Comerica’s profits took a 43 percent haircut due to losses in the California real estate market. The company saw a loss on loans they have in the Golden State and are planning on making provisions for further losses.
Earnings last year were $1.19 a share last year for the first quarter but came in at $0.73 this year.
Chief Executive Ralph Babb said deterioration in the California market had hampered the bank’s overall results but the company was taking steps to lessen its exposure there.
“We are aggressively addressing the situation as the market has continued to deteriorate,” he said in a statement accompanying the earnings report. via Reuters.
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