You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: As we all know, 2020 was a very trying year.
And I could not be more proud of the unwavering commitment of our team to serve our customers, communities and each other during this unprecedented time.
It has been truly remarkable.
When I assumed the role of Chairman in January, the fundamentals of the economy were strong.
And I was looking forward to working with our executive team to execute our relationship banking strategy.
Then in March, our focus shifted due to COVID.
Despite the many challenges the pandemic posed, we have proven our resilience and achieved many important accomplishments along the way.
This includes the Bank and the Comerica Charitable Foundation, together providing $11 million in assistance to local communities and businesses.
We funded $3.9 billion in PPP loans to small and medium-sized companies.
We were able to quickly enable the majority of our employees to work remotely and introduce programs to provide support, such as Promise Pay and Dependent Care Stipends.
As consumers' desire to utilize digital channels increased, we enhanced our online capabilities for deposit accounts as well as loan originations.
Also, we achieved our 2020 environmental goals set in 2012 to meaningfully reduce our water, waste, paper and GHG emissions.
Our commitment to corporate responsibility was recognized, including receiving high marks from Newsweek, DiversityInc.
, Civic 50, CDP and Corporate Nights.
The compassion and tireless efforts of our colleagues across the Bank has allowed Comerica to persevere and remain in a strong position as we move forward.
Slide 4 provides a review of our 2020 financial results, which included solid loan performance and a record level of deposits.
This growth, combined with prudent management of loan and deposit pricing and action we took to deploy excess liquidity, helped offset the pressure of rates dropping to ultra-low levels.
In light of the swift deterioration of the economy, we significantly increased our credit reserve and took a large provision in the first quarter.
While we saw some negative credit migration through the year, it has been manageable.
And our net charge-offs for the year were 38 basis points or 14 basis points excluding energy.
A true testament to our relationship banking strategy and deep credit experience.
Card fees and securities trading income were strong, while other fees such as deposit service charges and commercial lending fees were impacted by the slowdown in economic activity.
Expenses remained well controlled and included COVID-related cost.
We maintained our strong capital levels and booked -- our book value grew 7% to over $55 per share.
In summary, a solid performance, particularly considering the difficult environment.
Our fourth quarter performance is outlined on Slide 5.
We generated earnings of $215 million or $1.49 per share, a 3% increase over the third quarter, driven by an increase in revenue and strong credit quality.
Compared to the third quarter, loans essentially performed as we expected.
While lower on a quarter-over-quarter basis, average loans increased in December relative to November by nearly $300 million excluding PPP loan repayments.
Our loan pipeline continue to grow through the year to pre-COVID levels at year end.
Average deposits increased by nearly $1.5 billion to an all-time high with 55% of the growth derived from non-interest-bearing accounts.
Customers continue to prudently manage their cash, cutting costs and reducing leverage.
Yet, they remained cautiously optimistic that the economy will pick up in the back half of this year.
Net interest income increased $11 million benefiting from our continued careful management of loan-to-deposit pricing, combined with the contribution from fees related to PPP loan forgiveness.
This was partly offset by lower loan balances.
In addition, lower yields on our securities portfolio were mostly offset by actions we took in the third quarter to deploy a portion of excess liquidity by increasing the size of the portfolio.
As far as credit, our metrics remained strong and our provision was a credit of $17 million.
Criticized loans declined and net charge-offs were only 22 basis points.
Positive portfolio migration and the slight improvement in the economic forecast resulted in a reduction of the credit reserve to just under $1 billion or nearly three times non-performing assets.
Through the cycles, our credit performance relative to the industry has been a key differentiator.
And I believe we will continue to outperform.
Non-interest income increased $30 million or 5% as customer activity continued to rebound.
This included strong derivative income and commercial lending fees.
We continue to maintain our expense discipline as we invest for the future.
While expenses were higher in the fourth quarter, this was primarily driven by performance incentives as well as outside process related to our card platform.
Our capital levels remained strong.
Our CET1 ratio increased to 10.35%, above our target of 10%.
As always, our priority is to use our capital to support our customers and drive growth, while providing an attractive return to our shareholders.
Turning to Slide 6.
Average loans decreased approximately $600 million or 1%, which compared favorably to the industry HA data.
Loans in Corporate Banking and General Middle Market decreased as customers are performing well, prudently managing their business to increase cash flow and reduce debt.
For the fourth consecutive quarter, energy loans decreased and are at the lowest level since 2011.
The U.S. rig count is less than half of what it was a year ago.
However, it has been gradually increasing since late summer as oil prices began to recover.
Technology and Life Sciences loans declined about $180 million, mainly due to M&A and increased liquidity, driven by fundraising activity and companies reducing cash burn.
Equity Funds Services, which provides capital call lines to investment companies increased $244 million as activity has picked up with new fund formation.
National Dealer increased $190 million as inventory levels are rebuilding, yet remains $2 billion below fourth quarter 2019.
Mortgage Banker reached a new record with strong activity in both refi and home sales.
Period end loans were stable and included a decline in PPP balances of $298 million, primarily due to loan forgiveness.
Line utilization at year end for the total portfolio remained relatively low at 48%.
Loan yields increased seven basis points with accelerated fees from PPP forgiveness and continued pricing actions, particularly adding LIBOR floors when possible as loans renew.
Average deposits increased 2% or $1.5 billion to a new record of $70.2 billion, as shown on Slide 7.
The largest driver continues to be non-interest-bearing deposits and growth has been broad-based with increases in nearly every business line.
Customers continue to conserve and maintain excess cash balances.
Period end deposits increased over $4.4 billion.
Timing of monthly benefit activity in our government prepaid card business increased balances by $2.2 billion at quarter end.
However, this does not include the latest stimulus payments, which were received in early January.
With strong deposit growth, our loan-to-deposit ratio decreased to 72%.
The average cost from interest-bearing deposits reached an all-time low of 11 basis points, a decrease of six basis points from the third quarter and our total funding cost fell to only 10 basis points.
As you can see on Slide 8, the average balance of the securities portfolio increased.
This was due to the third quarter purchase of $2.25 billion in additional securities, primarily treasuries, as we took some action to put some of our excess liquidity to work.
The additional securities combined with lower rates on the replacement of prepays, which totaled about $1 billion, resulted in the yield on the portfolio declining to 1.95%.
We expect repayments of MBS to continue to be about $1 billion per quarter and yields on reinvestments to be in the low-to-mid 100 basis point range.
Turning to Slide 9.
Net interest income increased $11 million to $469 million and the net interest margin was up three basis points to 2.36%.
Interest income on loans increased $6 million, adding four basis points to the margin.
Higher fees, mostly related to PPP loan forgiveness and continued pricing actions as loans renew, together added $10 million and four basis points to the margin.
Other portfolio dynamics, including higher non-accrual income, added $1 million.
The decrease in loans had a $5 million unfavorable impact.
Lower securities yields had a $6 million or three basis point negative impact.
This was mostly offset by the higher balance, which added $5 million.
Average balances of the Fed increased over $500 million, impacting the margin by one basis point.
Our extraordinarily high Fed balances of $13 billion continue to weigh heavily on the margin with the gross impact of approximately 43 basis points.
Finally, prudent management of deposit pricing added $5 million and three basis points to the margin and lower rates on wholesale funding added $1 million.
Given the nature of our portfolio, our loans reprice very quickly as rates dropped earlier last year, so the bulk of the impact from lower rates has been absorbed.
Also, while deposit rates are at record lows, we continue to manage deposit pricing with a close eye in the competitive environment and our liquidity position.
Overall, credit quality was strong, as shown on Slide 10.
Gross charge-offs were only $39 million, a decrease of $14 million from the third quarter.
Net charge-offs were $29 million or 22 basis points.
Non-performing assets increased $24 million, yet remained below our historical norm at 69 basis points of total loans.
Inflows to non-accrual were about half of the amount of the third quarter and the lowest level of any quarter since the pandemic began.
Criticized loans declined $459 million and comprised 6% of the total portfolio.
We believe our disciplined underwriting and diverse portfolio are assisting us in managing through the pandemic conditions.
Positive migration in the portfolio combined with a modestly improved economic outlook resulted in a small decrease in our allowance for credit losses.
As the path to full economic recovery remains uncertain due to the unprecedented challenges of the COVID-19 pandemic, our reserve ratio remains elevated at 1.90% or 2.03%, excluding PPP loans.
We are well positioned with a relatively high credit reserve and overall improving credit quality.
Slide 11 provides detail on segments that we believe pose higher risk in the current environment.
Period end loans in the social distancing segment declined slightly.
Criticized loans were stable and non-accruals remain under 1%.
This segment has performed better than expected, but issues can be lumpy and sudden and resulted in net charge-offs of $21 million in the fourth quarter.
The new round of PPP will certainly be helpful for customers that are challenged by the current environment.
Energy loans decreased 13% to $1.6 billion at quarter end, representing 3% of our total loans.
Oil prices have increased and credit quality has improved with reductions in criticized, non-accruals and net charge-offs.
We have seen a little more capital markets activity and fall redeterminations resulted in only a slight decrease in borrowing basis due to lower reserves.
Additional information can be found in the appendix.
While we are pleased with the performance of these segments, we have applied a more severe economic forecast to them, and believe we are well reserved.
Non-interest income increased $13 million, as outlined on Slide 12, continuing the positive trend we've seen since post the shutdown of the economy earlier last year.
Fourth quarter includes increased customer activity in most categories.
Customer derivative income increased $8 million with higher volume due to interest rate swaps and energy hedges, combined with the change in the impact from the credit valuation adjustment.
Specifically, there was an unfavorable adjustment of $6 million in the third quarter and a favorable adjustment of less than $1 million in the fourth quarter.
Commercial lending fees increased $5 million with the seasonal pickup in syndication activity and higher unutilized line fees.
We had smaller increases in fiduciary, foreign exchange and letters of credit.
Also, card fees remained very strong due to government card and merchant activity spurred by the economic stimulus and changes in customer behavior related to the COVID environment.
Securities trading income, which includes fair market adjustments for investments we hold related to our Technology and Life Sciences business, decreased $5 million from elevated levels generated over the last couple of quarters.
Note, deferred comp asset returns were $9 million, a $1 million increase from the third quarter and are offsetting non-interest expenses.
All in all, a strong quarter for fee income.
Turning to expenses on Slide 13.
Salaries and benefits increased $14 million with higher performance-based incentives, severance, staff insurance expense and technology-related labor.
Note that on a full year basis, salary and benefit expense was stable with a reduction in incentive compensation, offsetting annual merit, higher deferred comp and COVID-related costs.
We realized a $7 million increase in outside processing due to card activity, technology spend as well as PPP program costs.
Occupancy increased $2 million due to a catch-up in maintenance projects that were delayed due to COVID as well as seasonal expenses.
There is also a seasonal increase in advertising expense.
Our strong expense discipline is well ingrained and is assisting us in navigating this low rate environment as we invest for the future.
Our capital levels remained strong, as shown on Slide 14.
Our CET1 ratio increased to an estimated 10.35%, above our target of 10%.
As always, our priority is to use our capital to support our customers and drive growth, while providing an attractive return to our shareholders.
In this regard, we've maintained a very competitive dividend yield.
As far as share repurchases, we have a long track record of actively managing our capital and returning excess capital generated to shareholders.
As we sit here today, a great deal of uncertainty remains about the ultimate pace of the economic recovery, whether it be faster or slower than economists forecast.
For that reason, we have paused for share repurchases and look forward to starting the program as soon as we deem it prudent to do so.
Slide 15 provides our outlook for the first quarter relative to the fourth quarter as well as some color in the year ahead.
In the first quarter, we expect National Dealer loans to continue to increase at a moderate pace as auto inventory rebuilds.
Also, middle market is expected to grow as a result of increased economic activity.
However, this will be more than offset by Mortgage Banker declining from its record high due to seasonally lower purchase and refi volumes.
Energy is expected to decrease due to higher oil prices driving improved cash flow and capital markets activity.
As far as PPP loans, we expect the pace of loan forgiveness could potentially exceed the second round of fundings.
Looking past the first quarter, excluding PPP loan activity and based on improving economic conditions, we expect loans to grow throughout the year.
We expect average deposits to remain strong in the first quarter as customers continue to carefully manage their liquidity.
As far as net interest income, continued management of loan and deposit pricing is expected to be accretive, albeit to a lesser degree than we've seen so far.
We are currently in the process of deploying some excess liquidity by repaying $2.8 billion of FHLB advances over an eight week period, which will provide a modest lift.
These benefits are expected to be more than offset by reduced loan balances, lower yields on securities, slightly lower LIBOR as well as two fewer days in the quarter.
As we move through the year, assuming there is no change from rates that we experienced in the fourth quarter, we expect quarterly pressure on securities yields and swap maturities to mostly -- to be mostly offset by loan growth, excluding PPP impacts.
We expect net charge-offs to increase from low levels we've seen recently.
However, with our credit reserve at year end at over 2% of loans, excluding PPP, we believe we are well positioned to manage through this period of economic uncertainty.
We expect non-interest income in the first quarter to benefit from higher deposit service charges, fiduciary and brokerage fees.
As deferred comp is difficult to predict, we assume it will not be repeated.
We expect a seasonal decline in syndication activity.
Also, card, warrants and securities trading income are expected to decline from elevated levels.
As we progress through the year, we believe that customer-driven fee categories in general should grow with improving economic conditions.
We expect expenses to be lower in the first quarter.
Our pension expense is expected to decline $9 million in the first quarter to get to the new run rate for 2021.
The decline is primarily due to strong investment performance in 2020.
As I mentioned, we do not forecast deferred comp of $9 million to repeat.
Also, marketing and occupancy expenses are expected to be seasonally lower, and there are two less days in the quarter.
Partly offsetting all of this, first quarter includes annual stock comp and associated higher payroll taxes.
We remain focused on maintaining our expense discipline while we invest in the future.
Therefore, on a full year basis, we expect higher salary expense related to normal merit and incentive comp as well as higher tech spend will be mostly offset by lower pension and deferred comp returns.
We expect a 22% tax rate, excluding discrete items.
Finally, as mentioned on the previous slide, we remain focused on maintaining our strong capital levels and providing an attractive return to shareholders.
While difficult and uncertain conditions persist, I am confident that our team will continue to adapt and thrive as we have over the past year.
We expect the economy will improve in 2021.
We believe firming trade and manufacturing conditions, increasing business and consumer confidence as well as pent-up demand will support solid economic growth, particularly in the back half of the year.
Comerica has a long history of successfully managing through challenging times.
We have demonstrated our resiliency and unwavering dedication to provide a high level of customer service as we navigate the COVID pandemic.
We maintain a culture that drives continuous efficiency improvement.
We believe this will assist us in preserving our cost base as the economy improves, and we continue to invest in our future.
Our discipline credit culture and strong capital base continues to serve us well.
Utilizing our deep expertise and experience to help our customers navigate these difficult times builds and solidifies long-term relationships.
These key strengths provide the foundation to continue to deliver long-term shareholder value.
This has been demonstrated by our ROE, which increased over 11% in the fourth quarter and our book value per share, which grew 7% over the past year as well as the current dividend yield, which remains above 4%.

user
compname reports q4 net income of $1.49 per share.
q4 2020 net income $1.49 per share.
qtrly net interest income increased $11 million to $469 million.
q1 2021 average deposits to remain strong.
sees decline in net interest income with lower average loan balances, libor and security yields as well, in q1 2021 versus q4 2020.
qtrly provision for credit losses decreased $22 million to a benefit of $17 million versus q3.
q4 net interest income $469 million versus $544 million in q4 2019.

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