CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) Comerica Incorporated
and Subsidiaries Three Months Ended ------------------ December 31,
September 30, December 31, (in millions, except per share data)
2009 2009 2008 ------------------------ ---- ---- ---- PER COMMON
SHARE AND COMMON STOCK DATA Diluted net income (loss) $(0.41)
$(0.10) $0.02 Cash dividends declared 0.05 0.05 0.33 Common
shareholders' equity (at period end) 31.82 31.90 33.31 Average
diluted shares (in thousands) 151,516 151,478 150,834
-------------------------- ------- ------- ------- KEY RATIOS
Return on average common shareholders' equity (5.10) % (1.27) %
0.19 % Return on average assets (0.19) 0.12 0.12 Tier 1 common
capital ratio (a) (b) 8.18 8.04 7.08 Tier 1 risk-based capital
ratio (b) 12.46 12.21 10.66 Total risk-based capital ratio (b)
16.93 16.79 14.72 Leverage ratio (b) 13.22 12.46 11.77 Tangible
common equity ratio (a) 7.99 7.96 7.21 ---------------------- ----
---- ---- AVERAGE BALANCES Commercial loans $21,971 $23,401 $28,507
Real estate construction loans 3,703 4,033 4,536 Commercial
mortgage loans 10,393 10,359 10,613 Residential mortgage loans
1,664 1,720 1,851 Consumer loans 2,517 2,550 2,639 Lease financing
1,181 1,218 1,359 International loans 1,324 1,501 1,833 ----- -----
----- Total loans 42,753 44,782 51,338 Earning assets 53,953 57,513
61,134 Total assets 58,396 61,948 65,981 Noninterest-bearing
deposits 14,430 13,225 10,575 Interest-bearing core deposits 22,312
22,582 22,523 Total core deposits 36,742 35,807 33,098 Common
shareholders' equity 4,876 4,923 5,206 Total shareholders' equity
7,024 7,065 6,301 -------------------------- ----- ----- ----- NET
INTEREST INCOME Net interest income (fully taxable equivalent
basis) (c) $398 $387 $434 Fully taxable equivalent adjustment 2 2 3
Net interest margin (c) (d) 2.94 % 2.68 % 2.82 %
----------------------- ---- ---- ---- CREDIT QUALITY Nonaccrual
loans $1,163 $1,194 $917 Reduced-rate loans 18 2 - --- --- ---
Total nonperforming loans 1,181 1,196 917 Foreclosed property 111
109 66 --- --- --- Total nonperforming assets 1,292 1,305 983 Loans
past due 90 days or more and still accruing 101 161 125 Gross loan
charge-offs 233 245 144 Loan recoveries 8 6 11 --- --- --- Net loan
charge-offs 225 239 133 Lending-related commitment charge-offs - -
- --- --- --- Total net credit-related charge-offs 225 239 133
Allowance for loan losses 985 953 770 Allowance for credit losses
on lending- related commitments 37 35 38 --- --- --- Total
allowance for credit losses 1,022 988 808 Allowance for loan losses
as a percentage of total loans 2.34 % 2.19 % 1.52 % Net loan
charge-offs as a percentage of average total loans 2.10 2.14 1.04
Net credit-related charge-offs as a percentage of average total
loans 2.10 2.14 1.04 Nonperforming assets as a percentage of total
loans and foreclosed property 3.06 2.99 1.94 Allowance for loan
losses as a percentage of total nonperforming loans 83 80 84
------------------------- --- --- --- Years Ended -----------
December 31, (in millions, except per share data) 2009 2008
------------------------------------ ---- ---- PER COMMON SHARE AND
COMMON STOCK DATA Diluted net income (loss) $(0.77) $1.29 Cash
dividends declared 0.20 2.31 Common shareholders' equity (at period
end) Average diluted shares (in thousands) 151,460 151,035
------------------------------------- ------- ------- KEY RATIOS
Return on average common shareholders' equity (2.37) % 3.79 %
Return on average assets 0.03 0.33 Tier 1 common capital ratio (a)
(b) Tier 1 risk-based capital ratio (b) Total risk-based capital
ratio (b) Leverage ratio (b) Tangible common equity ratio (a)
-------------------------------- AVERAGE BALANCES Commercial loans
$24,534 $28,870 Real estate construction loans 4,140 4,715
Commercial mortgage loans 10,415 10,411 Residential mortgage loans
1,756 1,886 Consumer loans 2,553 2,559 Lease financing 1,231 1,356
International loans 1,533 1,968 ----- ----- Total loans 46,162
51,765 Earning assets 58,162 60,422 Total assets 62,809 65,185
Noninterest-bearing deposits 12,900 10,623 Interest-bearing core
deposits 22,435 23,739 Total core deposits 35,335 34,362 Common
shareholders' equity 4,959 5,166 Total shareholders' equity 7,099
5,442 -------------------------- ----- ----- NET INTEREST INCOME
Net interest income (fully taxable equivalent basis) (c) $1,575
$1,821 Fully taxable equivalent adjustment 8 6 Net interest margin
(c) (d) 2.72 % 3.02 % --------------------------- ---- ---- CREDIT
QUALITY Nonaccrual loans Reduced-rate loans Total nonperforming
loans Foreclosed property Total nonperforming assets Loans past due
90 days or more and still accruing Gross loan charge-offs $896 $500
Loan recoveries 27 29 --- --- Net loan charge-offs 869 471
Lending-related commitment charge-offs - 1 --- --- Total net
credit-related charge-offs 869 472 Allowance for loan losses
Allowance for credit losses on lending- related commitments Total
allowance for credit losses Allowance for loan losses as a
percentage of total loans Net loan charge-offs as a percentage of
average total loans 1.88 % 0.91 % Net credit-related charge-offs as
a percentage of average total loans 1.88 0.91 Nonperforming assets
as a percentage of total loans and foreclosed property Allowance
for loan losses as a percentage of total nonperforming loans
----------------------------------------- (a) See Reconciliation of
Non-GAAP Financial Measures. (b) December 31, 2009 ratios are
estimated (c) Year-to-date 2008 net interest income declined $38
million due to tax-related non-cash lease income charges. Excluding
these charges, the net interest margin would have been 3.08% for
the year ended December 31, 2008. (d) Excess liquidity, represented
by average balances deposited with the Federal Reserve Bank,
reduced the net interest margin by 13 basis points, 16 basis points
and 11 basis points in the fourth quarter 2009, third quarter 2009
and full-year 2009, respectively. Excluding excess liquidity, the
net interest margin would have been 3.07%, 2.84% and 2.83% in each
respective period. Excess liquidity reduced the net interest margin
by 3 basis points and one basis point in the fourth quarter 2008
and full-year 2008, respectively. CONSOLIDATED BALANCE SHEETS
(unaudited) Comerica Incorporated and Subsidiaries December 31,
September 30, (in millions, except share data) 2009 2009
-------------------------------- ---- ---- ASSETS Cash and due from
banks $774 $799 Federal funds sold and securities purchased under
agreements to resell - - Interest-bearing deposits with banks 4,843
2,219 Other short-term investments 138 142 Investment securities
available-for-sale 7,416 8,882 Commercial loans 21,690 22,546 Real
estate construction loans 3,461 3,870 Commercial mortgage loans
10,457 10,380 Residential mortgage loans 1,651 1,679 Consumer loans
2,511 2,544 Lease financing 1,139 1,197 International loans 1,252
1,355 ------------------- ----- ----- Total loans 42,161 43,571
Less allowance for loan losses (985) (953)
------------------------------ ---- ---- Net loans 41,176 42,618
Premises and equipment 644 657 Customers' liability on acceptances
outstanding 11 12 Accrued income and other assets 4,261 4,261
------------------------------- ----- ----- Total assets $59,263
$59,590 ------------ ------- ------- LIABILITIES AND SHAREHOLDERS'
EQUITY Noninterest-bearing deposits $15,871 $13,888 Money market
and NOW deposits 14,450 13,556 Savings deposits 1,342 1,331
Customer certificates of deposit 6,413 7,466 Other time deposits
1,047 2,801 Foreign office time deposits 542 572
---------------------------- --- --- Total interest-bearing
deposits 23,794 25,726 ------------------------------- ------
------ Total deposits 39,665 39,614 Short-term borrowings 462 425
Acceptances outstanding 11 12 Accrued expenses and other
liabilities 1,036 1,252 Medium- and long-term debt 11,060 11,252
-------------------------- ------ ------ Total liabilities 52,234
52,555 Fixed rate cumulative perpetual preferred stock, series F,
no par value, $1,000 liquidation value per share: Authorized -
2,250,000 shares Issued -2,250,000 shares at 12/31/09, 9/30/09 and
12/31/08 2,151 2,145 Common stock - $5 par value: Authorized -
325,000,000 shares Issued -178,735,252 shares at 12/31/09, 9/30/09
and 12/31/08 894 894 Capital surplus 740 738 Accumulated other
comprehensive loss (336) (361) Retained earnings 5,161 5,205 Less
cost of common stock in treasury - 27,555,623 shares at 12/31/09,
27,620,576 shares at 9/30/09 and 28,244,967 shares at 12/31/08
(1,581) (1,586) ----------------------------------- ------ ------
Total shareholders' equity 7,029 7,035 --------------------------
----- ----- Total liabilities and shareholders' equity $59,263
$59,590 ------------------------------------------ ------- -------
December 31, (in millions, except share data) 2008
-------------------------------- ---- ASSETS Cash and due from
banks $913 Federal funds sold and securities purchased under
agreements to resell 202 Interest-bearing deposits with banks 2,308
Other short-term investments 158 Investment securities
available-for-sale 9,201 Commercial loans 27,999 Real estate
construction loans 4,477 Commercial mortgage loans 10,489
Residential mortgage loans 1,852 Consumer loans 2,592 Lease
financing 1,343 International loans 1,753 ------------------- -----
Total loans 50,505 Less allowance for loan losses (770)
------------------------------ ---- Net loans 49,735 Premises and
equipment 683 Customers' liability on acceptances outstanding 14
Accrued income and other assets 4,334
------------------------------- ----- Total assets $67,548
------------ ------- LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $11,701 Money market and NOW deposits
12,437 Savings deposits 1,247 Customer certificates of deposit
8,807 Other time deposits 7,293 Foreign office time deposits 470
---------------------------- --- Total interest-bearing deposits
30,254 ------------------------------- ------ Total deposits 41,955
Short-term borrowings 1,749 Acceptances outstanding 14 Accrued
expenses and other liabilities 1,625 Medium- and long-term debt
15,053 -------------------------- ------ Total liabilities 60,396
Fixed rate cumulative perpetual preferred stock, series F, no par
value, $1,000 liquidation value per share: Authorized - 2,250,000
shares Issued -2,250,000 shares at 12/31/09, 9/30/09 and 12/31/08
2,129 Common stock - $5 par value: Authorized - 325,000,000 shares
Issued -178,735,252 shares at 12/31/09, 9/30/09 and 12/31/08 894
Capital surplus 722 Accumulated other comprehensive loss (309)
Retained earnings 5,345 Less cost of common stock in treasury
-27,555,623 shares at 12/31/09, 27,620,576 shares at 9/30/09 and
28,244,967 shares at 12/31/08 (1,629)
-------------------------------------------- ------ Total
shareholders' equity 7,152 -------------------------- ----- Total
liabilities and shareholders' equity $67,548
------------------------------------------ ------- CONSOLIDATED
STATEMENTS OF INCOME (unaudited) Comerica Incorporated and
Subsidiaries Three Months Ended December 31, ------------ (in
millions, except per share data) 2009 2008
------------------------------------ ---- ---- INTEREST INCOME
Interest and fees on loans $424 $612 Interest on investment
securities 53 101 Interest on short-term investments 2 3
---------------------------------- --- --- Total interest income
479 716 INTEREST EXPENSE Interest on deposits 52 158 Interest on
short-term borrowings - 9 Interest on medium- and long-term debt 31
118 -------------------------------------- --- --- Total interest
expense 83 285 ---------------------- --- --- Net interest income
396 431 Provision for loan losses 257 192 -------------------------
--- --- Net interest income after provision for loan losses 139 239
NONINTEREST INCOME Service charges on deposit accounts 56 55
Fiduciary income 38 47 Commercial lending fees 21 16 Letter of
credit fees 19 17 Card fees 14 13 Foreign exchange income 11 7
Bank-owned life insurance 9 9 Brokerage fees 7 12 Net securities
gains 10 4 Other noninterest income 29 (6) ------------------------
--- --- Total noninterest income 214 174 NONINTEREST EXPENSES
Salaries 174 187 Employee benefits 51 53 ----------------- --- ---
Total salaries and employee benefits 225 240 Net occupancy expense
43 42 Equipment expense 16 16 Outside processing fee expense 23 27
FDIC insurance expense 15 7 Software expense 23 19 Other real
estate expense 22 5 Legal fees 12 10 Litigation and operational
losses 3 3 Customer services 2 2 Provision for credit losses on
lending- related commitments 2 (2) Other noninterest expenses 38 42
-------------------------- --- --- Total noninterest expenses 424
411 -------------------------- --- --- Income (loss) from
continuing operations before income taxes (71) 2 Provision
(benefit) for income taxes (42) (17)
------------------------------------ --- --- Income (loss) from
continuing operations (29) 19 Income from discontinued operations,
net of tax - 1 ---------------------------------------- --- --- NET
INCOME (LOSS) (29) 20 Preferred stock dividends 33 17
------------------------- --- --- Net income (loss) applicable to
common stock $(62) $3 -------------------------------------- ----
--- Basic earnings per common share: Income (loss) from continuing
operations $(0.41) $0.01 Net income (loss) (0.41) 0.02 Diluted
earnings per common share: Income (loss) from continuing operations
(0.41) 0.01 Net income (loss) (0.41) 0.02 Cash dividends declared
on common stock 8 50 Cash dividends declared per common share 0.05
0.33 ---------------------------------------- ---- ---- Years Ended
December 31, ------------ (in millions, except per share data) 2009
2008 ------------------------------------ ---- ---- INTEREST INCOME
Interest and fees on loans $1,767 $2,649 Interest on investment
securities 329 389 Interest on short-term investments 9 13
---------------------------------- --- --- Total interest income
2,105 3,051 INTEREST EXPENSE Interest on deposits 372 734 Interest
on short-term borrowings 2 87 Interest on medium- and long-term
debt 164 415 -------------------------------------- --- --- Total
interest expense 538 1,236 ---------------------- --- ----- Net
interest income 1,567 1,815 Provision for loan losses 1,083 686
------------------------- ----- --- Net interest income after
provision for loan losses 484 1,129 NONINTEREST INCOME Service
charges on deposit accounts 228 229 Fiduciary income 161 199
Commercial lending fees 79 69 Letter of credit fees 69 69 Card fees
51 58 Foreign exchange income 41 40 Bank-owned life insurance 35 38
Brokerage fees 31 42 Net securities gains 243 67 Other noninterest
income 112 82 ------------------------ --- --- Total noninterest
income 1,050 893 NONINTEREST EXPENSES Salaries 687 781 Employee
benefits 210 194 ----------------- --- --- Total salaries and
employee benefits 897 975 Net occupancy expense 162 156 Equipment
expense 62 62 Outside processing fee expense 97 104 FDIC insurance
expense 90 16 Software expense 84 76 Other real estate expense 48
10 Legal fees 37 29 Litigation and operational losses 10 103
Customer services 4 13 Provision for credit losses on lending-
related commitments (1) 18 Other noninterest expenses 159 189
-------------------------- --- --- Total noninterest expenses 1,649
1,751 -------------------------- ----- ----- Income (loss) from
continuing operations before income taxes (115) 271 Provision
(benefit) for income taxes (131) 59
------------------------------------ ---- --- Income (loss) from
continuing operations 16 212 Income from discontinued operations,
net of tax 1 1 ---------------------------------------- --- --- NET
INCOME (LOSS) 17 213 Preferred stock dividends 134 17
------------------------- --- --- Net income (loss) applicable to
common stock $(117) $196 --------------------------------------
----- ---- Basic earnings per common share: Income (loss) from
continuing operations $(0.78) $1.29 Net income (loss) (0.77) 1.30
Diluted earnings per common share: Income (loss) from continuing
operations (0.78) 1.29 Net income (loss) (0.77) 1.29 Cash dividends
declared on common stock 30 348 Cash dividends declared per common
share 0.20 2.31 ---------------------------------------- ---- ----
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) Comerica
Incorporated and Subsidiaries Fourth Third Second Quarter Quarter
Quarter (in millions, except per share data) 2009 2009 2009
------------------------ ---- ---- ---- INTEREST INCOME Interest
and fees on loans $424 $444 $447 Interest on investment securities
53 64 103 Interest on short-term investments 2 3 2
---------------------- --- --- --- Total interest income 479 511
552 INTEREST EXPENSE Interest on deposits 52 89 106 Interest on
short-term borrowings - - - Interest on medium- and long-term debt
31 37 44 ----------------------- --- --- --- Total interest expense
83 126 150 ---------------------- --- --- --- Net interest income
396 385 402 Provision for loan losses 257 311 312
------------------------- --- --- --- Net interest income after
provision for loan losses 139 74 90 NONINTEREST INCOME Service
charges on deposit accounts 56 59 55 Fiduciary income 38 40 41
Commercial lending fees 21 21 19 Letter of credit fees 19 18 16
Card fees 14 13 12 Foreign exchange income 11 10 11 Bank-owned life
insurance 9 8 10 Brokerage fees 7 7 8 Net securities gains 10 107
113 Other noninterest income 29 32 13 ------------------------ ---
--- --- Total noninterest income 214 315 298 NONINTEREST EXPENSES
Salaries 174 171 171 Employee benefits 51 51 53 -----------------
--- --- --- Total salaries and employee benefits 225 222 224 Net
occupancy expense 43 40 38 Equipment expense 16 15 15 Outside
processing fee expense 23 24 25 FDIC insurance expense 15 15 45
Software expense 23 21 20 Other real estate expense 22 10 9 Legal
fees 12 8 10 Litigation and operational losses 3 3 2 Customer
services 2 1 1 Provision for credit losses on lending-related
commitments 2 2 (4) Other noninterest expenses 38 38 44
-------------------------- --- --- --- Total noninterest expenses
424 399 429 -------------------------- --- --- --- Income (loss)
from continuing operations before income taxes (71) (10) (41)
Provision (benefit) for income taxes (42) (29) (59)
----------------------- --- --- --- Income (loss) from continuing
operations (29) 19 18 Income from discontinued operations, net of
tax - - - ------------------------ --- --- --- NET INCOME (LOSS)
(29) 19 18 Preferred stock dividends 33 34 34
------------------------- --- --- --- Net income (loss) applicable
to common stock $(62) $(15) $(16) --------------------------- ----
---- ---- Basic earnings per common share: Income (loss) from
continuing operations $(0.41) $(0.10) $(0.11) Net income (loss)
(0.41) (0.10) (0.10) Diluted earnings per common share: Income
(loss) from continuing operations (0.41) (0.10) (0.11) Net income
(loss) (0.41) (0.10) (0.10) Cash dividends declared on common stock
8 7 8 Cash dividends declared per common share 0.05 0.05 0.05
--------------------------- ---- ---- ---- N/M - Not meaningful
First Fourth Quarter Quarter (in millions, except per share data)
2009 2008 ------------------------------------ ---- ---- INTEREST
INCOME Interest and fees on loans $452 $612 Interest on investment
securities 109 101 Interest on short-term investments 2 3
---------------------------------- --- --- Total interest income
563 716 INTEREST EXPENSE Interest on deposits 125 158 Interest on
short-term borrowings 2 9 Interest on medium- and long-term debt 52
118 -------------------------------------- --- --- Total interest
expense 179 285 ---------------------- --- --- Net interest income
384 431 Provision for loan losses 203 192 -------------------------
--- --- Net interest income after provision for loan losses 181 239
NONINTEREST INCOME Service charges on deposit accounts 58 55
Fiduciary income 42 47 Commercial lending fees 18 16 Letter of
credit fees 16 17 Card fees 12 13 Foreign exchange income 9 7
Bank-owned life insurance 8 9 Brokerage fees 9 12 Net securities
gains 13 4 Other noninterest income 38 (6) ------------------------
--- --- Total noninterest income 223 174 NONINTEREST EXPENSES
Salaries 171 187 Employee benefits 55 53 ----------------- --- ---
Total salaries and employee benefits 226 240 Net occupancy expense
41 42 Equipment expense 16 16 Outside processing fee expense 25 27
FDIC insurance expense 15 7 Software expense 20 19 Other real
estate expense 7 5 Legal fees 7 10 Litigation and operational
losses 2 3 Customer services - 2 Provision for credit losses on
lending- related commitments (1) (2) Other noninterest expenses 39
42 -------------------------- --- --- Total noninterest expenses
397 411 -------------------------- --- --- Income (loss) from
continuing operations before income taxes 7 2 Provision (benefit)
for income taxes (1) (17) ------------------------------------ ---
--- Income (loss) from continuing operations 8 19 Income from
discontinued operations, net of tax 1 1
---------------------------------------- --- --- NET INCOME (LOSS)
9 20 Preferred stock dividends 33 17 ------------------------- ---
--- Net income (loss) applicable to common stock $(24) $3
-------------------------------------- ---- --- Basic earnings per
common share: Income (loss) from continuing operations $(0.16)
$0.01 Net income (loss) (0.16) 0.02 Diluted earnings per common
share: Income (loss) from continuing operations (0.16) 0.01 Net
income (loss) (0.16) 0.02 Cash dividends declared on common stock 7
50 Cash dividends declared per common share 0.05 0.33
---------------------------------------- ---- ---- N/M - Not
meaningful Fourth Quarter 2009 ------------------- Compared To:
------------ Third Quarter 2009 (in millions, except per share
data) Amount Percent ------------------------------------ ------
------- INTEREST INCOME Interest and fees on loans $(20) (4) %
Interest on investment securities (11) (18) Interest on short-term
investments (1) (25) ---------------------------------- --- ---
Total interest income (32) (6) INTEREST EXPENSE Interest on
deposits (37) (43) Interest on short-term borrowings - (63)
Interest on medium- and long-term debt (6) (15)
-------------------------------------- --- --- Total interest
expense (43) (34) ---------------------- --- --- Net interest
income 11 3 Provision for loan losses (54) (17)
------------------------- --- --- Net interest income after
provision for loan losses 65 89 NONINTEREST INCOME Service charges
on deposit accounts (3) (6) Fiduciary income (2) (2) Commercial
lending fees - 3 Letter of credit fees 1 6 Card fees 1 3 Foreign
exchange income 1 - Bank-owned life insurance 1 10 Brokerage fees -
(8) Net securities gains (97) (90) Other noninterest income (3) (7)
------------------------ --- --- Total noninterest income (101)
(32) NONINTEREST EXPENSES Salaries 3 2 Employee benefits - 2
----------------- --- --- Total salaries and employee benefits 3 2
Net occupancy expense 3 6 Equipment expense 1 3 Outside processing
fee expense (1) (6) FDIC insurance expense - - Software expense 2 8
Other real estate expense 12 N/M Legal fees 4 41 Litigation and
operational losses - (27) Customer services 1 31 Provision for
credit losses on lending- related commitments - (19) Other
noninterest expenses - 13 -------------------------- --- --- Total
noninterest expenses 25 6 -------------------------- --- --- Income
(loss) from continuing operations before income taxes (61) N/M
Provision (benefit) for income taxes (13) (48)
------------------------------------ --- --- Income (loss) from
continuing operations (48) N/M Income from discontinued operations,
net of tax - N/M ---------------------------------------- --- ---
NET INCOME (LOSS) (48) N/M Preferred stock dividends (1) -
------------------------- --- --- Net income (loss) applicable to
common stock $(47) N/M % --------------------------------------
---- --- --- Basic earnings per common share: Income (loss) from
continuing operations $(0.31) N/M % Net income (loss) (0.31) N/M
Diluted earnings per common share: Income (loss) from continuing
operations (0.31) N/M Net income (loss) (0.31) N/M Cash dividends
declared on common stock 1 2 Cash dividends declared per common
share - - ---------------------------------------- --- --- N/M -
Not meaningful Fourth Quarter 2009 ------------------- Compared To:
------------ Fourth Quarter 2008 (in millions, except per share
data) Amount Percent ------------------------------------ ------
------- INTEREST INCOME Interest and fees on loans $(188) (31) %
Interest on investment securities (48) (48) Interest on short-term
investments (1) (21) ---------------------------------- --- ---
Total interest income (237) (33) INTEREST EXPENSE Interest on
deposits (106) (68) Interest on short-term borrowings (9) (99)
Interest on medium- and long-term debt (87) (74)
-------------------------------------- --- --- Total interest
expense (202) (71) ---------------------- ---- --- Net interest
income (35) (8) Provision for loan losses 65 34
------------------------- --- --- Net interest income after
provision for loan losses (100) (41) NONINTEREST INCOME Service
charges on deposit accounts 1 1 Fiduciary income (9) (18)
Commercial lending fees 5 33 Letter of credit fees 2 8 Card fees 1
2 Foreign exchange income 4 38 Bank-owned life insurance - 3
Brokerage fees (5) (40) Net securities gains 6 N/M Other
noninterest income 35 N/M ------------------------ --- -- Total
noninterest income 40 23 NONINTEREST EXPENSES Salaries (13) (7)
Employee benefits (2) (3) ----------------- --- --- Total salaries
and employee benefits (15) (6) Net occupancy expense 1 2 Equipment
expense - (5) Outside processing fee expense (4) (17) FDIC
insurance expense 8 N/M Software expense 4 18 Other real estate
expense 17 N/M Legal fees 2 24 Litigation and operational losses -
5 Customer services - (27) Provision for credit losses on lending-
related commitments 4 N/M Other noninterest expenses (4) (5)
-------------------------- --- --- Total noninterest expenses 13 3
-------------------------- --- --- Income (loss) from continuing
operations before income taxes (73) N/M Provision (benefit) for
income taxes (25) N/M ------------------------------------ --- --
Income (loss) from continuing operations (48) N/M Income from
discontinued operations, net of tax (1) (92)
---------------------------------------- --- --- NET INCOME (LOSS)
(49) N/M Preferred stock dividends 16 95 -------------------------
--- --- Net income (loss) applicable to common stock $(65) N/M %
-------------------------------------- ---- --- --- Basic earnings
per common share: Income (loss) from continuing operations $(0.42)
N/M % Net income (loss) (0.43) N/M Diluted earnings per common
share: Income (loss) from continuing operations (0.42) N/M Net
income (loss) (0.43) N/M Cash dividends declared on common stock
(42) (85) Cash dividends declared per common share (0.28) (85)
---------------------------------------- ----- --- N/M - Not
meaningful ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries 2009 ---- (in millions) 4th
Qtr 3rd Qtr ------------- ------- ------- Balance at beginning of
period $953 $880 Loan charge-offs: Commercial 114 113 Real estate
construction: Commercial Real Estate business line (a) 33 63 Other
business lines (b) - 1 ------------------------ --- --- Total real
estate construction 33 64 Commercial mortgage: Commercial Real
Estate business line (a) 27 24 Other business lines (b) 25 15
------------------------ --- --- Total commercial mortgage 52 39
Residential mortgage 6 11 Consumer 9 7 Lease financing 6 6
International 13 5 ------------- --- --- Total loan charge-offs 233
245 Recoveries on loans previously charged-off: Commercial 7 3 Real
estate construction - 1 Commercial mortgage 1 - Residential
mortgage - - Consumer - 1 Lease financing - - International - 1
------------- --- --- Total recoveries 8 6 ---------------- --- ---
Net loan charge-offs 225 239 Provision for loan losses 257 311
Foreign currency translation adjustment - 1
--------------------------------------- --- --- Balance at end of
period $985 $953 ------------------------ ---- ---- Allowance for
loan losses as a percentage of total loans 2.34 % 2.19 % Net loan
charge-offs as a percentage of average total loans 2.10 2.14 Net
credit-related charge-offs as a percentage of average total loans
2.10 2.14 ----------------------------------- ---- ---- 2009 ----
(in millions) 2nd Qtr 1st Qtr ------------- ------- ------- Balance
at beginning of period $816 $770 Loan charge-offs: Commercial 88 61
Real estate construction: Commercial Real Estate business line (a)
81 57 Other business lines (b) - - ------------------------ --- ---
Total real estate construction 81 57 Commercial mortgage:
Commercial Real Estate business line (a) 23 16 Other business lines
(b) 23 18 ------------------------ --- --- Total commercial
mortgage 46 34 Residential mortgage 2 2 Consumer 12 6 Lease
financing 24 - International 4 1 ------------- --- --- Total loan
charge-offs 257 161 Recoveries on loans previously charged-off:
Commercial 5 3 Real estate construction - - Commercial mortgage 2 -
Residential mortgage - - Consumer - 1 Lease financing 1 -
International 1 - ------------- --- --- Total recoveries 9 4
---------------- --- --- Net loan charge-offs 248 157 Provision for
loan losses 312 203 Foreign currency translation adjustment - -
--------------------------------------- --- --- Balance at end of
period $880 $816 ------------------------ ---- ---- Allowance for
loan losses as a percentage of total loans 1.89 % 1.68 % Net loan
charge-offs as a percentage of average total loans 2.08 1.26 Net
credit-related charge-offs as a percentage of average total loans
2.08 1.26 ----------------------------------- ---- ---- 2008 ----
(in millions) 4th Qtr ------------- ------- Balance at beginning of
period $712 Loan charge-offs: Commercial 66 Real estate
construction: Commercial Real Estate business line (a) 35 Other
business lines (b) - ------------------------ --- Total real estate
construction 35 Commercial mortgage: Commercial Real Estate
business line (a) 21 Other business lines (b) 8
------------------------ --- Total commercial mortgage 29
Residential mortgage 5 Consumer 7 Lease financing 1 International 1
------------- --- Total loan charge-offs 144 Recoveries on loans
previously charged-off: Commercial 6 Real estate construction 1
Commercial mortgage 2 Residential mortgage - Consumer 1 Lease
financing - International 1 ------------- --- Total recoveries 11
---------------- --- Net loan charge-offs 133 Provision for loan
losses 192 Foreign currency translation adjustment (1)
--------------------------------------- --- Balance at end of
period $770 ------------------------ ---- Allowance for loan losses
as a percentage of total loans 1.52 % Net loan charge-offs as a
percentage of average total loans 1.04 Net credit-related
charge-offs as a percentage of average total loans 1.04
----------------------------------- ---- (a) Primarily charge-offs
of loans to real estate investors and developers. (b) Primarily
charge-offs of loans secured by owner-occupied real estate.
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED
COMMITMENTS (unaudited) Comerica Incorporated and Subsidiaries 2009
---- (in millions) 4th Qtr 3rd Qtr ------------- ------- -------
Balance at beginning of period $35 $33 Less: Charge-offs on
lending-related commitments (a) - - Add: Provision for credit
losses on lending- related commitments 2 2
-------------------------------------------- --- --- Balance at end
of period $37 $35 ------------------------ --- --- Unfunded
lending-related commitments sold $- $1
----------------------------------------- --- --- 2009 ---- (in
millions) 2nd Qtr 1st Qtr ------------- ------- ------- Balance at
beginning of period $37 $38 Less: Charge-offs on lending-related
commitments (a) - - Add: Provision for credit losses on lending-
related commitments (4) (1)
-------------------------------------------- --- --- Balance at end
of period $33 $37 ------------------------ --- --- Unfunded
lending-related commitments sold $- $-
----------------------------------------- --- --- 2008 ---- (in
millions) 4th Qtr ------------- ------- Balance at beginning of
period $40 Less: Charge-offs on lending-related commitments (a) -
Add: Provision for credit losses on lending- related commitments
(2) -------------------------------------------- --- Balance at end
of period $38 ------------------------ --- Unfunded lending-related
commitments sold $- ----------------------------------------- ---
(a) Charge-offs result from the sale of unfunded lending-related
commitments. NONPERFORMING ASSETS (unaudited) Comerica Incorporated
and Subsidiaries 2009 ---- (in millions) 4th Qtr 3rd Qtr
------------- ------- ------- SUMMARY OF NONPERFORMING ASSETS AND
PAST DUE LOANS Nonaccrual loans: Commercial $238 $290 Real estate
construction: Commercial Real Estate business line (a) 507 542
Other business lines (b) 4 4 ------------------------ --- --- Total
real estate construction 511 546 Commercial mortgage: Commercial
Real Estate business line (a) 127 137 Other business lines (b) 192
161 ------------------------ --- --- Total commercial mortgage 319
298 Residential mortgage 48 27 Consumer 12 8 Lease financing 13 18
International 22 7 ------------- --- --- Total nonaccrual loans
1,163 1,194 Reduced-rate loans 18 2 ------------------ --- ---
Total nonperforming loans 1,181 1,196 Foreclosed property 111 109
------------------- --- --- Total nonperforming assets $1,292
$1,305 -------------------------- ------ ------ Nonperforming loans
as a percentage of total loans 2.80 % 2.74 % Nonperforming assets
as a percentage of total loans and foreclosed property 3.06 2.99
Allowance for loan losses as a percentage of total nonperforming
loans 83 80 Loans past due 90 days or more and still accruing $101
$161 ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at beginning of
period $1,194 $1,130 Loans transferred to nonaccrual (c) 266 361
Nonaccrual business loan gross charge- offs (d) (218) (226) Loans
transferred to accrual status (c) - (4) Nonaccrual business loans
sold (e) (10) (41) Payments/Other (f) (69) (26) ------------------
--- --- Nonaccrual loans at end of period $1,163 $1,194
--------------------------------- ------ ------ (a) Primarily loans
to real estate investors and developers. (b) Primarily loans
secured by owner- occupied real estate. (c) Based on an analysis of
nonaccrual loans with book balances greater than $2 million. (d)
Analysis of gross loan charge- offs: Nonaccrual business loans $218
$226 Performing watch list loans - 1 Consumer and residential
mortgage loans 15 18 --- --- Total gross loan charge-offs $233 $245
---- ---- (e) Analysis of loans sold: Nonaccrual business loans $10
$41 Performing watch list loans 1 24 --- --- Total loans sold $11
$65 --- --- 2009 ---- (in millions) 2nd Qtr 1st Qtr -------------
------- ------- SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans: Commercial $327 $258 Real estate construction:
Commercial Real Estate business line (a) 472 426 Other business
lines (b) 4 5 ------------------------ --- --- Total real estate
construction 476 431 Commercial mortgage: Commercial Real Estate
business line (a) 134 131 Other business lines (b) 175 138
------------------------ --- --- Total commercial mortgage 309 269
Residential mortgage 7 8 Consumer 7 8 Lease financing - 2
International 4 6 ------------- --- --- Total nonaccrual loans
1,130 982 Reduced-rate loans - - ------------------ --- --- Total
nonperforming loans 1,130 982 Foreclosed property 100 91
------------------- --- --- Total nonperforming assets $1,230
$1,073 -------------------------- ------ ------ Nonperforming loans
as a percentage of total loans 2.43 % 2.02 % Nonperforming assets
as a percentage of total loans and foreclosed property 2.64 2.20
Allowance for loan losses as a percentage of total nonperforming
loans 78 83 Loans past due 90 days or more and still accruing $210
$207 ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at beginning of
period $982 $917 Loans transferred to nonaccrual (c) 419 241
Nonaccrual business loan gross charge- offs (d) (242) (153) Loans
transferred to accrual status (c) - (4) Nonaccrual business loans
sold (e) (10) (3) Payments/Other (f) (19) (16) ------------------
--- --- Nonaccrual loans at end of period $1,130 $982
--------------------------------- ------ ---- (a) Primarily loans
to real estate investors and developers. (b) Primarily loans
secured by owner- occupied real estate. (c) Based on an analysis of
nonaccrual loans with book balances greater than $2 million. (d)
Analysis of gross loan charge- offs: Nonaccrual business loans $242
$153 Performing watch list loans 1 - Consumer and residential
mortgage loans 14 8 --- --- Total gross loan charge-offs $257 $161
---- ---- (e) Analysis of loans sold: Nonaccrual business loans $10
$3 Performing watch list loans 6 - --- --- Total loans sold $16 $3
--- --- 2008 ---- (in millions) 4th Qtr ------------- -------
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS Nonaccrual
loans: Commercial $205 Real estate construction: Commercial Real
Estate business line (a) 429 Other business lines (b) 5
------------------------ --- Total real estate construction 434
Commercial mortgage: Commercial Real Estate business line (a) 132
Other business lines (b) 130 ------------------------ --- Total
commercial mortgage 262 Residential mortgage 7 Consumer 6 Lease
financing 1 International 2 ------------- --- Total nonaccrual
loans 917 Reduced-rate loans - ------------------ --- Total
nonperforming loans 917 Foreclosed property 66 -------------------
--- Total nonperforming assets $983 -------------------------- ----
Nonperforming loans as a percentage of total loans 1.82 %
Nonperforming assets as a percentage of total loans and foreclosed
property 1.94 Allowance for loan losses as a percentage of total
nonperforming loans 84 Loans past due 90 days or more and still
accruing $125 ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at
beginning of period $863 Loans transferred to nonaccrual (c) 258
Nonaccrual business loan gross charge- offs (d) (132) Loans
transferred to accrual status (c) (11) Nonaccrual business loans
sold (e) (14) Payments/Other (f) (47) ------------------ ---
Nonaccrual loans at end of period $917
--------------------------------- ---- (a) Primarily loans to real
estate investors and developers. (b) Primarily loans secured by
owner- occupied real estate. (c) Based on an analysis of nonaccrual
loans with book balances greater than $2 million. (d) Analysis of
gross loan charge- offs: Nonaccrual business loans $132 Performing
watch list loans - Consumer and residential mortgage loans 12 ---
Total gross loan charge-offs $144 ---- (e) Analysis of loans sold:
Nonaccrual business loans $14 Performing watch list loans - ---
Total loans sold $14 --- (f) Includes net changes related to
nonaccrual loans with balances less than $2 million, payments on
non-accrual loans with book balances greater than $2 million and
transfers of nonaccrual loans to foreclosed property. Excludes
business loan gross charge-offs and business nonaccrual loans sold.
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) Comerica
Incorporated and Subsidiaries Years Ended ----------- December 31,
2009 ----------------- Average Average (dollar amounts in millions)
Balance Interest Rate ---------------------------- ------- --------
---- Commercial loans (a) (b) $24,534 $890 3.63 % Real estate
construction loans 4,140 121 2.92 Commercial mortgage loans 10,415
437 4.20 Residential mortgage loans 1,756 97 5.53 Consumer loans
2,553 94 3.68 Lease financing (c) 1,231 40 3.25 International loans
1,533 58 3.79 Business loan swap income - 34 - --- --- --- Total
loans (b) 46,162 1,771 3.84 Auction-rate securities available-
for-sale 1,010 15 1.47 Other investment securities available-
for-sale 8,378 318 3.88 ----- --- ---- Total investment securities
available- for-sale 9,388 333 3.61 Federal funds sold and
securities purchased under agreements to resell 18 - 0.32
Interest-bearing deposits with banks (d) 2,440 6 0.25 Other
short-term investments 154 3 1.74 --- --- ---- Total earning assets
58,162 2,113 3.64 Cash and due from banks 883 Allowance for loan
losses (947) Accrued income and other assets 4,711 ----- Total
assets $62,809 ------- Money market and NOW deposits (a) $12,965 63
0.49 Savings deposits 1,339 2 0.11 Customer certificates of deposit
8,131 183 2.26 ----- --- ---- Total interest-bearing core deposits
22,435 248 1.11 Other time deposits 4,103 121 2.96 Foreign office
time deposits 653 2 0.29 --- --- ---- Total interest-bearing
deposits 27,191 371 1.37 Short-term borrowings 1,000 2 0.24 Medium-
and long-term debt 13,334 165 1.23 ------ --- ---- Total
interest-bearing sources 41,525 538 1.29 --- ----
Noninterest-bearing deposits (a) 12,900 Accrued expenses and other
liabilities 1,285 Total shareholders' equity 7,099 ----- Total
liabilities and shareholders' equity $62,809 ------- Net interest
income/rate spread (FTE) $1,575 2.35 ------ FTE adjustment $8 ---
Impact of net noninterest-bearing sources of funds 0.37
---------------- ---- Net interest margin (as a percentage of
average earning assets) (FTE) (b) (c) (d) 2.72 %
------------------------------------ ---- N/M - Not meaningful (a)
FSD balances included above: Loans (primarily low-rate) $210 $3
1.65 % Interest-bearing deposits 448 2 0.54 Noninterest-bearing
deposits 1,306 (b) Impact of FSD loans (primarily low- rate) on the
following: Commercial loans (0.02) % Total loans (0.01) Net
interest margin (FTE) (assuming loans were funded by
noninterest-bearing deposits) - Years Ended ----------- December
31, 2008 ----------------- Average Average (dollar amounts in
millions) Balance Interest Rate ----------------------------
------- -------- ---- Commercial loans (a) (b) $28,870 $1,468 5.08
% Real estate construction loans 4,715 231 4.89 Commercial mortgage
loans 10,411 580 5.57 Residential mortgage loans 1,886 112 5.94
Consumer loans 2,559 130 5.08 Lease financing (c) 1,356 8 0.59
International loans 1,968 101 5.13 Business loan swap income - 24 -
--- --- --- Total loans (b) 51,765 2,654 5.13 Auction-rate
securities available- for-sale 193 6 2.95 Other investment
securities available- for-sale 7,908 384 4.88 ----- --- ---- Total
investment securities available- for-sale 8,101 390 4.83 Federal
funds sold and securities purchased under agreements to resell 93 2
2.08 Interest-bearing deposits with banks (d) 219 1 0.61 Other
short-term investments 244 10 3.98 --- --- ---- Total earning
assets 60,422 3,057 5.06 Cash and due from banks 1,185 Allowance
for loan losses (691) Accrued income and other assets 4,269 -----
Total assets $65,185 ------- Money market and NOW deposits (a)
$14,245 207 1.45 Savings deposits 1,344 6 0.45 Customer
certificates of deposit 8,150 263 3.23 ----- --- ---- Total
interest-bearing core deposits 23,739 476 2.01 Other time deposits
6,715 232 3.45 Foreign office time deposits 926 26 2.77 --- ---
---- Total interest-bearing deposits 31,380 734 2.34 Short-term
borrowings 3,763 87 2.30 Medium- and long-term debt 12,457 415 3.33
------ --- ---- Total interest-bearing sources 47,600 1,236 2.59
----- ---- Noninterest-bearing deposits (a) 10,623 Accrued expenses
and other liabilities 1,520 Total shareholders' equity 5,442 -----
Total liabilities and shareholders' equity $65,185 ------- Net
interest income/rate spread (FTE) $1,821 2.47 ------ FTE adjustment
$6 --- Impact of net noninterest-bearing sources of funds 0.55
---------------- ---- Net interest margin (as a percentage of
average earning assets) (FTE) (b) (c) (d) 3.02 %
------------------------------------ ---- N/M - Not meaningful (a)
FSD balances included above: Loans (primarily low-rate) $498 $7
1.40 % Interest-bearing deposits 957 19 1.99 Noninterest-bearing
deposits 1,643 (b) Impact of FSD loans (primarily low- rate) on the
following: Commercial loans (0.07) % Total loans (0.03) Net
interest margin (FTE) (assuming loans were funded by
noninterest-bearing deposits) (0.01) (c) 2008 net interest income
declined $38 million and the net interest margin declined six basis
points due to tax-related non- cash lease income charges. Excluding
these charges, the net interest margin would have been 3.08%. (d)
Excess liquidity, represented by average balances deposited with
the Federal Reserve Bank, reduced the net interest margin by 11
basis points and one basis point in 2009 and 2008, respectively.
Excluding excess liquidity, the net interest margin would have been
2.83% in 2009 and 3.03% in 2008.
http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO
http://photoarchive.ap.org/ DATASOURCE: Comerica Incorporated
CONTACT: Media, Wayne J. Mielke, +1-214-462-4463, or Investor,
Darlene P. Persons, +1-214-462-6831, or Walter Galloway,
+1-214-462-6834, all of Comerica Incorporated Web Site:
http://www.comerica.com/
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