Comerica Inc (NYSE:CMA) reported third-quarter earnings that beat Wall Street expectations on Friday, helped by stronger deposits and solid credit performance, as the regional lender prepares to merge with Fifth Third Bancorp.
The Dallas-based bank posted earnings per share of $1.35, topping analyst estimates of $1.31, while net income came in at $176 million.
Net interest income rose to $574 million, above forecasts of $569.3 million, supported by disciplined pricing and steady loan balances, the company said.
Average deposits grew to $62.74 billion, surpassing expectations, while average loans were largely flat at $50.76 billion. Comerica’s net interest margin eased slightly to 3.09% from the prior quarter, reflecting a competitive rate environment.
Credit metrics remained stable, with net charge-offs at 0.25% of average and nonperforming assets steady at 0.51% of total loans. The bank set aside $22 million in provisions for credit losses, below estimates.
“Credit performance remains strong, with charge-offs still within our low normal range,” CEO Curtis Farmer said, adding that capital “remains a strength as we continue shareholder returns and progress toward our merger with Fifth Third.”
Shares of Comerica rose about 1.5% in morning trading.