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
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