/FIRST AND FINAL ADD -- CLTU045 -- Comerica Earnings/
PRNewswire
(:CMA)
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Three Months Ended
December
March 31, Dec. 31, March 31,
(in millions, except per share data) 2007 2006 2006
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $1.19 $1.16 $1.26
Diluted net income 1.19 1.87 1.18
Cash dividends declared 0.64 0.59 0.59
Common shareholders' equity (at
period end) 32.84 32.70 31.39
Average diluted shares (in thousands) 158,915 160,063 164,057
KEY RATIOS
Return on average common
shareholders' equity from continuing
operations 14.83 % 14.03 % 16.31 %
Return on average common
shareholders' equity 14.86 22.63 15.33
Return on average assets from
continuing operations 1.33 1.29 1.50
Return on average assets 1.33 2.07 1.41
Average common shareholders' equity
as a percentage of average assets 8.93 9.16 9.17
Tier 1 common capital ratio * 7.47 7.54 7.66
Tier 1 risk-based capital ratio * 8.17 8.02 8.24
Total risk-based capital ratio * 12.21 11.63 11.68
Leverage ratio * 9.98 9.76 9.84
AVERAGE BALANCES
Commercial loans $27,757 $27,609 $26,620
Real estate construction loans 4,249 4,204 3,530
Commercial mortgage loans 9,673 9,515 8,998
Residential mortgage loans 1,705 1,647 1,492
Consumer loans 2,405 2,468 2,660
Lease financing 1,273 1,335 1,298
International loans 1,834 1,790 1,881
Total loans 48,896 48,568 46,479
Earning assets 53,148 53,289 50,977
Total assets 57,088 57,612 55,277
Interest-bearing deposits 30,417 30,554 27,589
Total interest-bearing liabilities 38,498 38,334 35,371
Noninterest-bearing deposits 12,162 12,649 13,609
Common shareholders' equity 5,101 5,280 5,072
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $503 $503 $480
Fully taxable equivalent adjustment 1 1 1
Net interest margin 3.82 % 3.75 % 3.80 %
CREDIT QUALITY
Nonaccrual loans $218 $214 $122
Foreclosed property 15 18 19
Total nonperforming assets 233 232 141
Loans past due 90 days or more and
still accruing 15 14 16
Gross loan charge-offs 34 31 25
Loan recoveries 18 9 8
Net loan charge-offs 16 22 17
Lending-related commitment charge-offs 3 1 5
Total net credit-related charge-offs 19 23 22
Allowance for loan losses 500 493 472
Allowance for credit losses on
lending-related commitments 21 26 41
Total allowance for credit losses 521 519 513
Allowance for loan losses as a
percentage of total loans 1.04 % 1.04 % 1.06 %
Net loan charge-offs as a percentage
of average total loans 0.13 0.18 0.14
Net credit-related charge-offs as a
percentage of average total loans 0.16 0.19 0.19
Nonperforming assets as a percentage
of total loans, and foreclosed
property 0.49 0.49 0.32
Allowance for loan losses as a
percentage of total nonperforming
assets 214 213 334
* March 31, 2007 ratios are estimated
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
March 31, Dec. 31, March 31,
(in millions, except share data) 2007 2006 2006
ASSETS
Cash and due from banks $1,334 $1,434 $1,685
Federal funds sold and securities
purchased under agreements to resell 1,457 2,632 2,837
Other short-term investments 220 327 190
Investment securities available-for-
sale 3,989 3,662 4,251
Commercial loans 26,681 26,265 24,738
Real estate construction loans 4,462 4,203 3,679
Commercial mortgage loans 9,592 9,659 9,146
Residential mortgage loans 1,741 1,677 1,516
Consumer loans 2,392 2,423 2,607
Lease financing 1,273 1,353 1,292
International loans 1,848 1,851 1,761
Total loans 47,989 47,431 44,739
Less allowance for loan losses (500) (493) (472)
Net loans 47,489 46,938 44,267
Premises and equipment 596 568 516
Customers' liability on acceptances
outstanding 55 56 60
Accrued income and other assets 2,387 2,384 2,635
Total assets $57,527 $58,001 $56,441
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $13,584 $13,901 $15,772
Money market and NOW deposits 14,815 15,250 15,653
Savings deposits 1,410 1,365 1,480
Customer certificates of deposit 7,447 7,223 6,122
Institutional certificates of deposit 5,679 5,783 4,129
Foreign office time deposits 735 1,405 940
Total interest-bearing deposits 30,086 31,026 28,324
Total deposits 43,670 44,927 44,096
Short-term borrowings 329 635 1,901
Acceptances outstanding 55 56 60
Accrued expenses and other
liabilities 1,205 1,281 1,228
Medium- and long-term debt 7,148 5,949 4,062
Total liabilities 52,407 52,848 51,347
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
3/31/07, 12/31/06 and 3/31/06 894 894 894
Capital surplus 524 520 466
Accumulated other comprehensive loss (284) (324) (198)
Retained earnings 5,311 5,282 4,880
Less cost of common stock in treasury
- 22,834,368 shares at 3/31/07,
21,161,161 shares at 12/31/06 and
16,461,565 shares at 3/31/06 (1,325) (1,219) (948)
Total shareholders' equity 5,120 5,153 5,094
Total liabilities and
shareholders' equity $57,527 $58,001 $56,441
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Ended
March 31,
(in millions, except per share data) 2007 2006
INTEREST INCOME
Interest and fees on loans $851 $723
Interest on investment securities 42 44
Interest on short-term investments 8 5
Total interest income 901 772
INTEREST EXPENSE
Interest on deposits 286 199
Interest on short-term borrowings 22 42
Interest on medium- and long-term debt 91 52
Total interest expense 399 293
Net interest income 502 479
Provision for loan losses 23 (27)
Net interest income after
provision for loan losses 479 506
NONINTEREST INCOME
Service charges on deposit accounts 54 54
Fiduciary income 50 44
Commercial lending fees 16 15
Letter of credit fees 16 16
Foreign exchange income 9 10
Brokerage fees 11 10
Card fees 12 11
Bank-owned life insurance 9 13
Net income (loss) from principal
investing and warrants (4) 3
Net securities losses - (2)
Net gain (loss) on sales of businesses 1 (5)
Other noninterest income 29 26
Total noninterest income 203 195
NONINTEREST EXPENSES
Salaries 206 193
Employee benefits 46 50
Total salaries and employee benefits 252 243
Net occupancy expense 35 30
Equipment expense 15 13
Outside processing fee expense 20 21
Software expense 15 14
Customer services 14 13
Litigation and operational losses 3 1
Provision for credit losses on
lending-related commitments (2) 13
Other noninterest expenses 55 81
Total noninterest expenses 407 429
Income from continuing operations
before income taxes 275 272
Provision for income taxes 86 65
Income from continuing operations 189 207
Income (loss) from discontinued
operations, net of tax 1 (13)
NET INCOME $190 $194
Basic earnings per common share:
Income from continuing operations $1.21 $1.28
Net income 1.21 1.20
Diluted earnings per common share:
Income from continuing operations 1.19 1.26
Net income 1.19 1.18
Cash dividends declared on common stock 101 96
Dividends per common share 0.64 0.59
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
(in millions, except per 2007 2006 2006 2006 2006
share data)
INTEREST INCOME
Interest and fees on loans $851 $858 $843 $792 $723
Interest on investment securities 42 42 43 45 44
Interest on short-term investments 8 12 7 8 5
Total interest income 901 912 893 845 772
INTEREST EXPENSE
Interest on deposits 286 298 272 236 199
Interest on short-term borrowings 22 15 28 45 42
Interest on medium- and long-term
debt 91 97 91 64 52
Total interest expense 399 410 391 345 293
Net interest income 502 502 502 500 479
Provision for loan losses 23 22 15 27 (27)
Net interest income after
provision for loan losses 479 480 487 473 506
NONINTEREST INCOME
Service charges on deposit accounts 54 54 56 54 54
Fiduciary income 50 47 45 44 44
Commercial lending fees 16 19 16 15 15
Letter of credit fees 16 16 17 15 16
Foreign exchange income 9 10 9 9 10
Brokerage fees 11 10 10 10 10
Card fees 12 12 11 12 11
Bank-owned life insurance 9 9 8 10 13
Net income (loss) from principal
investing and warrants (4) 3 - 4 3
Net securities gains (losses) - 1 - 1 (2)
Net gain (loss) on sales of businesses 1 - (7) - (5)
Income from lawsuit settlement - 47 - - -
Other noninterest income 29 34 30 29 26
Total noninterest income 203 262 195 203 195
NONINTEREST EXPENSES
Salaries 206 231 202 197 193
Employee benefits 46 42 48 44 50
Total salaries and employee
benefits 252 273 250 241 243
Net occupancy expense 35 34 31 30 30
Equipment expense 15 14 13 15 13
Outside processing fee expense 20 21 21 22 21
Software expense 15 15 13 14 14
Customer services 14 14 11 9 13
Litigation and operational losses 3 4 3 3 1
Provision for credit losses on
lending-related commitments (2) (4) (5) 1 13
Other noninterest expenses 55 86 62 54 81
Total noninterest expenses 407 457 399 389 429
Income from continuing operations
before income taxes 275 285 283 287 272
Provision for income taxes 86 100 88 92 65
Income from continuing operations 189 185 195 195 207
Income (loss) from discontinued
operations, net of tax 1 114 5 5 (13)
NET INCOME $190 $299 $200 $200 $194
Basic earnings per common share:
Income from continuing
operations $1.21 $1.17 $1.22 $1.21 $1.28
Net income 1.21 1.89 1.25 1.24 1.20
Diluted earnings per common share:
Income from continuing
operations 1.19 1.16 1.20 1.19 1.26
Net income 1.19 1.87 1.23 1.22 1.18
Cash dividends declared on common
stock 101 94 94 96 96
Dividends per common share 0.64 0.59 0.59 0.59 0.59
First Quarter 2007 Compared To:
Fourth Quarter First Quarter
2006 2006
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME
Interest and fees on loans $(7) (0.7)% $128 17.9%
Interest on investment securities - (1.1) (2) (4.6)
Interest on short-term investments (4) (39.7) 3 44.9
Total interest income (11) (1.3) 129 16.8
INTEREST EXPENSE
Interest on deposits (12) (3.9) 87 43.7
Interest on short-term borrowings 7 54.3 (20) (48.2)
Interest on medium- and long-term debt (6) (6.9) 39 75.4
Total interest expense (11) (2.6) 106 36.2
Net interest income - (0.2) 23 4.9
Provision for loan losses 1 4.5 50 N/M
Net interest income after
provision for loan losses (1) (0.4) (27) (5.2)
NONINTEREST INCOME
Service charges on deposit accounts - (2.6) - (1.3)
Fiduciary income 3 5.5 6 11.3
Commercial lending fees (3) (15.8) 1 5.5
Letter of credit fees - (2.1) - 0.5
Foreign exchange income (1) (4.7) (1) (4.5)
Brokerage fees 1 5.7 1 6.6
Card fees - 2.2 1 13.3
Bank-owned life insurance - 10.4 (4) (28.5)
Net income (loss) from principal
investing and warrants (7) N/M (7) N/M
Net securities gains (losses) (1) N/M 2 N/M
Net gain (loss) on sales of
businesses 1 N/M 6 N/M
Income from lawsuit settlement (47) N/M - N/M
Other noninterest income (5) (12.8) 3 10.4
Total noninterest income (59) (22.5) 8 4.1
NONINTEREST EXPENSES
Salaries (25) (10.6) 13 6.6
Employee benefits 4 7.5 (4) (6.8)
Total salaries and employee
benefits (21) (7.8) 9 3.8
Net occupancy expense 1 2.7 5 16.1
Equipment expense 1 5.5 2 9.8
Outside processing fee expense (1) (6.1) (1) (1.5)
Software expense - 1.8 1 11.3
Customer services - 7.6 1 5.0
Litigation and operational losses (1) (34.7) 2 173.7
Provision for credit losses on
lending-related commitments 2 51.9 (15) N/M
Other noninterest expenses (31) (36.6) (26) (32.6)
Total noninterest expenses (50) (11.1) (22) (5.1)
Income from continuing operations
before income taxes (10) (3.6) 3 1.3
Provision for income taxes (14) (14.2) 21 32.8
Income from continuing operations 4 2.2 (18) (8.5)
Income (loss) from discontinued
operations, net of tax (113) N/M 14 N/M
NET INCOME $(109) (36.5)% $(4) (2.5)%
Basic earnings per common share:
Income from continuing
operations $0.04 3.1 % $(0.07) (5.5)%
Net income (0.68) (36.0) 0.01 0.8
Diluted earnings per common share:
Income from continuing
operations 0.03 2.9 (0.07) (5.6)
Net income (0.68) (36.4) 0.01 0.8
Cash dividends declared on common
stock 7 7.6 5 4.5
Dividends per common share 0.05 8.5 0.05 8.5
N/M - Not meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
Balance at beginning of period $493 $493 $481 $472 $516
Loan charge-offs:
Commercial 13 7 9 16 12
Real estate construction:
Commercial Real Estate
business line 1 - - - -
Other - - - - -
Total real estate
construction 1 - - - -
Commercial mortgage:
Commercial Real Estate
business line 3 3 1 - -
Other 14 4 4 3 2
Total commercial
mortgage 17 7 5 3 2
Residential mortgage - - - - -
Consumer 3 13 3 4 3
Lease financing - 3 - 1 6
International - 1 - 1 2
Total loan charge-offs 34 31 17 25 25
Recoveries on loans previously
charged-off:
Commercial 10 5 13 5 4
Real estate construction - - - - -
Commercial mortgage - 1 1 - 2
Residential mortgage - - - - -
Consumer 1 1 - 1 1
Lease financing 4 - - - -
International 3 2 - 1 1
Total recoveries 18 9 14 7 8
Net loan charge-offs 16 22 3 18 17
Provision for loan losses 23 22 15 27 (27)
Balance at end of period $500 $493 $493 $481 $472
Allowance for loan losses as a
percentage of total loans 1.04 % 1.04 % 1.06 % 1.04 % 1.06 %
Net loan charge-offs as a
percentage of average total
loans 0.13 0.18 0.02 0.15 0.14
Net credit-related charge-offs as
a percentage of average total
loans 0.16 0.19 0.06 0.16 0.19
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED
COMMITMENTS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
Balance at beginning of period $26 $31 $41 $41 $33
Less: Charge-offs on lending-related
commitments (1) 3 1 5 1 5
Add: Provision for credit losses on
lending-related commitments (2) (4) (5) 1 13
Balance at end of period $21 $26 $31 $41 $41
Unfunded lending-related commitments
sold $60 $20 $28 $14 $52
(1) Charge-offs result from the sale of unfunded lending-related
commitments.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
SUMMARY OF NONPERFORMING
ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Commercial $73 $97 $83 $74 $53
Real estate construction:
Commercial Real
Estate business line 21 18 4 5 2
Other 4 2 - - -
Total real estate
construction 25 20 4 5 2
Commercial mortgage:
Commercial Real
Estate business line 17 18 10 11 11
Other 84 54 46 35 29
Total commercial
mortgage 101 72 56 46 40
Residential mortgage 1 1 1 1 1
Consumer 4 4 5 3 2
Lease financing 4 8 12 12 7
International 10 12 13 16 17
Total nonaccrual
loans 218 214 174 157 122
Reduced-rate loans - - - - -
Total
nonperforming
loans 218 214 174 157 122
Foreclosed property 15 18 23 17 19
Total
nonperforming
assets $233 $232 $197 $174 $141
Nonperforming loans as a
percentage of total loans 0.45 % 0.45 % 0.37 % 0.34 % 0.27 %
Nonperforming assets as a
percentage of total loans
and foreclosed property 0.49 0.49 0.42 0.37 0.32
Allowance for loan losses as
a percentage
of total nonperforming
assets 214 213 251 278 334
Loans past due 90 days or
more and still accruing $15 $14 $18 $15 $16
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $214 $174 $157 $122 $138
Loans transferred to
nonaccrual (1) 69 66 39 51 20
Nonaccrual business loan
gross charge-offs (2) (31) (16) (14) (21) (21)
Loans transferred to
accrual status (1) - - - - -
Nonaccrual business
loans sold (3) (4) - - - (9)
Payments/Other (4) (30) (10) (8) 5 (6)
Nonaccrual loans at end of
period $218 $214 $174 $157 $122
(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 $31 $16 $14 $21 $21
Performing watch list
loans - 2 - - 1
Consumer and
residential mortgage
loans 3 13 3 4 3
Total gross loan charge-
offs $34 $31 $17 $25 $25
(3) Analysis of loans sold:
Nonaccrual business
loans $4 $- $- $- $9
Performing watch list
loans - 25 7 15 30
Total loans sold $4 $25 $7 $15 $39
(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, 2007
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $27,757 $499 7.30 %
Real estate construction loans 4,249 91 8.66
Commercial mortgage loans 9,673 175 7.35
Residential mortgage loans 1,705 26 6.11
Consumer loans 2,405 43 7.14
Lease financing 1,273 10 3.18
International loans 1,834 32 7.07
Business loan swap expense - (24) -
Total loans (2) 48,896 852 7.06
Investment securities available-for-
sale 3,745 42 4.35
Federal funds sold and securities
purchased under agreements to resell 276 4 5.39
Other short-term investments 231 4 6.79
Total earning assets 53,148 902 6.86
Cash and due from banks 1,480
Allowance for loan losses (503)
Accrued income and other assets 2,963
Total assets $57,088
Money market and NOW deposits (1) $14,749 111 3.05
Savings deposits 1,381 3 0.85
Customer certificates of deposit 7,345 80 4.44
Institutional certificates of deposit 5,823 78 5.44
Foreign office time deposits 1,119 14 4.96
Total interest-bearing
deposits 30,417 286 3.81
Short-term borrowings 1,655 22 5.32
Medium- and long-term debt 6,426 91 5.74
Total interest-bearing
sources 38,498 399 4.20
Noninterest-bearing deposits (1) 12,162
Accrued expenses and other
liabilities 1,327
Common shareholders' equity 5,101
Total liabilities and
shareholders' equity $57,088
Net interest income/rate spread (FTE) $503 2.66
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.16
Net interest margin (as a percentage
of average earning assets) (FTE)(2) 3.82 %
(1) FSD balances included above:
Loans (primarily low-rate) $1,569 $3 0.68 %
Interest-bearing deposits 1,248 12 3.91
Noninterest-bearing deposits 3,450
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.40) %
Total loans (0.22)
Net interest margin (FTE)
(assuming loans were
funded by noninterest-
bearing deposits) (0.11)
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
December 31, 2006 March 31, 2006
(dollar amounts in Average Average Average Average
millions) Balance Interest Rate Balance Interest Rate
Commercial loans (1) (2) $27,609 $502 7.21 % $26,620 $412 6.26 %
Real estate construction
loans 4,204 92 8.72 3,530 72 8.24
Commercial mortgage loans 9,515 178 7.43 8,998 155 6.97
Residential mortgage loans 1,647 25 6.11 1,492 22 5.88
Consumer loans 2,468 46 7.34 2,660 45 6.83
Lease financing 1,335 13 3.88 1,298 13 4.03
International loans 1,790 33 7.25 1,881 30 6.56
Business loan swap expense - (30) - - (25) -
Total loans (2) 48,568 859 7.02 46,479 724 6.30
Investment securities
available-for-sale 3,842 42 4.27 4,154 44 4.10
Federal funds sold and
securities purchased
under agreements to
resell 325 4 5.38 189 2 4.58
Other short-term
investments 554 8 5.80 155 3 7.95
Total earning assets 53,289 913 6.79 50,977 773 6.12
Cash and due from banks 1,460 1,648
Allowance for loan losses (504) (512)
Accrued income and other
assets 3,367 3,164
Total assets $57,612 $55,277
Money market and NOW
deposits (1) $14,705 117 3.15 $16,595 105 2.57
Savings deposits 1,376 3 0.90 1,476 2 0.65
Customer certificates of
deposit 7,191 80 4.39 5,887 51 3.52
Institutional certificates
of deposit 5,783 79 5.44 2,624 30 4.62
Foreign office time
deposits 1,499 19 5.06 1,007 11 4.26
Total interest-
bearing deposits 30,554 298 3.87 27,589 199 2.93
Short-term borrowings 1,053 15 5.30 3,753 42 4.52
Medium- and long-term debt 6,727 97 5.76 4,029 52 5.22
Total interest-
bearing sources 38,334 410 4.24 35,371 293 3.36
Noninterest-bearing
deposits (1) 12,649 13,609
Accrued expenses and other
liabilities 1,349 1,225
Common shareholders'
equity 5,280 5,072
Total liabilities and
shareholders' equity $57,612 $55,277
Net interest income/rate
spread (FTE) $503 2.55 $480 2.76
FTE adjustment $1 $1
Impact of net noninterest-
bearing sources of funds 1.20 1.04
Net interest margin (as a
percentage of average
earning assets) (FTE) (2) 3.75 % 3.80 %
(1) FSD balances included
above:
Loans (primarily low-
rate) $1,909 $3 0.66 % $2,909 $3 0.43 %
Interest-bearing
deposits 1,338 13 3.94 2,286 21 3.74
Noninterest-bearing
deposits 3,953 4,683
(2) Impact of FSD loans
(primarily low-rate) on
the following:
Commercial loans (0.49) % (0.72) %
Total loans (0.25) (0.40)
Net interest margin
(FTE) (assuming
loans were
funded by
noninterest-
bearing
deposits) (0.11) (0.22)
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
March 31, Dec. 31, Sept. 30,
(in millions, except per share data) 2007 2006 2006
Commercial loans:
Floor plan $2,970 $3,198 $2,628
Other 23,711 23,067 23,127
Total commercial loans 26,681 26,265 25,755
Real estate construction loans:
Commercial Real Estate business
line 3,708 3,449 3,352
Other 754 754 770
Total real estate construction
loans 4,462 4,203 4,122
Commercial mortgage loans:
Commercial Real Estate business
line 1,286 1,534 1,529
Other 8,306 8,125 7,956
Total commercial mortgage loans 9,592 9,659 9,485
Residential mortgage loans 1,741 1,677 1,622
Consumer loans:
Home equity 1,570 1,591 1,668
Other consumer 822 832 830
Total consumer loans 2,392 2,423 2,498
Lease financing 1,273 1,353 1,321
International loans 1,848 1,851 1,712
Total loans $47,989 $47,431 $46,515
Goodwill $150 $150 $213
Loan servicing rights 14 14 15
Tier 1 common capital ratio* 7.47 % 7.54 % 7.48 %
Tier 1 risk-based capital ratio* 8.17 8.02 8.04
Total risk-based capital ratio * 12.21 11.63 11.25
Leverage ratio* 9.98 9.76 9.68
Book value per share $32.84 $32.70 $32.79
Market value per share for the
quarter:
High $63.39 $59.72 $58.95
Low 56.77 55.82 51.45
Close 59.12 58.68 56.92
Quarterly ratios:
Return on average common
shareholders' equity 14.86 % 22.63 % 15.38 %
Return on average assets 1.33 2.07 1.41
Efficiency ratio 57.66 59.81 57.15
Number of banking centers 402 393 382
Number of employees - full time
equivalent
Continuing operations 10,661 10,700 10,568
Discontinued operations - - 167
June 30, March 31,
(in millions, except per share data) 2006 2006
Commercial loans:
Floor plan $3,166 $3,078
Other 22,762 21,660
Total commercial loans 25,928 24,738
Real estate construction loans:
Commercial Real Estate business
line 3,222 2,996
Other 736 683
Total real estate construction
loans 3,958 3,679
Commercial mortgage loans:
Commercial Real Estate business
line 1,537 1,483
Other 7,826 7,663
Total commercial mortgage
loans 9,363 9,146
Residential mortgage loans 1,568 1,516
Consumer loans:
Home equity 1,740 1,748
Other consumer 753 859
Total consumer loans 2,493 2,607
Lease financing 1,325 1,292
International loans 1,764 1,761
Total loans $46,399 $44,739
Goodwill $213 $213
Loan servicing rights 16 17
Tier 1 common capital ratio* 7.69 % 7.66 %
Tier 1 risk-based capital ratio* 8.26 8.24
Total risk-based capital ratio * 11.55 11.68
Leverage ratio* 9.83 9.84
Book value per share $31.99 $31.39
Market value per share for the
quarter:
High $60.10 $58.62
Low 50.12 54.23
Close 51.99 57.97
Quarterly ratios:
Return on average common
shareholders' equity 15.50 % 15.33 %
Return on average assets 1.41 1.41
Efficiency ratio 55.41 63.39
Number of banking centers 378 374
Number of employees - full time
equivalent
Continuing operations 10,549 10,517
Discontinued operations 169 170
* March 31, 2007 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
March 31, December 31, March 31,
(in millions, except share data) 2007 2006 2006
ASSETS
Cash and due from subsidiary bank $- $122 $13
Short-term investments with subsidiary
bank 462 246 298
Other short-term investments 97 92 -
Investment in subsidiaries,
principally banks 5,599 5,586 5,591
Premises and equipment 3 4 3
Other assets 167 152 262
Total assets $6,328 $6,202 $6,167
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt $956 $806 $803
Other liabilities 252 243 270
Total liabilities 1,208 1,049 1,073
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
3/31/07, 12/31/06 and 3/31/06 894 894 894
Capital surplus 524 520 466
Accumulated other comprehensive loss (284) (324) (198)
Retained earnings 5,311 5,282 4,880
Less cost of common stock in treasury
- 22,834,368 shares at 3/31/07,
21,161,161 shares at 12/31/06 and
16,461,565 shares at 3/31/06 (1,325) (1,219) (948)
Total shareholders' equity 5,120 5,153 5,094
Total liabilities and
shareholders' equity $6,328 $6,202 $6,167
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
Accumu-
lated
Common Stock Cap- Other Total
ital Compre- Re- Trea- Share-
(in millions, except In Sur- hensive tained sury holders'
per share data) Shares Amount plus Loss Earnings Stock Equity
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) - - - - (87) (87)
Net issuance of common
stock under employee
stock plans 0.9 - (18) - (14) 52 20
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
BALANCE AT DECEMBER 31,
2006 157.6 $894 $520 $(324) $5,282 $(1,219) $5,153
FSP 13-2 transition
adjustment, net of tax - - - - (46) - (46)
FIN 48 transition
adjustment, net of tax - - - - 3 - 3
BALANCE AT JANUARY 1,
2007 157.6 894 520 (324) 5,239 (1,219) 5,110
Net income - - - - 190 - 190
Other comprehensive
income, net of tax - - - 40 - - 40
Total comprehensive
income 230
Cash dividends declared
on common stock ($0.64
per share) - - - - (101) - (101)
Purchase of common
stock (3.5) - - - - (208) (208)
Net issuance of common
stock under employee
stock plans 1.8 - (20) - (17) 103 66
Recognition of share-
based compensation
expense - - 23 - - - 23
Employee deferred
compensation
obligations - - 1 - - (1) -
BALANCE AT MARCH 31,
2007 155.9 $894 $524 $(284) $5,311 $(1,325) $5,120
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
Wealth &
(dollar amounts in millions) Business Retail Institutional
Three Months Ended March 31, 2007 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $329 $157 $36
Provision for loan losses 14 5 (1)
Noninterest income 61 52 71
Noninterest expenses 170 153 76
Provision (benefit) for income taxes
(FTE) 65 18 11
Income from discontinued operations,
net of tax - - -
Net income (loss) $141 $33 $21
Net credit-related charge-offs $15 $4 $-
Selected average balances:
Assets $40,059 $6,840 $3,898
Loans 39,015 6,095 3,747
Deposits 16,710 17,033 2,317
Liabilities 17,565 17,045 2,317
Attributed equity 2,850 835 312
Statistical data:
Return on average assets (1) 1.41 % 0.75 % 2.17 %
Return on average attributed equity 19.80 15.97 27.09
Net interest margin (2) 3.42 3.74 3.88
Efficiency ratio 43.56 73.11 70.74
Three Months Ended March 31, 2007 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(17) $(2) $503
Provision for loan losses - 5 23
Noninterest income 16 3 203
Noninterest expenses 2 6 407
Provision (benefit) for income taxes
(FTE) (4) (3) 87
Income from discontinued operations,
net of tax - 1 1
Net income (loss) $1 $(6) $190
Net credit-related charge-offs $- $- $19
Selected average balances:
Assets $5,015 $1,276 $57,088
Loans 17 22 48,896
Deposits 6,490 29 42,579
Liabilities 14,600 460 51,987
Attributed equity 574 530 5,101
Statistical data:
Return on average assets (1) N/M N/M 1.33 %
Return on average attributed equity N/M N/M 14.86
Net interest margin (2) N/M N/M 3.82
Efficiency ratio N/M N/M 57.66
Wealth &
Business Retail Institutional
Three Months Ended December 31, 2006 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $335 $159 $36
Provision for loan losses 15 6 2
Noninterest income 116 53 67
Noninterest expenses 194 164 86
Provision (benefit) for income taxes
(FTE) 88 15 4
Income from discontinued operations,
net of tax - - -
Net income (loss) $154 $27 $11
Net credit-related charge-offs $6 $16 $1
Selected average balances:
Assets $39,872 $6,810 $3,794
Loans 38,766 6,100 3,646
Deposits 17,110 16,969 2,351
Liabilities 17,993 16,978 2,348
Attributed equity 2,748 833 307
Statistical data:
Return on average assets (1) 1.54 % 0.61 % 1.17 %
Return on average attributed equity 22.32 13.00 14.43
Net interest margin (2) 3.43 3.71 3.90
Efficiency ratio 43.11 77.81 82.90
Three Months Ended December 31, 2006 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(23) $(4) $503
Provision for loan losses - (1) 22
Noninterest income 16 10 262
Noninterest expenses 7 6 457
Provision (benefit) for income taxes
(FTE) (10) 4 101
Income from discontinued operations,
net of tax - 114 114
Net income (loss) $(4) $111 $299
Net credit-related charge-offs $- $- $23
Selected average balances:
Assets $5,515 $1,621 $57,612
Loans 25 31 48,568
Deposits 6,817 (44) 43,203
Liabilities 14,623 390 52,332
Attributed equity 568 824 5,280
Statistical data:
Return on average assets (1) N/M N/M 2.07 %
Return on average attributed equity N/M N/M 22.63
Net interest margin (2) N/M N/M 3.75
Efficiency ratio N/M N/M 59.81
Wealth &
Business Retail Institutional
Three Months Ended March 31, 2006 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $315 $155 $37
Provision for loan losses (29) 6 -
Noninterest income 63 50 64
Noninterest expenses 193 143 75
Provision (benefit) for income taxes
(FTE) 63 18 9
Loss from discontinued operations,
net of tax - - -
Net income (loss) $151 $38 $17
Net credit-related charge-offs $16 $5 $-
Selected average balances:
Assets $38,100 $6,782 $3,623
Loans 36,883 6,076 3,473
Deposits 18,899 16,736 2,449
Liabilities 19,733 16,735 2,446
Attributed equity 2,557 822 303
Statistical data:
Return on average assets (1) 1.59 % 0.87 % 1.86 %
Return on average attributed equity 23.71 18.63 22.29
Net interest margin (2) 3.45 3.76 4.28
Efficiency ratio 51.08 69.45 74.62
Three Months Ended March 31, 2006 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(24) $(3) $480
Provision for loan losses - (4) (27)
Noninterest income 17 1 195
Noninterest expenses 2 16 429
Provision (benefit) for income taxes
(FTE) (7) (17) 66
Loss from discontinued operations,
net of tax - (13) (13)
Net income (loss) $(2) $(10) $194
Net credit-related charge-offs $- $1 $22
Selected average balances:
Assets $5,228 $1,544 $55,277
Loans 3 44 46,479
Deposits 3,214 (100) 41,198
Liabilities 10,956 335 50,205
Attributed equity 471 919 5,072
Statistical data:
Return on average assets (1) N/M N/M 1.41 %
Return on average attributed equity N/M N/M 15.33
Net interest margin (2) N/M N/M 3.80
Efficiency ratio N/M N/M 63.39
(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)
Three Months Ended March 31, 2007 Midwest Western Texas Florida
Earnings summary:
Net interest income (expense) (FTE) $244 $176 $67 $11
Provision for loan losses 30 (11) (1) 1
Noninterest income 116 28 19 4
Noninterest expenses 206 110 54 9
Provision (benefit) for income taxes
(FTE) 34 39 11 2
Income from discontinued operations,
net of tax - - - -
Net income (loss) $90 $66 $22 $3
Net credit-related charge-offs
(recoveries) $22 $(5) $3 $-
Selected average balances:
Assets $22,755 $16,782 $6,719 $1,646
Loans 21,783 16,241 6,444 1,626
Deposits 16,657 13,696 3,843 284
Liabilities 17,430 13,732 3,858 288
Attributed equity 1,955 1,177 556 87
Statistical data:
Return on average assets (1) 1.58 % 1.57 % 1.30 % 0.80 %
Return on average attributed equity 18.40 22.37 15.73 15.22
Net interest margin (2) 4.52 4.40 4.19 2.84
Efficiency ratio 57.17 54.23 62.24 59.07
(dollar amounts in millions) Finance
Other Inter- & Other
Three Months Ended March 31, 2007 Markets national Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $7 $17 $(19) $503
Provision for loan losses (1) - 5 23
Noninterest income 9 8 19 203
Noninterest expenses 9 11 8 407
Provision (benefit) for income taxes
(FTE) 3 5 (7) 87
Income from discontinued operations,
net of tax - - 1 1
Net income (loss) $5 $9 $(5) $190
Net credit-related charge-offs
(recoveries) $- $(1) $- $19
Selected average balances:
Assets $713 $2,182 $6,291 $57,088
Loans 704 2,059 39 48,896
Deposits 482 1,098 6,519 42,579
Liabilities 482 1,137 15,060 51,987
Attributed equity 57 165 1,104 5,101
Statistical data:
Return on average assets (1) 3.04 % 1.68 % N/M 1.33 %
Return on average attributed equity 38.24 22.27 N/M 14.86
Net interest margin (2) 4.22 3.22 N/M 3.82
Efficiency ratio 55.46 42.08 N/M 57.66
Three Months Ended
December 31, 2006 Midwest Western Texas Florida
Earnings summary:
Net interest income (expense) (FTE) $248 $178 $69 $11
Provision for loan losses 37 (15) 3 1
Noninterest income 123 74 20 4
Noninterest expenses 232 122 59 10
Provision (benefit) for income taxes
(FTE) 24 62 10 1
Income from discontinued operations,
net of tax - - - -
Net income (loss) $78 $83 $17 $3
Net credit-related charge-offs
(recoveries) $23 $(2) $2 $-
Selected average balances:
Assets $22,843 $16,572 $6,631 $1,631
Loans 21,836 16,037 6,360 1,611
Deposits 16,713 14,145 3,794 292
Liabilities 17,521 14,180 3,807 296
Attributed equity 1,901 1,140 559 87
Statistical data:
Return on average assets (1) 1.36 % 2.01 % 1.03 % 0.70 %
Return on average attributed equity 16.37 29.14 12.20 13.03
Net interest margin (2) 4.49 4.40 4.27 2.80
Efficiency ratio 62.64 48.59 66.36 66.69
Finance
Other Inter- & Other
Three Months Ended December 31, 2006 Markets national Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $8 $16 $(27) $503
Provision for loan losses (1) (2) (1) 22
Noninterest income 7 8 26 262
Noninterest expenses 9 12 13 457
Provision (benefit) for income taxes
(FTE) 3 7 (6) 101
Income from discontinued operations,
net of tax - - 114 114
Net income (loss) $4 $7 $107 $299
Net credit-related charge-offs
(recoveries) $- $- $- $23
Selected average balances:
Assets $705 $2,094 $7,136 $57,612
Loans 698 1,970 56 48,568
Deposits 439 1,047 6,773 43,203
Liabilities 437 1,078 15,013 52,332
Attributed equity 56 145 1,392 5,280
Statistical data:
Return on average assets (1) 2.05 % 1.37 % N/M 2.07 %
Return on average attributed equity 25.57 19.74 N/M 22.63
Net interest margin (2) 4.38 3.25 N/M 3.75
Efficiency ratio 58.27 50.47 N/M 59.81
Three Months Ended March 31, 2006 Midwest Western Texas Florida
Earnings summary:
Net interest income (expense) (FTE) $243 $168 $61 $10
Provision for loan losses - (14) (4) -
Noninterest income 117 28 18 4
Noninterest expenses 223 109 50 8
Provision (benefit) for income taxes
(FTE) 38 35 10 2
Loss from discontinued operations,
net of tax - - - -
Net income (loss) $99 $66 $23 $4
Net credit-related charge-offs
(recoveries) $17 $- $1 $2
Selected average balances:
Assets $22,332 $16,261 $5,611 $1,390
Loans 21,303 15,644 5,355 1,371
Deposits 17,039 15,405 3,662 307
Liabilities 17,811 15,440 3,666 306
Attributed equity 1,803 1,078 496 72
Statistical data:
Return on average assets (1) 1.79 % 1.60 % 1.63 % 1.05 %
Return on average attributed equity 22.14 24.56 18.40 20.18
Net interest margin (2) 4.51 4.25 4.46 2.91
Efficiency ratio 61.83 55.74 63.50 55.72
Finance
Other Inter- & Other
Three Months Ended March 31, 2006 Markets national Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $8 $17 $(27) $480
Provision for loan losses 1 (6) (4) (27)
Noninterest income 7 3 18 195
Noninterest expenses 8 13 18 429
Provision (benefit) for income taxes
(FTE) 2 3 (24) 66
Loss from discontinued operations,
net of tax - - (13) (13)
Net income (loss) $4 $10 $(12) $194
Net credit-related charge-offs
(recoveries) $- $1 $1 $22
Selected average balances:
Assets $590 $2,321 $6,772 $55,277
Loans 579 2,180 47 46,479
Deposits 601 1,070 3,114 41,198
Liabilities 600 1,091 11,291 50,205
Attributed equity 53 180 1,390 5,072
Statistical data:
Return on average assets (1) 2.44 % 1.77 % N/M 1.41 %
Return on average attributed equity 30.06 22.90 N/M 15.33
Net interest margin (2) 5.30 2.97 N/M 3.80
Efficiency ratio 54.90 64.03 N/M 63.39
(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
SOURCE: Comerica Incorporated
