/FIRST AND FINAL ADD -- CLW018 -- Comerica Incorporated Earnings/
PRNewswire
(:CMA)
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Three Months Ended
June 30, March 31, June 30,
(in millions, except per share data) 2007 2007 2006
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $1.25 $1.19 $1.19
Diluted net income 1.25 1.19 1.22
Cash dividends declared 0.64 0.64 0.59
Common shareholders' equity (at
period end) 32.80 32.84 31.99
Average diluted shares (in thousands) 156,632 158,915 163,439
KEY RATIOS
Return on average common
shareholders' equity from continuing
operations 15.41 % 14.83 % 15.15 %
Return on average common
shareholders' equity 15.41 14.86 15.50
Return on average assets from
continuing operations 1.35 1.33 1.38
Return on average assets 1.35 1.33 1.41
Average common shareholders' equity
as a percentage of average assets 8.77 8.93 9.09
Tier 1 common capital ratio * 7.19 7.49 7.69
Tier 1 risk-based capital ratio * 7.87 8.19 8.26
Total risk-based capital ratio * 11.71 12.15 11.55
Leverage ratio * 9.68 10.00 9.83
AVERAGE BALANCES
Commercial loans $28,324 $27,757 $27,587
Real estate construction loans 4,501 4,249 3,816
Commercial mortgage loans 9,634 9,673 9,229
Residential mortgage loans 1,791 1,705 1,537
Consumer loans 2,331 2,405 2,533
Lease financing 1,287 1,273 1,299
International loans 1,925 1,834 1,801
Total loans 49,793 48,896 47,802
Earning assets 54,304 53,148 52,371
Total assets 58,118 57,088 56,611
Interest-bearing deposits 30,049 30,417 28,446
Total interest-bearing liabilities 40,157 38,498 36,704
Noninterest-bearing deposits 11,633 12,162 13,575
Common shareholders' equity 5,097 5,101 5,146
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $510 $503 $501
Fully taxable equivalent adjustment 1 1 1
Net interest margin 3.76 % 3.82 % 3.82 %
CREDIT QUALITY
Nonaccrual loans $244 $218 $157
Foreclosed property 15 15 17
Total nonperforming assets 259 233 174
Loans past due 90 days or more and
still accruing 29 15 15
Gross loan charge-offs 43 34 25
Loan recoveries 13 18 7
Net loan charge-offs 30 16 18
Lending-related commitment charge-
offs - 3 1
Total net credit-related charge-offs 30 19 19
Allowance for loan losses 507 500 481
Allowance for credit losses on
lending-related commitments 19 21 41
Total allowance for credit losses 526 521 522
Allowance for loan losses as a
percentage of total loans 1.04 % 1.04 % 1.04 %
Net loan charge-offs as a percentage
of average total loans 0.24 0.13 0.15
Net credit-related charge-offs as a
percentage of average total loans 0.24 0.16 0.16
Nonperforming assets as a percentage
of total loans and foreclosed
property 0.53 0.49 0.37
Allowance for loan losses as a
percentage of total nonperforming
assets 195 214 278
* June 30, 2007 ratios are estimated
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Six Months Ended
June 30,
(in millions, except per share data) 2007 2006
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $2.44 $2.45
Diluted net income 2.45 2.40
Cash dividends declared 1.28 1.18
Common shareholders' equity (at
period end)
Average diluted shares (in thousands) 157,774 163,378
KEY RATIOS
Return on average common
shareholders' equity from continuing
operations 15.12 % 15.73 %
Return on average common
shareholders' equity 15.14 15.42
Return on average assets from
continuing operations 1.34 1.44
Return on average assets 1.34 1.41
Average common shareholders' equity
as a percentage of average assets 8.85 9.13
Tier 1 common capital ratio *
Tier 1 risk-based capital ratio *
Total risk-based capital ratio *
Leverage ratio *
AVERAGE BALANCES
Commercial loans $28,042 $27,106
Real estate construction loans 4,376 3,674
Commercial mortgage loans 9,654 9,114
Residential mortgage loans 1,748 1,515
Consumer loans 2,368 2,596
Lease financing 1,280 1,298
International loans 1,879 1,841
Total loans 49,347 47,144
Earning assets 53,729 51,678
Total assets 57,606 55,947
Interest-bearing deposits 30,232 28,020
Total interest-bearing liabilities 39,332 36,041
Noninterest-bearing deposits 11,897 13,591
Common shareholders' equity 5,099 5,109
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $1,013 $981
Fully taxable equivalent adjustment 2 2
Net interest margin 3.79 % 3.81 %
CREDIT QUALITY
Nonaccrual loans
Foreclosed property
Total nonperforming assets
Loans past due 90 days or more and
still accruing
Gross loan charge-offs 77 50
Loan recoveries 31 15
Net loan charge-offs 46 35
Lending-related commitment charge-
offs 3 6
Total net credit-related charge-offs 49 41
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 0.19 % 0.15 %
Net credit-related charge-offs as a
percentage of average total loans 0.20 0.17
Nonperforming assets as a percentage
of total loans and foreclosed
property
Allowance for loan losses as a
percentage of total nonperforming
assets
* June 30, 2007 ratios are estimated
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
June 30, March 31, Dec. 31, June 30,
(in millions, except share data) 2007 2007 2006 2006
ASSETS
Cash and due from banks $1,372 $1,334 $1,434 $1,664
Federal funds sold and securities
purchased under agreements to resell 1,217 1,457 2,632 2,105
Other short-term investments 251 220 327 276
Investment securities available-for-
sale 4,368 3,989 3,662 3,980
Commercial loans 27,146 26,681 26,265 25,928
Real estate construction loans 4,513 4,462 4,203 3,958
Commercial mortgage loans 9,728 9,592 9,659 9,363
Residential mortgage loans 1,839 1,741 1,677 1,568
Consumer loans 2,321 2,392 2,423 2,493
Lease financing 1,314 1,273 1,353 1,325
International loans 1,904 1,848 1,851 1,764
Total loans 48,765 47,989 47,431 46,399
Less allowance for loan losses (507) (500) (493) (481)
Net loans 48,258 47,489 46,938 45,918
Premises and equipment 616 596 568 522
Customers' liability on
acceptances outstanding 40 55 56 74
Accrued income and other assets 2,448 2,387 2,384 2,541
Total assets $58,570 $57,527 $58,001 $57,080
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $12,763 $13,584 $13,901 $15,199
Money market and NOW deposits 15,212 14,815 15,250 15,342
Savings deposits 1,397 1,410 1,365 1,470
Customer certificates of deposit 7,567 7,447 7,223 6,322
Institutional certificates of deposit 5,479 5,679 5,783 4,629
Foreign office time deposits 789 735 1,405 1,164
Total interest-bearing deposits 30,444 30,086 31,026 28,927
Total deposits 43,207 43,670 44,927 44,126
Short-term borrowings 297 329 635 442
Acceptances outstanding 40 55 56 74
Accrued expenses and other
liabilities 1,260 1,205 1,281 1,162
Medium- and long-term debt 8,748 7,148 5,949 6,087
Total liabilities 53,552 52,407 52,848 51,891
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
6/30/07, 3/31/07, 12/31/06 and
6/30/06 894 894 894 894
Capital surplus 539 524 520 494
Accumulated other comprehensive loss (308) (284) (324) (226)
Retained earnings 5,400 5,311 5,282 4,978
Less cost of common stock in
treasury - 25,725,671 shares at
6/30/07, 22,834,368 shares
at 3/31/07, 21,161,161 shares at
12/31/06 and 16,534,470 shares at
6/30/06 (1,507) (1,325) (1,219) (951)
Total shareholders' equity 5,018 5,120 5,153 5,189
Total liabilities and
shareholders' equity $58,570 $57,527 $58,001 $57,080
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Six Months
Ended Ended
June 30, June 30,
(in millions, except per share data) 2007 2006 2007 2006
INTEREST INCOME
Interest and fees on loans $882 $792 $1,733 $1,515
Interest on investment securities 46 45 88 89
Interest on short-term investments 5 8 13 13
Total interest income 933 845 1,834 1,617
INTEREST EXPENSE
Interest on deposits 284 236 570 435
Interest on short-term borrowings 24 45 46 87
Interest on medium- and long-term debt 116 64 207 116
Total interest expense 424 345 823 638
Net interest income 509 500 1,011 979
Provision for loan losses 36 27 59 -
Net interest income after
provision for loan losses 473 473 952 979
NONINTEREST INCOME
Service charges on deposit accounts 55 54 109 108
Fiduciary income 49 44 98 88
Commercial lending fees 17 15 33 30
Letter of credit fees 15 15 31 31
Foreign exchange income 10 9 19 19
Brokerage fees 10 10 21 20
Card fees 14 12 26 23
Bank-owned life insurance 9 10 19 23
Net income from principal investing
and warrants 6 4 2 7
Net securities gains (losses) - 1 - (1)
Net gain (loss) on sales of
businesses 2 - 3 (5)
Other noninterest income 38 29 67 55
Total noninterest income 225 203 428 398
NONINTEREST EXPENSES
Salaries 215 197 421 390
Employee benefits 50 44 96 94
Total salaries and employee benefits 265 241 517 484
Net occupancy expense 33 30 68 60
Equipment expense 15 15 30 28
Outside processing fee expense 24 22 44 43
Software expense 15 14 30 28
Customer services 11 9 25 22
Litigation and operational losses
(recoveries) (9) 3 (6) 4
Provision for credit losses on
lending-related commitments (2) 1 (4) 14
Other noninterest expenses 59 54 114 135
Total noninterest expenses 411 389 818 818
Income from continuing operations
before income taxes 287 287 562 559
Provision for income taxes 91 92 177 157
Income from continuing operations 196 195 385 402
Income (loss) from discontinued
operations, net of tax - 5 1 (8)
NET INCOME $196 $200 $386 $394
Basic earnings per common share:
Income from continuing operations $1.28 $1.21 $2.49 $2.49
Net income 1.28 1.24 2.49 2.44
Diluted earnings per common share:
Income from continuing operations 1.25 1.19 2.44 2.45
Net income 1.25 1.22 2.45 2.40
Cash dividends declared on common
stock 98 96 199 192
Dividends per common share 0.64 0.59 1.28 1.18
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Second First Fourth Third Second
Qtr Qtr Qtr Qtr Qtr
(in millions, except per share data) 2007 2007 2006 2006 2006
INTEREST INCOME
Interest and fees on loans $882 $851 $858 $843 $792
Interest on investment securities 46 42 42 43 45
Interest on short-term investments 5 8 12 7 8
Total interest income 933 901 912 893 845
INTEREST EXPENSE
Interest on deposits 284 286 298 272 236
Interest on short-term borrowings 24 22 15 28 45
Interest on medium- and long-term debt 116 91 97 91 64
Total interest expense 424 399 410 391 345
Net interest income 509 502 502 502 500
Provision for loan losses 36 23 22 15 27
Net interest income after
provision for loan losses 473 479 480 487 473
NONINTEREST INCOME
Service charges on deposit accounts 55 54 54 56 54
Fiduciary income 49 49 47 45 44
Commercial lending fees 17 16 19 16 15
Letter of credit fees 15 16 16 17 15
Foreign exchange income 10 9 10 9 9
Brokerage fees 10 11 10 10 10
Card fees 14 12 12 11 12
Bank-owned life insurance 9 10 9 8 10
Net income (loss) from principal
investing and warrants 6 (4) 3 - 4
Net securities gains - - 1 - 1
Net gain (loss) on sales of businesses 2 1 - (7) -
Income from lawsuit settlement - - 47 - -
Other noninterest income 38 29 34 30 29
Total noninterest income 225 203 262 195 203
NONINTEREST EXPENSES
Salaries 215 206 231 202 197
Employee benefits 50 46 42 48 44
Total salaries and employee benefits 265 252 273 250 241
Net occupancy expense 33 35 34 31 30
Equipment expense 15 15 14 13 15
Outside processing fee expense 24 20 21 21 22
Software expense 15 15 15 13 14
Customer services 11 14 14 11 9
Litigation and operational losses
(recoveries) (9) 3 4 3 3
Provision for credit losses on lending-
related commitments (2) (2) (4) (5) 1
Other noninterest expenses 59 55 86 62 54
Total noninterest expenses 411 407 457 399 389
Income from continuing operations
before income taxes 287 275 285 283 287
Provision for income taxes 91 86 100 88 92
Income from continuing operations 196 189 185 195 195
Income from discontinued operations,
net of tax - 1 114 5 5
NET INCOME $196 $190 $299 $200 $200
Basic earnings per common share:
Income from continuing operations $1.28 $1.21 $1.17 $1.22 $1.21
Net income 1.28 1.21 1.89 1.25 1.24
Diluted earnings per common share:
Income from continuing operations 1.25 1.19 1.16 1.20 1.19
Net income 1.25 1.19 1.87 1.23 1.22
Cash dividends declared on common stock 98 101 94 94 96
Dividends per common share 0.64 0.64 0.59 0.59 0.59
N/M - Not meaningful
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Second Quarter 2007 Compared To:
First Quarter Second Quarter
2007 2006
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME
Interest and fees on loans $31 3.5 % $90 11.2 %
Interest on investment securities 4 11.3 1 2.6
Interest on short-term investments (3) (26.0) (3) (26.3)
Total interest income 32 3.6 88 10.4
INTEREST EXPENSE
Interest on deposits (2) (0.6) 48 20.5
Interest on short-term borrowings 2 10.5 (21) (47.2)
Interest on medium- and long-term debt 25 27.8 52 82.1
Total interest expense 25 6.5 79 23.0
Net interest income 7 1.4 9 1.8
Provision for loan losses 13 56.5 9 33.3
Net interest income after
provision for loan losses (6) (1.3) - -
NONINTEREST INCOME
Service charges on deposit accounts 1 3.9 1 1.6
Fiduciary income - (0.6) 5 10.7
Commercial lending fees 1 3.7 2 14.1
Letter of credit fees (1) (3.3) - (2.0)
Foreign exchange income 1 7.5 1 4.9
Brokerage fees (1) (6.3) - 5.3
Card fees 2 11.2 2 13.3
Bank-owned life insurance (1) (1.7) (1) (2.1)
Net income (loss) from principal
investing and warrants 10 N/M 2 N/M
Net securities gains - N/M (1) N/M
Net gain (loss) on sales of businesses 1 N/M 2 N/M
Income from lawsuit settlement - N/M - N/M
Other noninterest income 9 27.1 9 28.1
Total noninterest income 22 10.9 22 10.5
NONINTEREST EXPENSES
Salaries 9 4.6 18 9.3
Employee benefits 4 7.0 6 11.9
Total salaries and employee benefits 13 5.0 24 9.8
Net occupancy expense (2) (6.0) 3 10.5
Equipment expense - 4.7 - 2.6
Outside processing fee expense 4 17.5 2 7.3
Software expense - (7.3) 1 4.8
Customer services (3) (20.4) 2 23.9
Litigation and operational losses
(recoveries) (12) N/M (12) N/M
Provision for credit losses on
lending-related commitments - (15.4) (3) N/M
Other noninterest expenses 4 11.0 5 9.6
Total noninterest expenses 4 1.0 22 5.5
Income from continuing operations
before income taxes 12 4.3 - (0.1)
Provision for income taxes 5 5.3 (1) (1.9)
Income from continuing operations 7 3.8 1 0.7
Income from discontinued operations,
net of tax (1) N/M (5) N/M
NET INCOME $6 3.6 % $(4) (1.5)%
Basic earnings per common share:
Income from continuing operations $0.07 5.8 % $0.07 5.8 %
Net income 0.07 5.8 0.04 3.2
Diluted earnings per common share:
Income from continuing operations 0.06 5.0 0.06 5.0
Net income 0.06 5.0 0.03 2.5
Cash dividends declared on common stock (3) (1.7) 2 3.0
Dividends per common share - - 0.05 8.5
N/M - Not meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
Balance at beginning of period $500 $493 $493 $481 $472
Loan charge-offs:
Commercial 19 13 7 9 16
Real estate construction:
Commercial Real Estate
business line 6 1 - - -
Other 2 - - - -
Total real estate
construction 8 1 - - -
Commercial mortgage:
Commercial Real Estate
business line 3 3 3 1 -
Other 10 14 4 4 3
Total commercial
mortgage 13 17 7 5 3
Residential mortgage - - - - -
Consumer 3 3 13 3 4
Lease financing - - 3 - 1
International - - 1 - 1
Total loan charge-offs 43 34 31 17 25
Recoveries on loans previously
charged-off:
Commercial 5 10 5 13 5
Real estate construction - - - - -
Commercial mortgage 2 - 1 1 -
Residential mortgage - - - - -
Consumer 1 1 1 - 1
Lease financing - 4 - - -
International 5 3 2 - 1
Total recoveries 13 18 9 14 7
Net loan charge-offs 30 16 22 3 18
Provision for loan losses 36 23 22 15 27
Foreign currency translation
adjustment 1 - - - -
Balance at end of period $507 $500 $493 $493 $481
Allowance for loan losses as a
percentage of total loans 1.04 % 1.04 % 1.04 % 1.06 % 1.04 %
Net loan charge-offs as a
percentage of average total loans 0.24 0.13 0.18 0.02 0.15
Net credit-related charge-offs as
a percentage of average total
loans 0.24 0.16 0.19 0.06 0.16
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 2nd 1st 4th 3rd 2nd
Qtr Qtr Qtr Qtr Qtr
Balance at beginning of period $21 $26 $31 $41 $41
Less: Charge-offs on lending-related
commitments (1) - 3 1 5 1
Add: Provision for credit losses on
lending-related commitments (2) (2) (4) (5) 1
Balance at end of period $19 $21 $26 $31 $41
Unfunded lending-related commitments
sold $- $60 $20 $28 $14
(1) Charge-offs result from the sale of unfunded lending-related
commitments.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
SUMMARY OF NONPERFORMING
ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Commercial $88 $73 $ 97 $83 $74
Real estate construction:
Commercial Real
Estate business line 37 21 18 4 5
Other 7 4 2 - -
Total real estate
construction 44 25 20 4 5
Commercial mortgage:
Commercial Real
Estate business line 20 17 18 10 11
Other 84 84 54 46 35
Total commercial
mortgage 104 101 72 56 46
Residential mortgage 1 1 1 1 1
Consumer 3 4 4 5 3
Lease financing - 4 8 12 12
International 4 10 12 13 16
Total nonaccrual
loans 244 218 214 174 157
Reduced-rate loans - - - - -
Total nonperforming
loans 244 218 214 174 157
Foreclosed property 15 15 18 23 17
Total nonperforming
assets $259 $233 $232 $197 $174
Nonperforming loans as a
percentage of total loans 0.50 % 0.45 % 0.45 % 0.37 % 0.34 %
Nonperforming assets as a
percentage of total loans
and foreclosed property 0.53 0.49 0.49 0.42 0.37
Allowance for loan losses
as a percentage of total
nonperforming assets 195 214 213 251 278
Loans past due 90 days or
more and still accruing $29 $15 $14 $18 $15
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at
beginning of period $218 $214 $174 $157 $122
Loans transferred to
nonaccrual (1) 107 69 66 39 51
Nonaccrual business loan
gross charge-offs (2) (40) (31) (16) (14) (21)
Loans transferred to
accrual status (1) (8) - - - -
Nonaccrual business
loans sold (3) - (4) - - -
Payments/Other (4) (33) (30) (10) (8) 5
Nonaccrual loans at end of
period $244 $218 $214 $174 $157
(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 $40 $31 $16 $14 $21
Performing watch list
loans - - 2 - -
Consumer and
residential mortgage
loans 3 3 13 3 4
Total gross loan
charge-offs $43 $34 $31 $17 $25
(3) Analysis of loans sold:
Nonaccrual business
loans $- $4 $- $- $-
Performing watch list
loans - - 25 7 15
Total loans sold $- $4 $25 $7 $15
(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
Six Months Ended
June 30, 2007
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $28,042 $1,016 7.31 %
Real estate construction loans 4,376 186 8.55
Commercial mortgage loans 9,654 353 7.37
Residential mortgage loans 1,748 54 6.13
Consumer loans 2,368 84 7.15
Lease financing 1,280 21 3.26
International loans 1,879 66 7.12
Business loan swap expense - (45) -
Total loans (2) 49,347 1,735 7.08
Investment securities available-for-
sale 3,916 88 4.40
Federal funds sold and securities
purchased under agreements to resell 235 6 5.38
Other short-term investments 231 7 6.00
Total earning assets 53,729 1,836 6.87
Cash and due from banks 1,410
Allowance for loan losses (509)
Accrued income and other assets 2,976
Total assets $57,606
Money market and NOW deposits (1) $14,788 225 3.06
Savings deposits 1,400 6 0.88
Customer certificates of deposit 7,404 163 4.45
Institutional certificates of deposit 5,652 152 5.43
Foreign office time deposits 988 24 4.90
Total interest-bearing deposits 30,232 570 3.80
Short-term borrowings 1,736 46 5.31
Medium- and long-term debt 7,364 207 5.68
Total interest-bearing sources 39,332 823 4.22
Noninterest-bearing deposits (1) 11,897
Accrued expenses and other liabilities 1,278
Shareholders' equity 5,099
Total liabilities and
shareholders' equity $57,606
Net interest income/rate spread (FTE) $1,013 2.65
FTE adjustment $2
Impact of net noninterest-bearing
sources of funds 1.14
Net interest margin (as a percentage
of average earning assets) (FTE) (2) 3.79 %
(1) FSD balances included above:
Loans (primarily low-rate) $1,575 $5 0.60 %
Interest-bearing deposits 1,238 24 3.90
Noninterest-bearing deposits 3,363
(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
Six Months Ended
June 30, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $27,106 $877 6.53 %
Real estate construction loans 3,674 154 8.44
Commercial mortgage loans 9,114 321 7.11
Residential mortgage loans 1,515 45 5.95
Consumer loans 2,596 90 6.94
Lease financing 1,298 27 4.06
International loans 1,841 61 6.72
Business loan swap expense - (58) -
Total loans (2) 47,144 1,517 6.48
Investment securities available-for-
sale 4,121 89 4.19
Federal funds sold and securities
purchased under agreements to resell 263 6 4.88
Other short-term investments 150 7 8.66
Total earning assets 51,678 1,619 6.29
Cash and due from banks 1,604
Allowance for loan losses (498)
Accrued income and other assets 3,163
Total assets $55,947
Money market and NOW deposits (1) $15,959 211 2.67
Savings deposits 1,478 5 0.70
Customer certificates of deposit 6,053 111 3.68
Institutional certificates of deposit 3,480 84 4.89
Foreign office time deposits 1,050 24 4.58
Total interest-bearing deposits 28,020 435 3.13
Short-term borrowings 3,736 87 4.71
Medium- and long-term debt 4,285 116 5.45
Total interest-bearing sources 36,041 638 3.57
Noninterest-bearing deposits (1) 13,591
Accrued expenses and other liabilities 1,206
Shareholders' equity 5,109
Total liabilities and
shareholders' equity $55,947
Net interest income/rate spread (FTE) $981 2.72
FTE adjustment $2
Impact of net noninterest-bearing
sources of funds 1.09
Net interest margin (as a percentage
of average earning assets) (FTE) (2) 3.81 %
(1) FSD balances included above:
Loans (primarily low-rate) $2,732 $7 0.51 %
Interest-bearing deposits 2,024 38 3.80
Noninterest-bearing
deposits 4,738
(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) (0.20)
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
June 30, 2007
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $28,324 $517 7.31 %
Real estate construction loans 4,501 95 8.45
Commercial mortgage loans 9,634 178 7.39
Residential mortgage loans 1,791 28 6.15
Consumer loans 2,331 41 7.15
Lease financing 1,287 11 3.33
International loans 1,925 34 7.17
Business loan swap expense - (21) -
Total loans (2) 49,793 883 7.11
Investment securities available-for-
sale 4,085 46 4.46
Federal funds sold and securities
purchased under agreements to resell 195 2 5.37
Other short-term investments 231 3 5.21
Total earning assets 54,304 934 6.89
Cash and due from banks 1,341
Allowance for loan losses (516)
Accrued income and other assets 2,989
Total assets $58,118
Money market and NOW deposits (1) $14,825 114 3.08
Savings deposits 1,419 3 0.91
Customer certificates of deposit 7,463 83 4.46
Institutional certificates of deposit 5,484 74 5.43
Foreign office time deposits 858 10 4.81
Total interest-bearing deposits 30,049 284 3.80
Short-term borrowings 1,816 24 5.30
Medium- and long-term debt 8,292 116 5.63
Total interest-bearing sources 40,157 424 4.24
Noninterest-bearing deposits (1) 11,633
Accrued expenses and other liabilities 1,231
Shareholders' equity 5,097
Total liabilities and
shareholders' equity $58,118
Net interest income/rate spread (FTE) $510 2.65
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.11
Net interest margin (as a percentage
of average earning assets) (FTE) (2) 3.76 %
(1) FSD balances included above:
Loans (primarily low-rate) $1,580 $2 0.52 %
Interest-bearing deposits 1,228 12 3.88
Noninterest-bearing deposits 3,277
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.40) %
Total loans (0.21)
Net interest margin (FTE)
(assuming loans were
funded by noninterest-
bearing deposits) (0.10)
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
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
June 30, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $27,587 $465 6.78 %
Real estate construction loans 3,816 82 8.63
Commercial mortgage loans 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) 47,802 793 6.66
Investment securities available-for-
sale 4,088 45 4.27
Federal funds sold and securities
purchased under agreements to resell 336 5 5.05
Other short-term investments 145 3 9.24
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 1,480 3 0.75
Customer certificates of deposit 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
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) 3.82 %
(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)
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
June 30, March 31, December 31,
(in millions, except per share data) 2007 2007 2006
Commercial loans:
Floor plan $3,012 $2,970 $3,198
Other 24,134 23,711 23,067
Total commercial loans 27,146 26,681 26,265
Real estate construction loans:
Commercial Real Estate business
line 3,777 3,708 3,449
Other 736 754 754
Total real estate construction
loans 4,513 4,462 4,203
Commercial mortgage loans:
Commercial Real Estate business
line 1,344 1,286 1,534
Other 8,384 8,306 8,125
Total commercial mortgage loans 9,728 9,592 9,659
Residential mortgage loans 1,839 1,741 1,677
Consumer loans:
Home equity 1,585 1,570 1,591
Other consumer 736 822 832
Total consumer loans 2,321 2,392 2,423
Lease financing 1,314 1,273 1,353
International loans 1,904 1,848 1,851
Total loans $48,765 $47,989 $47,431
Goodwill $150 $150 $150
Loan servicing rights 13 14 14
Tier 1 common capital ratio* 7.19 % 7.49 % 7.54 %
Tier 1 risk-based capital ratio* 7.87 8.19 8.02
Total risk-based capital ratio * 11.71 12.15 11.63
Leverage ratio* 9.68 10.00 9.76
Book value per share $32.80 $32.84 $32.70
Market value per share for the
quarter:
High $63.89 $63.39 $59.72
Low 58.18 56.77 55.82
Close 59.47 59.12 58.68
Quarterly ratios:
Return on average common
shareholders' equity from
continuing operations 15.41 % 14.83 % 14.03 %
Return on average common
shareholders' equity 15.41 14.86 22.63
Return on average assets from
continuing operations 1.35 1.33 1.29
Return on average assets 1.35 1.33 2.07
Efficiency ratio 55.97 57.66 59.81
Number of banking centers 402 402 393
Number of employees - full time
equivalent
Continuing operations 10,687 10,661 10,700
Discontinued operations - - -
* June 30, 2007 ratios are estimated
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
September 30, June 30,
(in millions, except per share data) 2006 2006
Commercial loans:
Floor plan $2,628 $3,166
Other 23,127 22,762
Total commercial loans 25,755 25,928
Real estate construction loans:
Commercial Real Estate business line 3,352 3,222
Other 770 736
Total real estate construction loans 4,122 3,958
Commercial mortgage loans:
Commercial Real Estate business line 1,529 1,537
Other 7,956 7,826
Total commercial mortgage loans 9,485 9,363
Residential mortgage loans 1,622 1,568
Consumer loans:
Home equity 1,668 1,740
Other consumer 830 753
Total consumer loans 2,498 2,493
Lease financing 1,321 1,325
International loans 1,712 1,764
Total loans $46,515 $46,399
Goodwill $213 $213
Loan servicing rights 15 16
Tier 1 common capital ratio* 7.48 % 7.69 %
Tier 1 risk-based capital ratio* 8.04 8.26
Total risk-based capital ratio * 11.25 11.55
Leverage ratio* 9.68 9.83
Book value per share $32.79 $31.99
Market value per share for the quarter:
High $58.95 $60.10
Low 51.45 50.12
Close 56.92 51.99
Quarterly ratios:
Return on average common
shareholders' equity from
continuing operations 15.00 % 15.15 %
Return on average common
shareholders' equity 15.38 15.50
Return on average assets from
continuing operations 1.37 1.38
Return on average assets 1.41 1.41
Efficiency ratio 57.15 55.41
Number of banking centers 382 378
Number of employees - full time
equivalent
Continuing operations 10,568 10,549
Discontinued operations 167 169
* June 30, 2007 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
June 30, Dec. 31, June 30,
(in millions, except share data) 2007 2006 2006
ASSETS
Cash and due from subsidiary bank $9 $122 $-
Short-term investments with subsidiary bank 353 246 372
Other short-term investments 103 92 87
Investment in subsidiaries,
principally banks 5,617 5,586 5,607
Premises and equipment 3 4 3
Other assets 147 152 151
Total assets $6,232 $6,202 $6,220
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt $946 $806 $795
Other liabilities 268 243 236
Total liabilities 1,214 1,049 1,031
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
6/30/07, 12/31/06 and 6/30/06 894 894 894
Capital surplus 539 520 494
Accumulated other comprehensive loss (308) (324) (226)
Retained earnings 5,400 5,282 4,978
Less cost of common stock in treasury
- 25,725,671 shares at 6/30/07,
21,161,161 shares at 12/31/06 and
16,534,470 shares at 6/30/06 (1,507) (1,219) (951)
Total shareholders' equity 5,018 5,153 5,189
Total liabilities and
shareholders' equity $6,232 $6,202 $6,220
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 - - - - 394 - 394
Other comprehensive
loss, net of tax - - - (56) - - (56)
Total comprehensive
income 338
Cash dividends declared
on common stock ($1.18
per share) - - - - (192) - (192)
Purchase of common
stock (1.5) - - - - (88) (88)
Net issuance of common
stock under employee
stock plans 1.1 - (17) - (20) 67 30
Recognition of share-
based compensation
expense - - 33 - - - 33
Employee deferred
compensation
obligations (0.3) - 17 - - (17) -
BALANCE AT JUNE 30,
2006 162.2 $894 $494 $(226) $4,978 $(951) $5,189
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 - - - - 386 - 386
Other comprehensive
income, net of tax - - - 16 - - 16
Total comprehensive
income - - - - - - 402
Cash dividends declared
on common stock ($1.28
per share) - - - - (199) - (199)
Purchase of common
stock (6.9) - - - - (425) (425)
Net issuance of common
stock under employee
stock plans 2.3 - (17) - (26) 138 95
Recognition of share-
based compensation
expense - - 35 - - - 35
Employee deferred
compensation
obligations - - 1 - - (1) -
BALANCE AT JUNE 30,
2007 153.0 $894 $539 $(308) $5,400 $(1,507) $5,018
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
Wealth &
(dollar amounts in millions) Business Retail Institutional
Three Months Ended June 30, 2007 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $338 $160 $36
Provision for loan losses 32 4 2
Noninterest income 68 57 70
Noninterest expenses 176 160 79
Provision (benefit) for income taxes
(FTE) 62 18 9
Income from discontinued operations,
net of tax - - -
Net income (loss) $136 $35 $16
Net credit-related charge-offs $24 $6 $-
Selected average balances:
Assets $40,848 $6,828 $4,009
Loans 39,824 6,100 3,860
Deposits 16,432 17,191 2,295
Liabilities 17,263 17,204 2,303
Attributed equity 2,914 846 325
Statistical data:
Return on average assets (1) 1.33 % 0.78 % 1.59 %
Return on average attributed equity 18.69 16.56 19.55
Net interest margin (2) 3.39 3.73 3.72
Efficiency ratio 43.49 73.61 74.74
Three Months Ended June 30, 2007 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(18) $(6) $510
Provision for loan losses - (2) 36
Noninterest income 16 14 225
Noninterest expenses 3 (7) 411
Provision (benefit) for income taxes
(FTE) (5) 8 92
Income from discontinued operations,
net of tax - - -
Net income (loss) $- $9 $196
Net credit-related charge-offs $- $- $30
Selected average balances:
Assets $5,296 $1,137 $58,118
Loans 2 7 49,793
Deposits 5,840 (76) 41,682
Liabilities 16,033 218 53,021
Attributed equity 595 417 5,097
Statistical data:
Return on average assets (1) N/M N/M 1.35 %
Return on average attributed equity N/M N/M 15.41
Net interest margin (2) N/M N/M 3.76
Efficiency ratio N/M N/M 55.97
Wealth &
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 June 30, 2006 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $333 $162 $37
Provision for loan losses 21 8 (1)
Noninterest income 71 54 64
Noninterest expenses 182 150 76
Provision (benefit) for income taxes
(FTE) 64 19 9
Income from discontinued operations,
net of tax - - -
Net income (loss) $137 $39 $17
Net credit-related charge-offs $12 $8 $-
Selected average balances:
Assets $39,367 $6,786 $3,608
Loans 38,175 6,094 3,470
Deposits 17,931 16,770 2,463
Liabilities 18,898 16,769 2,460
Attributed equity 2,608 840 294
Statistical data:
Return on average assets (1) 1.39 % 0.88 % 1.92 %
Return on average attributed equity 20.94 18.47 23.52
Net interest margin (2) 3.53 3.92 4.35
Efficiency ratio 45.38 69.33 74.71
Three Months Ended June 30, 2006 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(27) $(4) $501
Provision for loan losses - (1) 27
Noninterest income 14 - 203
Noninterest expenses 2 (21) 389
Provision (benefit) for income taxes
(FTE) (8) 9 93
Income from discontinued operations,
net of tax - 5 5
Net income (loss) $(7) $14 $200
Net credit-related charge-offs $- $(1) $19
Selected average balances:
Assets $5,272 $1,578 $56,611
Loans 26 37 47,802
Deposits 4,987 (130) 42,021
Liabilities 13,103 235 51,465
Attributed equity 463 941 5,146
Statistical data:
Return on average assets (1) N/M N/M 1.41 %
Return on average attributed equity N/M N/M 15.50
Net interest margin (2) N/M N/M 3.82
Efficiency ratio N/M N/M 55.41
(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 June 30, 2007 Midwest Western Texas Florida
Earnings summary:
Net interest income (expense) (FTE) $248 $179 $69 $11
Provision for loan losses 34 5 3 2
Noninterest income 122 32 20 3
Noninterest expenses 217 113 56 9
Provision (benefit) for income taxes
(FTE) 32 35 10 1
Income from discontinued operations,
net of tax - - - -
Net income (loss) $87 $58 $20 $2
Net credit-related charge-offs
(recoveries) $29 $4 $1 $1
Selected average balances:
Assets $22,874 $17,257 $6,844 $1,666
Loans 21,946 16,715 6,570 1,649
Deposits 16,477 13,595 3,836 290
Liabilities 17,252 13,633 3,852 294
Attributed equity 1,981 1,206 594 90
Statistical data:
Return on average assets (1) 1.52 % 1.36 % 1.14 % 0.53 %
Return on average attributed equity 17.55 19.51 13.13 9.76
Net interest margin (2) 4.52 4.29 4.22 2.68
Efficiency ratio 58.60 53.59 63.11 63.23
Finance
Other Inter- & Other
Three Months Ended June 30, 2007 Markets national Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $8 $19 $(24) $510
Provision for loan losses - (6) (2) 36
Noninterest income 9 9 30 225
Noninterest expenses 9 11 (4) 411
Provision (benefit) for income taxes
(FTE) 3 8 3 92
Income from discontinued operations,
net of tax - - - -
Net income (loss) $5 $15 $9 $196
Net credit-related charge-offs
(recoveries) $- $(5) $- $30
Selected average balances:
Assets $769 $2,274 $6,434 $58,118
Loans 759 2,145 9 49,793
Deposits 473 1,247 5,764 41,682
Liabilities 472 1,266 16,252 53,021
Attributed equity 59 155 1,012 5,097
Statistical data:
Return on average assets (1) 2.53 % 2.60 % N/M 1.35 %
Return on average attributed equity 33.10 38.21 N/M 15.41
Net interest margin (2) 3.98 3.33 N/M 3.76
Efficiency ratio 54.26 40.28 N/M 55.97
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 % 0.78 %
Return on average attributed equity 18.40 22.37 15.73 14.78
Net interest margin (2) 4.52 4.40 4.19 2.84
Efficiency ratio 57.17 54.23 62.24 60.05
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) 3.09 % 1.68 % N/M 1.33 %
Return on average attributed equity 38.92 22.27 N/M 14.86
Net interest margin (2) 4.22 3.22 N/M 3.82
Efficiency ratio 54.54 42.08 N/M 57.66
Three Months Ended June 30, 2006 Midwest Western Texas Florida
Earnings summary:
Net interest income (expense) (FTE) $251 $179 $64 $11
Provision for loan losses 22 2 (1) 5
Noninterest income 120 34 18 3
Noninterest expenses 215 110 53 8
Provision (benefit) for income taxes
(FTE) 38 38 10 -
Income from discontinued operations,
net of tax - - - -
Net income (loss) $96 $63 $20 $1
Net credit-related charge-offs
(recoveries) $16 $3 $2 $-
Selected average balances:
Assets $22,724 $16,515 $6,055 $1,537
Loans 21,700 15,955 5,796 1,517
Deposits 16,674 14,861 3,668 313
Liabilities 17,469 14,992 3,676 312
Attributed equity 1,831 1,090 523 77
Statistical data:
Return on average assets (1) 1.68 % 1.54 % 1.33 % 0.20 %
Return on average attributed equity 20.90 23.26 15.42 3.99
Net interest margin (2) 4.69 4.55 4.51 2.83
Efficiency ratio 58.26 51.62 64.23 58.78
Finance
Other Inter- & Other
Three Months Ended June 30, 2006 Markets national Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $9 $18 $(31) $501
Provision for loan losses 1 (1) (1) 27
Noninterest income 7 7 14 203
Noninterest expenses 9 13 (19) 389
Provision (benefit) for income taxes
(FTE) 2 4 1 93
Income from discontinued operations,
net of tax - - 5 5
Net income (loss) $4 $9 $7 $200
Net credit-related charge-offs
(recoveries) $(1) $- $(1) $19
Selected average balances:
Assets $695 $2,235 $6,850 $56,611
Loans 686 2,084 64 47,802
Deposits 581 1,067 4,857 42,021
Liabilities 580 1,099 13,337 51,465
Attributed equity 59 162 1,404 5,146
Statistical data:
Return on average assets (1) 2.33 % 1.52 % N/M 1.41 %
Return on average attributed equity 27.79 21.06 N/M 15.50
Net interest margin (2) 5.05 3.25 N/M 3.82
Efficiency ratio 54.39 52.54 N/M 55.41
(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
