DETROIT, Oct. 15 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record third quarter diluted earnings per share of $0.95, compared to
$0.83 in 1997, an increase of 14 percent. Net income was $154 million, up 13
percent from $137 million for the third quarter of 1997. Return on common
equity was 23.02 percent and return on assets was 1.82 percent, compared to
21.86 percent and 1.56 percent, respectively, for the third quarter of 1997.

Net income for the first nine months of 1998 was $2.75 per share or $449
million, compared to $2.34 or $391 million for the same period in 1997,
increases of 18 percent and 15 percent, respectively. Return on common equity
was 22.56 percent and return on assets was 1.72 percent for the first nine
months of 1998, compared to 21.20 percent and 1.50 percent, respectively, for
the first nine months of 1997.

"We generated record quarterly earnings as a result of our continuing
commitment to improve financial performance through revenue enhancement and
expense control, while maintaining our historically high level of asset
quality," said Eugene A. Miller, chairman and chief executive officer.

Net interest income for the third quarter of 1998 was $360 million, a
decrease of $1 million from the same period last year. Net interest income
and the net interest margin were both affected by the sale of $2.0 billion of
indirect consumer loans and non-relationship credit card receivables in the
second quarter of 1998. Excluding the impact of the consumer sale, net
interest income would have increased 5 percent. The net interest margin was
4.63 percent in the third quarter of 1998, compared to 4.48 percent for the
comparable quarter of 1997.

Noninterest income was $152 million for the third quarter of 1998,
compared to $136 million for the same quarter last year. Excluding the effect
of large nonrecurring items, acquisitions and divestitures in both periods,
noninterest income increased 12 percent in the third quarter of 1998, compared
to the third quarter of 1997.

Noninterest expenses were $254 million for the third quarter of 1998, up
$1 million or less than 1 percent from the third quarter of 1997.

The provision for credit losses was $21 million in the third quarter of
1998. Net charge-offs for the quarter were $21 million or 0.30 percent of
average total loans, compared with $26 million or 0.38 percent in the third
quarter of 1997. Nonperforming assets were $122 million or 0.43 percent of
loans and other real estate at September 30, 1998, compared to $132 million or
0.47 percent at September 30, 1997. The allowance as a percent of loans was
1.54 percent at September 30, 1998, compared to 1.47 percent at both
September 30, 1997 and December 31, 1997.

Assets totaled $34 billion at September 30, 1998, compared to $36 billion
one year earlier, while common shareholders' equity was $2.7 billion in 1998,
compared to $2.5 billion in 1997. Shares of common stock outstanding at
September 30, 1998 were 155 million compared to 158 million (on a post-split
basis) at September 30, 1997. Total loans were $28 billion and total deposits
were $22 billion at September 30, 1998 and 1997.

Comerica Incorporated is a multi-state financial services provider
headquartered in Detroit that operates banking subsidiaries in Michigan,
California, Texas and Florida. Comerica also operates banking subsidiaries in
Canada and Mexico.

CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
(in thousands, except per share data, average balances and ratios)

Three Months Ended
September 30
1998 1997

Per Share and Common Stock
Data
Diluted net income $0.95 $0.83
Cash dividends declared 0.32 0.29
Common shareholders' equity
(at September 30) 17.30 15.80

Average diluted shares 158,090 160,800

Key Ratios (in percent)
Return on average common
equity 23.02 21.86
Return on average assets 1.82 1.56
Average common equity as a
percent of average assets 7.68 6.91
Core capital ratio (estimated) 6.37
Total capital ratio (estimated) 10.71
Leverage ratio (estimated) 7.64

Average Balances (in millions)
Commercial loans (including
lease financing) $17,327 $14,817
International loans 2,405 2,011
Real estate construction loans 1,002 922
Commercial mortgage loans 3,831 3,565
Residential mortgage loans 1,266 1,664
Consumer loans 1,944 4,456

Total loans $27,775 $27,435
Earning assets 31,112 32,284
Total assets 33,974 35,154
Interest-bearing deposits 15,605 16,194
Noninterest-bearing deposits 6,173 5,809
Total interest-bearing
liabilities 24,530 26,217
Common shareholders' equity 2,610 2,430

Net Interest Income
Net interest
income (fully taxable
equivalent basis) $362,132 $363,840
Fully taxable equivalent
adjustment 1,697 2,259
Net interest margin (in percent) 4.63 4.48

Credit Quality
Nonaccrual loans $106,879 $94,557
Reduced-rate loans 7,615 10,702
Other real estate 7,563 26,371
Total nonperforming assets 122,057 131,630
Loans 90 days past due 28,438 52,003
Gross charge-offs 29,251 33,925
Recoveries 8,305 7,982
Net charge-offs 20,946 25,943

Allowance for credit losses
as a percentage of total
loans (in percent) 1.54 1.47
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent) 0.43 0.47
Net loans charged off as
a percentage of average
total loans (in percent) 0.30 0.38
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent) 360 313

Additional Data
Goodwill $347,719 $237,354
Core deposit intangible 19,363 24,681
Other intangibles 2,559 4,488
Loan servicing rights 3,774 31,548

Nine Months Ended
September 30
1998 1997

Per Share and Common Stock
Data
Diluted net income $2.75 $2.34
Cash dividends declared 0.96 0.86
Common shareholders' equity
(at September 30)

Average diluted shares 158,952 161,295

Key Ratios (in percent)
Return on average common
equity 22.56 21.20
Return on average assets 1.72 1.50
Average common equity as a
percent of average assets 7.40 6.86
Core capital ratio (estimated)
Total capital ratio (estimated)
Leverage ratio (estimated)

Average Balances (in millions)
Commercial loans (including
lease financing) $17,107 $14,434
International loans 2,251 1,908
Real estate construction loans 965 833
Commercial mortgage loans 3,744 3,519
Residential mortgage loans 1,396 1,700
Consumer loans 2,813 4,514

Total loans $28,276 $26,908
Earning assets 31,944 31,807
Total assets 34,833 34,618
Interest-bearing deposits 15,944 16,189
Noninterest-bearing deposits 6,112 5,734
Total interest-bearing
liabilities 25,471 25,788
Common shareholders' equity 2,579 2,376
Net Interest Income
Net interest
income (fully taxable
equivalent basis) $1,096,124 $1,084,169
Fully taxable equivalent
adjustment 5,603 7,275
Net interest margin (in percent) 4.58 4.55

Credit Quality
Nonaccrual loans
Reduced-rate loans
Other real estate
Total nonperforming assets
Loans 90 days past due
Gross charge-offs $95,881 $93,462
Recoveries 33,663 29,879
Net charge-offs 62,218 63,583

Allowance for credit losses
as a percentage of total
loans (in percent)
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent)
Net loans charged off as
a percentage of average
total loans (in percent) 0.29 0.32
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent)

Additional Data
Goodwill
Core deposit intangible
Other intangibles
Loan servicing rights

CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
(in thousands, except per share data)
Three Months Ended
September 30
1998 1997
Interest Income
Interest and fees on loans $583,747 $590,198
Interest on investment
securities:
Taxable 51,968 80,265
Exempt from federal income
tax 1,754 2,486
Total interest on investment
securities 53,722 82,751
Interest on short-term investments 2,093 1,722
Total interest income 639,562 674,671

Interest Expense
Interest on deposits 156,289 173,193
Interest on short-term borrowings:
Federal funds purchased and
securities sold under
agreements to repurchase 35,453 27,276
Other borrowed funds 10,724 22,813
Interest on medium- and long-term
debt 86,079 101,613
Net interest rate swap income (9,418) (11,805)
Total interest expense 279,127 313,090
Net interest income 360,435 361,581
Provision for credit losses 21,000 34,000
Net interest income after
provision for credit losses 339,435 327,581

Noninterest Income
Income from fiduciary
activities 40,888 37,622
Service charges on deposit
accounts 39,316 35,036
Securities gains 174 1,096
Other noninterest income 71,736 62,593
Total noninterest income 152,114 136,347

Noninterest Expenses
Salaries and employee benefits 142,252 135,311
Net occupancy expense 22,533 22,311
Equipment expense 14,959 15,055
Telecommunications expense 7,207 6,894
Other noninterest expenses 66,870 73,051
Total noninterest expenses 253,821 252,622
Income before income taxes 237,728 211,306
Provision for income taxes 83,238 74,239
Net Income $154,490 $137,067

Net income applicable to
common stock $150,215 $132,792

Basic net income per common share $0.97 $0.84
Diluted net income per common
share $0.95 $0.83

Cash dividends declared
on common stock $49,650 $45,253
Dividends per common share $0.32 $0.29

Nine Months Ended
September 30
1998 1997
Interest Income
Interest and fees on loans $1,781,164 $1,714,211
Interest on investment
securities:
Taxable 170,856 236,282
Exempt from federal income
tax 5,774 8,478
Total interest on investment
securities 176,630 244,760
Interest on short-term investments 6,859 6,269
Total interest income 1,964,653 1,965,240

Interest Expense
Interest on deposits 484,353 502,664
Interest on short-term borrowings:
Federal funds purchased and
securities sold under
agreements to repurchase 93,655 82,794
Other borrowed funds 41,536 79,399
Interest on medium- and long-term
debt 289,786 263,795
Net interest rate swap income (35,198) (40,306)
Total interest expense 874,132 888,346
Net interest income 1,090,521 1,076,894
Provision for credit losses 77,000 109,000
Net interest income after
provision for credit losses 1,013,521 967,894

Noninterest Income
Income from fiduciary
activities 123,632 106,871
Service charges on deposit
accounts 117,283 104,985
Securities gains 35 1,359
Other noninterest income 194,811 173,973
Total noninterest income 435,761 387,188

Noninterest Expenses
Salaries and employee benefits 415,013 403,669
Net occupancy expense 66,873 67,699
Equipment expense 45,250 46,288
Telecommunications expense 20,190 20,965
Other noninterest expenses 209,667 211,997
Total noninterest expenses 756,993 750,618
Income before income taxes 692,289 604,464
Provision for income taxes 243,033 213,915
Net Income $449,256 $390,549

Net income applicable to
common stock $436,431 $377,724

Basic net income per common share $2.80 $2.38
Diluted net income per common
share $2.75 $2.34

Cash dividends declared
on common stock $149,615 $136,276
Dividends per common share $0.96 $0.86

CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)

Sept. 30 Dec. 31
1998 1997
Assets
Cash and due from banks $1,364,063 $1,927,087

Short-term investments 129,057 202,957

Investment securities
available for sale 3,108,120 4,005,962

Commercial loans 17,361,281 15,805,549
International loans 2,524,159 2,085,090
Real estate construction
loans 1,037,284 940,910
Commercial mortgage loans 3,927,689 3,633,785
Residential mortgage loans 1,136,195 1,565,445
Consumer loans 1,882,347 4,347,665
Lease financing 598,259 516,600
Total loans 28,467,214 28,895,044
Less allowance for credit
losses (438,929) (424,147)
Net loans 28,028,285 28,470,897
Premises and equipment 361,171 380,157
Customers' liability on
acceptances outstanding 12,945 18,392
Accrued income and other
assets 1,372,573 1,286,946
Total assets $34,376,214 $36,292,398

Liabilities and Shareholders'
Equity
Demand deposits
(noninterest-bearing) $4,746,705 $6,761,202
Interest-bearing deposits 17,486,707 15,825,115
Total deposits 22,233,412 22,586,317

Federal funds purchased and
securities sold under
agreements to repurchase 2,147,048 592,860
Other borrowed funds 1,182,122 2,600,041
Acceptances outstanding 12,945 18,392
Accrued expenses and other
liabilities 227,983 446,625
Medium- and long-term debt 5,632,697 7,286,387
Total liabilities 31,436,207 33,530,622

Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
9/30/98, 12/31/97 and
9/30/97 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,187,518 shares
at 9/30/98, 156,815,367
shares at 12/31/97 and
105,239,666 shares at
9/30/97 785,938 784,077
Capital surplus 16,713 -
Unrealized gains and losses
on investment securities
available for sale 2,676 (1,937)
Retained earnings 1,999,197 1,731,419
Deferred compensation (3,110) (1,783)
Less cost of common stock in
treasury - 1,689,201 shares
at 9/30/98 (111,407) -
Total shareholders'
equity 2,940,007 2,761,776
Total liabilities and
shareholders' equity $34,376,214 $36,292,398

Sept. 30
1997
Assets
Cash and due from banks $1,886,293

Short-term investments 92,969

Investment securities
available for sale 4,716,940

Commercial loans 14,865,246
International loans 2,110,663
Real estate construction
loans 974,779
Commercial mortgage loans 3,574,011
Residential mortgage loans 1,642,226
Consumer loans 4,432,242
Lease financing 496,825
Total loans 28,095,992
Less allowance for credit
losses (412,582)
Net loans 27,683,410

Premises and equipment 384,202
Customers' liability on
acceptances outstanding 26,237
Accrued income and other
assets 1,114,832
Total assets $35,904,883

Liabilities and Shareholders'
Equity
Demand deposits
(noninterest-bearing) $6,420,063
Interest-bearing deposits 15,638,241
Total deposits 22,058,304

Federal funds purchased and
securities sold under
agreements to repurchase 625,469
Other borrowed funds 3,465,473
Acceptances outstanding 26,237
Accrued expenses and other
liabilities 369,597
Medium- and long-term debt 6,615,449
Total liabilities 33,160,529

Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
9/30/98, 12/31/97 and 9/30/97 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,187,518 shares
at 9/30/98, 156,815,367
shares at 12/31/97 and
105,239,666 shares at
9/30/97 526,198
Capital surplus -
Unrealized gains and losses
on investment securities
available for sale 7,606
Retained earnings 1,962,568
Deferred compensation (2,018)
Less cost of common stock in
treasury - 1,689,201 shares
at 9/30/98 -
Total shareholders' equity 2,744,354
Total liabilities and
shareholders' equity $35,904,883

SOURCE Comerica Incorporated
Company News On Call: http://www.prnewswire.com/comp/185650.html or fax, 800-758-5804,ext. 185650