/FIRST AND FINAL ADD -- DETH006 -- Comerica Reports Third Quarter 2006 Earnings/
PRNewswire
(:CMA)
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Three Months Ended
September 30, June 30, September 30,
(in millions, except per share data) 2006 2006 2005
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $1.20 $1.19 $1.38
Diluted net income 1.23 1.22 1.41
Cash dividends declared 0.59 0.59 0.55
Common shareholders' equity (at
period end) 32.79 31.99 30.81
Average diluted shares (in
thousands) 162,438 163,439 168,387
KEY RATIOS
Return on average common
shareholders' equity 15.38 % 15.50 % 18.59 %
Return on average assets 1.41 1.41 1.78
Average common shareholders' equity
as a percentage of average assets 9.16 9.09 9.57
Tier 1 common capital ratio * 7.49 7.69 7.98
Tier 1 risk-based capital ratio * 8.05 8.26 8.60
Total risk-based capital ratio * 11.26 11.55 12.07
Leverage ratio * 9.66 9.83 10.07
AVERAGE BALANCES
Commercial loans $27,534 $27,587 $25,230
Real estate construction loans 4,064 3,816 3,202
Commercial mortgage loans 9,362 9,229 8,631
Residential mortgage loans 1,602 1,537 1,418
Consumer loans 2,474 2,533 2,703
Lease financing 1,323 1,299 1,300
International loans 1,766 1,801 2,098
Total loans 48,125 47,802 44,582
Earning assets 52,500 52,371 49,066
Total assets 56,790 56,611 53,462
Interest-bearing deposits 29,133 28,446 25,540
Total interest-bearing liabilities 37,555 36,704 31,488
Noninterest-bearing deposits 12,723 13,575 15,734
Common shareholders' equity 5,203 5,146 5,116
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $502 $501 $513
Fully taxable equivalent adjustment - 1 1
Net interest margin 3.79 % 3.82 % 4.15 %
CREDIT QUALITY
Nonaccrual loans $174 $157 $186
Other real estate 23 17 34
Total nonperforming assets 197 174 220
Loans 90 days past due and still
accruing 18 15 14
Gross loan charge-offs 17 25 47
Recoveries 14 7 26
Net loan charge-offs 3 18 21
Net lending-related commitment
charge-offs 5 1 -
Total net credit-related charge-offs 8 19 21
Allowance for loan losses 493 481 558
Allowance for credit losses on
lending-related commitments 31 41 14
Total allowance for credit losses 524 522 572
Allowance for loan losses as a
percentage of total loans 1.06 % 1.04 % 1.33 %
Net loan charge-offs as a
percentage of average total loans 0.02 0.15 0.18
Net credit-related charge-offs as a
percentage of average total loans 0.06 0.16 0.18
Nonperforming assets as a
percentage of total loans and
other real estate 0.42 0.37 0.52
Allowance for loan losses as a
percentage of total nonperforming
assets 251 278 253
ADDITIONAL DATA
Goodwill $213 $213 $247
Other intangibles 1 1 1
Loan servicing rights 15 16 19
Deferred mutual fund distribution costs 6 6 7
Nine Months Ended
September 30,
(in millions, except per share data) 2006 2005
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $3.65 $3.80
Diluted net income 3.64 3.85
Cash dividends declared 1.77 1.65
Common shareholders' equity (at
period end)
Average diluted shares (in thousands) 163,299 169,687
KEY RATIOS
Return on average common
shareholders' equity 15.40 % 17.11 %
Return on average assets 1.41 1.68
Average common shareholders' equity
as a percentage of average assets 9.14 9.81
Tier 1 common capital ratio *
Tier 1 risk-based capital ratio *
Total risk-based capital ratio *
Leverage ratio *
AVERAGE BALANCES
Commercial loans $27,251 $24,207
Real estate construction loans 3,805 3,119
Commercial mortgage loans 9,198 8,488
Residential mortgage loans 1,544 1,362
Consumer loans 2,555 2,703
Lease financing 1,307 1,281
International loans 1,815 2,173
Total loans 47,475 43,333
Earning assets 51,955 47,716
Total assets 56,231 51,959
Interest-bearing deposits 28,395 25,402
Total interest-bearing liabilities 36,551 30,794
Noninterest-bearing deposits 13,299 14,955
Common shareholders' equity 5,141 5,096
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $1,483 $1,459
Fully taxable equivalent adjustment 2 3
Net interest margin 3.80 % 4.08 %
CREDIT QUALITY
Nonaccrual loans
Other real estate
Total nonperforming assets
Loans 90 days past due and still
accruing
Gross loan charge-offs $67 $136
Recoveries 29 48
Net loan charge-offs 38 88
Net lending-related commitment
charge-offs 11 -
Total net credit-related charge-offs 49 88
Allowance for loan losses
Allowance for credit losses on
lending-related commitments
Total allowance for credit losses
Allowance for loan losses as a
percentage of total loans
Net loan charge-offs as a percentage
of average total loans 0.11 % 0.27 %
Net credit-related charge-offs as a
percentage of average total loans 0.13 0.27
Nonperforming assets as a percentage
of total loans and other real estate
Allowance for loan losses as a
percentage of total nonperforming
assets
ADDITIONAL DATA
Goodwill
Other intangibles
Loan servicing rights
Deferred mutual fund distribution
costs
* September 30, 2006 ratios are estimated
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
September June December September
30, 30, 31, 30,
(in millions, except share data) 2006 2006 2005 2005
ASSETS
Cash and due from banks $1,456 $1,664 $1,609 $1,795
Short-term investments 3,732 2,381 1,159 3,619
Investment securities available-for-
sale 3,931 3,980 4,240 4,088
Commercial loans 25,755 25,928 23,545 22,754
Real estate construction loans 4,122 3,958 3,482 3,289
Commercial mortgage loans 9,485 9,363 8,867 8,700
Residential mortgage loans 1,622 1,568 1,485 1,444
Consumer loans 2,498 2,493 2,697 2,696
Lease financing 1,321 1,325 1,295 1,286
International loans 1,712 1,764 1,876 1,972
Total loans 46,515 46,399 43,247 42,141
Less allowance for loan losses (493) (481) (516) (558)
Net loans 46,022 45,918 42,731 41,583
Premises and equipment 540 522 510 499
Customers' liability on acceptances
outstanding 64 74 59 39
Accrued income and other assets 2,729 2,541 2,705 2,726
Total assets $58,474 $57,080 $53,013 $54,349
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $15,132 $15,199 $15,666 $17,702
Money market and NOW deposits 14,711 15,342 17,064 17,199
Savings deposits 1,378 1,470 1,454 1,502
Customer certificates of deposit 7,057 6,322 5,679 5,583
Institutional certificates of deposit 5,783 4,629 1,750 700
Foreign office time deposits 869 1,164 818 984
Total interest-bearing deposits 29,798 28,927 26,765 25,968
Total deposits 44,930 44,126 42,431 43,670
Short-term borrowings 225 442 302 241
Acceptances outstanding 64 74 59 39
Accrued expenses and other liabilities 1,292 1,162 1,192 1,242
Medium- and long-term debt 6,755 6,087 3,961 4,066
Total liabilities 53,266 51,891 47,945 49,258
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
9/30/06, 6/30/06, 12/31/05 and
9/30/05 894 894 894 894
Capital surplus 507 494 461 448
Accumulated other comprehensive loss (128) (226) (170) (158)
Retained earnings 5,079 4,978 4,796 4,683
Less cost of common stock in treasury
- 19,892,137 shares at 9/30/06,
16,534,470 shares at 6/30/06,
15,834,985 shares at 12/31/05 and
13,469,654 shares at 9/30/05 (1,144) (951) (913) (776)
Total shareholders' equity 5,208 5,189 5,068 5,091
Total liabilities and shareholders'
equity $58,474 $57,080 $53,013 $54,349
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Ended Nine Months Ended
September 30, September 30,
(in millions, except per share data) 2006 2005 2006 2005
INTEREST INCOME
Interest and fees on loans $843 $674 $2,358 $1,857
Interest on investment securities 43 38 132 107
Interest on short-term investments 7 7 20 18
Total interest income 893 719 2,510 1,982
INTEREST EXPENSE
Interest on deposits 272 147 707 377
Interest on short-term borrowings 28 16 115 28
Interest on medium- and long-term debt 91 44 207 121
Total interest expense 391 207 1,029 526
Net interest income 502 512 1,481 1,456
Provision for loan losses 15 (30) 15 (27)
Net interest income after
provision for loan losses 487 542 1,466 1,483
NONINTEREST INCOME
Service charges on deposit accounts 56 55 164 163
Fiduciary income 46 45 137 135
Commercial lending fees 16 16 46 44
Letter of credit fees 17 18 48 56
Foreign exchange income 9 9 28 27
Brokerage fees 10 10 30 27
Card fees 11 10 34 28
Bank-owned life insurance 8 9 31 28
Warrant income (5) 2 - 7
Net securities losses - - (1) -
Net gain (loss) on sales of businesses (7) - (12) 1
Other noninterest income 35 41 92 100
Total noninterest income 196 215 597 616
NONINTEREST EXPENSES
Salaries 202 201 592 574
Employee benefits 48 44 142 133
Total salaries and employee benefits 250 245 734 707
Net occupancy expense 31 29 91 88
Equipment expense 13 13 41 39
Outside processing fee expense 21 20 64 56
Software expense 13 12 41 35
Customer services 11 29 33 50
Litigation and operational losses 3 3 7 8
Provision for credit losses on
lending-related commitments (5) (1) 9 (7)
Other noninterest expenses 63 61 201 172
Total noninterest expenses 400 411 1,221 1,148
Income from continuing operations
before income taxes 283 346 842 951
Provision for income taxes 88 113 245 306
Income from continuing operations 195 233 597 645
Income (loss) from discontinued
operations, net of tax 5 5 (3) 9
NET INCOME $200 $238 $594 $654
Basic earnings per common share:
Income from continuing operations $1.22 $1.40 $3.70 $3.85
Net income 1.25 1.43 3.69 3.90
Diluted earnings per common share:
Income from continuing operations 1.20 1.38 3.65 3.80
Net income 1.23 1.41 3.64 3.85
Cash dividends declared on common stock 94 92 286 277
Dividends per common share 0.59 0.55 1.77 1.65
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
(in millions, except 2006 2006 2006 2005 2005
per share data)
INTEREST INCOME
Interest and fees on loans $843 $792 $723 $697 $674
Interest on investment securities 43 45 44 41 38
Interest on short-term investments 7 8 5 6 7
Total interest income 893 845 772 744 719
INTEREST EXPENSE
Interest on deposits 272 236 199 171 147
Interest on short-term borrowings 28 45 42 24 16
Interest on medium- and
long-term debt 91 64 52 49 44
Total interest expense 391 345 293 244 207
Net interest income 502 500 479 500 512
Provision for loan losses 15 27 (27) (20) (30)
Net interest income after
provision for loan losses 487 473 506 520 542
NONINTEREST INCOME
Service charges on deposit accounts 56 54 54 55 55
Fiduciary income 46 46 45 44 45
Commercial lending fees 16 15 15 19 16
Letter of credit fees 17 15 16 14 18
Foreign exchange income 9 9 10 10 9
Brokerage fees 10 10 10 9 10
Card fees 11 12 11 11 10
Bank-owned life insurance 8 10 13 10 9
Warrant income (5) 4 1 2 2
Net securities gains (losses) - 1 (2) - -
Net loss on sales of businesses (7) - (5) - -
Other noninterest income 35 29 28 34 41
Total noninterest income 196 205 196 208 215
NONINTEREST EXPENSES
Salaries 202 197 193 212 201
Employee benefits 48 44 50 45 44
Total salaries and employee
benefits 250 241 243 257 245
Net occupancy expense 31 30 30 30 29
Equipment expense 13 15 13 14 13
Outside processing fee expense 21 22 21 21 20
Software expense 13 14 14 14 12
Customer services 11 9 13 19 29
Litigation and operational losses 3 3 1 6 3
Provision for credit losses on lending-
related commitments (5) 1 13 25 (1)
Other noninterest expenses 63 56 82 84 61
Total noninterest expenses 400 391 430 470 411
Income from continuing operations
before income taxes 283 287 272 258 346
Provision for income taxes 88 92 65 87 113
Income from continuing operations 195 195 207 171 233
Income (loss) from discontinued
operations, net of tax 5 5 (13) 36 5
NET INCOME $200 $200 $194 $207 $238
Basic earnings per common share:
Income from continuing
operations $1.22 $1.21 $1.28 $1.05 $1.40
Net income 1.25 1.24 1.20 1.27 1.43
Diluted earnings per common share:
Income from continuing
operations 1.20 1.19 1.26 1.04 1.38
Net income 1.23 1.22 1.18 1.25 1.41
Cash dividends declared on
common stock 94 96 96 90 92
Dividends per common share 0.59 0.59 0.59 0.55 0.55
Third Quarter 2006 Compared To:
Second Quarter 2006 Third Quarter 2005
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME
Interest and fees on loans $51 6.4 % $169 25.0 %
Interest on investment securities (2) (5.8) 5 12.1
Interest on short-term investments (1) (6.8) - 7.4
Total interest income 48 5.6 174 24.1
INTEREST EXPENSE
Interest on deposits 36 15.0 125 85.2
Interest on short-term borrowings (17) (37.7) 12 77.1
Interest on medium- and long-term
debt 27 42.4 47 104.3
Total interest expense 46 13.2 184 88.7
Net interest income 2 0.4 (10) (2.0)
Provision for loan losses (12) N/M 45 N/M
Net interest income after
provision for loan losses 14 2.9 (55) (10.2)
NONINTEREST INCOME
Service charges on deposit accounts 2 3.1 1 0.2
Fiduciary income - 0.2 1 2.9
Commercial lending fees 1 4.0 - (3.0)
Letter of credit fees 2 6.8 (1) (6.4)
Foreign exchange income - (5.3) - (2.6)
Brokerage fees - 1.9 - (0.4)
Card fees (1) (2.4) 1 14.5
Bank-owned life insurance (2) (11.6) (1) (5.9)
Warrant income (9) N/M (7) N/M
Net securities gains (losses) (1) N/M - N/M
Net loss on sales of businesses (7) N/M (7) N/M
Other noninterest income 6 19.8 (6) (15.1)
Total noninterest income (9) (4.2) (19) (8.6)
NONINTEREST EXPENSES
Salaries 5 2.7 1 0.7
Employee benefits 4 7.5 4 6.9
Total salaries and employee benefits 9 3.6 5 1.9
Net occupancy expense 1 7.2 2 9.0
Equipment expense (2) (10.0) - 1.6
Outside processing fee expense (1) (5.5) 1 8.6
Software expense (1) (0.4) 1 16.7
Customer services 2 23.4 (18) (62.0)
Litigation and operational losses - (19.3) - (28.5)
Provision for credit losses on
lending-related commitments (6) N/M (4) N/M
Other noninterest expenses 7 10.0 2 2.0
Total noninterest expenses 9 2.3 (11) (2.9)
Income from continuing operations
before income taxes (4) (1.3) (63) (17.9)
Provision for income taxes (4) (4.3) (25) (21.2)
Income from continuing operations - 0.1 (38) (16.3)
Income (loss) from discontinued
operations, net of tax - 12.6 - 6.2
NET INCOME $- 0.4 % $(38) (15.8)%
Basic earnings per common share:
Income from continuing operations $0.01 0.8 % $(0.18) (12.9)%
Net income 0.01 0.8 (0.18) (12.6)
Diluted earnings per common share:
Income from continuing operations 0.01 0.8 (0.18) (13.0)
Net income 0.01 0.8 (0.18) (12.8)
Cash dividends declared on
common stock (2) (1.4) 2 2.5
Dividends per common share - - 0.04 7.3
N/M - Not meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Balance at beginning of period $481 $472 $516 $558 $609
Loan charge-offs:
Commercial 9 16 12 14 20
Real estate construction:
Real estate construction
business line - - - 1 1
Other - - - - -
Total real estate
construction - - - 1 1
Commercial mortgage:
Commercial real estate
business line 1 - - - -
Other 4 3 2 1 4
Total commercial
mortgage 5 3 2 1 4
Residential mortgage - - - 1 -
Consumer 3 4 3 3 6
Lease financing - 1 6 18 13
International - 1 2 - 3
Total loan charge-offs 17 25 25 38 47
Recoveries on loans previously
charged-off:
Commercial 13 5 4 13 23
Real estate construction - - - - -
Commercial mortgage 1 - 2 1 1
Residential mortgage - - - - -
Consumer - 1 1 2 2
Lease financing - - - - -
International - 1 1 - -
Total recoveries 14 7 8 16 26
Net loan charge-offs 3 18 17 22 21
Provision for loan losses 15 27 (27) (20) (30)
Balance at end of period $493 $481 $472 $516 $558
Allowance for loan losses as a
percentage of total loans 1.06% 1.04% 1.06% 1.19% 1.33%
Net loan charge-offs as a
percentage of average
total loans 0.02 0.15 0.14 0.20 0.18
Net credit-related charge-offs as
a percentage of average
total loans 0.06 0.16 0.19 0.25 0.18
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED
COMMITMENTS
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
Balance at beginning of period $41 $41 $33 $14 $15
Charge-offs on lending-related
commitments (1) 5 1 5 6 -
Provision for credit losses on
lending-related commitments (5) 1 13 25 (1)
Balance at end of period $31 $41 $41 $33 $14
Unfunded lending-related
commitments sold $28 $16 $52 $20 $-
(1) Charge-offs result from the sale of unfunded lending-related commitments.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2006 2005
(in millions) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
SUMMARY OF NONPERFORMING
ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Commercial $83 $74 $53 $65 $81
Real estate construction:
Real estate construction
business line 4 5 2 3 4
Other - - - - -
Total real estate
construction 4 5 2 3 4
Commercial mortgage:
Commercial real estate
business line 10 11 11 6 9
Other 46 35 29 29 35
Total commercial
mortgage 56 46 40 35 44
Residential mortgage 1 1 1 2 1
Consumer 5 3 2 2 1
Lease financing 12 12 7 13 39
International 13 16 17 18 16
Total nonaccrual loans 174 157 122 138 186
Reduced-rate loans - - - - -
Total nonperforming
loans 174 157 122 138 186
Other real estate 23 17 19 24 34
Total nonperforming
assets $197 $174 $141 $162 $220
Nonperforming loans as a
percentage of total loans 0.37 % 0.34% 0.27% 0.32% 0.44%
Nonperforming assets as a
percentage of total loans
and other real estate 0.42 0.37 0.32 0.37 0.52
Allowance for loan losses as
a percentage of total
nonperforming assets 251 278 334 319 253
Loans past due 90 days or
more and still accruing $18 $15 $16 $16 $14
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $157 $122 $138 $186 $212
Loans transferred to
nonaccrual (1) 39 51 20 28 81
Nonaccrual business loan
gross charge-offs (2) (14) (21) (21) (34) (40)
Loans transferred to
accrual status (1) - - - (11) -
Nonaccrual business
loans sold (3) - - (9) (4) (19)
Payments/Other (4) (8) 5 (6) (27) (48)
Nonaccrual loans at end of
period $174 $157 $122 $138 $186
(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 $14 $21 $21 $34 $40
Performing watch list loans - - 1 - 1
Consumer and residential
mortgage loans 3 4 3 4 6
Total gross loan charge-
offs $17 $25 $25 $38 $47
(3) Analysis of loans sold:
Nonaccrual business loans $- $- $9 $4 $19
Performing watch list loans 7 15 30 15 34
Total loans sold $7 $15 $39 $19 $53
(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
September 30, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) (3) $27,534 $498 7.18 %
Real estate construction loans 4,064 90 8.79
Commercial mortgage loans (1) 9,362 175 7.42
Residential mortgage loans 1,602 24 6.08
Consumer loans 2,474 45 7.32
Lease financing 1,323 13 4.00
International loans 1,766 33 7.35
Business loan swap expense - (35) -
Total loans (2) (3) 48,125 843 6.96
Investment securities available-for-sale 3,887 43 4.22
Short-term investments 488 7 5.75
Total earning assets 52,500 893 6.74
Cash and due from banks 1,561
Allowance for loan losses (495)
Accrued income and other assets 3,224
Total assets $56,790
Money market and NOW deposits (1) $14,885 116 3.07
Savings deposits (1) 1,434 3 0.87
Customer certificates of deposit (1) 6,710 70 4.17
Institutional certificates of deposit 5,180 72 5.45
Foreign office time deposits 924 11 4.96
Total interest-bearing deposits 29,133 272 3.70
Short-term borrowings 2,125 28 5.29
Medium- and long-term debt 6,297 91 5.73
Total interest-bearing sources 37,555 391 4.13
Noninterest-bearing deposits (1) 12,723
Accrued expenses and other liabilities 1,309
Common shareholders' equity 5,203
Total liabilities and
shareholders' equity $56,790
Net interest income/rate spread (FTE) $502 2.61
FTE adjustment $-
Impact of net noninterest-bearing
sources of funds 1.18
Net interest margin (as a percentage
of average earning assets) (FTE) (2) (3) 3.79 %
(1) FSD balances included above:
Loans (primarily low-rate) $2,093 $3 0.64 %
Interest-bearing deposits 1,465 15 3.95
Noninterest-bearing deposits 4,079
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.54) %
Total loans (0.28)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.14)
(3) Impact of third quarter 2005
warrant accounting change on the
following:
Commercial loans
Total loans
Net interest margin (FTE)
Three Months Ended
June 30, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) (3) $27,587 $465 6.78 %
Real estate construction loans 3,816 82 8.63
Commercial mortgage loans (1) 9,229 166 7.24
Residential mortgage loans 1,537 23 6.02
Consumer loans 2,533 45 7.07
Lease financing 1,299 14 4.10
International loans 1,801 31 6.88
Business loan swap expense - (33) -
Total loans (2) (3) 47,802 793 6.66
Investment securities available-for- sale 4,088 45 4.27
Short-term investments 481 8 6.31
Total earning assets 52,371 846 6.46
Cash and due from banks 1,561
Allowance for loan losses (485)
Accrued income and other assets 3,164
Total assets $56,611
Money market and NOW deposits (1) $15,330 106 2.78
Savings deposits (1) 1,480 3 0.75
Customer certificates of deposit (1) 6,216 60 3.83
Institutional certificates of deposit 4,327 54 5.04
Foreign office time deposits 1,093 13 4.87
Total interest-bearing deposits 28,446 236 3.33
Short-term borrowings 3,720 45 4.90
Medium- and long-term debt 4,538 64 5.65
Total interest-bearing sources 36,704 345 3.77
Noninterest-bearing deposits (1) 13,575
Accrued expenses and other liabilities 1,186
Common shareholders' equity 5,146
Total liabilities and
shareholders' equity $56,611
Net interest income/rate spread (FTE) $501 2.69
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.13
Net interest margin (as a percentage of
average earning assets) (FTE) (2) (3) 3.82 %
(1) FSD balances included above:
Loans (primarily low-rate) $2,557 $4 0.60 %
Interest-bearing deposits 1,764 17 3.88
Noninterest-bearing deposits 4,793
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.63) %
Total loans (0.34)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.18)
(3) Impact of third quarter 2005
warrant accounting change on the following:
Commercial loans
Total loans
Net interest margin (FTE)
Three Months Ended
September 30, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) (3) $25,230 $378 5.95 %
Real estate construction loans 3,202 60 7.40
Commercial mortgage loans (1) 8,631 138 6.37
Residential mortgage loans 1,418 20 5.76
Consumer loans 2,703 41 6.04
Lease financing 1,300 10 2.98
International loans 2,098 33 6.27
Business loan swap expense - (5) -
Total loans (2) (3) 44,582 675 6.01
Investment securities available-for-sale 3,935 38 3.80
Short-term investments 549 7 4.76
Total earning assets 49,066 720 5.82
Cash and due from banks 1,788
Allowance for loan losses (601)
Accrued income and other assets 3,209
Total assets $53,462
Money market and NOW deposits (1) $16,987 89 2.09
Savings deposits (1) 1,531 2 0.52
Customer certificates of deposit (1) 5,482 40 2.86
Institutional certificates of deposit 430 4 3.63
Foreign office time deposits 1,110 12 4.21
Total interest-bearing deposits 25,540 147 2.28
Short-term borrowings 1,804 16 3.52
Medium- and long-term debt 4,144 44 4.26
Total interest-bearing sources 31,488 207 2.61
Noninterest-bearing deposits (1) 15,734
Accrued expenses and other liabilities 1,124
Common shareholders' equity 5,116
Total liabilities and
shareholders' equity $53,462
Net interest income/rate spread (FTE) $513 3.21
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 0.94
Net interest margin (as a percentage of
average earning assets) (FTE) (2) (3) 4.15 %
(1) FSD balances included above:
Loans (primarily low-rate) $2,334 $2 0.42 %
Interest-bearing deposits 2,578 20 3.04
Noninterest-bearing deposits 6,430
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.56) %
Total loans (0.31)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.18)
(3) Impact of third quarter 2005
warrant accounting change on the following:
Commercial loans $20 0.32 %
Total loans 20 0.18
Net interest margin (FTE) 20 0.16
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Nine Months Ended
September 30, 2006
Average Average (dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) (3) $27,251 $1,375 6.75 %
Real estate construction loans 3,805 244 8.57
Commercial mortgage loans (1) 9,198 496 7.22
Residential mortgage loans 1,544 69 5.99
Consumer loans 2,555 135 7.07
Lease financing 1,307 40 4.04
International loans 1,815 94 6.93
Business loan swap income (expense) - (93) -
Total loans (2) (3) 47,475 2,360 6.65
Investment securities available-for-sale 4,042 132 4.20
Short-term investments 438 20 6.06
Total earning assets 51,955 2,512 6.44
Cash and due from banks 1,589
Allowance for loan losses (497)
Accrued income and other assets 3,184
Total assets $56,231
Money market and NOW deposits (1) $15,597 327 2.80
Savings deposits (1) 1,463 8 0.76
Customer certificates of deposit (1) 6,275 181 3.86
Institutional certificates of deposit 4,053 156 5.13
Foreign office time deposits 1,007 35 4.70
Total interest-bearing deposits 28,395 707 3.33
Short-term borrowings 3,193 115 4.84
Medium- and long-term debt 4,963 207 5.57
Total interest-bearing sources 36,551 1,029 3.76
Noninterest-bearing deposits (1) 13,299
Accrued expenses and other liabilities 1,240
Common shareholders' equity 5,141
Total liabilities and
shareholders' equity $56,231
Net interest income/rate spread (FTE) $1,483 2.68
FTE adjustment $2
Impact of net noninterest-bearing
sources of funds 1.12
Net interest margin (as a percentage
of average earning assets) (FTE) (2) (3) 3.80 %
(1) FSD balances included above:
Loans (primarily low-rate) $2,516 $10 0.55 %
Interest-bearing deposits 1,835 53 3.84
Noninterest-bearing deposits 4,516
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.63)%
Total loans (0.34)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.18)
(3) Impact of third quarter 2005
warrant accounting change on the following:
Commercial loans
Total loans
Net interest margin (FTE)
Nine Months Ended
September 30, 2005
Average Average (dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) (3) $24,207 $994 5.49 %
Real estate construction loans 3,119 163 6.97
Commercial mortgage loans (1) 8,488 385 6.07
Residential mortgage loans 1,362 58 5.70
Consumer loans 2,703 115 5.70
Lease financing 1,281 36 3.72
International loans 2,173 95 5.82
Business loan swap income (expense) - 14 -
Total loans (2) (3) 43,333 1,860 5.74
Investment securities available-for-sale 3,802 107 3.69
Short-term investments 581 18 4.18
Total earning assets 47,716 1,985 5.55
Cash and due from banks 1,709
Allowance for loan losses (644)
Accrued income and other assets 3,178
Total assets $51,959
Money market and NOW deposits (1) $17,326 235 1.81
Savings deposits (1) 1,560 6 0.45
Customer certificates of deposit (1) 5,362 103 2.57
Institutional certificates of deposit 299 7 3.14
Foreign office time deposits 855 26 4.08
Total interest-bearing deposits 25,402 377 1.98
Short-term borrowings 1,148 28 3.26
Medium- and long-term debt 4,244 121 3.82
Total interest-bearing sources 30,794 526 2.28
Noninterest-bearing deposits (1) 14,955
Accrued expenses and other liabilities 1,114
Common shareholders' equity 5,096
Total liabilities and
shareholders' equity $51,959
Net interest income/rate spread (FTE) $1,459 3.27
FTE adjustment $3
Impact of net noninterest-bearing
sources of funds 0.81
Net interest margin (as a percentage
of average earning assets) (FTE) (2) (3) 4.08 %
(1) FSD balances included above:
Loans (primarily low-rate) $1,598 $6 0.48 %
Interest-bearing deposits 2,596 53 2.75
Noninterest-bearing deposits 5,846
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.35)%
Total loans (0.20)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.13)
(3) Impact of third quarter 2005
warrant accounting change on the following:
Commercial loans $20 0.11 %
Total loans 20 0.06
Net interest margin (FTE) 20 0.06
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
September 30, June 30, March 31,
(in millions, except per share data) 2006 2006 2006
Commercial loans:
Floor plan $2,628 $3,166 $3,078
Other 23,127 22,762 21,660
Total commercial loans 25,755 25,928 24,738
Real estate construction loans:
Real estate construction
business line 3,352 3,222 2,996
Other 770 736 683
Total real estate construction
loans 4,122 3,958 3,679
Commercial mortgage loans:
Commercial real estate business
line 1,529 1,537 1,483
Other 7,956 7,826 7,663
Total commercial mortgage loans 9,485 9,363 9,146
Residential mortgage loans 1,622 1,568 1,516
Consumer loans:
Home equity 1,668 1,740 1,748
Other consumer 830 753 859
Total consumer loans 2,498 2,493 2,607
Lease financing 1,321 1,325 1,292
International loans 1,712 1,764 1,761
Total loans $46,515 $46,399 $44,739
Goodwill $213 $213 $213
Other intangible assets 1 1 1
Loan servicing rights 15 16 17
Deferred mutual fund distribution costs 6 6 6
Tier 1 common capital ratio* 7.49 % 7.69 % 7.66 %
Tier 1 risk-based capital ratio* 8.05 8.26 8.24
Total risk-based capital ratio * 11.26 11.55 11.68
Leverage ratio* 9.66 9.83 9.84
Book value per share $32.79 $31.99 $31.39
Market value per share for the quarter:
High $58.95 $60.10 $58.62
Low 51.45 50.12 54.23
Close 56.92 51.99 57.97
Quarterly ratios:
Return on average common
shareholders' equity 15.38 % 15.50 % 15.33 %
Return on average assets 1.41 1.41 1.41
Efficiency ratio 57.23 55.50 63.47
Number of banking offices 382 378 374
Number of employees - full time
equivalent 10,735 10,718 10,687
* September 30, 2006 ratios are estimated
December 31, September 30,
(in millions, except per share data) 2005 2005
Commercial loans:
Floor plan $2,847 $2,065
Other 20,698 20,689
Total commercial loans 23,545 22,754
Real estate construction loans:
Real estate construction
business line 2,831 2,674
Other 651 615
Total real estate construction loans 3,482 3,289
Commercial mortgage loans:
Commercial real estate business line 1,450 1,440
Other 7,417 7,260
Total commercial mortgage loans 8,867 8,700
Residential mortgage loans 1,485 1,444
Consumer loans:
Home equity 1,775 1,818
Other consumer 922 878
Total consumer loans 2,697 2,696
Lease financing 1,295 1,286
International loans 1,876 1,972
Total loans $43,247 $42,141
Goodwill $213 $247
Other intangible assets 1 1
Loan servicing rights 19 19
Deferred mutual fund distribution
costs 6 7
Tier 1 common capital ratio* 7.78 % 7.98 %
Tier 1 risk-based capital ratio* 8.38 8.60
Total risk-based capital ratio * 11.65 12.07
Leverage ratio* 9.97 10.07
Book value per share $31.11 $30.81
Market value per share for the quarter:
High $60.25 $63.38
Low 53.60 56.80
Close 56.76 58.90
Quarterly ratios:
Return on average common
shareholders' equity 16.28 % 18.59 %
Return on average assets 1.53 1.78
Efficiency ratio 66.19 56.59
Number of banking offices 383 372
Number of employees - full time
equivalent 10,816 10,779
* September 30, 2006 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
September 30, December 31, September 30,
(in millions, except share data) 2006 2005 2005
ASSETS
Cash and due from subsidiary bank $7 $11 $16
Short-term investments with subsidiary
bank 294 264 289
Other short-term investments 88 - -
Investment in subsidiaries,
principally banks 5,719 5,587 5,597
Premises and equipment 4 3 3
Other assets 150 257 256
Total assets $6,262 $6,122 $6,161
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt $807 $813 $817
Other liabilities 247 241 253
Total liabilities 1,054 1,054 1,070
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
9/30/06, 12/31/05 and 9/30/05 894 894 894
Capital surplus 507 461 448
Accumulated other comprehensive loss (128) (170) (158)
Retained earnings 5,079 4,796 4,683
Less cost of common stock in treasury
- 19,892,137 shares at 9/30/06,
15,834,985 shares at 12/31/05 and
13,469,654 shares at 9/30/05 (1,144) (913) (776)
Total shareholders' equity 5,208 5,068 5,091
Total liabilities and
shareholders' equity $6,262 $6,122 $6,161
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
(in millions, except per share data)
Common Stock Capital
In Shares Amount Surplus
BALANCE AT JANUARY 1, 2005 170.5 $894 $421
Net income - - -
Other comprehensive
loss, net of tax - - -
Total comprehensive income
Cash dividends declared on common
stock ($1.65 per share) - - -
Purchase of common stock (6.5) - -
Net issuance of common stock
under employee stock plans 1.3 - (5)
Recognition of share-based
compensation expense - - 32
BALANCE AT SEPTEMBER 30, 2005 165.3 $894 $448
BALANCE AT JANUARY 1, 2006 162.9 $894 $461
Net income - - -
Other comprehensive
income, net of tax - - -
Total comprehensive income
Cash dividends declared on common
stock ($1.77 per share) - - -
Purchase of common stock (5.2) - -
Net issuance of common stock
under employee stock plans 1.4 - (16)
Recognition of share- based
compensation expense - - 45
Employee deferred compensation
obligations (0.3) - 17
BALANCE AT SEPTEMBER 30, 2006 158.8 $894 $507
Accumulated
Other
Comprehensive Retained
Loss Earnings
BALANCE AT JANUARY 1, 2005 $(69) $4,331
Net income - 654
Other comprehensive
loss, net of tax (89) -
Total comprehensive income
Cash dividends declared on common
stock ($1.65 per share) - (277)
Purchase of common stock - -
Net issuance of common stock
under employee stock plans - (25)
Recognition of share-based
compensation expense - -
BALANCE AT SEPTEMBER 30, 2005 $(158) $4,683
BALANCE AT JANUARY 1, 2006 $(170) $4,796
Net income - 594
Other comprehensive
income, net of tax 42 -
Total comprehensive income
Cash dividends declared on common
stock ($1.77 per share) - (286)
Purchase of common stock - -
Net issuance of common stock
under employee stock plans - (25)
Recognition of share- based
compensation expense - -
Employee deferred compensation
obligations - -
BALANCE AT SEPTEMBER 30, 2006 $(128) $5,079
Total
Treasury Shareholders'
Stock Equity
BALANCE AT JANUARY 1, 2005 $(472) $5,105
Net income - 654
Other comprehensive
loss, net of tax - (89)
Total comprehensive income 565
Cash dividends declared on common
stock ($1.65 per share) - (277)
Purchase of common stock (379) (379)
Net issuance of common stock
under employee stock plans 75 45
Recognition of share-based
compensation expense - 32
BALANCE AT SEPTEMBER 30, 2005 $(776) $5,091
BALANCE AT JANUARY 1, 2006 $(913) $5,068
Net income - 594
Other comprehensive
income, net of tax - 42
Total comprehensive income 636
Cash dividends declared on common
stock ($1.77 per share) - (286)
Purchase of common stock (299) (299)
Net issuance of common stock
under employee stock plans 85 44
Recognition of share- based
compensation expense - 45
Employee deferred compensation
obligations (17) -
BALANCE AT SEPTEMBER 30, 2006 $(1,144) $5,208
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Business Bank
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $332 $333 $368
Provision for loan losses 15 22 (34)
Noninterest income 55 71 72
Noninterest expenses 166 177 184
Provision (benefit) for income taxes
(FTE) 61 65 96
Income from discontinued operations,
net of tax - - -
Net income (loss) $145 $140 $194
Net loan charge-offs $(3) $11 $16
Selected average balances:
Assets $39,722 $39,401 $36,506
Loans 38,473 38,175 35,273
Deposits 17,183 17,931 20,877
Liabilities 18,122 18,910 21,622
Attributed equity 2,639 2,608 2,548
Statistical data:
Return on average assets (1) 1.46 % 1.42 % 2.12 %
Return on average attributed equity 21.94 21.44 30.36
Net interest margin (2) 3.41 3.48 4.17
Efficiency ratio 42.81 43.95 42.01
Finance
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $(28) $(30) $(47)
Provision for loan losses - - -
Noninterest income 16 14 11
Noninterest expenses - - (1)
Provision (benefit) for income taxes
(FTE) (7) (9) (15)
Income from discontinued operations,
net of tax - - -
Net income (loss) $(5) $(7) $(20)
Net loan charge-offs $- $- $-
Selected average balances:
Assets $5,277 $5,481 $5,525
Loans 18 26 (22)
Deposits 5,682 4,987 1,008
Liabilities 14,072 13,114 6,995
Attributed equity 496 463 517
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
Retail Bank
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $160 $161 $153
Provision for loan losses 6 7 -
Noninterest income 53 54 54
Noninterest expenses 153 152 139
Provision (benefit) for income taxes
(FTE) 18 19 24
Income from discontinued operations,
net of tax - - -
Net income (loss) $36 $37 $44
Net loan charge-offs $6 $8 $7
Selected average balances:
Assets $6,741 $6,730 $6,559
Loans 6,037 6,034 5,862
Deposits 16,742 16,742 16,774
Liabilities 16,746 16,743 16,768
Attributed equity 825 836 805
Statistical data:
Return on average assets (1) 0.83 % 0.83 % 1.00 %
Return on average attributed equity 17.58 17.50 21.89
Net interest margin (2) 3.80 3.86 3.66
Efficiency ratio 71.81 70.76 66.93
Other
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $1 $(1) $1
Provision for loan losses (6) (1) 8
Noninterest income 7 - 13
Noninterest expenses 1 (18) 11
Provision (benefit) for income taxes
(FTE) 9 9 (2)
Income from discontinued operations,
net of tax 5 5 5
Net income (loss) $9 $14 $2
Net loan charge-offs $- $(1) $1
Selected average balances:
Assets $1,336 $1,329 $1,295
Loans 20 37 47
Deposits (78) (130) 65
Liabilities 321 209 417
Attributed equity 948 941 946
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
Wealth & Institutional Management
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $37 $38 $38
Provision for loan losses - (1) (4)
Noninterest income 65 66 65
Noninterest expenses 80 80 78
Provision (benefit) for income taxes
(FTE) 7 9 11
Income from discontinued operations,
net of tax - - -
Net income (loss) $15 $16 $18
Net loan charge-offs $- $- $(3)
Selected average balances:
Assets $3,714 $3,670 $3,577
Loans 3,577 3,530 3,422
Deposits 2,327 2,491 2,550
Liabilities 2,326 2,489 2,544
Attributed equity 295 298 300
Statistical data:
Return on average assets (1) 1.59 % 1.72 % 2.04 %
Return on average attributed equity 20.06 21.24 24.33
Net interest margin (2) 4.13 4.30 4.43
Efficiency ratio 78.27 77.45 75.86
Total
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $502 $501 $513
Provision for loan losses 15 27 (30)
Noninterest income 196 205 215
Noninterest expenses 400 391 411
Provision (benefit) for income taxes
(FTE) 88 93 114
Income from discontinued operations,
net of tax 5 5 5
Net income (loss) $200 $200 $238
Net loan charge-offs $3 $18 $21
Selected average balances:
Assets $56,790 $56,611 $53,462
Loans 48,125 47,802 44,582
Deposits 41,856 42,021 41,274
Liabilities 51,587 51,465 48,346
Attributed equity 5,203 5,146 5,116
Statistical data:
Return on average assets (1) 1.41 % 1.41 % 1.78 %
Return on average attributed equity 15.38 15.50 18.59
Net interest margin (2) 3.79 3.82 4.15
Efficiency ratio 57.23 55.50 56.59
(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
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $274 $275 $273
Provision for loan losses 21 21 10
Noninterest income 127 135 139
Noninterest expenses 228 237 224
Provision (benefit) for income taxes
(FTE) 41 44 54
Income from discontinued operations,
net of tax - - -
Net income (loss) $111 $108 $124
Net loan charge-offs $1 $15 $23
Selected average balances:
Assets $25,286 $25,189 $25,089
Loans 24,043 23,989 23,826
Deposits 18,243 18,271 18,857
Liabilities 19,095 19,106 19,575
Attributed equity 2,013 2,025 2,046
Statistical data:
Return on average assets (1) 1.75 % 1.71 % 1.97 %
Return on average attributed equity 21.99 21.27 24.16
Net interest margin (2) 4.49 4.57 4.55
Efficiency ratio 56.92 58.06 54.59
Florida
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $12 $12 $11
Provision for loan losses (3) 5 (4)
Noninterest income 4 3 3
Noninterest expenses 9 8 7
Provision (benefit) for income taxes
(FTE) 3 1 4
Income from discontinued operations,
net of tax - - -
Net income (loss) $7 $1 $7
Net loan charge-offs $- $- $1
Selected average balances:
Assets $1,859 $1,855 $1,446
Loans 1,842 1,834 1,435
Deposits 313 312 318
Liabilities 317 312 316
Attributed equity 97 90 73
Statistical data:
Return on average assets (1) 1.46 % 0.29 % 1.99 %
Return on average attributed equity 27.91 6.05 39.17
Net interest margin (2) 2.63 2.62 3.19
Efficiency ratio 56.49 55.38 49.59
Western
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $176 $180 $215
Provision for loan losses 4 2 (50)
Noninterest income 23 34 29
Noninterest expenses 108 110 122
Provision (benefit) for income taxes
(FTE) 31 38 64
Income from discontinued operations,
net of tax - - -
Net income (loss) $56 $64 $108
Net loan charge-offs $- $3 $(2)
Selected average balances:
Assets $16,557 $16,644 $14,853
Loans 16,000 16,067 14,227
Deposits 14,005 14,898 17,415
Liabilities 14,075 15,034 17,433
Attributed equity 1,105 1,098 1,053
Statistical data:
Return on average assets (1) 1.35 % 1.52 % 2.33 %
Return on average attributed equity 20.24 23.04 40.86
Net interest margin (2) 4.37 4.48 4.94
Efficiency ratio 54.14 51.44 50.00
Finance & Other Businesses
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $(27) $(31) $(46)
Provision for loan losses (6) (1) 8
Noninterest income 23 14 24
Noninterest expenses 1 (18) 10
Provision (benefit) for income taxes
(FTE) 2 - (17)
Income from discontinued operations,
net of tax 5 5 5
Net income (loss) $4 $7 $(18)
Net loan charge-offs $- $(1) $-
Selected average balances:
Assets $6,613 $6,810 $6,820
Loans 38 63 25
Deposits 5,604 4,857 1,073
Liabilities 14,393 13,323 7,412
Attributed equity 1,444 1,404 1,463
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
Texas
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $67 $65 $60
Provision for loan losses (1) - 6
Noninterest income 19 19 20
Noninterest expenses 54 54 48
Provision (benefit) for income taxes
(FTE) 11 10 9
Income from discontinued operations,
net of tax - - -
Net income (loss) $22 $20 $17
Net loan charge-offs $2 $1 $(1)
Selected average balances:
Assets $6,475 $6,113 $5,254
Loans 6,202 5,849 5,069
Deposits 3,691 3,683 3,611
Liabilities 3,707 3,690 3,610
Attributed equity 544 529 481
Statistical data:
Return on average assets (1) 1.39 % 1.30 % 1.32 %
Return on average attributed equity 16.51 15.03 14.47
Net interest margin (2) 4.28 4.44 4.78
Efficiency ratio 62.20 64.45 59.64
Total
September 30, June 30, September 30,
Three Months Ended 2006 2006 2005
Earnings summary:
Net interest income (expense) (FTE) $502 $501 $513
Provision for loan losses 15 27 (30)
Noninterest income 196 205 215
Noninterest expenses 400 391 411
Provision (benefit) for income taxes
(FTE) 88 93 114
Income from discontinued operations,
net of tax 5 5 5
Net income (loss) $200 $200 $238
Net loan charge-offs $3 $18 $21
Selected average balances:
Assets $56,790 $56,611 $53,462
Loans 48,125 47,802 44,582
Deposits 41,856 42,021 41,274
Liabilities 51,587 51,465 48,346
Attributed equity 5,203 5,146 5,116
Statistical data:
Return on average assets (1) 1.41 % 1.41 % 1.78 %
Return on average attributed equity 15.38 15.50 18.59
Net interest margin (2) 3.79 3.82 4.15
Efficiency ratio 57.23 55.50 56.59
(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
SUPPLEMENTAL INFORMATION
Comerica Incorporated and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
(Restated to reflect Munder Capital Management, Inc.
as a discontinued operation)
Years Ended December 31 2005 2004 2003
(in millions, except per share data)
INTEREST INCOME
Interest and fees on loans $2,554 $2,055 $2,213
Interest on investment securities 148 147 165
Interest on short-term investments 24 36 36
Total interest income 2,726 2,238 2,414
INTEREST EXPENSE
Interest on deposits 548 315 370
Interest on short-term borrowings 52 4 7
Interest on medium- and long-term debt 170 108 109
Total interest expense 770 427 486
Net interest income 1,956 1,811 1,928
Provision for loan losses (47) 64 377
Net interest income after
provision for loan losses 2,003 1,747 1,551
NONINTEREST INCOME
Service charges on deposit accounts 218 231 238
Fiduciary income 179 172 170
Commercial lending fees 63 55 63
Letter of credit fees 70 66 65
Foreign exchange income 37 37 36
Brokerage fees 36 36 34
Card fees 39 32 27
Bank-owned life insurance 38 34 42
Warrant income 9 7 4
Net securities gains - - 50
Net gain on sales of businesses 1 7 -
Other noninterest income 134 137 125
Total noninterest income 824 814 854
NONINTEREST EXPENSES
Salaries 786 736 713
Employee benefits 178 154 156
Total salaries and employee
benefits 964 890 869
Net occupancy expense 118 122 126
Equipment expense 53 54 56
Outside processing fee expense 77 67 70
Software expense 49 43 37
Customer services 69 23 25
Litigation and operational losses 14 24 18
Provision for credit losses on
lending-related commitments 18 (12) (2)
Other noninterest expenses 256 253 257
Total noninterest expenses 1,618 1,464 1,456
Income from continuing operations
before income taxes 1,209 1,097 949
Provision for income taxes 393 349 291
Income from continuing operations 816 748 658
Income from discontinued operations,
net of tax 45 9 3
NET INCOME $861 $757 $661
Basic earnings per common share:
Income from continuing operations $4.90 $4.36 $3.76
Net income 5.17 4.41 3.78
Diluted earnings per common share:
Income from continuing operations 4.84 4.31 3.73
Net income 5.11 4.36 3.75
Cash dividends declared on common stock 367 356 350
Dividends per common share 2.20 2.08 2.00
