As we approach the fourth quarter earnings season for regional banks, it's expected that the fundamental trends will be underscored by limited growth in loans and deposits, a slight decline in net interest margins, and stable overall credit trends. Moving past immediate results, the focus is likely to shift towards projections for 2025, which are anticipated to account for the ongoing scenario of sustained higher interest rates. An optimistic stance is maintained on regional bank stocks into 2025, albeit with a cautious note concerning the Federal Reserve's moderating outlook on rate cuts.

In a more normalized environment, the improvement in Comerica's operating metrics is expected to lag behind its peers. Despite potential tailwinds in 2025 stemming from securities repricing and the return of loan growth, challenges in demand deposit accounts during a slower interest rate cutting cycle could continue to impact net interest income negatively.

Considering adjustments in the rate environment and the economic forecast in recent months, there's heightened anticipation about the 2025 projections, influenced by optimism about the incoming U.S. administration. The focus in the near to medium term will likely cover subjects such as the path of deposit betas, net interest margins, and growth potentials. It's noted that the primary adjustments to our models mostly involved refining margin assumptions and adjusting expectations for near-term loan growth.