/FIRST AND FINAL ADD -- DEW001 -- Comerica Earnings/
PRNewswire
(:CMA)
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
(in millions, except 2006 2005 2005 2005 2005
per share data)
INTEREST INCOME
Interest and fees on loans $723 $698 $674 $616 $566
Interest on investment securities 44 41 38 34 35
Interest on short-term investments 5 6 7 5 6
Total interest income 772 745 719 655 607
INTEREST EXPENSE
Interest on deposits 199 171 147 122 108
Interest on short-term borrowings 42 24 16 9 3
Interest on medium- and
long-term debt 52 49 44 41 36
Total interest expense 293 244 207 172 147
Net interest income 479 501 512 483 460
Provision for loan losses (27) (20) (30) 2 1
Net interest income after
provision for loan losses 506 521 542 481 459
NONINTEREST INCOME
Service charges on deposit accounts 54 55 55 54 54
Fiduciary income 45 44 44 43 46
Commercial lending fees 15 19 16 16 12
Letter of credit fees 16 14 18 18 20
Foreign exchange income 10 10 9 9 9
Brokerage fees 10 9 10 9 8
Investment advisory revenue, net 17 15 14 12 10
Card fees 11 11 10 9 9
Bank-owned life insurance 13 10 9 10 9
Warrant income 1 2 2 3 2
Net securities losses (2) - - - -
Net gain on sales of businesses - 55 1 - -
Other noninterest income 25 37 44 36 31
Total noninterest income 215 281 232 219 210
NONINTEREST EXPENSES
Salaries 206 225 209 197 189
Employee benefits 51 47 46 44 47
Total salaries and
employee benefits 257 272 255 241 236
Net occupancy expense 31 31 30 28 32
Equipment expense 14 14 14 14 14
Outside processing fee expense 21 22 19 20 17
Software expense 14 14 12 11 12
Customer services 13 19 29 10 11
Litigation and operational losses 1 4 4 7 3
Provision for credit losses on
lending-related commitments 13 25 (1) (3) (3)
Other noninterest expenses 85 86 60 55 52
Total noninterest expenses 449 487 422 383 374
Income before income taxes and
cumulative effect
of change in accounting principle 272 315 352 317 295
Provision for income taxes 70 108 114 100 96
Income before cumulative effect of
change in accounting principle 202 207 238 217 199
Cumulative effect of change in
accounting principle, net of tax (8) - - - -
NET INCOME $194 $207 $238 $217 $199
Basic earnings per common share:
Income before cumulative
effect of change in
accounting principle $1.25 $1.27 $1.43 $1.29 $1.18
Net income 1.20 1.27 1.43 1.29 1.18
Diluted earnings per common share:
Income before cumulative
effect of change in
accounting principle 1.23 1.25 1.41 1.28 1.16
Net income 1.18 1.25 1.41 1.28 1.16
Cash dividends declared on
common stock 96 90 92 92 93
Dividends per common share 0.59 0.55 0.55 0.55 0.55
First Quarter 2006 Compared To:
Fourth Quarter 2005 First Quarter 2005
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME
Interest and fees on loans $25 3.6% $157 27.7%
Interest on investment securities 3 6.4 9 26.5
Interest on short-term investments (1) (20.1) (1) (13.4)
Total interest income 27 3.6 165 27.2
INTEREST EXPENSE
Interest on deposits 28 15.9 91 84.3
Interest on short-term borrowings 18 74.0 39 N/M
Interest on medium- and long-term debt 3 7.5 16 45.8
Total interest expense 49 20.0 146 99.8
Net interest income (22) (4.4) 19 4.1
Provision for loan losses (7) (35.0) (28) N/M
Net interest income after
provision for loan losses (15) (2.9) 47 10.2
NONINTEREST INCOME
Service charges on deposit accounts (1) (2.3) - (0.7)
Fiduciary income 1 3.5 (1) (0.3)
Commercial lending fees (4) (19.9) 3 29.8
Letter of credit fees 2 16.3 (4) (22.9)
Foreign exchange income - 2.9 1 13.0
Brokerage fees 1 10.2 2 24.0
Investment advisory revenue, net 2 15.6 7 64.2
Card fees - (2.8) 2 27.6
Bank-owned life insurance 3 37.4 4 43.2
Warrant income (1) (62.4) (1) (67.2)
Net securities losses (2) N/M (2) N/M
Net gain on sales of businesses (55) N/M - N/M
Other noninterest income (12) (32.2) (6) (17.1)
Total noninterest income (66) (23.3) 5 2.4
NONINTEREST EXPENSES
Salaries (19) (8.7) 17 8.9
Employee benefits 4 10.0 4 8.6
Total salaries and employee benefits (15) (5.5) 21 8.8
Net occupancy expense - (2.4) (1) (4.4)
Equipment expense - (0.1) - (0.7)
Outside processing fee expense (1) (3.7) 4 21.3
Software expense - (1.8) 2 18.2
Customer services (6) (30.2) 2 24.7
Litigation and operational losses (3) (72.1) (2) (63.2)
Provision for credit losses on
lending-related commitments (12) (47.8) 16 N/M
Other noninterest expenses (1) (0.6) 33 60.9
Total noninterest expenses (38) (7.8) 75 20.0
Income before income taxes and
cumulative effect of change in
accounting principle (43) (13.4) (23) (7.7)
Provision for income taxes (38) (34.4) (26) (26.7)
Income before cumulative effect of
change in accounting principle (5) (2.6) 3 1.4
Cumulative effect of change in
accounting
principle, net of tax (8) N/M (8) N/M
NET INCOME $(13) (6.4)% $(5) (2.5)%
Basic earnings per common share:
Income before cumulative
effect of change in
accounting principle $(0.02) (1.6)% $0.07 5.9%
Net income (0.07) (5.5) 0.02 1.7
Diluted earnings per common share:
Income before cumulative effect
of change in accounting principle (0.02) (1.6) 0.07 6.0
Net income (0.07) (5.6) 0.02 1.7
Cash dividends declared on common
stock 6 7.0 3 3.4
Dividends per common share 0.04 7.3 0.04 7.3
N/M - Not meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
Balance at beginning of period $516 $558 $609 $636 $673
Loans charged-off:
Commercial 12 14 20 29 28
Real estate construction:
Real estate construction
business line - 1 1 - -
Other - - - - -
Total real estate
construction - 1 1 - -
Commercial mortgage:
Commercial real estate
business line - - - 2 2
Other 2 1 4 5 3
Total commercial
mortgage 2 1 4 7 5
Residential mortgage - 1 - - -
Consumer 3 3 6 3 3
Lease financing 6 18 13 3 3
International 2 - 3 1 7
Total loans charged-off 25 38 47 43 46
Recoveries on loans previously
charged-off:
Commercial 4 13 23 12 7
Real estate construction - - - - -
Commercial mortgage 2 1 1 1 -
Residential mortgage - - - - -
Consumer 1 2 2 - 1
Lease financing - - - - -
International 1 - - 1 -
Total recoveries 8 16 26 14 8
Net loans charged-off 17 22 21 29 38
Provision for loan losses (27) (20) (30) 2 1
Balance at end of period $472 $516 $558 $609 $636
Allowance for loan losses as a
percentage of total loans 1.06% 1.19% 1.33% 1.41% 1.52%
Net loans charged-off as a
percentage of average
total loans 0.14 0.20 0.18 0.27 0.36
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
Balance at beginning of period $33 $14 $15 $18 $21
Charge-offs on lending-related
commitments (1) 5 6 - - -
Provision for credit losses on
lending-related commitments 13 25 (1) (3) (3)
Balance at end of period $41 $33 $14 $15 $18
Unfunded lending-related
commitments sold $52 $20 $ - $18 $27
(1) Charge-offs result from the sale of unfunded lending-related commitments.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
SUMMARY OF NONPERFORMING
ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Commercial $53 $65 $81 $125 $161
Real estate construction:
Real estate
construction
business line 2 3 4 8 18
Other - - - 2 2
Total real estate
construction 2 3 4 10 20
Commercial mortgage:
Commercial real estate
business line 11 6 9 9 11
Other 29 29 35 32 38
Total commercial
mortgage 40 35 44 41 49
Residential mortgage 1 2 1 2 2
Consumer 2 2 1 2 1
Lease financing 7 13 39 9 12
International 17 18 16 23 24
Total nonaccrual
loans 122 138 186 212 269
Reduced-rate loans - - - - -
Total
nonperforming
loans 122 138 186 212 269
Other real estate 19 24 34 34 42
Nonaccrual debt securities - - - - -
Total
nonperforming
assets $141 $162 $220 $246 $311
Nonperforming loans as a
percentage of total loans 0.27% 0.32% 0.44% 0.49% 0.64%
Nonperforming assets as a
percentage of total loans,
other real estate and
nonaccrual debt securities 0.32 0.37 0.52 0.57 0.75
Allowance for loan losses as a
percentage of total
nonperforming assets 334 319 253 248 204
Loans past due 90 days or more
and still accruing $16 $16 $14 $24 $23
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $138 $186 $212 $269 $312
Loans transferred to
nonaccrual (1) 20 28 81 47 66
Nonaccrual business loan
gross charge-offs (2) (21) (34) (40) (38) (42)
Loans transferred to
accrual status (1) - (11) - - (4)
Nonaccrual business loans
sold (3) (9) (4) (19) - (14)
Payments/Other (4) (6) (27) (48) (66) (49)
Nonaccrual loans at end of
period $122 $138 $186 $212 $269
(1) Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(2) Analysis of gross loan charge-offs:
Nonaccrual business
loans $21 $34 $40 $38 $42
Performing watch list
loans 1 - 1 2 1
Consumer loans and
residential mortgage
loans 3 4 6 3 3
Total gross loan
charge-offs $25 $38 $47 $43 $46
(3) Analysis of loans sold:
Nonaccrual business
loans $9 $4 $19 $ - $14
Performing watch list
loans 30 15 34 7 4
Total loans sold $39 $19 $53 $7 $18
(4) Net change related to nonaccrual loans with balances less than $2 million, other than business loan gross charge-offs and nonaccrual loans sold, are included in Payments/Other.
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
March 31, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $26,620 $412 6.27%
Real estate construction loans 3,530 72 8.24
Commercial mortgage loans (1) 8,998 155 6.97
Residential mortgage loans 1,492 22 5.88
Consumer loans 2,660 45 6.83
Lease financing 1,298 13 4.03
International loans 1,881 30 6.56
Business loan swap income (expense) - (25) -
Total loans (2) 46,479 724 6.31
Investment securities available-for-sale 4,154 44 4.10
Short-term investments 344 5 6.17
Total earning assets 50,977 773 6.12
Cash and due from banks 1,648
Allowance for loan losses (512)
Accrued income and other assets 3,164
Total assets $55,277
Money market and NOW deposits (1) $16,595 105 2.57
Savings deposits (1) 1,476 2 0.65
Certificates of deposit (1) 5,887 51 3.52
Institutional certificates of deposit 2,624 30 4.62
Foreign office time deposits 1,007 11 4.26
Total interest-bearing deposits 27,589 199 2.93
Short-term borrowings 3,753 42 4.52
Medium- and long-term debt 4,029 52 5.22
Total interest-bearing sources 35,371 293 3.36
Noninterest-bearing deposits (1) 13,609
Accrued expenses and other liabilities 1,225
Common shareholders' equity 5,072
Total liabilities and
shareholders' equity $55,277
Net interest income/rate spread (FTE) $480 2.76
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.04
Net interest margin (as a percentage
of average earning assets)
(FTE) (2) 3.80%
(1) FSD balances included above:
Loans (primarily low-rate) $2,909 $3 0.43%
Interest-bearing deposits 2,286 21 3.74
Noninterest-bearing deposits 4,683
(2) Impact of FSD loans (primarily low-rate) on the following:
Commercial loans (0.72)%
Total loans (0.40)
Net interest margin (FTE)
(assuming loans were
funded by noninterest-
bearing deposits) (0.22)
Three Months Ended
December 31, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $25,666 $388 5.99%
Real estate construction loans 3,416 68 7.94
Commercial mortgage loans (1) 8,799 149 6.70
Residential mortgage loans 1,465 22 5.87
Consumer loans 2,675 43 6.45
Lease financing 1,288 13 4.08
International loans 1,940 32 6.52
Business loan swap income (expense) - (16) -
Total loans (2) 45,249 699 6.13
Investment securities available-for-sale 4,037 41 3.97
Short-term investments 478 6 5.42
Total earning assets 49,764 746 5.94
Cash and due from banks 1,757
Allowance for loan losses (562)
Accrued income and other assets 3,171
Total assets $54,130
Money market and NOW deposits (1) $17,152 102 2.36
Savings deposits (1) 1,502 1 0.61
Certificates of deposit (1) 5,582 45 3.18
Institutional certificates of deposit 1,141 12 4.16
Foreign office time deposits 943 11 4.46
Total interest-bearing deposits 26,320 171 2.59
Short-term borrowings 2,350 24 4.06
Medium- and long-term debt 4,013 49 4.77
Total interest-bearing sources 32,683 244 2.96
Noninterest-bearing deposits (1) 15,158
Accrued expenses and other liabilities 1,188
Common shareholders' equity 5,101
Total liabilities and
shareholders' equity $54,130
Net interest income/rate spread (FTE) $502 2.98
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.02
Net interest margin (as a percentage
of average earning assets)
(FTE) (2) 4.00%
(1) FSD balances included above:
Loans (primarily low-rate) $2,769 $3 0.38%
Interest-bearing deposits 2,613 22 3.38
Noninterest-bearing deposits 5,866
(2) Impact of FSD loans (primarily low-rate) on the following:
Commercial loans (0.68)%
Total loans (0.37)
Net interest margin (FTE)
(assuming loans were
funded by noninterest-
bearing deposits) (0.22)
Three Months Ended
March 31, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $23,248 $286 5.00%
Real estate construction loans 3,052 49 6.48
Commercial mortgage loans (1) 8,315 118 5.77
Residential mortgage loans 1,310 18 5.58
Consumer loans 2,734 36 5.32
Lease financing 1,261 13 4.13
International loans 2,235 30 5.43
Business loan swap income (expense) - 17 -
Total loans (2) 42,155 567 5.45
Investment securities available-for-sale 3,790 35 3.60
Short-term investments 700 6 3.47
Total earning assets 46,645 608 5.27
Cash and due from banks 1,639
Allowance for loan losses (685)
Accrued income and other assets 3,151
Total assets $50,750
Money market and NOW deposits (1) $17,810 69 1.56
Savings deposits (1) 1,582 2 0.41
Certificates of deposit (1) 5,193 29 2.27
Institutional certificates of deposit 365 2 2.54
Foreign office time deposits 712 6 3.72
Total interest-bearing deposits 25,662 108 1.71
Short-term borrowings 441 3 2.71
Medium- and long-term debt 4,277 36 3.37
Total interest-bearing sources 30,380 147 1.96
Noninterest-bearing deposits (1) 14,120
Accrued expenses and other liabilities 1,178
Common shareholders' equity 5,072
Total liabilities and
shareholders' equity $50,750
Net interest income/rate spread (FTE) $461 3.31
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 0.69
Net interest margin (as a percentage
of average earning assets)
(FTE) (2) 4.00%
(1) FSD balances included above:
Loans (primarily low-rate) $1,309 $2 0.54%
Interest-bearing deposits 2,642 16 2.45
Noninterest-bearing deposits 5,145
(2) Impact of FSD loans (primarily low-rate) on the following:
Commercial loans (0.26)%
Total loans (0.17)
Net interest margin (FTE)
(assuming loans were
funded by noninterest-
bearing deposits) (0.11)
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
March 31, December 31, September 30,
(in millions, except per share data) 2006 2005 2005
Commercial loans:
Floor plan $3,078 $2,847 $2,065
Other 21,660 20,698 20,689
Total commercial loans 24,738 23,545 22,754
Real estate construction loans:
Real estate construction
business line 2,996 2,831 2,674
Other 683 651 615
Total real estate construction
loans 3,679 3,482 3,289
Commercial mortgage loans:
Commercial real estate business
line 1,483 1,450 1,440
Other 7,663 7,417 7,260
Total commercial mortgage loans 9,146 8,867 8,700
Residential mortgage loans 1,516 1,485 1,444
Consumer loans:
Home equity 1,748 1,775 1,818
Other consumer 859 922 878
Total consumer loans 2,607 2,697 2,696
Lease financing 1,292 1,295 1,286
International loans 1,761 1,876 1,972
Total loans $44,739 $43,247 $42,141
Goodwill $213 $213 $247
Other intangible assets 1 1 1
Loan servicing rights 17 19 19
Deferred mutual fund distribution
costs 6 6 7
Tier 1 common capital ratio* 7.70% 7.86% 7.98%
Tier 1 risk-based capital ratio* 8.28 8.46 8.60
Total risk-based capital ratio * 11.74 11.75 12.07
Leverage ratio* 9.90 9.99 10.07
Book value per share $31.39 $31.11 $30.81
Market value per share for the quarter:
High $58.62 $60.25 $63.38
Low 54.23 53.60 56.80
Close 57.97 56.76 58.90
Quarterly ratios:
Return on average common
shareholders' equity 15.33% 16.28% 18.59%
Return on average assets 1.41 1.53 1.78
Efficiency ratio 64.35 62.21 56.63
Number of banking offices 372 381 370
Number of employees - full time
equivalent 10,687 10,816 10,779
June 30, March 31,
(in millions, except per share data) 2005 2005
Commercial loans:
Floor plan $2,766 $2,668
Other 20,924 20,112
Total commercial loans 23,690 22,780
Real estate construction loans:
Real estate construction
business line 2,587 2,451
Other 581 584
Total real estate construction
loans 3,168 3,035
Commercial mortgage loans:
Commercial real estate business line 1,465 1,555
Other 7,071 6,860
Total commercial mortgage loans 8,536 8,415
Residential mortgage loans 1,394 1,335
Consumer loans:
Home equity 1,867 1,797
Other consumer 834 903
Total consumer loans 2,701 2,700
Lease financing 1,296 1,262
International loans 2,239 2,209
Total loans $43,024 $41,736
Goodwill $247 $247
Other intangible assets 1 1
Loan servicing rights 19 19
Deferred mutual fund distribution costs 7 7
Tier 1 common capital ratio* 7.88% 8.04%
Tier 1 risk-based capital ratio* 8.49 8.66
Total risk-based capital ratio * 12.08 12.49
Leverage ratio* 10.36 10.50
Book value per share $30.60 $29.81
Market value per share for the quarter:
High $59.29 $61.40
Low 53.17 53.70
Close 57.80 55.08
Quarterly ratios:
Return on average common
shareholders' equity 16.99% 15.73%
Return on average assets 1.68 1.57
Efficiency ratio 54.49 55.70
Number of banking offices 364 376
Number of employees - full time equivalent 10,826 10,803
* March 31, 2006 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
March 31, December 31, March 31,
(in millions, except share data) 2006 2005 2005
ASSETS
Cash and due from subsidiary bank $13 $11 $5
Short-term investments with subsidiary
bank 298 264 286
Investment in subsidiaries,
principally banks 5,591 5,587 5,533
Premises and equipment 3 3 3
Other assets 262 257 290
Total assets $6,167 $6,122 $6,117
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt $803 $813 $814
Other liabilities 270 241 273
Total liabilities 1,073 1,054 1,087
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
3/31/06, 12/31/05 and 3/31/05 894 894 894
Capital surplus 466 461 433
Accumulated other comprehensive loss (198) (170) (154)
Retained earnings 4,880 4,796 4,427
Less cost of common stock in
treasury - 16,461,565 shares at
3/31/06, 15,834,985 shares at
12/31/05 and 9,988,453 shares
at 3/31/05 (948) (913) (570)
Total shareholders' equity 5,094 5,068 5,030
Total liabilities and
shareholders' equity $6,167 $6,122 $6,117
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
Accumulated Total
Other Shareholders'
(in millions, Common Stock Comprehensive Treasury
except per In Capital Loss Retained
share data) Shares Amount Surplus Earnings Stock Equity
BALANCE AT JANUARY 1,
2005 170.5 $894 $421 $(69) $4,331 $(472) $5,105
Net income - - - - 199 - 199
Other comprehensive loss,
net of tax - - - (85) - - (85)
Total comprehensive
income 114
Cash dividends declared
on common stock ($0.55
per share) - - - - (93) - (93)
Purchase of common stock (2.1) - - - - (118) (118)
Net issuance of common
stock under employee
stock plans 0.3 - 3 - (10) 20 13
Recognition of share-
based compensation
expense - - 9 - - - 9
BALANCE AT
MARCH 31, 2005 168.7 $894 $433 $(154) $4,427 $(570) $5,030
BALANCE AT JANUARY 1,
2006 162.9 $894 $461 $(170) $4,796 $(913) $5,068
Net income - - - - 194 - 194
Other comprehensive loss,
net of tax - - - (28) - - (28)
Total comprehensive
income 166
Cash dividends declared
on common stock ($0.59
per share) - - - - (96) - (96)
Purchase of common stock (1.5) - - - - (86) (86)
Net issuance of common
stock under employee
stock plans 0.9 - (18) - (14) 51 19
Recognition of share-
based compensation
expense - - 18 - - - 18
Other - - 5 - - - 5
BALANCE AT
MARCH 31, 2006 162.3 $894 $466 $(198) $4,880 $(948) $5,094
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Business Bank
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $314 $337 $337
Provision for loan losses (13) (31) 9
Noninterest income 63 71 70
Noninterest expenses 187 226 141
Provision (benefit) for income taxes (FTE) 59 78 85
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $144 $135 $172
Net loans charged-off $11 $15 $29
Selected average balances:
Assets $38,148 $37,165 $34,047
Loans 36,883 35,849 32,970
Deposits 18,899 20,578 19,877
Liabilities 19,749 21,361 20,623
Attributed equity 2,557 2,585 2,476
Statistical data:
Return on average assets (1) 1.51% 1.46% 2.03%
Return on average attributed equity 22.54 21.00 27.92
Net interest margin (2) 3.45 3.72 4.13
Efficiency ratio 49.64 55.23 34.61
Finance
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $(27) $(32) $(59)
Provision for loan losses - - -
Noninterest income 17 22 10
Noninterest expenses - 1 1
Provision (benefit) for income taxes (FTE) (7) (7) (20)
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $(3) $(4) $(30)
Net loans charged-off $ - $ - $ -
Selected average balances:
Assets $5,431 $5,483 $5,518
Loans 3 (9) (7)
Deposits 3,214 1,615 612
Liabilities 10,969 7,983 5,390
Attributed equity 470 469 538
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
(dollar amounts in millions) Retail Bank
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $155 $157 $146
Provision for loan losses 6 8 -
Noninterest income 50 51 49
Noninterest expenses 145 154 126
Provision (benefit) for income taxes (FTE) 18 16 24
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $36 $30 $45
Net loans charged-off $5 $8 $4
Selected average balances:
Assets $6,726 $6,599 $6,414
Loans 6,016 5,891 5,778
Deposits 16,705 16,778 16,796
Liabilities 16,706 16,776 16,784
Attributed equity 818 826 779
Statistical data:
Return on average assets (1) 0.82% 0.67% 1.02%
Return on average attributed equity 17.50 14.32 23.03
Net interest margin (2) 3.75 3.71 3.53
Efficiency ratio 70.97 74.05 64.67
Other
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $ - $1 $1
Provision for loan losses (20) 1 (6)
Noninterest income 1 - 1
Noninterest expenses 19 (8) 26
Provision (benefit) for income taxes (FTE) (7) - (5)
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $9 $8 $(13)
Net loans charged-off $1 $(2) $ -
Selected average balances:
Assets $1,097 $1,069 $1,146
Loans 44 45 46
Deposits (100) (50) 46
Liabilities 276 333 424
Attributed equity 764 747 862
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
(dollar amounts in millions) Wealth & Institutional Management
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $38 $39 $36
Provision for loan losses - 2 (2)
Noninterest income 84 137 80
Noninterest expenses 98 114 80
Provision (benefit) for income taxes (FTE) 8 22 13
Cumulative effect of change in
accounting principle, net of tax (8) - -
Net income (loss) $8 $38 $25
Net loans charged-off $ - $1 $5
Selected average balances:
Assets $3,875 $3,814 $3,625
Loans 3,533 3,473 3,368
Deposits 2,480 2,557 2,451
Liabilities 2,505 2,576 2,457
Attributed equity 463 474 417
Statistical data:
Return on average assets (1) 0.84% 4.02% 2.79%
Return on average attributed equity 7.00 32.36 24.27
Net interest margin (2) 4.36 4.44 4.34
Efficiency ratio 80.20 64.92 68.51
Total
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $480 $502 $461
Provision for loan losses (27) (20) 1
Noninterest income 215 281 210
Noninterest expenses 449 487 374
Provision (benefit) for income taxes (FTE) 71 109 97
Cumulative effect of change in
accounting principle, net of tax (8) - -
Net income (loss) $194 $207 $199
Net loans charged-off $17 $22 $38
Selected average balances:
Assets $55,277 $54,130 $50,750
Loans 46,479 45,249 42,155
Deposits 41,198 41,478 39,782
Liabilities 50,205 49,029 45,678
Attributed equity 5,072 5,101 5,072
Statistical data:
Return on average assets (1) 1.41% 1.53% 1.57%
Return on average attributed equity 15.33 16.28 15.73
Net interest margin (2) 3.80 4.00 4.00
Efficiency ratio 64.35 62.21 55.70
(1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(2) 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
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Midwest & Other Markets
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $266 $272 $264
Provision for loan losses (1) (16) 1
Noninterest income 147 203 148
Noninterest expenses 263 306 207
Provision (benefit) for income taxes
(FTE) 41 67 63
Cumulative effect of change in
accounting principle, net of tax (8) - -
Net income (loss) $102 $118 $141
Net loans charged-off $11 $21 $16
Selected average balances:
Assets $25,116 $24,984 $24,549
Loans 23,721 23,518 23,288
Deposits 18,666 18,833 18,867
Liabilities 19,497 19,593 19,606
Attributed equity 2,173 2,220 2,134
Statistical data:
Return on average assets (1) 1.63% 1.90% 2.31%
Return on average attributed equity 18.81 21.39 26.52
Net interest margin (2) 4.53 4.55 4.57
Efficiency ratio 63.66 64.42 49.96
Florida
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $11 $10 $10
Provision for loan losses 1 2 2
Noninterest income 4 4 4
Noninterest expenses 8 9 7
Provision (benefit) for income taxes (FTE) 2 1 2
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $4 $2 $3
Net loans charged-off $2 $3 $4
Selected average balances:
Assets $1,623 $1,500 $1,396
Loans 1,603 1,484 1,383
Deposits 307 314 289
Liabilities 306 312 287
Attributed equity 81 76 66
Statistical data:
Return on average assets (1) 1.01% 0.56% 0.93%
Return on average attributed equity 20.13 11.07 19.68
Net interest margin (2) 2.80 2.70 2.99
Efficiency ratio 53.21 64.82 51.37
(dollar amounts in millions) Western
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $169 $188 $186
Provision for loan losses (5) (5) 1
Noninterest income 28 33 29
Noninterest expenses 109 124 91
Provision (benefit) for income taxes (FTE) 32 38 46
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $61 $64 $77
Net loans charged-off $2 $1 $10
Selected average balances:
Assets $16,358 $15,643 $13,148
Loans 15,718 14,960 12,638
Deposits 15,437 17,048 16,295
Liabilities 15,479 17,090 16,303
Attributed equity 1,084 1,087 1,024
Statistical data:
Return on average assets (1) 1.47% 1.41% 1.79%
Return on average attributed equity 22.43 23.58 30.30
Net interest margin (2) 4.33 4.37 4.63
Efficiency ratio 55.48 55.94 42.05
Finance & Other Businesses
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $(27) $(31) $(58)
Provision for loan losses (20) 1 (6)
Noninterest income 18 22 11
Noninterest expenses 19 (7) 27
Provision (benefit) for income taxes (FTE) (14) (7) (25)
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $6 $4 $(43)
Net loans charged-off $1 $(2) $ -
Selected average balances:
Assets $6,528 $6,552 $6,664
Loans 47 36 39
Deposits 3,114 1,565 658
Liabilities 11,245 8,316 5,814
Attributed equity 1,234 1,216 1,400
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
(dollar amounts in millions) Texas
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $61 $63 $59
Provision for loan losses (2) (2) 3
Noninterest income 18 19 18
Noninterest expenses 50 55 42
Provision (benefit) for income taxes (FTE) 10 10 11
Cumulative effect of change in
accounting principle, net of tax - - -
Net income (loss) $21 $19 $21
Net loans charged-off $1 $(1) $8
Selected average balances:
Assets $5,652 $5,451 $4,993
Loans 5,390 5,251 4,807
Deposits 3,674 3,718 3,673
Liabilities 3,678 3,718 3,668
Attributed equity 500 502 448
Statistical data:
Return on average assets (1) 1.48% 1.38% 1.66%
Return on average attributed equity 16.77 14.92 18.46
Net interest margin (2) 4.55 4.73 4.93
Efficiency ratio 63.65 67.03 55.90
Total
March 31, December 31, March 31,
Three Months Ended 2006 2005 2005
Earnings summary:
Net interest income (expense) (FTE) $480 $502 $461
Provision for loan losses (27) (20) 1
Noninterest income 215 281 210
Noninterest expenses 449 487 374
Provision (benefit) for income taxes
(FTE) 71 109 97
Cumulative effect of change in
accounting principle, net of tax (8) - -
Net income (loss) $194 $207 $199
Net loans charged-off $17 $22 $38
Selected average balances:
Assets $55,277 $54,130 $50,750
Loans 46,479 45,249 42,155
Deposits 41,198 41,478 39,782
Liabilities 50,205 49,029 45,678
Attributed equity 5,072 5,101 5,072
Statistical data:
Return on average assets (1) 1.41% 1.53% 1.57%
Return on average attributed equity 15.33 16.28 15.73
Net interest margin (2) 3.80 4.00 4.00
Efficiency ratio 64.35 62.21 55.70
(1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.
(2) 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
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGOPRN Photo Desk, photodesk@prnewswire.com
SOURCE: Comerica Incorporated
Web site: http://www.comerica.com/
