Comerica, Inc. (NYSE: CMA) reported Q1 EPS of $0.73, $0.01 better than the analyst estimate of $0.72.

First Quarter 2014 Compared to Fourth Quarter 2013

• Average total loans increased $1.0 billion, or 2 percent, to $45.1 billion, primarily reflecting increases of $679 million, or 2 percent, in commercial loans and $231 million, or 2 percent, in combined commercial mortgage and real estate construction loans. The increase in commercial loans was reflected in almost all lines of business. Period-end total loans increased $1.0 billion, or 2 percent, to $46.5 billion, primarily reflecting a $959 million, or 3 percent, increase in commercial loans. The increase in commercial loans was primarily driven by increases in general Middle Market, Energy, Corporate Banking and Technology and Life Sciences.
• Average total deposits were stable at $52.8 billion, primarily reflecting a decrease in noninterest-bearing deposits of $296 million, partially offset by an increase in money market and interest-bearing checking deposits of $231 million. Period-end deposits increased $458 million, to $53.8 billion.
• Net interest income decreased $20 million to $410 million in the first quarter 2014, compared to $430 million in the fourth quarter 2013, and reflected decreases in both the accretion of the purchase discount on the acquired loan portfolio from an unusually high fourth quarter amount and interest collected on nonaccrual loans, as well as the impact of two fewer days in the first quarter 2014. The benefit from an increase in loan balances largely offset the impact of lower loan yields.
• The provision for credit losses was stable at $9 million in the first quarter 2014, reflecting continued strong credit quality. Net charge-offs were $12 million, or 0.10 percent of average loans, in the first quarter 2014.
• Noninterest income decreased $11 million to $208 million in the first quarter 2014, reflecting decreases of $6 million in customer-driven income and $5 million in noncustomer-driven income.
• Noninterest expenses decreased $67 million to $406 million in the first quarter 2014, primarily reflecting a $49 million decrease in litigation-related expenses and an $11 million decrease in salaries and benefits expense, largely due to a decrease in pension expense.
• As previously announced, the Federal Reserve completed its 2014 Comprehensive Capital Analysis and Review (CCAR) in March 2014 and did not object to the capital distributions contemplated in Comerica's capital plan, including up to $236 million in share repurchases for the four-quarter period ending first quarter 2015.
• Capital remained solid at March 31, 2014, as evidenced by an estimated Tier 1 common capital ratio of 10.54 percent and a tangible common equity ratio of 10.20 percent.

First Quarter 2014 Compared to First Quarter 2013

• Average total loans increased $458 million, or 1 percent, primarily reflecting an increase of $306 million, or 1 percent, in commercial loans, partially offset by a decrease of $115 million, or 1 percent, in combined commercial mortgage and real estate construction loans. The increase in commercial loans was primarily driven by increases in National Dealer Services, Technology and Life Sciences, and general Middle Market, partially offset by a decrease in Mortgage Banker Finance.
• Average total deposits increased $2.1 billion, or 4 percent, primarily reflecting increases of $1.7 billion, or 8 percent, in noninterest-bearing deposits and $348 million, or 1 percent, in interest-bearing deposits.
• Net income increased $5 million, or 4 percent, primarily the result of lower noninterest expenses and a decrease in the provision for credit losses, partially offset by decreases in net interest income and noncustomer-driven noninterest income.

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