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INSIGHTS INTO THE BANKING INDUSTRY

Comerica sheds more light on 1Q deposit outflows

Comerica in Dallas provided more details on the deposit outflows that took place during the first quarter.

The $91.1 billion-asset company said in a press release that deposits fell by $3.7 billion, or 5.2%, between March 9 and March 31. The decrease reflected “diversification efforts by customers with excess balances significantly above those of the average relationship profile,” the release said.

The decreases included $926 million in retail banking, $914 million in technology and life sciences and $806 million in general middle market.

Another $495 million of outflows were tied to wealth management, $352 million in business banking, $329 million in commercial real estate and $209 million in equity fund services.

Uninsured deposits fell by 23% during the quarter, to $35 billion, or 54% of total deposits. Comerica said it added $13.8 billion in liquidity during the first quarter, largely consisting of FHLB advances.

“I am incredibly proud of Comerica’s successful navigation of the disruption recently experienced across the banking industry,” Curtis Farmer, Comerica’s chairman and CEO, said in the release.

“Our colleagues immediately mobilized, executed on our prepared strategy, conservatively enhanced our liquidity position and seamlessly supported new and existing customers,” Farmer added. “We successfully protected our core customer relationships as deposit pressure was largely localized to select portfolios.”

Net income increased by 71% from a year earlier, to $324 million.

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