DETROIT, July 18 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2007 income from continuing operations of $196 million, or $1.25 per diluted share, compared to $189 million, or $1.19 per diluted share, for the first quarter 2007 and $195 million, or $1.19 per diluted share, for the second quarter 2006.
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(dollar amounts in millions,
except per share data) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income $509 $502 $500
Provision for loan losses 36 23 27
Noninterest income 225 203 203
Noninterest expenses 411 407 389
Income from continuing operations,
net of tax 196 189 195
Net income 196 190 200
Diluted EPS from continuing
operations 1.25 1.19 1.19
Diluted EPS from discontinued
operations* - - 0.03
Diluted EPS 1.25 1.19 1.22
Return on average common
shareholders' equity from
continuing operations 15.41 % 14.83 % 15.15 %
Return on average common
shareholders' equity 15.41 14.86 15.50
Net interest margin 3.76 3.82 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.
Income from continuing operations for the first six months of 2007 was $385 million, or $2.44 per diluted share, compared to $402 million, or $2.45 per diluted share, for the first six months of 2006. The provision for loan losses was $59 million for the first six months of 2007, compared to zero for the same time period in 2006. Return on average common shareholders' equity from continuing operations was 15.12 percent for the first six months of 2007 and 15.73 percent for the same period in 2006.
The following table illustrates certain items impacting diluted earnings per share from continuing operations:
(dollar amounts per diluted 2nd Qtr 1st Qtr Year-to-date
share) '07 '07 2007 2006
Sale of Mexican bank charter $0.01 $- $0.01 $(0.02)
Net income (loss) from principal
investing and warrants 0.03 (0.02) 0.01 0.02
Federal tax adjustments - - - 0.10
Tax-related interest adjustments - - - (0.07)
Litigation-related insurance
settlement 0.03 - 0.03 -
Headquarters move-related costs (0.01) - (0.01) -
"Our second quarter financial results reflect the continued execution of our strategy," said Ralph W. Babb Jr., chairman and chief executive officer. "We had good loan growth, particularly in our high growth markets, and the second quarter net interest margin of 3.76 percent was in line with our full- year 2007 expectations. Expenses in the second quarter remained well controlled, even as we continued to ramp-up our banking center expansion program and relocate our corporate headquarters to Texas."
Second Quarter and Year-to-date 2007 Highlights
Second Quarter 2007 Compared to First Quarter 2007
-- On an annualized basis, excluding Financial Services Division (FSD)
loans, average loans increased seven percent, led by growth of 13
percent in the Western market, eight percent in the Texas market, six
percent in the Florida market and three percent in the Midwest market.
-- The net interest margin was 3.76 percent in the second quarter 2007, a
decrease of six basis points from 3.82 percent in the first quarter
2007, largely due to changes in the funding mix.
-- Net credit-related charge-offs were $30 million, or 24 basis points as
a percent of average total loans, for the second quarter 2007, compared
to $19 million, or 16 basis points as a percent of average total loans,
for the first quarter 2007, a modest increase from historically low
levels.
-- Noninterest income increased $22 million and reflected growth in
several areas. Refer to "Noninterest Income" below for more
information.
-- Noninterest expenses increased slightly, by $4 million, from the first
quarter 2007. Refer to "Noninterest Expenses" below for additional
details.
-- Open market share repurchases in the second quarter 2007 totaled 3.5
million shares, or two percent of total shares outstanding at March 31,
2007.
Year-to-date June 2007 Compared to Year-to-date June 2006
-- Excluding Financial Services Division loans, average loan growth was
eight percent, with 17 percent growth in the Texas market, 14 percent
in the Western market, 13 percent in the Florida market, and two
percent in the Midwest market.
-- The net interest margin was 3.79 percent, compared to 3.81 percent for
the same period in 2006.
-- Total revenue increased four percent, including seven percent growth in
noninterest income.
-- Net credit-related charge-offs were 20 basis points as a percent of
average total loans for the first six months of 2007, compared to 17
basis points for the same period in 2006, consistent with our full-year
outlook.
-- Noninterest expenses were unchanged from 2006 expenses, particularly
notable as expenses related to new banking centers were $10 million
higher than last year. Headcount was up only one percent, even with
the net addition of 24 banking centers in the last 12 months.
-- Open market share repurchases in the first six months of 2007 totaled
6.9 million shares, or four percent of total shares outstanding at
December 31, 2006.
Net Interest Income Boosted by Loan Growth
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income $509 $502 $500
Net interest margin 3.76 % 3.82 % 3.82 %
Selected average balances:
Total earning assets $54,304 $53,148 $52,371
Total loans 49,793 48,896 47,802
Total loans, excluding FSD loans
(primarily low-rate) 48,213 47,327 45,245
Total interest-bearing deposits 30,049 30,417 28,446
Total noninterest-bearing
deposits 11,633 12,162 13,575
Total noninterest-bearing
deposits, excluding FSD 8,356 8,712 8,782
-- The $7 million increase in net interest income in the second quarter
2007, when compared to first quarter 2007, resulted primarily from
earning asset growth and the impact of one more day in the second
quarter 2007 ($6 million).
-- The net interest margin of 3.76 percent declined six basis points,
reflecting stable loan yields and deposit rates offset by a change in
funding mix, largely attributable to a decline in non-interest bearing
deposits. Maturing interest rate swaps provided a three basis point
positive contribution to the margin.
Noninterest Income Reflects Positive Trends
Noninterest income was $225 million for the second quarter 2007, compared to $203 million for both the first quarter 2007 and the second quarter 2006. The $22 million increase in noninterest income in the second quarter 2007, compared to the first quarter 2007, reflected positive trends in several categories (including service charges on deposit accounts, card fees, commercial lending fees and foreign exchange income), and increases in net income (loss) from principal investing and warrants ($10 million) and deferred compensation asset returns ($5 million). Certain categories of noninterest income are highlighted in the table below.
(in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net income (loss) from principal
investing and warrants $6 $(4) $4
Net gain (loss) on sales of
businesses 2 1 -
Other noninterest income
Deferred compensation asset returns* 6 1 (1)
* Compensation deferred by Comerica officers is invested in stocks and
bonds to reflect the investment selections of the officers. Income
earned on these assets is reported in noninterest income and the
offsetting increase in the liability is reported in salaries expense.
Noninterest Expenses Remain Well Controlled
Noninterest expenses were $411 million for the second quarter 2007, compared to $407 million for the first quarter 2007 and $389 million for the second quarter 2006. The $4 million increase in noninterest expenses in the second quarter 2007, compared to the first quarter 2007, reflected increases in incentive compensation and pension expense, partially offset by decreases in share-based compensation expense, litigation and operational losses, and customer services expense. The increase in incentives reflected an increase in costs related to deferred compensation plans of $5 million and increased incentives primarily tied to peer-comparison performance of $8 million. The decrease in share-based compensation expense reflected the annual award of restricted stock to retirement-eligible employees granted in the first quarter, which must be expensed in the period granted. Litigation and operational losses reflected a litigation-related insurance settlement of $8 million in the second quarter 2007. Customer services expense varies from period to period as a result of changes in the level of noninterest-bearing deposits in the Corporation's Financial Services Division, the earnings credit allowance provided on these deposits and a competitive environment. In addition, noninterest expenses included approximately $2 million of costs related to the previously announced relocation of Comerica's headquarters to Dallas, Texas, reflected in salaries and other noninterest expenses.
Certain categories of noninterest expenses and the provision for income taxes are highlighted in the table below.
(in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Salaries
Regular salaries $157 $154 $153
Incentives 46 29 30
Share-based compensation 12 23 14
Total salaries 215 206 197
Employee benefits 50 46 44
Customer services 11 14 9
Litigation and operational
losses (9) 3 3
Provision for credit losses on
lending-related commitments (2) (2) 1
Other noninterest expenses
Interest on tax liabilities* n/a n/a (5)
Provision for income taxes
Interest on tax liabilities
(pretax)* $3 $1 n/a
* Effective with the adoption of FASB Interpretation No. 48, "Accounting
for Uncertainty in Income Taxes - an interpretation of FASB Statement
No. 109," Comerica changed its accounting policy and prospectively began
to classify interest on tax liabilities in the "provision for income
taxes." Prior to January 1, 2007, interest on tax liabilities was
classified in "other noninterest expenses."
n/a - not applicable
Credit Quality Remained Solid
"We continue to proactively manage our credit risk," said Babb. "Our strong credit culture, and the enhanced risk management tools and processes we have put in place, contributed to our solid credit quality in the second quarter. Net credit-related charge-offs remained relatively low, despite the continued weakness in the Michigan economy. Credit quality in the Western and Texas markets remained strong."
-- The provision for loan losses reflected challenges to industries
located in Michigan (Midwest market), including the automotive and
commercial real estate industries.
-- Nonperforming assets were 53 basis points of total loans and foreclosed
property for the second quarter 2007, and remained at low levels.
During the second quarter 2007, $107 million of loan relationships
greater than $2 million were transferred to nonaccrual status, an
increase of $38 million from the first quarter 2007. Of the transfers
to nonaccrual, $57 million were in the real estate industry, including
$36 million from the Midwest market and $21 million from the Western
market. By market, $69 million of the transfers to nonaccrual were from
the Midwest.
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net loan charge-offs $30 $16 $18
Net lending-related
commitment charge-offs - 3 1
Total net credit-related
charge-offs 30 19 19
Net loan charge-offs/Average
total loans 0.24 % 0.13 % 0.15 %
Net credit-related charge-
offs/Average total loans 0.24 0.16 0.16
Provision for loan losses $36 $23 $27
Provision for credit losses
on lending-related commitments (2) (2) 1
Total provision for
credit losses 34 21 28
Nonperforming assets (NPAs) 259 233 174
NPAs/Total loans and
foreclosed property 0.53 % 0.49 % 0.37 %
Allowance for loan losses $507 $500 $481
Allowance for credit losses
on lending-related commitments* 19 21 41
Total allowance for
credit losses 526 521 522
Allowance for loan
losses/Total loans 1.04 % 1.04 % 1.04 %
Allowance for loan losses/NPAs 195 214 278
*Included in "Accrued expenses and other liabilities" on the consolidated
balance sheets.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $58.6 billion and $5.0 billion, respectively, at June 30, 2007, compared to $57.5 billion and $5.1 billion, respectively, at March 31, 2007. There were approximately 153 million shares outstanding at June 30, 2007, compared to 156 million shares outstanding at March 31, 2007. Open market share repurchases for the current and prior quarter are shown in the following table:
2nd Qtr '07 1st Qtr '07
Number Number
(in millions) of Shares Amount of Shares Amount
Open market share repurchases 3.5 $217 3.4 $207
Comerica's second quarter 2007 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 7.19 percent, 7.87 percent and 11.71 percent, respectively.
Full-Year 2007 Outlook
Comerica's outlook for full-year 2007, compared to full-year 2006, is as follows:
-- Mid to high single-digit average loan growth, excluding Financial
Services Division loans, with flat growth in the Midwest market, and
low double-digit growth in the Western and Texas markets
-- Average earning asset growth slightly less than average loan growth
-- Average Financial Services Division noninterest-bearing deposits of
$3.2 billion. Financial Services Division loans will fluctuate in
tandem 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, from a 2006 adjusted
base of $820 million which excludes the Financial Services Division-
related lawsuit settlement and the loss on sale of the Mexican bank
charter
-- Flat noninterest expenses, excluding the provision for credit losses on
lending-related commitments, from a 2006 adjusted base of $1,669
million. Outlook reflects anticipated 2007 costs associated with the
previously announced headquarters move to Dallas, Texas (expected to be
about $10 million, with most of the remaining $8 million expected to be
incurred in the third quarter)
-- 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). Total open market share repurchases in 2007 expected to be
about nine million shares
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 June 30, 2007 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2007 results compared to first quarter 2007.
The following table presents net income (loss) by business segment.
(dollar amounts in
millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Business Bank $136 73 % $141 72 % $137 71 %
Retail Bank 35 19 33 17 39 20
Wealth & Institutional
Management 16 8 21 11 17 9
187 100 % 195 100 % 193 100 %
Finance - 1 (7)
Other* 9 (6) 14
Total $196 $190 $200
* Includes discontinued operations and items not directly associated with
the three major business segments or the Finance Division.
Business Bank
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $338 $329 $333
Provision for loan losses 32 14 21
Noninterest income 68 61 71
Noninterest expenses 176 170 182
Net income 136 141 137
Net credit-related charge-offs 24 15 12
Selected average balances:
Assets 40,848 40,059 39,367
Loans 39,824 39,015 38,175
FSD loans 1,580 1,569 2,557
Deposits 16,432 16,710 17,931
FSD deposits 4,505 4,698 6,557
Net interest margin 3.39 % 3.42 % 3.53 %
-- Average loans, excluding the Financial Services Division, increased
$798 million, or nine percent on an annualized basis, primarily due to
growth in the Middle Market, Global Corporate, Commercial Real Estate
and Technology and Life Sciences business lines.
-- Average deposits decreased $85 million, excluding the $193 million
decline in the Financial Services Division, primarily due to a decline
in the Middle Market business line, partially offset by growth in the
Technology and Life Sciences and Global Corporate business lines.
-- The net interest margin of 3.39 percent decreased three basis points,
primarily due to a decline in deposits.
-- The provision for loan losses increased $18 million, primarily due to
an increase in reserves for commercial real estate.
-- Noninterest income increased $7 million, primarily due to the absence
of a negative warrant fair value adjustment that affected the first
quarter 2007.
-- Noninterest expenses increased $6 million, primarily due to an increase
in salaries and employee benefits expense.
Retail Bank
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $160 $157 $162
Provision for loan losses 4 5 8
Noninterest income 57 52 54
Noninterest expenses 160 153 150
Net income 35 33 39
Net credit-related charge-offs 6 4 8
Selected average balances:
Assets 6,828 6,840 6,786
Loans 6,100 6,095 6,094
Deposits 17,191 17,033 16,770
Net interest margin 3.73 % 3.74 % 3.92 %
-- Average loans increased $5 million, as increases in small business
commercial loans were partially offset by a decline in consumer loans,
primarily in the Midwest market.
-- Average deposits increased $158 million, with growth in all deposit
categories.
-- The net interest margin of 3.73 percent decreased one basis point,
primarily due to a decline in loan spreads.
-- Noninterest income increased $5 million, primarily due to higher gains
on sales of student loans in the second quarter 2007, an increase in
service charges on deposit accounts and increased card fees.
-- Noninterest expenses increased $7 million, primarily due to the impact
of opening three new banking centers during the second quarter of 2007
and 12 new banking centers year-to-date.
Wealth and Institutional Management
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $36 $36 $37
Provision for loan losses 2 (1) (1)
Noninterest income 70 71 64
Noninterest expenses 79 76 76
Net income 16 21 17
Net credit-related charge-offs - - -
Selected average balances:
Assets 4,009 3,898 3,608
Loans 3,860 3,747 3,470
Deposits 2,295 2,317 2,463
Net interest margin 3.72 % 3.88 % 4.35 %
-- Average loans increased $113 million, or 12 percent on an annualized
basis.
-- Average deposits decreased $22 million, primarily due to decreased
noninterest-bearing accounts.
-- The net interest margin of 3.72 percent declined 16 basis points,
primarily due to declines in loan spreads, deposit spreads and average
deposit balances.
-- Noninterest expenses increased $3 million, primarily due to an increase
in severance.
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 June 30, 2007 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2007 results compared to first quarter 2007.
The following table presents net income (loss) by market segment.
(dollar amounts in
millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Midwest $87 47 % $90 45 % $96 50 %
Western 58 31 66 34 63 33
Texas 20 10 22 11 20 11
Florida 2 1 3 2 1 -
Other Markets 5 3 5 3 4 2
International 15 8 9 5 9 4
187 100 % 195 100 % 193 100 %
Finance & Other* 9 (5) 7
Total $196 $190 $200
* Includes discontinued operations and items not directly associated with
the geographic markets.
Midwest
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $248 $244 $251
Provision for loan losses 34 30 22
Noninterest income 122 116 120
Noninterest expenses 217 206 215
Net income 87 90 96
Net credit-related charge-offs 29 22 16
Selected average balances:
Assets 22,874 22,755 22,724
Loans 21,946 21,783 21,700
Deposits 16,477 16,657 16,674
Net interest margin 4.52 % 4.52 % 4.69 %
-- Average loans increased $163 million, or three percent on an annualized
basis, primarily due to growth in the Commercial Real Estate, Global
Corporate Banking, Middle Market Banking and Private Banking business
lines.
-- Average deposits decreased $180 million, primarily due to a decline in
the Global Corporate Banking business line.
-- The provision for loan losses increased $4 million, primarily due to
increased reserves for commercial real estate.
-- Noninterest income increased $6 million, primarily due to an increase
in service charges on deposit accounts and nominal warrant income in
the current period, compared to warrant losses in the first quarter.
-- Noninterest expenses increased $11 million, partially due to increases
in salaries and employee benefits expenses and outside processing fees.
Western Market
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $179 $176 $179
Provision for loan losses 5 (11) 2
Noninterest income 32 28 34
Noninterest expenses 113 110 110
Net income 58 66 63
Net credit-related charge-offs 4 (5) 3
Selected average balances:
Assets 17,257 16,782 16,515
Loans 16,715 16,241 15,955
FSD loans 1,580 1,569 2,557
Deposits 13,595 13,696 14,861
FSD deposits 4,310 4,515 6,449
Net interest margin 4.29 % 4.40 % 4.55 %
-- Excluding the Financial Services Division, average loans increased $463
million, or 13 percent on an annualized basis, primarily due to growth
in the Middle Market Banking, Technology and Life Sciences, Global
Corporate Banking, Private Banking and Commercial Real Estate business
lines.
-- Excluding the Financial Services Division, average deposits increased
$104 million, primarily due to growth in the Technology and Life
Sciences and Global Corporate Banking business lines.
-- The net interest margin declined 11 basis points, due to a net decrease
from the impact of the Financial Services Division (offset by lower
customer service expense in noninterest expenses) and a decline in loan
spreads.
-- The provision for loan losses increased $16 million primarily due to
stable credit quality in the second quarter compared to improving
credit quality in the first quarter 2007.
-- Noninterest income increased $4 million, primarily due to an increase
in income from the sale of SBA loans and a negative warrant fair value
adjustment in the first quarter 2007.
-- Noninterest expenses increased $3 million, primarily due to an increase
in salaries and employee benefit expenses.
-- Two new banking centers were opened in California in the second quarter
and five year-to-date.
Texas Market
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $69 $67 $64
Provision for loan losses 3 (1) (1)
Noninterest income 20 19 18
Noninterest expenses 56 54 53
Net income 20 22 20
Total net credit-related charge-
offs 1 3 2
Selected average balances:
Assets 6,844 6,719 6,055
Loans 6,570 6,444 5,796
Deposits 3,836 3,843 3,668
Net interest margin 4.22 % 4.19 % 4.51 %
-- Average loans increased $126 million, or eight percent on an annualized
basis, primarily due to growth in Small Business and Energy lending.
-- The net interest margin of 4.22 percent increased three basis points.
-- Noninterest expenses increased $2 million, primarily due to increased
salaries and benefits expenses.
-- Five new banking centers were opened year-to-date.
Florida Market
(dollar amounts in millions) 2nd Qtr '07 1st Qtr '07 2nd Qtr '06
Net interest income (FTE) $11 $11 $11
Provision for loan losses 2 1 5
Noninterest income 3 4 3
Noninterest expenses 9 9 8
Net income 2 3 1
Net credit-related charge-offs 1 - -
Selected average balances:
Assets 1,666 1,646 1,537
Loans 1,649 1,626 1,517
Deposits 290 284 313
Net interest margin 2.68 % 2.84 % 2.83 %
-- Average loans increased $23 million, or six percent on an annualized
basis.
-- Average deposits increased $6 million.
-- The net interest margin declined 16 basis points, primarily due to a
decline in loan spreads, deposit spreads and average deposit balances.
Conference Call and Webcast
Comerica will host a conference call to review second quarter 2007 financial results at 8 a.m. ET Wednesday, July 18, 2007. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 4363667). 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 until August 1, 2007. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 4363667). 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 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, 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, 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
