/FIRST ADD -- CLTH031 -- Comerica Incorporated Earnings/
PRNewswire
(:CMA)
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
(in millions, except per share data) 2007 2007 2006
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $0.77 $1.17 $1.16
Diluted net income 0.79 1.18 1.87
Cash dividends declared 0.64 0.64 0.59
Common shareholders' equity (at
period end) 34.18 33.62 32.70
Average diluted shares (in thousands) 150,943 153,096 160,063
KEY RATIOS
Return on average common
shareholders' equity from continuing
operations 9.18% 14.24% 14.03%
Return on average common
shareholders' equity 9.34 14.38 22.63
Return on average assets from
continuing operations 0.77 1.22 1.29
Return on average assets 0.79 1.23 2.07
Average common shareholders' equity
as a percentage of average assets 8.42 8.58 9.16
Tier 1 common capital ratio * 6.80 7.01 7.54
Tier 1 risk-based capital ratio * 7.46 7.68 8.03
Total risk-based capital ratio * 11.11 11.44 11.64
Leverage ratio * 9.30 9.60 9.77
AVERAGE BALANCES
Commercial loans $28,393 $28,052 $27,609
Real estate construction loans 4,846 4,607 4,204
Commercial mortgage loans 9,941 9,829 9,515
Residential mortgage loans 1,891 1,865 1,647
Consumer loans 2,412 2,320 2,468
Lease financing 1,327 1,319 1,335
International loans 1,889 1,882 1,790
Total loans 50,699 49,874 48,568
Earning assets 56,621 54,641 53,289
Total assets 60,507 58,546 57,612
Interest-bearing deposits 31,834 30,276 30,554
Total interest-bearing liabilities 43,574 41,406 38,334
Noninterest-bearing deposits 10,533 10,840 12,649
Common shareholders' equity 5,096 5,024 5,280
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $489 $504 $503
Fully taxable equivalent adjustment - 1 1
Net interest margin 3.43% 3.66% 3.75%
CREDIT QUALITY
Nonaccrual loans $391 $272 $214
Reduced-rate loans 13 - -
Total nonperforming loans 404 272 214
Foreclosed property 19 19 18
Total nonperforming assets 423 291 232
Loans past due 90 days or more and
still accruing 53 56 14
Gross loan charge-offs 72 47 31
Loan recoveries 9 7 9
Net loan charge-offs 63 40 22
Lending-related commitment charge-
offs 1 - 1
Total net credit-related charge-offs 64 40 23
Allowance for loan losses 557 512 493
Allowance for credit losses on
lending-related commitments 21 19 26
Total allowance for credit losses 578 531 519
Allowance for loan losses as a
percentage of total loans 1.10% 1.03% 1.04%
Net loan charge-offs as a percentage
of average total loans 0.50 0.32 0.18
Net credit-related charge-offs as a
percentage of average total loans 0.50 0.32 0.19
Nonperforming assets as a percentage
of total loans and foreclosed
property 0.83 0.59 0.49
Allowance for loan losses as a
percentage of total nonperforming
loans 138 188 231
Years Ended
December 31,
(in millions, except per share data) 2007 2006
PER SHARE AND COMMON STOCK DATA
Diluted income from continuing
operations $4.40 $4.81
Diluted net income 4.43 5.49
Cash dividends declared 2.56 2.36
Common shareholders' equity (at
period end)
Average diluted shares (in thousands) 154,809 162,488
KEY RATIOS
Return on average common shareholders'
equity from continuing operations 13.41 % 15.11 %
Return on average common
shareholders' equity 13.50 17.24
Return on average assets from
continuing operations 1.16 1.38
Return on average assets 1.17 1.58
Average common shareholders' equity
as a percentage of average assets 8.67 9.15
Tier 1 common capital ratio *
Tier 1 risk-based capital ratio *
Total risk-based capital ratio *
Leverage ratio *
AVERAGE BALANCES
Commercial loans $28,132 $27,341
Real estate construction loans 4,552 3,905
Commercial mortgage loans 9,771 9,278
Residential mortgage loans 1,814 1,570
Consumer loans 2,367 2,533
Lease financing 1,302 1,314
International loans 1,883 1,809
Total loans 49,821 47,750
Earning assets 54,688 52,291
Total assets 58,574 56,579
Interest-bearing deposits 30,647 28,939
Total interest-bearing liabilities 40,924 37,000
Noninterest-bearing deposits 11,287 13,135
Common shareholders' equity 5,079 5,176
NET INTEREST INCOME
Net interest income (fully taxable
equivalent basis) $2,006 $1,986
Fully taxable equivalent adjustment 3 3
Net interest margin 3.66% 3.79%
CREDIT QUALITY
Nonaccrual loans
Reduced-rate loans
Total nonperforming loans
Foreclosed property
Total nonperforming assets
Loans past due 90 days or more and
still accruing
Gross loan charge-offs 196 98
Loan recoveries 47 38
Net loan charge-offs 149 60
Lending-related commitment charge-offs 4 12
Total net credit-related charge-offs 153 72
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 0.30% 0.13%
Net credit-related charge-offs as a
percentage of average total loans 0.31 0.15
Nonperforming assets as a percentage
of total loans and foreclosed
property
Allowance for loan losses as a
percentage of total nonperforming loans
* December 31, 2007 ratios are estimated
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
Dec. 31, Sept. 30, Dec. 31,
(in millions, except share data) 2007 2007 2006
ASSETS
Cash and due from banks $1,440 $1,271 $1,434
Federal funds sold and securities
purchased under agreements to resell 36 129 2,632
Other short-term investments 373 293 327
Investment securities available-
for-sale 6,296 4,942 3,662
Commercial loans 28,223 27,392 26,265
Real estate construction loans 4,816 4,759 4,203
Commercial mortgage loans 10,048 9,994 9,659
Residential mortgage loans 1,915 1,892 1,677
Consumer loans 2,464 2,397 2,423
Lease financing 1,351 1,319 1,353
International loans 1,926 1,843 1,851
Total loans 50,743 49,596 47,431
Less allowance for loan losses (557) (512) (493)
Net loans 50,186 49,084 46,938
Premises and equipment 650 635 568
Customers' liability on acceptances
outstanding 48 39 56
Accrued income and other assets 3,302 3,629 2,384
Total assets $62,331 $60,022 $58,001
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $11,920 $11,290 $13,901
Money market and NOW deposits 15,261 14,814 15,250
Savings deposits 1,325 1,402 1,365
Customer certificates of deposit 8,357 8,010 7,223
Institutional certificates of deposit 6,147 5,049 5,783
Foreign office time deposits 1,268 1,355 1,405
Total interest-bearing deposits 32,358 30,630 31,026
Total deposits 44,278 41,920 44,927
Short-term borrowings 2,807 2,813 635
Acceptances outstanding 48 39 56
Accrued expenses and other
liabilities 1,251 1,267 1,281
Medium- and long-term debt 8,821 8,906 5,949
Total liabilities 57,205 54,945 52,848
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
12/31/07, 9/30/07 and 12/31/06 894 894 894
Capital surplus 564 551 520
Accumulated other comprehensive loss (177) (238) (324)
Retained earnings 5,506 5,484 5,282
Less cost of common stock in treasury
- 28,747,097 shares at 12/31/07,
27,725,572 shares at 9/30/07 and
21,161,161 shares at 12/31/06 (1,661) (1,614) (1,219)
Total shareholders' equity 5,126 5,077 5,153
Total liabilities and
shareholders' equity $62,331 $60,022 $58,001
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Ended Years Ended
December 31, December 31,
(in millions, except per share data) 2007 2006 2007 2006
INTEREST INCOME
Interest and fees on loans $873 $858 $3,501 $3,216
Interest on investment securities 66 42 206 174
Interest on short-term investments 5 12 23 32
Total interest income 944 912 3,730 3,422
INTEREST EXPENSE
Interest on deposits 303 298 1,167 1,005
Interest on short-term borrowings 30 15 105 130
Interest on medium- and long-term debt 122 97 455 304
Total interest expense 455 410 1,727 1,439
Net interest income 489 502 2,003 1,983
Provision for loan losses 108 22 212 37
Net interest income after
provision for loan losses 381 480 1,791 1,946
NONINTEREST INCOME
Service charges on deposit accounts 57 54 221 218
Fiduciary income 52 47 199 180
Commercial lending fees 23 19 75 65
Letter of credit fees 16 16 63 64
Foreign exchange income 10 10 40 38
Brokerage fees 11 10 43 40
Card fees 14 12 54 46
Bank-owned life insurance 9 9 36 40
Net income from principal investing
and warrants 6 3 19 10
Net securities gains 3 1 7 -
Net gain (loss) on sales of
businesses - - 3 (12)
Income from lawsuit settlement - 47 - 47
Other noninterest income 29 34 128 119
Total noninterest income 230 262 888 855
NONINTEREST EXPENSES
Salaries 216 231 844 823
Employee benefits 48 42 193 184
Total salaries and employee benefits 264 273 1,037 1,007
Net occupancy expense 36 34 138 125
Equipment expense 15 14 60 55
Outside processing fee expense 24 21 91 85
Software expense 17 15 63 56
Customer services 7 14 43 47
Litigation and operational losses 18 4 18 11
Provision for credit losses on
lending-related commitments 3 (4) (1) 5
Other noninterest expenses 66 86 242 283
Total noninterest expenses 450 457 1,691 1,674
Income from continuing operations
before income taxes 161 285 988 1,127
Provision for income taxes 44 100 306 345
Income from continuing operations 117 185 682 782
Income from discontinued operations,
net of tax 2 114 4 111
NET INCOME $119 $299 $686 $893
Basic earnings per common share:
Income from continuing operations $0.78 $1.17 $4.47 $4.88
Net income 0.80 1.89 4.49 5.57
Diluted earnings per common share:
Income from continuing operations 0.77 1.16 4.40 4.81
Net income 0.79 1.87 4.43 5.49
Cash dividends declared on common
stock 97 94 393 380
Dividends per common share 0.64 0.59 2.56 2.36
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Fourth Third Second First Fourth
Quarter Quarter Quarter Quarter Quarter
(in millions, except per 2007 2007 2007 2007 2006
share data)
INTEREST INCOME
Interest and fees on loans $873 $895 $882 $851 $858
Interest on investment securities 66 52 46 42 42
Interest on short-term investments 5 5 5 8 12
Total interest income 944 952 933 901 912
INTEREST EXPENSE
Interest on deposits 303 294 284 286 298
Interest on short-term borrowings 30 29 24 22 15
Interest on medium- and
long-term debt 122 126 116 91 97
Total interest expense 455 449 424 399 410
Net interest income 489 503 509 502 502
Provision for loan losses 108 45 36 23 22
Net interest income after
provision for loan losses 381 458 473 479 480
NONINTEREST INCOME
Service charges on deposit accounts 57 55 55 54 54
Fiduciary income 52 49 49 49 47
Commercial lending fees 23 19 17 16 19
Letter of credit fees 16 16 15 16 16
Foreign exchange income 10 11 10 9 10
Brokerage fees 11 11 10 11 10
Card fees 14 14 14 12 12
Bank-owned life insurance 9 8 9 10 9
Net income (loss) from principal
investing and warrants 6 11 6 (4) 3
Net securities gains 3 4 - - 1
Net gain (loss) on sales of
businesses - - 2 1 -
Income from lawsuit settlement - - - - 47
Other noninterest income 29 32 38 29 34
Total noninterest income 230 230 225 203 262
NONINTEREST EXPENSES
Salaries 216 207 215 206 231
Employee benefits 48 49 50 46 42
Total salaries and employee
benefits 264 256 265 252 273
Net occupancy expense 36 34 33 35 34
Equipment expense 15 15 15 15 14
Outside processing fee expense 24 23 24 20 21
Software expense 17 16 15 15 15
Customer services 7 11 11 14 14
Litigation and operational losses
(recoveries) 18 6 (9) 3 4
Provision for credit losses on
lending-related commitments 3 - (2) (2) (4)
Other noninterest expenses 66 62 59 55 86
Total noninterest expenses 450 423 411 407 457
Income from continuing operations
before income taxes 161 265 287 275 285
Provision for income taxes 44 85 91 86 100
Income from continuing operations 117 180 196 189 185
Income from discontinued operations,
net of tax 2 1 - 1 114
NET INCOME $119 $181 $196 $190 $299
Basic earnings per common share:
Income from continuing
operations $0.78 $1.18 $1.28 $1.21 $1.17
Net income 0.80 1.20 1.28 1.21 1.89
Diluted earnings per common share:
Income from continuing
operations 0.77 1.17 1.25 1.19 1.16
Net income 0.79 1.18 1.25 1.19 1.87
Cash dividends declared on common
stock 97 97 98 101 94
Dividends per common share 0.64 0.64 0.64 0.64 0.59
Fourth Quarter 2007 Compared To:
Third Quarter Fourth Quarter
2007 2006
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME
Interest and fees on loans $(22) (2.5)% $15 1.7
Interest on investment securities 14 27.8 24 57.0
Interest on short-term investments - 7.5 (7) (58.9)
Total interest income (8) (0.8) 32 3.4
INTEREST EXPENSE
Interest on deposits 9 3.2 5 1.7
Interest on short-term borrowings 1 1.4 15 112.8
Interest on medium- and long-term debt (4) (1.9) 25 25.8
Total interest expense 6 1.6 45 11.2
Net interest income (14) (3.0) (13) (2.9)
Provision for loan losses 63 N/M 86 N/M
Net interest income after
provision for loan losses (77) (17.1) (99) (20.9)
NONINTEREST INCOME
Service charges on deposit accounts 2 2.8 3 4.6
Fiduciary income 3 5.5 5 10.5
Commercial lending fees 4 23.0 4 19.9
Letter of credit fees - 1.4 - (1.9)
Foreign exchange income (1) (1.6) - 5.3
Brokerage fees - (5.4) 1 6.4
Card fees - 2.6 2 19.0
Bank-owned life insurance 1 1.7 - 1.7
Net income (loss) from principal
investing and warrants (5) N/M 3 N/M
Net securities gains (1) N/M 2 N/M
Net gain (loss) on sales of
businesses - N/M - N/M
Income from lawsuit settlement - N/M (47) N/M
Other noninterest income (3) (4.7) (5) (10.3)
Total noninterest income - 0.5 (32) (11.8)
NONINTEREST EXPENSES
Salaries 9 4.7 (15) (6.0)
Employee benefits (1) (2.5) 6 11.4
Total salaries and employee
benefits 8 3.4 (9) (3.2)
Net occupancy expense 2 2.9 2 4.8
Equipment expense - (1.8) 1 9.3
Outside processing fee expense 1 4.6 3 12.7
Software expense 1 7.4 2 13.0
Customer services (4) (30.0) (7) (43.3)
Litigation and operational losses
(recoveries) 12 N/M 14 N/M
Provision for credit losses on
lending-related commitments 3 N/M 7 N/M
Other noninterest expenses 4 3.9 (20) (24.4)
Total noninterest expenses 27 6.2 (7) (1.6)
Income from continuing operations
before income taxes (104) (39.1) (124) (43.5)
Provision for income taxes (41) (48.4) (56) (55.9)
Income from continuing operations (63) (34.6) (68) (36.8)
Income from discontinued operations,
net of tax 1 N/M (112) N/M
NET INCOME $(62) (34.2)% $(180) (60.2)
Basic earnings per common share:
Income from continuing
operations $(0.40) (33.9)% $(0.39) (33.3)
Net income (0.40) (33.3) (1.09) (57.7)
Diluted earnings per common share:
Income from continuing
operations (0.40) (34.2) (0.39) (33.6)
Net income (0.39) (33.1) (1.08) (57.8)
Cash dividends declared on common
stock - (0.9) 3 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) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
Balance at beginning of period $512 $507 $500 $493 $493
Loan charge-offs:
Commercial 27 30 19 13 7
Real estate construction:
Commercial Real Estate
business line 24 6 6 1 -
Other business lines 1 2 2 - -
Total real estate
construction 25 8 8 1 -
Commercial mortgage:
Commercial Real Estate
business line 7 2 3 3 3
Other business lines 9 4 10 14 4
Total commercial
mortgage 16 6 13 17 7
Residential mortgage - - - - -
Consumer 4 3 3 3 13
Lease financing - - - - 3
International - - - - 1
Total loan charge-offs 72 47 43 34 31
Recoveries on loans previously
charged-off:
Commercial 7 5 5 10 5
Real estate construction - - - - -
Commercial mortgage 1 1 2 - 1
Residential mortgage - - - - -
Consumer 1 1 1 1 1
Lease financing - - - 4 -
International - - 5 3 2
Total recoveries 9 7 13 18 9
Net loan charge-offs 63 40 30 16 22
Provision for loan losses 108 45 36 23 22
Foreign currency translation
adjustment - - 1 - -
Balance at end of period $557 $512 $507 $500 $493
Allowance for loan losses as a
percentage of total loans 1.10% 1.03% 1.04% 1.04% 1.04%
Net loan charge-offs as a
percentage of average total
loans 0.50 0.32 0.24 0.13 0.18
Net credit-related charge-offs as
a percentage of average total
loans 0.50 0.32 0.24 0.16 0.19
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING --
RELATED COMMITMENTS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
Balance at beginning of period $19 $19 $21 $26 $31
Less: Charge-offs on lending-
related commitments (1) 1 - - 3 1
Add: Provision for credit losses
on lending-related commitments 3 - (2) (2) (4)
Balance at end of period $21 $19 $19 $21 $26
Unfunded lending-related
commitments sold $22 $- $- $60 $20
(1) Charge-offs result from the sale of unfunded lending-related
commitments.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2007 2006
(in millions) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
SUMMARY OF NONPERFORMING ASSETS
AND PAST DUE LOANS
Nonaccrual loans:
Commercial $75 $64 $88 $73 $97
Real estate construction:
Commercial Real
Estate business line 161 55 37 21 18
Other business lines 6 4 7 4 2
Total real estate
construction 167 59 44 25 20
Commercial mortgage:
Commercial Real
Estate business line 66 63 20 17 18
Other business lines 75 77 84 84 54
Total commercial
mortgage 141 140 104 101 72
Residential mortgage 1 1 1 1 1
Consumer 3 4 3 4 4
Lease financing - - - 4 8
International 4 4 4 10 12
Total nonaccrual
loans 391 272 244 218 214
Reduced-rate loans 13 - - - -
Total nonperforming
loans 404 272 244 218 214
Foreclosed property 19 19 15 15 18
Total nonperforming
assets $423 $291 $259 $233 $232
Nonperforming loans as a
percentage of total loans 0.80% 0.55% 0.50% 0.45% 0.45%
Nonperforming assets as a
percentage of total loans
and foreclosed property 0.83 0.59 0.53 0.49 0.49
Allowance for loan losses as
a percentage of total
nonperforming loans 138 188 207 229 231
Loans past due 90 days or
more and still accruing $53 $56 $29 $15 $14
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $272 $244 $218 $214 $174
Loans transferred to
nonaccrual (1) 185 94 107 69 66
Nonaccrual business loan
gross charge-offs (2) (68) (44) (40) (31) (16)
Loans transferred to
accrual status (1) - (5) (8) - -
Nonaccrual business
loans sold (3) - (11) - (4) -
Payments/Other (4) 2 (6) (33) (30) (10)
Nonaccrual loans at end of
period $391 $272 $244 $218 $214
(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 $68 $44 $40 $31 $16
Performing watch list
loans - - - - 2
Consumer and
residential mortgage
loans 4 3 3 3 13
Total gross loan charge-
offs $72 $47 $43 $34 $31
(3) Analysis of loans sold:
Nonaccrual business
loans $- $11 $- $4 $-
Performing watch list
loans 13 - - - 25
Total loans sold $13 $11 $- $4 $25
(4) Includes net changes related to nonaccrual loans with balances less
than $2 million, other than business loan gross charge-offs and
nonaccrual loans sold, and payments on nonaccrual loans with book
balances greater than $2 million.
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Years Ended
December 31, 2007 December 31, 2006
(dollar amounts in Average Average Average Average
millions) Balance Interest Rate Balance Interest Rate
Commercial loans(1)(2) $28,132 $2,038 7.25% $27,341 $1,877 6.87%
Real estate
construction loans 4,552 374 8.21 3,905 336 8.61
Commercial mortgage
loans 9,771 709 7.26 9,278 675 7.27
Residential mortgage
loans 1,814 111 6.13 1,570 95 6.02
Consumer loans 2,367 166 7.00 2,533 181 7.13
Lease financing 1,302 40 3.04 1,314 52 4.00
International loans 1,883 133 7.06 1,809 127 7.01
Business loan swap
expense - (67) - - (124) -
Total loans (2) 49,821 3,504 7.03 47,750 3,219 6.74
Investment securities
available-for-sale 4,447 206 4.56 3,992 174 4.22
Federal funds sold
and securities purchased
under agreements to
resell 164 9 5.28 283 14 5.15
Other short-term
investments 256 14 5.65 266 18 6.69
Total earning assets 54,688 3,733 6.82 52,291 3,425 6.53
Cash and due from banks 1,352 1,557
Allowance for loan losses (520) (499)
Accrued income and other
assets 3,054 3,230
Total assets $58,574 $56,579
Money market and NOW
deposits (1) $14,937 460 3.08 $15,373 443 2.88
Savings deposits 1,389 13 0.93 1,441 11 0.79
Customer certificates
of deposit 7,687 342 4.45 6,505 261 4.01
Institutional
certificates of deposit 5,563 300 5.39 4,489 235 5.23
Foreign office time
deposits 1,071 52 4.85 1,131 55 4.82
Total interest-bearing
deposits 30,647 1,167 3.81 28,939 1,005 3.47
Short-term borrowings 2,080 105 5.06 2,654 130 4.89
Medium- and long-term
debt 8,197 455 5.55 5,407 304 5.63
Total interest-bearing
sources 40,924 1,727 4.22 37,000 1,439 3.89
Noninterest-bearing
deposits (1) 11,287 13,135
Accrued expenses and
other liabilities 1,284 1,268
Shareholders' equity 5,079 5,176
Total liabilities and
shareholders'
equity $58,574 $56,579
Net interest income
/rate spread (FTE) $2,006 2.60 $1,986 2.64
FTE adjustment $3 $3
Impact of net noninterest-bearing
sources of funds 1.06 1.15
Net interest margin (as a percentage
of average earning assets) (FTE) (2)
3.66% 3.79%
(1) FSD balances included above:
Loans (primarily
low-rate) $ 1,318 $9 0.69% $ 2,363 $ 13 0.57%
Interest-bearing
deposits 1,202 47 3.91 1,710 66 3.86
Noninterest-bearing
deposits 2,836 4,374
(2) Impact of FSD loans
(primarily low-rate) on
the following:
Commercial loans (0.32)% (0.59)%
Total loans (0.18) (0.32)
Net interest
margin (FTE)
(assuming loans
were funded by
noninterest-
bearing deposits) (0.08) (0.16)
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
December 31, 2007 September 30, 2007
(dollar amounts in Average Average Average Average
millions) Balance Interest Rate Balance Interest Rate
Commercial loans (1) (2) $28,393 $500 7.00% $28,052 $520 7.37%
Real estate construction
loans 4,846 92 7.48 4,607 97 8.33
Commercial mortgage loans 9,941 175 7.01 9,829 181 7.30
Residential mortgage loans 1,891 29 6.16 1,865 29 6.12
Consumer loans 2,412 41 6.64 2,320 41 7.06
Lease financing 1,327 8 2.41 1,319 11 3.25
International loans 1,889 34 7.03 1,882 33 6.98
Business loan swap expense - (6) - - (16) -
Total loans (2) 50,699 873 6.84 49,874 896 7.13
Investment securities
available-for-sale 5,533 66 4.76 4,405 52 4.60
Federal funds sold and
securities purchased
under agreements to resell 90 1 4.79 99 1 5.25
Other short-term
investments 299 4 5.44 263 4 5.27
Total earning assets 56,621 944 6.62 54,641 953 6.91
Cash and due from banks 1,241 1,351
Allowance for loan losses (541) (521)
Accrued income and other
assets 3,186 3,075
Total assets $60,507 $58,546
Money market and NOW
deposits (1) $15,174 116 3.03 $14,996 119 3.14
Savings deposits 1,374 4 1.00 1,380 3 0.97
Customer certificates of
deposit 8,229 92 4.44 7,702 87 4.48
Institutional certificates
of deposit 5,779 76 5.22 5,170 72 5.49
Foreign office time
deposits 1,278 15 4.69 1,028 13 4.96
Total interest-
bearing deposits 31,834 303 3.77 30,276 294 3.85
Short-term borrowings 2,560 30 4.64 2,278 29 5.15
Medium- and long-term debt 9,180 122 5.31 8,852 126 5.61
Total interest-
bearing sources 43,574 455 4.15 41,406 449 4.29
Noninterest-bearing
deposits (1) 10,533 10,840
Accrued expenses and other
liabilities 1,304 1,276
Shareholders' equity 5,096 5,024
Total liabilities and
shareholders' equity $60,507 $58,546
Net interest income/rate
spread (FTE) $489 2.47 $504 2.62
FTE adjustment $- $1
Impact of net noninterest-
bearing sources of funds 0.96 1.04
Net interest margin (as a
percentage of average earning
assets) (FTE) (2) 3.43% 3.66%
(1) FSD balances included
above:
Loans (primarily low-
rate) $941 $2 0.98% $1,191 $2 0.71%
Interest-bearing
deposits 1,121 11 3.78 1,214 12 4.06
Noninterest-bearing
deposits 2,060 2,575
(2) Impact of FSD loans
(primarily low-rate) on
the following:
Commercial loans (0.21)% (0.30)%
Total loans (0.11) (0.16)
Net interest margin
(FTE) (assuming loans were
funded by noninterest-
bearing deposits) (0.04) (0.07)
Three Months Ended
December 31, 2006
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $27,609 $502 7.21%
Real estate construction loans 4,204 92 8.72
Commercial mortgage loans 9,515 178 7.43
Residential mortgage loans 1,647 25 6.11
Consumer loans 2,468 46 7.34
Lease financing 1,335 13 3.88
International loans 1,790 33 7.25
Business loan swap expense - (30) -
Total loans (2) 48,568 859 7.02
Investment securities available-for-
sale 3,842 42 4.27
Federal funds sold and securities
purchased under agreements to resell 325 4 5.38
Other short-term investments 554 8 5.80
Total earning assets 53,289 913 6.79
Cash and due from banks 1,460
Allowance for loan losses (504)
Accrued income and other assets 3,367
Total assets $57,612
Money market and NOW deposits (1) $14,705 117 3.15
Savings deposits 1,376 3 0.90
Customer certificates of deposit 7,191 80 4.39
Institutional certificates of deposit 5,783 79 5.44
Foreign office time deposits 1,499 19 5.06
Total interest-bearing deposits 30,554 298 3.87
Short-term borrowings 1,053 15 5.30
Medium- and long-term debt 6,727 97 5.76
Total interest-bearing
sources 38,334 410 4.24
Noninterest-bearing deposits (1) 12,649
Accrued expenses and other
liabilities 1,349
Shareholders' equity 5,280
Total liabilities and
shareholders' equity $57,612
Net interest income/rate spread (FTE) $503 2.55
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 1.20
Net interest margin (as a percentage
of average earning assets) (FTE)(2) 3.75%
(1) FSD balances included above:
Loans (primarily low-rate) $1,909 $3 0.66%
Interest-bearing deposits 1,338 13 3.94
Noninterest-bearing deposits 3,953
(2) Impact of FSD loans (primarily
low-rate) on the following:
Commercial loans (0.49)%
Total loans (0.25)
Net interest margin (FTE)
(assuming loans were funded by
noninterest-bearing deposits) (0.11)
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
December 31, September 30, June 30,
(in millions, except per share data) 2007 2007 2007
Commercial loans:
Floor plan $2,878 $2,601 $3,012
Other 25,345 24,791 24,134
Total commercial loans 28,223 27,392 27,146
Real estate construction loans:
Commercial Real Estate business
line 4,089 4,007 3,777
Other business lines 727 752 736
Total real estate construction
loans 4,816 4,759 4,513
Commercial mortgage loans:
Commercial Real Estate business
line 1,377 1,467 1,344
Other business lines 8,671 8,527 8,384
Total commercial mortgage
loans 10,048 9,994 9,728
Residential mortgage loans 1,915 1,892 1,839
Consumer loans:
Home equity 1,616 1,582 1,585
Other consumer 848 815 736
Total consumer loans 2,464 2,397 2,321
Lease financing 1,351 1,319 1,314
International loans 1,926 1,843 1,904
Total loans $50,743 $49,596 $48,765
Goodwill $150 $150 $150
Loan servicing rights 12 13 13
Tier 1 common capital ratio* 6.80% 7.01% 7.18%
Tier 1 risk-based capital ratio* 7.46 7.68 7.87
Total risk-based capital ratio * 11.11 11.44 11.71
Leverage ratio* 9.30 9.60 9.68
Book value per share $34.18 $33.62 $32.80
Market value per share for the
quarter:
High $54.88 $61.34 $63.89
Low 39.62 50.26 58.18
Close 43.53 51.28 59.47
Quarterly ratios:
Return on average common
shareholders' equity from
continuing operations 9.18% 14.24% 15.41%
Return on average common
shareholders' equity 9.34 14.38 15.41
Return on average assets from
continuing operations 0.77 1.22 1.35
Return on average assets 0.79 1.23 1.35
Efficiency ratio 62.76 58.00 55.97
Number of banking centers 417 403 402
Number of employees - full time
equivalent 10,782 10,683 10,687
March 31, December 31,
(in millions, except per share data) 2007 2006
Commercial loans:
Floor plan $2,970 $3,198
Other 23,711 23,067
Total commercial loans 26,681 26,265
Real estate construction loans:
Commercial Real Estate business
line 3,708 3,449
Other business lines 754 754
Total real estate construction
loans 4,462 4,203
Commercial mortgage loans:
Commercial Real Estate business
line 1,286 1,534
Other business lines 8,306 8,125
Total commercial mortgage loans 9,592 9,659
Residential mortgage loans 1,741 1,677
Consumer loans:
Home equity 1,570 1,591
Other consumer 822 832
Total consumer loans 2,392 2,423
Lease financing 1,273 1,353
International loans 1,848 1,851
Total loans $47,989 $47,431
Goodwill $150 $150
Loan servicing rights 14 14
Tier 1 common capital ratio* 7.49% 7.54%
Tier 1 risk-based capital ratio* 8.19 8.03
Total risk-based capital ratio * 12.15 11.64
Leverage ratio* 10.00 9.77
Book value per share $32.84 $32.70
Market value per share for the quarter:
High $63.39 $59.72
Low 56.77 55.82
Close 59.12 58.68
Quarterly ratios:
Return on average common
shareholders' equity from
continuing operations 14.83% 14.03%
Return on average common
shareholders' equity 14.86 22.63
Return on average assets from
continuing operations 1.33 1.29
Return on average assets 1.33 2.07
Efficiency ratio 57.66 59.81
Number of banking centers 402 393
Number of employees - full time
equivalent 10,661 10,700
* December 31, 2007 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
December 31, September 30, December 31,
(in millions, except per share data) 2007 2007 2006
ASSETS
Cash and due from subsidiary bank $1 $5 $122
Short-term investments with
subsidiary bank 224 222 246
Other short-term investments 102 101 92
Investment in subsidiaries,
principally banks 5,849 5,799 5,586
Premises and equipment 4 4 4
Other assets 156 152 152
Total assets $6,336 $6,283 $6,202
LIABILITIES AND SHAREHOLDERS' EQUITY
Medium- and long-term debt $968 $956 $806
Other liabilities 242 250 243
Total liabilities 1,210 1,206 1,049
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
12/31/07, 9/30/07, and 12/31/06 894 894 894
Capital surplus 564 551 520
Accumulated other comprehensive loss (177) (238) (324)
Retained earnings 5,506 5,484 5,282
Less cost of common stock in treasury
- 28,747,097 shares at 12/31/07,
27,725,572 shares at 9/30/07 and
21,161,161 shares at 12/31/06 (1,661) (1,614) (1,219)
Total shareholders' equity 5,126 5,077 5,153
Total liabilities and
shareholders' equity $6,336 $6,283 $6,202
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
Accumulated
Other
Compre- Total
Common Stock Capital hen- Share-
(in millions, except In Sur- sive Retained Treasury 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 - - - - 893 - 893
Other comprehensive
income, net of tax - - - 55 - - 55
Total comprehensive
income 948
Cash dividends declared
on common stock ($2.36
per share) - - - - (380) - (380)
Purchase of common
stock (6.7) - - - - (384) (384)
Net issuance of common
stock under employee
stock plans 1.7 - (15) - (27) 95 53
Recognition of share-
based compensation
expense - - 57 - - - 57
Employee deferred
compensation
obligations (0.3) - 17 - - (17) -
SFAS 158 transition
adjustment, net of tax - - - (209) - - (209)
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 - - - - 686 - 686
Other comprehensive
income, net of tax - - - 147 - - 147
Total comprehensive
income - - - - - - 833
Cash dividends declared
on common stock ($2.56
per share) - - - - (393) - (393)
Purchase of common
stock (10.0) - - - - (580) (580)
Net issuance of common
stock under employee
stock plans 2.4 - (16) - (26) 139 97
Recognition of share-
based compensation
expense - - 59 - - - 59
Employee deferred
compensation
obligations - - 1 - - (1) -
BALANCE AT DECEMBER 31,
2007 150.0 $894 $564 $(177) $5,506 $(1,661) $5,126
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
Three Months Wealth &
Ended December 31, Business Retail Institutional
2007 Bank Bank Management Finance Other Total
Earnings summary:
Net interest income
(expense) (FTE) $327 $151 $36 $(17) $(8) $489
Provision for loan losses 88 26 1 - (7) 108
Noninterest income 80 55 72 16 7 230
Noninterest expenses 186 182 86 3 (7) 450
Provision (benefit) for
income taxes (FTE) 43 (1) 8 (5) (1) 44
Income from discontinued
operations, net of tax - - - - 2 2
Net income (loss) $90 $(1) $13 $1 $16 $119
Net credit-related
charge-offs $50 $14 $- $- $- $64
Selected average
balances:
Assets $41,327 $6,998 $4,321 $6,785 $1,076 $60,507
Loans 40,285 6,229 4,146 5 34 50,699
Deposits 15,931 17,254 2,552 6,622 8 42,367
Liabilities 16,765 17,266 2,561 18,472 347 55,411
Attributed equity 3,073 872 353 724 74 5,096
Statistical data:
Return on average
assets (1) 0.88% (0.02)% 1.21% N/M N/M 0.79%
Return on average
attributed equity 11.80 (0.44) 14.78 N/M N/M 9.34
Net interest margin (2) 3.22 3.47 3.41 N/M N/M 3.43
Efficiency ratio 45.87 88.52 79.66 N/M N/M 62.76
Three Months Wealth &
Ended September 30, Business Retail Institutional
2007 Bank Bank Management Finance Other Total
Earnings summary:
Net interest income
(expense) (FTE) $332 $159 $36 $(16) $(7) $504
Provision for loan losses 43 7 (5) - - 45
Noninterest income 82 56 70 17 5 230
Noninterest expenses 177 160 81 2 3 423
Provision (benefit)
for income taxes (FTE) 60 16 10 (3) 3 86
Income from discontinued
operations, net of tax - - - - 1 1
Net income (loss) $134 $32 $20 $2 $(7) $181
Net credit-related
charge-offs $30 $9 $1 $- $- $40
Selected average
balances:
Assets $40,796 $6,854 $4,152 $5,564 $1,180 $58,546
Loans 39,746 6,111 3,989 2 26 49,874
Deposits 15,948 17,144 2,378 5,748 (102) 41,116
Liabilities 16,783 17,158 2,385 16,971 225 53,522
Attributed equity 2,902 848 338 615 321 5,024
Statistical data:
Return on average
assets (1) 1.32% 0.71% 1.90% N/M N/M 1.23%
Return on average
attributed equity 18.52 15.05 23.39 N/M N/M 14.38
Net interest margin (2) 3.31 3.68 3.58 N/M N/M 3.66
Efficiency ratio 43.47 74.31 75.95 N/M N/M 58.00
Three Months Wealth &
Ended December 31, Business Retail Institutional
2006 Bank Bank Management Finance Other Total
Earnings summary:
Net interest income
(expense) (FTE) $335 $159 $36 $(23) $(4) $503
Provision for loan
losses 15 6 2 - (1) 22
Noninterest income 116 53 67 16 10 262
Noninterest expenses 194 164 86 7 6 457
Provision (benefit) for
income taxes (FTE) 88 15 4 (10) 4 101
Income from discontinued
operations, net of tax - - - - 114 114
Net income (loss) $154 $27 $11 $(4) $111 $299
Net credit-related
charge-offs $6 $16 $1 $- $- $23
Selected average
balances:
Assets $39,872 $6,810 $3,794 $5,515 $1,621 $57,612
Loans 38,766 6,100 3,646 25 31 48,568
Deposits 17,110 16,969 2,351 6,817 (44) 43,203
Liabilities 17,993 16,978 2,348 14,623 390 52,332
Attributed equity 2,748 833 307 568 824 5,280
Statistical data:
Return on average
assets (1) 1.54% 0.61% 1.17% N/M N/M 2.07%
Return on average
attributed equity 22.32 13.00 14.43 N/M N/M 22.63
Net interest margin (2) 3.43 3.71 3.90 N/M N/M 3.75
Efficiency ratio 43.11 77.81 82.90 N/M N/M 59.81
(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 December Other
31, 2007 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $206 $173 $72 $12 $35
Provision for loan losses 20 92 8 5 (7)
Noninterest income 120 35 23 4 16
Noninterest expenses 218 121 67 12 25
Provision (benefit) for
income taxes (FTE) 33 - 8 - 3
Income from discontinued
operations, net of tax - - - - -
Net income (loss) $55 $(5) $12 $(1) $30
Net credit-related charge-
offs (recoveries) $38 $22 $3 $- $1
Selected average balances:
Assets $19,228 $17,137 $7,678 $1,731 $4,591
Loans 18,602 16,615 7,382 1,717 4,192
Deposits 16,117 13,012 3,935 299 1,495
Liabilities 16,797 13,044 3,953 297 1,613
Attributed equity 1,766 1,264 635 111 369
Statistical data:
Return on average assets (1) 1.15% (0.12)% 0.65% (0.15)% 2.61%
Return on average
attributed equity 12.56 (1.65) 7.91 (2.32) 32.55
Net interest margin (2) 4.38 4.13 3.85 2.70 3.36
Efficiency ratio 67.03 58.21 70.71 72.82 49.56
Three Months Ended Other
September 30, 2007 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $216 $177 $71 $13 $33
Provision for loan losses 15 23 (2) 3 12
Noninterest income 119 36 24 4 14
Noninterest expenses 206 110 58 10 23
Provision (benefit) for
income taxes (FTE) 39 30 13 1 (5)
Income from discontinued
operations, net of tax - - - - -
Net income (loss) $75 $50 $26 $3 $17
Net credit-related charge-
offs (recoveries) $23 $7 $1 $1 $9
Selected average balances:
Assets $19,131 $17,095 $7,172 $1,706 $4,428
Loans 18,526 16,543 6,902 1,692 4,047
Deposits 15,636 13,009 3,920 271 1,475
Liabilities 16,307 13,044 3,937 273 1,591
Attributed equity 1,699 1,201 597 97 343
Statistical data:
Return on average assets (1) 1.57% 1.17% 1.44% 0.58% 1.59%
Return on average
attributed equity 17.61 16.69 17.36 10.19 20.50
Net interest margin (2) 4.60 4.24 4.08 2.97 3.33
Efficiency ratio 61.94 51.84 60.91 58.59 48.92
Three Months Ended December Other
31, 2006 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $224 $178 $69 $11 $32
Provision for loan losses 40 (15) 3 1 (4)
Noninterest income 116 74 20 4 14
Noninterest expenses 215 122 59 10 26
Provision (benefit) for
income taxes (FTE) 27 62 10 1 -
Income from discontinued
operations, net of tax - - - - -
Net income (loss) $58 $83 $17 $3 $24
Net credit-related charge-
offs (recoveries) $12 $(2) $2 $- $11
Selected average balances:
Assets $19,297 $16,572 $6,631 $1,631 $4,251
Loans 18,671 16,037 6,360 1,611 3,863
Deposits 15,860 14,145 3,794 292 1,292
Liabilities 16,530 14,180 3,807 296 1,428
Attributed equity 1,650 1,140 559 87 307
Statistical data:
Return on average assets (1) 1.19% 2.01% 1.03% 0.70% 2.24%
Return on average
attributed equity 13.96 29.14 12.20 13.03 31.03
Net interest margin (2) 4.74 4.40 4.27 2.80 3.30
Efficiency ratio 63.32 48.59 66.36 66.69 56.21
(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) Finance
& Other
Three Months Ended December 31, 2007 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $16 $(25) $489
Provision for loan losses (3) (7) 108
Noninterest income 9 23 230
Noninterest expenses 11 (4) 450
Provision (benefit) for income taxes
(FTE) 6 (6) 44
Income from discontinued operations,
net of tax - 2 2
Net income (loss) $11 $17 $119
Net credit-related charge-offs
(recoveries) $- $- $64
Selected average balances:
Assets $2,281 $7,861 $60,507
Loans 2,152 39 50,699
Deposits 879 6,630 42,367
Liabilities 888 18,819 55,411
Attributed equity 153 798 5,096
Statistical data:
Return on average assets (1) 1.85% N/M 0.79%
Return on average attributed equity 27.60 N/M 9.34
Net interest margin (2) 2.77 N/M 3.43
Efficiency ratio 47.39 N/M 62.76
Finance
& Other
Three Months Ended September 30, 2007 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $17 $(23) $504
Provision for loan losses (6) - 45
Noninterest income 11 22 230
Noninterest expenses 11 5 423
Provision (benefit) for income taxes
(FTE) 8 - 86
Income from discontinued operations,
net of tax - 1 1
Net income (loss) $15 $(5) $181
Net credit-related charge-offs
(recoveries) $(1) $- $40
Selected average balances:
Assets $2,270 $6,744 $58,546
Loans 2,136 28 49,874
Deposits 1,159 5,646 41,116
Liabilities 1,174 17,196 53,522
Attributed equity 151 936 5,024
Statistical data:
Return on average assets (1) 2.66% N/M 1.23%
Return on average attributed equity 40.10 N/M 14.38
Net interest margin (2) 3.02 N/M 3.66
Efficiency ratio 43.17 N/M 58.00
Finance
& Other
Three Months Ended December 31, 2006 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $16 $(27) $503
Provision for loan losses (2) (1) 22
Noninterest income 8 26 262
Noninterest expenses 12 13 457
Provision (benefit) for income taxes
(FTE) 7 (6) 101
Income from discontinued operations,
net of tax - 114 114
Net income (loss) $7 $107 $299
Net credit-related charge-offs
(recoveries) $- $- $23
Selected average balances:
Assets $2,094 $7,136 $57,612
Loans 1,970 56 48,568
Deposits 1,047 6,773 43,203
Liabilities 1,078 15,013 52,332
Attributed equity 145 1,392 5,280
Statistical data:
Return on average assets (1) 1.37 % N/M 2.07 %
Return on average attributed equity 19.74 N/M 22.63
Net interest margin (2) 3.25 N/M 3.75
Efficiency ratio 50.47 N/M 59.81
(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
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
Wealth &
(dollar amounts in millions) Business Retail Institutional
Year Ended December 31, 2007 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $1,326 $627 $145
Provision for loan losses 178 41 (3)
Noninterest income 291 220 283
Noninterest expenses 708 655 322
Provision (benefit) for income taxes
(FTE) 228 52 39
Income from discontinued operations,
net of tax - - -
Net income $503 $99 $70
Net credit-related charge-offs $117 $34 $2
Selected average balances:
Assets $40,762 $6,880 $4,096
Loans 39,721 6,134 3,937
Deposits 16,253 17,156 2,386
Liabilities 17,091 17,169 2,392
Attributed equity 2,935 850 332
Statistical data:
Return on average assets (1) 1.23 % 0.55 % 1.70 %
Return on average attributed equity 17.11 11.68 21.03
Net interest margin (2) 3.33 3.65 3.64
Efficiency ratio 44.10 77.29 75.29
(dollar amounts in millions)
Year Ended December 31, 2007 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(69) $(23) $2,006
Provision for loan losses - (4) 212
Noninterest income 65 29 888
Noninterest expenses 10 (4) 1,691
Provision (benefit) for income taxes
(FTE) (18) 8 309
Income from discontinued operations,
net of tax - 4 4
Net income $4 $10 $686
Net credit-related charge-offs $- $- $153
Selected average balances:
Assets $5,669 $1,167 $58,574
Loans 7 22 49,821
Deposits 6,174 (35) 41,934
Liabilities 16,531 312 53,495
Attributed equity 628 334 5,079
Statistical data:
Return on average assets (1) N/M N/M 1.17 %
Return on average attributed equity N/M N/M 13.50
Net interest margin (2) N/M N/M 3.66
Efficiency ratio N/M N/M 58.58
Wealth &
Business Retail Institutional
Year Ended December 31, 2006 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $1,315 $637 $147
Provision for loan losses 14 23 1
Noninterest income 305 210 259
Noninterest expenses 741 608 313
Provision (benefit) for income taxes
(FTE) 276 72 31
Income from discontinued operations,
net of tax - - -
Net income (loss) $589 $144 $61
Net credit-related charge-offs $37 $35 $-
Selected average balances:
Assets $39,263 $6,786 $3,677
Loans 38,081 6,084 3,534
Deposits 17,775 16,807 2,394
Liabilities 18,677 16,810 2,392
Attributed equity 2,639 831 299
Statistical data:
Return on average assets (1) 1.50 % 0.81 % 1.67 %
Return on average attributed equity 22.30 17.30 20.49
Net interest margin (2) 3.45 3.79 4.15
Efficiency ratio 45.78 71.75 77.10
Year Ended December 31, 2006 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(100) $(13) $1,986
Provision for loan losses - (1) 37
Noninterest income 64 17 855
Noninterest expenses 14 (2) 1,674
Provision (benefit) for income taxes
(FTE) (32) 1 348
Income from discontinued operations,
net of tax - 111 111
Net income (loss) $(18) $117 $893
Net credit-related charge-offs $- $- $72
Selected average balances:
Assets $5,271 $1,582 $56,579
Loans 18 33 47,750
Deposits 5,186 (88) 42,074
Liabilities 13,198 326 51,403
Attributed equity 499 908 5,176
Statistical data:
Return on average assets (1) N/M N/M 1.58 %
Return on average attributed equity N/M N/M 17.24
Net interest margin (2) N/M N/M 3.79
Efficiency ratio N/M N/M 58.92
Wealth &
Business Retail Institutional
Year Ended December 31, 2005 Bank Bank Management
Earnings summary:
Net interest income (expense) (FTE) $1,395 $612 $147
Provision for loan losses (42) 4 (3)
Noninterest income 284 208 253
Noninterest expenses 728 546 304
Provision (benefit) for income taxes
(FTE) 335 96 36
Income from discontinued operations,
net of tax - - -
Net income (loss) $658 $174 $63
Net credit-related charge-offs $86 $25 $6
Selected average balances:
Assets $35,708 $6,554 $3,487
Loans 34,561 5,882 3,338
Deposits 20,424 16,841 2,458
Liabilities 21,160 16,832 2,453
Attributed equity 2,528 805 300
Statistical data:
Return on average assets (1) 1.84 % 0.99 % 1.81 %
Return on average attributed equity 26.02 21.64 21.07
Net interest margin (2) 4.02 3.63 4.39
Efficiency ratio 43.37 66.54 76.13
Year Ended December 31, 2005 Finance Other Total
Earnings summary:
Net interest income (expense) (FTE) $(183) $(11) $1,960
Provision for loan losses - (6) (47)
Noninterest income 63 11 819
Noninterest expenses 10 25 1,613
Provision (benefit) for income taxes
(FTE) (59) (11) 397
Income from discontinued operations,
net of tax - 45 45
Net income (loss) $(71) $37 $861
Net credit-related charge-offs $- $(1) $116
Selected average balances:
Assets $5,218 $1,539 $52,506
Loans (15) 50 43,816
Deposits 896 21 40,640
Liabilities 6,510 454 47,409
Attributed equity 510 954 5,097
Statistical data:
Return on average assets (1) N/M N/M 1.64 %
Return on average attributed equity N/M N/M 16.90
Net interest margin (2) N/M N/M 4.06
Efficiency ratio N/M N/M 58.01
(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)
Year Ended December 31, Other
2007 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $863 $706 $279 $47 $136
Provision for loan
losses 88 108 8 11 16
Noninterest income 471 131 86 14 54
Noninterest expenses 821 455 235 39 92
Provision (benefit) for
income taxes (FTE) 148 104 43 4 (7)
Income from discontinued
operations, net of tax - - - - -
Net income $277 $170 $79 $7 $89
Net credit-related
charge-offs $110 $28 $9 $2 $10
Selected average
balances:
Assets $19,189 $17,069 $7,106 $1,687 $4,435
Loans 18,598 16,530 6,827 1,672 4,041
Deposits 15,819 13,325 3,884 286 1,386
Liabilities 16,484 13,361 3,900 288 1,503
Attributed equity 1,722 1,212 596 96 335
Statistical data:
Return on average
assets (1) 1.44% 0.99% 1.12% 0.43% 2.01%
Return on average
attributed equity 16.02 13.99 13.40 7.51 26.61
Net interest margin (2) 4.62 4.26 4.08 2.80 3.36
Efficiency ratio 61.76 54.45 64.32 63.65 48.42
Finance
(dollar amounts in millions) & Other
Year Ended December 31, 2007 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $67 $(92) $2,006
Provision for loan losses (15) (4) 212
Noninterest income 38 94 888
Noninterest expenses 43 6 1,691
Provision (benefit) for income taxes
(FTE) 27 (10) 309
Income from discontinued operations,
net of tax - 4 4
Net income $50 $14 $686
Net credit-related charge-offs $(6) $- $153
Selected average balances:
Assets $2,252 $6,836 $58,574
Loans 2,124 29 49,821
Deposits 1,095 6,139 41,934
Liabilities 1,116 16,843 53,495
Attributed equity 156 962 5,079
Statistical data:
Return on average assets (1) 2.20% N/M 1.17%
Return on average attributed equity 31.86 N/M 13.50
Net interest margin (2) 3.08 N/M 3.66
Efficiency ratio 43.12 N/M 58.58
Year Ended December 31, Other
2006 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $908 $701 $261 $43 $118
Provision for loan
losses 77 (32) (2) 3 6
Noninterest income 452 160 76 14 52
Noninterest expenses 811 450 216 34 101
Provision (benefit) for
income taxes (FTE) 153 170 41 6 (9)
Income from discontinued
operations, net of tax - - - - -
Net income $319 $273 $82 $14 $72
Net credit-related
charge-offs $48 $1 $7 $2 $13
Selected average
balances:
Assets $19,407 $16,445 $6,174 $1,528 $3,971
Loans 18,737 15,882 5,911 1,508 3,598
Deposits 16,061 14,592 3,699 306 1,253
Liabilities 16,734 14,658 3,709 308 1,378
Attributed equity 1,623 1,102 529 80 278
Statistical data:
Return on average
assets (1) 1.64% 1.66% 1.33% 0.88% 1.81%
Return on average
attributed equity 19.67 24.79 15.56 16.81 25.81
Net interest margin (2) 4.83 4.41 4.39 2.84 3.29
Efficiency ratio 59.57 52.29 64.14 60.34 59.32
Finance
& Other
Year Ended December 31, 2006 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $68 $(113) $1,986
Provision for loan losses (14) (1) 37
Noninterest income 20 81 855
Noninterest expenses 50 12 1,674
Provision (benefit) for income taxes
(FTE) 18 (31) 348
Income from discontinued operations,
net of tax - 111 111
Net income $34 $99 $893
Net credit-related charge-offs $1 $- $72
Selected average balances:
Assets $2,201 $6,853 $56,579
Loans 2,063 51 47,750
Deposits 1,065 5,098 42,074
Liabilities 1,092 13,524 51,403
Attributed equity 157 1,407 5,176
Statistical data:
Return on average assets (1) 1.52% N/M 1.58%
Return on average attributed equity 21.37 N/M 17.24
Net interest margin (2) 3.17 N/M 3.79
Efficiency ratio 57.73 N/M 58.92
Year Ended December 31, Other
2005 Midwest Western Texas Florida Markets
Earnings summary:
Net interest income
(expense) (FTE) $923 $784 $242 $39 $89
Provision for loan
losses 46 (68) (8) 1 2
Noninterest income 460 122 75 13 40
Noninterest expenses 794 434 189 28 75
Provision (benefit) for
income taxes (FTE) 192 202 47 8 (10)
Income from discontinued
operations, net of tax - - - - -
Net income (loss) $351 $338 $89 $15 $62
Net credit-related
charge-offs $79 $14 $6 $7 $5
Selected average
balances:
Assets $19,502 $14,219 $5,176 $1,301 $2,827
Loans 18,796 13,638 4,998 1,288 2,596
Deposits 16,781 16,852 3,655 299 996
Liabilities 17,396 16,865 3,651 297 1,089
Attributed equity 1,646 1,046 471 66 206
Statistical data:
Return on average
assets (1) 1.80% 1.89% 1.72% 1.15% 2.18%
Return on average
attributed equity 21.39 32.30 18.87 22.72 29.89
Net interest margin (2) 4.90 4.65 4.82 3.06 3.44
Efficiency ratio 57.40 47.92 59.76 54.77 57.72
Finance
& Other
Year Ended December 31, 2005 International Businesses Total
Earnings summary:
Net interest income (expense) (FTE) $77 $(194) $1,960
Provision for loan losses (14) (6) (47)
Noninterest income 35 74 819
Noninterest expenses 58 35 1,613
Provision (benefit) for income taxes
(FTE) 28 (70) 397
Income from discontinued operations,
net of tax - - 45 45
Net income (loss) $40 $(34) $861
Net credit-related charge-offs $6 $(1) $116
Selected average balances:
Assets $2,724 $6,757 $52,506
Loans 2,465 35 43,816
Deposits 1,140 917 40,640
Liabilities 1,147 6,964 47,409
Attributed equity 198 1,464 5,097
Statistical data:
Return on average assets (1) 1.46% N/M 1.64%
Return on average attributed equity 20.11 N/M 16.90
Net interest margin (2) 2.92 N/M 4.06
Efficiency ratio 51.74 N/M 58.01
(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
