Comerica released its first-quarter earnings, revealing a net income of $134 million, compared to $130 million for the fourth quarter of 2012.
The associated net interest income for residential mortgage loans in the first quarter totaled $17 million, Comerica (CMA) reported.
According to the report, lower reinvestment yields on mortgage-backed investment securities coupled with a decrease in average balances decreased net interest income by $2 million. However, overall net interest income also declined $8 million compared to the fourth quarter of 2012.
In the first quarter, earnings per share hit 70 cents, up from 68 cents per share in the fourth quarter of 2012. ()
The average total loans for the bank increased $498 million, or 1%, to $44.6 billion from $42.3 billion in the same period a year ago.
A $356 million decrease in mortgage banking was more than offset by broad-based increases in other business lines, according to the report.
“Broad-based average loan growth in each of our primary geographic markets, together with tight expense controls, contributed to our increased net income in the first quarter,” said Ralph W. Babb Jr., chairman and chief executive officer of the company.
He added, “Our commercial banking expertise drove our overall loan growth. An expected decline in Mortgage Banker Finance was more than offset by increases in general middle market, national dealer services, energy, and technology and life sciences.”
Credit quality remained stable overall, Comerica said.
mhopkins@housingwire.com
