Comerica Incorporated reported first quarter 2015 net income of $134 million, compared to $149 million for Q4 2014 and $139 million for Q1 2014.
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Earnings per diluted share were 73 cents for the first quarter 2015, compared to 80 cents for the fourth quarter 2014 and 73 cents for the first quarter 2014.
Average total loans increased $790 million, or 2 percent, to $48.2 billion, primarily reflecting a $699 million increase in commercial loans. The increase in commercial loans was primarily driven by increases in Energy, general Middle Market, Technology and Life Sciences and National Dealer Services. Average loans increased across all markets. Period-end total loans increased $479 million, to $49.1 billion.
Average total deposits decreased $770 million, or 1 percent, to $57.0 billion, following robust growth of $2.6 billion, or 5 percent, in the fourth quarter 2014. The decrease primarily reflected a decline in noninterest-bearing deposits of $807 million, largely driven by Corporate Banking. Period-end total deposits increased $84 million, to $57.6 billion.
Net interest income remained relatively stable at $413 million.
Overall credit quality remained strong. The allowance for credit losses increased $5 million, primarily reflecting the impact of loan growth and increased reserves for loans related to energy(a), including a qualitative component, partially offset by improvements in credit quality in the remainder of the portfolio.
Net charge-offs were $8 million, or 0.07 percent of average loans, in the first quarter 2015, compared to $1 million, or 0.01 percent, in the fourth quarter 2014. As a result, the provision for credit losses increased to $14 million in the first quarter 2015.
Excluding the impact of a change in accounting presentation for a card program ($44 million), noninterest income decreased $13 million in the first quarter 2015, primarily reflecting decreases in customer derivative income and commercial lending fees.
Excluding the impact of the change in accounting presentation for a card program ($44 million), noninterest expenses decreased $3 million in the first quarter 2015, primarily reflecting lower net occupancy and consulting expenses, partially offset by a seasonal net increase in compensation expense.
Capital remained solid at March 31, 2015, as evidenced by an estimated common equity Tier 1 capital ratio of 10.43 percent and a tangible common equity ratio of 9.97 percent.
As previously announced, the Federal Reserve completed its 2015 Comprehensive Capital Analysis and Review (CCAR) in March 2015 and did not object to the capital distributions contemplated in Comerica's capital plan. Basel III capital rules became effective for Comerica on January 1, 2015.
Comerica repurchased approximately 1.4 million shares of common stock during the first quarter 2015 under the equity repurchase program. Together with dividends of $0.20 per share, $95 million was returned to shareholders.
First quarter 2015 compared to first quarter 2014
Average total loans increased $3.1 billion, or 7 percent, reflecting increases in almost all lines of business.
Average total deposits increased $4.2 billion, or 8 percent, driven by an increase in noninterest-bearing deposits of $3.5 billion, or 15 percent, and reflecting increases in all major lines of business.
Net income decreased $5 million, or 3 percent, primarily reflecting revenue increases offset by higher outside processing expenses related to revenue generating activities and increases in the provision for credit losses and technology-related contract labor expenses. ■