Comerica Incorporated (CMA) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 21, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the 2023 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.

I would now like to turn the conference over to your host, Director of Investor Relations, Kelly Gage. Please go ahead.

Kelly Gage

Thanks, Craig. Good morning and welcome to Comerica's second quarter 2023 earnings conference call. Participating on this call will be our President, Chairman, and CEO, Curt Farmer; Chief Financial Officer, Jim Herzog; Chief Credit Officer, Melinda Chausse; and Chief Banking Officer, Peter Sefzik.

During this presentation, we will be referring to slides, which provide additional details. The presentation slides and our press release are available on the SEC's website as well as in the Investor Relations section of our website, comerica.com.

This conference call contains forward-looking statements. In that regard, you should be mindful of the risks and uncertainties that can cause actual results to vary materially from expectations. Forward-looking statements speak only as of the date of this presentation and we undertake no obligation to update any forward-looking statements.

Please refer to the Safe Harbor statement in today's earnings release on slide two, which is incorporated into this call as well as our SEC filings for factors that can cause actual results to differ.

Also, this conference call will reference non-GAAP measures. And in that regard, I direct you to the reconciliation of these measures in the earnings materials that are available on the website, comerica.com.

Now I will turn the call over to Curt, who will begin on slide three.

Curtis Farmer

Good morning, everyone, and thank you for joining our call. Today, we reported second quarter earnings of $273 million or $2.01 per share. Average loans grew to $55.4 billion and a continued focus on fee income helped drive our second highest non-interest income quarter in our history. Expenses declined and our disciplined approach to credit produced a third consecutive quarter of net recoveries.

Beyond our compelling financial results, we have launched a transformational expansion and support for small businesses. In the second quarter, we introduced tailored products designed to improve access to capital and enhance cash management capabilities for these important customers, while also providing access to valuable business insight and resources.