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Comerica (CMA) in Dallas posted higher fourth-quarter earnings because of fewer chargeoffs and a smaller loan-loss provision.
January 17 -
Fee income and improvement in asset quality helped Comerica in Dallas increase third-quarter earnings.
October 16
Comerica (CMA) in Dallas slashed its quarterly earnings by 20% Tuesday after a Montana jury
The $65 billion-asset Comerica
Comerica said that it had increased its litigation reserve and lowered incentive compensation because of a complicated lawsuit against the company in the Montana Second District Judicial Court.
The lawsuit relates to a $9 million revolving line of credit that Comerica originally extended to office supply company Masters Group International. Another company, Butte Local Development Corp., gave Masters a $200,000 loan as part of the $9 million financing package, according to
Masters later defaulted on the Butte Local Development loan, as well as the Comerica loan. The bank recovered a total of $10.5 million from Masters through collection actions, according to the release.
Masters alleged in court documents that it was unable to repay Butte Local Development's $200,000 because Comerica decided first not to renew its existing loans and then changed the terms of the loans.
"As a result of Comerica Bank's failure to comply with the interim financing arrangement and related loan terms, Masters was not able to continue in operation or to pursue the alternative financing," Masters said in a
Comerica may appeal the jury decision to the Montana Supreme Court, the company's chairman and chief executive Ralph Babb said in the release.
"We believe we had meritorious defenses for this litigation and anticipated a favorable outcome," Babb said.