First Quarter 2017 Financial Review slide image

First Quarter 2017 Financial Review

Energy Line of Business Credit Quality Continues to Improve Granular, contracting portfolio Energy Line of Business Loans Midstream 3,097 ($ in millions; Period-end) Services ■ Maintain granular portfolio: ~180 customers ■Exploration & Production 2,741 2,457 2,250 1,955 2,162 1,911 1,773 1,587 1,360 426 363 332 289 268 509 467 352 374 327 1Q16 2Q16 3Q16 4Q16 1Q17 ■Loans decreased $1.1B since 3/31/16 ☐ Spring redeterminations 12% complete¹ Borrowing bases modestly higher ■>90% of nonaccrual loans current on interest as of 3/31/17 Energy Line of Business Criticized Loans² ($ in millions) Total Commitments -Utilization Rate NALS 1,833 5,573 1,552 Reserve³ 1,473 4,945 -7% 4,605 4,385 1,155 4,151 871 00000 54% 54% 52% 50% 45% 423 346 378 328 266 1Q16 2Q16 3Q16 4Q16 1Q17 1Q16 2Q16 3Q16 4Q16 1Q17 3/31/17 1As of 4/7/17 2Criticized loans are consistent with regulatory defined Special Mention, Substandard & Doubtful categories Bank's entire allowance is available to cover any & all losses. Allocation of allowance for Energy loans reflects our robust allowance methodology which contains quantitative and qualitative components. Comerica Bank 21 Mortgage Banker Finance 50 Years experience with reputation for consistent, reliable approach Average Loans ($ in millions) Actual MBA Mortgage Origination Volumes 1,2 Provide warehouse financing: bridge from residential mortgage origination to sale to end market Extensive backroom provides collateral monitoring and customer service Focus on full banking relationships Granular portfolio with 100+ relationships Underlying mortgages are typically related to home purchases as opposed to refinances As of 1Q17: Comerica: ~77% purchase Industry: 59% purchase¹ Strong credit quality • No charge-offs since 2010 1Q12 1,483 2Q12 ,507 3Q12 1,996 4Q12 2,094 1Q13 1,737 2Q13 3Q13 815 1,605 4Q13 1,109 1Q14 886 2Q14 1,319 3Q14 1,595 4Q14 1,397 1Q15 1,399 2Q15 2,089 3Q15 2,136 4Q15 1,742 1Q16 1,674 2Q16 2,145 3Q16 2,544 4Q16 2,352 1Q17 1,450 MBA Mortgage Originations Forecast¹ ($ in billions) ■Purchase Refinance 450 437 445 443 361 352 345 355 1917 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 3/31/17 1Source: Mortgage Bankers Association (MBA) Mortgage Finance Forecast as of 3/15/17; 1Q17 Estimated 2$ in billions Comerica Bank Ⓡ 22 900 800 700 600 500 400 300 200
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