DALLAS, July 17, 2012 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2012 net income of $144 million, an increase of $14 million compared to $130 million for the first quarter 2012. Earnings per fully diluted share of 73 cents increased 7 cents, or 11 percent, compared to 66 cents for the first quarter 2012.
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(dollar amounts in millions, except per share data) 2nd Qtr '12 1st Qtr '12 2nd Qtr '11
-------------------------------------------------- ----------- ----------- -----------
Net interest income $435 $443 $391
Provision for credit losses 19 22 45
Noninterest income 211 206 202
Noninterest expenses 433 (a) 449 411 (a)
Provision for income taxes 50 48 41
Net income 144 130 96
Net income attributable to common shares 142 129 95
Diluted income per common share 0.73 0.66 0.53
Average diluted shares (in millions) 194 196 178
Tier 1 common capital ratio (c) 10.32% (b) 10.27% 10.53%
Tangible common equity ratio (c) 10.27 10.21 10.90
------------------------------- ----- ----- -----
(a) Included
restructuring
expenses of $8
million ($5
million, after
tax) and $5
million ($3
million, after
tax) in the
second quarter
2012 and 2011,
respectively,
associated
with the
acquisition of
Sterling
Bancshares,
Inc. on July
28, 2011.
(b) June 30, 2012 ratio is estimated.
(c) See Reconciliation of Non-GAAP
Financial Measures.
--- -------------------------------
"Our second quarter results reflect our focus on the bottom line in this slow growing national economy," said Ralph W. Babb Jr., chairman and chief executive officer. "Loans continued to grow, with average loans up $959 million, or 2 percent, compared to the first quarter, primarily reflecting an increase of $1.2 billion, or 5 percent, in commercial loans. This was the eighth consecutive quarter of average commercial loan growth, resulting in a 20 percent year-over-year increase, including our acquisition of Sterling Bancshares last July. The increase in average commercial loans in the second quarter was broad-based, primarily driven by increases in National Dealer Services, Global Corporate Banking, Middle Market Banking and Energy. As expected, this was partially offset by the continued decline in commercial real estate loans.
"Deposits continued to grow, credit quality remained solid, and we maintained our tight control of expenses.
"Our capital position remains a source of strength to support our future growth. We repurchased 2.9 million shares under our share repurchase program in the second quarter of 2012. In April, our Board of Directors increased the quarterly cash dividend 50 percent, to 15 cents per share. The combined share buyback and dividend returned 81 percent of second quarter net income to shareholders. We also have carefully reviewed the Basel III regulatory capital framework and believe that, on a fully phased-in pro forma basis, we are well above the proposed capital levels.
"Our consistent, conservative, relationship-focused approach to banking is making a positive difference for us and our customers."
Second Quarter 2012 Highlights Compared to First Quarter 2012
-- Net income of $144 million, or 73 cents per fully diluted share,
increased 11 percent compared to first quarter 2012.
-- Average total loans increased $959 million, or 2 percent, primarily
reflecting an increase of $1.2 billion, or 5 percent, in commercial
loans, partially offset by a decrease of $252 million, or 2 percent, in
commercial real estate loans (commercial mortgage and real estate
construction loans). The increase in commercial loans was broad-based,
primarily driven by increases in National Dealer Services, Global
Corporate Banking, Middle Market Banking and Energy.
-- Period-end total loans increased $980 million, or 2 percent, from March
31, 2012 to June 30, 2012, primarily reflecting an increase of $1.4
billion, or 5 percent, in commercial loans, partially offset by a $314
million, or 3 percent, decrease in commercial real estate loans. The
increase in period-end commercial loans was primarily driven by
increases in Mortgage Banker Finance, National Dealer Services, Global
Corporate Banking, Technology and Life Sciences, and Energy.
-- Average total deposits increased $368 million, or 1 percent, primarily
reflecting an increase of $491 million, or 2 percent, in
noninterest-bearing deposits.
-- Strong credit quality continued in the second quarter 2012. Nonaccrual
loans decreased $111 million, to $719 million at June 30, 2012. Net
credit-related charge-offs were stable at $45 million, or 0.42 percent
of average loans, in the second quarter 2012. The provision for credit
losses was $19 million in the second quarter 2012, compared to $22
million in the first quarter 2012.
-- Noninterest income increased to $211 million in the second quarter 2012,
compared to $206 million for the first quarter 2012. The $5 million
increase was primarily due to a $5 million annual incentive bonus
received in the second quarter 2012 from Comerica's third-party credit
card provider.
-- Noninterest expenses decreased $16 million to $433 million in the second
quarter 2012, compared to the first quarter 2012. The decrease primarily
reflected a $12 million decrease in salaries expense and smaller
decreases in several other categories of noninterest expenses, partially
offset by a $8 million increase in merger and restructuring charges
related to the Sterling acquisition.
-- Comerica repurchased 2.9 million shares of common stock under the share
repurchase program and increased the quarterly dividend by 50 percent,
to $0.15 per share, in the second quarter 2012.
Net Interest Income
(dollar amounts
in millions) 2nd Qtr '12 1st Qtr '12 2nd Qtr '11
--------------- ----------- ----------- -----------
Net interest
income $435 $443 $391
Net interest
margin 3.10% 3.19% 3.14%
Selected average
balances:
Total earning
assets $56,653 $56,186 $50,136
Total investment
securities 9,728 9,889 7,407
Total loans 43,228 42,269 39,174
Total deposits 48,679 48,311 41,480
Total
noninterest-
bearing deposits 20,128 19,637 15,786
----------------- ------ ------ ------
-- Net interest income of $435 million in the second quarter 2012 decreased
$8 million compared to the first quarter 2012.
-- Interest earned on loans decreased $3 million in the second quarter
2012. The benefit from an increase in average loans ($8 million) was
offset by a decrease in the accretion of the purchase discount on
the acquired Sterling loan portfolio ($7 million) and lower loan
yields ($4 million). The lower loan yields reflected a shift in the
average loan portfolio mix, largely due to the decrease in average
commercial real estate loans and the increase in lower yielding,
higher credit quality commercial loans. Accretion of the purchase
discount on the acquired Sterling loan portfolio was $18 million in
the second quarter 2012, compared to $25 million in the first
quarter 2012. For the remainder of 2012, $20 million to $25 million
of accretion is expected to be recognized.
-- Interest earned on investment securities available-for-sale
decreased $5 million, primarily as a result of accelerated premium
amortization ($3 million), as well as lower reinvestment yields and
a decrease in mortgage-backed investment securities ($2 million).
-- Average earning assets increased $467 million in the second quarter
2012, compared to the first quarter 2012, primarily reflecting increases
of $959 million in average loans, partially offset by decreases of $336
million in average Federal Reserve Bank deposits and $161 million in
average investment securities available-for-sale.
-- Average deposits increased $368 million in the second quarter 2012,
compared to the first quarter 2012, primarily due to a $491 million
increase in average noninterest-bearing deposits, partially offset by a
decrease in money market and interest-bearing checking accounts.
Noninterest Income
Noninterest income increased $5 million, to $211 million for the second quarter 2012. The increase primarily resulted from a $5 million annual incentive bonus received in the second quarter 2012 from Comerica's third party credit card provider, a $3 million increase in customer-driven fee income and a $3 million increase in net income from principal investing and warrants. Customer-driven fee income increased in the second quarter 2012, primarily due to a $5 million increase in customer derivative income, partially offset by a $3 million decrease in service charges on deposit accounts. Deferred compensation asset returns decreased $7 million in the second quarter 2012, compared to the first quarter 2012. The decrease in deferred compensation asset returns in noninterest income is offset by a decrease in deferred compensation plan expense in noninterest expenses.
Noninterest Expenses
Noninterest expenses totaled $433 million in the second quarter 2012, a decrease of $16 million compared to $449 million in the first quarter 2012. The decrease in noninterest expenses was primarily due to a decrease in salaries expense of $12 million, a $4 million decrease in other real estate expense, a $3 million decrease in litigation-related expense and smaller decreases in several other categories of noninterest expenses, partially offset by an increase in merger and restructuring charges of $8 million. The decrease in salaries expense primarily resulted from a $7 million decrease in deferred compensation plan expense and $5 million of stock grants expensed in the first quarter 2012. Restructuring charges of approximately $25 million to $30 million are expected to be incurred for the remainder of 2012.
Credit Quality
(dollar amounts in millions) 2nd Qtr '12 1st Qtr '12 2nd Qtr '11
--------------------------- ----------- ----------- -----------
Net credit-related charge-offs $45 $45 $90
Net credit-related charge-offs/
Average total loans 0.42% 0.43% 0.92%
Provision for loan losses $8 $23 $47
Provision for credit losses on
lending-related commitments 11 (1) (2)
--- --- ---
Total provision for credit losses 19 22 45
Nonperforming loans (a) 747 856 974
Nonperforming assets (NPAs) (a) 814 923 1,044
NPAs/Total loans and foreclosed
property 1.85% 2.14% 2.66%
Loans past due 90 days or more and
still accruing $43 $50 $64
Allowance for loan losses 667 704 806
Allowance for credit losses on
lending-related commitments (b) 36 25 30
--- --- ---
Total allowance for credit losses 703 729 836
Allowance for loan losses/Total
loans (c) 1.52% 1.64% 2.06%
Allowance for loan losses/
Nonperforming loans 89 82 83
-------------------------- --- --- ---
(a) Excludes loans acquired with credit
impairment.
(b) Included in "Accrued expenses and
other liabilities" on the
consolidated balance sheets.
(c) Reflects the impact of acquired
loans, which were initially
recorded at fair value, with no
related allowance for loan losses.
"Credit quality continued to be strong," said Babb. "Net credit-related charge-offs were stable at $45 million, or 42 basis points of total loans. The provision for credit losses decreased $3 million to $19 million. We believe we will continue to see the provision and net charge-offs at or near these levels for the remainder of the year."
-- Net credit-related charge-offs remained stable at $45 million in both
the second and first quarter of 2012.
-- The provision for credit losses was $19 million in the second quarter
2012, compared to $22 million in the first quarter 2012.
-- Internal watch list loans continued the downward trend, declining $371
million in the second quarter 2012, to $3.8 billion at June 30, 2012.
Nonperforming assets decreased $109 million to $814 million at June 30,
2012.
-- During the second quarter 2012, $47 million of borrower relationships
over $2 million were transferred to nonaccrual status, a decrease of $22
million from the first quarter 2012.
-- The allowance for loan losses to total loans ratio was 1.52 percent and
1.64 percent at June 30, 2012 and March 31, 2012, respectively.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $62.7 billion and $7.0 billion, respectively, at June 30, 2012, compared to $62.6 billion and 7.0 billion, respectively, at March 31, 2012. There were approximately 194 million common shares outstanding at June 30, 2012. Comerica repurchased $88 million of common stock (2.9 million shares) under the share repurchase program during the second quarter 2012. Combined with the increased dividend of $0.15 per share in the second quarter, share repurchases and dividends returned 81 percent of second quarter 2012 net income to shareholders.
In the second quarter 2012, U.S. banking regulators issued proposed rules for the U.S. adoption of the Basel III regulatory capital framework. The proposals narrow the definition of capital, increase the minimum levels of required capital, introduce capital buffers and increase the risk weights for various asset classes. On a fully-phased-in pro forma basis, Comerica is currently estimated to be well above the proposed capital levels.
Comerica's tangible common equity ratio was 10.27% at June 30, 2012, an increase of 6 basis points from March 31, 2012. The estimated Tier 1 common capital ratio increased 5 basis points, to 10.32% at June 30, 2012, from March 31, 2012.
Full-Year 2012 Outlook Compared to Full-Year 2011
For 2012, management expects the following, assuming a continuation of the current economic environment:
-- Average loans increasing 5 percent to 6 percent.
-- Net interest income increasing 3 percent to 5 percent.
-- Net credit-related charge-offs and provision for credit losses
declining.
-- Noninterest income increasing 1 percent to 2 percent.
-- Noninterest expenses increasing or decreasing 1 percent.
-- Effective tax rate of approximately 26 percent.
Business Segments
Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported 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, 2012 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2012 results compared to first quarter 2012.
The following table presents net income (loss) by business segment.
(dollar amounts in millions) 2nd Qtr '12 1st Qtr '12 2nd Qtr '11
--------------------------- ----------- ----------- -----------
Business Bank $210 84% $206 89% $176 95%
Retail Bank 19 8 14 6 (3) (2)
Wealth Management 20 8 11 5 12 7
----------------- --- --- --- --- --- ---
249 100% 231 100% 185 100%
Finance (95) (92) (86)
Other (a) (10) (9) (3)
-------- --- --- ---
Total $144 $130 $96
----- ---- ---- ---
(a) Includes items not directly
associated with the three
major business segments or
the Finance Division.
Business Bank
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $385 $379 $342
Provision for credit losses 12 2 2
Noninterest income 83 81 79
Noninterest expenses 151 158 162
Net income 210 206 176
Net credit-related charge-
offs 26 28 54
Selected average balances:
Assets 34,376 33,184 29,893
Loans 33,449 32,238 29,427
Deposits 24,145 23,997 20,396
-------- ------ ------ ------
-- Average loans increased $1.2 billion, primarily due to increases in
National Dealer Services, Global Corporate Banking, Middle Market and
Energy.
-- Average deposits increased $148 million, primarily due to increases in
Technology and Life Sciences and the Financial Services Division,
partially offset by declines in Global Corporate Banking and Middle
Market.
-- Net interest income increased $6 million, primarily due to higher
average loan balances, partially offset by a decrease in accretion on
the acquired Sterling loan portfolio.
-- The provision for credit losses increased $10 million, primarily
reflecting increases in Technology and Life Sciences and Middle Market,
partially offset by a decrease in National Dealer Services.
-- Noninterest expenses decreased $7 million, primarily due to a decrease
in net allocated corporate overhead expenses. The decrease in net
allocated corporate overhead expense primarily reflected decreases in
salaries and incentive expense in overhead departments and smaller
decreases in several other categories of overhead expense.
Retail Bank
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $161 $167 $141
Provision for credit losses 3 4 24
Noninterest income 47 42 46
Noninterest expenses 177 184 162
Net income (loss) 19 14 (3)
Net credit-related charge-
offs 9 12 22
Selected average balances:
Assets 5,946 6,173 5,454
Loans 5,250 5,462 4,999
Deposits 20,525 20,373 17,737
-------- ------ ------ ------
-- Average loans declined $212 million, primarily due to a decrease in
Small Business Banking.|
-- Average deposits increased $152 million, primarily due to an increase in
Personal Banking.
-- Net interest income decreased $6 million, primarily due to a decrease in
accretion on the acquired Sterling loan portfolio, a decrease in average
loan balances and lower loan yields.
-- Noninterest income increased $5 million, primarily due to a $5 million
annual incentive bonus received in the second quarter 2012 from
Comerica's third-party credit card provider.
-- Noninterest expenses decreased $7 million, primarily due to a decrease
in net allocated corporate overhead expenses, for the reasons previously
described in the Business Bank section.
Wealth Management
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $46 $47 $48
Provision for credit losses 2 15 14
Noninterest income 66 65 63
Noninterest expenses 79 80 76
Net income 20 11 12
Net credit-related charge-
offs 10 5 14
Selected average balances:
Assets 4,604 4,636 4,728
Loans 4,529 4,569 4,748
Deposits 3,640 3,611 2,978
-------- ----- ----- -----
-- Average loans decreased $40 million due to a decrease in Private
Banking. |
-- Average deposits increased $29 million, primarily due to an increase in
Private Banking, partially offset by a decrease in Trust.
-- The provision for credit losses decreased $13 million, primarily due to
a decrease in Private Banking in the Midwest market.
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, 2012 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2012 results compared to first quarter 2012.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) 2nd Qtr '12 1st Qtr '12 2nd Qtr '11
--------------------------- ----------- ----------- -----------
Midwest $75 31% $68 30% $62 34%
Western 69 27 65 28 50 27
Texas 51 20 49 21 33 18
Florida (5) (2) (1) - (5) (3)
Other Markets 47 19 38 16 30 16
International 12 5 12 5 15 8
------------- --- --- --- --- --- ---
249 100% 231 100% 185 100%
Finance & Other (a) (105) (101) (89)
------------------ ---- ---- ---
Total $144 $130 $96
----- ---- ---- ---
(a) Includes items not directly
associated with the
geographic markets.
Midwest Market
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $196 $198 $204
Provision for credit losses 1 11 15
Noninterest income 96 98 100
Noninterest expenses 177 182 183
Net income 75 68 62
Net credit-related charge-
offs 10 18 37
Selected average balances:
Assets 14,028 14,095 14,262
Loans 13,766 13,825 14,050
Deposits 19,227 19,415 18,318
-------- ------ ------ ------
-- Average loans decreased $59 million, primarily due to decreases in Small
Business Banking, Personal Banking and Middle Market, partially offset
by increases in Global Corporate Banking and National Dealer Services.
-- Average deposits decreased $188 million, primarily due to decreases in
Global Corporate Banking and the Financial Services Division, partially
offset by increases in Personal Banking and Middle Market.
-- The provision for credit losses decreased $10 million, primarily
reflecting a decrease in Private Banking.
-- Noninterest expenses decreased $5 million primarily due to lower net
allocated corporate overhead expenses, for the reasons previously
described in the Business Bank section.
Western Market
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $177 $171 $166
Provision for credit losses 1 (7) 16
Noninterest income 37 33 37
Noninterest expenses 104 107 112
Net income 69 65 50
Net credit-related charge-
offs 12 11 26
Selected average balances:
Assets 13,170 12,623 12,329
Loans 12,920 12,383 12,121
Deposits 14,371 13,897 12,458
-------- ------ ------ ------
-- Average loans increased $537 million, primarily due to increases in
National Dealer Services and Middle Market.
-- Average deposits increased $474 million, primarily due to increases in
Technology and Life Sciences and the Financial Services Division,
partially offset by a decrease in Middle Market.
-- Net interest income increased $6 million, primarily due to an increase
in average loan balances.
-- The provision for credit losses increased $8 million, primarily
reflecting increases in Middle Market and Technology and Life Sciences,
partially offset by a decrease in Small Business Banking.
-- Noninterest income increased $4 million, primarily due to an increase in
warrant income.
-- Noninterest expenses decreased $3 million, primarily due to a decrease
in net allocated corporate overhead expenses, for the reasons previously
described in the Business Bank section.
Texas Market
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $143 $151 $89
Provision for credit losses 7 14 (2)
Noninterest income 31 31 25
Noninterest expenses 88 92 63
Net income 51 49 33
Net credit-related charge-
offs 4 7 3
Selected average balances:
Assets 10,270 10,082 7,082
Loans 9,506 9,295 6,872
Deposits 10,185 10,229 6,176
-------- ------ ------ -----
-- Average loans increased $211 million, primarily due to increases in
Energy and Middle Market, partially offset by a decrease in Small
Business Banking.
-- Average deposits decreased $44 million, primarily reflecting a decrease
in Small Business Banking and Energy, partially offset by an increase in
Global Corporate Banking.
-- Net interest income decreased $8 million, primarily due to a decrease in
accretion on the acquired Sterling loan portfolio and lower loan yields,
partially offset by an increase in average loan balances.
-- The provision for credit losses decreased $7 million, primarily due to
decreases in Commercial Real Estate and Small Business Banking.
-- Noninterest expense decreased $4 million, primarily due to a decrease in
net allocated corporate overhead expenses, for the reasons previously
described in the Business Bank section.
Florida Market
(dollar amounts in millions) 2nd Qtr 1st Qtr 2nd Qtr
'12 '12 '11
--------------------------- -------- -------- --------
Net interest income (FTE) $11 $10 $12
Provision for credit losses 11 6 12
Noninterest income 4 4 4
Noninterest expenses 11 9 11
Net income (5) (1) (5)
Net credit-related charge-
offs 10 2 15
Selected average balances:
Assets 1,407 1,416 1,534
Loans 1,429 1,418 1,565
Deposits 446 424 396
-------- --- --- ---
-- Average loans increased $11 million, primarily due to increases in
National Dealer Services and Middle Market, partially offset by
decreases in Commercial Real Estate and Private Banking.
-- Average deposits increased $22 million, primarily due to increases in
Private Banking and the Financial Services Division.
-- The provision for credit losses increased $5 million, primarily due to
an increase in Middle Market.
Conference Call and Webcast
Comerica will host a conference call to review second quarter 2012 financial results at 7 a.m. CT Tuesday, July 17, 2012. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 90096639). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A telephone replay will be available approximately two hours following the conference call through July 31, 2012. The conference call replay can be accessed by calling (855) 859-2056 or (404) 537-3406 (event ID No. 90096639). 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 Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth 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 and Mexico.
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
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," "contemplates," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "on course," "trend," "objective," "looks forward" 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 general economic, political or industry conditions; changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; the acquisition of Sterling Bancshares, Inc., or any future acquisitions; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and business models, including the implementation of revenue enhancements and efficiency improvements; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2011. 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.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)
Comerica Incorporated and Subsidiaries
Three Months Ended Six Months Ended
------------------ ----------------
June 30, March 31, June 30, June 30,
(in millions, except per share data) 2012 2012 2011 2012 2011
----------------------------------- ---- ---- ---- ---- ----
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income $0.73 $0.66 $0.53 $1.39 $1.10
Cash dividends declared 0.15 0.10 0.10 0.25 0.20
Common shareholders' equity (at period end) 36.18 35.44 34.15
Tangible common equity (at period end) (a) 32.76 32.06 33.28
Average diluted shares (in thousands) 194,487 196,021 177,602 195,254 178,011
------------------------------------ ------- ------- ------- ------- -------
KEY RATIOS
Return on average common shareholders' equity 8.22% 7.50% 6.41% 7.86% 6.74%
Return on average assets 0.93 0.84 0.70 0.89 0.73
Tier 1 common capital ratio (a) (b) 10.32 10.27 10.53
Tier 1 risk-based capital ratio (b) 10.32 10.27 10.53
Total risk-based capital ratio (b) 13.82 13.99 14.80
Leverage ratio (b) 10.92 10.94 11.40
Tangible common equity ratio (a) 10.27 10.21 10.90
------------------------------- ----- ----- -----
AVERAGE BALANCES
Commercial loans $25,983 $24,736 $21,677 $25,359 $21,586
Real estate construction loans:
Commercial Real Estate business line (c) 1,035 1,056 1,486 1,046 1,619
Other business lines (d) 385 397 395 391 410
--- --- --- --- ---
Total real estate construction loans 1,420 1,453 1,881 1,437 2,029
Commercial mortgage loans:
Commercial Real Estate business line (c) 2,443 2,520 1,912 2,482 1,945
Other business lines (d) 7,540 7,682 7,724 7,611 7,768
----- ----- ----- ----- -----
Total commercial mortgage loans 9,983 10,202 9,636 10,093 9,713
Lease financing 869 897 958 883 972
International loans 1,265 1,205 1,254 1,235 1,237
Residential mortgage loans 1,487 1,519 1,525 1,503 1,562
Consumer loans 2,221 2,257 2,243 2,239 2,262
----- ----- ----- ----- -----
Total loans 43,228 42,269 39,174 42,749 39,361
Earning assets 56,653 56,186 50,136 56,419 49,473
Total assets 61,950 61,613 54,517 61,782 54,148
Noninterest-bearing deposits 20,128 19,637 15,786 19,882 15,623
Interest-bearing deposits 28,551 28,674 25,694 28,613 25,418
------ ------ ------ ------ ------
Total deposits 48,679 48,311 41,480 48,495 41,041
Common shareholders' equity 7,002 6,939 5,972 6,971 5,904
--------------------------- ----- ----- ----- ----- -----
NET INTEREST INCOME
Net interest income (fully taxable equivalent basis) $435 $444 $392 $879 $788
Fully taxable equivalent adjustment - 1 1 1 2
Net interest margin (fully taxable equivalent basis) 3.10% 3.19% 3.14% 3.14% 3.19%
--------------------------------------------------- ---- ---- ---- ---- ----
CREDIT QUALITY
Nonaccrual loans $719 $830 $941
Reduced-rate loans 28 26 33
--- --- ---
Total nonperforming loans (e) 747 856 974
Foreclosed property 67 67 70
--- --- ---
Total nonperforming assets (e) 814 923 1,044
Loans past due 90 days or more and still accruing 43 50 64
Gross loan charge-offs 64 62 125 $126 $248
Loan recoveries 19 17 35 36 57
--- --- --- --- ---
Net loan charge-offs 45 45 90 90 191
Allowance for loan losses 667 704 806
Allowance for credit losses on lending-related commitments 36 25 30
--- --- ---
Total allowance for credit losses 703 729 836
Allowance for loan losses as a percentage of total loans (f) 1.52% 1.64% 2.06%
Net loan charge-offs as a percentage of average total loans (g) 0.42 0.43 0.92 0.42% 0.97%
Nonperforming assets as a percentage of total loans and foreclosed property (e) 1.85 2.14 2.66
Allowance for loan losses as a percentage of total nonperforming loans 89 82 83
---------------------------------------------------------------------- --- --- ---
(a) See Reconciliation of Non-GAAP
Financial Measures.
(b) June 30, 2012 ratios are
estimated.
(c) Primarily loans to real estate
investors and developers.
(d) Primarily loans secured by owner-
occupied real estate.
(e) Excludes loans acquired with
credit-impairment.
(f) Reflects the impact of acquired
loans, which were initially
recorded at fair value with no
related allowance for loan
losses.
(g) Lending-related commitment
charge-offs were zero in all
periods presented.
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
June 30, March 31, December 31, June 30,
(in millions, except share data) 2012 2012 2011 2011
------------------------------- ---- ---- ---- ----
(unaudited) (unaudited) (unaudited)
ASSETS
Cash and due from banks $1,076 $984 $982 $987
Interest-bearing deposits with banks 3,065 2,976 2,574 2,479
Other short-term investments 170 180 149 124
Investment securities available-for-sale 9,940 10,061 10,104 7,537
Commercial loans 27,016 25,640 24,996 22,052
Real estate construction loans 1,377 1,442 1,533 1,728
Commercial mortgage loans 9,830 10,079 10,264 9,579
Lease financing 858 872 905 949
International loans 1,224 1,256 1,170 1,162
Residential mortgage loans 1,469 1,485 1,526 1,491
Consumer loans 2,218 2,238 2,285 2,232
-------------- ----- ----- ----- -----
Total loans 43,992 43,012 42,679 39,193
Less allowance for loan losses (667) (704) (726) (806)
------------------------------ ---- ---- ---- ----
Net loans 43,325 42,308 41,953 38,387
Premises and equipment 667 670 675 641
Accrued income and other assets 4,407 5,414 4,571 3,986
------------------------------- ----- ----- ----- -----
Total assets $62,650 $62,593 $61,008 $54,141
------------ ------- ------- ------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $21,330 $20,741 $19,764 $16,344
Money market and interest-bearing checking deposits 20,008 20,502 20,311 18,033
Savings deposits 1,629 1,586 1,524 1,462
Customer certificates of deposit 6,045 6,145 5,808 5,551
Foreign office time deposits 376 332 348 368
---------------------------- --- --- --- ---
Total interest-bearing deposits 28,058 28,565 27,991 25,414
------------------------------- ------ ------ ------ ------
Total deposits 49,388 49,306 47,755 41,758
Short-term borrowings 83 82 70 67
Accrued expenses and other liabilities 1,409 1,301 1,371 1,072
Medium- and long-term debt 4,742 4,919 4,944 5,206
-------------------------- ----- ----- ----- -----
Total liabilities 55,622 55,608 54,140 48,103
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares at 6/30/12, 3/31/12 and 12/31/11
and 203,878,110 shares at 6/30/11 1,141 1,141 1,141 1,019
Capital surplus 2,144 2,154 2,170 1,472
Accumulated other comprehensive loss (301) (326) (356) (308)
Retained earnings 5,744 5,630 5,546 5,395
Less cost of common stock in treasury - 33,889,392 shares at 6/30/12, 31,032,920 shares
at 3/31/12, 30,831,076 shares at 12/31/11 and 27,092,427 shares at 6/30/11 (1,700) (1,614) (1,633) (1,540)
-------------------------------------------------------------------------- ------ ------ ------ ------
Total shareholders' equity 7,028 6,985 6,868 6,038
-------------------------- ----- ----- ----- -----
Total liabilities and shareholders' equity $62,650 $62,593 $61,008 $54,141
------------------------------------------ ------- ------- ------- -------
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated
and Subsidiaries
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
(in millions, except
per share data) 2012 2011 2012 2011
-------------------- ---- ---- ---- ----
INTEREST INCOME
Interest and fees on
loans $408 $369 $819 $744
Interest on investment
securities 59 59 123 116
Interest on short-
term investments 3 3 6 5
------------------ --- --- --- ---
Total interest income 470 431 948 865
INTEREST EXPENSE
Interest on deposits 18 23 37 45
Interest on medium-
and long-term debt 17 17 33 34
------------------- --- --- --- ---
Total interest expense 35 40 70 79
---------------------- --- --- --- ---
Net interest income 435 391 878 786
Provision for credit
losses 19 45 41 91
-------------------- --- --- --- ---
Net interest income
after provision for
credit losses 416 346 837 695
NONINTEREST INCOME
Service charges on
deposit accounts 53 51 109 103
Fiduciary income 39 39 77 78
Commercial lending
fees 24 21 49 42
Letter of credit fees 18 18 35 36
Card fees 12 15 23 30
Foreign exchange
income 10 10 19 19
Bank-owned life
insurance 10 9 20 17
Brokerage fees 5 6 11 12
Net securities gains 6 4 11 6
Other noninterest
income 34 29 63 66
----------------- --- --- --- ---
Total noninterest
income 211 202 417 409
NONINTEREST EXPENSES
Salaries 189 185 390 373
Employee benefits 61 50 121 100
----------------- --- --- --- ---
Total salaries and
employee benefits 250 235 511 473
Net occupancy expense 40 38 81 78
Equipment expense 16 17 33 32
Outside processing fee
expense 26 25 52 49
Software expense 21 20 44 43
Merger and
restructuring charges 8 5 8 5
FDIC insurance expense 10 12 20 27
Advertising expense 7 7 14 14
Other real estate
expense - 6 4 14
Other noninterest
expenses 55 46 115 94
----------------- --- --- --- ---
Total noninterest
expenses 433 411 882 829
----------------- --- --- --- ---
Income before income
taxes 194 137 372 275
Provision for income
taxes 50 41 98 76
-------------------- --- --- --- ---
NET INCOME 144 96 274 199
Less income allocated
to participating
securities 2 1 3 2
--------------------- --- --- --- ---
Net income
attributable to
common shares $142 $95 $271 $197
---------------- ---- --- ---- ----
Earnings per common
share:
Basic $0.73 $0.54 $1.39 $1.12
Diluted 0.73 0.53 1.39 1.10
Comprehensive income 169 170 329 280
Cash dividends
declared on common
stock 29 18 49 35
Cash dividends
declared per common
share 0.15 0.10 0.25 0.20
-------------------- ---- ---- ---- ----
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
Second First Fourth Third Second Second Quarter 2012 Compared To:
Quarter Quarter Quarter Quarter Quarter First Quarter 2012 Second Quarter 2011
(in millions, except per share data) 2012 2012 2011 2011 2011 Amount Percent Amount Percent
----------------------------------- ---- ---- ---- ---- ---- ------ ------- ------ -------
INTEREST INCOME
Interest and fees on loans $408 $411 $415 $405 $369 $(3) (1)% $39 10%
Interest on investment securities 59 64 63 54 59 (5) (7) - 1
Interest on short-term investments 3 3 3 4 3 - (11) - 10
---------------------------------- --- --- --- --- --- --- --- --- ---
Total interest income 470 478 481 463 431 (8) (2) 39 9
INTEREST EXPENSE
Interest on deposits 18 19 21 24 23 (1) (5) (5) (21)
Interest on medium- and long-term debt 17 16 16 16 17 1 3 - (3)
-------------------------------------- --- --- --- --- --- --- --- --- ---
Total interest expense 35 35 37 40 40 - (1) (5) (13)
---------------------- --- --- --- --- --- --- --- --- ---
Net interest income 435 443 444 423 391 (8) (2) 44 11
Provision for credit losses 19 22 18 35 45 (3) (11) (26) (57)
--------------------------- --- --- --- --- --- --- --- --- ---
Net interest income after provision 416 421 426 388 346 (5) (2) 70 20
for credit losses
NONINTEREST INCOME
Service charges on deposit accounts 53 56 52 53 51 (3) (3) 2 6
Fiduciary income 39 38 36 37 39 1 3 - -
Commercial lending fees 24 25 23 22 21 (1) (3) 3 13
Letter of credit fees 18 17 18 19 18 1 1 - (5)
Card fees 12 11 11 17 15 1 4 (3) (26)
Foreign exchange income 10 9 10 11 10 1 2 - 1
Bank-owned life insurance 10 10 10 10 9 - 2 1 17
Brokerage fees 5 6 5 5 6 (1) (10) (1) (11)
Net securities gains (losses) 6 5 (4) 12 4 1 27 2 50
Other noninterest income 34 29 21 15 29 5 16 5 18
------------------------ --- --- --- --- --- --- --- --- ---
Total noninterest income 211 206 182 201 202 5 2 9 4
NONINTEREST EXPENSES
Salaries 189 201 205 192 185 (12) (6) 4 2
Employee benefits 61 60 52 53 50 1 2 11 21
----------------- --- --- --- --- --- --- --- --- ---
Total salaries and employee benefits 250 261 257 245 235 (11) (4) 15 6
Net occupancy expense 40 41 47 44 38 (1) (4) 2 2
Equipment expense 16 17 17 17 17 (1) (3) (1) -
Outside processing fee expense 26 26 27 25 25 - 2 1 6
Software expense 21 23 23 22 20 (2) (5) 1 4
Merger and restructuring charges 8 - 37 33 5 8 N/M 3 37
FDIC insurance expense 10 10 8 8 12 - (8) (2) (25)
Advertising expense 7 7 7 7 7 - - - -
Other real estate expense - 4 3 5 6 (4) (76) (6) (84)
Other noninterest expenses 55 60 53 57 46 (5) (10) 9 20
-------------------------- --- --- --- --- --- --- --- --- ---
Total noninterest expenses 433 449 479 463 411 (16) (4) 22 5
-------------------------- --- --- --- --- --- --- --- --- ---
Income before income taxes 194 178 129 126 137 16 9 57 42
Provision for income taxes 50 48 33 28 41 2 5 9 21
-------------------------- --- --- --- --- --- --- --- --- ---
NET INCOME 144 130 96 98 96 14 11 48 50
Less income allocated to participating securities 2 1 1 1 1 1 7 1 52
------------------------------------------------- --- --- --- --- --- --- --- --- ---
Net income attributable to common shares $142 $129 $95 $97 $95 $13 11% $47 50%
---------------------------------------- ---- ---- --- --- --- --- --- --- ---
Earnings per common share:
Basic $0.73 $0.66 $0.48 $0.51 $0.54 $0.07 11% $0.19 35%
Diluted 0.73 0.66 0.48 0.51 0.53 0.07 11 0.20 38
Comprehensive income (loss) 169 160 (30) 176 170 9 5 (1) (1)
Cash dividends declared on common stock 29 20 20 20 18 9 49 11 65
Cash dividends declared per common share 0.15 0.10 0.10 0.10 0.10 0.05 50 0.05 50
---------------------------------------- ---- ---- ---- ---- ---- ---- --- ---- ---
N/M - Not Meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)
Comerica Incorporated and Subsidiaries
2012 2011
---- ----
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
------------ ------- ------- ------- ------- -------
Balance at beginning of period $704 $726 $767 $806 $849
Loan charge-offs:
Commercial 26 25 28 33 66
Real estate construction:
Commercial Real Estate business line (a) 2 2 4 11 12
Other business lines (b) 1 - 1 - -
----------------------- --- --- --- --- ---
Total real estate construction 3 2 5 11 12
Commercial mortgage:
Commercial Real Estate business line (a) 16 13 17 12 8
Other business lines (b) 11 13 24 21 23
----------------------- --- --- --- --- ---
Total commercial mortgage 27 26 41 33 31
International - 2 2 - -
Residential mortgage 3 2 2 4 7
Consumer 5 5 7 9 9
-------- --- --- --- --- ---
Total loan charge-offs 64 62 85 90 125
Recoveries on loans previously charged-off:
Commercial 10 9 11 5 13
Real estate construction 1 1 4 3 5
Commercial mortgage 4 3 9 3 5
Lease financing - - - - 6
International - 1 - - 4
Residential mortgage - 1 - 1 1
Consumer 4 2 1 1 1
-------- --- --- --- --- ---
Total recoveries 19 17 25 13 35
---------------- --- --- --- --- ---
Net loan charge-offs 45 45 60 77 90
Provision for loan losses 8 23 19 38 47
------------------------- --- --- --- --- ---
Balance at end of period $667 $704 $726 $767 $806
------------------------ ---- ---- ---- ---- ----
Allowance for loan losses as a percentage of total loans (c) 1.52% 1.64% 1.70% 1.86% 2.06%
Net loan charge-offs as a percentage of average total loans 0.42 0.43 0.57 0.77 0.92
----------------------------------------------------------- ---- ---- ---- ---- ----
(a) Primarily
charge-
offs of
loans to
real estate
investors
and
developers.
(b) Primarily charge-offs of
loans secured by owner-
occupied real estate.
(c) Reflects the impact of
acquired loans, which were
initially recorded at fair
value with no related
allowance for loan losses.
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)
Comerica Incorporated and Subsidiaries
2012 2011
---- ----
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
------------ ------- ------- ------- ------- -------
Balance at beginning of period $25 $26 $27 $30 $32
Add: Provision for credit losses on lending-related commitments 11 (1) (1) (3) (2)
--------------------------------------------------------------- --- --- --- --- ---
Balance at end of period $36 $25 $26 $27 $30
------------------------ --- --- --- --- ---
Unfunded lending-related commitments sold $ - $ - $ - $ - $3
----------------------------------------- --- --- --- --- --- --- --- --- ---
NONPERFORMING ASSETS (unaudited)
Comerica Incorporated and Subsidiaries
2012 2011
---- ----
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
------------ ------- ------- ------- ------- -------
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial $175 $205 $237 $258 $261
Real estate construction:
Commercial Real Estate business line (a) 60 77 93 109 137
Other business lines (b) 9 8 8 3 2
----------------------- --- --- --- --- ---
Total real estate construction 69 85 101 112 139
Commercial mortgage:
Commercial Real Estate business line (a) 155 174 159 198 186
Other business lines (b) 220 275 268 275 269
----------------------- --- --- --- --- ---
Total commercial mortgage 375 449 427 473 455
Lease financing 4 4 5 5 6
International - 4 8 7 7
------------- --- --- --- --- ---
Total nonaccrual business loans 623 747 778 855 868
Retail loans:
Residential mortgage 76 69 71 65 60
Consumer:
Home equity 16 9 5 4 4
Other consumer 4 5 6 5 9
-------------- --- --- --- --- ---
Total consumer 20 14 11 9 13
-------------- --- --- --- --- ---
Total nonaccrual retail loans 96 83 82 74 73
----------------------------- --- --- --- --- ---
Total nonaccrual loans 719 830 860 929 941
Reduced-rate loans 28 26 27 29 33
------------------ --- --- --- --- ---
Total nonperforming loans (c) 747 856 887 958 974
Foreclosed property 67 67 94 87 70
------------------- --- --- --- --- ---
Total nonperforming assets (c) $814 $923 $981 $1,045 $1,044
----------------------------- ---- ---- ---- ------ ------
Nonperforming loans as a percentage of total loans 1.70% 1.99% 2.08% 2.32% 2.49%
Nonperforming assets as a percentage of total loans 1.85 2.14 2.29 2.53 2.66
and foreclosed property
Allowance for loan losses as a percentage of total 89 82 82 80 83
nonperforming loans
Loans past due 90 days or more and still accruing $43 $50 $58 $81 $64
------------------------------------------------- --- --- --- --- ---
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period $830 $860 $929 $941 $996
Loans transferred to nonaccrual (d) 47 69 99 130 150
Nonaccrual business loan gross charge-offs (e) (56) (55) (76) (76) (109)
Loans transferred to accrual status (d) (41) - - (15) -
Nonaccrual business loans sold (f) (16) (7) (19) (15) (16)
Payments/Other (g) (45) (37) (73) (36) (80)
------------------ --- --- --- --- ---
Nonaccrual loans at end of period $719 $830 $860 $929 $941
--------------------------------- ---- ---- ---- ---- ----
(a) Primarily loans to real estate investors and developers.
(b) Primarily loans secured by owner-occupied real estate.
(c) Excludes loans acquired with credit impairment.
(d) Based on an analysis of nonaccrual loans with book balances greater than $2 million.
(e) Analysis of gross loan charge-offs:
Nonaccrual business loans $56 $55 $76 $76 $109
Performing watch list loans - - - 1 -
Consumer and residential mortgage loans 8 7 9 13 16
--- --- --- --- ---
Total gross loan charge-offs $64 $62 $85 $90 $125
--- --- --- --- ----
(f) Analysis of loans sold:
Nonaccrual business loans $16 $7 $19 $15 $16
Performing watch list loans 7 11 - 16 6
--- --- --- --- ---
Total loans sold $23 $18 $19 $31 $22
--- --- --- --- ---
(g) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold.
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)
Comerica Incorporated and Subsidiaries
Six Months Ended
----------------
June 30, 2012 June 30, 2011
------------- -------------
Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate
--------------------------- ------- -------- ---- ------- -------- ----
Commercial loans $25,359 $446 3.54% $21,586 $397 3.70%
Real estate construction loans 1,437 32 4.54 2,029 36 3.62
Commercial mortgage loans 10,093 231 4.59 9,713 191 3.96
Lease financing 883 15 3.35 972 17 3.56
International loans 1,235 23 3.71 1,237 24 3.83
Residential mortgage loans 1,503 35 4.65 1,562 42 5.37
Consumer loans 2,239 38 3.43 2,262 39 3.42
-------------- ----- --- ---- ----- --- ----
Total loans (a) 42,749 820 3.86 39,361 746 3.82
Auction-rate securities available-for-sale 324 1 0.71 527 2 0.80
Other investment securities available-for-sale 9,484 122 2.64 6,832 114 3.39
---------------------------------------------- ----- --- ---- ----- --- ----
Total investment securities available-for-sale 9,808 123 2.57 7,359 116 3.19
Interest-bearing deposits with banks (b) 3,724 5 0.26 2,899 4 0.25
Other short-term investments 138 1 1.76 124 1 2.05
---------------------------- --- --- ---- --- --- ----
Total earning assets 56,419 949 3.39 49,743 867 3.51
Cash and due from banks 965 878
Allowance for loan losses (723) (883)
Accrued income and other assets 5,121 4,410
----- -----
Total assets $61,782 $54,148
------- -------
Money market and interest-bearing checking deposits $20,627 18 0.18 $18,003 23 0.26
Savings deposits 1,575 1 0.08 1,443 1 0.09
Customer certificates of deposit 6,042 17 0.55 5,559 20 0.73
Foreign office and other time deposits 369 1 0.61 413 1 0.50
-------------------------------------- --- --- ---- --- --- ----
Total interest-bearing deposits 28,613 37 0.26 25,418 45 0.36
Short-term borrowings 73 - 0.11 103 - 0.21
Medium- and long-term debt 4,897 33 1.37 5,974 34 1.15
-------------------------- ----- --- ---- ----- --- ----
Total interest-bearing sources 33,583 70 0.42 31,495 79 0.51
Noninterest-bearing deposits 19,882 15,623
Accrued expenses and other liabilities 1,346 1,126
Total shareholders' equity 6,971 5,904
----- -----
Total liabilities and shareholders' equity $61,782 $54,148
------- -------
Net interest income/rate spread (FTE) $879 2.97 $788 3.00
---- ----
FTE adjustment $1 $2
--- ---
Impact of net noninterest-bearing sources of funds 0.17 0.19
-------------------------------------------------- ---- ----
Net interest margin (as a percentage of average earning 3.14% 3.19%
assets) (FTE) (a) (b)
--------------------
(a) Accretion of the purchase
discount on the acquired loan
portfolio of $43 million
increased the net interest
margin by 15 basis points in
the six months ended June 30,
2012.
(b) Excess liquidity, represented by
average balances deposited with
the Federal Reserve Bank,
reduced the net interest margin
by 20 basis points and 18 basis
points in the six months ended
June 30, 2012 and 2011,
respectively.
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)
Comerica Incorporated and Subsidiaries
Three Months Ended
------------------
June 30, 2012 March 31, 2012 June 30, 2011
------------- -------------- -------------
Average Average Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate Balance Interest Rate
--------------------------- ------- -------- ---- ------- -------- ---- ------- -------- ----
Commercial loans $25,983 $227 3.52% $24,736 $219 3.56% $21,677 $196 3.65%
Real estate construction loans 1,420 15 4.50 1,453 17 4.58 1,881 17 3.75
Commercial mortgage loans 9,983 112 4.46 10,202 119 4.73 9,636 96 3.98
Lease financing 869 7 3.28 897 8 3.41 958 8 3.50
International loans 1,265 12 3.66 1,205 11 3.76 1,254 12 3.80
Residential mortgage loans 1,487 17 4.53 1,519 18 4.77 1,525 21 5.50
Consumer loans 2,221 18 3.37 2,257 20 3.49 2,243 20 3.42
-------------- ----- --- ---- ----- --- ---- ----- --- ----
Total loans (a) 43,228 408 3.79 42,269 412 3.92 39,174 370 3.79
Auction-rate securities available-for-sale 296 - 0.82 352 1 0.63 500 1 0.71
Other investment securities available-for-sale 9,432 59 2.55 9,537 63 2.73 6,907 58 3.40
---------------------------------------------- ----- --- ---- ----- --- ---- ----- --- ----
Total investment securities available-for-sale 9,728 59 2.49 9,889 64 2.65 7,407 59 3.20
Interest-bearing deposits with banks (b) 3,556 3 0.26 3,893 2 0.26 3,435 3 0.25
Other short-term investments 141 - 1.55 135 1 1.97 120 - 1.39
---------------------------- --- --- ---- --- --- ---- --- --- ----
Total earning assets 56,653 470 3.35 56,186 479 3.44 50,136 432 3.46
Cash and due from banks 931 999 872
Allowance for loan losses (710) (737) (859)
Accrued income and other assets 5,076 5,165 4,368
----- ----- -----
Total assets $61,950 $61,613 $54,517
------- ------- -------
Money market and interest-bearing checking deposits $20,458 8 0.18 $20,795 10 0.19 $18,207 11 0.26
Savings deposits 1,607 1 0.07 1,543 - 0.08 1,465 1 0.09
Customer certificates of deposit 6,107 9 0.53 5,978 8 0.57 5,609 10 0.70
Foreign office and other time deposits 379 - 0.64 358 1 0.57 413 1 0.52
-------------------------------------- --- --- ---- --- --- ---- --- --- ----
Total interest-bearing deposits 28,551 18 0.25 28,674 19 0.26 25,694 23 0.35
Short-term borrowings 68 - 0.12 78 - 0.11 112 - 0.14
Medium- and long-term debt 4,854 17 1.40 4,940 16 1.34 5,821 17 1.20
-------------------------- ----- --- ---- ----- --- ---- ----- --- ----
Total interest-bearing sources 33,473 35 0.42 33,692 35 0.42 31,627 40 0.51
Noninterest-bearing deposits 20,128 19,637 15,786
Accrued expenses and other liabilities 1,347 1,345 1,132
Total shareholders' equity 7,002 6,939 5,972
----- ----- -----
Total liabilities and shareholders' equity $61,950 $61,613 $54,517
------- ------- -------
Net interest income/rate spread (FTE) $435 2.93 $444 3.02 $392 2.95
---- ---- ----
FTE adjustment $ - $1 $1
--- --- --- ---
Impact of net noninterest-bearing sources of funds 0.17 0.17 0.19
-------------------------------------------------- ---- ---- ----
Net interest margin (as a percentage of average earning 3.10% 3.19% 3.14%
assets) (FTE) (a) (b)
--------------------
(a) Accretion of the purchase
discount on the acquired loan
portfolio of $18 million and
$25 million in the second and
first quarters of 2012,
respectively, increased the net
interest margin by 13 basis
points and 18 basis points in
the second and first quarters
of 2012, respectively.
(b) Excess liquidity, represented by
average balances deposited with
the Federal Reserve Bank,
reduced the net interest margin
by 18 basis points and by 21
basis points in the second and
first quarter of 2012,
respectively, and by 21 basis
points in the second quarter of
2011.
CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries
June 30, March 31, December 31, September 30, June 30,
(in millions, except per share data) 2012 2012 2011 2011 2011
----------------------------------- ---- ---- ---- ---- ----
Commercial loans:
Floor plan $2,406 $2,152 $1,822 $1,209 $1,478
Other 24,610 23,488 23,174 21,904 20,574
----- ------ ------ ------ ------ ------
Total commercial loans 27,016 25,640 24,996 23,113 22,052
Real estate construction loans:
Commercial Real Estate business line (a) 991 1,055 1,103 1,226 1,343
Other business lines (b) 386 387 430 422 385
----------------------- --- --- --- --- ---
Total real estate construction loans 1,377 1,442 1,533 1,648 1,728
Commercial mortgage loans:
Commercial Real Estate business line (a) 2,315 2,501 2,507 2,602 1,930
Other business lines (b) 7,515 7,578 7,757 7,937 7,649
----------------------- ----- ----- ----- ----- -----
Total commercial mortgage loans 9,830 10,079 10,264 10,539 9,579
Lease financing 858 872 905 927 949
International loans 1,224 1,256 1,170 1,046 1,162
Residential mortgage loans 1,469 1,485 1,526 1,643 1,491
Consumer loans:
Home equity 1,584 1,612 1,655 1,683 1,622
Other consumer 634 626 630 626 610
-------------- --- --- --- --- ---
Total consumer loans 2,218 2,238 2,285 2,309 2,232
-------------------- ----- ----- ----- ----- -----
Total loans $43,992 $43,012 $42,679 $41,225 $39,193
----------- ------- ------- ------- ------- -------
Goodwill $635 $635 $635 $635 $150
Core deposit intangible 25 27 29 32 -
Loan servicing rights 3 3 3 3 4
Tier 1 common capital ratio (c) (d) 10.32% 10.27% 10.37% 10.57% % 10.53%
Tier 1 risk-based capital ratio (d) 10.32 10.27 10.41 10.65 10.53
Total risk-based capital ratio (d) 13.82 13.99 14.25 14.84 14.80
Leverage ratio (d) 10.92 10.94 10.92 11.41 11.40
Tangible common equity ratio (c) 10.27 10.21 10.27 10.43 10.90
Common shareholders' equity per share of common stock $36.18 $35.44 $34.80 $34.94 $34.15
Tangible common equity per share of common stock (c) 32.76 32.06 31.42 31.57 33.28
Market value per share for the quarter:
High 32.88 34.00 27.37 35.79 39.00
Low 27.88 26.25 21.53 21.48 33.08
Close 30.71 32.36 25.80 22.97 34.57
Quarterly ratios:
Return on average common shareholders' equity 8.22% 7.50% 5.51% 5.91% 6.41%
Return on average assets 0.93 0.84 0.63 0.67 0.70
Efficiency ratio 67.53 69.70 75.97 75.59 69.65
Number of banking centers 493 495 494 502 446
Number of employees - full time equivalent 9,014 9,195 9,397 9,701 8,915
------------------------------------------ ----- ----- ----- ----- -----
Primarily
loans to
real estate
investors
and
(a) developers.
(b) Primarily loans secured by owner-
occupied real estate.
(c) See Reconciliation of Non-GAAP
Financial Measures.
(d) June 30, 2012 ratios are
estimated.
PARENT COMPANY ONLY BALANCE SHEETS (unaudited)
Comerica Incorporated
June 30, December 31, June 30,
(in millions, except share data) 2012 2011 2011
------------------------------- ---- ---- ----
ASSETS
Cash and due from subsidiary bank $2 $7 14
Short-term investments with subsidiary bank 442 411 413
Other short-term investments 86 90 90
Investment in subsidiaries, principally banks 7,130 7,011 6,122
Premises and equipment 4 4 3
Other assets 146 177 162
------------ --- --- ---
Total assets $7,810 $7,700 $6,804
------------ ------ ------ ------
LIABILITIES AND SHAREHOLDERS' EQUITY
Medium- and long-term debt $633 $666 $635
Other liabilities 149 166 131
----------------- --- --- ---
Total liabilities 782 832 766
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 228,164,824 shares at 6/30/12 and 12/31/11 and 203,878,110 shares at 6/30/11 1,141 1,141 1,019
Capital surplus 2,144 2,170 1,472
Accumulated other comprehensive loss (301) (356) (308)
Retained earnings 5,744 5,546 5,395
Less cost of common stock in treasury - 33,889,392 shares at 6/30/12, 30,831,076 shares at (1,700) (1,633) (1,540)
12/31/11, and 27,092,427 shares at 6/30/11
------------------------------------------
Total shareholders' equity 7,028 6,868 6,038
-------------------------- ----- ----- -----
Total liabilities and shareholders' equity $7,810 $7,700 $6,804
------------------------------------------ ------ ------ ------
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
Comerica Incorporated and Subsidiaries
Accumulated
Common Stock Other Total
------------
Shares Capital Comprehensive Retained Treasury Shareholders'
(in millions, except per share data) Outstanding Amount Surplus Loss Earnings Stock Equity
----------------------------------- ----------- ------ ------- ---- -------- ----- ------
BALANCE AT DECEMBER 31, 2010 176.5 $1,019 $1,481 $(389) $5,247 $(1,565) $5,793
Net income - - - - 199 - 199
Other comprehensive income, net of tax - - - 81 - - 81
Cash dividends declared on common stock ($0.20 per share) - - - - (35) - (35)
Purchase of common stock (0.5) - - - - (21) (21)
Net issuance of common stock under employee stock plans 0.8 - (30) - (16) 46 -
Share-based compensation - - 21 - - - 21
--- --- --- --- --- --- ---
BALANCE AT JUNE 30, 2011 176.8 $1,019 $1,472 $(308) $5,395 $(1,540) $6,038
------------------------ ----- ------ ------ ----- ------ ------- ------
BALANCE AT DECEMBER 31, 2011 197.3 $1,141 $2,170 $(356) $5,546 $(1,633) $6,868
Net income - - - - 274 - 274
Other comprehensive income, net of tax - - - 55 - - 55
Cash dividends declared on common stock ($0.25 per share) - - - - (49) - (49)
Purchase of common stock (4.1) - - - - (125) (125)
Net issuance of common stock under employee stock plans 1.1 - (49) - (27) 60 (16)
Share-based compensation - - 21 - - - 21
Other - - 2 - - (2) -
----- --- --- --- --- --- --- ---
BALANCE AT JUNE 30, 2012 194.3 $1,141 $2,144 $(301) $5,744 $(1,700) $7,028
------------------------ ----- ------ ------ ----- ------ ------- ------
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Business Retail Wealth
Three Months Ended June 30, 2012 Bank Bank Management Finance Other Total
-------------------------------- ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $385 $161 $46 $(166) $9 $435
Provision for credit losses 12 3 2 - 2 19
Noninterest income 83 47 66 17 (2) 211
Noninterest expenses 151 177 79 2 24 433
Provision (benefit) for income taxes (FTE) 95 9 11 (56) (9) 50
--- --- --- --- ---
Net income (loss) $210 $19 $20 $(95) $(10) $144
---- --- --- ---- ---- ----
Net credit-related charge-offs $26 $9 $10 - - $45
Selected average balances:
Assets $34,376 $5,946 $4,604 $11,953 $5,071 $61,950
Loans 33,449 5,250 4,529 - - 43,228
Deposits 24,145 20,525 3,640 177 192 48,679
Statistical data:
Return on average assets (a) 2.44% 0.35% 1.76% N/M N/M 0.93%
Efficiency ratio 32.30 85.17 73.98 N/M N/M 67.53
----- ----- ----- --- --- -----
Business Retail Wealth
Three Months Ended March 31, 2012 Bank Bank Management Finance Other Total
--------------------------------- ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $379 $167 $47 $(156) $7 $444
Provision for credit losses 2 4 15 - 1 22
Noninterest income 81 42 65 13 5 206
Noninterest expenses 158 184 80 3 24 449
Provision (benefit) for income taxes (FTE) 94 7 6 (54) (4) 49
--- --- --- --- ---
Net income (loss) $206 $14 $11 $(92) $(9) $130
---- --- --- ---- --- ----
Net credit-related charge-offs $28 $12 $5 - - $45
Selected average balances:
Assets $33,184 $6,173 $4,636 $12,095 $5,525 $61,613
Loans 32,238 5,462 4,569 - - 42,269
Deposits 23,997 20,373 3,611 161 169 48,311
Statistical data:
Return on average assets (a) 2.49% 0.27% 0.97% N/M N/M 0.84%
Efficiency ratio 34.41 87.86 75.11 N/M N/M 69.70
---------------- ----- ----- ----- --- --- -----
Business Retail Wealth
Three Months Ended June 30, 2011 Bank Bank Management Finance Other Total
-------------------------------- ---- ---- ---------- ------- ----- -----
Earnings summary:
Net interest income (expense) (FTE) $342 $141 $48 $(147) 8 $392
Provision for credit losses 2 24 14 - 5 45
Noninterest income 79 46 63 13 1 202
Noninterest expenses 162 162 76 3 8 411
Provision (benefit) for income taxes (FTE) 81 4 9 (51) (1) 42
--- --- --- --- --- ---
Net income (loss) $176 $(3) $12 $(86) $(3) $96
---- --- --- ---- --- ---
Net credit-related charge-offs $54 $22 $14 - - $90
Selected average balances:
Assets $29,893 $5,454 $4,728 $9,440 $5,002 $54,517
Loans 29,427 4,999 4,748 - - 39,174
Deposits 20,396 17,737 2,978 239 130 41,480
Statistical data:
Return on average assets (a) 2.35% (0.06)% 1.03% N/M N/M 0.70%
Efficiency ratio 38.27 86.63 71.58 N/M N/M 69.65
---------------- ----- ----- ----- --- --- -----
(a) Return on average assets is
calculated based on the
greater of average assets
or average liabilities and
attributed equity.
FTE - Fully Taxable Equivalent
N/M - Not Meaningful
MARKET SEGMENT FINANCIAL RESULTS (unaudited)
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Other Finance
Three Months Ended June 30, 2012 Midwest Western Texas Florida Markets International & Other Total
-------------------------------- ------- ------- ----- ------- ------- ------------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $196 $177 $143 $11 $46 $19 $(157) $435
Provision for credit losses 1 1 7 11 (4) 1 2 19
Noninterest income 96 37 31 4 19 9 15 211
Noninterest expenses 177 104 88 11 18 9 26 433
Provision (benefit) for income taxes (FTE) 39 40 28 (2) 4 6 (65) 50
--- --- --- --- --- --- --- ---
Net income (loss) $75 $69 $51 $(5) $47 $12 $(105) $144
--- --- --- --- --- --- ----- ----
Net credit-related charge-offs $10 $12 $4 $10 $9 - - $45
Selected average balances:
Assets $14,028 $13,170 $10,270 $1,407 $4,183 $1,868 $17,024 $61,950
Loans 13,766 12,920 9,506 1,429 3,837 1,770 - 43,228
Deposits 19,227 14,371 10,185 446 2,728 1,353 369 48,679
Statistical data:
Return on average assets (a) 1.48% 1.78% 1.78% (1.35)% 4.53% 2.54% N/M 0.93%
Efficiency ratio 60.51 48.44 50.96 77.45 30.43 29.78 N/M 67.53
---------------- ----- ----- ----- ----- ----- ----- --- -----
Other Finance
Three Months Ended March 31, 2012 Midwest Western Texas Florida Markets International & Other Total
--------------------------------- ------- ------- ----- ------- ------- ------------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $198 $171 $151 $10 $45 $18 $(149) $444
Provision for credit losses 11 (7) 14 6 (2) (1) 1 22
Noninterest income 98 33 31 4 14 8 18 206
Noninterest expenses 182 107 92 9 23 9 27 449
Provision (benefit) for income taxes (FTE) 35 39 27 - - 6 (58) 49
--- --- --- --- --- --- --- ---
Net income (loss) $68 $65 $49 $(1) $38 $12 $(101) $130
--- --- --- --- --- --- ----- ----
Net credit-related charge-offs $18 $11 $7 $2 $6 $1 - $45
Selected average balances:
Assets $14,095 $12,623 $10,082 $1,416 $4,021 $1,756 $17,620 $61,613
Loans 13,825 12,383 9,295 1,418 3,697 1,651 - 42,269
Deposits 19,415 13,897 10,229 424 2,628 1,388 330 48,311
Statistical data:
Return on average assets (a) 1.33% 1.75% 1.72% (0.21)% 3.77% 2.73% N/M 0.84%
Efficiency ratio 61.40 52.52 50.75 68.89 44.68 32.95 N/M 69.70
---------------- ----- ----- ----- ----- ----- ----- --- -----
Other Finance
Three Months Ended June 30, 2011 Midwest Western Texas Florida Markets International & Other Total
-------------------------------- ------- ------- ----- ------- ------- ------------- ------- -----
Earnings summary:
Net interest income (expense) (FTE) $204 $166 $89 $12 $41 $19 $(139) $392
Provision for credit losses 15 16 (2) 12 4 (5) 5 45
Noninterest income 100 37 25 4 13 9 14 202
Noninterest expenses 183 112 63 11 22 9 11 411
Provision (benefit) for income taxes (FTE) 44 25 20 (2) (2) 9 (52) 42
--- --- --- --- --- --- --- ---
Net income (loss) $62 $50 $33 $(5) $30 $15 $(89) $96
--- --- --- --- --- --- ---- ---
Net credit-related charge-offs $37 $26 $3 $15 $11 $(2) - $90
Selected average balances:
Assets $14,262 $12,329 $7,082 $1,534 $3,106 $1,762 $14,442 $54,517
Loans 14,050 12,121 6,872 1,565 2,829 1,737 - 39,174
Deposits 18,318 12,458 6,176 396 2,451 1,312 369 41,480
Statistical data:
Return on average assets (a) 1.28% 1.48% 1.84% (1.29)% 3.87% 3.33% N/M 0.70%
Efficiency ratio 60.17 54.85 55.69 72.67 42.74 33.69 N/M 69.65
---------------- ----- ----- ----- ----- ----- ----- --- -----
(a) Return on average assets is
calculated based on the
greater of average assets
or average liabilities and
attributed equity.
FTE - Fully Taxable Equivalent
N/M - Not Meaningful
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries
June 30, March 31, December 31, September 30, June 30,
(dollar amounts in millions) 2012 2012 2011 2011 2011
--------------------------- ---- ---- ---- ---- ----
Tier 1 Common Capital Ratio:
Tier 1 capital (a) (b) $6,676 $6,647 $6,582 $6,560 $6,193
Less:
Trust preferred securities - - 25 49 -
--- --- --- --- ---
Tier 1 common capital (b) $6,676 $6,647 $6,557 $6,511 $6,193
------------------------ ------ ------ ------ ------ ------
Risk-weighted assets (a) (b) $64,691 $64,742 $63,244 $61,593 $58,795
--------------------------- ------- ------- ------- ------- -------
Tier 1 risk-based capital ratio (b) 10.32% 10.27% 10.41% 10.65% 10.53%
Tier 1 common capital ratio (b) 10.32 10.27 10.37 10.57 10.53
------------------------------ ----- ----- ----- ----- -----
Tangible Common Equity Ratio:
Common shareholders' equity $7,028 $6,985 $6,868 $6,951 $6,038
Less:
Goodwill 635 635 635 635 150
Other intangible assets 28 30 32 35 4
--- --- --- --- ---
Tangible common equity $6,365 $6,320 $6,201 $6,281 $5,884
---------------------- ------ ------ ------ ------ ------
Total assets $62,650 $62,593 $61,008 $60,888 $54,141
Less:
Goodwill 635 635 635 635 150
Other intangible assets 28 30 32 35 4
--- --- --- --- ---
Tangible assets $61,987 $61,928 $60,341 $60,218 $53,987
--------------- ------- ------- ------- ------- -------
Common equity ratio 11.22% 11.16% 11.26% 11.42% 11.15%
Tangible common equity ratio 10.27 10.21 10.27 10.43 10.90
---------------------------- ----- ----- ----- ----- -----
Tangible Common Equity per Share of Common Stock:
Common shareholders' equity $7,028 $6,985 $6,868 $6,951 $6,038
Tangible common equity 6,365 6,320 6,201 6,281 5,884
---------------------- ----- ----- ----- ----- -----
Shares of common stock outstanding (in millions) 194 197 197 199 177
----------------------------------------------- --- --- --- --- ---
Common shareholders' equity per share of common stock $36.18 $35.44 $34.80 $34.94 $34.15
Tangible common equity per share of common stock 32.76 32.06 31.42 31.57 33.28
------------------------------------------------ ----- ----- ----- ----- -----
(a) Tier 1 capital and risk-
weighted assets as defined
by regulation.
(b) June 30, 2012 Tier 1
capital and risk-weighted
assets are estimated.
The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The tangible common equity removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets and tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock. Comerica believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.
SOURCE Comerica Incorporated
