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: Today we reported earnings of $211 million, an increase of 87% over the second quarter.
Our customers continue to act prudently, conserving cash and adjusting their operations, driving a reduction in loans and taking deposits to a new record.
Lower loan balances along with strong credit metrics and an improving yet uncertain economic path resulted in the allowance for credit losses remaining near 2% and a provision of $5 million.
As far as revenue, the impact from lower interest rates waned, card fees remained robust and other fee income categories began to recover.
Expenses are well controlled and included a $4 million increase in charitable contributions.
ROE returned to double-digits at nearly 11% and our book value per share grew to $53.78, the seventh consecutive quarterly increase.
We remain focused on continuing to enhance shareholder value.
Based on recent conversations I've had with employees and customers, sentiment appears to be modestly better, reflecting cautious optimism and a sense of hope for the future based on our country's overall economic resiliency.
We've begun to see some signs of improving conditions.
However, it is very difficult to predict the pace of the recovery.
This is reflected in our loan portfolio, where overall, we are starting to see some positive trends.
Balances begin to grow mid-quarter and increased modestly month-over-month in September.
Also, our pipeline has begun to rebuild, although it remains well below pre-COVID levels.
On a full quarter average basis, loans decreased $1.5 billion in the third quarter.
The largest contributor was a $910 million drop in average National Dealer loans in conjunction with significant decline in dealer inventory levels in the second quarter, which have yet to recover.
This is due to supply backlogs following the manufacturing shutdown combined with the rebound in sales activity.
We anticipate loans will rebound next year as auto inventory returns to normal levels.
Deposits continue to show strong broad-based growth with average balances increasing $4.5 billion, including $3.2 billion and non-interest-bearing deposits.
Government stimulus programs have provided tremendous liquidity.
In addition, as we've seen in other times of economic uncertainty, our relationship-based customers are maintaining a building cash in safety or their Comerica accounts.
The resulting increase in liquidity drove our total average assets to a record $84.3 billion.
As expected, net interest income declined $13 million as lower interest rates had a $15 million impact.
In this ultra-low rate environment, we continue to carefully manage loan and deposit pricing to attract and maintain customer relationships.
Comerica has a strong credit culture with conservative credit underwriting which has served us well in times of economic stress.
During the current period of unprecedented disruption, our portfolio has performed well, and we believe this will continue to be a differentiator for us in the industry.
Criticized loans remained stable and non-performing assets are well below historic norms.
Also, net charge-offs decreased only 26 basis points.
However, given the difficulty in predicting the path of economic recovery, our credit reserve remains at over $1 billion.
We are staying close to our customers in addressing their needs.
At the current level, we believe our reserves are appropriate and that we are well positioned.
Non-interest income increased as customer activity began to rebound, including continued strong contribution from our card platform.
Of note, following robust activity in the second quarter, derivative income declined $10 million.
We have continued to maintain our expense discipline.
Excluding the impact of deferred comp and an increase in charitable contributions, expenses declined.
Our capital remained strong with an estimated CET1 of 10.3%.
We remain focused on deploying our capital to support growth, while maintaining our very attractive competitive dividend.
Turning to Slide 4.
Average loans decreased $1.5 billion, which compares favorably to results for the industry as indicated by the H8 data for large banks.
As Curt mentioned, National Dealer declined $910 million due to low inventory levels impacting floor plan loans.
As far as corporate banking, you may recall that large companies drew on lines earlier this year to build liquidity buffers in a time of great uncertainty.
This resulted in an increase of nearly $800 million in second quarter average balances.
Corporate banking line utilization has returned to pre-pandemic levels with average balances down nearly $500 million in the third quarter.
General middle market loans declined about $400 million, while deposits increased nearly $2 billion.
Customers have been prudently cutting cost as well as reducing working capital and capex requirements to improve their cash flow in this challenging environment.
For the portfolio as a whole, line utilization decreased to 47% at period end.
On the other hand, with full quarter effect of PPP, loans grew in business banking and the small business segment captured in retail banking.
Also, our Mortgage Banker business, which serves mortgage companies, was at an all time high, increasing over $300 million due to very robust refi and home sale activity.
Loan yields were 3.13%, a decrease of 13 basis points from the second quarter.
Lower rates were the major driver.
One month LIBOR, the rate we are most sensitive to, declined 19 basis points.
This was partly offset by pricing actions we are taking, particularly adding LIBOR floors when possible as loans renew.
A mix shift in balances, including the full quarter impact of lower yielding PPP loans, also had a negative impact on yields.
Deposits increased 7% or $4.5 billion to a new record of $68.8 billion, as shown on Slide 5.
The larger driver continues to be non-interest-bearing deposits and growth has been broad-based with increases in nearly every business line.
As Curt mentioned, customers are conserving and maintaining excess cash balances.
Period end deposits increased over $700 million.
The largest contributor was technology and life sciences as robust fundraising added liquidity and customers reduced cash burn.
With strong deposit growth, our loan-to-deposit ratio decreased to 76%.
The average cost of interest-bearing deposits was 17 basis points, a decrease of nine basis points from the second quarter.
Our prudent management of relationship pricing in this low rate environment, our large proportion of non-interest-bearing deposits as well as the floating rate nature of our wholesale funding drove our total funding cost only 14 basis points for the quarter.
As you can see on Slide 6, we've put some of our excess liquidity to work by increasing the size of the portfolio.
We added $1.75 billion in treasuries and $500 million in mortgage-backed securities.
In addition, we continue to reinvest prepays, which remained elevated at around $1 billion for the quarter.
Yields on recent purchases have been around 140 basis points.
The additional securities combined with lower rates on the replacement of prepays resulted in the yield on the portfolio declining to 2.13%.
Of note, we have not seen a significant impact on the portfolio's duration or the unamortized premium, which remains relatively small.
Turning to Slide 7.
Net interest income declined $13 million to $458 million and the net interest margin was 2.33%, a decline of 17 basis points relative to the second quarter.
The major factors were lower rates, which had a negative impact of $15 million or seven basis points in the margin, and the increase in excess liquidity reduced the margin by nine basis points.
Taking a look at the details.
Interest income on loans declined $26 million and reduced the margin 13 basis points.
Lower interest rates on loans alone had an impact of $21 million and 11 basis points in the margin.
Lower balances had a $14 million impact, and the mix shift in portfolio, including the full quarter of lower yielding PPP loans had a four basis point impact on the margin.
Partly offsetting this were higher loan fees in the margin, primarily PPP-related as well as one additional day in the quarter.
As discussed on the previous slide, we had lower yields and higher balances in our securities portfolio, which together had a $2 million and two basis point negative impact.
Higher deposits of the Fed added $1 million, but had a negative impact of nine basis points on the margin.
Deposit cost declined by $5 million and added three basis points to the margin, primarily a result of a prudent management of deposit pricing, as I previously mentioned.
Finally, with a reduction in balances and lower rates, wholesale funding cost declined by $9 million, adding four basis points to the margin.
We received the full quarter benefit of debt repayments we made in the second quarter, and we prepaid $750 million in FHLB advances in July and August.
As a reminder, given the nature of our portfolio, our loans reprice very quickly.
So the bulk of the impact from lower rates has now been absorbed.
Also, we continue to closely monitor the competitive environment and our liquidity position as we manage deposit pricing.
Overall, credit quality was strong, as shown on Slide 8.
Net charge-offs were $33 million or 26 basis points, including recoveries of $20 million.
Criticized loans remained relatively stable with an increase of only $27 million and comprised 6.5% of the total portfolio.
Non-performing loans remained low at 62 basis points, and the bulk of the $54 million increase in the third quarter was attributed to energy loans.
In summary, we are leveraging our experience and expertise working closely with our customers and carefully reviewing their current and projected financial performance.
We have adjusted risk ratings as appropriate.
We started this cycle from a position of strength with very low non-performing and criticized loans, and migration so far has been manageable.
Turning to Slide 9.
The economy began to improve to the quarter.
However, the path to full recovery remains uncertain due to the unprecedented impacts of the COVID-19 pandemic.
For this reason, our CECL modeling in late third -- in the third quarter did not significantly change and included the recession that we have been experiencing, followed by a slow recovery.
More severe assumptions were used to inform the qualitative adjustments made for certain segments.
This combined with the reduction in loan balances, resulted in a slight decrease in our allowance for credit losses, which remains above $1 billion.
Our credit reserve ratio was 2.14%, excluding PPP loans.
Our credit reserve coverage for NPLs was strong at 3.2 times.
Again, we are well positioned with a relatively high credit reserve and low non-performing assets, as illustrated.
We believe our disciplined underwriting and diverse portfolio are assisting us in managing through this pandemic recession.
Energy loans are outlined on Slide 10.
They decreased $251 million to $1.8 billion at quarter end and represent 3.5% of our total loans.
E&P loans make up nearly 80% of the energy portfolio.
And energy services, which is considered the riskiest segment, was only $46 million.
The allocation of reserves to energy loans remained above 10%.
While non-accrual loans increased, criticized loans decreased $102 million and net charge-offs decreased to $9 million.
Charge-offs are net of $14 million in recoveries, which are unlikely to repeat in the near-term.
Fall redeterminations are just beginning, and we expect a small increase in the borrowing bases as higher energy prices were offset by lower production inventory.
With more than 40 years of serving this industry, we have deep expertise and remain focused on working with our energy customers as they navigate the cycle.
Slide 11 provides detail on segments that we believe pose higher risk in the current environment.
Note, we continue to review the portfolio refining our assessment.
As a result, we have removed casinos and sports franchises from this group as we no longer see elevated risk.
That aside, period end loans in the social distancing segment decreased $145 million or 5%.
As expected, criticized loans increased $102 million, yet remained manageable at 10% of the segment and non-accruals remained very low.
We believe we are well reserved as we have applied a more severe economic forecast to the segment.
We have deep expertise and a long history of working in the cyclical automotive sector.
Production has been ramping back up and auto sales have rebounded.
Similar to the social distancing segment, while loans decreased about $250 million, the criticized portion increased, yet non-accruals decreased and remained low.
Our leverage loans tend to be with middle market relationship-based customers with sponsors, management teams and industries we know well, and we avoid the covenant-light deals.
Balances increased to $85 million and criticized and non-accrual loans were slightly higher.
As far as payment deferrals, they provided a cushion as customers adjusted to the environment.
Now that they've acclimated, initial deferrals have expired, a new request of a nominal.
Total deferrals at September 30 dropped only 70 basis points of total loans.
Non-interest income increased $5 million, as outlined on Slide 12.
Improved economic conditions had a positive impact on deposit service charges and card fees.
Deposit service charges were up $5 million with increased cash management activity.
Also, card fees remained very strong and increased $3 million due to higher consumer volumes and merchant activity spurred by the economic stimulus as well as changes in customer behavior related to COVID.
Commercial lending fees grew with increased syndication activity and unutilized line fees.
As expected, customer derivative income declined following very robust activity in the second quarter, which related to the rapid decline in interest rates and volatile energy prices that have since stabilized.
Derivative income also included a $6 million unfavorable credit valuation adjustment compared to an unfavorable adjustment of $3 million in the second quarter.
Securities trading income decreased $2 million, but remained at an elevated level and reflects fair market adjustments for investments we hold related to our technology and life sciences business.
Similarly, investment banking fees declined, yet continue to be relatively strong.
Deferred comp asset returns were $8 million, a $6 million increase from last quarter, which is offsetting non-interest expenses.
Also, bank-owned life insurance increased with the receipt of the annual dividend.
Turning to expenses on Slide 13.
Salaries and benefits increased $8 million.
This included the increase in deferred comp of $6 million that I just mentioned as well as seasonally higher staff insurance.
A catch up on maintenance projects, which we expect to continue in the fourth quarter as well as seasonal taxes resulted in an increase in occupancy costs.
As previously announced, we increased our charitable contributions to assist businesses and communities impacted by the pandemic.
Since early March, Comerica, together with Comerica Charitable Foundation, has distributed over $9 million to over 150 non-profit and other community service organizations.
Outside processing decreased $4 million, primarily related to lower PPP loan initiation volumes.
In addition, operational losses and legal-related costs declined $3 million.
Our expense discipline is well ingrained in our company and is assisting us in navigating this low rate environment as we invest for the future.
Our capital levels remained strong, increasing to an estimated CET1 of 10.26%, as shown on Slide 14.
We were focused on maintaining our attractive dividend and deploying our capital to drive growth, while we maintain strong capital levels with the CET1 target of 10%.
In addition, the dividend is supported by strong holding company cash.
Slide 15 provides for our outlook for the fourth quarter relative to the third quarter.
We are assuming a continued gradual improvement in GDP and unemployment.
Also, while we do expect to see some modest forgiveness in PPP loans by the end of the year, there is a great deal of uncertainty.
Therefore, we exclude any impact from forgiveness on loans, net interest income and expenses from this outlook.
Starting with loans, we expect National Dealer balances to increase as auto inventory levels begin to rebuild.
Mortgage Banker is expected to decline somewhat from its record high with seasonally lower purchase and refi volumes.
In addition, we believe the recent stabilization of balances that we've seen in certain business lines, such as the middle market, large corporate and energy, should continue.
However, on a quarter-over-quarter basis, average balances in these businesses are expected to be lower.
We expect average deposits to remain strong and stable as customers continue to carefully manage their liquidity.
This expectation includes -- excludes the benefit from any further government stimulus programs.
Overall, net interest income is expected to be relatively stable.
As we've already absorbed the bulk of the effect from the decline in rates, we estimate the net effect of lower rates alone will be $5 million or less.
The impact from reduced loan balances, lower interest rates on loans and lower yields on securities is expected to be mostly offset by additional rate floors on loans, a decrease in deposit rates to an average of 14 basis points, as well as the full quarter benefit of third quarter actions to increase our securities portfolio and reduced wholesale borrowings.
Again, this outlook excludes any benefit from PPP loan forgiveness.
Credit quality is expected to be solid with net charge-offs increasing from the low third quarter level, which did include strong recoveries.
Although the pace of the economic recovery remains uncertain, with our credit reserve at about 2% of loans in the third quarter, we believe we are well positioned to manage through it.
We expect non-interest income to decline as we do not expect the third quarter levels of deferred comp, securities trading income or BOLI to repeat.
We believe several customer-driven fee categories should grow with improving economic conditions.
But this is expected to be offset by card volume decreasing as recent elevated activity receipts.
As far as expenses, we expect a rise in technology costs as we catch up on initiatives that were delayed due to COVID.
We are committed to investing in our futures that we are well positioned coming out of the pandemic.
In addition, we expect an increase related to seasonal staff insurance.
Mostly offsetting these increases, charitable giving should revert to a normal level, and we do not expect the level of deferred comp to repeat.
We continue to focus on controlling expenses as we closely manage discretionary spending.
Finally, our capital levels are healthy, and we remain focused on managing our capital with the goal of providing an attractive return to our shareholders.
I will close with Slide 16.
Over our 170-year history, Comerica has successfully managed through many challenging times.
Using our experience and expertise to help our customers and communities navigate stressful situations and achieve long-term success is at the heart of Comerica's relationship banking strategy.
The unwavering dedication of our team to assist our customers as well as support each other and our communities continues to be a source of pride.
Our long-standing corporate mission is to attain balanced growth and profitability by providing a higher level of banking.
Fundamental to our success in accomplishing this mission is our key strengths, which are outlined here.
We have long-tenured employees who have deep expertise in the industries they serve.
We have a strong presence in the major metropolitan areas of Texas, California and Michigan, and these markets provide significant growth opportunities along with customer diversity.
There are abundant collaboration opportunities among our three divisions; Commercial Banking, Retail Banking and Wealth Management.
Our robust leading-edge cash management suite continues to evolve to meet the ever-changing needs of our customers.
We have a strong credit culture.
Our consistent conservative underwriting approach and prudent customer selection resulted in superior credit performance through the last recession.
It also -- it is also assisting us in weathering the current environment, as evidenced by our strong credit metrics this quarter.
We are committed to maintaining our expense discipline while investing for the future.
Finally, our capital position is strong.
And our first priority is to use it to support growth, while providing an attractive return to our shareholders.
Now we'd be happy to take questions.

user
third quarter 2020 net income of $211 million, $1.44 per share.
qtrly net interest income decreased $13 million to $458 million versus q2.
qtrly provision for credit losses decreased $133 million to $5 million versus q2.
sees q4 net interest income relatively stable versus q3.

assistant