Comerica (NYSE:CMA) reported second-quarter earnings that beat Wall Street expectations, fueled by broad-based loan growth and stable net interest income, despite ongoing deposit pressures. As a result, shares rose more than 3% intra-day today.

The bank posted net income of $199 million, or $1.42 per share, surpassing the analyst consensus of $1.25. Revenue reached $849 million, exceeding the expected $843.63 million. The results marked a 16% increase in net income from the prior quarter, though earnings declined 3% compared to the same period last year.

Loan growth was a key highlight, with average loans rising by $451 million to $50.7 billion, while period-end loans climbed $1.3 billion to $51.2 billion. Growth was seen across multiple business lines, reflecting stronger customer demand.

Average deposits fell by $653 million to $61.2 billion, but the decline was modest enough for the bank to maintain net interest income at $575 million, flat from the prior quarter and up 8% year-over-year. Net interest margin ticked down slightly to 3.16% from 3.18% in Q1.

CEO Curtis Farmer noted that improved customer sentiment supported loan expansion and helped offset the impact of softer deposit growth.