DALLAS, April 17 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported first quarter 2008 income from continuing operations of $110 million, or $0.73 per diluted share, compared to $117 million, or $0.77 per diluted share, for the fourth quarter 2007 and $189 million, or $1.19 per diluted share, for the first quarter 2007. First quarter 2008 included a $159 million provision for loan losses, compared to $108 million for the fourth quarter 2007 and $23 million for the first quarter 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO ) (dollar amounts in millions, 1st Qtr 4th Qtr 1st Qtr except per share data) '08 '07 '07 Net interest income $476 $489 $502 Provision for loan losses 159 108 23 Noninterest income 237 230 203 Noninterest expenses 403 450 407 Income from continuing operations, net of tax 110 117 189 Net income 109 119 190 Diluted EPS from continuing operations 0.73 0.77 1.19 Diluted EPS from discontinued operations* - 0.02 - Diluted EPS 0.73 0.79 1.19 Return on average common shareholders' equity from continuing operations 8.51 % 9.20 % 14.86 % Return on average common shareholders' equity 8.42 9.35 14.89 Net interest margin 3.22 3.43 3.82 * In the fourth quarter 2006, Comerica sold its stake in Munder Capital Management (Munder) and reports Munder as a discontinued operation in all periods presented.
"Despite the challenged economic environment, we remained focused on executing our strategy in the first quarter, as evidenced by good loan and deposit growth, particularly in our high-growth markets," said Ralph W. Babb Jr., chairman and chief executive officer. "While the continued deterioration of the California residential real estate market and its effects on our residential real estate development portfolio affected our overall performance, the remainder of our loan portfolio continued to exhibit stable credit metrics.
"As expected, the net interest margin of 3.22 percent declined 21 basis points from the fourth quarter, largely due to planned securities purchases, expected loan growth in excess of core deposit growth, and the reduced contribution of noninterest-bearing funds in a lower rate environment.
"Our expenses were well controlled in the first quarter with reduced headcount, even as we continued our banking center expansion program."
First Quarter 2008 Compared to Fourth Quarter 2007
- On an annualized basis, excluding Financial Services Division (FSD)
loans, average loans increased 10 percent, with growth of 14 percent in
the Texas market, 10 percent in the Western market and 9 percent in the
Midwest market.
- On an annualized basis, total deposits, excluding FSD deposits and
institutional certificates of deposit, increased five percent,
including an increase in noninterest-bearing deposits of 12 percent.
Deposit growth occurred while deposit rates were lowered. Funding
sources also included $2 billion of new advances from the Federal Home
Loan Bank of Dallas with a five-year term at an attractive rate.
- The net interest margin was 3.22 percent in the first quarter 2008, a
decrease of 21 basis points from 3.43 percent in the fourth quarter
2007, largely due to planned securities purchases, expected loan growth
in excess of core deposit growth and the reduced contribution of
noninterest-bearing funds in a lower rate environment.
- Net credit-related charge-offs were $110 million, or 85 basis points as
a percent of average total loans, for the first quarter 2008, compared
to $64 million, or 50 basis points as a percent of average total loans,
for the fourth quarter 2007. Of the first quarter charge-offs, $75
million were in the Commercial Real Estate business line, predominantly
with residential real estate developers in the Western market. The
remaining net charge-offs of $35 million were 31 basis points of
average non-Commercial Real Estate loans. The provision for loan losses
was $159 million for the first quarter 2008, compared to $108 million
for the fourth quarter 2007, bringing the period-end allowance to total
loans ratio to 1.16 percent from 1.10 percent at December 31, 2007.
- Noninterest income increased $7 million, and included a $21 million
gain on Visa shares, with increases in investment banking fees and
service charges on deposit accounts, partially offset by decreases in
net income from principal investing and warrants, seasonally lower
commercial lending fees, and deferred compensation asset returns (which
are offset by a decrease in deferred compensation plan costs in
noninterest expenses).
- Noninterest expenses decreased $47 million from the fourth quarter
2007, mostly due to the first quarter 2008 reversal of the $13 million
loss sharing arrangement expense that was recorded in the fourth
quarter 2007 related to membership in Visa and a $16 million decrease
in salaries expense, including a decrease in deferred compensation plan
costs in first quarter 2008, partially offset by an increase in share-
based compensation expense.
- The estimated Tier 1 common capital ratio was 6.71 percent, within the
targeted range.
Net Interest Income and Net Interest Margin
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income $476 $489 $502
Net interest margin 3.22 % 3.43 % 3.82 %
Selected average balances:
Total earning assets $59,518 $56,621 $53,148
Total investment securities 7,222 5,533 3,745
Total loans 51,852 50,699 48,896
Total loans, excluding FSD loans
(primarily low-rate) 51,050 49,758 47,327
Total interest-bearing deposits 33,440 31,834 30,417
Total noninterest-bearing
deposits 10,622 10,533 12,162
Total noninterest-bearing
deposits, excluding FSD 8,728 8,473 8,712
- The $13 million decrease in net interest income in the first quarter
2008, when compared to fourth quarter 2007, resulted primarily from a
reduction in the net interest margin and the impact of one less day ($5
million), partially offset by growth in securities and loans.
- The net interest margin of 3.22 percent declined 21 basis points, as
compared to fourth quarter 2007, reflecting the decreased contribution
of noninterest-bearing funds in a lower rate environment and earning
asset growth in excess of deposit growth, partially offset by deposit
rate reductions.
- Securities purchases consisted of AAA-rated mortgage-backed securities
issued by government sponsored enterprises (FNMA, FHLMC).
Noninterest Income
Noninterest income was $237 million for the first quarter 2008, compared to $230 million for the fourth quarter 2007 and $203 million for the first quarter 2007. Noninterest income in the first quarter 2008, compared to the fourth quarter 2007, included the $21 million gain on the sale of Visa shares (included in "net securities gains") and increased service charges on deposit accounts ($1 million) and investment banking fees ($4 million), partially offset by decreases in seasonally lower commercial lending fees ($6 million), net income (loss) from principal investing and warrants ($10 million) and deferred compensation asset returns ($7 million, offset by a decrease in deferred compensation plan costs in noninterest expenses).
Noninterest Expenses
Noninterest expenses were $403 million for the first quarter 2008, compared to $450 million for the fourth quarter 2007 and $407 million for the first quarter 2007. The $47 million decrease in noninterest expenses in the first quarter 2008, compared to the fourth quarter 2007, reflected a $16 million decrease in salaries expense and the reversal of the $13 million Visa loss sharing arrangement expense that was recorded in the fourth quarter 2007 (included in "litigation and operational losses"). The decrease in salaries expense was primarily due to additional cost deferrals from a refinement in application of Statement of Financial Accounting Standards No. 91 - Accounting for Loan Origination Fees and Costs (FAS 91) ($11 million), a decrease in deferred compensation plan costs ($7 million) and reduced headcount, partially offset by an increase of $8 million in share-based compensation, reflecting that portion of the annual award of restricted stock which is required to be expensed in the period granted. Certain categories of noninterest expenses are highlighted in the table below.
1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Salaries
Regular salaries $151 $163 $154
Severance 2 3 -
Incentives 32 36 27
Deferred compensation plan
costs (5) 2 2
Share-based compensation 20 12 23
Total salaries 200 216 206
Employee benefits 47 48 46
Customer services 6 7 14
Litigation and operational losses (8) 18 3
Provision for credit losses on
lending-related commitments 4 3 (2)
Tax-related Items
The provision for income taxes reflected a benefit of $5 million resulting from an after-tax adjustment to deferred tax assets in the first quarter 2008. Fourth quarter 2007 interest on tax liabilities (classified in the "provision for income taxes") reflected a $9 million reduction ($6 million after-tax) of interest resulting from a settlement with the Internal Revenue Service on asset depreciation.
Credit Quality
"California residential real estate developers, in particular, continued to struggle," said Babb. "The excess inventory, declining prices and extended time to sell have had a debilitating effect on the California housing market. We are aggressively addressing this situation as the market has continued to deteriorate."
- The allowance to loan ratio increased to 1.16 percent at March 31,
2008, from 1.10 percent at December 31, 2007.
- The provision for loan losses and loan quality reflected increased
challenges primarily in residential real estate development located in
both northern and southern California (Western market).
- Net loan charge-offs in the Commercial Real Estate business line in the
first quarter 2008 were $75 million, of which $58 million were from
residential real estate developers in the Western market. Comparable
numbers for the fourth quarter 2007 were $36 million in total, of which
$9 million were from residential real estate developers in the Western
market. Excluding the Western market, other Commercial Real Estate net
loan charge-offs in the first quarter 2008 totaled $17 million,
compared to $27 million in the fourth quarter 2007. In California, the
median sales price of existing single family homes declined almost 14
percent from the fourth quarter 2007 (30 percent from one year ago) and
single family home building permits (trailing 12 months) declined over
10 percent (33 percent from one year ago).
- Net loan charge-offs, excluding the Commercial Real Estate business
line, were $35 million in the first quarter 2008, or 31 basis points of
average non-Commercial Real Estate loans, compared to $27 million in
the fourth quarter 2007, or 25 basis points of average non-Commercial
Real Estate loans.
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net loan charge-offs $110 $63 $16
Net lending-related commitment
charge-offs - 1 3
Total net credit-related
charge-offs 110 64 19
Net loan charge-offs/Average
total loans 0.85 % 0.50 % 0.13 %
Net credit-related charge-
offs/Average total loans 0.85 0.50 0.16
Provision for loan losses $159 $108 $23
Provision for credit losses on
lending-related commitments 4 3 (2)
Total provision for credit
losses 163 111 21
Nonperforming assets (NPAs) 560 423 233
NPAs/Total loans and
foreclosed property 1.07 % 0.83 % 0.49 %
Allowance for loan losses $605 $557 $500
Allowance for credit losses on
lending-related commitments* 25 21 21
Total allowance for credit
losses 630 578 521
Allowance for loan
losses/Total loans 1.16 % 1.10 % 1.04 %
Allowance for loan
losses/Nonperforming loans 112 138 229
* Included in "Accrued expenses and other liabilities" on the
consolidated balance sheets.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $67.0 billion and $5.3 billion, respectively, at March 31, 2008, compared to $62.3 billion and $5.1 billion, respectively, at December 31, 2007. There were approximately 151 million shares outstanding at March 31, 2008, compared to 150 million shares outstanding at December 31, 2007. No shares were repurchased in the open market in the first quarter 2008.
Comerica's first quarter 2008 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 6.71 percent, 7.35 percent and 11.00 percent, respectively.
Full Year 2008 Outlook Compared to Full Year 2007 from Continuing Operations
- Mid single-digit average loan growth, excluding Financial Services
Division loans, with low single-digit growth in the Midwest market, mid
to high single-digit growth in the Western market and low double-digit
growth in the Texas market.
- Average earning asset growth in excess of average loan growth, with
securities averaging about $8 billion for the remainder of the year.
- Average Financial Services Division noninterest-bearing deposits of
$1.7 to $1.9 billion. Financial Services Division loans will fluctuate
in tandem with the level of noninterest-bearing deposits.
- Based on the federal funds rate declining to 1.75 percent by mid-year
2008, average full year net interest margin around 3.10 percent,
including the effects of higher levels of securities, lower value of
noninterest-bearing deposits and average loan growth exceeding average
deposit growth.
- Average net credit-related charge-offs of 75-80 basis points of average
loans. The provision for credit losses is expected to exceed net
charge-offs.
- Low single-digit growth in noninterest income.
- Low single-digit decline in noninterest expenses.
- Effective tax rate of about 28 percent.
- Maintain a Tier 1 common capital ratio within a target range of 6.50 to
7.50 percent.
Business Segments
Comerica's continuing operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. The Finance Division also is included as a segment. The financial results below are based on the internal business unit structure of Comerica and methodologies in effect at March 31, 2008, and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2008 results compared to fourth quarter 2007.
The following table presents net income (loss) by business segment.
(dollar amounts
in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Business Bank $62 51 % $93 83 % $146 70 %
Retail Bank 40 33 5 5 42 20
Wealth & Institutional
Management 20 16 13 12 21 10
122 100 % 111 100 % 209 100 %
Finance (3) (8) (12)
Other* (10) 16 (7)
Total $109 $119 $190
* Includes discontinued operations and items not directly
associated with the three major business segments or the
Finance Division.
Business Bank
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $329 $330 $337
Provision for loan losses 147 88 14
Noninterest income 74 80 61
Noninterest expenses 176 186 170
Net income 62 93 146
Net credit-related charge-offs 99 50 14
Selected average balances:
Assets 42,129 41,327 40,059
Loans 41,219 40,285 39,015
FSD loans 802 941 1,569
Deposits 15,878 15,931 16,711
FSD deposits 2,988 3,181 4,698
Net interest margin 3.20 % 3.25 % 3.50 %
- Average loans, excluding the Financial Services Division, increased
$1.1 billion, or 11 percent on an annualized basis, driven by growth in
Global Corporate, Middle Market, Energy and National Dealer Services.
- Average deposits, excluding the Financial Services Division, increased
$140 million, or 4 percent on an annualized basis, due to growth in
Middle Market, Global Corporate and Technology and Life Sciences,
partially offset by decreases in Commercial Real Estate and
International.
- The net interest margin of 3.20 percent decreased five basis points
primarily due to the impact from the Financial Services Division of
lower deposit balances and lower value of noninterest-bearing deposits
in a lower rate environment.
- The provision for loan losses increased $59 million primarily due to
continuing challenges in Commercial Real Estate (residential real
estate developers in the Western market), and changes in Middle Market,
including the effect of a benefit recognized in the fourth quarter 2007
in automotive supplier reserves and a single Florida Middle Market
customer default.
- Noninterest income decreased $6 million primarily due to a decrease in
principal investing and warrant income and lower commercial lending
fees, partially offset by an increase in investment banking fees.
- Noninterest expenses declined $10 million, primarily due to a decrease
in salaries expense related to the refinement in application of FAS 91
and a decline in customer service expenses.
Retail Bank
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $148 $161 $170
Provision for loan losses 17 26 5
Noninterest income 74 55 52
Noninterest expenses 143 182 153
Net income 40 5 42
Net credit-related charge-offs 10 14 5
Selected average balances:
Assets 7,144 6,998 6,840
Loans 6,276 6,229 6,095
Deposits 17,162 17,254 17,032
Net interest margin 3.47 % 3.69 % 4.04 %
- Average loans increased $47 million, or three percent on an annualized
basis, as a result of growth in Small Business.
- Average deposits decreased $92 million, primarily due to decreases in
noninterest-bearing deposits and time deposits, partially offset by an
increase in NOW accounts.
- The net interest margin of 3.47 percent decreased 22 basis points,
primarily due to a decline in deposit spreads resulting from changes in
the deposit mix.
- The provision for loan losses decreased $9 million, primarily in Small
Business Banking, including SBA loans, from the fourth quarter 2007.
- Noninterest income increased $19 million, primarily due to the
$21 million gain on Visa shares.
- Noninterest expenses decreased $39 million, primarily due to the first
quarter 2008 reversal of the $13 million Visa loss sharing arrangement
expense recorded in the fourth quarter 2007 and lower salaries expense
related to the refinement in application of FAS 91.
- Three new banking centers were opened in the first quarter 2008 in the
Western market.
Wealth and Institutional Management
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $36 $36 $37
Provision for loan losses - 1 (1)
Noninterest income 75 72 71
Noninterest expenses 79 86 76
Net income 20 13 21
Net credit-related charge-offs 1 - -
Selected average balances:
Assets 4,468 4,321 3,898
Loans 4,315 4,146 3,747
Deposits 2,637 2,552 2,317
Net interest margin 3.33 % 3.43 % 3.92 %
- Average loans increased $169 million, or 16 percent on an annualized
basis.
- Average deposits increased $85 million, or 13 percent on an annualized
basis.
- The net interest margin of 3.33 percent declined 10 basis points,
primarily due to a decline in deposit spreads resulting from changes in
the deposit mix.
- Noninterest income increased $3 million, partially due to an increase
in customer derivative income.
- Noninterest expenses decreased $7 million, partially due to decreases
in salaries and employee benefits and litigation and operational
losses.
Geographic Market Segments
Comerica also provides market segment results for four primary geographic markets: Midwest, Western, Texas and Florida. In addition to the four primary geographic markets, Other Markets and International are also reported as market segments. The financial results below are based on methodologies in effect at March 31, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2008 results compared to fourth quarter 2007.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Midwest $87 71 % $59 53 % $79 39 %
Western (10) (8) (2) (2) 73 35
Texas 20 16 14 13 23 11
Florida (4) (3) (1) (1) 3 1
Other Markets 19 15 30 27 22 10
International 10 9 11 10 9 4
122 100 % 111 100 % 209 100 %
Finance & Other
Businesses* (13) 8 (19)
Total $109 $119 $190
* Includes discontinued operations and items not directly
associated with the geographic markets.
Midwest
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $205 $212 $227
Provision for loan losses 20 21 27
Noninterest income 136 120 115
Noninterest expenses 186 218 194
Net income 87 59 79
Net credit-related charge-offs 28 37 21
Selected average balances:
Assets 19,656 19,228 19,180
Loans 19,030 18,601 18,614
Deposits 16,127 16,117 15,868
Net interest margin 4.30 % 4.50 % 4.93 %
- Average loans increased $429 million, or nine percent on an annualized
basis, primarily due to increases in the Global Corporate and National
Dealer Services.
- Average deposits increased $10 million, as increases in Global
Corporate and Personal Banking were offset by a decline in Small
Business Banking.
- The net interest margin of 4.30 percent declined 20 basis points,
primarily due to a decline in deposit spreads resulting from changes in
the deposit mix, partially offset by an increase in loan spreads.
- The provision for loan losses was relatively unchanged, with improved
Commercial Real Estate offset by changes in Middle Market, including
the effect of a benefit recognized in the fourth quarter 2007 in
automotive supplier reserves.
- Noninterest income increased $16 million, due to the $17 million gain
on Visa shares.
- Noninterest expenses decreased $32 million, primarily due to the first
quarter 2008 reversal of the $10 million Visa loss sharing arrangement
expense recorded in the fourth quarter 2007 and lower salaries expense
related to the refinement in application of FAS 91.
Western Market
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $172 $178 $188
Provision for loan losses 114 92 (12)
Noninterest income 33 35 27
Noninterest expenses 108 121 111
Net income (loss) (10) (2) 73
Net credit-related charge-offs 66 23 (5)
Selected average balances:
Assets 17,263 17,137 16,782
Loans 16,882 16,615 16,241
FSD loans 802 941 1,569
Deposits 12,848 13,012 13,696
FSD deposits 2,802 3,045 4,515
Net interest margin 4.07 % 4.24 % 4.69 %
- Excluding the Financial Services Division, average loans increased
$406 million, or 10 percent on an annualized basis, primarily due to
growth in the Middle Market, Global Corporate and Technology and Life
Sciences lines of business.
- Excluding the Financial Services Division, average deposits increased
$79 million, or three percent on an annualized basis, primarily due to
growth in Middle Market.
- The net interest margin of 4.07 percent declined 17 basis points due to
the impact from the Financial Services Division of lower deposit
balances and lower value of noninterest-bearing deposits in a lower
rate environment.
- The provision for loan losses increased $22 million, primarily due to
continuing challenges in Commercial Real Estate (residential real
estate developers).
- Noninterest income decreased $2 million, primarily due to a decrease in
principal investing and warrant income, partially offset by the $1
million gain on Visa shares.
- Noninterest expenses decreased $13 million, primarily due to a decrease
in salaries and benefits expense, in part resulting from the refinement
in application of FAS 91 and customer service expenses, and the first
quarter 2008 reversal of the $1 million Visa loss sharing arrangement
expense recorded in the fourth quarter 2007.
- Three new banking centers were opened in the first quarter 2008.
Texas Market
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $74 $74 $69
Provision for loan losses 8 7 -
Noninterest income 24 23 19
Noninterest expenses 58 67 53
Net income 20 14 23
Total net credit-related charge-offs 5 3 3
Selected average balances:
Assets 7,932 7,677 6,719
Loans 7,642 7,381 6,444
Deposits 4,005 3,935 3,843
Net interest margin 3.83 % 3.95 % 4.31 %
- Average loans increased $261 million, or 14 percent on an annualized
basis, primarily due to growth in Energy, Middle Market and Commercial
Real Estate.
- Excluding the Financial Services Division, average deposits increased
$19 million, or two percent on an annualized basis.
- The net interest margin of 3.83 percent decreased 12 basis points
primarily due to deposit spreads resulting from changes in the deposit
mix.
- Noninterest income increased $1 million, primarily due to the
$3 million gain on Visa shares.
- Noninterest expenses decreased $9 million, primarily due to the first
quarter 2008 reversal of the $2 million Visa loss sharing arrangement
expense recorded in the fourth quarter 2007 and a decrease in salaries
expense related to the refinement in application of FAS 91.
Florida Market
(dollar amounts in millions) 1st Qtr 4th Qtr 1st Qtr
'08 '07 '07
Net interest income (FTE) $11 $11 $11
Provision for loan losses 12 5 1
Noninterest income 5 4 4
Noninterest expenses 10 11 9
Net income (loss) (4) (1) 3
Net credit-related charge-offs 10 - -
Selected average balances:
Assets 1,891 1,732 1,646
Loans 1,877 1,719 1,626
Deposits 362 299 284
Net interest margin 2.55 % 2.67 % 2.80 %
- Average loans increased $158 million, primarily due to a transfer of
Florida loans previously serviced from the Texas market.
- Average deposits increased $63 million, primarily due to growth in
Private Banking.
- The provision for loan losses increased $7 million, primarily due to a
single Middle Market customer.
Conference Call and Webcast
Comerica will host a conference call to review first quarter 2008 financial results at 7 a.m. CDT on Thursday, April 17, 2008. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 39966204). The call and supplemental financial information can also be accessed on the Internet at http://www.comerica.com/ . A replay will be available approximately two hours following the conference call until May 1, 2008. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 39966204). A replay of the Webcast can also be accessed on the Internet via Comerica's "Investor Relations" page at http://www.comerica.com/ .
Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada, China and Mexico.
Forward-looking Statements
Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "outcome," "continue," "remain," "maintain," "trend," "objective" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in the pace of an economic recovery and related changes in employment levels, changes related to the headquarters relocation or to its underlying assumptions, the effects of war and other armed conflicts or acts of terrorism, the effects of natural disasters including, but not limited to, hurricanes, tornadoes, earthquakes and floods, the disruption of private or public utilities, the implementation of Comerica's strategies and business models, management's ability to maintain and expand customer relationships, changes in customer borrowing, repayment, investment and deposit practices, management's ability to retain key officers and employees, changes in the accounting treatment of any particular item, the impact of regulatory examinations, declines or other changes in the businesses or industries in which Comerica has a concentration of loans, including, but not limited to, the automotive production industry and the real estate business lines, the anticipated performance of any new banking centers, the entry of new competitors in Comerica's markets, changes in the level of fee income, changes in applicable laws and regulations, including those concerning taxes, banking, securities and insurance, changes in trade, monetary and fiscal policies, including the interest rate policies of the Board of Governors of the Federal Reserve System, fluctuations in inflation or interest rates, changes in general economic, political or industry conditions and related credit and market conditions, and adverse conditions in the stock market. Comerica cautions that the foregoing list of factors is not exclusive. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward- looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
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SOURCE: Comerica Incorporated
CONTACT: Media, Wayne J. Mielke, +1-214-462-4463, or Investors, Darlene
P. Persons, +1-313-222-2840, or Paul Jaremski, +1-214-969-6476, all of
Comerica Incorporated
Web site: http://www.comerica.com/
