Financial News

Comerica Reports Fourth Quarter and 2006 Earnings
Double-Digit Loan Growth in High-Growth Markets Credit Quality Remains Solid

DETROIT, Jan. 18 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported fourth quarter 2006 earnings of $299 million, or $1.87 per diluted share, compared to $200 million, or $1.23 per diluted share, for the third quarter 2006 and $207 million, or $1.25 per diluted share, for the fourth quarter 2005. Fourth quarter 2006 results included an after-tax gain of $108 million ($0.68 per diluted share) from the sale of Comerica's stake in Munder Capital Management (Munder), income of $47 million ($31 million after-tax, or $0.19 per diluted share) from the settlement of a Financial Services Division (FSD)-related lawsuit, and the net after-tax impact of a charge to tax and related interest reserves of $31 million, or $(0.19) per diluted share, discussed under "Tax-related items" below. Comerica reports Munder as a discontinued operation in all periods presented.

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    (dollar amounts in millions,
     except per share data)               4th Qtr     3rd Qtr     4th Qtr
                                            '06         '06         '05

    Net interest income                     $502        $502        $500
    Provision for loan losses                 22          15         (20)
    Noninterest income                       262         195         207
    Noninterest expenses                     457         399         469

    Net income                               299         200         207

    Diluted EPS from continuing
     operations                             1.16        1.20        1.04
    Diluted EPS from discontinued
     operations                             0.71        0.03        0.21
    Diluted EPS                             1.87        1.23        1.25

    Return on average common
     shareholders' equity                  22.63 %     15.38 %     16.28 %

    Net interest margin                     3.75        3.79        4.00

Net income for 2006 was $893 million, or $5.49 per diluted share, compared to $861 million, or $5.11 per diluted share, for 2005. Net income from continuing operations for 2006 was $782 million, or $4.81 per diluted share, compared to $816 million, or $4.84 per diluted share, for 2005. Return on average common shareholders' equity was 17.24 percent and return on average assets was 1.58 percent for 2006, compared to 16.90 percent and 1.64 percent, respectively, for 2005.

The following table illustrates certain items impacting diluted earnings per share from continuing operations:

                                                            Full     Full
    (dollar amounts per diluted share) 4th Qtr  3rd Qtr     Year     Year
                                         '06      '06       2006     2005

    FSD-related lawsuit settlement       $0.19     $-      $0.19     $-
    Loss on sale of Mexican bank
     charter                               -      (0.03)   (0.05)     -
    Tax adjustments                      (0.14)     -      (0.04)     -
    Tax-related interest adjustments     (0.05)     -      (0.13)     -
    Warrant accounting adjustments         -        -        -       0.06
    Performance-based compensation
     related to Munder gain              (0.04)     -      (0.04)     -
    Charitable Foundation contribution   (0.04)     -      (0.04)   (0.04)

"Our financial performance in 2006 is the result of the successful execution of our strategy, which focuses on exporting our expertise to high- growth markets, and building and enhancing customer relationships. We opened 25 new banking centers in 2006, the majority of which are located in California and Texas," said Ralph W. Babb Jr., chairman and chief executive officer. "Loan growth increased at a strong pace in our high-growth markets and credit quality remained solid. The loan and deposit environment continued to be competitive," added Babb.

    Fourth Quarter and Full Year 2006 Highlights

    Fourth Quarter 2006 Compared to Third Quarter 2006
    * On an annualized basis, excluding Financial Services Division loans,
      average loans increased five percent, led by growth of 10 percent in the
      Western market, 15 percent in the Texas market and 16 percent in the
      Florida market, with the Midwest & Other Markets down one percent.
    * The net interest margin was 3.75 percent in the fourth quarter 2006, a
      decrease of 4 basis points from 3.79 percent in the third quarter 2006.
    * Total revenue (net interest income + noninterest income) increased
      $67 million, or 10 percent.  Excluding income of $47 million from the
      settlement of a Financial Services Division-related lawsuit in the
      fourth quarter 2006, and excluding an incremental loss on the sale of
      the Mexican bank charter of $7 million in the third quarter 2006, total
      revenue increased $13 million, or two percent.
    * Net credit-related charge-offs were $23 million, or 19 basis points as a
      percent of average total loans for the fourth quarter 2006, compared to
      6 basis points for the third quarter 2006. In the fourth quarter, a
      decision was made to sell a $74 million portfolio of loans related to
      manufactured housing, located primarily in Michigan and Ohio. As a
      result, these loans were transferred to held for sale (classified as
      other short-term investments). A $9 million charge-off was made to
      reflect the estimated fair value of the loans.
    * Noninterest expenses, excluding the provision for credit losses on
      lending-related commitments, increased $57 million over the third
      quarter 2006, primarily due to increases in salaries expense of $29
      million,  (from higher incentives tied to performance, including the
      gain on the sale of Munder, contract labor costs associated with
      technology-related projects and increased severance), interest on tax
      liabilities of  $13 million and a contribution of $10 million to the
      Comerica Charitable Foundation in the fourth quarter 2006. There was $11
      million of incremental performance-based compensation related to the
      gain on the sale of Munder, $9 million of which was recorded in salaries
      expense. Employee levels from continuing operations (FTE) increased one
      percent from September 30, 2006, to December 31, 2006.
    * The provision for income taxes increased due to an adjustment to tax
      reserves of $22 million (discussed under "Tax-related items" below).
    * Open market share repurchases in the fourth quarter 2006 totaled 1.5
      million shares, or one percent of total shares outstanding at September
      30, 2006.

    Full Year 2006 Compared to Full Year 2005
    * Average loan growth, excluding Financial Services Division loans, was
      eight percent, with growth of 15 percent in the Western market, 19
      percent in the Texas market, 25 percent in the Florida market and one
      percent in Midwest & Other Markets.
    * The net interest margin was 3.79 percent in 2006, which was consistent
      with the 2006 outlook.
    * Total revenue increased $63 million, or two percent, and net interest
      income increased one percent.  Excluding income of $47 million from the
      settlement of a Financial Services Division-related lawsuit and the loss
      on the sale of the Mexican bank charter of $12 million in 2006, and a
      warrant accounting adjustment of $20 million in the third quarter of
      2005, total revenue increased $48 million, or two percent.
    * Net credit-related charge-offs as a percent of average total loans were
      15 basis points for 2006, down from 26 basis points in 2005.
    * The provision for loan losses was $37 million for 2006, compared to a
      negative $47 million for 2005. The provision for credit losses on
      lending-related commitments was $5 million for 2006, compared to $18
      million for 2005.
    * Noninterest expenses, excluding the provision for credit losses on
      lending-related commitments, increased $74 million largely due to
      increases in salaries and employee benefits expense of $43 million
      (primarily explained by merit increases, the adoption of SFAS 123( R )
      for share-based compensation and higher pension expenses) and interest
      on tax liabilities of $27 million, partially offset by a decrease in
      customer services expense in the Financial Services Division of $22
      million.  Also included in noninterest expenses was an increase of $15
      million related to new banking centers. Employee levels from continuing
      operations (FTE) increased less than one percent from the prior year-
      end.
    * The provision for income taxes increased a net of $6 million due to
      adjustments in the first and fourth quarters (discussed under "Tax-
      related items" below).
    * Open market share repurchases totaled 6.6 million shares.



    Net Interest Income and Net Interest Margin in Line with
     Full-Year 2006 Outlook

    (dollar amounts in millions)           4th Qtr     3rd Qtr     4th Qtr
                                             '06         '06         '05

    Net interest income                     $502        $502        $500

    Net interest margin                     3.75 %      3.79 %      4.00 %

    Selected average balances:
     Total earning assets                $53,289     $52,500     $49,764
     Total loans                          48,568      48,125      45,249
     Total loans, excluding FSD loans
      (primarily low-rate)                46,659      46,032      42,480

     Total interest-bearing deposits      30,554      29,133      26,320
     Total noninterest-bearing deposits   12,649      12,723      15,158
       FSD noninterest-bearing deposits    3,953       4,079       5,866


    * Net interest income in the fourth quarter 2006, when compared to the
      third quarter 2006, was relatively unchanged. The benefit of earning
      asset growth in the fourth quarter 2006 was offset by a small decline in
      noninterest-bearing deposits and funding loan growth with non-core
      deposits and purchased funds.
    * The fourth quarter 2006 net interest margin reflected competitive
      deposit pricing, a change in the interest bearing deposit mix toward
      higher-cost deposits, and loan growth in excess of deposit growth,
      partially offset by the positive impact of lower average Financial
      Services Division loans (primarily low-rate).

    Noninterest Income Reflects Positive Trends in Fee Income

Noninterest income was $262 million for the fourth quarter 2006, compared to $195 million for the third quarter 2006 and $207 million for the fourth quarter 2005. The $67 million increase in noninterest income in the fourth quarter 2006, compared to the third quarter 2006, reflected income of $47 million from the settlement of a Financial Services Division-related lawsuit in the fourth quarter 2006, positive trends in several categories (particularly in investment banking and commercial lending fees) and a $7 million incremental loss recognized on the sale of the Mexican bank charter in the third quarter 2006. Certain categories of noninterest income are highlighted in the table below.

    (in millions)                          4th Qtr    3rd Qtr    4th Qtr
                                             '06        '06        '05

    Warrant income (loss)                    $(1)       $(5)       $2
    Net loss on sales of businesses            -         (7)        -
    Income from lawsuit settlement            47          -         -
    Other noninterest income
       Investment banking fees                10          3         4


Noninterest Expenses Reflect Continued Investments and Include Unusual Items

Noninterest expenses were $457 million for the fourth quarter 2006, compared to $399 million for the third quarter 2006 and $469 million for the fourth quarter 2005. The $58 million increase in noninterest expenses in the fourth quarter 2006, compared to the third quarter 2006, reflected higher salaries expense of $29 million. The increase in salaries expense was due to incentives tied to performance, including the gain on the sale of Munder, contract labor costs associated with technology-related projects and increased severance. Also reflected in the increase in noninterest expenses was a charge of $14 million for interest on tax liabilities, discussed under "Tax- related items" below, and a Charitable Foundation contribution of $10 million. Net gains on the disposal of other real estate of $2 million in the fourth quarter 2006 and a decrease in employee benefits expense of $6 million, primarily due to decreased staff insurance expense, partially offset these increases.

    Certain categories of noninterest expenses are highlighted in the table
below.



    (in millions)                         4th Qtr     3rd Qtr     4th Qtr
                                            '06         '06         '05
    Salaries
       Regular salaries                    $162        $156        $151
       Severance                              5           1           3
       Incentives                            52          32          47
       Share-based compensation              12          13          11
         Total salaries                     231         202         212
    Employee benefits                        42          48          45
    Customer services                        14          11          19
    Provision for credit losses on
     lending-related commitments             (4)         (5)         25
    Other noninterest expenses
       Interest on tax liabilities           15           2           3
       Charitable Foundation
        contribution                         10           -          10
       Other real estate expense             (2)          1           9
       Redemption premium on trust
        preferred securities                  3           -           -


    Tax-related items

As previously disclosed in quarterly and annual SEC filings under the heading "Tax Contingency," the examination staff with the Internal Revenue Service (IRS) disallowed the benefits related to a series of loans to foreign borrowers. Comerica has had ongoing settlement discussions with the IRS related to the disallowance. Based on such discussions, Comerica recorded a charge to its combined tax and related interest reserves for the disallowed loan benefits of $31 million after-tax in the fourth quarter 2006. Of the total, $22 million was included in the provision for income taxes and $14 million ($9 million after-tax) was for tax-related interest included in other noninterest expenses. Other adjustments to tax-related items affected both the first and second quarter 2006. In the first quarter 2006, federal taxes decreased $16 million and interest on tax liabilities increased $23 million ($15 million after tax) due to an updated assessment of reserves on structured lease transactions and a series of loans to foreign borrowers, and final resolution of all other matters from tax years 1996-2000. The second quarter 2006 interest on tax liabilities was reduced by $6 million ($4 million after tax) due to settlement of various refund claims with the IRS.

Munder Sale Closes

On December 29, 2006, Comerica completed the sale of its stake in Munder to an investor group and recognized an initial after-tax gain from the sale of $108 million, reflected in "income from discontinued operations, net of tax" on the consolidated statements of income. Comerica reports Munder as a discontinued operation in all periods presented; therefore, the after-tax earnings of Munder, including the gain from its sale, are reported as a single item at the bottom of the income statement. The following table summarizes significant items affecting income from discontinued operations, net of tax:

     (in millions)                         4th Qtr    3rd Qtr   4th Qtr
                                             '06        '06       '05
     Income from discontinued
      operations, net of tax:
     Gain on sale of Munder                  $108        $-        $-
     Gain on sale of Framlington                -         -        32
     Operating net income                       6         5         4
        Total                                 114         5        36


    Credit Quality Remained Solid

"Credit quality continued to be solid, particularly in the Western and Texas markets," said Babb. "Credit quality in the Michigan market showed a slight deterioration in the fourth quarter. As the fourth quarter results demonstrate, we continue to manage our credit risk effectively, paying particular attention to our automotive and commercial real estate portfolios, which continue to perform well."

    * The provision for loan losses reflects the stress testing analysis of
      the automotive suppliers loan portfolio.
    * In the fourth quarter, a decision was made to sell a $74 million
      portfolio of loans related to manufactured housing, located primarily in
      Michigan and Ohio. As a result, these loans were transferred to held for
      sale (classified as other short-term investments). A $9 million charge-
      off was made to reflect the estimated fair value of the loans.
    * During the fourth quarter 2006, $66 million of loans greater than $2
      million were transferred to nonaccrual status, an increase of $27
      million from the third quarter 2006. While nonperforming assets
      increased by seven basis points of total loans compared to the third
      quarter 2006, the ratio remained at the low level of 49 basis points of
      total loans and other real estate.



    (dollar amounts in millions)      4th Qtr     3rd Qtr    4th Qtr
                                        '06         '06        '05

    Net loan charge-offs                $22          $3         $22
    Net lending-related
     commitment charge-offs               1           5           6
         Total net credit-related
          charge-offs                    23           8          28
    Net loan charge-offs/Average
     total loans                       0.18 %      0.02 %      0.20 %
    Net credit-related charge-
     offs/Average total loans          0.19        0.06        0.25

    Provision for loan losses           $22         $15        $(20)
    Provision for credit losses
     on lending-related commitments      (4)         (5)         25
         Total provision for
          credit losses                  18          10           5

    Nonperforming assets (NPAs)         232         197         162
    NPAs/Total loans & other real
     estate                            0.49 %      0.42 %      0.37 %

    Allowance for loan losses          $493        $493        $516
    Allowance for credit losses
     on lending-related commitments*     26          31          33
         Total allowance for
          credit losses                 519         524         549
    Allowance for loan
     losses/Total loans                1.04 %      1.06 %      1.19 %
    Allowance for loan
     losses/NPAs                        213         251         319

    * Included in "Accrued expenses and other liabilities" on the
      consolidated balance sheets


    Balance Sheet and Capital Management

Total assets and common shareholders' equity were $58.0 billion and $5.2 billion, respectively, at December 31, 2006, compared to $58.5 billion and $5.2 billion, respectively, at September 30, 2006. Shareholders' equity was reduced on December 31, 2006 by a $209 million after-tax charge associated with a new accounting standard (SFAS 158) on pension and post-retirement plan accounting. Based on the interim decision issued by the banking regulators, this charge was excluded from the calculation of regulatory capital ratios. There were approximately 158 million shares outstanding at December 31, 2006, compared to 159 million shares outstanding at September 30, 2006. Open market share repurchases for the current and prior quarter and full-year 2006 are shown in the following table:

                             4th Qtr '06      3rd Qtr '06   Full Year 2006
                           Number           Number          Number
                             of               of              of
    (in millions)          Shares  Amount   Shares  Amount  Shares  Amount

    Open market share
     repurchases             1.5    $ 86      3.7   $ 210     6.6   $ 383

Comerica's fourth quarter 2006 estimated tier 1 common, tier 1 and total risk-based capital ratios were 7.51 percent, 7.99 percent and 11.59 percent, respectively.

2007 Outlook

Comerica's outlook for full-year 2007, compared to full-year 2006 (as reclassified for FIN 48, explained below), is as follows:

    * High single-digit average loan growth, excluding Financial Services
      Division loans, with low single-digit growth in the Midwest market and
      low double-digit growth in the Western and Texas markets
    * Financial Services Division noninterest-bearing deposits declining about
      10 to 15 percent from the fourth quarter 2006 average of $4.0 billion.
      Financial Services Division loans of $1.9 billion in the fourth quarter
      2006 will fluctuate in 2007 with the level of noninterest-bearing
      deposits
    * Average full year net interest margin of about 3.75 percent
    * Average net credit-related charge-offs of about 20 basis points of
      average loans, with a provision for credit losses modestly exceeding net
      charge-offs
    * Low single-digit growth in noninterest income, excluding the Financial
      Services Division-related lawsuit settlement and the loss on sale of the
      Mexican bank charter in 2006
    * Low single-digit growth in noninterest expenses, excluding the provision
      for credit losses on lending-related commitments, basing the increase on
      noninterest expenses in the table below
    * Effective tax rate of about 32 percent
    * Active capital management within targeted capital ratios (tier 1 common
      of 6.50 percent to 7.50 percent and tier 1 of 7.25 percent to 8.25
      percent)

In the first quarter 2007, the Corporation will adopt the provisions of Financial Accounting Standards Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109" (FIN 48). FIN 48 permits the Corporation to elect a change in its accounting policy related to classification of interest on tax liabilities in the consolidated statements of income. Effective January 1, 2007, the Corporation will change its policy and classify interest on tax liabilities in the provision for income taxes and will reclassify all prior periods presented. Upon adoption, the Corporation's 2006 summarized statement of income from continuing operations will be as follows:

    Statement of Income Adjusted for
     Adoption of FIN 48                                  Year Ended
    (in millions)                                     December 31, 2006

    Net interest income                                     $1,983
    Provision for loan losses                                   37
    Noninterest income                                         855
    Noninterest expenses                                     1,636
    Income from continuing operations before income taxes    1,165
    Provision for income taxes                                 383
    Income from continuing operations                         $782


    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 the Corporation and methodologies in effect at December 31, 2006 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2006 results compared to third quarter 2006.

    The following table presents net income (loss) by business segment.



    (dollar amounts in
     millions)                4th Qtr '06   3rd Qtr '06   4th Qtr '05

     Business Bank            $157    82 %  $145    74 %  $136    81 %
     Retail Bank                25    13      36    18      29    18
     Wealth & Institutional
      Management                10     5      15     8       2     1
                               192   100 %   196   100 %   167   100 %
     Finance                    (5)           (5)           (4)
     Other*                    112             9            44
          Total               $299          $200          $207

     * Includes discontinued operations and items not directly associated
       with the three major business segments or the Finance Division



    Business Bank
    (dollar amounts in millions)           4th Qtr      3rd Qtr     4th Qtr
                                             '06          '06         '05

    Net interest income (FTE)               $335         $332        $337
    Provision for loan losses                 15           15         (31)
    Noninterest income                       116           55          71
    Noninterest expenses                     185          166         226
    Net income                               157          145         136

    Net credit-related charge-offs             6            2          21

    Selected average balances:
    Assets                                39,897       39,722      37,166
    Loans                                 38,766       38,473      35,849
       FSD loans                           1,909        2,093       2,769
    Deposits                              17,111       17,183      20,578
       FSD deposits                        5,291        5,544       8,479

    Net interest margin                     3.43  %      3.41 %      3.76 %


    * Average loans increased $293 million, or three percent on an annualized
      basis. Excluding the $184 million decline in Financial Services
      Division, average loans increased $477 million, or five percent on an
      annualized basis, primarily due to growth in the Middle Market, Global
      Corporate Banking, National Dealer Services and Technology and Life
      Sciences businesses.
    * Average deposits increased $181 million, excluding the $253 million
      decline in the Financial Services Division.
    * Net interest income increased $3 million, primarily due to an increase
      in loans.
    * The provision for loan losses reflects the stress testing analysis of
      the automotive suppliers loan portfolio.
    * Noninterest income increased $61 million, primarily due to income of $47
      million in the fourth quarter 2006 from the settlement of a Financial
      Services Division-related lawsuit, a $7 million increase in investment
      banking fees, and a $7 million incremental loss recognized on the sale
      of the Mexican bank charter in the third quarter 2006.
    * Noninterest expenses increased $19 million primarily due to increases in
      net corporate overhead expenses, incentive compensation and a slowing in
      credit improvements reflected in the provision for credit losses on
      lending-related commitments. The increase in net corporate overhead
      resulted primarily from increased tax-related interest and a charitable
      foundation contribution.



    Retail Bank
    (dollar amounts in millions)           4th Qtr      3rd Qtr     4th Qtr
                                             '06          '06         '05

    Net interest income (FTE)               $159         $160        $156
    Provision for loan losses                  6            6           8
    Noninterest income                        53           53          51
    Noninterest expenses                     169          153         154
    Net income                                25           36          29

    Net credit-related charge-offs            16            6           8

    Selected average balances:
    Assets                                 6,786        6,741       6,599
    Loans                                  6,073        6,037       5,891
    Deposits                              16,968       16,742      16,778

    Net interest margin                     3.71  %      3.80 %      3.75 %


    * The net interest margin of 3.71 percent decreased nine basis points,
      primarily due to a change in the deposit mix as customers moved from low
      cost deposits into higher cost deposits.
    * Average loans increased $36 million, or two percent on an annualized
      basis.
    * Average deposits increased $226 million, primarily due to an increase in
      customer certificates of deposit.
    * The net credit-related charge-offs were impacted by $9 million from the
      previously mentioned decision to sell the manufactured housing
      portfolio.
    * Noninterest expenses increased $16 million, primarily due to an increase
      in corporate overhead expenses for the same reasons noted in the
      Business Bank, as well as expenses related to salaries, advertising and
      new banking centers.
    * Opened 11 new banking centers in high-growth markets in the fourth
      quarter 2006 and 25 in 2006.



    Wealth and Institutional Management
    (dollar amounts in millions)          4th Qtr      3rd Qtr     4th Qtr
                                            '06          '06         '05

    Net interest income (FTE)               $36          $37         $39
    Provision for loan losses                 2            -           2
    Noninterest income                       67           64          63
    Noninterest expenses                     89           79          96
    Net income                               10           15           2

    Net credit-related charge-offs            1            -           1

    Selected average balances:
    Assets                                3,822        3,714       3,631
    Loans                                 3,673        3,577       3,470
    Deposits                              2,351        2,327       2,557

    Net interest margin                    3.90  %      4.13 %      4.46 %


    * The net interest margin of 3.90 percent declined 23 basis points,
      primarily due to declines in both loan and deposit spreads.
    * Average loans increased $96 million, or 11 percent on an annualized
      basis.
    * Average deposits increased $24 million.
    * The provision for loan losses increased $2 million, primarily due to a
      decline in the credit quality of a specific customer in the fourth
      quarter.
    * Noninterest expenses increased $10 million, partially due to an increase
      in net corporate overhead expenses for the same reasons noted in the
      Business Bank.

    Geographic Market Segments

Comerica also provides market segment results for four primary geographic markets: Midwest & Other Markets, Western, Texas and Florida. The financial results below are based on methodologies in effect at December 31, 2006 and are presented on a FTE basis. The accompanying narrative addresses fourth quarter 2006 results compared to third quarter 2006.

    The following table presents net income (loss) by market segment.



    (dollar amounts in
     millions)                4th Qtr '06   3rd Qtr '06   4th Qtr '05

    Midwest & Other Markets   $88    46 %  $111    57 %   $83    50  %
    Western                    84    43      56    29      64    38
    Texas                      17     9      22    11      18    11
    Florida                     3     2       7     3       2     1
                              192   100 %   196   100 %   167   100 %
    Finance & Other*          107             4            40
         Total               $299          $200          $207

    * Includes discontinued operations and items not directly associated with
      the four primary geographic markets



    Midwest and Other Markets
    (dollar amounts in millions)         4th Qtr      3rd Qtr     4th Qtr
                                           '06          '06         '05

    Net interest income (FTE)             $270         $274        $272
    Provision for loan losses               34           21         (16)
    Noninterest income                     137          126         129
    Noninterest expenses                   252          227         288
    Net income                              88          111          83

    Net credit-related charge-offs          23            5          27

    Selected average balances:
    Assets                              25,165       25,286      24,799
    Loans                               24,010       24,043      23,512
    Deposits                            18,159       18,243      18,833

    Net interest margin                   4.44  %      4.49 %      4.55 %


    * The net interest margin of 4.44 percent declined five basis points,
      primarily due to a decline in both loan and deposit spreads.
    * Average loans declined $33 million and average deposits declined $84
      million.
    * The provision for loan losses reflects the stress testing analysis of
      the automotive suppliers loan portfolio. The increase in charge-offs was
      partially due to the decision to sell the manufactured housing portfolio
      which resulted in a $9 million charge-off.
    * Noninterest income increased $11 million, primarily due to an increase
      in investment banking fees and an incremental loss of $7 million on the
      sale of the Mexican bank charter in the third quarter 2006.
    * Noninterest expenses increased $25 million, primarily due to an increase
      in net corporate overhead expenses for the same reasons noted in the
      Business Bank, incentive compensation, and a slowing in credit quality
      improvements reflected in the provision for credit losses on lending-
      related commitments.



    Western Market
    (dollar amounts in millions)         4th Qtr      3rd Qtr     4th Qtr
                                           '06          '06         '05

    Net interest income (FTE)             $179         $176        $188
    Provision for loan losses              (15)           4          (4)
    Noninterest income                      75           23          34
    Noninterest expenses                   122          108         124
    Net income                              84           56          64

    Net credit-related charge-offs          (2)           -           1

    Selected average balances:
    Assets                              16,699       16,557      15,646
    Loans                               16,156       16,000      14,963
    FSD loans                            1,909        2,093       2,769
    Deposits                            14,168       14,005      17,048
    FSD deposits                         5,130        5,408       8,438

    Net interest margin                   4.38  %      4.37 %      4.37 %


    * Average loans increased $156 million, or four percent on an annualized
      basis.  Excluding the Financial Services Division, average loans
      increased $340 million, or 10 percent on an annualized basis, primarily
      due to growth in the Commercial Real Estate, Technology and Life
      Sciences, Private Banking, and National Dealer Services businesses.
    * Average deposits increased $163 million. Excluding the Financial
      Services Division, average deposits increased $441 million, primarily
      due to growth in the Commercial Real Estate, Retail Bank, Technology and
      Life Sciences, Middle Market, and Global Corporate Banking businesses.
    * The provision for loan losses declined $19 million, primarily due to an
      improvement in credit quality trends.
    * Noninterest income increased $52 million, primarily due to income of $47
      million from the settlement of a Financial Services Division-related
      lawsuit in the fourth quarter 2006.
    * Noninterest expenses increased $14 million, primarily due to an increase
      in net corporate overhead expenses for the same reasons noted in the
      Business Bank, as well as expenses related to salaries, incentive
      compensation and new banking centers.



    Texas Market
    (dollar amounts in millions)         4th Qtr      3rd Qtr     4th Qtr
                                           '06          '06         '05

    Net interest income (FTE)              $69          $67         $62
    Provision for loan losses                3           (1)         (2)
    Noninterest income                      20           19          19
    Noninterest expenses                    59           54          55
    Net income                              17           22          18

    Total net credit-related charge-offs     2            3          (1)

    Selected average balances:
    Assets                               6,704        6,475       5,451
    Loans                                6,429        6,202       5,251
    Deposits                             3,811        3,691       3,718

    Net interest margin                   4.26  %      4.28 %      4.73 %


    * Average loans increased $227 million, or 15 percent on an annualized
      basis, primarily due to growth in the Commercial Real Estate, National
      Dealer Services, Small Business, and Energy Lending businesses.
    * Average deposits increased $120 million, primarily due to growth in
      customer certificates of deposit and increases in commercial
      noninterest-bearing deposit balances.
    * The provision for loan losses increased $4 million, from a negative
      provision in the prior quarter.
    * Non-interest expenses increased $5 million, primarily due to an increase
      in net corporate overhead expenses for the same reasons noted in the
      Business Bank, as well as expenses related to new banking centers.



    Florida Market
    (dollar amounts in millions)         4th Qtr      3rd Qtr     4th Qtr
                                           '06          '06         '05

    Net interest income (FTE)              $12          $12         $10
    Provision for loan losses                1           (3)          1
    Noninterest income                       4            4           3
    Noninterest expenses                    10            9           9
    Net income                               3            7           2

    Net credit-related charge-offs           -            -           3

    Selected average balances:
    Assets                               1,937        1,859       1,500
    Loans                                1,917        1,842       1,484
    Deposits                               292          313         314

    Net interest margin                   2.63  %      2.63 %      2.70 %


    * Average loans increased $75 million, or 16 percent on an annualized
      basis.
    * Average deposits decreased $21 million.
    * The provision for loan losses increased $4 million, from a negative
      provision in the prior quarter.

    Conference Call and Webcast

Comerica will host a conference call to review fourth quarter and full year 2006 financial results at 8 a.m. ET Thursday, January 18, 2007. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 4709098). The call and supplemental financial information can also be accessed on the Internet at www.comerica.com. A replay will be available approximately two hours following the conference call for a period of one year. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 4709098). A replay of the Webcast can also be accessed via Comerica's "Investor Relations" page at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Detroit, strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people to be successful. Comerica Bank locations can be found in Michigan, California, Texas, Florida and Arizona, with select businesses operating in several other states, Canada 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, 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, 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, automotive production, 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 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

SOURCE Comerica Incorporated

CONTACT:
Media, Wayne J. Mielke,
+1-313-222-4732;
or Investors, Darlene P. Persons,
+1-313-222-2840,
or Paul Jaremski,
+1-313-222-6317,
all of Comerica Incorporated
Web site: http://www.comerica.com

Press releases, archived webcasts/presentations/conference calls, and SEC filings speak only to the date they are issued, made or filed, respectively. Investors should not rely on such information as being unchanged in making investment decisions.

Press releases, archived webcasts/presentations/conference calls, and SEC filings speak only to the date they are issued, made or filed, respectively. Investors should not rely on such information as being unchanged in making investment decisions.
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