DALLAS, July 19, 2011 /PRNewswire/ -- Comerica
Incorporated (NYSE: CMA) today reported second quarter 2011 net
income of $96 million, a decrease of
$7 million compared to $103 million for the first quarter 2011,
primarily due to the impact of a federal income tax settlement.
Second quarter 2011 also included $5
million of costs incurred in connection with the pending
acquisition of Sterling.
(Logo:
http://photos.prnewswire.com/prnh/20010807/CMALOGO)
(dollar amounts in millions,
except per share data)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
Net interest income
|
$ 391
|
|
|
$ 395
|
|
|
$ 422
|
|
|
Provision for loan
losses
|
47
|
|
|
49
|
|
|
126
|
|
|
Noninterest income
|
202
|
|
|
207
|
|
|
194
|
|
|
Noninterest expenses
|
409
|
|
|
415
|
|
|
397
|
|
|
Provision for income
taxes
|
41
|
|
|
35
|
|
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
96
|
|
|
103
|
|
|
70
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
common shares
|
95
|
|
|
102
|
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted income per common
share
|
0.53
|
|
|
0.57
|
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio
|
10.53
|
%
|
(a)
|
10.35
|
%
|
|
10.64
|
%
|
|
Tangible common equity ratio
(b)
|
10.90
|
|
|
10.43
|
|
|
10.11
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
3.14
|
|
|
3.25
|
|
|
3.28
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) June 30, 2011 ratio is
estimated.
|
|
(b) See Reconciliation of
Non-GAAP Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
"Total average loans were down one percent and period-end loans
were up modestly from March 31, 2011.
We were pleased to see commercial loan growth in the second
quarter, driven primarily by increases in Middle Market, Global
Corporate Banking and Specialty Businesses, partially offset by a
decrease in floor plan loans in National Dealer Services," said
Ralph W. Babb Jr., chairman and
chief executive officer. "Commercial Real Estate declined,
offsetting the commercial loan growth. We expect the pace of
decline in Commercial Real Estate to lessen in the second half of
2011 and National Dealer Services to rebound in the fourth quarter.
Our core deposits continued to increase in the second quarter,
which led to higher excess liquidity and a lower net interest
margin. Credit quality continued to improve and expenses were
well controlled.
"We are excited about our pending acquisition of Sterling
Bancshares, Inc., a strategically compelling transaction that
significantly boosts our presence in the growing state of
Texas. Following the
expiration of the required 15-day Department of Justice waiting
period associated with the Federal Reserve Board's approval order,
we expect the acquisition will close on July
28, 2011. Sterling's solid deposit base and well located
branch network are expected to triple our Houston market share, provide us entry into
the attractive San Antonio and
Kerrville regions and complement
our existing footprint in the Dallas-Fort
Worth area. In short, it is a unique opportunity that
provides us enhanced growth opportunities going forward.
"The Sterling integration
plans remain on track. We expect a smooth transition, given
the size of the acquisition and our in-depth knowledge of the
Texas market. We look
forward to welcoming Sterling customers and employees to Comerica
as we begin this new chapter in our Texas banking history."
Second Quarter 2011
Highlights Compared to First Quarter 2011
- Average loans increased in the Middle Market ($160 million; one percent), Global Corporate
Banking ($136 million; 3 percent),
and Specialty Businesses ($62
million; one percent) business lines. These increases
were more than offset by decreases in the Commercial Real Estate
($393 million; 9 percent) and
National Dealer Services ($194
million; 5 percent) business lines, resulting in a decrease
in average total loans of $377
million, or one percent. Period-end loans increased
$17 million from March 31, 2011 to June 30,
2011.
- Average core deposits increased $881
million in the second quarter 2011, with increases in all
major markets, led by the Texas
market.
- The net interest margin of 3.14 percent decreased 11 basis
points compared to the first quarter 2011, primarily resulting from
an increase in excess liquidity (represented by average balances
deposited with the Federal Reserve Bank), and a decrease in loan
pricing based on a decrease in LIBOR.
- Average earning assets increased $789
million in the second quarter 2011.
- Credit quality improvement continued in the second quarter
2011. Net credit-related charge-offs decreased $11 million to $90
million. Internal watch list loans declined
$339 million to $4.8 billion and nonperforming assets decreased
$60 million.
- Noninterest expenses decreased $6
million to $409 million in the
second quarter 2011, compared to the first quarter 2011.
Noninterest expenses included $5
million of costs incurred in connection with the pending
Sterling acquisition in the second quarter 2011, which were more
than offset by declines in numerous noninterest expense
categories.
- The second quarter 2011 provision for income taxes included net
after-tax charges of $8 million,
which primarily reflected a $19
million charge related to a final settlement agreement with
the Internal Revenue Service (IRS) involving repatriation of
foreign earnings on a structured investment transaction, partially
offset by a release of tax reserves of $9
million resulting from Comerica's planned participation in a
recently enacted State of
California voluntary compliance initiative. Comerica
has no other investment structures with uncertain tax
positions.
- The estimated Tier 1 capital ratio increased 18 basis points,
to 10.53 percent at June 30, 2011,
from March 31, 2011.
Net Interest Income and Net Interest Margin
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
Net interest income
|
$
391
|
|
|
$
395
|
|
|
$
422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
3.14
|
%
|
|
3.25
|
%
|
|
3.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
Total earning assets
|
$
50,136
|
|
|
$
49,347
|
|
|
$
51,835
|
|
|
|
Total investment
securities
|
7,407
|
|
|
7,311
|
|
|
7,262
|
|
|
|
Federal Reserve Bank deposits
(excess liquidity) (a)
|
3,382
|
|
|
2,297
|
|
|
3,719
|
|
|
|
Total loans
|
39,174
|
|
|
39,551
|
|
|
40,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposits
(b)
|
41,067
|
|
|
40,186
|
|
|
38,928
|
|
|
|
Total noninterest-bearing
deposits
|
15,786
|
|
|
15,459
|
|
|
15,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Reconciliation of
Non-GAAP Financial Measures.
|
|
(b) Core deposits exclude other
time deposits and foreign office time deposits.
|
|
|
|
|
|
|
|
|
|
|
|
- The $4 million decrease in net
interest income in the second quarter 2011, when compared to the
first quarter 2011, resulted primarily from a decline in the net
interest margin, the first quarter 2011 maturities of interest rate
swaps at positive spreads and a decrease in average loans,
partially offset by one more day in the quarter.
- The net interest margin of 3.14 percent declined 11 basis
points compared to the first quarter 2011. The decline in the
net interest margin primarily reflected the impact of an increase
in excess liquidity (7 basis points), a decrease in loan pricing
based on a decrease in LIBOR, and the first quarter 2011 maturities
of interest rate swaps at positive spreads.
- Average earning assets increased $789
million, primarily due to increases of $1.1 billion in excess liquidity and $96 million in average investment securities
available-for-sale, partially offset by a $377 million decrease in average loans.
- Second quarter 2011 average core deposits increased
$881 million compared to first
quarter 2011, primarily reflecting increases in money market and
NOW deposits ($410 million),
noninterest-bearing deposits ($327
million) and customer certificates of deposit ($100 million).
Noninterest
Income
Noninterest income was
$202 million for the second quarter
2011, compared to $207 million for
the first quarter 2011. The $5
million decrease primarily resulted from a decrease in
deferred compensation asset returns ($3
million) (offset by a decrease in deferred compensation plan
costs in noninterest expense).
Noninterest
Expenses
Noninterest expenses
totaled $409 million in the second
quarter 2011, a decrease of $6
million from the first quarter 2011. The decrease in
noninterest expenses was primarily due to decreases in salaries
expense ($3 million), FDIC insurance
expense ($3 million), software
expense ($3 million) and other real
estate expense ($2 million),
partially offset by certain pre-integration and transaction costs
incurred in connection with the pending Sterling acquisition
($5 million).
Provision for Income Taxes
The second quarter 2011
provision for income taxes included net after-tax charges of
$8 million, which primarily reflected
a $19 million charge related to a
final settlement agreement with the IRS involving repatriation of
foreign earnings on a structured investment transaction, partially
offset by a release of tax reserves of $9
million resulting from Comerica's planned participation in a
recently enacted State of
California voluntary compliance initiative.
Credit Quality
"Broad-based, steady
improvement in credit quality continued in the second quarter,"
said Babb. "This was the eighth consecutive quarter of
decline in net charge offs, with an $11
million decrease. We had strong recoveries of
$35 million in the second quarter, up
from $22 million in the first
quarter. Credit quality migration remains positive, as
demonstrated by the $339 million
decline in watch list loans, which provide our best early indicator
of future credit quality, as well as the $60
million decline in nonperforming assets. As a result
of these overall improvements to our credit metrics, the provision
for loan losses decreased to $47
million. Also, of note, the results of the recently
received Shared National Credit Exam are reflected in our second
quarter credit metrics."
- Net credit-related charge-offs decreased $11 million to $90
million in the second quarter 2011, from $101 million in the first quarter 2011. The
decrease in net credit-related charge-offs primarily reflected a
decrease of $22 million in the Middle
Market business line, partially offset by an increase of
$9 million in the Private Banking
business line.
- Internal watch list loans declined $339
million to $4.8 billion from
March 31, 2011 to June 30, 2011.
- During the second quarter 2011, $163
million of loan relationships greater than $2 million were transferred to nonaccrual status,
a decrease of $3 million from the
first quarter 2011. Of the transfers of loan relationships
greater than $2 million to nonaccrual
in the second quarter 2011, $76
million were from the Middle Market business line, primarily
in the Midwest and Western markets, and $29
million were from the Commercial Real Estate business line,
distributed across the Florida, Western and Other markets.
- Nonperforming assets decreased $60
million, compared to March 31,
2011, to $1.0 billion, or 2.66
percent of total loans and foreclosed property, at June 30, 2011.
- The allowance for loan losses to total loans ratio was 2.06
percent and 2.17 percent at June 30,
2011 and March 31, 2011,
respectively.
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
Net credit-related
charge-offs
|
$ 90
|
|
|
$ 101
|
|
|
$ 146
|
|
|
Net credit-related
charge-offs/Average total loans
|
0.92
|
%
|
|
1.03
|
%
|
|
1.44
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
$ 47
|
|
|
$ 49
|
|
|
$ 126
|
|
|
Provision for credit losses on
lending-related
|
|
|
|
|
|
|
|
|
|
|
commitments
|
(2)
|
|
|
(3)
|
|
|
-
|
|
|
|
|
Total provision for credit
losses
|
45
|
|
|
46
|
|
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
974
|
|
|
1,030
|
|
|
1,121
|
|
|
Nonperforming assets
(NPAs)
|
1,044
|
|
|
1,104
|
|
|
1,214
|
|
|
NPAs/Total loans and foreclosed
property
|
2.66
|
%
|
|
2.81
|
%
|
|
2.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more
and still accruing
|
$ 64
|
|
|
$ 72
|
|
|
$ 115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
806
|
|
|
849
|
|
|
967
|
|
|
Allowance for credit losses
on
|
|
|
|
|
|
|
|
|
|
|
lending-related commitments
(a)
|
30
|
|
|
32
|
|
|
44
|
|
|
|
|
Total allowance for credit
losses
|
836
|
|
|
881
|
|
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses/Total
loans
|
2.06
|
%
|
|
2.17
|
%
|
|
2.38
|
%
|
|
Allowance for loan
losses/Nonperforming loans
|
83
|
|
|
82
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Included in "Accrued
expenses and other liabilities" on the
consolidated balance sheets.
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet and Capital
Management
Total assets and common
shareholders' equity were $54.1
billion and $6.0 billion,
respectively, at June 30, 2011,
compared to $55.0 billion and
$5.9 billion, respectively, at
March 31, 2011. There were
approximately 177 million common shares outstanding at June 30, 2011. Comerica did not repurchase
any shares of common stock in the open market in the second quarter
2011 under the share repurchase program due to the pending Sterling
acquisition. Management expects to resume repurchases in the
third quarter 2011.
Comerica's tangible common
equity ratio was 10.90 percent at June 30,
2011, an increase of 47 basis points from March 31, 2011. The estimated Tier 1 capital
ratio increased 18 basis points, to 10.53 percent at June 30, 2011, from March
31, 2011.
Second-Half 2011 Outlook (Combined Comerica and Sterling
Results) Compared to First-Half 2011 (Comerica Only
Results)
For the second half of
2011, management expects the following combined results, based on
the incorporation of the projected results of Sterling operations
from the expected acquisition closing date of July 28, 2011 through year-end 2011, compared to
Comerica-only results for the first half of 2011, assuming a
continuation of modest growth in the economy. The acquisition
is subject to customary closing conditions. The estimated purchase
accounting impacts incorporated in this outlook are preliminary and
may not be indicative of actual amounts that will be recorded as
additional information becomes available and as additional analyses
are performed.
- A mid-single digit increase in average loans due to the
acquisition of Sterling loans at fair value.
- Average earning assets of approximately $52.5 billion, reflecting increases, primarily
related to Sterling, in average loans and average investment
securities available-for-sale, partially offset by a decrease in
excess liquidity.
- An average net interest margin of 3.35 percent to 3.40 percent,
reflecting the benefit from the accretion of the purchase discount
on the acquired Sterling loan portfolio ($35
million to $45 million; 13 basis points to 17 basis points),
a reduction in excess liquidity, no increase in the Federal Funds
rate, and LIBOR consistent with second quarter 2011 levels.
- Net credit-related charge-offs between $165 million and $185 million for the second half
of 2011. The provision for credit losses is expected to be between
$65 million and $85 million for the
second half of 2011.
- A mid-single digit decline in noninterest income in the second
half of 2011 compared to the first half of 2011, primarily due to
the impact of regulatory changes, partially offset by the inclusion
of Sterling.
- Excluding merger and restructuring charges, a high single-digit
increase in noninterest expenses in the second half of 2011
compared to the first half of 2011, primarily due to the addition
of Sterling.
- Total merger and restructuring charges of approximately
$80 million, after-tax, with about
$25 million, after-tax, recognized in
each of the third and fourth quarters of 2011, and the remainder
recognized in 2012.
- Total acquisition synergies of approximately 35 percent of
Sterling expenses, or about $56
million, with the majority realized in 2012.
- For the second half of 2011, income tax expense to approximate
36 percent of income before income taxes less approximately
$33 million in tax benefits.
- Continue share repurchase program that, combined with dividend
payments, results in a payout up to 50 percent of full-year
earnings.
Business Segments
Comerica's operations are
strategically aligned into three major business segments: the
Business Bank, the Retail Bank, and Wealth Management. The
Finance Division is also included as a segment. The financial
results below are based on the internal business unit structure of
the Corporation and methodologies in effect at June 30, 2011 and are presented on a fully
taxable equivalent (FTE) basis. The accompanying narrative
addresses second quarter 2011 results compared to first quarter
2011.
The following table
presents net income (loss) by business segment.
(dollar amounts in
millions)
|
2nd Qtr
'11
|
1st Qtr
'11
|
2nd Qtr
'10
|
|
Business Bank
|
$ 176
|
|
95
|
%
|
$ 167
|
|
93
|
%
|
$ 135
|
98
|
%
|
|
Retail Bank
|
(3)
|
|
(2)
|
|
(2)
|
|
(1)
|
|
(3)
|
(2)
|
|
|
Wealth Management
|
12
|
|
7
|
|
14
|
|
8
|
|
5
|
4
|
|
|
|
185
|
|
100
|
%
|
179
|
|
100
|
%
|
137
|
100
|
%
|
|
Finance
|
(87)
|
|
|
|
(76)
|
|
|
|
(57)
|
|
|
|
Other (a)
|
(2)
|
|
|
|
-
|
|
|
|
(10)
|
|
|
|
Total
|
$ 96
|
|
|
|
$ 103
|
|
|
|
$ 70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes discontinued
operations and items not directly associated with the three major
business segments or the Finance
Division.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Bank
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
342
|
|
$
341
|
|
$
351
|
|
|
Provision for loan
losses
|
6
|
|
18
|
|
83
|
|
|
Noninterest income
|
79
|
|
77
|
|
78
|
|
|
Noninterest expenses
|
158
|
|
160
|
|
157
|
|
|
Net income
|
176
|
|
167
|
|
135
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
54
|
|
73
|
|
113
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
29,893
|
|
30,091
|
|
30,609
|
|
|
Loans
|
29,380
|
|
29,609
|
|
30,353
|
|
|
Deposits
|
20,396
|
|
20,084
|
|
19,069
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
4.65
|
%
|
4.66
|
%
|
4.63
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $229
million, reflecting increases in Middle Market, Global
Corporate Banking and Specialty Businesses, more than offset by
decreases in Commercial Real Estate and National Dealer
Services.
- Average deposits increased $312
million, primarily due to increases in Specialty Businesses
and Global Corporate Banking, partially offset by a decrease in
Middle Market.
- The net interest margin of 4.65 percent decreased one basis
point, primarily due to a decrease in deposit spreads.
- The provision for loan losses decreased $12 million, primarily reflecting decreases in
Middle Market and Commercial Real Estate, partially offset by
increases in Global Corporate Banking and Specialty
Businesses.
Retail Bank
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
141
|
|
$
139
|
|
$
134
|
|
|
Provision for loan
losses
|
24
|
|
23
|
|
20
|
|
|
Noninterest income
|
46
|
|
42
|
|
42
|
|
|
Noninterest expenses
|
162
|
|
162
|
|
160
|
|
|
Net loss
|
(3)
|
|
(2)
|
|
(3)
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
22
|
|
23
|
|
22
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
5,453
|
|
5,558
|
|
5,937
|
|
|
Loans
|
4,999
|
|
5,106
|
|
5,446
|
|
|
Deposits
|
17,737
|
|
17,360
|
|
16,930
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
3.22
|
%
|
3.25
|
%
|
3.17
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $107
million, reflecting declines across all markets and business
lines.
- Average deposits increased $377
million, primarily due to increases in transaction and money
market deposits, partially offset by a decrease in customer
certificates of deposit.
- The net interest margin of 3.22 percent decreased three basis
points, primarily due to a decrease in deposit spreads.
- Noninterest income increased $4
million, reflecting nominal increases in numerous
categories.
Wealth Management
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
48
|
|
$
44
|
|
$
45
|
|
|
Provision for loan
losses
|
14
|
|
8
|
|
19
|
|
|
Noninterest income
|
63
|
|
64
|
|
61
|
|
|
Noninterest expenses
|
76
|
|
78
|
|
79
|
|
|
Net income
|
12
|
|
14
|
|
5
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
14
|
|
5
|
|
11
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
4,728
|
|
4,809
|
|
4,903
|
|
|
Loans
|
4,742
|
|
4,807
|
|
4,840
|
|
|
Deposits
|
2,978
|
|
2,800
|
|
2,924
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
4.07
|
%
|
3.76
|
%
|
3.73
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $65
million.
- Average deposits increased $178
million, primarily reflecting increases in
noninterest-bearing transaction accounts.
- The net interest margin of 4.07 percent increased 31 basis
points, primarily due to increases in loan spreads and deposit
balances.
- The provision for loan losses increased $6 million, due to an increase in Private Banking
in the Western Market.
Geographic Market Segments
Comerica also provides
market segment results for four primary geographic markets:
Midwest, Western, Texas and
Florida. In addition to the four primary geographic markets,
Other Markets and International are also reported as market
segments. The financial results below are based on
methodologies in effect at June 30,
2011 and are presented on a fully taxable equivalent (FTE)
basis. The accompanying narrative addresses second quarter 2011
results compared to first quarter 2011.
The following table presents net income (loss) by market
segment.
(dollar amounts in
millions)
|
2nd Qtr
'11
|
1st Qtr
'11
|
2nd Qtr
'10
|
|
Midwest
|
$ 62
|
|
34
|
%
|
$ 53
|
|
30
|
%
|
$ 61
|
44
|
%
|
|
Western
|
50
|
|
27
|
|
51
|
|
28
|
|
38
|
28
|
|
|
Texas
|
33
|
|
18
|
|
29
|
|
16
|
|
26
|
19
|
|
|
Florida
|
(5)
|
|
(3)
|
|
(4)
|
|
(2)
|
|
(8)
|
(6)
|
|
|
Other Markets
|
30
|
|
16
|
|
38
|
|
21
|
|
4
|
3
|
|
|
International
|
15
|
|
8
|
|
12
|
|
7
|
|
16
|
12
|
|
|
|
185
|
|
100
|
%
|
179
|
|
100
|
%
|
137
|
100
|
%
|
|
Finance & Other Businesses
(a)
|
(89)
|
|
|
|
(76)
|
|
|
|
(67)
|
|
|
|
Total
|
$ 96
|
|
|
|
$ 103
|
|
|
|
$ 70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Includes discontinued
operations and items not directly associated with the
geographic markets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midwest Market
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
204
|
|
$
203
|
|
$
211
|
|
|
Provision for loan
losses
|
15
|
|
34
|
|
34
|
|
|
Noninterest income
|
100
|
|
100
|
|
97
|
|
|
Noninterest expenses
|
183
|
|
188
|
|
180
|
|
|
Net income
|
62
|
|
53
|
|
61
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
37
|
|
46
|
|
44
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
14,267
|
|
14,307
|
|
14,626
|
|
|
Loans
|
14,051
|
|
14,104
|
|
14,592
|
|
|
Deposits
|
18,319
|
|
18,230
|
|
17,988
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
4.46
|
%
|
4.49
|
%
|
4.66
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $53
million, with increases in Middle Market and Global
Corporate Banking more than offset by declines in most other
business lines.
- Average deposits increased $89
million, primarily due to increases in Personal Banking,
Small Business Banking, Commercial Real Estate and Middle Market,
partially offset by decreases in Global Corporate Banking and
Specialty Businesses.
- The net interest margin of 4.46 percent decreased three basis
points, primarily due to decreases in deposit spreads and loan
balances, partially offset by an increase in loan spreads.
- The provision for loan losses decreased $19 million, primarily reflecting decreases in
Middle Market and Commercial Real Estate, partially offset by an
increase in Global Corporate Banking.
- Noninterest expenses decreased $5
million, primarily due to decreases in other real estate
expenses, net allocated corporate overhead expenses and FDIC
insurance expense, partially offset by an increase in the provision
for credit losses on lending-related commitments.
Western Market
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
166
|
|
$
164
|
|
$
163
|
|
|
Provision for loan
losses
|
20
|
|
11
|
|
27
|
|
|
Noninterest income
|
37
|
|
37
|
|
33
|
|
|
Noninterest expenses
|
108
|
|
109
|
|
110
|
|
|
Net income
|
50
|
|
51
|
|
38
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
26
|
|
26
|
|
47
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
12,329
|
|
12,590
|
|
13,006
|
|
|
Loans
|
12,121
|
|
12,383
|
|
12,792
|
|
|
Deposits
|
12,458
|
|
12,235
|
|
11,951
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
5.35
|
%
|
5.37
|
%
|
5.13
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $262
million, primarily due to decreases in National Dealer
Services, Commercial Real Estate and Private Banking, partially
offset by increases in Middle Market and Global Corporate
Banking.
- Average deposits increased $223
million, primarily due to increases in Specialty Businesses
and Private Banking, partially offset by a decrease in Middle
Market.
- The net interest margin of 5.35 percent decreased two basis
points, primarily due to a decrease in loan balances.
- The provision for loan losses increased $9 million, primarily due to increases in Private
Banking and Specialty Businesses.
Texas Market
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
89
|
|
$
87
|
|
$
81
|
|
|
Provision for loan
losses
|
(2)
|
|
4
|
|
(1)
|
|
|
Noninterest income
|
25
|
|
23
|
|
23
|
|
|
Noninterest expenses
|
63
|
|
61
|
|
65
|
|
|
Net income
|
33
|
|
29
|
|
26
|
|
|
|
|
|
|
|
|
|
|
Total net credit-related
charge-offs
|
3
|
|
8
|
|
8
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
7,081
|
|
7,031
|
|
6,652
|
|
|
Loans
|
6,871
|
|
6,824
|
|
6,428
|
|
|
Deposits
|
6,175
|
|
5,786
|
|
5,316
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
5.19
|
%
|
5.17
|
%
|
5.05
|
%
|
|
|
|
|
|
|
|
|
- Average loans increased $47
million, primarily due to increases in Middle Market and
Global Corporate Banking, partially offset by a decrease in
Commercial Real Estate.
- Average deposits increased $389
million, reflecting increases across most business
lines.
- The net interest margin of 5.19 percent increased two basis
points, primarily due to increases in loan spreads and deposit
balances, partially offset by a decrease in deposit spreads.
- The provision for loan losses decreased $6 million, with decreases across most business
lines.
Florida Market
(dollar amounts in
millions)
|
2nd Qtr
'11
|
|
1st Qtr
'11
|
|
2nd Qtr
'10
|
|
|
Net interest income
(FTE)
|
$
12
|
|
$
11
|
|
$
12
|
|
|
Provision for loan
losses
|
11
|
|
8
|
|
17
|
|
|
Noninterest income
|
4
|
|
4
|
|
4
|
|
|
Noninterest expenses
|
12
|
|
12
|
|
12
|
|
|
Net loss
|
(5)
|
|
(4)
|
|
(8)
|
|
|
|
|
|
|
|
|
|
|
Net credit-related
charge-offs
|
15
|
|
8
|
|
7
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
Assets
|
1,534
|
|
1,553
|
|
1,576
|
|
|
Loans
|
1,565
|
|
1,580
|
|
1,575
|
|
|
Deposits
|
396
|
|
367
|
|
404
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
3.14
|
%
|
2.82
|
%
|
2.94
|
%
|
|
|
|
|
|
|
|
|
- Average loans decreased $15
million, primarily due to decreases in Commercial Real
Estate and National Dealer Services, partially offset by increases
in Global Corporate Banking and Private Banking.
- Average deposits increased $29
million, primarily due to an increase in Private
Banking.
- The net interest margin of 3.14 percent increased 32 basis
points, primarily due to increases in loan spreads and deposit
balances.
- The provision for loan losses increased $3 million, primarily due to increases in Middle
Market, Commercial Real Estate and Private Banking.
Conference Call and Webcast
Comerica will host a conference call to
review second quarter 2011 financial results at 7 a.m. CT Tuesday, July 19, 2011. Interested
parties may access the conference call by calling (800) 309-2262 or
(706) 679-5261 (event ID No. 77355589). The call and supplemental
financial information can also be accessed on the Internet at
www.comerica.com. A telephone replay will be available
approximately two hours following the conference call through
July 31, 2011. The conference call
replay can be accessed by calling (800) 642-1687 or (706) 645-9291
(event ID No. 77355589). A replay of the Webcast can also be
accessed via Comerica's "Investor Relations" page at
www.comerica.com.
Comerica Incorporated is a financial
services company headquartered in Dallas,
Texas, and strategically aligned by three major business
segments: the Business Bank, the Retail Bank, and Wealth
Management. Comerica focuses on relationships and helping people
and businesses be successful. In addition to Texas, Comerica Bank locations can be found in
Arizona, California, Florida and Michigan, with select businesses operating in
several other states, as well as in Canada and Mexico.
This press release contains both financial measures based on
accounting principles generally accepted in the United States (GAAP) and non-GAAP based
financial measures, which are used where management believes it to
be helpful in understanding Comerica's results of operations or
financial position. Where non-GAAP financial measures are
used, the comparable GAAP financial measure, as well as the
reconcilement to the comparable GAAP financial measure, can be
found in this press release. These disclosures should not be
viewed as a substitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to
non-GAAP performance measures that may be presented by other
companies.
Forward-looking Statements
Any statements in this
news release that are not historical facts are forward-looking
statements as defined in the Private Securities Litigation Reform
Act of 1995. Words such as "anticipates," "believes,"
"feels," "expects," "estimates," "seeks," "strives," "plans,"
"intends," "outlook," "forecast," "position," "target," "mission,"
"assume," "achievable," "potential," "strategy," "goal,"
"aspiration," "opportunity," "initiative," "outcome," "continue,"
"remain," "maintain," "trend," "objective," "pending," "looks
forward" and variations of such words and similar expressions, or
future or conditional verbs such as "will," "would," "should,"
"could," "might," "can," "may" or similar expressions, as they
relate to Comerica or its management, are intended to
identify forward-looking statements. These forward-looking
statements are predicated on the beliefs and assumptions of
Comerica's management based on information known to Comerica's
management as of the date of this news release and do not purport
to speak as of any other date. Forward-looking statements may
include descriptions of plans and objectives of Comerica's
management for future or past operations, products or services, and
forecasts of Comerica's revenue, earnings or other measures of
economic performance, including statements of profitability,
business segments and subsidiaries, estimates of credit trends and
global stability. Such statements reflect the view of Comerica's
management as of this date with respect to future events and are
subject to risks and uncertainties. Should one or more of these
risks materialize or should underlying beliefs or assumptions prove
incorrect, Comerica's actual results could differ materially from
those discussed. Factors that could cause or contribute to
such differences are changes in general economic, political or
industry conditions and related credit and market conditions;
changes in trade, monetary and fiscal policies, including the
interest rate policies of the Federal Reserve Board; adverse
conditions in the capital markets; the interdependence of financial
service companies; changes in regulation or oversight, including
the effects of recently enacted legislation, actions taken by or
proposed by the U.S. Treasury, the Board of Governors of the
Federal Reserve System, the Texas Department of Banking and the
Federal Deposit Insurance Corporation, legislation or regulations
enacted in the future, and the impact and expiration of such
legislation and regulatory actions; unfavorable developments
concerning credit quality; the proposed acquisition of Sterling
Bancshares, Inc. ("Sterling"), or any future acquisitions; the
effects of more stringent capital or liquidity requirements;
declines or other changes in the businesses or industries in which
Comerica has a concentration of loans, including, but not limited
to, the automotive production industry and the real estate business
lines; the implementation of Comerica's strategies and business
models, including the anticipated performance of any new banking
centers; Comerica's ability to utilize technology to efficiently
and effectively develop, market and deliver new products and
services; operational difficulties or information security
problems; changes in the financial markets, including fluctuations
in interest rates and their impact on deposit pricing; the entry of
new competitors in Comerica's markets; changes in customer
borrowing, repayment, investment and deposit practices;
management's ability to maintain and expand customer relationships;
management's ability to retain key officers and employees; the
impact of legal and regulatory proceedings; the effectiveness of
methods of reducing risk exposures; the effects of war and other
armed conflicts or acts of terrorism and the effects of
catastrophic events including, but not limited to, hurricanes,
tornadoes, earthquakes, fires, droughts and floods. Comerica
cautions that the foregoing list of factors is not exclusive. For
discussion of factors that may cause actual results to differ from
expectations, please refer to our filings with the Securities
and Exchange Commission ("SEC"). In particular,
please refer to "Item 1A. Risk Factors" beginning on page 16 of
Comerica's Annual Report on Form 10-K for the year ended
December 31, 2010.
Forward-looking statements speak only as of the date they are made.
Comerica does not undertake to update forward-looking statements to
reflect facts, circumstances, assumptions or events that
occur after the date the forward-looking statements are made. For
any forward-looking statements made in this news release or in any
documents, Comerica claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.
Additional Information for Shareholders
In connection with the proposed merger transaction, Comerica has
filed with the SEC a Registration Statement on Form S-4 that
includes a Proxy Statement of Sterling and a Prospectus of
Comerica, and Sterling mailed the definitive Proxy
Statement/Prospectus to its shareholders on or about April 6, 2011. Each of Comerica and Sterling may
file other relevant documents concerning the proposed transaction.
SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE
DEFINITIVE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY CONTAIN
IMPORTANT INFORMATION.
A free copy of the definitive Proxy Statement/Prospectus, as
well as other filings containing information about Comerica and
Sterling, may be obtained at the SEC's Internet site
(http://www.sec.gov). You may be able to obtain these documents,
free of charge, from Comerica at www.comerica.com under the tab
"Investor Relations" and then under the heading "SEC Filings" or
from Sterling by accessing Sterling's website at
www.banksterling.com under the tab "Investor Relations" and then
under the heading "SEC Filings."
CONSOLIDATED FINANCIAL
HIGHLIGHTS (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
June
30,
|
March
31,
|
June
30,
|
|
June
30,
|
|
|
(in millions, except per share
data)
|
2011
|
2011
|
2010
|
|
2011
|
|
|
2010
|
|
|
PER COMMON SHARE AND COMMON
STOCK DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss)
|
$ 0.53
|
|
$ 0.57
|
|
$ 0.39
|
|
|
$ 1.10
|
|
|
$ (0.01)
|
|
|
Cash dividends
declared
|
0.10
|
|
0.10
|
|
0.05
|
|
|
0.20
|
|
|
0.10
|
|
|
Common shareholders' equity (at
period end)
|
34.15
|
|
33.25
|
|
32.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares (in
thousands)
|
177,602
|
|
178,425
|
|
178,432
|
|
|
178,011
|
|
|
165,100
|
|
|
KEY RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average common
shareholders' equity
|
6.41
|
%
|
7.08
|
%
|
4.89
|
%
|
|
6.74
|
%
|
|
(0.05)
|
%
|
|
Return on average
assets
|
0.70
|
|
0.77
|
|
0.50
|
|
|
0.73
|
|
|
0.43
|
|
|
Tier 1 common capital ratio (a)
(b)
|
10.53
|
|
10.35
|
|
9.81
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital ratio
(b)
|
10.53
|
|
10.35
|
|
10.64
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio
(b)
|
14.81
|
|
14.80
|
|
15.03
|
|
|
|
|
|
|
|
|
Leverage ratio (b)
|
11.39
|
|
11.37
|
|
11.36
|
|
|
|
|
|
|
|
|
Tangible common equity ratio
(a)
|
10.90
|
|
10.43
|
|
10.11
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
$ 21,677
|
|
$ 21,496
|
|
$ 20,910
|
|
|
$ 21,586
|
|
|
$ 20,961
|
|
|
Real estate construction
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Real Estate business line (c)
|
1,486
|
|
1,754
|
|
2,537
|
|
|
1,619
|
|
|
2,726
|
|
|
Other
business lines (d)
|
395
|
|
425
|
|
450
|
|
|
410
|
|
|
459
|
|
|
Commercial mortgage
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate business line (c)
|
1,912
|
|
1,978
|
|
1,947
|
|
|
1,945
|
|
|
1,896
|
|
|
Other business
lines (d)
|
7,724
|
|
7,812
|
|
8,425
|
|
|
7,768
|
|
|
8,484
|
|
|
Residential mortgage
loans
|
1,525
|
|
1,599
|
|
1,607
|
|
|
1,562
|
|
|
1,620
|
|
|
Consumer loans
|
2,243
|
|
2,281
|
|
2,448
|
|
|
2,262
|
|
|
2,464
|
|
|
Lease financing
|
958
|
|
987
|
|
1,108
|
|
|
972
|
|
|
1,119
|
|
|
International loans
|
1,254
|
|
1,219
|
|
1,240
|
|
|
1,237
|
|
|
1,261
|
|
|
Total loans
|
39,174
|
|
39,551
|
|
40,672
|
|
|
39,361
|
|
|
40,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets
|
50,136
|
|
49,347
|
|
51,835
|
|
|
49,743
|
|
|
52,385
|
|
|
Total assets
|
54,517
|
|
53,775
|
|
56,258
|
|
|
54,148
|
|
|
56,885
|
|
|
Noninterest-bearing
deposits
|
15,786
|
|
15,459
|
|
15,218
|
|
|
15,623
|
|
|
14,923
|
|
|
Interest-bearing core
deposits
|
25,281
|
|
24,727
|
|
23,710
|
|
|
25,005
|
|
|
23,165
|
|
|
Total core deposits
|
41,067
|
|
40,186
|
|
38,928
|
|
|
40,628
|
|
|
38,088
|
|
|
Common shareholders'
equity
|
5,972
|
|
5,835
|
|
5,708
|
|
|
5,904
|
|
|
5,391
|
|
|
Total shareholders'
equity
|
5,972
|
|
5,835
|
|
5,708
|
|
|
5,904
|
|
|
6,283
|
|
|
NET INTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (fully
taxable equivalent basis)
|
$
392
|
|
$
396
|
|
$
424
|
|
|
$
788
|
|
|
$
840
|
|
|
Fully taxable equivalent
adjustment
|
1
|
|
1
|
|
2
|
|
|
2
|
|
|
3
|
|
|
Net interest margin (fully
taxable equivalent basis)
|
3.14
|
%
|
3.25
|
%
|
3.28
|
%
|
|
3.19
|
%
|
|
3.23
|
%
|
|
CREDIT QUALITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans
|
$
941
|
|
$
996
|
|
$ 1,098
|
|
|
|
|
|
|
|
|
Reduced-rate loans
|
33
|
|
34
|
|
23
|
|
|
|
|
|
|
|
|
Total nonperforming
loans
|
974
|
|
1,030
|
|
1,121
|
|
|
|
|
|
|
|
|
Foreclosed property
|
70
|
|
74
|
|
93
|
|
|
|
|
|
|
|
|
Total nonperforming
assets
|
1,044
|
|
1,104
|
|
1,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 90 days or more
and still accruing
|
64
|
|
72
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loan
charge-offs
|
125
|
|
123
|
|
158
|
|
|
$
248
|
|
|
$
342
|
|
|
Loan recoveries
|
35
|
|
22
|
|
12
|
|
|
57
|
|
|
23
|
|
|
Net loan charge-offs
|
90
|
|
101
|
|
146
|
|
|
191
|
|
|
319
|
|
|
Lending-related commitment
charge-offs
|
-
|
|
-
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Total net credit-related
charge-offs
|
90
|
|
101
|
|
146
|
|
|
191
|
|
|
319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
806
|
|
849
|
|
967
|
|
|
|
|
|
|
|
|
Allowance for credit losses on
lending-related commitments
|
30
|
|
32
|
|
44
|
|
|
|
|
|
|
|
|
Total allowance for credit
losses
|
836
|
|
881
|
|
1,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percentage of total loans
|
2.06
|
%
|
2.17
|
%
|
2.38
|
%
|
|
|
|
|
|
|
|
Net loan charge-offs as a
percentage of average total loans
|
0.92
|
|
1.03
|
|
1.44
|
|
|
0.97
|
%
|
|
1.56
|
%
|
|
Net credit-related charge-offs
as a percentage of average total loans
|
0.92
|
|
1.03
|
|
1.44
|
|
|
0.97
|
|
|
1.56
|
|
|
Nonperforming assets as a
percentage of total loans and foreclosed property
|
2.66
|
|
2.81
|
|
2.98
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percentage of total nonperforming loans
|
83
|
|
82
|
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See Reconciliation of
Non-GAAP Financial Measures.
|
|
(b) June 30, 2011 ratios are
estimated.
|
|
(c) Primarily loans to real
estate investors and developers.
|
|
(d) Primarily loans secured by
owner-occupied real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
June
30,
|
|
(in millions, except share
data)
|
2011
|
2011
|
2010
|
2010
|
|
|
|
(unaudited)
|
(unaudited)
|
|
(unaudited)
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$
987
|
$
875
|
$
668
|
$
816
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with
banks
|
2,479
|
3,570
|
1,415
|
3,409
|
|
Other short-term
investments
|
124
|
154
|
141
|
134
|
|
|
|
|
|
|
|
|
Investment securities
available-for-sale
|
7,537
|
7,406
|
7,560
|
7,188
|
|
|
|
|
|
|
|
|
Commercial loans
|
22,052
|
21,360
|
22,145
|
21,151
|
|
Real estate construction
loans
|
1,728
|
2,023
|
2,253
|
2,774
|
|
Commercial mortgage
loans
|
9,579
|
9,697
|
9,767
|
10,318
|
|
Residential mortgage
loans
|
1,491
|
1,550
|
1,619
|
1,606
|
|
Consumer loans
|
2,232
|
2,262
|
2,311
|
2,443
|
|
Lease financing
|
949
|
958
|
1,009
|
1,084
|
|
International loans
|
1,162
|
1,326
|
1,132
|
1,226
|
|
|
Total loans
|
39,193
|
39,176
|
40,236
|
40,602
|
|
Less allowance for loan
losses
|
(806)
|
(849)
|
(901)
|
(967)
|
|
|
Net loans
|
38,387
|
38,327
|
39,335
|
39,635
|
|
|
|
|
|
|
|
|
Premises and
equipment
|
641
|
637
|
630
|
634
|
|
Customers' liability on
acceptances outstanding
|
10
|
14
|
9
|
24
|
|
Accrued income and other
assets
|
3,976
|
4,034
|
3,909
|
4,045
|
|
|
Total assets
|
$ 54,141
|
$ 55,017
|
$
53,667
|
$ 55,885
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Noninterest-bearing
deposits
|
$ 16,344
|
$ 16,357
|
$
15,538
|
$ 15,769
|
|
|
|
|
|
|
|
|
Money market and NOW
deposits
|
18,033
|
17,888
|
17,622
|
16,062
|
|
Savings deposits
|
1,462
|
1,457
|
1,397
|
1,407
|
|
Customer certificates of
deposit
|
5,551
|
5,672
|
5,482
|
5,893
|
|
Other time deposits
|
-
|
-
|
-
|
165
|
|
Foreign office time
deposits
|
368
|
499
|
432
|
484
|
|
|
Total interest-bearing
deposits
|
25,414
|
25,516
|
24,933
|
24,011
|
|
|
Total deposits
|
41,758
|
41,873
|
40,471
|
39,780
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
67
|
61
|
130
|
200
|
|
Acceptances
outstanding
|
10
|
14
|
9
|
24
|
|
Accrued expenses and other
liabilities
|
1,062
|
1,076
|
1,126
|
1,048
|
|
Medium- and long-term
debt
|
5,206
|
6,116
|
6,138
|
9,041
|
|
|
Total liabilities
|
48,103
|
49,140
|
47,874
|
50,093
|
|
|
|
|
|
|
|
|
Common stock - $5 par
value:
|
|
|
|
|
|
Authorized -
325,000,000 shares
|
|
|
|
|
|
Issued -
203,878,110 shares
|
1,019
|
1,019
|
1,019
|
1,019
|
|
Capital surplus
|
1,472
|
1,464
|
1,481
|
1,467
|
|
Accumulated other comprehensive
loss
|
(308)
|
(382)
|
(389)
|
(240)
|
|
Retained earnings
|
5,395
|
5,317
|
5,247
|
5,124
|
|
Less cost of common stock in
treasury - 27,092,427 shares at 6/30/11, 27,103,941
shares
|
|
|
|
|
|
at 3/31/11,
27,342,518 shares at 12/31/10, and 27,561,412 shares at
6/30/10
|
(1,540)
|
(1,541)
|
(1,565)
|
(1,578)
|
|
|
Total shareholders'
equity
|
6,038
|
5,877
|
5,793
|
5,792
|
|
|
Total liabilities and
shareholders' equity
|
$ 54,141
|
$ 55,017
|
$
53,667
|
$ 55,885
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
INCOME (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
June
30,
|
June
30,
|
|
(in millions, except per share
data)
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
Interest and fees on
loans
|
$ 369
|
$ 412
|
$ 744
|
$ 824
|
|
Interest on investment
securities
|
59
|
61
|
116
|
122
|
|
Interest on short-term
investments
|
3
|
3
|
5
|
6
|
|
|
Total interest income
|
431
|
476
|
865
|
952
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
Interest on deposits
|
23
|
29
|
45
|
64
|
|
Interest on medium- and
long-term debt
|
17
|
25
|
34
|
51
|
|
|
Total interest
expense
|
40
|
54
|
79
|
115
|
|
|
Net interest income
|
391
|
422
|
786
|
837
|
|
Provision for loan
losses
|
47
|
126
|
96
|
301
|
|
|
Net interest income after
provision for loan losses
|
344
|
296
|
690
|
536
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
Service charges on deposit
accounts
|
51
|
52
|
103
|
108
|
|
Fiduciary income
|
39
|
38
|
78
|
77
|
|
Commercial lending
fees
|
21
|
22
|
42
|
44
|
|
Letter of credit fees
|
18
|
19
|
36
|
37
|
|
Card fees
|
15
|
15
|
30
|
28
|
|
Foreign exchange
income
|
10
|
10
|
19
|
20
|
|
Bank-owned life
insurance
|
9
|
9
|
17
|
17
|
|
Brokerage fees
|
6
|
6
|
12
|
12
|
|
Net securities gains
|
4
|
1
|
6
|
3
|
|
Other noninterest
income
|
29
|
22
|
66
|
42
|
|
|
Total noninterest
income
|
202
|
194
|
409
|
388
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
Salaries
|
|
185
|
179
|
373
|
348
|
|
Employee benefits
|
50
|
45
|
100
|
89
|
|
Total salaries and
employee benefits
|
235
|
224
|
473
|
437
|
|
Net occupancy expense
|
38
|
39
|
78
|
80
|
|
Equipment expense
|
17
|
15
|
32
|
32
|
|
Outside processing fee
expense
|
25
|
23
|
49
|
46
|
|
Software expense
|
20
|
22
|
43
|
44
|
|
FDIC insurance
expense
|
12
|
16
|
27
|
33
|
|
Legal fees
|
8
|
9
|
17
|
17
|
|
Advertising expense
|
7
|
7
|
14
|
15
|
|
Other real estate
expense
|
6
|
5
|
14
|
17
|
|
Litigation and operational
losses
|
5
|
2
|
8
|
3
|
|
Merger and restructuring
charges
|
5
|
-
|
5
|
-
|
|
Provision for credit losses on
lending-related commitments
|
(2)
|
-
|
(5)
|
7
|
|
Other noninterest
expenses
|
33
|
35
|
69
|
70
|
|
|
Total noninterest
expenses
|
409
|
397
|
824
|
801
|
|
Income from continuing
operations before income taxes
|
137
|
93
|
275
|
123
|
|
Provision for income
taxes
|
41
|
23
|
76
|
18
|
|
Income from continuing
operations
|
96
|
70
|
199
|
105
|
|
Income from discontinued
operations, net of tax
|
-
|
-
|
-
|
17
|
|
NET INCOME
|
96
|
70
|
199
|
122
|
|
Less:
|
|
|
|
|
|
|
Preferred stock
dividends
|
-
|
-
|
-
|
123
|
|
Income allocated to
participating securities
|
1
|
1
|
2
|
-
|
|
Net income (loss) attributable
to common shares
|
$ 95
|
$ 69
|
$ 197
|
$
(1)
|
|
|
|
|
|
|
|
|
Basic earnings per common
share:
|
|
|
|
|
|
Income
(loss) from continuing operations
|
$ 0.54
|
$ 0.40
|
$ 1.12
|
$ (0.11)
|
|
Net income
(loss)
|
0.54
|
0.40
|
1.12
|
(0.01)
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share:
|
|
|
|
|
|
Income (loss) from
continuing operations
|
0.53
|
0.39
|
1.10
|
(0.11)
|
|
Net income
(loss)
|
0.53
|
0.39
|
1.10
|
(0.01)
|
|
|
|
|
|
|
|
|
Cash dividends declared on
common stock
|
18
|
8
|
35
|
18
|
|
Cash dividends declared per
common share
|
0.10
|
0.05
|
0.20
|
0.10
|
|
|
|
|
|
|
|
CONSOLIDATED QUARTERLY
STATEMENTS OF INCOME (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
|
First
|
Fourth
|
Third
|
Second
|
|
Second
Quarter 2011 Compared To:
|
|
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
First Quarter 2011
|
|
Second Quarter 2010
|
|
|
(in millions, except per share
data)
|
2011
|
2011
|
2010
|
2010
|
2010
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
$ 369
|
$ 375
|
$ 394
|
$ 399
|
$ 412
|
|
$
(6)
|
(1)
|
%
|
$
(43)
|
(10)
|
%
|
|
Interest on investment
securities
|
59
|
57
|
49
|
55
|
61
|
|
2
|
2
|
|
(2)
|
(4)
|
|
|
Interest on short-term
investments
|
3
|
2
|
2
|
2
|
3
|
|
1
|
9
|
|
-
|
(12)
|
|
|
|
Total interest income
|
431
|
434
|
445
|
456
|
476
|
|
(3)
|
(1)
|
|
(45)
|
(9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
23
|
22
|
24
|
27
|
29
|
|
1
|
(1)
|
|
(6)
|
(21)
|
|
|
Interest on short-term
borrowings
|
-
|
-
|
1
|
-
|
-
|
|
-
|
(46)
|
|
-
|
(77)
|
|
|
Interest on medium- and
long-term debt
|
17
|
17
|
15
|
25
|
25
|
|
-
|
4
|
|
(8)
|
(30)
|
|
|
|
Total interest
expense
|
40
|
39
|
40
|
52
|
54
|
|
1
|
1
|
|
(14)
|
(25)
|
|
|
|
Net interest income
|
391
|
395
|
405
|
404
|
422
|
|
(4)
|
(1)
|
|
(31)
|
(7)
|
|
|
Provision for loan
losses
|
47
|
49
|
57
|
122
|
126
|
|
(2)
|
(4)
|
|
(79)
|
(63)
|
|
|
|
Net interest income after
provision for loan losses
|
344
|
346
|
348
|
282
|
296
|
|
(2)
|
(1)
|
|
48
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts
|
51
|
52
|
49
|
51
|
52
|
|
(1)
|
(4)
|
|
(1)
|
(5)
|
|
|
Fiduciary income
|
39
|
39
|
39
|
38
|
38
|
|
-
|
2
|
|
1
|
3
|
|
|
Commercial lending
fees
|
21
|
21
|
29
|
22
|
22
|
|
-
|
4
|
|
(1)
|
(1)
|
|
|
Letter of credit fees
|
18
|
18
|
20
|
19
|
19
|
|
-
|
(1)
|
|
(1)
|
(1)
|
|
|
Card fees
|
|
15
|
15
|
15
|
15
|
15
|
|
-
|
7
|
|
-
|
6
|
|
|
Foreign exchange
income
|
10
|
9
|
11
|
8
|
10
|
|
1
|
7
|
|
-
|
(4)
|
|
|
Bank-owned life
insurance
|
9
|
8
|
14
|
9
|
9
|
|
1
|
1
|
|
-
|
1
|
|
|
Brokerage fees
|
6
|
6
|
7
|
6
|
6
|
|
-
|
(8)
|
|
-
|
(8)
|
|
|
Net securities gains
|
4
|
2
|
-
|
-
|
1
|
|
2
|
82
|
|
3
|
N/M
|
|
|
Other noninterest
income
|
29
|
37
|
31
|
18
|
22
|
|
(8)
|
(20)
|
|
7
|
32
|
|
|
|
Total noninterest
income
|
202
|
207
|
215
|
186
|
194
|
|
(5)
|
(2)
|
|
8
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
185
|
188
|
205
|
187
|
179
|
|
(3)
|
(1)
|
|
6
|
3
|
|
|
Employee benefits
|
50
|
50
|
43
|
47
|
45
|
|
-
|
(1)
|
|
5
|
11
|
|
|
Total salaries and
employee benefits
|
235
|
238
|
248
|
234
|
224
|
|
(3)
|
(1)
|
|
11
|
5
|
|
|
Net occupancy expense
|
38
|
40
|
42
|
40
|
39
|
|
(2)
|
(3)
|
|
(1)
|
-
|
|
|
Equipment expense
|
17
|
15
|
16
|
15
|
15
|
|
2
|
5
|
|
2
|
5
|
|
|
Outside processing fee
expense
|
25
|
24
|
27
|
23
|
23
|
|
1
|
5
|
|
2
|
8
|
|
|
Software expense
|
20
|
23
|
23
|
22
|
22
|
|
(3)
|
(8)
|
|
(2)
|
(4)
|
|
|
FDIC insurance
expense
|
12
|
15
|
15
|
14
|
16
|
|
(3)
|
(16)
|
|
(4)
|
(24)
|
|
|
Legal fees
|
|
8
|
9
|
9
|
9
|
9
|
|
(1)
|
-
|
|
(1)
|
-
|
|
|
Advertising expense
|
7
|
7
|
8
|
7
|
7
|
|
-
|
-
|
|
-
|
(5)
|
|
|
Other real estate
expense
|
6
|
8
|
5
|
7
|
5
|
|
(2)
|
(35)
|
|
1
|
9
|
|
|
Litigation and operational
losses
|
5
|
3
|
6
|
2
|
2
|
|
2
|
60
|
|
3
|
N/M
|
|
|
Merger and restructuring
charges
|
5
|
-
|
-
|
-
|
-
|
|
5
|
N/M
|
|
5
|
N/M
|
|
|
Provision for credit losses on
lending-related commitments
|
(2)
|
(3)
|
(3)
|
(6)
|
-
|
|
1
|
21
|
|
(2)
|
N/M
|
|
|
Other noninterest
expenses
|
33
|
36
|
41
|
35
|
35
|
|
(3)
|
(11)
|
|
(2)
|
(8)
|
|
|
|
Total noninterest
expenses
|
409
|
415
|
437
|
402
|
397
|
|
(6)
|
(1)
|
|
12
|
3
|
|
|
Income before income
taxes
|
137
|
138
|
126
|
66
|
93
|
|
(1)
|
(1)
|
|
44
|
48
|
|
|
Provision for income
taxes
|
41
|
35
|
30
|
7
|
23
|
|
6
|
19
|
|
18
|
81
|
|
|
NET INCOME
|
96
|
103
|
96
|
59
|
70
|
|
(7)
|
(7)
|
|
26
|
37
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income allocated to
participating securities
|
1
|
1
|
1
|
-
|
1
|
|
-
|
(6)
|
|
-
|
N/M
|
|
|
Net income (loss) attributable
to common shares
|
$
95
|
$ 102
|
$
95
|
$
59
|
$
69
|
|
$
(7)
|
(7)
|
%
|
$
26
|
36
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.54
|
$ 0.58
|
$ 0.54
|
$ 0.34
|
$ 0.40
|
|
$ (0.04)
|
(7)
|
%
|
$
0.14
|
35
|
%
|
|
Diluted
|
|
0.53
|
0.57
|
0.53
|
0.33
|
0.39
|
|
(0.04)
|
(7)
|
|
0.14
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared on
common stock
|
18
|
17
|
18
|
9
|
8
|
|
1
|
-
|
|
10
|
N/M
|
|
|
Cash dividends declared per
common share
|
0.10
|
0.10
|
0.10
|
0.05
|
0.05
|
|
-
|
-
|
|
0.05
|
N/M
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/M - Not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF THE ALLOWANCE FOR
LOAN LOSSES (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
(in millions)
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
$ 849
|
|
$ 901
|
|
$ 957
|
|
|
$ 967
|
|
$ 987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
66
|
|
65
|
|
43
|
|
|
38
|
|
65
|
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate business line (a)
|
|
12
|
|
8
|
|
34
|
|
|
40
|
|
30
|
|
|
Other
business lines (b)
|
|
-
|
|
1
|
|
-
|
|
|
1
|
|
-
|
|
|
Total real estate construction
|
|
12
|
|
9
|
|
34
|
|
|
41
|
|
30
|
|
|
Commercial
mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate business line (a)
|
|
8
|
|
9
|
|
9
|
|
|
16
|
|
12
|
|
|
Other
business lines (b)
|
|
23
|
|
25
|
|
34
|
|
|
40
|
|
36
|
|
|
Total commercial mortgage
|
|
31
|
|
34
|
|
43
|
|
|
56
|
|
48
|
|
|
Residential
mortgage
|
|
7
|
|
2
|
|
5
|
|
|
2
|
|
5
|
|
|
Consumer
|
|
9
|
|
8
|
|
15
|
|
|
7
|
|
9
|
|
|
Lease
financing
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
1
|
|
|
International
|
|
-
|
|
5
|
|
-
|
|
|
1
|
|
-
|
|
|
Total
loan charge-offs
|
|
125
|
|
123
|
|
140
|
|
|
145
|
|
158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries on loans previously
charged-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
13
|
|
4
|
|
7
|
|
|
7
|
|
4
|
|
|
Real estate
construction
|
|
5
|
|
2
|
|
3
|
|
|
1
|
|
6
|
|
|
Commercial
mortgage
|
|
5
|
|
9
|
|
10
|
|
|
2
|
|
1
|
|
|
Residential
mortgage
|
|
1
|
|
-
|
|
1
|
|
|
-
|
|
-
|
|
|
Consumer
|
|
1
|
|
1
|
|
2
|
|
|
1
|
|
1
|
|
|
Lease
financing
|
|
6
|
|
5
|
|
4
|
|
|
1
|
|
-
|
|
|
International
|
|
4
|
|
1
|
|
-
|
|
|
1
|
|
-
|
|
|
Total
recoveries
|
|
35
|
|
22
|
|
27
|
|
|
13
|
|
12
|
|
|
Net loan charge-offs
|
|
90
|
|
101
|
|
113
|
|
|
132
|
|
146
|
|
|
Provision for loan
losses
|
|
47
|
|
49
|
|
57
|
|
|
122
|
|
126
|
|
|
Balance at end of
period
|
|
$ 806
|
|
$ 849
|
|
$ 901
|
|
|
$ 957
|
|
$ 967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a
percentage of total loans
|
|
2.06
|
%
|
2.17
|
%
|
2.24
|
%
|
|
2.38
|
%
|
2.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loan charge-offs as a
percentage of average total loans
|
|
0.92
|
|
1.03
|
|
1.13
|
|
|
1.32
|
|
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net credit-related charge-offs
as a percentage of average total loans
|
|
0.92
|
|
1.03
|
|
1.13
|
|
|
1.32
|
|
1.44
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
(in millions)
|
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
$
32
|
|
$ 35
|
|
$ 38
|
|
|
$ 44
|
|
$
44
|
|
Add: Provision for credit losses
on lending-related commitments
|
|
(2)
|
|
(3)
|
|
(3)
|
|
|
(6)
|
|
-
|
|
Balance at end of
period
|
|
$
30
|
|
$ 32
|
|
$ 35
|
|
|
$ 38
|
|
$
44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unfunded lending-related
commitments sold
|
|
$
3
|
|
$
2
|
|
$
-
|
|
|
$
-
|
|
$
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS
(unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
(in millions)
|
2nd
Qtr
|
|
1st
Qtr
|
|
4th
Qtr
|
|
3rd
Qtr
|
|
2nd
Qtr
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY OF NONPERFORMING ASSETS
AND PAST DUE LOANS
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
Business loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ 261
|
|
$ 226
|
|
$ 252
|
|
$
258
|
|
$
239
|
|
|
Real estate
construction:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate
business line (a)
|
137
|
|
195
|
|
259
|
|
362
|
|
385
|
|
|
Other business lines
(b)
|
2
|
|
3
|
|
4
|
|
4
|
|
4
|
|
|
Total real estate
construction
|
139
|
|
198
|
|
263
|
|
366
|
|
389
|
|
|
Commercial
mortgage:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate
business line (a)
|
186
|
|
197
|
|
181
|
|
153
|
|
135
|
|
|
Other business lines
(b)
|
269
|
|
293
|
|
302
|
|
304
|
|
257
|
|
|
Total commercial
mortgage
|
455
|
|
490
|
|
483
|
|
457
|
|
392
|
|
|
Lease financing
|
6
|
|
7
|
|
7
|
|
10
|
|
11
|
|
|
International
|
7
|
|
4
|
|
2
|
|
2
|
|
3
|
|
|
Total nonaccrual business
loans
|
868
|
|
925
|
|
1,007
|
|
1,093
|
|
1,034
|
|
|
Retail loans:
|
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
60
|
|
58
|
|
55
|
|
59
|
|
53
|
|
|
Consumer:
|
|
|
|
|
|
|
|
|
|
|
|
Home equity
|
4
|
|
6
|
|
5
|
|
5
|
|
7
|
|
|
Other consumer
|
9
|
|
7
|
|
13
|
|
6
|
|
4
|
|
|
Total consumer
|
13
|
|
13
|
|
18
|
|
11
|
|
11
|
|
|
Total nonaccrual retail
loans
|
73
|
|
71
|
|
73
|
|
70
|
|
64
|
|
|
Total nonaccrual
loans
|
941
|
|
996
|
|
1,080
|
|
1,163
|
|
1,098
|
|
|
Reduced-rate loans
|
33
|
|
34
|
|
43
|
|
28
|
|
23
|
|
|
Total nonperforming
loans
|
974
|
|
1,030
|
|
1,123
|
|
1,191
|
|
1,121
|
|
|
Foreclosed property
|
70
|
|
74
|
|
112
|
|
120
|
|
93
|
|
|
Total nonperforming
assets
|
$ 1,044
|
|
$ 1,104
|
|
$ 1,235
|
|
$ 1,311
|
|
$ 1,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a
percentage of total loans
|
2.49
|
%
|
2.63
|
%
|
2.79
|
%
|
2.96
|
%
|
2.76
|
%
|
|
Nonperforming assets as a
percentage of total loans
|
|
|
|
|
|
|
|
|
|
|
|
and foreclosed
property
|
2.66
|
|
2.81
|
|
3.06
|
|
3.24
|
|
2.98
|
|
|
Allowance for loan losses as a
percentage
|
|
|
|
|
|
|
|
|
|
|
|
of total
nonperforming loans
|
83
|
|
82
|
|
80
|
|
80
|
|
86
|
|
|
Loans past due 90 days or more
and still accruing
|
$
64
|
|
$
72
|
|
$
62
|
|
$
104
|
|
$
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NONACCRUAL
LOANS
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans at beginning of
period
|
$ 996
|
|
$ 1,080
|
|
$ 1,163
|
|
$ 1,098
|
|
$ 1,145
|
|
|
Loans transferred
to nonaccrual (c)
|
163
|
|
166
|
|
180
|
|
294
|
|
199
|
|
|
Nonaccrual
business loan gross charge-offs (d)
|
(109)
|
|
(111)
|
|
(120)
|
|
(136)
|
|
(143)
|
|
|
Loans transferred
to accrual status (c)
|
-
|
|
(4)
|
|
(4)
|
|
(10)
|
|
-
|
|
|
Nonaccrual
business loans sold (e)
|
(9)
|
|
(60)
|
|
(41)
|
|
(12)
|
|
(47)
|
|
|
Payments/Other
(f)
|
(100)
|
|
(75)
|
|
(98)
|
|
(71)
|
|
(56)
|
|
|
Nonaccrual loans at end of
period
|
$ 941
|
|
$ 996
|
|
$ 1,080
|
|
$ 1,163
|
|
$ 1,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
$ 109
|
|
$ 111
|
|
$ 120
|
|
$
136
|
|
$
143
|
|
|
Performing
watch list loans
|
-
|
|
2
|
|
-
|
|
-
|
|
1
|
|
|
Consumer and
residential mortgage loans
|
16
|
|
10
|
|
20
|
|
9
|
|
14
|
|
|
|
Total gross loan
charge-offs
|
$ 125
|
|
$ 123
|
|
$ 140
|
|
$
145
|
|
$
158
|
|
|
(e) Analysis of loans
sold:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual
business loans
|
$
9
|
|
$
60
|
|
$
41
|
|
$
12
|
|
$
47
|
|
|
Performing
watch list loans
|
6
|
|
35
|
|
29
|
|
7
|
|
15
|
|
|
|
Total loans sold
|
$
15
|
|
$
95
|
|
$
70
|
|
$
19
|
|
$
62
|
|
|
(f) Includes net changes related
to nonaccrual loans with balances less than $2 million, payments on
nonaccrual 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
|
June 30,
2011
|
|
June 30,
2010
|
|
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
(dollar amounts in
millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
$ 21,586
|
$ 396
|
3.70
|
%
|
|
$ 20,961
|
$ 411
|
3.95
|
%
|
|
Real estate construction
loans
|
2,029
|
36
|
3.62
|
|
|
3,185
|
48
|
3.03
|
|
|
Commercial mortgage
loans
|
9,713
|
191
|
3.96
|
|
|
10,380
|
216
|
4.19
|
|
|
Residential mortgage
loans
|
1,562
|
42
|
5.37
|
|
|
1,620
|
44
|
5.43
|
|
|
Consumer loans
|
2,262
|
39
|
3.42
|
|
|
2,464
|
44
|
3.57
|
|
|
Lease financing
|
972
|
17
|
3.56
|
|
|
1,119
|
21
|
3.73
|
|
|
International loans
|
1,237
|
24
|
3.83
|
|
|
1,261
|
25
|
4.00
|
|
|
Business loan swap
income
|
-
|
1
|
-
|
|
|
-
|
17
|
-
|
|
|
|
Total loans
|
39,361
|
746
|
3.82
|
|
|
40,990
|
826
|
4.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auction-rate securities
available-for-sale
|
527
|
2
|
0.80
|
|
|
847
|
5
|
1.06
|
|
|
Other investment securities
available-for-sale
|
6,832
|
114
|
3.39
|
|
|
6,475
|
118
|
3.72
|
|
|
|
Total investment securities
available-for-sale
|
7,359
|
116
|
3.19
|
|
|
7,322
|
123
|
3.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
securities purchased
|
|
|
|
|
|
|
|
|
|
|
under agreements to
resell
|
2
|
-
|
0.32
|
|
|
1
|
-
|
1.17
|
|
|
Interest-bearing deposits with
banks (a)
|
2,897
|
4
|
0.25
|
|
|
3,944
|
5
|
0.25
|
|
|
Other short-term
investments
|
124
|
1
|
2.05
|
|
|
128
|
1
|
1.70
|
|
|
|
Total earning assets
|
49,743
|
867
|
3.51
|
|
|
52,385
|
955
|
3.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
878
|
|
|
|
|
792
|
|
|
|
|
Allowance for loan
losses
|
(883)
|
|
|
|
|
(1,048)
|
|
|
|
|
Accrued income and other
assets
|
4,410
|
|
|
|
|
4,756
|
|
|
|
|
|
Total assets
|
$ 54,148
|
|
|
|
|
$ 56,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and NOW
deposits
|
$ 18,003
|
23
|
0.26
|
|
|
$ 15,709
|
25
|
0.32
|
|
|
Savings deposits
|
1,443
|
1
|
0.09
|
|
|
1,407
|
-
|
0.07
|
|
|
Customer certificates of
deposit
|
5,559
|
20
|
0.73
|
|
|
6,049
|
30
|
0.97
|
|
|
|
Total interest-bearing core
deposits
|
25,005
|
44
|
0.36
|
|
|
23,165
|
55
|
0.48
|
|
|
Other time deposits
|
-
|
-
|
-
|
|
|
584
|
9
|
3.18
|
|
|
Foreign office time
deposits
|
413
|
1
|
0.50
|
|
|
453
|
-
|
0.22
|
|
|
|
Total interest-bearing
deposits
|
25,418
|
45
|
0.36
|
|
|
24,202
|
64
|
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
103
|
-
|
0.21
|
|
|
241
|
-
|
0.19
|
|
|
Medium- and long-term
debt
|
5,974
|
34
|
1.15
|
|
|
10,169
|
51
|
0.99
|
|
|
|
Total interest-bearing
sources
|
31,495
|
79
|
0.51
|
|
|
34,612
|
115
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
15,623
|
|
|
|
|
14,923
|
|
|
|
|
Accrued expenses and other
liabilities
|
1,126
|
|
|
|
|
1,067
|
|
|
|
|
Total shareholders'
equity
|
5,904
|
|
|
|
|
6,283
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$ 54,148
|
|
|
|
|
$ 56,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/rate spread
(FTE)
|
|
$ 788
|
3.00
|
|
|
|
$ 840
|
3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE adjustment
|
|
$
2
|
|
|
|
|
$
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing
|
|
|
|
|
|
|
|
|
|
|
sources of
funds
|
|
|
0.19
|
|
|
|
|
0.23
|
|
|
Net interest margin (as a
percentage
|
|
|
|
|
|
|
|
|
|
|
of average earning assets)
(FTE) (a)
|
|
|
3.19
|
%
|
|
|
|
3.23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excess liquidity,
represented by average balances deposited with the Federal Reserve
Bank, reduced the net interest margin by 18 basis points and 24
basis points year-to-date in 2011 and 2010, respectively.
Excluding excess liquidity, the net interest margin would
have been 3.37% in 2011 and 3.47% in 2010.
See Reconciliation of Non-GAAP
Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET INTEREST INCOME
(FTE) (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
June 30,
2011
|
|
March 31,
2011
|
|
June 30,
2010
|
|
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
Average
|
|
(dollar amounts in millions)
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
Balance
|
Interest
|
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans
|
$
21,677
|
$
196
|
3.65
|
%
|
|
$
21,496
|
$
200
|
3.76
|
%
|
|
$
20,910
|
$
206
|
3.95
|
%
|
|
Real estate construction
loans
|
1,881
|
17
|
3.75
|
|
|
2,179
|
19
|
3.51
|
|
|
2,987
|
23
|
3.13
|
|
|
Commercial mortgage
loans
|
9,636
|
96
|
3.98
|
|
|
9,790
|
95
|
3.95
|
|
|
10,372
|
109
|
4.20
|
|
|
Residential mortgage
loans
|
1,525
|
21
|
5.50
|
|
|
1,599
|
21
|
5.24
|
|
|
1,607
|
22
|
5.44
|
|
|
Consumer loans
|
2,243
|
20
|
3.42
|
|
|
2,281
|
19
|
3.42
|
|
|
2,448
|
22
|
3.56
|
|
|
Lease financing
|
958
|
8
|
3.50
|
|
|
987
|
9
|
3.62
|
|
|
1,108
|
10
|
3.72
|
|
|
International loans
|
1,254
|
12
|
3.80
|
|
|
1,219
|
12
|
3.87
|
|
|
1,240
|
13
|
4.07
|
|
|
Business loan swap
income
|
-
|
-
|
-
|
|
|
-
|
1
|
-
|
|
|
-
|
9
|
-
|
|
|
|
Total loans
|
39,174
|
370
|
3.79
|
|
|
39,551
|
376
|
3.85
|
|
|
40,672
|
414
|
4.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auction-rate securities
available-for-sale
|
500
|
1
|
0.71
|
|
|
554
|
1
|
0.88
|
|
|
816
|
3
|
1.19
|
|
|
Other investment securities
available-for-sale
|
6,907
|
58
|
3.40
|
|
|
6,757
|
56
|
3.37
|
|
|
6,446
|
58
|
3.71
|
|
|
|
Total investment securities
available-for-sale
|
7,407
|
59
|
3.20
|
|
|
7,311
|
57
|
3.17
|
|
|
7,262
|
61
|
3.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and
securities purchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
under agreements to
resell
|
2
|
-
|
0.33
|
|
|
3
|
-
|
0.32
|
|
|
1
|
-
|
1.35
|
|
|
Interest-bearing deposits with
banks (a)
|
3,433
|
3
|
0.25
|
|
|
2,354
|
1
|
0.26
|
|
|
3,768
|
3
|
0.25
|
|
|
Other short-term
investments
|
120
|
-
|
1.39
|
|
|
128
|
1
|
2.68
|
|
|
132
|
-
|
1.65
|
|
|
|
Total earning assets
|
50,136
|
432
|
3.46
|
|
|
49,347
|
435
|
3.57
|
|
|
51,835
|
478
|
3.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks
|
872
|
|
|
|
|
884
|
|
|
|
|
795
|
|
|
|
|
Allowance for loan
losses
|
(859)
|
|
|
|
|
(908)
|
|
|
|
|
(1,037)
|
|
|
|
|
Accrued income and other
assets
|
4,368
|
|
|
|
|
4,452
|
|
|
|
|
4,665
|
|
|
|
|
|
Total assets
|
$
54,517
|
|
|
|
|
$
53,775
|
|
|
|
|
$
56,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and NOW
deposits
|
$
18,207
|
11
|
0.26
|
|
|
$
17,797
|
12
|
0.26
|
|
|
$
16,354
|
13
|
0.32
|
|
|
Savings deposits
|
1,465
|
1
|
0.09
|
|
|
1,421
|
-
|
0.09
|
|
|
1,429
|
-
|
0.07
|
|
|
Customer certificates of
deposit
|
5,609
|
10
|
0.70
|
|
|
5,509
|
10
|
0.76
|
|
|
5,927
|
15
|
0.92
|
|
|
|
Total interest-bearing core
deposits
|
25,281
|
22
|
0.35
|
|
|
24,727
|
22
|
0.36
|
|
|
23,710
|
28
|
0.45
|
|
|
Other time deposits
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
|
|
295
|
1
|
2.14
|
|
|
Foreign office time
deposits
|
413
|
1
|
0.52
|
|
|
412
|
-
|
0.49
|
|
|
448
|
-
|
0.23
|
|
|
|
Total interest-bearing
deposits
|
25,694
|
23
|
0.35
|
|
|
25,139
|
22
|
0.37
|
|
|
24,453
|
29
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
112
|
-
|
0.14
|
|
|
94
|
-
|
0.31
|
|
|
248
|
-
|
0.27
|
|
|
Medium- and long-term
debt
|
5,821
|
17
|
1.20
|
|
|
6,128
|
17
|
1.10
|
|
|
9,571
|
25
|
1.04
|
|
|
|
Total interest-bearing
sources
|
31,627
|
40
|
0.51
|
|
|
31,361
|
39
|
0.51
|
|
|
34,272
|
54
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
deposits
|
15,786
|
|
|
|
|
15,459
|
|
|
|
|
15,218
|
|
|
|
|
Accrued expenses and other
liabilities
|
1,132
|
|
|
|
|
1,120
|
|
|
|
|
1,060
|
|
|
|
|
Total shareholders'
equity
|
5,972
|
|
|
|
|
5,835
|
|
|
|
|
5,708
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
54,517
|
|
|
|
|
$
53,775
|
|
|
|
|
$
56,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/rate spread
(FTE)
|
|
$
392
|
2.95
|
|
|
|
$
396
|
3.06
|
|
|
|
$
424
|
3.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FTE adjustment
|
|
$
1
|
|
|
|
|
$
1
|
|
|
|
|
$
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of net
noninterest-bearing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sources of
funds
|
|
|
0.19
|
|
|
|
|
0.19
|
|
|
|
|
0.21
|
|
|
Net interest margin (as a
percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of average earning assets)
(FTE) (a)
|
|
|
3.14
|
%
|
|
|
|
3.25
|
%
|
|
|
|
3.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excess liquidity,
represented by average balances deposited with the Federal Reserve
Bank, reduced the net interest margin by 21 basis points and by 14
points in the second and first quarters of 2011, respectively and
by 23 basis points in the second quarter of 2010. Excluding
excess liquidity, the net interest margin would
have been 3.35%, 3.39% and 3.51% in each respective period.
See Reconciliation of Non-GAAP Financial Measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATISTICAL DATA
(unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
|
(in millions, except per share
data)
|
2011
|
|
2011
|
|
2010
|
|
2010
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans:
|
|
|
|
|
|
|
|
|
|
|
|
Floor
plan
|
$
1,478
|
|
$
1,893
|
|
$
2,017
|
|
$
1,693
|
|
$
1,586
|
|
|
Other
|
20,574
|
|
19,467
|
|
20,128
|
|
19,739
|
|
19,565
|
|
|
|
Total commercial
loans
|
22,052
|
|
21,360
|
|
22,145
|
|
21,432
|
|
21,151
|
|
|
Real estate construction
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate business line (a)
|
1,343
|
|
1,606
|
|
1,826
|
|
2,023
|
|
2,345
|
|
|
Other business
lines (b)
|
385
|
|
417
|
|
427
|
|
421
|
|
429
|
|
|
|
Total real estate construction
loans
|
1,728
|
|
2,023
|
|
2,253
|
|
2,444
|
|
2,774
|
|
|
Commercial mortgage
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real
Estate business line (a)
|
1,930
|
|
1,918
|
|
1,937
|
|
2,091
|
|
2,035
|
|
|
Other business
lines (b)
|
7,649
|
|
7,779
|
|
7,830
|
|
8,089
|
|
8,283
|
|
|
|
Total commercial mortgage
loans
|
9,579
|
|
9,697
|
|
9,767
|
|
10,180
|
|
10,318
|
|
|
Residential mortgage
loans
|
1,491
|
|
1,550
|
|
1,619
|
|
1,586
|
|
1,606
|
|
|
Consumer loans:
|
|
|
|
|
|
|
|
|
|
|
|
Home
equity
|
1,622
|
|
1,661
|
|
1,704
|
|
1,736
|
|
1,761
|
|
|
Other
consumer
|
610
|
|
601
|
|
607
|
|
667
|
|
682
|
|
|
|
Total consumer loans
|
2,232
|
|
2,262
|
|
2,311
|
|
2,403
|
|
2,443
|
|
|
Lease financing
|
949
|
|
958
|
|
1,009
|
|
1,053
|
|
1,084
|
|
|
International loans
|
1,162
|
|
1,326
|
|
1,132
|
|
1,182
|
|
1,226
|
|
|
|
Total loans
|
$ 39,193
|
|
$
39,176
|
|
$
40,236
|
|
$
40,280
|
|
$ 40,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
$
150
|
|
$
150
|
|
$
150
|
|
$
150
|
|
$
150
|
|
|
Loan servicing rights
|
4
|
|
4
|
|
5
|
|
5
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 common capital ratio (c)
(d)
|
10.53
|
%
|
10.35
|
%
|
10.13
|
%
|
9.96
|
%
|
9.81
|
%
|
|
Tier 1 risk-based capital ratio
(d)
|
10.53
|
|
10.35
|
|
10.13
|
|
9.96
|
|
10.64
|
|
|
Total risk-based capital ratio
(d)
|
14.81
|
|
14.80
|
|
14.54
|
|
14.37
|
|
15.03
|
|
|
Leverage ratio (d)
|
11.39
|
|
11.37
|
|
11.26
|
|
10.91
|
|
11.36
|
|
|
Tangible common equity ratio
(c)
|
10.90
|
|
10.43
|
|
10.54
|
|
10.39
|
|
10.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
$
34.15
|
|
$
33.25
|
|
$
32.82
|
|
$
33.19
|
|
$
32.85
|
|
|
Market value per share for the
quarter:
|
|
|
|
|
|
|
|
|
|
|
|
High
|
39.00
|
|
43.53
|
|
43.44
|
|
40.21
|
|
45.85
|
|
|
Low
|
33.08
|
|
36.20
|
|
34.43
|
|
33.11
|
|
35.44
|
|
|
Close
|
34.57
|
|
36.72
|
|
42.24
|
|
37.15
|
|
36.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly ratios:
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
common shareholders' equity
|
6.41
|
%
|
7.08
|
%
|
6.53
|
%
|
4.07
|
%
|
4.89
|
%
|
|
Return on average
assets
|
0.70
|
|
0.77
|
|
0.71
|
|
0.43
|
|
0.50
|
|
|
Efficiency
ratio
|
69.33
|
|
69.05
|
|
70.38
|
|
67.88
|
|
64.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of banking
centers
|
446
|
|
445
|
|
444
|
|
441
|
|
437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees - full time
equivalent
|
8,915
|
|
8,955
|
|
9,001
|
|
9,075
|
|
9,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Primarily loans to real
estate investors and developers.
|
|
(b) Primarily loans secured by
owner-occupied real estate.
|
|
(c) See Reconciliation of
Non-GAAP Financial Measures.
|
|
(d) June 30, 2011 ratios are
estimated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PARENT COMPANY ONLY BALANCE
SHEETS (unaudited)
|
|
Comerica
Incorporated
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
June
30,
|
|
(in millions, except share
data)
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and due from subsidiary
bank
|
$
14
|
$
-
|
$
15
|
|
Short-term investments with
subsidiary bank
|
413
|
327
|
659
|
|
Other short-term
investments
|
90
|
86
|
83
|
|
Investment in subsidiaries,
principally banks
|
6,122
|
5,957
|
5,961
|
|
Premises and
equipment
|
3
|
4
|
4
|
|
Other assets
|
162
|
181
|
190
|
|
Total
assets
|
$ 6,804
|
$
6,555
|
$
6,912
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
Medium- and long-term
debt
|
$
635
|
$
635
|
$
999
|
|
Other liabilities
|
131
|
127
|
121
|
|
Total
liabilities
|
766
|
762
|
1,120
|
|
|
|
|
|
|
Common stock - $5 par
value:
|
|
|
|
|
Authorized -
325,000,000 shares
|
|
|
|
|
Issued -
203,878,110 shares
|
1,019
|
1,019
|
1,019
|
|
Capital surplus
|
1,472
|
1,481
|
1,467
|
|
Accumulated other comprehensive
loss
|
(308)
|
(389)
|
(240)
|
|
Retained earnings
|
5,395
|
5,247
|
5,124
|
|
Less cost of common stock in
treasury - 27,092,427 shares at 6/30/11, 27,342,518
shares
|
|
|
|
|
at 12/31/10, and
27,561,412 shares at 6/30/10
|
(1,540)
|
(1,565)
|
(1,578)
|
|
Total
shareholders' equity
|
6,038
|
5,793
|
5,792
|
|
Total
liabilities and shareholders' equity
|
$ 6,804
|
$
6,555
|
$
6,912
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF
CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
Common
Stock
|
|
Other
|
|
|
Total
|
|
|
Preferred
|
Shares
|
|
Capital
|
Comprehensive
|
Retained
|
Treasury
|
Shareholders'
|
|
(in millions, except per share data)
|
Stock
|
Outstanding
|
Amount
|
Surplus
|
Loss
|
Earnings
|
Stock
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT DECEMBER 31,
2009
|
$
2,151
|
151.2
|
$
894
|
$ 740
|
$
(336)
|
$ 5,161
|
$
(1,581)
|
$
7,029
|
|
Net income
|
-
|
-
|
-
|
-
|
-
|
122
|
-
|
122
|
|
Other comprehensive income, net
of tax
|
-
|
-
|
-
|
-
|
96
|
-
|
-
|
96
|
|
Total comprehensive
income
|
|
|
|
|
|
|
|
218
|
|
Cash dividends declared on
preferred stock
|
-
|
-
|
-
|
-
|
-
|
(38)
|
-
|
(38)
|
|
Cash dividends declared on
common stock ($0.10 per share)
|
-
|
-
|
-
|
-
|
-
|
(18)
|
-
|
(18)
|
|
Purchase of common
stock
|
-
|
-
|
-
|
-
|
-
|
-
|
(4)
|
(4)
|
|
Issuance of common
stock
|
-
|
25.1
|
125
|
724
|
-
|
-
|
-
|
849
|
|
Redemption of preferred
stock
|
(2,250)
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,250)
|
|
Redemption discount accretion on
preferred stock
|
94
|
-
|
-
|
-
|
-
|
(94)
|
-
|
-
|
|
Accretion of discount on
preferred stock
|
5
|
-
|
-
|
-
|
-
|
(5)
|
-
|
-
|
|
Net issuance of common stock
under employee stock plans
|
-
|
-
|
-
|
(5)
|
-
|
(4)
|
6
|
(3)
|
|
Share-based
compensation
|
-
|
-
|
-
|
11
|
-
|
-
|
-
|
11
|
|
Other
|
-
|
-
|
-
|
(3)
|
-
|
-
|
1
|
(2)
|
|
BALANCE AT JUNE 30,
2010
|
$
-
|
176.3
|
$ 1,019
|
$ 1,467
|
$
(240)
|
$ 5,124
|
$
(1,578)
|
$
5,792
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE AT DECEMBER 31,
2010
|
$
-
|
176.5
|
$ 1,019
|
$ 1,481
|
$
(389)
|
$ 5,247
|
$
(1,565)
|
$
5,793
|
|
Net income
|
-
|
-
|
-
|
-
|
-
|
199
|
-
|
199
|
|
Other comprehensive income, net
of tax
|
-
|
-
|
-
|
-
|
81
|
-
|
-
|
81
|
|
Total comprehensive
income
|
|
|
|
|
|
|
|
280
|
|
Cash dividends declared on
common stock ($0.20 per share)
|
-
|
-
|
-
|
-
|
-
|
(35)
|
-
|
(35)
|
|
Purchase of common
stock
|
-
|
(0.5)
|
-
|
-
|
-
|
-
|
(21)
|
(21)
|
|
Net issuance of common stock
under employee stock plans
|
-
|
0.8
|
-
|
(30)
|
-
|
(16)
|
46
|
-
|
|
Share-based
compensation
|
-
|
-
|
-
|
21
|
-
|
-
|
-
|
21
|
|
BALANCE AT JUNE 30,
2011
|
$
-
|
176.8
|
$ 1,019
|
$ 1,472
|
$
(308)
|
$ 5,395
|
$
(1,540)
|
$
6,038
|
|
|
|
|
|
|
|
|
|
|
BUSINESS SEGMENT FINANCIAL
RESULTS (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2011
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
342
|
|
$ 141
|
|
$
48
|
|
$ (147)
|
|
$
8
|
|
$
392
|
|
|
Provision for loan
losses
|
6
|
|
24
|
|
14
|
|
-
|
|
3
|
|
47
|
|
|
Noninterest income
|
79
|
|
46
|
|
63
|
|
11
|
|
3
|
|
202
|
|
|
Noninterest expenses
|
158
|
|
162
|
|
76
|
|
3
|
|
10
|
|
409
|
|
|
Provision (benefit) for income
taxes (FTE)
|
81
|
|
4
|
|
9
|
|
(52)
|
|
-
|
|
42
|
|
|
Net income (loss)
|
$
176
|
|
$
(3)
|
|
$
12
|
|
$ (87)
|
|
$
(2)
|
|
$
96
|
|
|
Net credit-related
charge-offs
|
$
54
|
|
$
22
|
|
$
14
|
|
$
-
|
|
$
-
|
|
$
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 29,893
|
|
$ 5,453
|
|
$
4,728
|
|
$ 9,406
|
|
$ 5,037
|
|
$ 54,517
|
|
|
Loans
|
29,380
|
|
4,999
|
|
4,742
|
|
48
|
|
5
|
|
39,174
|
|
|
Deposits
|
20,396
|
|
17,737
|
|
2,978
|
|
239
|
|
130
|
|
41,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
2.35
|
%
|
(0.06)
|
%
|
1.03
|
%
|
N/M
|
|
N/M
|
|
0.70
|
%
|
|
Net interest margin
(b)
|
4.65
|
|
3.22
|
|
4.07
|
|
N/M
|
|
N/M
|
|
3.14
|
|
|
Efficiency ratio
|
37.41
|
|
86.48
|
|
71.40
|
|
N/M
|
|
N/M
|
|
69.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
2011
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
341
|
|
$ 139
|
|
$
44
|
|
$ (135)
|
|
$
7
|
|
$
396
|
|
|
Provision for loan
losses
|
18
|
|
23
|
|
8
|
|
-
|
|
-
|
|
49
|
|
|
Noninterest income
|
77
|
|
42
|
|
64
|
|
16
|
|
8
|
|
207
|
|
|
Noninterest expenses
|
160
|
|
162
|
|
78
|
|
3
|
|
12
|
|
415
|
|
|
Provision (benefit) for income
taxes (FTE)
|
73
|
|
(2)
|
|
8
|
|
(46)
|
|
3
|
|
36
|
|
|
Net income (loss)
|
$
167
|
|
$
(2)
|
|
$
14
|
|
$ (76)
|
|
$
-
|
|
$
103
|
|
|
Net credit-related
charge-offs
|
$
73
|
|
$
23
|
|
$
5
|
|
$
-
|
|
$
-
|
|
$
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 30,091
|
|
$ 5,558
|
|
$
4,809
|
|
$ 9,314
|
|
$ 4,003
|
|
$ 53,775
|
|
|
Loans
|
29,609
|
|
5,106
|
|
4,807
|
|
22
|
|
7
|
|
39,551
|
|
|
Deposits
|
20,084
|
|
17,360
|
|
2,800
|
|
249
|
|
105
|
|
40,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
2.22
|
%
|
(0.05)
|
%
|
1.14
|
%
|
N/M
|
|
N/M
|
|
0.77
|
%
|
|
Net interest margin
(b)
|
4.66
|
|
3.25
|
|
3.76
|
|
N/M
|
|
N/M
|
|
3.25
|
|
|
Efficiency ratio
|
38.14
|
|
89.19
|
|
74.38
|
|
N/M
|
|
N/M
|
|
69.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
|
|
Retail
|
|
Wealth
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2010
|
Bank
|
|
Bank
|
|
Management
|
|
Finance
|
|
Other
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
351
|
|
$ 134
|
|
$
45
|
|
$ (103)
|
|
$
(3)
|
|
$
424
|
|
|
Provision for loan
losses
|
83
|
|
20
|
|
19
|
|
-
|
|
4
|
|
126
|
|
|
Noninterest income
|
78
|
|
42
|
|
61
|
|
13
|
|
-
|
|
194
|
|
|
Noninterest expenses
|
157
|
|
160
|
|
79
|
|
2
|
|
(1)
|
|
397
|
|
|
Provision (benefit) for income
taxes (FTE)
|
54
|
|
(1)
|
|
3
|
|
(35)
|
|
4
|
|
25
|
|
|
Net income (loss)
|
$
135
|
|
$
(3)
|
|
$
5
|
|
$ (57)
|
|
$ (10)
|
|
$
70
|
|
|
Net credit-related
charge-offs
|
$
113
|
|
$
22
|
|
$
11
|
|
$
-
|
|
$
-
|
|
$
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 30,609
|
|
$ 5,937
|
|
$
4,903
|
|
$ 9,343
|
|
$ 5,466
|
|
$ 56,258
|
|
|
Loans
|
30,353
|
|
5,446
|
|
4,840
|
|
36
|
|
(3)
|
|
40,672
|
|
|
Deposits
|
19,069
|
|
16,930
|
|
2,924
|
|
653
|
|
95
|
|
39,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
1.75
|
%
|
(0.06)
|
%
|
0.43
|
%
|
N/M
|
|
N/M
|
|
0.50
|
%
|
|
Net interest margin
(b)
|
4.63
|
|
3.17
|
|
3.73
|
|
N/M
|
|
N/M
|
|
3.28
|
|
|
Efficiency ratio
|
36.92
|
|
89.14
|
|
77.57
|
|
N/M
|
|
N/M
|
|
64.47
|
|
|
(a) Return on average assets is
calculated based on the greater of average assets or average
liabilities and attributed equity.
|
|
(b) Net interest margin is
calculated based on the greater of average earning assets or
average deposits and purchased funds.
|
|
FTE - Fully Taxable
Equivalent
|
|
N/M - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET SEGMENT FINANCIAL RESULTS
(unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in
millions)
Three Months Ended June 30,
2011
|
Midwest
|
|
Western
|
|
Texas
|
|
Florida
|
|
Other
Markets
|
|
International
|
|
Finance
&
Other
Businesses
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
204
|
|
$
166
|
|
$
89
|
|
$
12
|
|
$
41
|
|
$
19
|
|
$
(139)
|
|
$
392
|
|
|
Provision for loan
losses
|
15
|
|
20
|
|
(2)
|
|
11
|
|
5
|
|
(5)
|
|
3
|
|
47
|
|
|
Noninterest income
|
100
|
|
37
|
|
25
|
|
4
|
|
13
|
|
9
|
|
14
|
|
202
|
|
|
Noninterest expenses
|
183
|
|
108
|
|
63
|
|
12
|
|
21
|
|
9
|
|
13
|
|
409
|
|
|
Provision (benefit) for income
taxes (FTE)
|
44
|
|
25
|
|
20
|
|
(2)
|
|
(2)
|
|
9
|
|
(52)
|
|
42
|
|
|
Net income (loss)
|
$
62
|
|
$
50
|
|
$
33
|
|
$
(5)
|
|
$
30
|
|
$
15
|
|
$
(89)
|
|
$
96
|
|
|
Net credit-related charge-offs
(recoveries)
|
$
37
|
|
$
26
|
|
$
3
|
|
$
15
|
|
$
11
|
|
$
(2)
|
|
$
-
|
|
$
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 14,267
|
|
$ 12,329
|
|
$ 7,081
|
|
$ 1,534
|
|
$ 3,101
|
|
$
1,762
|
|
$
14,443
|
|
$ 54,517
|
|
|
Loans
|
14,051
|
|
12,121
|
|
6,871
|
|
1,565
|
|
2,823
|
|
1,690
|
|
53
|
|
39,174
|
|
|
Deposits
|
18,319
|
|
12,458
|
|
6,175
|
|
396
|
|
2,451
|
|
1,312
|
|
369
|
|
41,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
1.28
|
%
|
1.48
|
%
|
1.84
|
%
|
(1.29)
|
%
|
3.89
|
%
|
3.33
|
%
|
N/M
|
|
0.70
|
%
|
|
Net interest margin
(b)
|
4.46
|
|
5.35
|
|
5.19
|
|
3.14
|
|
5.88
|
|
4.40
|
|
N/M
|
|
3.14
|
|
|
Efficiency ratio
|
60.30
|
|
53.19
|
|
55.16
|
|
77.62
|
|
40.47
|
|
33.16
|
|
N/M
|
|
69.33
|
|
|
Three Months Ended March 31,
2011
|
Midwest
|
|
Western
|
|
Texas
|
|
Florida
|
|
Other
Markets
|
|
International
|
|
Finance
&
Other
Businesses
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
203
|
|
$
164
|
|
$
87
|
|
$
11
|
|
$
41
|
|
$
18
|
|
$
(128)
|
|
$
396
|
|
|
Provision for loan
losses
|
34
|
|
11
|
|
4
|
|
8
|
|
(7)
|
|
(1)
|
|
-
|
|
49
|
|
|
Noninterest income
|
100
|
|
37
|
|
23
|
|
4
|
|
11
|
|
8
|
|
24
|
|
207
|
|
|
Noninterest expenses
|
188
|
|
109
|
|
61
|
|
12
|
|
21
|
|
9
|
|
15
|
|
415
|
|
|
Provision (benefit) for income
taxes (FTE)
|
28
|
|
30
|
|
16
|
|
(1)
|
|
-
|
|
6
|
|
(43)
|
|
36
|
|
|
Net income (loss)
|
$
53
|
|
$
51
|
|
$
29
|
|
$
(4)
|
|
$
38
|
|
$
12
|
|
$
(76)
|
|
$
103
|
|
|
Net credit-related
charge-offs
|
$
46
|
|
$
26
|
|
$
8
|
|
$
8
|
|
$
9
|
|
$
4
|
|
$
-
|
|
$
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 14,307
|
|
$ 12,590
|
|
$ 7,031
|
|
$ 1,553
|
|
$ 3,242
|
|
$
1,735
|
|
$
13,317
|
|
$ 53,775
|
|
|
Loans
|
14,104
|
|
12,383
|
|
6,824
|
|
1,580
|
|
2,960
|
|
1,671
|
|
29
|
|
39,551
|
|
|
Deposits
|
18,230
|
|
12,235
|
|
5,786
|
|
367
|
|
2,298
|
|
1,328
|
|
354
|
|
40,598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
1.08
|
%
|
1.54
|
%
|
1.65
|
%
|
(0.93)
|
%
|
4.70
|
%
|
2.79
|
%
|
N/M
|
|
0.77
|
%
|
|
Net interest margin
(b)
|
4.49
|
|
5.37
|
|
5.17
|
|
2.82
|
|
5.73
|
|
4.34
|
|
N/M
|
|
3.25
|
|
|
Efficiency ratio
|
61.99
|
|
54.36
|
|
55.39
|
|
80.08
|
|
42.38
|
|
34.62
|
|
N/M
|
|
69.05
|
|
|
Three Months Ended June 30,
2010
|
Midwest
|
|
Western
|
|
Texas
|
|
Florida
|
|
Other
Markets
|
|
International
|
|
Finance
&
Other
Businesses
|
|
Total
|
|
|
Earnings summary:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (expense)
(FTE)
|
$
211
|
|
$
163
|
|
$
81
|
|
$
12
|
|
$
44
|
|
$
19
|
|
$
(106)
|
|
$
424
|
|
|
Provision for loan
losses
|
34
|
|
27
|
|
(1)
|
|
17
|
|
50
|
|
(5)
|
|
4
|
|
126
|
|
|
Noninterest income
|
97
|
|
33
|
|
23
|
|
4
|
|
15
|
|
9
|
|
13
|
|
194
|
|
|
Noninterest expenses
|
180
|
|
110
|
|
65
|
|
12
|
|
21
|
|
8
|
|
1
|
|
397
|
|
|
Provision (benefit) for income
taxes (FTE)
|
33
|
|
21
|
|
14
|
|
(5)
|
|
(16)
|
|
9
|
|
(31)
|
|
25
|
|
|
Net income (loss)
|
$
61
|
|
$
38
|
|
$
26
|
|
$
(8)
|
|
$
4
|
|
$
16
|
|
$
(67)
|
|
$
70
|
|
|
Net credit-related
charge-offs
|
$
44
|
|
$
47
|
|
$
8
|
|
$
7
|
|
$
40
|
|
$
-
|
|
$
-
|
|
$
146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected average
balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$ 14,626
|
|
$ 13,006
|
|
$ 6,652
|
|
$ 1,576
|
|
$ 3,934
|
|
$
1,655
|
|
$
14,809
|
|
$ 56,258
|
|
|
Loans
|
14,592
|
|
12,792
|
|
6,428
|
|
1,575
|
|
3,661
|
|
1,591
|
|
33
|
|
40,672
|
|
|
Deposits
|
17,988
|
|
11,951
|
|
5,316
|
|
404
|
|
2,212
|
|
1,052
|
|
748
|
|
39,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statistical data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
(a)
|
1.25
|
%
|
1.15
|
%
|
1.54
|
%
|
(2.18)
|
%
|
0.46
|
%
|
3.90
|
%
|
N/M
|
|
0.50
|
%
|
|
Net interest margin
(b)
|
4.66
|
|
5.13
|
|
5.05
|
|
2.94
|
|
4.91
|
|
4.62
|
|
N/M
|
|
3.28
|
|
|
Efficiency ratio
|
58.16
|
|
56.15
|
|
62.38
|
|
76.90
|
|
38.26
|
|
30.48
|
|
N/M
|
|
64.47
|
|
|
(a) Return on average assets is
calculated based on the greater of average assets or average
liabilities and attributed equity.
|
|
(b) Net interest margin is
calculated based on the greater of average earning assets or
average deposits and purchased funds.
|
|
FTE - Fully Taxable
Equivalent
|
|
N/M - Not Meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended June 30,
|
|
(dollar amounts in
millions)
|
2011
|
2010
|
|
Impact of Excess Liquidity on
Net Interest Margin (FTE):
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
788
|
|
|
$
840
|
|
|
Less:
|
|
|
|
|
|
|
|
Interest earned on excess
liquidity (a)
|
|
3
|
|
|
5
|
|
|
Net interest income (FTE),
excluding excess liquidity
|
|
$
785
|
|
|
$
835
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets
|
|
$
49,743
|
|
|
$
52,385
|
|
|
Less:
|
|
|
|
|
|
|
|
Average net unrealized
gains on
|
|
|
|
|
|
|
|
investment securities
available-for-sale
|
|
48
|
|
|
71
|
|
|
Average earning assets for net
interest margin (FTE)
|
|
49,695
|
|
|
52,314
|
|
|
Less:
|
|
|
|
|
|
|
|
Excess liquidity
(a)
|
|
2,843
|
|
|
3,905
|
|
|
Average earning assets for net
interest margin (FTE),
|
|
|
|
|
|
|
|
excluding excess
liquidity
|
|
$
46,852
|
|
|
$
48,409
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(FTE)
|
|
3.19
|
%
|
|
3.23
|
%
|
|
Net interest margin (FTE),
excluding excess liquidity
|
|
3.37
|
|
|
3.47
|
|
|
|
|
|
|
|
|
|
|
Impact of excess liquidity on
net interest margin (FTE)
|
|
(0.18)
|
|
|
(0.24)
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
2nd
Qtr
|
1st
Qtr
|
|
4th
Qtr
|
3rd
Qtr
|
2nd
Qtr
|
|
Impact of Excess Liquidity on
Net Interest Margin (FTE):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(FTE)
|
|
$
392
|
|
|
$
396
|
|
|
$
406
|
|
|
$
405
|
|
|
$
424
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest earned on excess
liquidity (a)
|
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
|
Net interest income (FTE),
excluding excess liquidity
|
|
$
390
|
|
|
$
395
|
|
|
$
405
|
|
|
$
403
|
|
|
$
422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets
|
|
$ 50,136
|
|
|
$ 49,347
|
|
|
$ 49,102
|
|
|
$ 50,189
|
|
|
$ 51,835
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average net unrealized
gains on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment securities
available-for-sale
|
|
74
|
|
|
22
|
|
|
139
|
|
|
180
|
|
|
80
|
|
|
Average earning assets for net
interest margin (FTE)
|
|
50,062
|
|
|
49,325
|
|
|
48,963
|
|
|
50,009
|
|
|
51,755
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excess liquidity
(a)
|
|
3,382
|
|
|
2,297
|
|
|
1,793
|
|
|
2,983
|
|
|
3,719
|
|
|
Average earning assets for net
interest margin (FTE),
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding excess
liquidity
|
|
$ 46,680
|
|
|
$ 47,028
|
|
|
$ 47,170
|
|
|
$ 47,026
|
|
|
$ 48,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(FTE)
|
|
3.14
|
%
|
|
3.25
|
%
|
|
3.29
|
%
|
|
3.23
|
%
|
|
3.28
|
%
|
|
Net interest margin (FTE),
excluding excess liquidity
|
|
3.35
|
|
|
3.39
|
|
|
3.41
|
|
|
3.42
|
|
|
3.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of excess liquidity on
net interest margin (FTE)
|
|
(0.21)
|
|
|
(0.14)
|
|
|
(0.12)
|
|
|
(0.19)
|
|
|
(0.23)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Excess liquidity represented
by interest earned on and average balances deposited with the
FRB.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The net interest margin (FTE),
excluding excess liquidity, removes interest earned on balances
deposited with the FRB from net interest income (FTE) and
average balances deposited with
the FRB from average earning assets from the numerator and
denominator of the net interest margin (FTE) ratio,
respectively. Comerica believes
this measurement provides meaningful information to investors,
regulators, management and others of the impact on net
interest income and net interest
margin resulting from Comerica's short-term investment in low
yielding instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES (unaudited)
|
|
Comerica Incorporated and
Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
March
31,
|
December
31,
|
September
30,
|
June
30,
|
|
|
2011
|
2011
|
2010
|
2010
|
2010
|
|
Tier 1 Common Capital
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (a)
(b)
|
|
$ 6,193
|
|
|
$ 6,107
|
|
|
$ 6,027
|
|
|
$ 5,940
|
|
|
$ 6,371
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust preferred
securities
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
495
|
|
|
Tier 1 common capital
(b)
|
|
$ 6,193
|
|
|
$ 6,107
|
|
|
$ 6,027
|
|
|
$ 5,940
|
|
|
$ 5,876
|
|
|
Risk-weighted assets (a)
(b)
|
|
$ 58,790
|
|
|
$ 58,998
|
|
|
$ 59,506
|
|
|
$ 59,608
|
|
|
$ 59,877
|
|
|
Tier 1 capital ratio
(b)
|
|
10.53
|
%
|
|
10.35
|
%
|
|
10.13
|
%
|
|
9.96
|
%
|
|
10.64
|
%
|
|
Tier 1 common capital ratio
(b)
|
|
10.53
|
|
|
10.35
|
|
|
10.13
|
|
|
9.96
|
|
|
9.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
Ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total common shareholders'
equity
|
|
$ 6,038
|
|
|
$ 5,877
|
|
|
$ 5,793
|
|
|
$ 5,857
|
|
|
$ 5,792
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
150
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
Other intangible
assets
|
|
4
|
|
|
5
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
Tangible common
equity
|
|
$ 5,884
|
|
|
$ 5,722
|
|
|
$ 5,637
|
|
|
$ 5,701
|
|
|
$ 5,636
|
|
|
Total assets
|
|
$ 54,141
|
|
|
$ 55,017
|
|
|
$ 53,667
|
|
|
$ 55,004
|
|
|
$ 55,885
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
150
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
150
|
|
|
Other intangible
assets
|
|
4
|
|
|
5
|
|
|
6
|
|
|
6
|
|
|
6
|
|
|
Tangible assets
|
|
$ 53,987
|
|
|
$ 54,862
|
|
|
$ 53,511
|
|
|
$ 54,848
|
|
|
$ 55,729
|
|
|
Common equity ratio
|
|
11.15
|
%
|
|
10.68
|
%
|
|
10.80
|
%
|
|
10.65
|
%
|
|
10.36
|
%
|
|
Tangible common equity
ratio
|
|
10.90
|
|
|
10.43
|
|
|
10.54
|
|
|
10.39
|
|
|
10.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Tier 1 capital and
risk-weighted assets as defined by regulation.
|
|
(b) June 30, 2011 Tier 1 capital
and risk-weighted assets are estimated.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Tier 1 common capital ratio
removes preferred stock and qualifying trust preferred securities
from Tier 1 capital as defined by and calculated in conformity with
bank regulations. The tangible common equity removes
preferred stock and the effect of intangible assets from capital
and the effect of intangible assets from total assets.
Comerica believes these measurements are meaningful measures
of capital adequacy used by investors, regulators, management and
others to evaluate the adequacy of common equity and to compare
against other companies in the industry.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Comerica Incorporated