2023-06-13 14:36:32 ET
Comerica ( NYSE: CMA ) is planning organically to exit the mortgage banker finance business by the end of this year, according to a slide presentation it made Tuesday at an industry conference.
Shares gapped up 4.7% in mid-afternoon trading.
Benefits from the exit include smoothing seasonality and cyclicality in its loan portfolio, improving capital efficiency, and enhancing stability of its liquidity, it said.
Also during the conference, Chairman and CEO Curt Farmer said net interest income for the full year is expected to be "moderately above" the record set last year, thanks to rising rates and loan growth, partially offset by increased funding costs.
He also noted that deposit trends have been "more normal," though non-interest-bearing deposits will decrease some more.
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Comerica plans to exit mortgage finance business by end of year