December 31,
(in millions, except share data)		2019		2019		2018
		(unaudited)		(unaudited)
ASSETS
Cash and due from banks	$	973	$	1,229	$	1,390
Interest-bearing deposits with banks		4,845		2,888		3,171
Other short-term investments		155		146		134
Investment securities available-for-sale		12,398		12,429		12,045
Commercial loans		31,473		32,890		31,976
Real estate construction loans		3,455		3,377		3,077
Commercial mortgage loans		9,559		9,234		9,106
Lease financing		588		578		507
International loans		1,009		1,055		1,013
Residential mortgage loans		1,845		1,906		1,970
Consumer loans		2,440		2,451		2,514
Total loans		50,369		51,491		50,163
Less allowance for loan losses		(637)		(652)		(671)
Net loans		49,732		50,839		49,492
Premises and equipment		457		467		475
Accrued income and other assets		4,842		4,850		4,111
Total assets	$	73,402	$	72,848	$	70,818
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	27,382	$	27,134	$	28,690
Money market and interest-bearing checking deposits		24,527		23,992		22,560
Savings deposits		2,184		2,156		2,172
Customer certificates of deposit		2,978		2,853		2,131
Other time deposits		133		647		-
Foreign office time deposits		91		27		8
Total interest-bearing deposits		29,913		29,675		26,871
Total deposits		57,295		56,809		55,561
Short-term borrowings		71		51		44
Accrued expenses and other liabilities		1,440		1,477		1,243
Medium- and long-term debt		7,269		7,311		6,463
Total liabilities		66,075		65,648		63,311
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares		1,141		1,141		1,141
Capital surplus		2,174		2,172		2,148
Accumulated other comprehensive loss		(235)		(336)		(609)
Retained earnings		9,538		9,369		8,781
Less cost of common stock in treasury - 86,069,234 shares at 12/31/19; 84,028,400 shares at 9/30/19 and		(5,291)		(5,146)		(3,954)
68,081,176 shares at 12/31/18
Total shareholders' equity		7,327		7,200		7,507
Total liabilities and shareholders' equity	$	73,402	$	72,848	$	70,818

9

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

Comerica Incorporated and Subsidiaries

		Three Months Ended			Years Ended
(in millions, except per share data)		December 31,			December 31,
	2019		2018			2019		2018
INTEREST INCOME
Interest and fees on loans	$	564	$	604	$	2,439	$	2,262
Interest on investment securities		75		71			297		265
Interest on short-term investments		20		29			71		92
Total interest income		659		704			2,807		2,619
INTEREST EXPENSE
Interest on deposits		70		43			262		122
Interest on short-term borrowings		-		-			9		1
Interest on medium- and long-term debt		45		47			197		144
Total interest expense		115		90			468		267
Net interest income		544		614			2,339		2,352
Provision for credit losses		8		16			74		(1)
Net interest income after provision for credit losses		536		598			2,265		2,353
NONINTEREST INCOME
Card fees		62		64			257		244
Fiduciary income		52		51			206		206
Service charges on deposit accounts		50		51			203		211
Commercial lending fees		25		23			91		85
Foreign exchange income		11		11			44		47
Bank-owned life insurance		10		10			41		39
Letter of credit fees		9		10			38		40
Brokerage fees		7		7			28		27
Net securities gains (losses)		1		-			(7)		(19)
Other noninterest income		39		23			109		96
Total noninterest income		266		250			1,010		976
NONINTEREST EXPENSES
Salaries and benefits expense		257		250			1,020		1,009
Outside processing fee expense		70		65			264		255
Occupancy expense		41		39			154		152
Software expense		30		30			117		125
Equipment expense		13		14			50		48
Advertising expense		10		8			34		30
FDIC insurance expense		6		6			23		42
Restructuring charges		-		14			-		53
Other noninterest expenses		24		22			81		80
Total noninterest expenses		451		448			1,743		1,794
Income before income taxes		351		400			1,532		1,535
Provision for income taxes		82		90			334		300
NET INCOME		269		310			1,198		1,235
Less income allocated to participating securities		2		2			7		8
Net income attributable to shares	$	267	$	308	$	1,191	$	1,227
Earnings per share:
Basic	$	1.87	$	1.91	$	7.95	$	7.31
Diluted		1.85		1.88			7.87		7.20
Comprehensive income		370		312			1,572		1,076
Cash dividends declared on stock		96		99			398		309
Cash dividends declared per share		0.67		0.60			2.68		1.84

10

CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

Comerica Incorporated and Subsidiaries

	Fourth		Third	Second		First	Fourth		Fourth Quarter 2019 Compared To:
	Quarter Quarter Quarter Quarter Quarter	Third Quarter 2019	Fourth Quarter 2018
(in millions, except per share data)		2019		2019		2019		2019		2018		Amount	Percent	Amount	Percent
INTEREST INCOME
Interest and fees on loans	$	564	$	619	$	635	$	621	$	604	$	(55)	(9)%	$	(40)	(7)%
Interest on investment securities		75		75		75		72		71		-	-		4	5
Interest on short-term investments		20		17		17		17		29		3	21		(9)	(29)
Total interest income		659		711		727		710		704		(52)	(7)		(45)	(6)
INTEREST EXPENSE
Interest on deposits		70		73		67		52		43		(3)	(4)		27	65
Interest on short-term borrowings		-		2		6		1		-		(2)	n/m		-	-
Interest on medium- and long-term debt		45		50		51		51		47		(5)	(11)		(2)	(4)
Total interest expense		115		125		124		104		90		(10)	(8)		25	29
Net interest income		544		586		603		606		614		(42)	(7)		(70)	(11)
Provision for credit losses		8		35		44		(13)		16		(27)	(77)		(8)	(48)
Net interest income after provision		536		551		559		619		598		(15)	(3)		(62)	(10)
for credit losses
NONINTEREST INCOME
Card fees		62		67		65		63		64		(5)	(6)		(2)	(2)
Fiduciary income		52		53		52		49		51		(1)	(2)		1	2
Service charges on deposit accounts		50		51		51		51		51		(1)	(1)		(1)	(1)
Commercial lending fees		25		23		21		22		23		2	4		2	9
Foreign exchange income		11		11		11		11		11		-	-		-	-
Bank-owned life insurance		10		11		11		9		10		(1)	(7)		-	-
Letter of credit fees		9		10		10		9		10		(1)	(1)		(1)	(4)
Brokerage fees		7		7		7		7		7		-	-		-	-
Net securities gains (losses)		1		-		-		(8)		-		1	n/m		1	n/m
Other noninterest income		39		23		22		25		23		16	59		16	63
Total noninterest income		266		256		250		238		250		10	3		16	6
NONINTEREST EXPENSES
Salaries and benefits expense		257		253		245		265		250		4	1		7	3
Outside processing fee expense		70		66		65		63		65		4	7		5	8
Occupancy expense		41		39		37		37		39		2	4		2	6
Software expense		30		30		28		29		30		-	-		-	-
Equipment expense		13		13		12		12		14		-	-		(1)	(1)
Advertising expense		10		10		9		5		8		-	-		2	37
FDIC insurance expense		6		6		6		5		6		-	-		-	-
Restructuring charges		-		-		-		-		14		-	-		(14)	n/m
Other noninterest expenses		24		18		22		17		22		6	28		2	9
Total noninterest expenses		451		435		424		433		448		16	4		3	1
Income before income taxes		351		372		385		424		400		(21)	(6)		(49)	(12)
Provision for income taxes		82		80		87		85		90		2	2		(8)	(9)
NET INCOME		269		292		298		339		310		(23)	(8)		(41)	(13)
Less income allocated to participating securities		2		2		1		2		2		-	-		-	-
Net income attributable to shares	$	267	$	290	$	297	$	337	$	308	$	(23)	(8)%	$	(41)	(13)%
Earnings per share:
Basic	$	1.87	$	1.98	$	1.95	$	2.14	$	1.91	$	(0.11)	(6)%	$	(0.04)	(2)%
Diluted		1.85		1.96		1.94		2.11		1.88		(0.11)	(6)		(0.03)	(2)
Comprehensive income		370		338		429		435		312		32	9		58	19
Cash dividends declared on stock		96		97		100		105		99		(1)	(1)		(3)	(1)
Cash dividends declared per share		0.67		0.67		0.67		0.67		0.60		-	-		0.07	12

n/m - not meaningful

11

ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)

Comerica Incorporated and Subsidiaries

				2019						2018
(in millions)	4th Qtr	3rd Qtr	2nd Qtr	1st Qtr		4th Qtr
Balance at beginning of period	$	652	$	657	$	647	$	671	$	664
Loan charge-offs:
Commercial		24		59		42		18			19
Commercial mortgage		2		-		-		1			2
International		-		-		1		-			-
Residential mortgage		-		1		-		-			-
Consumer		1		1		1		1			-
Total loan charge-offs		27		61		44		20			21
Recoveries on loans previously charged-off:
Commercial		3		17		7		8			8
Commercial mortgage		1		-		3		-			-
International		1		-		-		-			-
Residential mortgage		-		1		-		-			1
Consumer		1		1		1		1			1
Total recoveries		6		19		11		9			10
Net loan charge-offs		21		42		33		11			11
Provision for loan losses		6		37		43		(13)			19
Foreign currency translation adjustment		-		-		-		-			(1)
Balance at end of period	$	637	$	652	$	657	$	647	$	671
Allowance for loan losses as a percentage of total loans		1.27%		1.27%		1.27%		1.29%			1.34%
Net loan charge-offs as a percentage of average total loans		0.16		0.33		0.26		0.08			0.09

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)

Comerica Incorporated and Subsidiaries

				2019						2018
(in millions)	4th Qtr	3rd Qtr	2nd Qtr	1st Qtr		4th Qtr
Balance at beginning of period	$	29	$	31	$	30	$	30	$	33
Add: Provision for credit losses on lending-related commitments		2		(2)		1		-			(3)
Balance at end of period	$	31	$	29	$	31	$	30	$	30

12

NONPERFORMING ASSETS (unaudited)

Comerica Incorporated and Subsidiaries

				2019						2018
(in millions)		4th Qtr	3rd Qtr	2nd Qtr		1st Qtr			4th Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial	$	148	$	152	$	155	$	114	$	141
Commercial mortgage		14		13		12		16			20
Lease financing		-		-		1		2			2
International		-		2		3		3			3
Total nonaccrual business loans		162		167		171		135			166
Retail loans:
Residential mortgage		20		36		35		37			36
Consumer:
Home equity		17		17		18		19			19
Total nonaccrual retail loans		37		53		53		56			55
Total nonaccrual loans		199		220		224		191			221
Reduced-rate loans		5		6		6		7			8
Total nonperforming loans		204		226		230		198			229
Foreclosed property		11		3		3		1			1
Total nonperforming assets	$	215	$	229	$	233	$	199	$	230
Nonperforming loans as a percentage of total loans		0.40%		0.44%		0.44%		0.39%			0.46%
Nonperforming assets as a percentage of total loans and foreclosed property		0.43		0.44		0.45		0.40			0.46
Allowance for loan losses as a multiple of total nonperforming loans		3.1x		2.9x		2.9x		3.3x			2.9x
Loans past due 90 days or more and still accruing	$	26	$	31	$	17	$	24	$	16
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period	$	220	$	224	$	191	$	221	$	230
Loans transferred to nonaccrual (a)		48		85		93		4			42
Nonaccrual loan gross charge-offs		(27)		(61)		(44)		(20)			(21)
Loans transferred to accrual status (a)		(7)		-		-		-			(3)
Nonaccrual loans sold		(10)		-		(5)		-			(5)
Payments/Other (b)		(25)		(28)		(11)		(14)			(22)
Nonaccrual loans at end of period	$	199	$	220	$	224	$	191	$	221

1. Based on an analysis of nonaccrual loans with book balances greater than $2 million.
2. Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property.

13

ANALYSIS OF NET INTEREST INCOME (unaudited)

Comerica Incorporated and Subsidiaries

					Years Ended
		December 31, 2019			December 31, 2018
(dollar amounts in millions)		Average		Interest	Average			Average		Interest	Average
	Balance		Rate			Balance		Rate
Commercial loans	$	32,053	$	1,544	4.82%	$	30,534	$	1,416	4.64%
Real estate construction loans		3,325		184	5.54			3,155		164	5.21
Commercial mortgage loans		9,170		447	4.88			9,131		429	4.69
Lease financing		557		19	3.44			470		18	3.82
International loans		1,019		52	5.13			1,021		51	4.97
Residential mortgage loans		1,929		74	3.85			1,983		75	3.77
Consumer loans		2,458		119	4.85			2,472		109	4.41
Total loans		50,511		2,439	4.83			48,766		2,262	4.64
Mortgage-backed securities		9,348		230	2.44			9,099		214	2.28
Other investment securities		2,772		67	2.43			2,711		51	1.86
Total investment securities		12,120		297	2.44			11,810		265	2.19
Interest-bearing deposits with banks		3,360		69	2.05			4,700		91	1.94
Other short-term investments		143		2	1.26			134		1	0.96
Total earning assets		66,134		2,807	4.24			65,410		2,619	3.99
Cash and due from banks		887						1,135
Allowance for loan losses		(667)						(695)
Accrued income and other assets		5,134						4,874
Total assets	$	71,488					$	70,724
Money market and interest-bearing checking deposits	$	23,417		214	0.91	$	22,378		111	0.50
Savings deposits		2,166		1	0.05			2,199		1	0.04
Customer certificates of deposit		2,522		30	1.18			2,090		10	0.46
Other time deposits		705		17	2.44			2		-	1.86
Foreign office time deposits		27		-	1.39			25		-	1.19
Total interest-bearing deposits		28,837		262	0.91			26,694		122	0.46
Short-term borrowings		369		9	2.39			62		1	1.93
Medium- and long-term debt		6,955		197	2.82			5,842		144	2.47
Total interest-bearing sources		36,161		468	1.29			32,598		267	0.82
Noninterest-bearing deposits		26,644						29,241
Accrued expenses and other liabilities		1,375						1,076
Total shareholders' equity		7,308						7,809
Total liabilities and shareholders' equity	$	71,488					$	70,724
Net interest income/rate spread			$	2,339	2.95				$	2,352	3.17
Impact of net noninterest-bearing sources of funds					0.59						0.41
Net interest margin (as a percentage of average earning assets)					3.54%						3.58%

14

ANALYSIS OF NET INTEREST INCOME (unaudited)

Comerica Incorporated and Subsidiaries

						Three Months Ended
	December 31, 2019		September 30, 2019		December 31, 2018
(dollar amounts in millions)	Average	Interest	Average		Average	Interest	Average		Average	Interest	Average
Balance	Rate		Balance	Rate		Balance	Rate
Commercial loans	$ 31,808	$	353	4.37%	$ 32,329	$	392	4.82%	$ 30,651	$	379	4.91%
Real estate construction loans	3,398		44	5.16	3,344		47	5.53	3,164		44	5.57
Commercial mortgage loans	9,356		105	4.45	9,264		112	4.82	9,051		114	4.96
Lease financing	586		5	3.72	578		6	3.83	495		5	3.74
International loans	1,030		12	4.73	1,007		13	5.12	1,035		14	5.25
Residential mortgage loans	1,887		18	3.79	1,920		18	3.84	1,968		19	3.81
Consumer loans	2,440		27	4.48	2,445		31	4.92	2,468		29	4.67
Total loans	50,505		564	4.43	50,887		619	4.83	48,832		604	4.90
Mortgage-backed securities	9,431		58	2.45	9,408		58	2.45	9,069		56	2.37
Other investment securities	2,794		17	2.46	2,795		17	2.45	2,704		15	2.30
Total investment securities	12,225		75	2.45	12,203		75	2.45	11,773		71	2.35
Interest-bearing deposits with banks	4,828		20	1.64	3,049		16	2.13	4,920		28	2.28
Other short-term investments	152		-	1.11	146		1	1.28	136		1	1.12
Total earning assets	67,710		659	3.87	66,285		711	4.26	65,661		704	4.23
Cash and due from banks	861				864				940
Allowance for loan losses	(663)				(673)				(673)
Accrued income and other assets	5,243				5,260				4,902
Total assets	$ 73,151					$ 71,736					$ 70,830
Money market and interest-bearing checking deposits	$ 24,629		57	0.91	$ 23,485		57	0.97	$ 22,849		39	0.67
Savings deposits	2,169		-	0.06	2,155		1	0.04	2,181		-	0.05
Customer certificates of deposit	2,935		11	1.42	2,627		8	1.30	2,090		4	0.62
Other time deposits	410		2	2.33	1,085		7	2.46		-		-	-
Foreign office time deposits	69		-	1.33	13		-	1.45	9		-	1.37
Total interest-bearing deposits	30,212		70	0.92	29,365		73	0.99	27,129		43	0.62
Short-term borrowings	60		-	1.60	268		2	2.33	72		-	2.21
Medium- and long-term debt	7,305		45	2.41	7,100		50	2.78	6,420		47	2.88
Total interest-bearing sources	37,577		115	1.21	36,733		125	1.34	33,621		90	1.05
Noninterest-bearing deposits	26,966				26,351				28,600
Accrued expenses and other liabilities	1,371				1,398				1,090
Total shareholders' equity	7,237				7,254				7,519
Total liabilities and shareholders' equity	$ 73,151					$ 71,736					$ 70,830
Net interest income/rate spread		$	544	2.66			$	586	2.92			$	614	3.18
Impact of net noninterest-bearing sources of funds				0.54					0.60					0.51
Net interest margin (as a percentage of average earning				3.20%					3.52%					3.69%
assets)

15

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

Comerica Incorporated and Subsidiaries

							Accumulated
	Common Stock				Other						Total
	Shares			Capital	Comprehensive		Retained		Treasury	Shareholders'
(in millions, except per share data)	Outstanding	Amount	Surplus		Loss		Earnings		Stock		Equity
BALANCE AT SEPTEMBER 30, 2018	165.9	$	1,141	$	2,144	$	(611)	$	8,587	$	(3,475)	$	7,786
Net income	-		-		-		-		310		-		310
Other comprehensive income, net of tax	-		-		-		2		-		-		2
Cash dividends declared on common stock ($0.60 per share)	-		-		-		-		(99)		-		(99)
Purchase of common stock	(6.2)		-		4		-		-		(505)		(501)
Net issuance of common stock under employee stock plans	-		-		-		-		1		1		2
Net issuance of common stock for warrants	0.4		-		(7)		-		(18)		25		-
Share-based compensation	-		-		7		-		-		-		7
BALANCE AT DECEMBER 31, 2018	160.1	$	1,141	$	2,148	$	(609)	$	8,781	$	(3,954)	$	7,507
BALANCE AT SEPTEMBER 30, 2019	144.1	$	1,141	$	2,172	$	(336)	$	9,369	$	(5,146)	$	7,200
Net income	-		-		-		-		269		-		269
Other comprehensive income, net of tax	-		-		-		101		-		-		101
Cash dividends declared on common stock ($0.67 per share)	-		-		-		-		(96)		-		(96)
Purchase of common stock	(2.1)		-		-		-		-		(151)		(151)
Net issuance of common stock under employee stock plans	0.1		-		-		-		(4)		6		2
Share-based compensation	-		-		2		-		-		-		2
BALANCE AT DECEMBER 31, 2019	142.1	$	1,141	$	2,174	$	(235)	$	9,538	$	(5,291)	$	7,327
BALANCE AT DECEMBER 31, 2017	172.9	$	1,141	$	2,122	$	(451)	$	7,887	$	(2,736)	$	7,963
Cumulative effect of change in accounting principles	-		-		-		1		14		-		15
Net income	-		-		-		-		1,235		-		1,235
Other comprehensive loss, net of tax	-		-		-		(159)		-		-		(159)
Cash dividends declared on common stock ($1.84 per share)	-		-		-		-		(309)		-		(309)
Purchase of common stock	(14.9)		-		(3)		-		-		(1,326)		(1,329)
Net issuance of common stock under employee stock plans	1.5		-		(9)		-		(23)		75		43
Net issuance of common stock for warrants	0.6		-		(10)		-		(23)		33		-
Share-based compensation	-		-		48		-		-		-		48
BALANCE AT DECEMBER 31, 2018	160.1		1,141		2,148		(609)		8,781		(3,954)		7,507
Cumulative effect of change in accounting principles	-		-		-		-		(14)		-		(14)
Net income	-		-		-		-		1,198		-		1,198
Other comprehensive income, net of tax	-		-		-		374		-		-		374
Cash dividends declared on common stock ($2.68 per share)	-		-		-		-		(398)		-		(398)
Purchase of common stock	(18.7)		-		-		-		-		(1,380)		(1,380)
Net issuance of common stock under employee stock plans	0.7		-		(13)		-		(29)		43		1
Share-based compensation	-		-		39		-		-		-		39
BALANCE AT DECEMBER 31, 2019	142.1	$	1,141	$	2,174	$	(235)	$	9,538	$	(5,291)	$	7,327

16

BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)

Comerica Incorporated and Subsidiaries

(dollar amounts in millions)		Business		Retail		Wealth
Three Months Ended December 31, 2019		Bank		Bank	Management		Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	403	$	134	$	43	$	(49)	$	13	$	544
Provision for credit losses		3		1		(1)		-		5		8
Noninterest income		143		37		69		13		4		266
Noninterest expenses		203		156		75		-		17		451
Provision (benefit) for income taxes		79		3		9		(10)		1	(a)	82
Net income (loss)	$	261	$	11	$	29	$	(26)	$	(6)	$	269
Net credit-relatedcharge-offs	$	21	$	-	$	-	$	-	$	-	$	21
Selected average balances:
Assets	$	45,075	$	2,883	$	5,057	$	14,389	$	5,747	$	73,151
Loans		43,521		2,090		4,894		-		-		50,505
Deposits		30,535		21,084		4,015		1,332		212		57,178
Statistical data:
Return on average assets (b)		2.31%		0.19%		2.26%		n/m		n/m		1.46%
Efficiency ratio (c)		37.03		89.99		66.71		n/m		n/m		55.46
		Business		Retail		Wealth
Three Months Ended September 30, 2019		Bank		Bank	Management		Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	420	$	142	$	47	$	(38)	$	15	$	586
Provision for credit losses		39		(2)		(3)		-		1		35
Noninterest income		140		31		69		12		4		256
Noninterest expenses		199		149		69		(1)		19		435
Provision (benefit) for income taxes		74		5		12		(8)		(3) (a)	80
Net income (loss)	$	248	$	21	$	38	$	(17)	$	2	$	292
Net credit-relatedcharge-offs (recoveries)	$	43	$	1	$	(2)	$	-	$	-	$	42
Selected average balances:
Assets	$	45,459	$	2,871	$	5,032	$	14,392	$	3,982	$	71,736
Loans		43,889		2,114		4,884		-		-		50,887
Deposits		28,917		20,761		3,775		2,049		214		55,716
Statistical data:
Return on average assets (b)		2.17%		0.39%		3.01%		n/m		n/m		1.61%
Efficiency ratio (c)		35.62		84.54		59.79		n/m		n/m		51.54
		Business		Retail		Wealth
Three Months Ended December 31, 2018		Bank		Bank	Management		Finance		Other		Total
Earnings summary:
Net interest income (expense)	$	413	$	146	$	48	$	(9)	$	16	$	614
Provision for credit losses		15		1		(1)		-		1		16
Noninterest income		144		36		65		11		(6)		250
Noninterest expenses		212		152		75		(1)		10		448
Provision (benefit) for income taxes		61		6		7		(1)		17		90
Net income (loss)	$	269	$	23	$	32	$	4	$	(18)	$	310
Net credit-relatedcharge-offs (recoveries)	$	12	$	-	$	(1)	$	-	$	-	$	11
Selected average balances:
Assets	$	43,211	$	2,647	$	5,156	$	13,613	$	6,203	$	70,830
Loans		41,731		2,080		5,021		-		-		48,832
Deposits		29,961		20,588		4,126		916		138		55,729
Statistical data:
Return on average assets (b)		2.47%		0.44%		2.49%		n/m		n/m		1.74%
Efficiency ratio (c)		38.14		83.60		65.85		n/m		n/m		51.93

1. Included discrete tax benefits of $1 million and $5 million for the three months ended December 31, 2019 and September 30, 2019, respectively.
2. Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
3. Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.

n/m - not meaningful

17

MARKET SEGMENT FINANCIAL RESULTS (unaudited)

Comerica Incorporated and Subsidiaries

(dollar amounts in millions)								Other		Finance
Three Months Ended December 31, 2019		Michigan		California		Texas		Markets		& Other		Total
Earnings summary:
Net interest income (expense)	$	172	$	195	$	121	$	92	$	(36)	$	544
Provision for credit losses		(5)		(22)		31		(1)		5		8
Noninterest income		73		52		31		93		17		266
Noninterest expenses		142		105		90		96		18		451
Provision (benefit) for income taxes		25		42		8		17		(10) (a)		82
Net income (loss)	$	83	$	122	$	23	$	73	$	(32)	$	269
Net credit-relatedcharge-offs (recoveries)	$	1	$	(1)	$	20	$	1	$	-	$	21
Selected average balances:
Assets	$	13,098	$	18,430	$	11,353	$	10,135	$	20,135	$	73,151
Loans		12,399		18,078		10,708		9,320		-		50,505
Deposits		20,443		18,115		9,045		8,031		1,544		57,178
Statistical data:
Return on average assets (b)		1.55%		2.51%		0.84%		2.86%		n/m		1.46%
Efficiency ratio (c)		57.22		42.37		59.43		52.10		n/m		55.46

								Other		Finance
Three Months Ended September 30, 2019		Michigan		California		Texas		Markets		& Other		Total
Earnings summary:
Net interest income (expense)	$	185	$	203	$	125	$	96	$	(23)	$	586
Provision for credit losses		(1)		(6)		50		(9)		1		35
Noninterest income		74		41		31		94		16		256
Noninterest expenses		139		102		86		90		18		435
Provision (benefit) for income taxes		27		37		5		22		(11) (a)		80
Net income (loss)	$	94	$	111	$	15	$	87	$	(15)	$	292
Net credit-relatedcharge-offs (recoveries)	$	6	$	5	$	34	$	(3)	$	-	$	42
Selected average balances:
Assets	$	13,213	$	18,726	$	11,462	$	9,961	$	18,374	$	71,736
Loans		12,554		18,393		10,805		9,135		-		50,887
Deposits		20,164		16,725		8,705		7,859		2,263		55,716
Statistical data:
Return on average assets (b)		1.78%		2.37%		0.48%		3.47%		n/m		1.61%
Efficiency ratio (c)		53.31		41.64		55.57		47.18		n/m		51.54

								Other		Finance
Three Months Ended December 31, 2018		Michigan		California		Texas		Markets		& Other		Total
Earnings summary:
Net interest income	$	187	$	206	$	121	$	93	$	7	$	614
Provision for credit losses		(8)		34		(16)		5		1		16
Noninterest income		74		40		36		95		5		250
Noninterest expenses		145		108		92		94		9		448
Provision for income taxes		23		22		16		13		16		90
Net income (loss)	$	101	$	82	$	65	$	76	$	(14)	$	310
Net credit-relatedcharge-offs	$	-	$	9	$	1	$	1	$	-	$	11
Selected average balances:
Assets	$	12,958	$	18,551	$	10,464	$	9,041	$	19,816	$	70,830
Loans		12,457		18,279		9,881		8,215		-		48,832
Deposits		20,243		17,230		8,917		8,285		1,054		55,729
Statistical data:
Return on average assets (b)		1.92%		1.75%		2.48%		3.33%		n/m		1.74%
Efficiency ratio (c)		55.35		44.06		58.53		50.24		n/m		51.93

1. Included discrete tax benefits of $1 million and $5 million for the three months ended December 31, 2019 and September 30, 2019, respectively.
2. Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
3. Noninterest expenses as a percentage of the sum of net interest income and noninterest income excluding net gains (losses) from securities and a derivative contract tied to the conversion rate of Visa Class B shares.

n/m - not meaningful

18

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)

Comerica Incorporated and Subsidiaries

Comerica believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of equity and performance trends. Comerica believes the adjusted financial results provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. Tangible equity is used by Comerica to measure the quality of capital and the return relative to balance sheet risk.

ADJUSTED FINANCIAL RESULTS		Three Months Ended			Years Ended
	December 31,	September 30,			December 31,
(dollar amounts in millions, except per share data)		2019		2019			2019		2018
Noninterest Income:
Noninterest income	$	266	$	256	$	1,010	$	976
Securities repositioning		-		-			8		20
Adjusted noninterest income	$	266	$	256	$	1,018	$	996
Noninterest Expenses:
Noninterest expenses	$	451	$	435	$	1,743	$	1,794
Restructuring charges		-		-			-		(53)
Adjusted noninterest expenses	$	451	$	435	$	1,743	$	1,741
Pre-tax Income:
Pre-tax income	$	351	$	372	$	1,532	$	1,535
Securities repositioning		-		-			8		20
Restructuring charges		-		-			-		53
Adjusted pre-tax income	$	351	$	372	$	1,540	$	1,608
Provision for Income Taxes:
Provision for income taxes	$	82	$	80	$	334	$	300
Tax on securities repositioning		-		-			2		5
Tax on restructuring charges		-		-			-		12
Discrete tax items		1		5			17		48
Adjusted provision for income taxes	$	83	$	85	$	353	$	365
Net Income:
Net Income	$	269	$	292	$	1,198	$	1,235
Securities repositioning, net of tax		-		-			6		15
Restructuring charges, net of tax		-		-			-		41
Discrete tax items		(1)		(5)			(17)		(48)
Adjusted net income	$	268	$	287	$	1,187	$	1,243
Diluted Earnings per Share:
Diluted earnings per share	$	1.85	$	1.96	$	7.87	$	7.20
Securities repositioning, net of tax		-		-			0.04		0.09
Restructuring charges, net of tax		-		-			-		0.24
Discrete tax items		-		(0.03)			(0.10)		(0.29)
Adjusted diluted earnings per share	$	1.85	$	1.93	$	7.81	$	7.24
Efficiency Ratio:
Reported		55.46%		51.54%			51.82 %		53.56%
Adjusted		55.46		51.54			51.82		51.96

Securities repositioning refers to losses incurred on the sale of approximately $1 billion and $1.3 billion of treasury securities in 2019and2018,respectively,thatwerereplacedbyhigher-yieldingtreasuries.Discretetaxitemsincludebenefitsfromstatedeferred tax adjustments in 2019, employee stock transactions, a review of certain tax capitalization and recovery positions in 2018, and a charge in 2018 to adjust deferred taxes resulting from the Tax Cuts and Jobs Act.

19

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) (Continued)

Comerica Incorporated and Subsidiaries

	December 31,	September 30,	December 31,
(dollar amounts in millions)		2019		2019		2018
Tangible Equity Ratio:
Shareholders' equity	$	7,327	$	7,200	$	7,507
Less:
Goodwill		635		635		635
Other intangible assets		4		4		6
Tangible equity	$	6,688	$	6,561	$	6,866
Total assets	$	73,402	$	72,848	$	70,818
Less:
Goodwill		635		635		635
Other intangible assets		4		4		6
Tangible assets	$	72,763	$	72,209	$	70,177
Equity ratio		9.98%		9.88%		10.60%
Tangible equity ratio		9.19		9.09		9.78
Tangible Equity per Share of Stock:
Shareholders' equity	$	7,327	$	7,200	$	7,507
Tangible equity		6,688		6,561		6,866
Shares of stock outstanding (in millions)		142		144		160
Shareholders' equity per share of stock	$	51.57	$	49.96	$	46.89
Tangible equity per share of stock		47.07		45.52		42.89

The tangible equity ratio removes the effect of intangible assets from capital and total assets. Tangible equity per share of stock removes the effect of intangible assets from shareholders equity per share of stock.

20