Financial News

Comerica Reports Second Quarter 2016 Financial Results
Launched Growth in Efficiency and Revenue Initiative
Actions Identified To-Date Expected to Drive an Additional $230 Million in Annual Pre-Tax Income by Year-End 2018
Related Estimated Total Pre-Tax Restructuring Charges of $140 Million to $160 Million
Net Income of $104 Million or 58 Cents Per Share
Includes After-Tax Impact of Restructuring Charge of $34 Million, or 19 Cents Per Share
Average Loan Growth of $1.1 Billion, or 2 Percent, Compared to First Quarter 2016
PR Newswire

DALLAS, July 19, 2016 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2016 net income of $104 million, compared to $60 million for the first quarter 2016 and $135 million for the second quarter 2015. Earnings per diluted share were 58 cents for second quarter 2016 compared to 34 cents for first quarter 2016 and 73 cents for second quarter 2015. Comerica also announced the implementation of its efficiency and revenue initiative ("GEAR Up"), which is expected to drive additional annual pre-tax income of approximately $230 million by year-end 2018 from the actions identified to-date. Second quarter results include after-tax restructuring charges of $34 million, or 19 cents per share, associated with the initial phase of this initiative.

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"Our second quarter results were solid with a $1.1 billion increase in average loans, improved credit quality in our energy portfolio as well as increases in most fee-based noninterest income categories," said Ralph W. Babb, Jr., chairman and chief executive officer. "Noninterest expenses were well controlled. Through share repurchases of $65 million and an increase in our dividend, we returned $103 million to shareholders in the second quarter 2016, compared to $79 million in the first quarter."

Growth in Efficiency and Revenue Initiative

"Based on our initial extensive review, we are announcing the actions we are taking through Gear Up that are expected to deliver additional annual pre-tax income of approximately $230 million by year-end 2018. This initiative fundamentally transforms the way we operate to drive further efficiency and revenue growth. We are confident the initiative will improve profitability, despite current market conditions and a tough banking environment," said Babb. "We expect our efficiency ratio to improve, declining to the low 60 percent range by the end of 2017, and at or below 60 percent by year-end 2018, without any increase in interest rates. The initial actions will take us a long way to achieving a double-digit return on equity and enhanced shareholder value. Management will continue to identify additional opportunities to further enhance profitability."

The initial GEAR Up initiative includes approximately $140 million in pre-tax benefits expected to be achieved by fiscal year-end 2017 and an anticipated annual run-rate benefit of approximately $230 million by year-end 2018.


    --  Revenue enhancements expected to be approximately $30 million by
        year-end 2017, which increase to approximately $70 million by year-end
        2018, through expanded product offerings, enhanced sales tools and
        training, re-aligned employee incentives and enhanced customer analytics
        to drive opportunities.
    --  Expense reductions targeted to be approximately $110 million, which
        increases to approximately $160 million by year-end 2018. This is to be
        achieved through an approximately 9 percent reduction in workforce,
        streamlining operational processes, real estate optimization including
        consolidating about 40 banking centers, selective outsourcing of
        technology functions and reduction of technology system applications.
    --  Pre-tax restructuring charges of $140 million to $160 million in total
        are expected to be incurred through 2018.
    --  For further information, see the accompanying Fact Sheet.



    (dollar amounts
     in millions,
     except per
     share data)                     2nd Qtr '16          1st Qtr '16   2nd Qtr '15
    ---------------                  -----------          -----------   -----------

    Net interest
     income                                       $445                                          $447              $421

    Provision for
     credit losses                          49                                   148                       47

    Noninterest
     income                                269                                   246                      258

    Noninterest
     expenses                              519            (a)                    460                      433 (b)
                                           ---            ---                    ---                      --- ---

    Pre-tax income                         146                                    85                      199

    Provision for
     income taxes                           42                                    25                       64
                                           ---                                   ---                      ---

    Net income                                    $104                                           $60              $135
                                                  ----                                           ---              ----


    Net income
     attributable
     to common
     shares                                       $103                                           $59              $134


    Diluted income
     per common
     share                                0.58                                  0.34                     0.73


    Average
     diluted
     shares (in
     millions)                             177                                   176                      182


    Common equity
     Tier 1
     capital ratio
     (c)                                10.48%                               10.58%                  10.40%

    Common equity
     ratio                               10.79                                 11.08                    10.76

    Tangible
     common equity
     ratio (d)                            9.98                                 10.23                     9.92
    --------------                        ----                                 -----                     ----

    (a)  Included restructuring charge of $53 million in the second quarter 2016.

    (b)  Included net release of litigation reserves of $30 million in the second quarter 2015.

    (c)  June 30, 2016 ratio is estimated.

    (d)  See Reconciliation of Non-GAAP Financial Measures.
    -------------------------------------------------------

Second Quarter 2016 Compared to First Quarter 2016

Average total loans increased $1.1 billion, or 2 percent, to $49.5 billion.

    --  Primarily reflected continued growth in Commercial Real Estate and
        seasonal increases in Mortgage Banker Finance and National Dealer
        Services; partially offset by an expected decline in Energy. The growth
        in Commercial Real Estate primarily reflected construction draws and
        term financing, mainly with existing customers who are proven developers
        on projects with favorable risk profiles.
    --  Period-end total loans increased $1.0 billion to $50.4 billion.

Average total deposits decreased $187 million to $56.5 billion.

    --  Driven by a $511 million decrease in interest-bearing deposits,
        partially offset by a $324 million increase in noninterest-bearing
        deposits.
    --  Average total deposits increased seasonally in the Retail Bank; this was
        more than offset by a seasonal decrease in Municipalities and purposeful
        pricing in Corporate Banking.
    --  Period-end deposits were unchanged at $56.4 billion.

Net interest income decreased $2 million to $445 million.

    --  Primarily the result of the impact of nonaccrual loans and higher
        funding costs, partially offset by the benefit from the increase in
        average loans.

The provision for credit losses decreased $99 million to $49 million.

    --  Net credit-related charge-offs were $47 million, or 0.38 percent of
        average loans, compared to $58 million, or 0.49 percent, in the first
        quarter 2016. Energy net credit-related charge-offs were $32 million
        compared to $42 million in the first quarter 2016.
    --  The allowance for loan losses increased $5 million to $729 million, or
        1.45 percent of total loans. The reserve allocation for Energy exceeded
        8 percent of loans in the Energy business line.

Noninterest income increased $23 million to $269 million.

    --  Noninterest income increased $13 million, or 5 percent, excluding a $10
        million increase in deferred compensation asset returns (offset by an
        increase in deferred compensation plan expense in noninterest expense).
    --  Fee-based income increased $11 million, primarily attributed to
        increases of $3 million each in card fees, fiduciary income and customer
        derivative income, as well as a $2 million increase in commercial
        lending fees. The increase in commercial lending fees resulted primarily
        from higher syndication agent fees.

Noninterest expenses increased $59 million to $519 million.

    --  Second quarter restructuring charges of $53 million related to the
        initiatives previously discussed included $46 million of
        severance-related expenses and $7 million of professional services and
        other charges.
    --  Excluding the $53 million restructuring charge, noninterest expenses
        increased $6 million, primarily including a $10 million increase in
        deferred compensation plan expense (offset by an increase in deferred
        compensation asset returns in noninterest income), partially offset by
        an $8 million gain from the sale of leased assets, as well as increases
        of $5 million in outside processing fees, $3 million in FDIC insurance
        premiums and $2 million in advertising expense.
    --  Salaries and benefits expense decreased $1 million, primarily reflecting
        seasonal decreases in share-based compensation and payroll taxes,
        partially offset by the $10 million increase in deferred compensation
        plan expense noted above, the impact of merit increases, a seasonal
        increase in 401(k) contributions and incentive compensation tied to
        revenue growth.

Capital position remained solid at June 30, 2016.

    --  Repurchased approximately 1.5 million shares of common stock under the
        equity repurchase program.
    --  Including dividends, returned a total of $103 million to shareholders.
    --  Dividend increased 5 percent to 22 cents per share.
    --  As announced on June 29, 2016, the Federal Reserve did not object to
        Comerica's 2016 capital plan which includes equity repurchases up to
        $440 million for the four-quarter period ending in the second quarter
        2017. The timing and ultimate amount of equity repurchases will be
        subject to various factors, including the Company's capital position,
        financial performance and market conditions, including interest rates.
        Restructuring charges associated with the GEAR Up initiative are not
        expected to impact the pace of repurchases. In addition, at its meeting
        on July 26, 2016, Comerica's board of directors will consider increasing
        the quarterly dividend to 23 cents per common share.

Second Quarter 2016 Compared to Second Quarter 2015

Average total loans increased $636 million, or 1 percent.

    --  Primarily reflected continued growth in Commercial Real Estate and
        National Dealer Services, partially offset by declines in Energy and
        general Middle Market.

Average total deposits decreased $877 million, or 2 percent.

    --  Primarily driven by decreases in Municipalities, Corporate Banking and
        the Financial Services Division.

Net interest income increased $24 million, or 6 percent.

    --  Primarily due to higher yields on loans and Federal Reserve Bank
        deposits, as well as earning asset growth; partially offset by an
        increase in funding costs.

The provision for credit losses increased $2 million, or 5 percent.

Noninterest income increased $11 million, or 4 percent.

    --  Excluding a $4 million increase in deferred compensation asset returns,
        noninterest income increased $7 million, or 3 percent. Fee-based income
        increased $6 million, primarily reflecting an $8 million increase in
        card fees, mostly due to increased revenue from merchant payment
        processing services and government card programs, and smaller increases
        in most other fee-based categories; partially offset by a decrease of $4
        million in investment banking fees.

Noninterest expense increased $86 million.

    --  Noninterest expense increased $3 million excluding the second quarter
        2016 restructuring charges of $53 million and the impact of a $30
        million net release of litigation reserves in second quarter 2015. The
        remaining increase primarily reflected increases of $6 million in
        software expense and $5 million in FDIC insurance premiums, partially
        offset by a decrease of $4 million in salaries and benefits and an $8
        million benefit from the sale of leased assets in the second quarter
        2016.
        --  Salaries and benefits expense primarily reflected decreases of $8
            million in pension expense and $4 million in share-based
            compensation, partially offset by a $4 million increase in deferred
            compensation plan expense (offset by an increase in deferred
            compensation asset returns in noninterest income) and an increase of
            $4 million in regular salaries, mostly due to the impact of merit
            raises.

    Net Interest Income
    -------------------


    (dollar amounts
     in millions)       2nd Qtr '16         1st Qtr '16        2nd Qtr '15
    ---------------     -----------         -----------        -----------

    Net interest
     income                            $445                                   $447            $421


    Net interest
     margin                   2.74%                     2.81%                      2.65%


    Selected average
     balances:

    Total earning
     assets                         $65,597                                $64,123         $63,981

    Total loans              49,469                     48,392                      48,833

    Total investment
     securities              12,334                     12,357                       9,936

    Federal Reserve
     Bank deposits            3,495                      3,071                       4,968



    Total deposits           56,521                     56,708                      57,398

    Total
     noninterest-
     bearing deposits        28,376                     28,052                      27,365

    Medium- and
     long-term debt           5,072                      3,093                       2,661
    ---------------           -----                      -----                       -----

Net interest income decreased $2 million to $445 million in the second quarter 2016, compared to the first quarter 2016.

    --  Interest on loans was unchanged, as the benefit from an increase in
        average loan balances (+$8 million) was offset by a decrease in yields.
        The decrease in loan yields primarily reflected lower nonaccrual
        interest recoveries in the second quarter 2016, the impact of a negative
        residual value adjustment to assets in the leasing portfolio and the
        full-quarter impact of loans transferred to nonaccrual in the first
        quarter 2016.
    --  Interest expense on debt increased $3 million, primarily due to higher
        funding costs from new Federal Home Loan Bank (FHLB) borrowings during
        the quarter.

The net interest margin of 2.74 percent decreased 7 basis points compared to the first quarter 2016, primarily due to the impact of increased FHLB borrowings (-2 basis points), lower loan yields (-4 basis points) and an increase in lower-yielding Federal Reserve Bank deposit balances (-1 basis point). The impact of lower loan yields included -3 basis points related to nonaccrual loans.

Credit Quality

"Energy loans continue to decline as expected, with a $356 million decrease since the end of the first quarter, as our customers continue to take the necessary actions to reduce their bank debt. We have completed 88 percent of the spring redeterminations for our E&P customers, and borrowing bases have come down about 22 percent on average. Criticized energy loans have declined $281 million to 57 percent of energy loans as of the end of the second quarter," said Babb. "While oil and gas prices have improved, we remain cautious and believe with our reserve allocation at over 8 percent of energy loans as of June 30, we are adequately reserved. Credit quality in the remainder of the portfolio remains strong."





    (dollar amounts in millions)                          2nd Qtr '16          1st Qtr '16            2nd Qtr '15
    ---------------------------                           -----------          -----------            -----------

    Credit-related charge-offs                                           $59                                   $83          $35

    Recoveries                                                     12                              25                    17
                                                                  ---                             ---                   ---

    Net credit-related charge-offs                                 47                              58                 18

    Net credit-related charge-offs/
     Average total loans                                        0.38%                          0.49%               0.15%


    Provision for credit losses                                          $49                                  $148          $47


    Nonperforming loans                                           613                             689                361

    Nonperforming assets (NPAs)                                   635                             714                370

    NPAs/Total loans and foreclosed
     property                                                   1.26%                          1.45%               0.74%


    Loans past due 90 days or more and
     still accruing                                                      $35                                   $13          $18


    Allowance for loan losses                                     729                             724                618

    Allowance for credit losses on
     lending-related commitments (a)                               43                              46                   50
                                                                  ---                             ---                ---

    Total allowance for credit losses                             772                             770                668


    Allowance for loan losses/Period-
     end total loans                                            1.45%                          1.47%               1.24%

    Allowance for loan losses/
     Nonperforming loans                                          119                             105                  171
    --------------------------                                    ---                             ---                ---

    (a)  Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.
    ---------------------------------------------------------------------------------------------
    --  Energy business line loans were $2.7 billion at June 30, 2016 compared
        to $3.1 billion at March 31, 2016.
        --  Criticized Energy loans decreased $281 million, to $1.6 billion,
            including a $77 million decrease in nonaccrual loans.
        --  Energy net charge-offs were $32 million, compared to $42 million in
            the first quarter 2016.
        --  The reserve allocation for loans in the Energy business line
            exceeded 8 percent at June 30, 2016, up slightly compared to March
            31, 2016.
    --  Net charge-offs decreased $11 million to $47 million, or 0.38 percent of
        average loans, in the second quarter 2016, compared to $58 million, or
        0.49 percent, in the first quarter 2016. Aside from Energy, net
        charge-offs were $15 million, or 13 basis points, for the remainder of
        the portfolio.
    --  During the second quarter 2016, $107 million of borrower relationships
        over $2 million were transferred to nonaccrual status, a decrease of
        $339 million compared to $446 million transferred during the first
        quarter. Second quarter 2016 transfers to nonaccrual included $51
        million from Energy, compared to $349 million in the first quarter.
    --  Criticized loans decreased $377 million to $3.6 billion at June 30,
        2016, compared to $3.9 billion at March 31, 2016, primarily as a result
        of the decrease in criticized Energy loans. Criticized loans are
        generally consistent with the Special Mention, Substandard and Doubtful
        categories defined by regulatory authorities.

Full-Year 2016 Outlook

Management expectations for full-year 2016 compared to full-year 2015, assuming a continuation of the current economic and low-rate environment, are as follows.

    --  Average loans modestly higher, in line with Gross Domestic Product
        growth, reflecting a continued decline in Energy more than offset by
        increases in most other lines of business. Seasonality in National
        Dealer Services, Mortgage Banker and Middle Market to impact the second
        half of the year.
    --  Net interest income higher, primarily reflecting the benefits from the
        December 2015 short-term rate increase, loan growth and a larger
        securities portfolio.
    --  Provision for credit losses higher, reflecting the first quarter 2016
        reserve build for Energy, with net charge-offs for the remainder of the
        year between 35 basis points and 45 basis points. Additional reserve
        changes dependent on developments in the oil and gas sector. Continued
        solid credit quality in the remainder of the portfolio, with metrics,
        absent Energy, better than historical norms.
    --  Noninterest income modestly higher, with continued focus on cross-sell
        opportunities, including card, fiduciary and brokerage services offset
        by lower market-driven fees, including commercial lending fees,
        investment banking fees, derivative income and warrant income. Benefits
        from GEAR Up expected to begin in early 2017.
    --  Noninterest expenses higher, with an estimated $90 million to $110
        million in restructuring expense, related GEAR Up expense savings of
        approximately $20 million, increased outside processing in line with
        growing revenue, higher FDIC insurance expense in part due to regulatory
        surcharge, and typical inflationary pressures. Additionally, 2015
        benefited from $33 million in legal reserve releases, which is offset by
        lower pension expense in 2016.
    --  Income tax expense to approximate 30 percent of pre-tax income.

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, 2016. The accompanying narrative addresses second quarter 2016 results compared to first quarter 2016.

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




    (dollar amounts
     in millions)     2nd Qtr '16      1st Qtr '16      2nd Qtr '15
    ---------------   -----------      -----------      -----------

    Business Bank                 $154              93%                      $94          74%                   $181 81%

    Retail Bank               (2)              (1)                  11         9               18           8

    Wealth Management          13                 8                   22        17               26          11
    -----------------         ---               ---                  ---       ---              ---         ---

                              165              100%                 127      100%             225        100%

    Finance                  (62)                             (66)                 (89)

    Other (a)                   1                               (1)                  (1)
    --------                  ---                               ---                   ---

         Total                    $104                                   $60                        $135
         -----                    ----                                   ---                        ----

    (a) Includes items not
     directly associated with the
     three major business segments
     or the Finance Division.


    Business Bank


     (dollar
     amounts
     in
     millions)                       2nd Qtr '16          1st Qtr '16   2nd Qtr '15
     ---------                       -----------          -----------   -----------

     Net
     interest
     income                                       $355                               $362        $373

     Provision
     for
     credit
     losses                                 46                                   151          61

     Noninterest
     income                                142                                   135         138

     Noninterest
     expenses                              222            (a)                    207         175

     Net
     income                                154                                    94         181


     Net
     credit-
     related
     charge-
     offs                                   42                                    57          23


    Selected
     average
     balances:

    Assets                              39,617                                38,635      39,134

    Loans                               38,574                                37,561      38,109

    Deposits                            28,429                                29,108      30,229
    --------                            ------                                ------      ------

    (a)  Included restructuring charge of $26 million in the second quarter 2016.
    --  Average loans increased $1.0 billion, primarily reflecting increases in
        Commercial Real Estate, Mortgage Banker Finance and National Dealer
        Services, partially offset by a decrease in Energy.
    --  Average deposits decreased $679 million, primarily reflecting decreases
        in Municipalities and Corporate Banking, partially offset by an increase
        in Mortgage Banker Finance.
    --  Net interest income decreased $7 million, primarily reflecting the
        impact of an increase in net funds transfer pricing (FTP) charges and
        lower loan yields, largely due to the impact of nonaccrual loans and a
        negative residual value adjustment to assets in the leasing portfolio,
        partially offset by the benefit from the increase in average loans. The
        increase in net FTP charges primarily reflected an increase in the cost
        of funds as well as lower funding credits due to the decrease in average
        deposits.
    --  The provision for credit losses decreased $105 million, primarily
        reflecting a decrease in Energy, partially offset by increases in
        Commercial Real Estate, National Dealer Services, and Technology and
        Life Sciences.
    --  Noninterest income increased $7 million, primarily due to increases in
        syndication agent fees, card fees and customer derivative income.
    --  Noninterest expenses increased $15 million, primarily due to second
        quarter 2016 restructuring charges. Excluding restructuring charges,
        noninterest expenses decreased $11 million, primarily reflecting an $8
        million gain from the sale of leased assets and a decrease in salaries
        and benefits expense, partially offset by an increase in outside
        processing fees tied to revenue generating activities.


    Retail Bank


    (dollar amounts in millions)     2nd Qtr '16            1st Qtr '16   2nd Qtr '15
    ---------------------------      -----------            -----------   -----------

     Net
     interest
     income                                         $155                               $156        $155

     Provision
     for
     credit
     losses                                   1                                      3         (8)

     Noninterest
     income                                  48                                     43          46

     Noninterest
     expenses                               205             (a)                    179         181

     Net
     income                                 (2)                                    11          18


     Net
     credit-
     related
     charge-
     offs                                     1                                      2           1


    Selected
     average
     balances:

    Assets                                6,557                                  6,544       6,459

    Loans                                 5,879                                  5,867       5,770

    Deposits                             23,546                                 23,110      22,747
    --------                             ------                                 ------      ------

    (a) Included restructuring charge of $19 million in the second quarter 2016.
    --  Average deposits increased $436 million, primarily reflecting seasonal
        increases. Balances increased in both interest-bearing and
        noninterest-bearing deposits.
    --  Net interest income decreased $1 million, primarily due to lower loan
        yields, partially offset by the benefit provided by the increase in
        average deposits.
    --  The provision for credit losses decreased $2 million, primarily due to a
        decrease in Small Business.
    --  Noninterest income increased $5 million, primarily reflecting the impact
        of a securities loss in the first quarter 2016 and an increase in card
        fees.
    --  Noninterest expenses increased $26 million, primarily due to second
        quarter 2016 restructuring charges. Excluding restructuring charges,
        noninterest expenses increased $7 million, primarily reflecting an
        increase in outside processing expenses and smaller increases in several
        other categories.


    Wealth Management


     (dollar
     amounts
     in
     millions)                         2nd Qtr '16           1st Qtr '16   2nd Qtr '15
     ---------                         -----------           -----------   -----------

    Net
     interest
     income                                           $42                               $43       $45

     Provision
     for
     credit
     losses                                     3                                   (5)      (9)

     Noninterest
     income                                    62                                    59        60

     Noninterest
     expenses                                  81            (a)                     73        74

    Net
     income                                    13                                    22        26


    Net
     credit-
     related
     charge-
     offs
     (recoveries)                               4                                   (1)      (5)


    Selected average
     balances:

    Assets                                  5,215                                 5,162     5,153

    Loans                                   5,016                                 4,964     4,954

    Deposits                                4,213                                 4,171     4,060
    --------                                -----                                 -----     -----

    (a) Included restructuring charge of $8 million in the second quarter 2016.
    --  Average loans increased $52 million, primarily reflecting an increase in
        Private Banking.
    --  Average deposits increased $42 million, primarily reflecting increases
        in money market and checking deposits as well as noninterest-bearing
        deposits.
    --  The provision for credit losses increased $8 million, from a negative
        provision of $5 million in the first quarter 2016 to a provision of $3
        million in the second quarter 2016.
    --  Noninterest income increased $3 million, primarily due to an increase in
        fiduciary income.
    --  Noninterest expenses increased $8 million, primarily due to second
        quarter 2016 restructuring charges. Excluding restructuring charges,
        noninterest expenses were stable.

Geographic Market Segments

Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. The tables below present the geographic market results based on the methodologies in effect at June 30, 2016.

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




    (dollar
     amounts
     in
     millions) 2nd Qtr '16      1st Qtr '16           2nd Qtr '15
    ---------- -----------      -----------           -----------

    Michigan                $57             34%                       $71          56%                   $98 44%

    California          50              30                    73         58               71          31

    Texas                3               2                  (76)      (60)              14           6

    Other
     Markets            55              34                    59         46               42          19
    --------           ---             ---                   ---        ---              ---         ---

                       165            100%                  127       100%             225        100%

    Finance &
     Other (a)        (61)                      (67)                        (90)
    ----------         ---                        ---                          ---

         Total             $104                                   $60                        $135
         -----             ----                                   ---                        ----

     (a) Includes items not directly
      associated with the geographic
      markets.
    --  Average loans increased $689 million in Other Markets, primarily
        reflecting an increase in Mortgage Banker Finance; $425 million in
        California, primarily reflecting increases in Commercial Real Estate and
        National Dealer Services; and $77 million in Texas, mostly due to
        increases in Commercial Real Estate and Private Banking, partially
        offset by a decrease in Energy. Average loans decreased $114 million in
        Michigan.
    --  Average deposits decreased $322 million in Texas and $143 million in
        Michigan, with both markets primarily reflecting decreases in
        Municipalities and Corporate Banking, partially offset by an increase in
        Retail Banking. Average deposits increased $279 million in California,
        reflecting increases in most lines of business.
    --  Net interest income decreased $9 million in Michigan and $4 million in
        Texas, and increased $1 million in California. The decrease in Michigan
        primarily reflected a decrease in loan yields, largely due to the impact
        of the negative residual value adjustment to assets in the leasing
        portfolio and lower nonaccrual interest recoveries in the second
        quarter, lower FTP credits resulting from a decrease in average
        deposits, and the impact of a decrease in average loans. The decrease in
        Texas primarily reflected lower FTP credits resulting from a decrease in
        average deposits and lower loan yields, largely due to the full quarter
        impact of loans transferred to nonaccrual in the first quarter 2016 and
        a decrease in accretion on the acquired loan portfolio. In California,
        the benefit from an increase in average loans was partially offset by an
        increase in net FTP charges, reflecting an increase in the cost of funds
        and a decrease in the deposit crediting rate.
    --  The provision for credit losses decreased $137 million in Texas, and
        increased $23 million California and $9 million in Michigan. The
        decrease in Texas primarily reflected the impact of the reserve build
        for Energy in the first quarter 2016. In California, the increased
        provision primarily reflected increases in National Dealer Services,
        Private Banking and general Middle Market. The increase in Michigan
        primarily reflected an increased provision in Commercial Real Estate.
    --  Noninterest income increased $5 million in Michigan, $1 million in Texas
        and $1 million in California. The increase in Michigan was primarily due
        to the impact of a securities loss in the first quarter 2016, an
        increase in customer derivative income and smaller increases in several
        other categories.
    --  Noninterest expenses increased $16 million in California, $13 million in
        Texas and $8 million in Michigan. Excluding restructuring charges,
        noninterest expenses were unchanged in California, and decreased $2
        million in Texas and $7 million in Michigan. The decrease in Michigan
        primarily reflected an $8 million gain from the sale of leased assets in
        the second quarter.


    Michigan Market


     (dollar
     amounts
     in
     millions)                         2nd Qtr '16            1st Qtr '16   2nd Qtr '15
     ---------                         -----------            -----------   -----------

     Net
     interest
     income                                           $166                               $175        $178

     Provision
     for
     credit
     losses                                     3                                    (6)       (13)

     Noninterest
     income                                    81                                     76          86

     Noninterest
     expenses                                 159             (a)                    151         129

     Net
     income                                    57                                     71          98


     Net
     credit-
     related
     charge-
     offs
     (recoveries)                               -                                     5         (1)


    Selected
     average
     balances:

    Assets                                 13,299                                 13,402      13,851

    Loans                                  12,660                                 12,774      13,290

    Deposits                               21,553                                 21,696      21,706
    --------                               ------                                 ------      ------

    (a) Included restructuring charge of $15 million in the second quarter 2016.


    California Market


    (dollar amounts in millions)     2nd Qtr '16            1st Qtr '16   2nd Qtr '15
    ---------------------------      -----------            -----------   -----------

     Net
     interest
     income                                         $178                               $177        $180

     Provision
     for
     credit
     losses                                  17                                    (6)          4

     Noninterest
     income                                  39                                     38          36

     Noninterest
     expenses                               120             (a)                    104          99

     Net
     income                                  50                                     73          71


     Net
     credit-
     related
     charge-
     offs                                    17                                      8           6


    Selected
     average
     balances:

    Assets                               17,997                                 17,541      16,696

    Loans                                17,708                                 17,283      16,429

    Deposits                             16,933                                 16,654      17,275
    --------                             ------                                 ------      ------

    (a)  Included restructuring charge of $16 million in the second quarter 2016.


    Texas Market


    (dollar amounts in millions)     2nd Qtr '16            1st Qtr '16   2nd Qtr '15
    ---------------------------      -----------            -----------   -----------

     Net
     interest
     income                                         $119                               $123        $130

     Provision
     for
     credit
     losses                                  32                                    169          43

     Noninterest
     income                                  31                                     30          30

     Noninterest
     expenses                               113             (a)                    100          93

     Net
     income
     (loss)                                   3                                   (76)         14


     Net
     credit-
     related
     charge-
     offs                                    31                                     47           5


    Selected
     average
     balances:

    Assets                               11,287                                 11,295      11,878

    Loans                                10,840                                 10,763      11,254

    Deposits                             10,052                                 10,374      10,959
    --------                             ------                                 ------      ------

    (a)  Included restructuring charge of $15 million in the second quarter 2016.

Conference Call and Webcast

Comerica will host a conference call to review second quarter 2016 financial results at 7 a.m. CT Tuesday, July 19, 2016. Interested parties may access the conference call by calling (877) 523-5249 or (210) 591-1147 (event ID No. 22809119). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can 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," "projects," "models" 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, including the GEAR Up initiative, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries as well as estimates of the economic benefits of the GEAR Up initiative, 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 changes in interest rates; changes in regulation or oversight; Comerica's ability to maintain adequate sources of funding and liquidity; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers, in particular the energy industry; unfavorable developments concerning credit quality; operational difficulties, failure of technology infrastructure or information security incidents; reliance on other companies to provide certain key components of business infrastructure; factors impacting noninterest expenses which are beyond Comerica's control; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; reductions in Comerica's credit rating; whether Comerica may achieve opportunities for revenue enhancements and efficiency improvements under the GEAR Up initiative, or changes in the scope or assumptions underlying the GEAR Up initiative; the interdependence of financial service companies; the implementation of Comerica's strategies and business initiatives; damage to Comerica's reputation; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; any future strategic acquisitions or divestitures; 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 or determinations; 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, 2015 and "Item 1A. Risk Factors" beginning on page 54 of Comerica's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. 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)                             2016         2016          2015      2016         2015
    --------------------                         ----         ----          ----      ----         ----

    PER COMMON SHARE AND COMMON STOCK
     DATA

    Diluted net income                                      $0.58                  $0.34                           $0.73                   $0.92    $1.46

    Cash dividends
     declared                                    0.22                      0.21      0.21                            0.43           0.41


    Average diluted
     shares (in
     thousands)                               177,240                   176,055   182,422                         176,614        182,281
    ---------------                           -------                   -------   -------                         -------        -------

    KEY RATIOS

    Return on average
     common shareholders'
     equity                                     5.44%                    3.13%    7.21%                          4.28%         7.20%

    Return on average
     assets                                      0.59                      0.34      0.79                            0.47           0.78

    Common equity tier 1
     and tier 1 risk-
     based capital ratio
     (a)                                        10.48                     10.58     10.40

    Total risk-based
     capital ratio (a)                          12.73                     12.84     12.38

    Leverage ratio (a)                          10.41                     10.60     10.56

    Common equity ratio                         10.79                     11.08     10.76

    Tangible common
     equity ratio (b)                            9.98                     10.23      9.92
    -----------------                            ----                     -----      ----

    AVERAGE BALANCES

    Commercial loans                                      $31,511                $30,814                         $31,788                 $31,162  $31,442

    Real estate
     construction loans                         2,429                     2,114     1,807                           2,272          1,872

    Commercial mortgage
     loans                                      9,033                     8,961     8,672                           8,997          8,627

    Lease financing                               730                       726       795                             728            796

    International loans                         1,396                     1,419     1,453                           1,408          1,482

    Residential mortgage
     loans                                      1,880                     1,892     1,877                           1,886          1,866

    Consumer loans                              2,490                     2,466     2,441                           2,478          2,409
                                                -----                     -----     -----                           -----          -----

    Total loans                                49,469                    48,392    48,833                          48,931         48,494


    Earning assets                             65,597                    64,123    63,981                          64,860         63,732

    Total assets                               70,668                    69,228    68,963                          69,948         68,852


    Noninterest-bearing
     deposits                                  28,376                    28,052    27,365                          28,214         27,033

    Interest-bearing
     deposits                                  28,145                    28,656    30,033                          28,401         30,163
                                               ------                    ------    ------                          ------         ------

    Total deposits                             56,521                    56,708    57,398                          56,615         57,196


    Common shareholders'
     equity                                     7,654                     7,632     7,512                           7,643          7,482
    --------------------                        -----                     -----     -----                           -----          -----

    NET INTEREST INCOME

    Net interest income                                      $445                   $447                            $421                    $892     $834

    Net interest margin
     (fully taxable
     equivalent)                                2.74%                    2.81%    2.65%                          2.78%         2.65%
    -------------------                          ----                      ----      ----                            ----           ----

    CREDIT QUALITY

    Total nonperforming
     assets                                                  $635                   $714                            $370


    Loans past due 90
     days or more and
     still accruing                                35                        13        18


    Net credit-related
     charge-offs                                   47                        58        19                                 $105                $27


    Allowance for loan
     losses                                       729                       724       618

    Allowance for credit
     losses on lending-
     related commitments                           43                        46        50
                                                  ---                       ---       ---

    Total allowance for
     credit losses                                772                       770       668


    Allowance for loan
     losses as a
     percentage of total
     loans                                      1.45%                    1.47%    1.24%

    Net credit-related
     charge-offs as a
     percentage of
     average total loans                         0.38                      0.49      0.15                           0.43%         0.11%

    Nonperforming assets
     as a percentage of
     total loans and
     foreclosed property                         1.26                      1.45      0.74

    Allowance for loan
     losses as a
     percentage of total
     nonperforming loans                          119                       105       171
    --------------------                          ---                       ---       ---

    (a)  June 30, 2016 ratios are estimated.

    (b)  See Reconciliation of Non-GAAP Financial Measures.




     CONSOLIDATED BALANCE SHEETS

     Comerica Incorporated and Subsidiaries


                                             June 30,    March 31,   December 31,    June 30,

    (in millions, except share data)               2016         2016           2015           2015
    -------------------------------                ----         ----           ----           ----

                                            (unaudited) (unaudited)                 (unaudited)

    ASSETS

    Cash and due from banks                                  $1,172                                    $977              $1,157  $1,148


    Interest-bearing deposits with banks          2,938                      2,025                     4,990      4,817

    Other short-term investments                    100                         94                       113        119


    Investment securities available-for-
     sale                                        10,712                     10,607                    10,519      8,267

    Investment securities held-to-
     maturity                                     1,807                      1,907                     1,981      1,952


    Commercial loans                             32,360                     31,562                    31,659     32,723

    Real estate construction loans                2,553                      2,290                     2,001      1,795

    Commercial mortgage loans                     9,038                      8,982                     8,977      8,674

    Lease financing                                 684                        731                       724        786

    International loans                           1,365                      1,455                     1,368      1,420

    Residential mortgage loans                    1,856                      1,874                     1,870      1,865

    Consumer loans                                2,524                      2,483                     2,485      2,478
    --------------                                -----                      -----                     -----      -----

    Total loans                                  50,380                     49,377                    49,084     49,741

    Less allowance for loan losses                (729)                     (724)                    (634)     (618)
    ------------------------------                 ----                       ----                      ----       ----

    Net loans                                    49,651                     48,653                    48,450     49,123


    Premises and equipment                          544                        541                       550        541

    Accrued income and other assets               4,356                      4,203                     4,117      3,978
    -------------------------------               -----                      -----                     -----      -----

    Total assets                                            $71,280                                 $69,007             $71,877 $69,945
    ------------                                            -------                                 -------             ------- -------


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Noninterest-bearing deposits                            $28,559                                 $28,025             $30,839 $28,167


    Money market and interest-bearing
     checking deposits                           22,539                     22,872                    23,532     23,786

    Savings deposits                              2,022                      2,006                     1,898      1,841

    Customer certificates of deposit              3,230                      3,401                     3,552      4,367

    Foreign office time deposits                     24                         47                        32         99
    ----------------------------                    ---                        ---                       ---        ---

    Total interest-bearing deposits              27,815                     28,326                    29,014     30,093
    -------------------------------              ------                     ------                    ------     ------

    Total deposits                               56,374                     56,351                    59,853     58,260


    Short-term borrowings                            12                        514                        23         56

    Accrued expenses and other
     liabilities                                  1,279                      1,389                     1,383      1,265

    Medium- and long-term debt                    5,921                      3,109                     3,058      2,841
    --------------------------                    -----                      -----                     -----      -----

    Total liabilities                            63,586                     61,363                    64,317     62,422


    Common stock - $5 par value:

    Authorized - 325,000,000 shares

    Issued - 228,164,824 shares                   1,141                      1,141                     1,141      1,141

    Capital surplus                               2,165                      2,158                     2,173      2,158

    Accumulated other comprehensive loss          (295)                     (328)                    (429)     (396)

    Retained earnings                             7,157                      7,097                     7,084      6,908

    Less cost of common stock in treasury
     -54,247,325 shares at 6/30/16,
     53,086,733 shares at 3/31/16,
     52,457,113 shares at 12/31/15, and
     49,803,515 shares at 6/30/15               (2,474)                   (2,424)                  (2,409)   (2,288)
    -------------------------------------        ------                     ------                    ------     ------

    Total shareholders' equity                    7,694                      7,644                     7,560      7,523
    --------------------------                    -----                      -----                     -----      -----

    Total liabilities and shareholders'
     equity                                                 $71,280                                 $69,007             $71,877 $69,945
    -----------------------------------                     -------                                 -------             ------- -------




    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)                               2016      2015            2016    2015
    --------------------                           ----      ----            ----    ----

    INTEREST INCOME

    Interest and fees on
     loans                                                  $406                   $388                          $812  $766

    Interest on investment
     securities                                      62                   53                     124        106

    Interest on short-
     term investments                                 5                    3                       9          7
    ------------------                              ---                  ---                     ---        ---

    Total interest income                           473                  444                     945        879

    INTEREST EXPENSE

    Interest on deposits                             10                   11                      20         22

    Interest on medium-
     and long-term debt                              18                   12                      33         23
    -------------------                             ---                  ---                     ---        ---

    Total interest expense                           28                   23                      53         45
    ----------------------                          ---                  ---                     ---        ---

    Net interest income                             445                  421                     892        834

    Provision for credit
     losses                                          49                   47                     197         61
    --------------------                            ---                  ---                     ---        ---

    Net interest income
     after provision for
     credit losses                                  396                  374                     695        773

    NONINTEREST INCOME

    Card fees                                        77                   69                     151        132

    Service charges on
     deposit accounts                                55                   56                     110        111

    Fiduciary income                                 49                   48                      95         95

    Commercial lending
     fees                                            22                   22                      42         47

    Letter of credit fees                            13                   13                      26         26

    Bank-owned life
     insurance                                        9                   10                      18         19

    Foreign exchange
     income                                          11                    9                      21         19

    Brokerage fees                                    5                    4                       9          8

    Net securities losses                           (1)                   -                    (3)       (2)

    Other noninterest
     income                                          29                   27                      46         54
    -----------------                               ---                  ---                     ---        ---

    Total noninterest
     income                                         269                  258                     515        509

    NONINTEREST EXPENSES

    Salaries and benefits
     expense                                        247                  251                     495        504

    Outside processing fee
     expense                                         84                   83                     163        156

    Net occupancy expense                            39                   39                      77         77

    Equipment expense                                14                   13                      27         26

    Restructuring charges                            53                    -                     53          -

    Software expense                                 30                   24                      59         47

    FDIC insurance expense                           14                    9                      25         18

    Advertising expense                               6                    5                      10         11

    Litigation-related
     expense                                          -                (30)                      -      (29)

    Other noninterest
     expenses                                        32                   39                      70         78
    -----------------                               ---                  ---                     ---        ---

    Total noninterest
     expenses                                       519                  433                     979        888
    -----------------                               ---                  ---                     ---        ---

    Income before income
     taxes                                          146                  199                     231        394

    Provision for income
     taxes                                           42                   64                      67        125
    --------------------                            ---                  ---                     ---        ---

    NET INCOME                                      104                  135                     164        269

    Less income allocated
     to participating
     securities                                       1                    1                       2          3
    ---------------------                           ---                  ---                     ---        ---

    Net income
     attributable to
     common shares                                          $103                   $134                          $162  $266
    ----------------                                        ----                   ----                          ----  ----

    Earnings per common share:

    Basic                                                  $0.60                  $0.76                         $0.94 $1.51

    Diluted                                        0.58                 0.73                    0.92       1.46


    Comprehensive income                            137                  109                     298        285


    Cash dividends
     declared on common
     stock                                           38                   37                      75         73

    Cash dividends
     declared per common
     share                                         0.22                 0.21                    0.43       0.41
    --------------------                           ----                 ----                    ----       ----




    CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

    Comerica Incorporated and Subsidiaries


                                                Second       First       Fourth      Third      Second                        Second Quarter 2016 Compared To:


                                                Quarter     Quarter     Quarter     Quarter     Quarter     First Quarter 2016                    Second Quarter 2015

    (in millions, except
     per share data)                                 2016       2016           2015         2015       2015        Amount       Percent                   Amount       Percent
    --------------------                             ----       ----           ----         ----       ----       ------       -------                    ------      -------

    INTEREST INCOME

    Interest and fees on
     loans                                                     $406                                 $406                        $395                                    $390               $388         $       -              -  %    $18      5%

    Interest on investment
     securities                                        62                       62                     56              54                        53                                 -          -        9                18

    Interest on short-
     term investments                                   5                        4                      6               4                         3                                 1          10         2                44
    ------------------                                ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Total interest income                             473                      472                    457             448                       444                                 1           -       29                 7

    INTEREST EXPENSE

    Interest on deposits                               10                       10                     10              11                        11                                 -          -      (1)             (11)

    Interest on medium-
     and long-term debt                                18                       15                     14              15                        12                                 3          20         6                49
    -------------------                               ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Total interest expense                             28                       25                     24              26                        23                                 3          10         5                22
    ----------------------                            ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Net interest income                               445                      447                    433             422                       421                               (2)          -       24                 6

    Provision for credit
     losses                                            49                      148                     60              26                        47                              (99)       (67)        2                 5
    --------------------                              ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Net interest income
     after provision                                  396                      299                    373             396                       374                                97          33        22                 6

    for credit losses

    NONINTEREST INCOME

    Card fees                                          77                       74                     75              72                        69                                 3           4         8                11

    Service charges on
     deposit accounts                                  55                       55                     55              57                        56                                 -          -      (1)              (3)

    Fiduciary income                                   49                       46                     45              47                        48                                 3           6         1                 1

    Commercial lending
     fees                                              22                       20                     30              22                        22                                 2           9         -                -

    Letter of credit fees                              13                       13                     14              13                        13                                 -          -        -                -

    Bank-owned life
     insurance                                          9                        9                     11              10                        10                                 -          -      (1)              (4)

    Foreign exchange
     income                                            11                       10                     11              10                         9                                 1           3         2                16

    Brokerage fees                                      5                        4                      4               5                         4                                 1          16         1                 6

    Net securities losses                             (1)                     (2)                     -              -                        -                                1          89       (1)           n/m

    Other noninterest
     income                                            29                       17                     23              26                        27                                12          70         2                12
    -----------------                                 ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Total noninterest
     income                                           269                      246                    268             262                       258                                23           9        11                 4

    NONINTEREST EXPENSES

    Salaries and benefits
     expense                                          247                      248                    262             243                       251                               (1)        (1)      (4)              (2)

    Outside processing fee
     expense                                           84                       79                     81              84                        83                                 5           7         1                 2

    Net occupancy expense                              39                       38                     41              41                        39                                 1           4         -                -

    Equipment expense                                  14                       13                     14              13                        13                                 1           6         1                 7

    Restructuring charges                              53                        -                     -              -                        -                               53     n/m           53            n/m

    Software expense                                   30                       29                     26              26                        24                                 1           7         6                28

    FDIC insurance expense                             14                       11                     10               9                         9                                 3          14         5                55

    Advertising expense                                 6                        4                      7               6                         5                                 2          93         1                22

    Litigation-related
     expense                                            -                       -                     -            (3)                     (30)                                -          -       30            n/m

    Other noninterest
     expenses                                          32                       38                     43              40                        39                               (6)       (17)      (7)             (19)
    -----------------                                 ---                      ---                    ---             ---                                                        ---         ---       ---               ---

    Total noninterest
     expenses                                         519                      460                    484             459                       433                                59          13        86                20
    -----------------                                 ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    Income before income
     taxes                                            146                       85                    157             199                       199                                61          73      (53)             (27)

    Provision for income
     taxes                                             42                       25                     41              63                        64                                17          68      (22)             (34)
    --------------------                              ---                      ---                    ---             ---                       ---                               ---         ---       ---               ---

    NET INCOME                                        104                       60                    116             136                       135                                44          74      (31)             (23)

    Less income allocated
     to participating
     securities                                         1                        1                      1               2                         1                                 -          -        -                -
    ---------------------                             ---                      ---                    ---             ---                       ---                               ---        ---      ---              ---

    Net income
     attributable to
     common shares                                             $103                                  $59                        $115                                    $134               $134               $44             74%     $(31)  (23)%
    ----------------                                           ----                                  ---                        ----                                    ----               ----               ---             ---       ----    ----

    Earnings per common share:

    Basic                                                     $0.60                                $0.34                       $0.65                                   $0.76              $0.76             $0.26             76%   $(0.16)  (21)%

    Diluted                                          0.58                     0.34                   0.64            0.74                      0.73                              0.24          71    (0.15)             (21)


    Comprehensive income                              137                      161                     32             187                       109                              (24)       (15)       28                27


    Cash dividends
     declared on common
     stock                                             38                       37                     37              37                        37                                 1           4         1                 7

    Cash dividends
     declared per common
     share                                           0.22                     0.21                   0.21            0.21                      0.21                              0.01           5      0.01                 5
    --------------------                             ----                     ----                   ----            ----                      ----                              ----         ---      ----               ---


    n/m - not meaningful




    ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                   2016                                    2015
                                                                   ----                                    ----

    (in millions)                                 2nd Qtr  1st Qtr          4th Qtr 3rd Qtr  2nd Qtr
    ------------                                  -------  -------          ------- -------  -------


    Balance at beginning of
     period                                                   $724                      $634                     $622           $618 $601


    Loan charge-offs:

    Commercial                                          48               72                          73       30             17

    Commercial mortgage                                  -               -                          1        -             2

    Lease financing                                      -               -                          -       -             1

    International                                        4                3                           -       1             11

    Residential mortgage                                 -               -                          -       -             1

    Consumer                                             2                2                           2        3              3
    --------                                           ---              ---                         ---      ---            ---

    Total loan charge-offs                              54               77                          76       34             35


    Recoveries on loans previously charged-
     off:

    Commercial                                           9               12                           6        8             10

    Real estate construction                             -               -                          -       -             1

    Commercial mortgage                                  2               12                          11        2              5

    Residential mortgage                                 -               -                          1        -             -

    Consumer                                             1                1                           7        1              1
    --------                                           ---              ---                         ---      ---            ---

    Total recoveries                                    12               25                          25       11             17
    ----------------                                   ---              ---                         ---      ---            ---

    Net loan charge-offs                                42               52                          51       23             18

    Provision for loan losses                           47              141                          63       28             35

    Foreign currency
     translation adjustment                              -               1                           -     (1)             -
    -----------------------                            ---             ---                         ---     ---            ---

    Balance at end of period                                  $729                      $724                     $634           $622 $618
    ------------------------                                  ----                      ----                     ----           ---- ----


    Allowance for loan losses
     as a percentage of total
     loans                                           1.45%           1.47%                      1.29%   1.27%         1.24%


    Net loan charge-offs as
     a percentage of average
     total loans                                      0.34             0.43                        0.42     0.19           0.15
    ------------------------                          ----             ----                        ----     ----           ----




    ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                 2016                                       2015
                                                                 ----                                       ----

    (in millions)                         2nd Qtr    1st Qtr                 4th Qtr    3rd Qtr  2nd Qtr
    ------------                          -------    -------                 -------    -------  -------


    Balance at
     beginning of
     period                                              $46                                 $45                      $48              $50   $39

    Charge-offs on
     lending-related
     commitments (a)                           (5)                   (6)                                -        -        (1)

    Provision for
     credit losses on
     lending-related
     commitments                                 2                      7                               (3)      (2)         12
    -----------------                          ---                    ---                               ---       ---         ---

    Balance at end of
     period                                              $43                                 $46                      $45              $48   $50
    -----------------                                    ---                                 ---                      ---              ---   ---


    Unfunded lending-
     related
     commitments sold                                    $12                                 $11                   $    -           $   -  $12
    -----------------                                    ---                                 ---                 ---  ---         --- ---  ---

    (a)  Charge-offs result from the sale of unfunded lending-related commitments.




    NONPERFORMING ASSETS (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                             2016                                                              2015
                                                                             ----                                                              ----

    (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                                                     $482                                 $547                                            $238                                $214                               $186

    Real estate construction                                -                      -                                   1                         1                      1

    Commercial mortgage                                    44                      47                                   60                        66                     77

    Lease financing                                         6                       6                                    6                         8                     11

    International                                          18                      27                                    8                         8                      9

    Total nonaccrual business
     loans                                                550                     627                                  313                       297                    284

    Retail loans:

    Residential mortgage                                   26                      26                                   27                        31                     35

    Consumer:

    Home equity                                            28                      27                                   27                        28                     29

    Other consumer                                          1                       1                                    -                        1                      1
    --------------                                        ---                     ---                                  ---                      ---                    ---

        Total consumer                                     29                      28                                   27                        29                     30
        --------------                                    ---                     ---                                  ---                       ---                    ---

    Total nonaccrual retail
     loans                                                 55                      54                                   54                        60                     65
    -----------------------                               ---                     ---                                  ---                       ---                    ---

    Total nonaccrual loans                                605                     681                                  367                       357                    349

    Reduced-rate loans                                      8                       8                                   12                        12                     12
    ------------------                                    ---                     ---                                  ---                       ---                    ---

    Total nonperforming loans                             613                     689                                  379                       369                    361

    Foreclosed property                                    22                      25                                   12                        12                      9
    -------------------                                   ---                     ---                                  ---                       ---                    ---

    Total nonperforming assets                                     $635                                 $714                                            $391                                $381                               $370
    --------------------------                                     ----                                 ----                                            ----                                ----                               ----


    Nonperforming loans as a
     percentage of total loans                          1.22%                  1.40%                               0.77%                    0.75%                 0.72%

    Nonperforming assets as a
     percentage of total loans                           1.26                    1.45                                 0.80                      0.78                   0.74

     and foreclosed property

    Allowance for loan losses as
     a percentage of total                                119                     105                                  167                       169                    171

    nonperforming loans

    Loans past due 90 days or
     more and still accruing                                        $35                                  $13                                             $17                                  $5                                $18
    -------------------------                                       ---                                  ---                                             ---                                 ---                                ---


    ANALYSIS OF NONACCRUAL LOANS

    Nonaccrual loans at
     beginning of period                                           $681                                 $367                                            $357                                $349                               $266

    Loans transferred to
     nonaccrual (a)                                       107                     446                                  105                        69                    145

    Nonaccrual business loan
     gross charge-offs (b)                               (52)                   (75)                                (49)                     (31)                  (31)

    Nonaccrual business loans
     sold (c)                                            (40)                   (21)                                   -                        -                   (1)

    Payments/Other (d)                                   (91)                   (36)                                (46)                     (30)                  (30)
    ------------------                                    ---                     ---                                  ---                       ---                    ---

    Nonaccrual loans at end of
     period                                                        $605                                 $681                                            $367                                $357                               $349
    --------------------------                                     ----                                 ----                                            ----                                ----                               ----

    (a) Based on an analysis of nonaccrual loans with book balances greater than $2 million.

    (b) Analysis of gross loan charge-offs:

    Nonaccrual business loans                                       $52                                  $75                                             $49                                 $31                                $31

    Performing business loans                               -                      -                                  25                         -                     -

    Consumer and residential
     mortgage loans                                         2                       2                                    2                         3                      4
                                                          ---                     ---                                  ---                       ---                    ---

        Total gross loan charge-
         offs                                                       $54                                  $77                                             $76                                 $34                                $35
                                                                    ---                                  ---                                             ---                                 ---                                ---

    (c) Analysis of loans sold:

          Nonaccrual business loans                                 $40                                  $21                                      $        -                         $        -                                $1

          Performing criticized loans                       -                      -                                   3                         -                     -
                                                          ---                    ---                                 ---                       ---                   ---

        Total criticized loans sold                                 $40                                  $21                                              $3                          $        -                                $1
                                                                    ---                                  ---                                             ---                        ---      ---                               ---

    (d) 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 (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                                      Six Months Ended
                                                                                      ----------------

                                                             June 30, 2016                                      June 30, 2015
                                                             -------------                                      -------------

                                                 Average                Average                    Average                    Average

    (dollar amounts in
     millions)                                   Balance    Interest   Rate (a)                    Balance       Interest    Rate (a)
    ------------------                           -------    --------    -------                    -------       --------     -------


    Commercial loans                                         $31,162                               $500                 3.24%                                $31,442          $475   3.06%

    Real estate construction
     loans                                          2,272                      41                   3.64                              1,872               32             3.43

    Commercial mortgage
     loans                                          8,997                     158                   3.53                              8,627              146             3.41

    Lease financing                                   728                      10                   2.66                                796               12             3.12

    International loans                             1,408                      26                   3.64                              1,482               27             3.69

    Residential mortgage
     loans                                          1,886                      36                   3.85                              1,866               35             3.77

    Consumer loans                                  2,478                      41                   3.35                              2,409               39             3.23
    --------------                                  -----                     ---                   ----                              -----              ---             ----

    Total loans                                    48,931                     812                   3.34                             48,494              766             3.19


    Mortgage-backed
     securities (b)                                 9,341                     102                   2.21                              9,064              101             2.24

    Other investment
     securities                                     3,004                      22                   1.50                                858                5             1.13
    ----------------                                -----                     ---                   ----                                ---              ---             ----

    Total investment
     securities (b)                                12,345                     124                   2.04                              9,922              106             2.15


    Interest-bearing
     deposits with banks                            3,478                       9                   0.50                              5,216                7             0.25

    Other short-term
     investments                                      106                       -                  0.76                                100                -            0.75
    ----------------                                  ---                     ---                  ----                                ---              ---            ----

    Total earning assets                           64,860                     945                   2.94                             63,732              879             2.79


    Cash and due from banks                         1,071                                                   1,034

    Allowance for loan
     losses                                         (714)                                                  (607)

    Accrued income and other
     assets                                         4,731                                                   4,693
                                                    -----                                                   -----

    Total assets                                             $69,948                                                              $68,852
                                                             -------                                                              -------


    Money market and
     interest-bearing
     checking deposits                                       $22,989                        13                0.11                                  $23,809               13    0.11

    Savings deposits                                1,973                       -                  0.02                              1,810                -            0.02

    Customer certificates of
     deposit                                        3,399                       7                   0.40                              4,423                8             0.37

    Foreign office time
     deposits                                          40                       -                  0.34                                121                1             1.36
    -------------------                               ---                     ---                  ----                                ---              ---             ----

    Total interest-bearing
     deposits                                      28,401                      20                   0.14                             30,163               22             0.14


    Short-term borrowings                             262                       -                  0.45                                 94                -            0.05

    Medium- and long-term
     debt                                           4,083                      33                   1.62                              2,675               23             1.78
    ---------------------                           -----                     ---                   ----                              -----              ---             ----

    Total interest-bearing
     sources                                       32,746                      53                   0.32                             32,932               45             0.28


    Noninterest-bearing
     deposits                                      28,214                                                  27,033

    Accrued expenses and
     other liabilities                              1,345                                                   1,405

    Total shareholders'
     equity                                         7,643                                                   7,482
                                                    -----                                                   -----

    Total liabilities and
     shareholders' equity                                    $69,948                                                              $68,852
                                                             -------                                                              -------


    Net interest income/rate spread                                       $892                   2.62                                               $834             2.51
                                                                          ----                                                                     ----


    Impact of net noninterest-bearing
     sources of funds                                                     0.16                                                                0.14
    ---------------------------------                                     ----                                                              ----

    Net interest margin (as a percentage of
     average earning assets)                                             2.78%                                                              2.65%
    ---------------------------------------                               ----                                                              ----

    (a)  Fully taxable equivalent.

    (b)  Includes investment securities available-for-sale and investment securities held-to-maturity.




    ANALYSIS OF NET INTEREST INCOME (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                                                             Three Months Ended
                                                                                                             ------------------

                                                             June 30, 2016                                   March 31, 2016                                     June 30, 2015
                                                             -------------                                   --------------                                     -------------

                                               Average                 Average                  Average                   Average                Average                 Average

    (dollar amounts in
     millions)                                 Balance      Interest   Rate (a)                 Balance        Interest   Rate (a)               Balance      Interest   Rate (a)
    ------------------                         -------      --------   -------                  -------        --------   -------                -------      --------   -------


    Commercial loans                                         $31,511                               $251               3.23%                                        $30,814                      $249           3.25%                         $31,788        $242 3.07%

    Real estate construction
     loans                                          2,429                      22                   3.62                            2,114                      19                    3.66                1,807          16               3.51

    Commercial mortgage
     loans                                          9,033                      78                   3.47                            8,961                      80                    3.59                8,672          73               3.38

    Lease financing                                   730                       4                   1.98                              726                       6                    3.33                  795           6               3.19

    International loans                             1,396                      13                   3.63                            1,419                      13                    3.65                1,453          13               3.68

    Residential mortgage
     loans                                          1,880                      17                   3.76                            1,892                      19                    3.94                1,877          18               3.78

    Consumer loans                                  2,490                      21                   3.37                            2,466                      20                    3.33                2,441          20               3.25
    --------------                                  -----                     ---                   ----                            -----                     ---                    ----                -----         ---               ----

    Total loans                                    49,469                     406                   3.31                           48,392                     406                    3.38               48,833         388               3.20


    Mortgage-backed
     securities (b)                                 9,326                      51                   2.21                            9,356                      51                    2.22                9,057          50               2.23

    Other investment
     securities                                     3,008                      11                   1.50                            3,001                      11                    1.50                  879           3               1.16
    ----------------                                -----                     ---                   ----                            -----                     ---                    ----                  ---         ---               ----

    Total investment
     securities (b)                                12,334                      62                   2.03                           12,357                      62                    2.05                9,936          53               2.13


    Interest-bearing
     deposits with banks                            3,690                       5                   0.50                            3,265                       4                    0.50                5,110           3               0.25

    Other short-term
     investments                                      104                       -                  0.58                              109                       -                   0.93                  102           -              0.42
    ----------------                                  ---                     ---                  ----                              ---                     ---                   ----                  ---         ---              ----

    Total earning assets                           65,597                     473                   2.91                           64,123                     472                    2.97               63,981         444               2.79


    Cash and due from banks                         1,074                                                 1,068                                                      1,041

    Allowance for loan
     losses                                         (749)                                                (680)                                                     (613)

    Accrued income and other
     assets                                         4,746                                                 4,717                                                      4,554
                                                    -----                                                 -----                                                      -----

    Total assets                                             $70,668                                                            $69,228                                                     $68,963
                                                             -------                                                            -------                                                     -------


    Money market and
     interest-bearing
     checking deposits                                       $22,785                         6              0.11                                         $23,193                       6          0.11                        $23,659                6 0.11

    Savings deposits                                2,010                       -                  0.02                            1,936                       -                   0.02                1,834           -              0.02

    Customer certificates of
     deposit                                        3,320                       4                   0.40                            3,477                       4                    0.40                4,422           4               0.37

    Foreign office time
     deposits                                          30                       -                  0.35                               50                       -                   0.33                  118           1               1.26
    -------------------                               ---                     ---                  ----                              ---                     ---                   ----                  ---         ---               ----

    Total interest-bearing
     deposits                                      28,145                      10                   0.14                           28,656                      10                    0.14               30,033          11               0.14


    Short-term borrowings                             159                       -                  0.45                              365                       -                   0.45                   78           -              0.04

    Medium- and long-term
     debt                                           5,072                      18                   1.42                            3,093                      15                    1.94                2,661          12               1.83
    ---------------------                           -----                     ---                   ----                            -----                     ---                    ----                -----         ---               ----

    Total interest-bearing
     sources                                       33,376                      28                   0.33                           32,114                      25                    0.32               32,772          23               0.28


    Noninterest-bearing
     deposits                                      28,376                                                28,052                                                     27,365

    Accrued expenses and
     other liabilities                              1,262                                                 1,430                                                      1,314

    Total shareholders'
     equity                                         7,654                                                 7,632                                                      7,512
                                                    -----                                                 -----                                                      -----

    Total liabilities and
     shareholders' equity                                    $70,668                                                            $69,228                                                     $68,963
                                                             -------                                                            -------                                                     -------


    Net interest income/rate spread                                       $445                   2.58                                                    $447                    2.65                                      $421              2.51
                                                                          ----                                                                          ----                                                             ----


    Impact of net noninterest-bearing
     sources of funds                                                     0.16                                                              0.16                                             0.14
    ---------------------------------                                     ----                                                            ----                                             ----

    Net interest margin (as a percentage of
     average earning assets)                                             2.74%                                                            2.81%                                           2.65%
    ---------------------------------------                               ----                                                            ----                                             ----

    (a)  Fully taxable equivalent.

    (b)  Includes investment securities available-for-sale and investment securities held-to-maturity.




    CONSOLIDATED STATISTICAL DATA (unaudited)

    Comerica Incorporated and Subsidiaries


                                              June 30,  March 31,  December 31,   September 30,   June 30,

    (in millions, except per
     share data)                                   2016       2016           2015             2015        2015
    ------------------------                       ----       ----           ----             ----        ----


    Commercial loans:

    Floor plan                                             $4,120                                    $3,902               $3,939             $3,538  $3,840

    Other                                        28,240                   27,660                      27,720      28,239             28,883
    -----                                        ------                   ------                      ------      ------             ------

    Total commercial loans                       32,360                   31,562                      31,659      31,777             32,723

    Real estate construction
     loans                                        2,553                    2,290                       2,001       1,874              1,795

    Commercial mortgage loans                     9,038                    8,982                       8,977       8,787              8,674

    Lease financing                                 684                      731                         724         751                786

    International loans                           1,365                    1,455                       1,368       1,382              1,420

    Residential mortgage
     loans                                        1,856                    1,874                       1,870       1,880              1,865

    Consumer loans:

    Home equity                                   1,779                    1,738                       1,720       1,714              1,682

    Other consumer                                  745                      745                         765         777                796
    --------------                                  ---                      ---                         ---         ---                ---

    Total consumer loans                          2,524                    2,483                       2,485       2,491              2,478
    --------------------                          -----                    -----                       -----       -----              -----

    Total loans                                           $50,380                                   $49,377              $49,084            $48,942 $49,741
    -----------                                           -------                                   -------              -------            ------- -------


    Goodwill                                                 $635                                      $635                 $635               $635    $635

    Core deposit intangible                           9                        9                          10          10                 11

    Other intangibles                                 3                        4                           4           4                  4


    Common equity tier 1
     capital (a)                                  7,346                    7,331                       7,350       7,327              7,280

    Risk-weighted assets (a)                     70,097                   69,319                      69,731      69,718             69,967


    Common equity tier 1 and
     tier 1 risk-based
     capital ratio (a)                           10.48%                  10.58%                     10.54%     10.51%            10.40%

    Total risk-based capital
     ratio (a)                                    12.73                    12.84                       12.69       12.82              12.38

    Leverage ratio (a)                            10.41                    10.60                       10.22       10.28              10.56

    Common equity ratio                           10.79                    11.08                       10.52       10.73              10.76

    Tangible common equity
     ratio (b)                                     9.98                    10.23                        9.70        9.91               9.92


    Common shareholders'
     equity per share of
     common stock                                          $44.24                                    $43.66               $43.03             $43.02  $42.18

    Tangible common equity
     per share of common
     stock (b)                                    40.52                    39.96                       39.33       39.36              38.53

    Market value per share for the quarter:

    High                                          47.55                    41.74                       47.44       52.93              53.45

    Low                                           36.27                    30.48                       39.52       40.01              44.38

    Close                                         41.13                    37.87                       41.83       41.10              51.32


    Quarterly ratios:

    Return on average common
     shareholders' equity                         5.44%                   3.13%                      6.08%      7.19%             7.21%

    Return on average assets                       0.59                     0.34                        0.64        0.76               0.79

    Efficiency ratio (c)                          72.48                    66.07                       69.00       66.98              63.49


    Number of banking centers                       473                      477                         477         477                477


    Number of employees -
     full time equivalent                         8,792                    8,869                       8,880       8,941              8,901
    ---------------------                         -----                    -----                       -----       -----              -----

    (a)              June 30, 2016
                     amounts and
                     ratios are
                     estimated.

                    See
                     Reconciliation
                     of Non-GAAP
                     Financial
    (b)              Measures.

    (c)              Noninterest
                     expenses as
                     a percentage
                     of the sum
                     of net
                     interest
                     income (FTE)
                     and
                     noninterest
                     income
                     excluding
                     net
                     securities
                     gains
                     (losses).




    PARENT COMPANY ONLY BALANCE SHEETS (unaudited)

    Comerica Incorporated


                                                   June 30,   December 31,  June 30,

    (in
     millions,
     except
     share
     data)                                               2016          2015        2015
    ----------                                           ----          ----        ----


    ASSETS

    Cash and
     due from
     subsidiary
     bank                                                               $8                    $4      $7

    Short-
     term
     investments
     with
     subsidiary
     bank                                                 563                      569        861

    Other
     short-
     term
     investments                                           87                       89         94

    Investment
     in
     subsidiaries,
     principally
     banks                                              7,666                    7,523      7,500

    Premises
     and
     equipment                                              2                        3          2

    Other
     assets                                               163                      137        122
    -------                                               ---                      ---        ---

          Total
           assets                                                   $8,489                $8,325  $8,586
          -------                                                   ------                ------  ------


    LIABILITIES AND
     SHAREHOLDERS' EQUITY

    Medium-
     and long-
     term debt                                                        $632                  $608    $903

    Other
     liabilities                                          163                      157        160
    ------------                                          ---                      ---        ---

          Total
           liabilities                                    795                      765      1,063


    Common stock -$5 par
     value:

        Authorized -325,000,000
         shares

        Issued -
         228,164,824
         shares                                         1,141                    1,141      1,141

    Capital
     surplus                                            2,165                    2,173      2,158

     Accumulated
     other
     comprehensive
     loss                                               (295)                   (429)     (396)

    Retained
     earnings                                           7,157                    7,084      6,908

    Less cost
     of common                                     and
     stock in                                      49,803,515
     treasury                                      shares at
     -                                             6/30/15
     54,247,325
     shares at
     6/30/16,
     52,457,113
     shares at
     12/31/15                                         (2,474)                 (2,409)   (2,288)
    -----------                                        ------                   ------     ------

          Total
           shareholders'
           equity                                       7,694                    7,560      7,523
          --------------                                -----                    -----      -----

          Total
           liabilities
           and
           shareholders'
           equity                                                   $8,489                $8,325  $8,586
          --------------                                            ------                ------  ------




    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, 2014                                       179.0                              $1,141                           $2,188                      $(412)             $6,744        $(2,259)  $7,402

    Net income                                                      -                    -                      -                        -        269              -             269

    Other comprehensive
     income, net of tax                                             -                    -                      -                       16           -             -              16

    Cash dividends
     declared on common
     stock ($0.41 per
     share)                                                         -                    -                      -                        -       (73)             -            (73)

    Purchase of common
     stock                                          (2.5)                         -                  -                     -                  -            (115)     (115)

    Purchase and
     retirement of
     warrants                                                       -                    -                   (10)                        -          -             -            (10)

    Net issuance of common
     stock under employee
     stock plans                                      0.9                          -               (23)                     -               (10)               43         10

    Net issuance of common
     stock for warrants                               1.0                          -               (21)                     -               (22)               43          -

    Share-based
     compensation                                                   -                    -                     24                         -          -             -              24

    BALANCE AT JUNE 30,
     2015                                           178.4                              $1,141                           $2,158                      $(396)             $6,908        $(2,288)  $7,523
    -------------------                             -----                              ------                           ------                       -----              ------         -------   ------


    BALANCE AT DECEMBER
     31, 2015                                       175.7                              $1,141                           $2,173                      $(429)             $7,084        $(2,409)  $7,560

    Net income                                                      -                    -                      -                        -        164              -             164

    Other comprehensive
     income, net of tax                                             -                    -                      -                      134           -             -             134

    Cash dividends
     declared on common
     stock ($0.43 per
     share)                                                         -                    -                      -                        -       (75)             -            (75)

    Purchase of common
     stock                                          (2.9)                         -                  -                     -                  -            (114)     (114)

    Net issuance of common
     stock under employee
     stock plans                                      1.1                          -               (33)                     -               (16)               49          -

    Share-based
     compensation                                                   -                    -                     25                         -          -             -              25

    BALANCE AT JUNE 30,
     2016                                           173.9                              $1,141                           $2,165                      $(295)             $7,157        $(2,474)  $7,694
    -------------------                             -----                              ------                           ------                       -----              ------         -------   ------




     BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)

     Comerica Incorporated and Subsidiaries



    (dollar amounts
     in millions)                        Business           Retail            Wealth

    Three Months
     Ended June 30,
     2016                                  Bank              Bank           Management        Finance     Other         Total
    ---------------                        ----              ----           ----------        -------     -----         -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $355                              $155                      $42                 $(111)                  $4    $445

    Provision for
     credit losses                               46                       1                             3             -          (1)                49

    Noninterest
     income                                     142                      48                            62            13             4                269

    Noninterest
     expenses                                   222                     205                            81             2             9                519

    Provision
     (benefit) for
     income taxes                                75                     (1)                            7          (38)          (1)                42
                                                ---                     ---                           ---           ---           ---

    Net income
     (loss)                                            $154                              $(2)                     $13                  $(62)                  $1    $104
                                                       ----                               ---                      ---                   ----                  ---    ----

    Net credit-
     related charge-
     offs                                               $42                                $1                       $4             $        -             $     -    $47


    Selected average balances:

    Assets                                          $39,617                            $6,557                   $5,215                $14,135               $5,144 $70,668

    Loans                                    38,574                   5,879                         5,016             -            -            49,469

    Deposits                                 28,429                  23,546                         4,213            62           271             56,521


    Statistical data:

    Return on
     average assets
     (a)                                      1.55%                (0.03)%                        1.02%          N/M          N/M             0.59%

    Efficiency ratio
     (b)                                      44.46                  101.12                         77.65           N/M          N/M             72.48
                                              -----                  ------                         -----           ---          ---             -----


                                         Business           Retail            Wealth

    Three Months
     Ended March 31,
     2016                                  Bank              Bank           Management        Finance     Other         Total
    ----------------                       ----              ----           ----------        -------     -----         -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $362                              $156                      $43                 $(118)                  $4    $447

    Provision for
     credit losses                              151                       3                           (5)            -          (1)               148

    Noninterest
     income                                     135                      43                            59            14           (5)               246

    Noninterest
     expenses                                   207                     179                            73             2           (1)               460

    Provision
     (benefit) for
     income taxes                                45                       6                            12          (40)            2                 25
                                                ---                     ---                           ---           ---           ---

    Net income
     (loss)                                             $94                               $11                      $22                  $(66)                $(1)    $60
                                                        ---                               ---                      ---                   ----                  ---     ---

    Net credit-
     related charge-
     offs
     (recoveries)                                       $57                                $2                     $(1)            $        -             $     -    $58


    Selected average balances:

    Assets                                          $38,635                            $6,544                   $5,162                $14,162               $4,725 $69,228

    Loans                                    37,561                   5,867                         4,964             -            -            48,392

    Deposits                                 29,108                  23,110                         4,171           103           216             56,708


    Statistical data:

    Return on
     average assets
     (a)                                      0.97%                  0.19%                        1.69%          N/M          N/M             0.34%

    Efficiency ratio
     (b)                                      41.62                   88.91                         71.47           N/M          N/M             66.07
    ----------------                          -----                   -----                         -----           ---          ---             -----


                                         Business           Retail            Wealth

    Three Months
     Ended June 30,
     2015                                  Bank              Bank           Management        Finance     Other         Total
    ---------------                        ----              ----           ----------        -------     -----         -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $373                              $155                      $45                 $(154)                  $2    $421

    Provision for
     credit losses                               61                     (8)                          (9)            -            3                 47

    Noninterest
     income                                     138                      46                            60            14             -               258

    Noninterest
     expenses                                   175                     181                            74             2             1                433

    Provision
     (benefit) for
     income taxes                                94                      10                            14          (53)          (1)                64
                                                ---                     ---                           ---           ---           ---                ---

    Net income
     (loss)                                            $181                               $18                      $26                  $(89)                $(1)   $135
                                                       ----                               ---                      ---                   ----                  ---    ----

    Net credit-
     related charge-
     offs
     (recoveries)                                       $23                                $1                     $(5)            $        -             $     -    $19


    Selected average balances:

    Assets                                          $39,134                            $6,459                   $5,153                $11,697               $6,520 $68,963

    Loans                                    38,109                   5,770                         4,954             -            -            48,833

    Deposits                                 30,229                  22,747                         4,060            93           269             57,398


    Statistical data:

    Return on
     average assets
     (a)                                      1.86%                  0.30%                        2.01%          N/M          N/M             0.79%

    Efficiency ratio
     (b)                                      33.96                   89.88                         70.28           N/M          N/M             63.49
    ----------------                          -----                   -----                         -----           ---          ---             -----

    (a)                      Return on
                             average
                             assets is
                             calculated
                             based on
                             the
                             greater of
                             average
                             assets or
                             average
                             liabilities
                             and
                             attributed
                             equity.

    (b)                      Noninterest
                             expenses as
                             a
                             percentage
                             of the sum
                             of net
                             interest
                             income
                             (fully
                             taxable
                             equivalent
                             basis) and
                             noninterest
                             income
                             excluding
                             net
                             securities
                             gains.

    N/M - Not Meaningful




     MARKET SEGMENT FINANCIAL RESULTS (unaudited)

     Comerica Incorporated and Subsidiaries



    (dollar amounts in millions)                                                                                                     Other         Finance

    Three Months
     Ended June 30,
     2016                                Michigan           California        Texas          Markets          & Other          Total
    ---------------                      --------           ----------        -----          -------          -------          -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $166                            $178                              $119                         $89                 $(107)   $445

    Provision for
     credit losses                                3                        17                         32                   (2)                (1)                49

    Noninterest
     income                                      81                        39                         31                   101                  17                269

    Noninterest
     expenses                                   159                       120                        113                   116                  11                519

    Provision
     (benefit) for
     income taxes                                28                        30                          2                    21                (39)                42
                                                ---                       ---                        ---                   ---                 ---                ---

    Net income
     (loss)                                             $57                             $50                                $3                         $55                  $(61)   $104
                                                        ---                             ---                               ---                         ---                   ----    ----

    Net credit-
     related charge-
     offs
     (recoveries)                                 $       -                            $17                               $31                        $(1)              $      -    $47


    Selected average balances:

    Assets                                          $13,299                         $17,997                           $11,287                      $8,806                $19,279 $70,668

    Loans                                    12,660                    17,708                     10,840                 8,261                   -            49,469

    Deposits                                 21,553                    16,933                     10,052                 7,650                 333             56,521


    Statistical data:

    Return on
     average assets
     (a)                                      1.01%                    1.10%                     0.11%                2.52%                N/M             0.59%

    Efficiency ratio
     (b)                                      64.13                     55.30                      74.91                 60.98                 N/M             72.48
    ----------------                          -----                     -----                      -----                 -----                 ---             -----


                                                                                            Other        Finance

    Three Months
     Ended March 31,
     2016                                Michigan           California        Texas          Markets          & Other          Total
    ----------------                     --------           ----------        -----          -------          -------          -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $175                            $177                              $123                         $86                 $(114)   $447

    Provision for
     credit losses                              (6)                      (6)                       169                   (8)                (1)               148

    Noninterest
     income                                      76                        38                         30                    93                   9                246

    Noninterest
     expenses                                   151                       104                        100                   104                   1                460

    Provision
     (benefit) for
     income taxes                                35                        44                       (40)                   24                (38)                25
                                                ---                       ---                        ---                   ---                 ---                ---

    Net income
     (loss)                                             $71                             $73                             $(76)                        $59                  $(67)    $60
                                                        ---                             ---                              ----                         ---                   ----     ---

    Net credit-
     related charge-
     offs
     (recoveries)                                        $5                              $8                               $47                        $(2)              $      -    $58


    Selected average balances:

    Assets                                          $13,402                         $17,541                           $11,295                      $8,103                $18,887 $69,228

    Loans                                    12,774                    17,283                     10,763                 7,572                   -            48,392

    Deposits                                 21,696                    16,654                     10,374                 7,665                 319             56,708


    Statistical data:

    Return on
     average assets
     (a)                                      1.26%                    1.66%                   (2.54)%                2.84%                N/M             0.34%

    Efficiency ratio
     (b)                                      59.59                     48.10                      65.37                 58.36                 N/M             66.07
    ----------------                          -----                     -----                      -----                 -----                 ---             -----


                                                                                            Other           Finance

    Three Months
     Ended June 30,
     2015                                Michigan           California        Texas          Markets          & Other          Total
    ---------------                      --------           ----------        -----          -------          -------          -----

    Earnings summary:

    Net interest
     income
     (expense)                                         $178                            $180                              $130                         $85                 $(152)   $421

    Provision for
     credit losses                             (13)                        4                         43                    10                   3                 47

    Noninterest
     income                                      86                        36                         30                    92                  14                258

    Noninterest
     expenses                                   129                        99                         93                   109                   3                433

    Provision
     (benefit) for
     income taxes                                50                        42                         10                    16                (54)                64
                                                ---                       ---                        ---                   ---                 ---                ---

    Net income
     (loss)                                             $98                             $71                               $14                         $42                  $(90)   $135
                                                        ---                             ---                               ---                         ---                   ----    ----

    Net credit-
     related charge-
     offs
     (recoveries)                                      $(1)                             $6                                $5                          $9               $      -    $19


    Selected average balances:

    Assets                                          $13,851                         $16,696                           $11,878                      $8,321                $18,217 $68,963

    Loans                                    13,290                    16,429                     11,254                 7,860                   -            48,833

    Deposits                                 21,706                    17,275                     10,959                 7,096                 362             57,398


    Statistical data:

    Return on
     average assets
     (a)                                      1.73%                    1.54%                     0.45%                2.03%                N/M             0.79%

    Efficiency ratio
     (b)                                      48.09                     45.90                      58.13                 61.56                 N/M             63.49
    ----------------                          -----                     -----                      -----                 -----                 ---             -----

    (a)                      Return on
                             average
                             assets is
                             calculated
                             based on
                             the
                             greater of
                             average
                             assets or
                             average
                             liabilities
                             and
                             attributed
                             equity.

    (b)                      Noninterest
                             expenses as
                             a
                             percentage
                             of the sum
                             of net
                             interest
                             income
                             (fully
                             taxable
                             equivalent
                             basis) and
                             noninterest
                             income
                             excluding
                             net
                             securities
                             gains.

    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)                                 2016         2016           2015             2015        2015
    ------------------                         ----         ----           ----             ----        ----


    Tangible Common Equity Ratio:

    Common
     shareholders'
     equity                                              $7,694                                    $7,644               $7,560             $7,622  $7,523

    Less:

    Goodwill                                    635                        635                         635         635                635

    Other intangible
     assets                                      12                         13                          14          14                 15
                                                ---                        ---                         ---         ---                ---

    Tangible common
     equity                                              $7,047                                    $6,996               $6,911             $6,973  $6,873
    ---------------                                      ------                                    ------               ------             ------  ------


    Total assets                                        $71,280                                   $69,007              $71,877            $71,012 $69,945

    Less:

    Goodwill                                    635                        635                         635         635                635

    Other intangible
     assets                                      12                         13                          14          14                 15
                                                ---                        ---                         ---         ---                ---

    Tangible assets                                     $70,633                                   $68,359              $71,228            $70,363 $69,295
    ---------------                                     -------                                   -------              -------            ------- -------


    Common equity ratio                      10.79%                    11.08%                     10.52%     10.73%            10.76%

    Tangible common
     equity ratio                              9.98                      10.23                        9.70        9.91               9.92
    ---------------                            ----                      -----                        ----        ----               ----


    Tangible Common Equity per Share of
     Common Stock:

    Common
     shareholders'
     equity                                              $7,694                                    $7,644               $7,560             $7,622  $7,523

    Tangible common
     equity                                   7,047                      6,996                       6,911       6,973              6,873
    ---------------                           -----                      -----                       -----       -----              -----


    Shares of common
     stock outstanding
     (in millions)                              174                        175                         176         177                178
    ------------------                          ---                        ---                         ---         ---                ---


    Common
     shareholders'
     equity per share
     of common stock                                     $44.24                                    $43.66               $43.03             $43.02  $42.18

    Tangible common
     equity per share
     of common stock                          40.52                      39.96                       39.33       39.36              38.53
    -----------------                         -----                      -----                       -----       -----              -----

The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. 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.

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SOURCE Comerica Incorporated

For further information: Media, Wayne J. Mielke, (214) 462-4463; or Investors, Darlene P. Persons, (214) 462-6831, Chelsea R. Smith, (214) 462-6834
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