Comerica Incorporated

Greetings and welcome to Comerica first quarter 2025 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If you would like to register a question you may press star 1 on your telephone keypad at this time. If anyone requires operator assistance during the conference please press star 0 on your telephone keypad. As a reminder this conference is being recorded It is now my pleasure to introduce your host, Kelly Gates, Director of Investor Relations. Thank you. Please go ahead.

Thanks, Donna. Good morning and welcome to Comerica's first quarter 2025 earnings conference call. Participating on this call will be our President, Chairman, and CEO, Kurt Farmer, Chief Financial Officer, Jim Herzog, Chief Credit Officer, Melinda Chausse, and Chief Banking Officer, Peter Sebsic. During this presentation, we will be referring to slides which provide additional details. The presentation slides and our press release are available on the SEC's website, as well as in the investor relations section of our website, Comerica.com. The presentation and this conference call contain forward-looking statements. In that regard, you should be mindful of the risks and uncertainties that can cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date of this presentation, and we undertake no obligation to update any forward-looking statements. Please refer to the Safe Harbor Statement in today's earnings presentation on slide two. Also, the presentation and this conference call will reference non-GAAP measures. In that regard, I direct you to the reconciliation of these measures and the earnings materials that are available on our website, Comerica.com. Now, I'll turn the call over to Kurt, who will begin on slide three.

Well, good morning, everyone, and thank you for joining our call. This was a strong quarter for Comerica. We exceeded expectations across a number of categories resulting in higher profitability over the prior quarter. Although we saw seasonal deposit outflows, non-interest bearing balances performed well and contributed to net interest income outperforming guidance. Movement in the rate curve benefited our tangible common equity ratio and drove an increase in our book value at quarter end. Conservative capital management remained a priority. and we grew our estimated CET1 ratio while returning $143 million to common shareholders through share repurchases and dividends. Beyond our financial results, customer sentiment took a step back as the market saw an increase in macroeconomic uncertainty. As our customers await further clarity, we plan to continue confidently executing our relationship model striving to provide customers with the consistency and support they need to adapt and succeed. Comerica's legacy is built on successfully managing through cycles. We fill our unique model positions as well to navigate a dynamic environment. Credit is a competitive differentiator with net charge-offs that have historically outperformed peers. We are regarded for our underwriting discipline. It's in our DNA, and it's a crucial part of our culture. We benefit from a diversified, commercially-oriented business mix and have limited consumer exposure. We enjoy long-tenured customer relationships with seasoned leadership teams who in many cases have successfully weathered downturns before. Our capital position provides us flexibility with an estimated CET1 ratio well above our strategic target. We have robust liquidity with a strong multi-deposit ratio and have demonstrated our ability to quickly access additional liquidity as needed. We took deliberate steps to minimize our exposure to rate volatility. In fact, if rates decline, we expect to benefit, and in the last downed rate cycle, we saw outsized deposit growth relative to our peers. There are still a number of unknowns, and we, along with the market, will continue to monitor developments closely. Regardless of the direction of the economy, we feel confident in our playbook and track record to perform competitively. Moving back to a summary of the first quarter on slide four, we reported earnings of $172 million, or $1.25 per share. Muted loan demand, coupled with declines in national dealer services and commercial real estate, drove a modest reduction in average loan balances in the quarter. Good deposit trends, The impact of BISB cessation and the structural benefit of our swap and securities portfolios all set the negative impact of lower loans, keeping net interest income flat. These factors also drove a 12 basis point expansion of our net interest margin. Our credit portfolio remained resilient, and despite inflationary pressures continuing to impact customers, our credit and rent metrics remain historically low. Although net charge-offs increased over the very low level seen post-COVID, they remained at the low end of the normal 20 to 40 basis point range. Non-interest income grew, but we saw CBA, non-customer related, and seasonal pressures across several line items. Non-interest expenses declined as we prioritized efficiency, but also saw but also saw some slowdown in business activity. Capital remained at strength with an estimated CET1 ratio of 12.05%, comfortably above our strategic target, again providing us flexibility to navigate the economic environment. In all, we felt great about the quarter and feel we are positioned to support our customers while delivering results. Now I'd like to turn the call over to Jim for further details.