Comerica reported improvement in its energy-loan portfolio in the second quarter but charges related to a broad corporate restructuring took a bite out of overall profits.
The Dallas company said Tuesday that it earned $103 million in the second quarter, a decline of 23% from the same period last year but a 75% improvement over its first-quarter results. Earnings per share fell 21% year over year, to 53 cents.
The highlight for the $70.7 billion company was improved credit quality, aided in part by stabilizing energy prices. The company said Tuesday that energy related chargeoffs, while still higher than a year earlier, fell 24% from the prior quarter, to $32 million. As a result, the company was able to reduce its provision for loan losses by 67%, to $49 million.
The company also reported marginal gains in both interest and noninterest income, aided by modest loan growth and higher revenue from payments and card products.
Expenses were markedly higher, however, as a result of the previously announced restructuring. The company has set a goal of reducing annual expenses by roughly $160 million through a combination of staff cuts, branch closures and other measures. Restructuring charges in the second quarter totaled $53 million, the bulk of which were related to severance costs.