As previously reported, Morgan Stanley analyst Ken Zerbe downgraded Comerica to Equal Weight from Overweight with a price target of $75, down from $77. Driven by its high level of asset sensitivity and its lag to the industry in repricing its deposit costs lower, Zerbe sees "far more" net interest margin compression at Comerica by the end of 2020 than the median he expects at its peers, the analyst tells investors. While the Fed being on pause gives him more confidence in his net interest income assumptions, he sees too few catalysts remaining for the stock given the bulk of the bank's share repurchases are complete, the Fed is still biased toward cutting rates rather than raising, and loan growth is slowing, Zerbe said.

Reports Q1 CET1 capital ratio 12.01%. Reports Q1 net charge-offs .1%. "Today we reported first quarter earnings per share of $0.98," said Curtis Farmer, Comerica chairman and CEO. "Strategic rationalization efforts from 2023 and favorable pipeline trends position us for growth. Deposits outperformed normal seasonal patterns as we added new customers and expanded existing relationships while maintaining pricing discipline. Our liquidity strategy remained a highlight as we normalized our cash position, significantly reduced wholesale funding and successfully executed a record $1.0 billion debt issuance. We experienced ongoing, expected credit normalization, while net charge-offs of 10 basis points continued to be historically low. We are committed to running an efficient organization as we navigate expense pressures and execute on the action plans announced last quarter. Conservative capital management and lower loan balances further enhanced our capital position and drove our estimated CET1 ratio to 11.47, well above our 10% target."