Comerica shares are falling after the company said it received a preliminary notification of non-selection for renewal of its Direct Express federal debit card. The bank is the exclusive issuer of the Direct Express debit card for 4.5M federal benefit recipients as of June 30. “We received a preliminary notification that Comerica Bank has not been selected to continue serving as the Financial Agent to support the program following contract expiration,” Comerica said in earnings call presentation slides. The company said that if the preliminary non-selection of Comerica Bank remains the final disposition, it expects the formal transition plan for managing accounts and deposits to be agreed upon once contract negotiations are finalized with the new provider. Comerica does not currently expect this transition to impact its 2024 deposits, noninterest income or noninterest expenses. Shares of Comerica are down 10%, or $5.64, to $50.66 in midday trading.
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