Financial News

Comerica Reports Third Quarter 2016 Net Income Of $149 Million
Net Income of 84 Cents Per Share Increased 45 Percent Compared to Second Quarter 2016
Includes After-Tax Impact of Restructuring Charges of $13 Million, or 8 Cents Per Share
Strong Credit Quality
Net Credit-Related Charge-Offs to Average Loans of 13 Basis Points
Growth in Efficiency and Revenue Initiative Implementation on Track
$40 Million in Additional Savings Identified
Now Expected to Drive $270 Million Increase in Annual Pre-Tax Income in 2018
PR Newswire

DALLAS, Oct. 18, 2016 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported third quarter 2016 net income of $149 million, compared to $104 million for the second quarter 2016 and $136 million for the third quarter 2015. Earnings per diluted share were 84 cents for third quarter 2016 compared to 58 cents for second quarter 2016 and 74 cents for third quarter 2015. Comerica also continued the implementation of its efficiency and revenue initiative ("GEAR Up"), which is expected to drive additional annual pre-tax income of approximately $180 million by year-end 2017 and $270 million by year-end 2018.

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"On our last earnings call, we announced that we had identified more than 20 work streams in our GEAR Up initiative that are expected to drive a significant improvement in our bottom line. At that time, we also indicated there was more to come, as we were still identifying and analyzing opportunities. We have determined that those new opportunities add about $40 million to our initial financial target. As a result, we are now expecting to drive at least $270 million in additional pre-tax income for full-year 2018," said Ralph W. Babb, Jr., chairman and chief executive officer. "These actions, which we have already begun to execute with urgency, take us a long way towards achieving a double-digit return on equity. We expect to meet or exceed this goal with sustained growth, net of investment, normal credit costs, continued equity buybacks, and assuming only a 25 to 50 basis point increase in rates. We are not relying on a significantly better economic environment or a substantial increase in rates to reach our goal. We remain confident that as we deliver on this initiative, we will create greater shareholder value."

The GEAR Up initiative now includes expected pre-tax benefits of approximately $180 million in full-year 2017 and approximately $270 million in full-year 2018. Additional initiatives include a new retirement program that will replace the current pension plan and retirement account plan for most employees effective January 1, 2017. Active pension plan participants age 60 or older as of December 31, 2016 and current retirees will not be impacted. This initiative is expected to result in annual savings of approximately $35 million in full-year 2017 (assuming current actuarial assumptions). The initiative is also expected to reduce full-year 2016 pension expense to $7 million, resulting in a $4 million credit in the fourth quarter. In addition, streamlining additional operations and administrative support functions is expected to add about $5 million to the initial target.

    --  Expense reduction targets have been increased to approximately $150
        million for full-year 2017, which increases to approximately $200
        million for full-year 2018. This is to be achieved through the
        additional actions identified above as well as the previously announced
        reduction in workforce, streamlining operational processes, real estate
        optimization including consolidating 38 banking centers, selective
        outsourcing of technology functions and reduction of technology system
        applications. Approximately two-thirds of the workforce reduction target
        will be completed by year-end 2016.
    --  Revenue enhancements are unchanged and are expected to be approximately
        $30 million for full-year 2017, which increase to approximately $70
        million for full-year 2018, through expanded product offerings, enhanced
        sales tools and training and improved customer analytics to drive
        opportunities.
    --  Total expected pre-tax restructuring charges of $140 million to $160
        million to be incurred through 2018 are unchanged.



    (dollar amounts in millions, except per share data)                                      3rd Qtr '16            2nd Qtr '16        3rd Qtr '15
    --------------------------------------------------                                       -----------            -----------        -----------

    Net interest income                                                                                   $450                                           $445          $422

    Provision for credit losses                                                                  16                                                49               26

    Noninterest income                                                                          272                                               268              260

    Noninterest expenses                                                                        493               (a)                             518 (a)          457
                                                                                                ---               ---                             --- ---          ---

    Pre-tax income                                                                              213                                               146              199

    Provision for income taxes                                                                   64                                                42               63
                                                                                                ---                                               ---              ---

    Net income                                                                                            $149                                           $104          $136
                                                                                                          ----                                           ----          ----


    Net income attributable to common shares                                                              $148                                           $103          $134


    Diluted income per common share                                                            0.84                                              0.58             0.74


    Average diluted shares (in millions)                                                        176                                               177              181


    Common equity Tier 1 capital ratio (b)                                                   10.68%                                           10.49%          10.51%

    Common equity ratio                                                                       10.42                                             10.79            10.73

    Tangible common equity ratio (c)                                                           9.64                                              9.98             9.91
    -------------------------------                                                            ----                                              ----             ----


    (a) Included restructuring charge of $20 million (8 cents per share, after tax) in the third quarter 2016 and $53 million (19 cents per
    share, after tax) in the second quarter 2016.

    (b) September 30, 2016 ratio is estimated.

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

"Quarter over quarter, our earnings per share increased 45 percent. This reflected strong credit quality, a reduction in restructuring charges, solid revenue growth and well-managed expenses," said Babb. "While loans were relatively stable, average deposit growth was robust, increasing $1.5 billion. Criticized loans declined and net charge-offs were only 13 basis points of average loans. Our capital position remains solid. In line with our CCAR plan, we increased our share repurchases to 2.1 million shares for a total of $97 million, compared to $65 million in the second quarter.

"We believe we are well positioned for the future," said Babb. "We benefit meaningfully from any increase in interest rates and we continue to adeptly navigate the energy cycle. Yet, we are not waiting for the environment to improve. We are moving with urgency to execute our GEAR Up initiatives and are fully committed to delivering on these efficiency and revenue opportunities to further enhance our profitability."

Third Quarter 2016 Compared to Second Quarter 2016

Average total loans decreased $263 million to $49.2 billion.

    --  Primarily reflected decreases in Energy, National Dealer Services and
        Technology and Life Sciences; partially offset by increases in Mortgage
        Banker Finance and Commercial Real Estate.
    --  Period-end total loans decreased $1.1 billion to $49.3 billion,
        primarily due to decreases in National Dealer Services and Energy.

Average total deposits increased $1.5 billion to $58.1 billion.

    --  Driven by a $2.1 billion increase in noninterest-bearing deposits,
        partially offset by a $534 million decrease in interest-bearing
        deposits.
    --  Average total deposits increased in general Middle Market, Commercial
        Real Estate and Corporate Banking; partially offset by a decrease in
        Wealth Management.
    --  Period-end deposits increased $2.9 billion to $59.3 billion, in part
        reflecting an elevated deposit level associated with the government card
        program on the final day of the quarter.

Net interest income increased $5 million to $450 million.

    --  Primarily the result of one additional day in the third quarter and the
        benefit from an increase in LIBOR rates, partially offset by higher
        funding costs.

The provision for credit losses decreased $33 million to $16 million.

    --  Net credit-related charge-offs were $16 million, or 0.13 percent of
        average loans, compared to $47 million, or 0.38 percent, in the second
        quarter 2016. Energy net credit-related charge-offs were $6 million
        compared to $32 million in the second quarter 2016.
    --  The allowance for loan losses was $727 million, or 1.48 percent of total
        loans. The reserve allocation for Energy remained above 8 percent of
        loans in the Energy business line.

Noninterest income increased $4 million to $272 million.

    --  Increases in commercial lending fees, largely due to an increase in
        syndication agent fees, partially offset by a decrease in fiduciary
        income.
    --  Non-fee categories increased modestly, primarily due to an increase in
        income from bank-owned life insurance partially offset by a decrease in
        deferred compensation plan asset returns.

Noninterest expenses decreased $25 million to $493 million.

    --  Excluding a $33 million decrease in restructuring charges, noninterest
        expenses increased $8 million, primarily due to a $6 million decrease in
        gains from the sale of leased assets and a $3 million increase in
        outside processing fees.

Capital position remained solid at September 30, 2016.

    --  Increased repurchases by 640,000 shares to approximately 2.1 million
        shares of common stock under the equity repurchase program.
    --  Dividend increased 4.5 percent to 23 cents per share.
    --  Including dividends, returned a total of $137 million to shareholders.

Third Quarter 2016 Compared to Third Quarter 2015

Average total loans increased $234 million.

    --  Primarily reflected continued growth in Commercial Real Estate and
        Mortgage Banker Finance, partially offset by declines in Energy and
        general Middle Market.

Average total deposits decreased $1.1 billion, or 2 percent.

    --  Primarily driven by decreases in Municipalities, Corporate Banking,
        Technology and Life Sciences and the Financial Services Division;
        partially offset by increases in Retail Bank and Commercial Real Estate.

Net interest income increased $28 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 decreased $10 million, or 38 percent.

Noninterest income increased $12 million, or 5 percent.

    --  Excluding a $6 million increase in deferred compensation asset returns,
        noninterest income increased $6 million, primarily reflecting a $5
        million increase in card fees and a $4 million increase in commercial
        lending fees, largely due to an increase in syndication agent fees;
        partially offset by decreases in warrant income and risk management
        hedge ineffectiveness.

Noninterest expense increased $36 million.

    --  Noninterest expense increased $10 million excluding third quarter 2016
        restructuring charges of $20 million and a $6 million increase in
        deferred compensation plan expense. The remaining increase primarily
        reflected increases of $5 million each in software expense and FDIC
        insurance premiums.

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


    (dollar amounts
     in millions)       3rd Qtr '16         2nd Qtr '16        3rd Qtr '15
    ---------------     -----------         -----------        -----------

    Net interest
     income                            $450                                   $445            $422


    Net interest
     margin                   2.66%                     2.74%                      2.54%


    Selected average
     balances:

    Total earning
     assets                         $67,648                                $65,597         $66,191

    Total loans              49,206                     49,469                      48,972

    Total investment
     securities              12,373                     12,334                      10,232

    Federal Reserve
     Bank deposits            5,781                      3,495                       6,710



    Total deposits           58,065                     56,521                      59,140

    Total
     noninterest-
     bearing deposits        30,454                     28,376                      28,623

    Medium- and
     long-term debt           5,907                      5,072                       3,175
    ---------------           -----                      -----                       -----

Net interest income increased $5 million to $450 million in the third quarter 2016, compared to the second quarter 2016.

    --  Interest on loans increased $5 million, primarily reflecting the benefit
        from increases in LIBOR rates (+$4 million), one additional day in the
        third quarter (+$4 million) and the impact of a second quarter 2016
        negative residual value adjustment to assets in the leasing portfolio
        (+$2 million), partially offset by the impact of a decrease in average
        loan balances (-$2 million), the impact of nonaccrual loans (-$1
        million), lower fees (-$1 million) and other portfolio dynamics (-$1
        million).
    --  Interest on investment securities decreased $1 million due to a decrease
        in yields.
    --  Interest on short-term investments increased $3 million due to an
        increase in average Federal Reserve Bank deposit balances.
    --  Interest expense on debt increased $2 million, primarily due to higher
        costs on variable rate debt tied to LIBOR and the full-quarter impact of
        Federal Home Loan Bank (FHLB) borrowings during the second quarter.

The net interest margin of 2.66 percent decreased 8 basis points compared to the second quarter 2016, primarily due to the impact of an increase in lower-yielding Federal Reserve Bank deposit balances (-8 basis points).

Credit Quality

"Credit quality was strong, with total net charge-offs of $16 million, or 13 basis points, which is well below our historical norm," said Babb. "Criticized loans declined almost $300 million and comprised less than 7 percent of our total loans. Energy loans were 5 percent of total loans as they continued to decrease. While the overall performance of the Energy portfolio has improved, as evidenced by net charge-offs of only $6 million in the third quarter, and oil and gas prices have remained relatively stable for the past several months, we remain cautious and continued to maintain a reserve allocation of over 8 percent for Energy loans and a total reserve of 1.48 percent of total loans as of September 30, 2016. The solid performance of our total loan portfolio contributed to a reduction in our provision expense to $16 million."




    (dollar amounts in millions)                          3rd Qtr '16          2nd Qtr '16            3rd Qtr '15
    ---------------------------                           -----------          -----------            -----------

    Credit-related charge-offs                                           $35                                  $59          $34

    Recoveries                                                     19                              12                   11
                                                                  ---                             ---                  ---

    Net credit-related charge-offs                                 16                              47                23

    Net credit-related charge-offs/
     Average total loans                                        0.13%                          0.38%              0.19%


    Provision for credit losses                                          $16                                  $49          $26


    Nonperforming loans                                           639                             613               369

    Nonperforming assets (NPAs)                                   660                             635               381

    NPAs/Total loans and foreclosed
     property                                                   1.34%                          1.26%              0.78%


    Loans past due 90 days or more and
     still accruing                                                      $48                                  $35           $5


    Allowance for loan losses                                     727                             729               622

    Allowance for credit losses on
     lending-related commitments (a)                               45                              43                  48
                                                                  ---                             ---               ---

    Total allowance for credit losses                             772                             772               670


    Allowance for loan losses/Period-
     end total loans                                            1.48%                          1.45%              1.27%

    Allowance for loan losses/
     Nonperforming loans                                          114                             119                 169
    --------------------------                                    ---                             ---               ---


    (a) Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.
    --------------------------------------------------------------------------------------------

    --  Energy business line loans were $2.5 billion at September 30, 2016
        compared to $2.7 billion at June 30, 2016.
        --  Criticized Energy loans decreased $79 million, to $1.5 billion.
        --  Energy net charge-offs were $6 million, compared to $32 million in
            the second quarter 2016.
        --  The reserve allocation for loans in the Energy business line
            remained above 8 percent at September 30, 2016.
    --  Net charge-offs decreased $31 million to $16 million, or 0.13 percent of
        average loans, in the third quarter 2016, compared to $47 million, or
        0.38 percent, in the second quarter 2016. Aside from Energy, net
        charge-offs were $10 million, or 8 basis points, for the remainder of
        the portfolio.
    --  During the third quarter 2016, $105 million of borrower relationships
        over $2 million were transferred to nonaccrual status, a decrease of $2
        million compared to $107 million transferred during the second quarter.
        Third quarter 2016 transfers to nonaccrual included $63 million from
        Energy, compared to $51 million in the second quarter.
    --  Criticized loans decreased $290 million to $3.3 billion at September 30,
        2016, compared to $3.6 billion at June 30, 2016. Criticized loans are
        generally consistent with the Special Mention, Substandard and Doubtful
        categories defined by regulatory authorities.

Fourth Quarter 2016 Outlook

For fourth quarter 2016 compared to third quarter 2016, management expects the following, assuming a continuation of the current economic and low-rate environment:

    --  Average loans stable, reflecting growth in National Dealer Services,
        Technology and Life Sciences and small increases in several other lines
        of business, offset by seasonality in Mortgage Banker and a continued
        decline in Energy.
    --  Net interest income slightly higher, reflecting benefits from a decline
        in wholesale funding costs and an increase in LIBOR.
    --  Provision for credit losses expected to remain low, with net charge-offs
        below historical norms. Provision and net charge-offs expected to be
        between second quarter 2016 and third quarter 2016 levels.
    --  Noninterest income relatively stable, excluding income from bank-owned
        life insurance and deferred compensation asset returns, with fee income
        expected to remain strong at third quarter 2016 levels.
    --  Noninterest expenses lower, excluding an estimated $30 million to $35
        million in restructuring expense, with GEAR Up expense savings of
        approximately $25 million, primarily salaries and benefits (including
        pension); seasonal increases in outside processing, marketing and
        occupancy expected to be partially offset by third quarter 2016 level of
        deferred compensation expense not expected to repeat.
    --  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 September 30, 2016. The accompanying narrative addresses third quarter 2016 results compared to second quarter 2016.

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




    (dollar amounts
     in millions)     3rd Qtr '16        2nd Qtr '16           3rd Qtr '15
    ---------------   -----------        -----------           -----------

    Business Bank                 $192               91%                        $155          93%                   $195 85%

    Retail Bank                 1         -                    (2)               (1)              13           6

    Wealth Management          18         9                      13                  8               21           9
    -----------------         ---       ---                     ---                ---              ---         ---

                              211      100%                    166               100%             229        100%

    Finance                  (61)                        (63)                          (94)

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

         Total                    $149                                     $104                         $136
         -----                    ----                                     ----                         ----

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


    Business Bank


     (dollar
     amounts
     in
     millions)    3rd Qtr '16 2nd Qtr '16  3rd Qtr '15
     ---------    ----------- -----------  -----------

    Net
     interest
     income                           $361                        $355        $378

     Provision
     for
     credit
     losses                 2                              46              30

     Noninterest
     income               145                             144             144

     Noninterest
     expenses             215               (a)           222 (a)         198

    Net
     income               192                             155             195


    Net
     credit-
     related
     charge-
     offs                  14                              42              23


     Selected
     average
     balances:

    Assets             39,618                          39,983          39,768

    Loans              38,243                          38,574          38,113

    Deposits           30,019                          28,441          31,405
    --------           ------                          ------          ------

    (a)               Included restructuring
                      charges of $10 million in
                      the third quarter 2016
                      and $26 million in the
                      second quarter 2016.

    --  Average loans decreased $331 million, primarily reflecting decreases in
        Energy, National Dealer Services and Technology and Life Sciences,
        partially offset by an increase in Mortgage Banker Finance.
    --  Average deposits increased $1.6 billion, primarily reflecting increases
        in general Middle Market, Commercial Real Estate and Corporate Banking.
    --  Net interest income increased $6 million, primarily reflecting the
        benefit from one additional day in the third quarter, the impact of a
        second quarter 2016 negative residual value adjustment to assets in the
        leasing portfolio and an increase in net funds transfer pricing (FTP)
        credits, partially offset by the impact of a decrease in average loan
        balances. The increase in net FTP credits primarily reflected the
        benefit from the increase in average deposits partially offset by the
        impact of higher funding costs.
    --  The provision for credit losses decreased $44 million, primarily
        reflecting decreases in Energy and Technology and Life Sciences, in part
        due to lower loan balances, partially offset by an increase in general
        Middle Market.
    --  Noninterest income increased $1 million, primarily due to an increase in
        syndication agent fees.
    --  Noninterest expenses decreased $7 million, primarily reflecting a
        decrease in restructuring charges, partially offset by a decrease in
        gains from the sale of leased assets and an increase in outside
        processing fees.

    Retail Bank


     (dollar
     amounts
     in
     millions)   3rd Qtr '16 2nd Qtr '16   3rd Qtr '15
     ---------   ----------- -----------   -----------

    Net
     interest
     income                           $156                        $155        $158

     Provision
     for
     credit
     losses               10                                1               2

     Noninterest
     income               50                               48              49

     Noninterest
     expenses            195                (a)           205 (a)         185

    Net
     income                1                              (2)             13


    Net
     credit-
     related
     charge-
     offs                  3                                1               1


     Selected
     average
     balances:

    Assets             6,544                            6,558           6,518

    Loans              5,871                            5,879           5,835

    Deposits          23,654                           23,546          23,079
    --------          ------                           ------          ------

    (a)               Included restructuring
                      charges of $8 million in
                      the third quarter 2016
                      and $19 million in the
                      second quarter 2016.

    --  Average deposits increased $108 million, primarily reflecting an
        increase in noninterest-bearing Small Business deposits.
    --  Net interest income increased $1 million, primarily the result of the
        FTP benefit provided by the increase in average deposits.
    --  The provision for credit losses increased $9 million, primarily due to
        an increase in reserves for Small Business.
    --  Noninterest income increased $2 million, primarily reflecting an
        increase in customer derivative income.
    --  Noninterest expenses decreased $10 million, primarily reflecting a
        decrease in restructuring charges.

    Wealth Management


    (dollar
     amounts in
     millions)        3rd Qtr '16 2nd Qtr '16  3rd Qtr '15
    -----------       ----------- -----------  -----------

    Net
     interest
     income                                $41                       $42       $45

    Provision
     for credit
     losses                   (1)                             3           (3)

    Noninterest
     income                    61                             62            59

    Noninterest
     expenses                  75               (a)           81 (a)        75

    Net income                 18                             13            21


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


    Selected
     average
     balances:

    Assets                  5,283                          5,215         5,228

    Loans                   5,092                          5,016         5,024

    Deposits                4,030                          4,213         4,188
    --------                -----                          -----         -----

    (a)               Included restructuring
                      charges of $2 million in
                      the third quarter 2016
                      and $8 million in the
                      second quarter 2016.

    --  Average loans increased $76 million, primarily reflecting an increase in
        Private Banking.
    --  Average deposits decreased $183 million, primarily reflecting decreases
        in money market and checking deposits, partially offset by an increase
        in noninterest-bearing deposits.
    --  The provision for credit losses decreased $4 million, primarily
        reflecting a decrease in net charge-offs.
    --  Noninterest income decreased $1 million, primarily due to a decrease in
        fiduciary income.
    --  Noninterest expenses decreased $6 million, primarily reflecting a
        decrease in restructuring charges.

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 September 30, 2016.

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




    (dollar
     amounts
     in
     millions) 3rd Qtr '16        2nd Qtr '16           3rd Qtr '15
    ---------- -----------        -----------           -----------

    Michigan                $51               24%                        $57          34%                   $70 31%

    California          75        35                      50                30               62          27

    Texas               33        16                       3                 2               36          16

    Other
     Markets            52        25                      56                34               61          26
    --------           ---       ---                     ---               ---              ---         ---

                       211      100%                    166              100%             229        100%

    Finance &
     Other (a)        (62)                        (62)                         (93)
    ----------         ---                          ---                           ---

         Total             $149                                     $104                        $136
         -----             ----                                     ----                        ----

    (a) Includes items not
     directly associated with the
     geographic markets.

    --  Average loans decreased $274 million in Texas, $172 million in Michigan
        and $71 million in California. The decrease in Texas primarily reflected
        a decrease in Energy, partially offset by an increase in Commercial Real
        Estate, while the decrease in Michigan primarily reflected a decrease in
        general Middle Market and the decrease in California primarily reflected
        a decrease in Technology and Life Sciences, partially offset by an
        increase in Commercial Real Estate.
    --  Average deposits increased $741 million in California and $391 million
        in Michigan, and decreased $192 million in Texas. General Middle Market
        deposits increased in California and Michigan, and decreased in Texas.
        The increase in California also reflected an increase in Commercial Real
        Estate, while the decrease in Texas also reflected a decrease in
        Technology and Life Sciences.
    --  Net interest income increased $3 million in Michigan and $3 million in
        California, and decreased $1 million in Texas. The increases in Michigan
        and California primarily reflected the FTP benefit from higher deposit
        balances and one additional day in the third quarter, partially offset
        by the impact of lower loan balances and higher FTP funding costs. The
        decrease in Texas primarily reflected an increase in FTP funding costs.
    --  The provision for credit losses decreased $35 million in Texas and $21
        million in California, and increased $10 million in Michigan. The
        decrease in Texas primarily reflected a decrease in Energy, in part due
        to lower loan balances. In California, the decrease primarily reflected
        decreases in Technology and Life Sciences and general Middle Market. The
        increase in Michigan primarily reflected an increase in general Middle
        Market.
    --  Noninterest income increased $5 million in California, $2 million in
        Texas and $1 million in Michigan. The increase in California was
        primarily due to increases in warrant income, syndication agent fees and
        card fees. The increases in both Texas and Michigan were primarily due
        to increases in syndication agent fees.
    --  Noninterest expenses decreased $11 million in Texas and $10 million in
        California and increased $2 million in Michigan. Restructuring charges
        decreased in all three primary markets. In addition to the impact of
        restructuring charges, the decrease in Texas reflected small decreases
        in several other categories and the increase in Michigan reflected a
        decrease in gains from the sale of leased assets.

    Michigan Market


    (dollar
     amounts
     in
     millions)      3rd Qtr '16 2nd Qtr '16  3rd Qtr '15
    ----------      ----------- -----------  -----------

    Net
     interest
     income                             $169                        $166        $179

     Provision
     for
     credit
     losses                  13                               3               6

     Noninterest
     income                  82                              81              84

     Noninterest
     expenses               161               (a)           159 (a)         152

    Net
     income                  51                              57              70


    Net
     credit-
     related
     charge-
     offs
     (recoveries)             1                               -              9


     Selected
     average
     balances:

    Assets               13,174                          13,299          13,856

    Loans                12,488                          12,660          13,223

    Deposits             21,944                          21,553          21,946
    --------             ------                          ------          ------

    (a)               Included restructuring
                      charges of $5 million in
                      the third quarter 2016
                      and $15 million in the
                      second quarter 2016.


    California Market


     (dollar
     amounts
     in
     millions)        3rd Qtr '16 2nd Qtr '16   3rd Qtr '15
     ---------        ----------- -----------   -----------

    Net
     interest
     income                                $181                        $178        $186

     Provision
     for
     credit
     losses                   (4)                              17              24

     Noninterest
     income                    44                               39              38

     Noninterest
     expenses                 110                (a)           120 (a)         101

    Net
     income                    75                               50              62


    Net
     credit-
     related
     charge-
     offs                       -                              17              10


     Selected
     average
     balances:

    Assets                 17,933                           17,998          17,060

    Loans                  17,637                           17,708          16,789

    Deposits               17,674                           16,933          18,371
    --------               ------                           ------          ------

    (a)               Included restructuring
                      charges of $5 million in
                      the third quarter 2016
                      and $16 million in the
                      second quarter 2016.


    Texas Market


     (dollar
     amounts
     in
     millions)   3rd Qtr '16 2nd Qtr '16   3rd Qtr '15
     ---------   ----------- -----------   -----------

    Net
     interest
     income                           $118                        $119        $129

     Provision
     for
     credit
     losses              (3)                              32              10

     Noninterest
     income               33                               31              34

     Noninterest
     expenses            102                (a)           113 (a)          97

    Net
     income
     (loss)               33                                3              36


    Net
     credit-
     related
     charge-
     offs                 10                               31               4


     Selected
     average
     balances:

    Assets            11,014                           11,287          11,578

    Loans             10,566                           10,840          10,997

    Deposits           9,860                           10,052          10,753
    --------           -----                           ------          ------

    (a)               Included restructuring
                      charges of $7 million in
                      the third quarter 2016
                      and $15 million in the
                      second quarter 2016.

Conference Call and Webcast

Comerica will host a conference call to review third quarter 2016 financial results at 7 a.m. CT Tuesday, October 18, 2016. Interested parties may access the conference call by calling (877) 523-5249 or (210) 591-1147 (event ID No. 67807311). 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, "Item 1A. Risk Factors" on page 54 of Comerica's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and "Item 1A. Risk Factors" on page 62 of Comerica's Quarterly Report on Form 10-Q for the quarter ended June 30, 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                                 Nine Months Ended
                                                            ------------------                                 -----------------

                                            September 30, June 30,   September 30,               September 30,

    (in millions, except
     per share data)

                    2016                             2016      2015                 2016      2015
                    ----                             ----      ----                 ----      ----

    PER COMMON SHARE AND
     COMMON STOCK DATA

    Diluted net income                                       $0.84                         $0.58                                $0.74                   $1.76    $2.20

    Cash dividends
     declared                                        0.23                      0.22          0.21                                 0.66           0.62


    Average diluted
     shares (in
     thousands)                                   176,184                   177,195       180,714                              176,476        181,807
    ---------------                               -------                   -------       -------                              -------        -------

    KEY RATIOS

    Return on average
     common shareholders'
     equity                                         7.80%                    5.44%        7.19%                               5.46%         7.20%

    Return on average
     assets                                          0.82                      0.59          0.76                                 0.59           0.78

    Common equity tier 1
     and tier 1 risk-
     based capital ratio
     (a)                                            10.68                     10.49         10.51

    Total risk-based
     capital ratio (a)                              12.82                     12.74         12.82

    Leverage ratio (a)                              10.14                     10.39         10.28

    Common equity ratio                             10.42                     10.79         10.73

    Tangible common
     equity ratio (b)                                9.64                      9.98          9.91
    -----------------                                ----                      ----          ----

    AVERAGE BALANCES

    Commercial loans                                       $31,132                       $31,511                              $31,900                 $31,152  $31,596

    Real estate
     construction loans                             2,646                     2,429         1,833                                2,397          1,859

    Commercial mortgage
     loans                                          9,012                     9,033         8,691                                9,002          8,648

    Lease financing                                   662                       730           788                                  706            793

    International loans                             1,349                     1,396         1,401                                1,388          1,455

    Residential mortgage
     loans                                          1,883                     1,880         1,882                                1,885          1,872

    Consumer loans                                  2,522                     2,490         2,477                                2,493          2,432
                                                    -----                     -----         -----                                -----          -----

    Total loans                                    49,206                    49,469        48,972                               49,023         48,655


    Earning assets                                 67,648                    65,597        66,191                               65,796         64,561

    Total assets                                   72,909                    70,668        71,333                               70,942         69,688


    Noninterest-bearing
     deposits                                      30,454                    28,376        28,623                               28,966         27,569

    Interest-bearing
     deposits                                      27,611                    28,145        30,517                               28,136         30,282
                                                   ------                    ------        ------                               ------         ------

    Total deposits                                 58,065                    56,521        59,140                               57,102         57,851


    Common shareholders'
     equity                                         7,677                     7,654         7,559                                7,654          7,508
    --------------------                            -----                     -----         -----                                -----          -----

    NET INTEREST INCOME

    Net interest income                                       $450                          $445                                 $422                  $1,342   $1,256

    Net interest margin
     (fully taxable
     equivalent)                                    2.66%                    2.74%        2.54%                               2.74%         2.61%
    -------------------                              ----                      ----          ----                                 ----           ----

    CREDIT QUALITY

    Total nonperforming
     assets                                                   $660                          $635                                 $381


    Loans past due 90
     days or more and
     still accruing                                    48                        35             5


    Net credit-related
     charge-offs                                       16                        47            23                                      $121                $49


    Allowance for loan
     losses                                           727                       729           622

    Allowance for credit
     losses on lending-
     related commitments                               45                        43            48
                                                      ---                       ---           ---

    Total allowance for
     credit losses                                    772                       772           670


    Allowance for loan
     losses as a
     percentage of total
     loans                                          1.48%                    1.45%        1.27%

    Net credit-related
     charge-offs as a
     percentage of
     average total loans                             0.13                      0.38          0.19                                0.33%         0.14%

    Nonperforming assets
     as a percentage of
     total loans and
     foreclosed property                             1.34                      1.26          0.78

    Allowance for loan
     losses as a
     percentage of total
     nonperforming loans                              114                       119           169
    --------------------                              ---                       ---           ---

    (a)              September 30, 2016 ratios are
                     estimated.

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


     CONSOLIDATED BALANCE SHEETS

     Comerica Incorporated and
      Subsidiaries


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

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

                                           (unaudited)  (unaudited)                  (unaudited)

    ASSETS

    Cash and due from banks                                  $1,292                                    $1,172              $1,157  $1,101


    Interest-bearing deposits with banks          6,748                      2,938                       4,990      6,099

    Other short-term investments                     92                        100                         113        107


    Investment securities available-for-
     sale                                        10,789                     10,712                      10,519      8,749

    Investment securities held-to-
     maturity                                     1,695                      1,807                       1,981      1,863


    Commercial loans                             31,152                     32,360                      31,659     31,777

    Real estate construction loans                2,743                      2,553                       2,001      1,874

    Commercial mortgage loans                     9,013                      9,038                       8,977      8,787

    Lease financing                                 648                        684                         724        751

    International loans                           1,303                      1,365                       1,368      1,382

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

    Consumer loans                                2,541                      2,524                       2,485      2,491
    --------------                                -----                      -----                       -----      -----

    Total loans                                  49,274                     50,380                      49,084     48,942

    Less allowance for loan losses                (727)                     (729)                      (634)     (622)
    ------------------------------                 ----                       ----                        ----       ----

    Net loans                                    48,547                     49,651                      48,450     48,320


    Premises and equipment                          528                        544                         550        541

    Accrued income and other assets               4,433                      4,356                       4,117      4,232
    -------------------------------               -----                      -----                       -----      -----

    Total assets                                            $74,124                                   $71,280             $71,877 $71,012
    ------------                                            -------                                   -------             ------- -------


    LIABILITIES AND SHAREHOLDERS' EQUITY

    Noninterest-bearing deposits                            $31,776                                   $28,559             $30,839 $28,697


    Money market and interest-bearing
     checking deposits                           22,436                     22,539                      23,532     23,948

    Savings deposits                              2,052                      2,022                       1,898      1,853

    Customer certificates of deposit              2,967                      3,230                       3,552      4,126

    Foreign office time deposits                     30                         24                          32        144
    ----------------------------                    ---                        ---                         ---        ---

    Total interest-bearing deposits              27,485                     27,815                      29,014     30,071
    -------------------------------              ------                     ------                      ------     ------

    Total deposits                               59,261                     56,374                      59,853     58,768


    Short-term borrowings                            12                         12                          23        109

    Accrued expenses and other
     liabilities                                  1,234                      1,279                       1,383      1,413

    Medium- and long-term debt                    5,890                      5,921                       3,058      3,100
    --------------------------                    -----                      -----                       -----      -----

    Total liabilities                            66,397                     63,586                      64,317     63,390


    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                               2,174                      2,165                       2,173      2,165

    Accumulated other comprehensive loss          (292)                     (295)                      (429)     (345)

    Retained earnings                             7,262                      7,157                       7,084      7,007

    Less cost of common stock in treasury
     -56,096,416 shares at 9/30/16,
     54,247,325 shares at 6/30/16,
     52,457,113 shares at 12/31/15, and
     51,010,418 shares at 9/30/15               (2,558)                   (2,474)                    (2,409)   (2,346)
    -------------------------------------        ------                     ------                      ------     ------

    Total shareholders' equity                    7,727                      7,694                       7,560      7,622
    --------------------------                    -----                      -----                       -----      -----

    Total liabilities and shareholders'
     equity                                                 $74,124                                   $71,280             $71,877 $71,012
    -----------------------------------                     -------                                   -------             ------- -------


    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

    Comerica Incorporated and Subsidiaries


                                                   Three Months Ended                Nine Months Ended

                                                     September 30,                     September 30,
                                                     -------------                     -------------

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

    INTEREST INCOME

    Interest and fees on
     loans                                                  $411                 $390                          $1,223 $1,156

    Interest on investment
     securities                                      61                 54                     185         160

    Interest on short-
     term investments                                 8                  4                      17          11
    ------------------                              ---                ---                     ---         ---

    Total interest income                           480                448                   1,425       1,327

    INTEREST EXPENSE

    Interest on deposits                             10                 11                      30          33

    Interest on medium-
     and long-term debt                              20                 15                      53          38
    -------------------                             ---                ---                     ---         ---

    Total interest expense                           30                 26                      83          71
    ----------------------                          ---                ---                     ---         ---

    Net interest income                             450                422                   1,342       1,256

    Provision for credit
     losses                                          16                 26                     213          87
    --------------------                            ---                ---                     ---         ---

    Net interest income
     after provision for
     credit losses                                  434                396                   1,129       1,169

    NONINTEREST INCOME

    Card fees                                        76                 71                     224         203

    Service charges on
     deposit accounts                                55                 57                     165         168

    Fiduciary income                                 47                 47                     142         142

    Commercial lending
     fees                                            26                 22                      68          69

    Letter of credit fees                            12                 13                      38          39

    Bank-owned life
     insurance                                       12                 10                      30          29

    Foreign exchange
     income                                          10                 10                      31          29

    Brokerage fees                                    5                  5                      14          13

    Net securities losses                             -                 -                    (3)        (2)

    Other noninterest
     income                                          29                 25                      75          79
    -----------------                               ---                ---                     ---         ---

    Total noninterest
     income                                         272                260                     784         769

    NONINTEREST EXPENSES

    Salaries and benefits
     expense                                        247                243                     742         747

    Outside processing fee
     expense                                         86                 83                     247         239

    Net occupancy expense                            40                 41                     117         118

    Equipment expense                                13                 13                      40          39

    Restructuring charges                            20                  -                     73           -

    Software expense                                 31                 26                      90          73

    FDIC insurance expense                           14                  9                      39          27

    Advertising expense                               5                  6                      15          17

    Litigation-related
     expense                                          -               (3)                      -       (32)

    Other noninterest
     expenses                                        37                 39                     106         117
    -----------------                               ---                ---                     ---         ---

    Total noninterest
     expenses                                       493                457                   1,469       1,345
    -----------------                               ---                ---                   -----       -----

    Income before income
     taxes                                          213                199                     444         593

    Provision for income
     taxes                                           64                 63                     131         188
    --------------------                            ---                ---                     ---         ---

    NET INCOME                                      149                136                     313         405

    Less income allocated
     to participating
     securities                                       1                  2                       3           5
    ---------------------                           ---                ---                     ---         ---

    Net income
     attributable to
     common shares                                          $148                 $134                            $310   $400
    ----------------                                        ----                 ----                            ----   ----

    Earnings per common
     share:

    Basic                                                  $0.87                $0.76                           $1.80  $2.27

    Diluted                                        0.84               0.74                    1.76        2.20


    Comprehensive income                            152                187                     450         472


    Cash dividends
     declared on common
     stock                                           40                 37                     115         110

    Cash dividends
     declared per common
     share                                         0.23               0.21                    0.66        0.62
    --------------------                           ----               ----                    ----        ----


    CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

    Comerica Incorporated and Subsidiaries


                                                Third     Second     First    Fourth     Third                              Third Quarter 2016 Compared To:

    (in millions, except
     per share data)


                   Quarter                     Quarter    Quarter   Quarter   Quarter             Second Quarter 2016            Third Quarter 2015

                     2016                          2016       2016       2015        2015               Amount      Percent              Amount      Percent
                     ----                          ----       ----       ----        ----               ------      -------              ------      -------

    INTEREST INCOME

    Interest and fees on
     loans                                                   $411                           $406                              $406                            $395           $390                     $5             1%   $21   5%

    Interest on investment
     securities                                      61                   62                   62                        56                   54                       (1)     (1)             7            14

    Interest on short-
     term investments                                 8                    5                    4                         6                    4                         3       62              4            67
    ------------------                              ---                  ---                  ---                       ---                  ---                       ---      ---            ---           ---

    Total interest income                           480                  473                  472                       457                  448                         7        1             32             7

    INTEREST EXPENSE

    Interest on deposits                             10                   10                   10                        10                   11                         -              -          (1)           (9)

    Interest on medium-
     and long-term debt                              20                   18                   15                        14                   15                         2       12              5            37
    -------------------                             ---                  ---                  ---                       ---                  ---                       ---      ---            ---           ---

    Total interest expense                           30                   28                   25                        24                   26                         2        8              4            18
    ----------------------                          ---                  ---                  ---                       ---                  ---                       ---      ---            ---           ---

    Net interest income                             450                  445                  447                       433                  422                         5        1             28             6

    Provision for credit
     losses                                          16                   49                  148                        60                   26                      (33)    (67)          (10)         (38)
    --------------------                            ---                  ---                  ---                       ---                  ---                       ---      ---            ---           ---

    Net interest income
     after provision                                434                  396                  299                       373                  396                        38        9             38             9

    for credit losses

    NONINTEREST INCOME

    Card fees                                        76                   76                   72                        73                   71                         -              -            5              7

    Service charges on
     deposit accounts                                55                   55                   55                        55                   57                         -              -          (2)           (2)

    Fiduciary income                                 47                   49                   46                        45                   47                       (2)     (3)             -                   -

    Commercial lending
     fees                                            26                   22                   20                        30                   22                         4       12              4            12

    Letter of credit fees                            12                   13                   13                        14                   13                       (1)     (1)           (1)          (3)

    Bank-owned life
     insurance                                       12                    9                    9                        11                   10                         3       37              2            18

    Foreign exchange
     income                                          10                   11                   10                        11                   10                       (1)              -            -             -

    Brokerage fees                                    5                    5                    4                         4                    5                         -              -            -             -

    Net securities losses                             -                 (1)                 (2)                        -                   -                        1       38              -                   -

    Other noninterest
     income                                          29                   29                   17                        23                   25                         -              -            4             14
    -----------------                               ---                  ---                  ---                       ---                  ---                       ---            ---          ---            ---

    Total noninterest
     income                                         272                  268                  244                       266                  260                         4        2             12             5

    NONINTEREST EXPENSES

    Salaries and benefits
     expense                                        247                  247                  248                       262                  243                         -              -            4              2

    Outside processing fee
     expense                                         86                   83                   78                        79                   83                         3        3              3             3

    Net occupancy expense                            40                   39                   38                        41                   41                         1               -          (1)           (3)

    Equipment expense                                13                   14                   13                        14                   13                       (1)     (5)             -                   -

    Restructuring charges                            20                   53                    -                        -                   -                     (33)    (63)            20                  n/m

    Software expense                                 31                   30                   29                        26                   26                         1        1              5            20

    FDIC insurance expense                           14                   14                   11                        10                    9                         -              -            5             62

    Advertising expense                               5                    6                    4                         7                    6                       (1)    (22)           (1)         (13)

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

    Other noninterest
     expenses                                        37                   32                   37                        43                   39                         5       15            (2)          (7)
    -----------------                               ---                  ---                  ---                       ---                                           ---      ---            ---           ---

    Total noninterest
     expenses                                       493                  518                  458                       482                  457                      (25)     (5)            36             8
    -----------------                               ---                  ---                  ---                       ---                  ---                       ---      ---            ---           ---

    Income before income
     taxes                                          213                  146                   85                       157                  199                        67       45             14             7

    Provision for income
     taxes                                           64                   42                   25                        41                   63                        22       48              1                    -
    --------------------                            ---                  ---                  ---                       ---                  ---                       ---      ---            ---                  ---

    NET INCOME                                      149                  104                   60                       116                  136                        45       44             13            10

    Less income allocated
     to participating
     securities                                       1                    1                    1                         1                    2                         -              -          (1)           (4)
    ---------------------                           ---                  ---                  ---                       ---                  ---                       ---            ---          ---            ---

    Net income
     attributable to
     common shares                                           $148                           $103                               $59                            $115           $134                    $45            44%   $14  10%
    ----------------                                         ----                           ----                               ---                            ----           ----                    ---            ---    ---  ---

    Earnings per common
     share:

    Basic                                                   $0.87                          $0.60                             $0.34                           $0.65          $0.76                  $0.27            45% $0.11  14%

    Diluted                                        0.84                 0.58                 0.34                      0.64                 0.74                      0.26       45           0.10            14


    Comprehensive income                            152                  137                  161                        32                  187                        15       11           (35)         (19)


    Cash dividends
     declared on common
     stock                                           40                   38                   37                        37                   37                         2        3              3             6

    Cash dividends
     declared per common
     share                                         0.23                 0.22                 0.21                      0.21                 0.21                      0.01        5           0.02            10
    --------------------                           ----                 ----                 ----                      ----                 ----                      ----      ---           ----           ---

    n/m - not meaningful


    ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)

    Comerica Incorporated and
     Subsidiaries


                                                                             2016                       2015
                                                                             ----                       ----

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


    Balance at beginning of
     period                                                   $729                 $724             $634               $622 $618


    Loan charge-offs:

    Commercial                                          24                48          72               73           30

    Commercial mortgage                                  2                 -          -               1            -

    International                                        8                 4           3                -           1

    Consumer                                             1                 2           2                2            3
    --------                                           ---               ---         ---              ---          ---

    Total loan charge-offs                              35                54          77               76           34


    Recoveries on loans
     previously charged-off:

    Commercial                                          15                 9          12                6            8

    Commercial mortgage                                  3                 2          12               11            2

    Residential mortgage                                 -                -          -               1            -

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

    Total recoveries                                    19                12          25               25           11
    ----------------                                   ---               ---         ---              ---          ---

    Net loan charge-offs                                16                42          52               51           23

    Provision for loan losses                           14                47         141               63           28

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

    Balance at end of period                                  $727                 $729             $724               $634 $622
    ------------------------                                  ----                 ----             ----               ---- ----


    Allowance for loan losses
     as a percentage of total
     loans                                           1.48%            1.45%      1.47%           1.29%       1.27%


    Net loan charge-offs as
     a percentage of average
     total loans                                      0.13              0.34        0.43             0.42         0.19
    ------------------------                          ----              ----        ----             ----         ----


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

    Comerica Incorporated and Subsidiaries


                                                                           2016                         2015
                                                                           ----                         ----

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


    Balance at
     beginning of
     period                                              $43                               $46                $45             $48       $50

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

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

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


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

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


    NONPERFORMING ASSETS (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                                                                                             2016                       2015
                                                                                                                                             ----                       ----

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


    SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS

    Nonaccrual loans:

    Business loans:

      Commercial                                                                                                    $508                           $482             $547                 $238     $214

      Real estate construction                                                                               -                      -                -               1            1

      Commercial mortgage                                                                                   44                      44                47               60           66

      Lease financing                                                                                        6                       6                 6                6            8

      International                                                                                         19                      18                27                8            8

      Total nonaccrual business loans                                                                      577                     550               627              313          297

    Retail loans:

      Residential mortgage                                                                                  23                      26                26               27           31

      Consumer:

      Home equity                                                                                           27                      28                27               27           28

      Other consumer                                                                                         4                       1                 1                -           1
      --------------                                                                                       ---                     ---               ---              ---         ---

        Total consumer                                                                                      31                      29                28               27           29
        --------------                                                                                     ---                     ---               ---              ---          ---

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

    Total nonaccrual loans                                                                                 631                     605               681              367          357

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

    Total nonperforming loans                                                                              639                     613               689              379          369

    Foreclosed property                                                                                     21                      22                25               12           12
    -------------------                                                                                    ---                     ---               ---              ---          ---

    Total nonperforming assets                                                                                      $660                           $635             $714                 $391     $381
    --------------------------                                                                                      ----                           ----             ----                 ----     ----


    Nonperforming loans as a percentage of total loans                                                   1.30%                  1.22%            1.40%           0.77%       0.75%

    Nonperforming assets as a percentage of total loans                                                   1.34                    1.26              1.45             0.80         0.78

     and foreclosed property

    Allowance for loan losses as a percentage of total                                                     114                     119               105              167          169

    nonperforming loans

    Loans past due 90 days or more and still accruing                                                                $48                            $35              $13                  $17       $5
    -------------------------------------------------                                                                ---                            ---              ---                  ---      ---


    ANALYSIS OF NONACCRUAL LOANS

    Nonaccrual loans at beginning of period                                                                         $605                           $681             $367                 $357     $349

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

    Nonaccrual business loan gross charge-offs (b)                                                        (34)                   (52)             (75)            (49)        (31)

    Nonaccrual business loans sold (c)                                                                     (2)                   (40)             (21)               -           -

    Payments/Other (d)                                                                                    (43)                   (91)             (36)            (46)        (30)
    ------------------                                                                                     ---                     ---               ---              ---          ---

    Nonaccrual loans at end of period                                                                               $631                           $605             $681                 $367     $357
    ---------------------------------                                                                               ----                           ----             ----                 ----     ----

    (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                                                                                    $34                            $52              $75                  $49      $31

        Performing business loans                                                                            -                      -                -              25            -

        Consumer and residential mortgage loans                                                              1                       2                 2                2            3
                                                                                                           ---                     ---               ---              ---          ---

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

    (c) Analysis of loans sold:

          Nonaccrual business loans                                                                                   $2                            $40              $21               $    -  $    -

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

        Total criticized loans sold                                                                                   $2                            $40              $21                   $3   $    -
                                                                                                                     ---                            ---              ---                  --- ---  ---

    (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


                                                                                 Nine Months Ended
                                                                                 -----------------

                                                           September 30, 2016                                   September 30, 2015
                                                           ------------------                                   ------------------

    (dollar amounts in
     millions)                                   Average              Average                    Average                  Average

                    Balance                     Interest  Rate (a)              Balance    Interest   Rate (a)
                    -------                     --------  -------               -------    --------   -------


    Commercial loans                                       $31,152                              $753                3.24%                                $31,596        $718   3.05%

    Real estate construction
     loans                                          2,397                    65                  3.61                             1,859               48           3.44

    Commercial mortgage
     loans                                          9,002                   236                  3.50                             8,648              220           3.40

    Lease financing                                   706                    15                  2.86                               793               19           3.13

    International loans                             1,388                    38                  3.61                             1,455               39           3.63

    Residential mortgage
     loans                                          1,885                    54                  3.81                             1,872               53           3.78

    Consumer loans                                  2,493                    62                  3.34                             2,432               59           3.23
    --------------                                  -----                   ---                  ----                             -----              ---           ----

    Total loans                                    49,023                 1,223                  3.34                            48,655            1,156           3.19


    Mortgage-backed
     securities (b)                                 9,347                   152                  2.20                             9,076              151           2.23

    Other investment
     securities                                     3,008                    33                  1.50                               950                9           1.18
    ----------------                                -----                   ---                  ----                               ---              ---           ----

    Total investment
     securities (b)                                12,355                   185                  2.03                            10,026              160           2.13


    Interest-bearing
     deposits with banks                            4,313                    16                  0.50                             5,774               11           0.25

    Other short-term
     investments                                      105                     1                  0.65                               106                -          0.78
    ----------------                                  ---                   ---                  ----                               ---              ---          ----

    Total earning assets                           65,796                 1,425                  2.90                            64,561            1,327           2.76


    Cash and due from banks                         1,098                                                 1,054

    Allowance for loan
     losses                                         (726)                                                (614)

    Accrued income and other
     assets                                         4,774                                                 4,687
                                                    -----                                                 -----

    Total assets                                           $70,942                                                            $69,688
                                                           -------                                                            -------


    Money market and
     interest-bearing
     checking deposits                                     $22,797                     20                   0.11                                $23,973             20    0.11

    Savings deposits                                1,996                     -                 0.02                             1,827                -          0.02

    Customer certificates of
     deposit                                        3,308                    10                  0.40                             4,359               12           0.37

    Foreign office time
     deposits                                          35                     -                 0.34                               123                1           1.13
    -------------------                               ---                   ---                 ----                               ---              ---           ----

    Total interest-bearing
     deposits                                      28,136                    30                  0.14                            30,282               33           0.14


    Short-term borrowings                             180                     -                 0.45                                93                -          0.05

    Medium- and long-term
     debt                                           4,695                    53                  1.51                             2,843               38           1.80
    ---------------------                           -----                   ---                  ----                             -----              ---           ----

    Total interest-bearing
     sources                                       33,011                    83                  0.33                            33,218               71           0.28


    Noninterest-bearing
     deposits                                      28,966                                                27,569

    Accrued expenses and
     other liabilities                              1,311                                                 1,393

    Total shareholders'
     equity                                         7,654                                                 7,508
                                                    -----                                                 -----

    Total liabilities and
     shareholders' equity                                  $70,942                                                            $69,688
                                                           -------                                                            -------


    Net interest income/
     rate spread                                                        $1,342                  2.57                                            $1,256           2.48
                                                                        ------                                                                 ------


    Impact of net
     noninterest-bearing
     sources of funds                                                     0.17                                                            0.13
    --------------------                                                  ----                                                          ----

    Net interest margin (as
     a percentage of average
     earning assets)                                                     2.74%                                                          2.61%
    ------------------------                                              ----                                                          ----

    (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
                                                                                                         ------------------

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

               (dollar amounts in
                    millions)                    Average              Average                  Average                   Average                 Average               Average

                    Balance                     Interest  Rate (a)              Balance   Interest   Rate (a)              Balance    Interest    Rate (a)
                    -------                     --------  -------               -------   --------   -------               -------    --------     -------


    Commercial loans                                       $31,132                             $253                3.25%                                        $31,511                      $251           3.23%                         $31,900         $243 3.04%

    Real estate construction
     loans                                          2,646                    24                 3.57                             2,429                       22                   3.62                1,833          16               3.47

    Commercial mortgage
     loans                                          9,012                    78                 3.43                             9,033                       78                   3.47                8,691          74               3.39

    Lease financing                                   662                     5                 3.30                               730                        4                   1.98                  788           6               3.16

    International loans                             1,349                    12                 3.56                             1,396                       13                   3.63                1,401          13               3.51

    Residential mortgage
     loans                                          1,883                    18                 3.74                             1,880                       17                   3.76                1,882          18               3.79

    Consumer loans                                  2,522                    21                 3.31                             2,490                       21                   3.37                2,477          20               3.21
    --------------                                  -----                   ---                 ----                             -----                      ---                   ----                -----         ---               ----

    Total loans                                    49,206                   411                 3.33                            49,469                      406                   3.31               48,972         390               3.17


    Mortgage-backed
     securities (b)                                 9,359                    50                 2.17                             9,326                       51                   2.21                9,099          50               2.21

    Other investment
     securities                                     3,014                    11                 1.51                             3,008                       11                   1.50                1,133           4               1.26
    ----------------                                -----                   ---                 ----                             -----                      ---                   ----                -----         ---               ----

    Total investment
     securities (b)                                12,373                    61                 2.01                            12,334                       62                   2.03               10,232          54               2.11


    Interest-bearing
     deposits with banks                            5,967                     8                 0.51                             3,690                        5                   0.50                6,869           4               0.25

    Other short-term
     investments                                      102                     -                0.43                               104                        -                  0.58                  118           -              0.82
    ----------------                                  ---                   ---                ----                               ---                      ---                  ----                  ---         ---              ----

    Total earning assets                           67,648                   480                 2.84                            65,597                      473                   2.91               66,191         448               2.70


    Cash and due from banks                         1,152                                                1,074                                                    1,095

    Allowance for loan
     losses                                         (749)                                               (749)                                                   (628)

    Accrued income and other
     assets                                         4,858                                                4,746                                                    4,675
                                                    -----                                                -----                                                    -----

    Total assets                                           $72,909                                                           $70,668                                                     $71,333
                                                           -------                                                           -------                                                     -------


    Money market and
     interest-bearing
     checking deposits                                     $22,415                      7                  0.12                                        $22,785                      6          0.11                        $24,298                 7 0.11

    Savings deposits                                2,042                     -                0.03                             2,010                        -                  0.02                1,860           -              0.02

    Customer certificates of
     deposit                                        3,129                     3                 0.40                             3,320                        4                   0.40                4,232           4               0.37

    Foreign office time
     deposits                                          25                     -                0.37                                30                        -                  0.35                  127           -              0.70
    -------------------                               ---                   ---                ----                               ---                      ---                  ----                  ---         ---              ----

    Total interest-bearing
     deposits                                      27,611                    10                 0.14                            28,145                       10                   0.14               30,517          11               0.14


    Short-term borrowings                              17                     -                0.47                               159                        -                  0.45                   91           -              0.04

    Medium- and long-term
     debt                                           5,907                    20                 1.36                             5,072                       18                   1.42                3,175          15               1.85
    ---------------------                           -----                   ---                 ----                             -----                      ---                   ----                -----         ---               ----

    Total interest-bearing
     sources                                       33,535                    30                 0.36                            33,376                       28                   0.33               33,783          26               0.30


    Noninterest-bearing
     deposits                                      30,454                                               28,376                                                   28,623

    Accrued expenses and
     other liabilities                              1,243                                                1,262                                                    1,368

    Total shareholders'
     equity                                         7,677                                                7,654                                                    7,559
                                                    -----                                                -----                                                    -----

    Total liabilities and
     shareholders' equity                                  $72,909                                                           $70,668                                                     $71,333
                                                           -------                                                           -------                                                     -------


    Net interest income/
     rate spread                                                          $450                 2.48                                                      $445                   2.58                                        $422              2.40
                                                                          ----                                                                          ----                                                            ----


    Impact of net
     noninterest-bearing
     sources of funds                                                     0.18                                                              0.16                                            0.14
    --------------------                                                  ----                                                            ----                                            ----

    Net interest margin (as
     a percentage of average
     earning assets)                                                     2.66%                                                            2.74%                                          2.54%
    ------------------------                                              ----                                                            ----                                            ----

    (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


    (in millions, except per
     share data)                              September 30,   June 30, March 31,        December 31, September 30,

                                2016                            2016             2016           2015           2015
                               ----                             ----             ----           ----           ----


    Commercial loans:

    Floor plan                                                  $3,778                                       $4,120             $3,902             $3,939  $3,538

    Other                                              27,374                    28,240                       27,660    27,720             28,239
    -----                                              ------                    ------                       ------    ------             ------

    Total commercial loans                             31,152                    32,360                       31,562    31,659             31,777

    Real estate construction
     loans                                              2,743                     2,553                        2,290     2,001              1,874

    Commercial mortgage loans                           9,013                     9,038                        8,982     8,977              8,787

    Lease financing                                       648                       684                          731       724                751

    International loans                                 1,303                     1,365                        1,455     1,368              1,382

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

    Consumer loans:

    Home equity                                         1,792                     1,779                        1,738     1,720              1,714

    Other consumer                                        749                       745                          745       765                777
    --------------                                        ---                       ---                          ---       ---                ---

    Total consumer loans                                2,541                     2,524                        2,483     2,485              2,491
    --------------------                                -----                     -----                        -----     -----              -----

    Total loans                                                $49,274                                      $50,380            $49,377            $49,084 $48,942
    -----------                                                -------                                      -------            -------            ------- -------


    Goodwill                                                      $635                                         $635               $635               $635    $635

    Core deposit intangible                                 8                         9                            9        10                 10

    Other intangibles                                       3                         3                            4         4                  4


    Common equity tier 1
     capital (a)                                        7,378                     7,346                        7,331     7,350              7,327

    Risk-weighted assets (a)                           69,100                    70,056                       69,319    69,731             69,718


    Common equity tier 1 and
     tier 1 risk-based
     capital ratio (a)                                 10.68%                   10.49%                      10.58%   10.54%            10.51%

    Total risk-based capital
     ratio (a)                                          12.82                     12.74                        12.84     12.69              12.82

    Leverage ratio (a)                                  10.14                     10.39                        10.60     10.22              10.28

    Common equity ratio                                 10.42                     10.79                        11.08     10.52              10.73

    Tangible common equity
     ratio (b)                                           9.64                      9.98                        10.23      9.70               9.91


    Common shareholders'
     equity per share of
     common stock                                               $44.91                                       $44.24             $43.66             $43.03  $43.02

    Tangible common equity
     per share of common
     stock (b)                                          41.15                     40.52                        39.96     39.33              39.36

    Market value per share
     for the quarter:

    High                                                47.81                     47.55                        41.74     47.44              52.93

    Low                                                 38.39                     36.27                        30.48     39.52              40.01

    Close                                               47.32                     41.13                        37.87     41.83              41.10


    Quarterly ratios:

    Return on average common
     shareholders' equity                               7.80%                    5.44%                       3.13%    6.08%             7.19%

    Return on average assets                             0.82                      0.59                         0.34      0.64               0.76

    Efficiency ratio (c)                                68.15                     72.43                        65.99     68.92              66.87


    Number of banking centers                             473                       473                          477       477                477


    Number of employees -
     full time equivalent                               8,476                     8,792                        8,869     8,880              8,941
    ---------------------                               -----                     -----                        -----     -----              -----

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

    (b)              See Reconciliation of Non-GAAP
                     Financial 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


                                                  September 30, December 31,     September 30,

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


    ASSETS

    Cash and due from
     subsidiary bank                                          $               -                       $4      $5

    Short-term investments
     with subsidiary bank                                   588                             569        563

    Other short-term
     investments                                             88                              89         89

    Investment in subsidiaries,
     principally banks                                    7,685                           7,523      7,596

    Premises and equipment                                    2                               3          2

    Other assets                                            161                             137        138
    ------------                                            ---                             ---        ---

          Total assets                                                   $8,524                    $8,325  $8,393
          ------------                                                   ------                    ------  ------


    LIABILITIES AND
     SHAREHOLDERS' EQUITY

    Medium- and long-term debt                                             $626                      $608    $618

    Other liabilities                                       171                             157        153
    -----------------                                       ---                             ---        ---

          Total liabilities                                 797                             765        771


    Common stock -$5 par
     value:

        Authorized -325,000,000
         shares

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

    Capital surplus                                       2,174                           2,173      2,165

    Accumulated other
     comprehensive loss                                   (292)                          (429)     (345)

    Retained earnings                                     7,262                           7,084      7,007

    Less cost of common stock
     in treasury -56,096,416
     shares at 9/30/16,
     52,457,113 shares at
     12/31/15 and 51,010,418
     shares at 9/30/15                                  (2,558)                        (2,409)   (2,346)
    -------------------------                            ------                          ------     ------

          Total shareholders' equity                      7,727                           7,560      7,622
          --------------------------                      -----                           -----      -----

          Total liabilities and
           shareholders' equity                                          $8,524                    $8,325  $8,393
          ---------------------                                          ------                    ------  ------


    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

    Comerica Incorporated and Subsidiaries


                                                                                       Accumulated

                                                   Common Stock                            Other                                   Total
                                                   ------------

             (in millions, except
                per share data)                Shares                    Capital    Comprehensive      Retained  Treasury   Shareholders'

                  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                                                   -                      -                      -                        -         405              -              405

    Other comprehensive
     income, net of tax                                          -                      -                      -                       67            -             -               67

    Cash dividends
     declared on common
     stock ($0.62 per
     share)                                                      -                      -                      -                        -       (110)             -            (110)

    Purchase of common
     stock                                       (3.8)                          -                   -                     -                  -             (175)     (175)

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

    Net issuance of common
     stock under employee
     stock plans                                   1.0                           -                (21)                     -               (10)                45         14

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

    Share-based
     compensation                                                -                      -                     29                         -           -             -               29

    BALANCE AT SEPTEMBER
     30, 2015                                    177.2                                $1,141                           $2,165                       $(345)             $7,007         $(2,346)  $7,622
    --------------------                         -----                                ------                           ------                        -----              ------          -------   ------


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

    Net income                                                   -                      -                      -                        -         313              -              313

    Other comprehensive
     income, net of tax                                          -                      -                      -                      137            -             -              137

    Cash dividends
     declared on common
     stock ($0.66 per
     share)                                                      -                      -                      -                        -       (115)             -            (115)

    Purchase of common
     stock                                       (5.0)                          -                   -                     -                  -             (211)     (211)

    Net issuance of common
     stock under employee
     stock plans                                   1.4                           -                (29)                     -               (20)                62         13

    Share-based
     compensation                                                -                      -                     30                         -           -             -               30

    BALANCE AT SEPTEMBER
     30, 2016                                    172.1                                $1,141                           $2,174                       $(292)             $7,262         $(2,558)  $7,727
    --------------------                         -----                                ------                           ------                        -----              ------          -------   ------


     BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)

     Comerica Incorporated and Subsidiaries


                     (dollar amounts
                        in millions)

    Three Months
     Ended September
     30, 2016                            Business            Retail             Wealth

                       Bank                                 Bank            Management        Finance      Other         Total
                       ----                                 ----            ----------        -------      -----         -----

    Earnings summary:

    Net interest
     income (expense)                                  $361                              $156                       $41                 $(114)                  $6    $450

    Provision for
     credit losses                               2                        10                           (1)            -            5                 16

    Noninterest
     income                                    145                        50                            61            13             3                272

    Noninterest
     expenses                                  215                       195                            75           (1)            9                493

    Provision
     (benefit) for
     income taxes                               97                         -                           10          (39)          (4)                64
                                               ---                       ---                          ---           ---           ---

    Net income (loss)                                  $192                                $1                       $18                  $(61)                $(1)   $149
                                                       ----                               ---                       ---                   ----                  ---    ----

    Net credit-
     related charge-
     offs
     (recoveries)                                       $14                                $3                      $(1)            $        -             $     -    $16


    Selected average
     balances:

    Assets                                          $39,618                            $6,544                    $5,283                $14,144               $7,320 $72,909

    Loans                                   38,243                     5,871                         5,092             -            -            49,206

    Deposits                                30,019                    23,654                         4,030            98           264             58,065


    Statistical data:

    Return on average
     assets (a)                              1.94%                    0.01%                        1.39%          N/M          N/M             0.82%

    Efficiency ratio
     (b)                                     42.38                     94.57                         73.07           N/M          N/M             68.15
                                             -----                     -----                         -----           ---          ---             -----


    Three Months
     Ended June 30,
     2016                                Business            Retail             Wealth

                       Bank                                 Bank            Management        Finance      Other         Total
                       ----                                 ----            ----------        -------      -----         -----

    Earnings summary:

    Net interest
     income (expense)                                  $355                              $155                       $42                 $(113)                  $6    $445

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

    Noninterest
     income                                    144                        48                            62            10             4                268

    Noninterest
     expenses                                  222                       205                            81           (1)           11                518

    Provision
     (benefit) for
     income taxes                               76                       (1)                            7          (39)          (1)                42
                                               ---                       ---                           ---           ---           ---

    Net income (loss)                                  $155                              $(2)                      $13                  $(63)                  $1    $104
                                                       ----                               ---                       ---                   ----                  ---    ----

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


    Selected average
     balances:

    Assets                                          $39,983                            $6,558                    $5,215                $13,927               $4,985 $70,668

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

    Deposits                                28,441                    23,546                         4,213            50           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)                                     44.31                    101.12                         77.65           N/M          N/M             72.43
    ----------------                         -----                    ------                         -----           ---          ---             -----


    Three Months
     Ended September
     30, 2015                            Business            Retail             Wealth

                       Bank                                 Bank            Management        Finance      Other         Total
                       ----                                 ----            ----------        -------      -----         -----

    Earnings summary:

    Net interest
     income (expense)                                  $378                              $158                       $45                 $(163)                  $4    $422

    Provision for
     credit losses                              30                         2                           (3)            -          (3)                26

    Noninterest
     income                                    144                        49                            59            12           (4)               260

    Noninterest
     expenses                                  198                       185                            75             -          (1)               457

    Provision
     (benefit) for
     income taxes                               99                         7                            11          (57)            3                 63
                                               ---                       ---                           ---           ---           ---                ---

    Net income (loss)                                  $195                               $13                       $21                  $(94)                  $1    $136
                                                       ----                               ---                       ---                   ----                  ---    ----

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


    Selected average
     balances:

    Assets                                          $39,768                            $6,518                    $5,228                $11,761               $8,058 $71,333

    Loans                                   38,113                     5,835                         5,024             -            -            48,972

    Deposits                                31,405                    23,079                         4,188           203           265             59,140


    Statistical data:

    Return on average
     assets (a)                              1.96%                    0.23%                        1.62%          N/M          N/M             0.76%

    Efficiency ratio
     (b)                                     37.98                     89.33                         71.12           N/M          N/M             66.87
    ----------------                         -----                     -----                         -----           ---          ---             -----

    (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 September
     30, 2016                            Michigan          California        Texas           Markets    & Other          Total
    ----------------                     --------          ----------        -----           -------    -------          -----

    Earnings summary:

    Net interest
     income (expense)                                 $169                              $181                       $118                   $90                $(108)   $450

    Provision for
     credit losses                              13                       (4)                       (3)               5             5                16

    Noninterest
     income                                     82                        44                         33               97            16               272

    Noninterest
     expenses                                  161                       110                        102              112             8               493

    Provision
     (benefit) for
     income taxes                               26                        44                         19               18          (43)               64
                                               ---                       ---                        ---              ---           ---               ---

    Net income (loss)                                  $51                               $75                        $33                   $52                 $(62)   $149
                                                       ---                               ---                        ---                   ---                  ----    ----

    Net credit-
     related charge-
     offs                                               $1                         $       -                       $10                    $5              $      -    $16


    Selected average
     balances:

    Assets                                         $13,174                           $17,933                    $11,014                $9,324               $21,464 $72,909

    Loans                                   12,488                    17,637                     10,566            8,515             -           49,206

    Deposits                                21,944                    17,674                      9,860            8,225           362            58,065


    Statistical data:

    Return on average
     assets (a)                              0.90%                    1.61%                     1.18%           2.23%          N/M            0.82%

    Efficiency ratio
     (b)                                     64.10                     48.56                      67.29            59.87           N/M            68.15
    ----------------                         -----                     -----                      -----            -----           ---            -----


                                                                                              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              103            14               268

    Noninterest
     expenses                                  159                       120                        113              116            10               518

    Provision
     (benefit) for
     income taxes                               28                        30                          2               22          (40)               42
                                               ---                       ---                        ---              ---           ---               ---

    Net income (loss)                                  $57                               $50                         $3                   $56                 $(62)   $104
                                                       ---                               ---                        ---                   ---                  ----    ----

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


    Selected average
     balances:

    Assets                                         $13,299                           $17,998                    $11,287                $9,172               $18,912 $70,668

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

    Deposits                                21,553                    16,933                     10,052            7,662           321            56,521


    Statistical data:

    Return on average
     assets (a)                              1.01%                    1.10%                     0.11%           2.46%          N/M            0.59%

    Efficiency ratio
     (b)                                     64.13                     55.30                      74.91            60.43           N/M            72.43
    ----------------                         -----                     -----                      -----            -----           ---            -----


                                                                                              Other     Finance

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

    Earnings summary:

    Net interest
     income (expense)                                 $179                              $186                       $129                   $87                $(159)   $422

    Provision for
     credit losses                               6                        24                         10             (11)          (3)               26

    Noninterest
     income                                     84                        38                         34               96             8               260

    Noninterest
     expenses                                  152                       101                         97              108           (1)              457

    Provision
     (benefit) for
     income taxes                               35                        37                         20               25          (54)               63
                                               ---                       ---                        ---              ---           ---               ---

    Net income (loss)                                  $70                               $62                        $36                   $61                 $(93)   $136
                                                       ---                               ---                        ---                   ---                  ----    ----

    Net credit-
     related charge-
     offs                                               $9                               $10                         $4             $       -             $      -    $23


    Selected average
     balances:

    Assets                                         $13,856                           $17,060                    $11,578                $9,020               $19,819 $71,333

    Loans                                   13,223                    16,789                     10,997            7,963             -           48,972

    Deposits                                21,946                    18,371                     10,753            7,602           468            59,140


    Statistical data:

    Return on average
     assets (a)                              1.23%                    1.27%                     1.16%           2.70%          N/M            0.76%

    Efficiency ratio
     (b)                                     57.42                     45.19                      59.48            59.00           N/M            66.87
    ----------------                         -----                     -----                      -----            -----           ---            -----

    (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


    (dollar amounts in
     millions)                            September 30,   June 30,  March 31,    December 31,   September 30,

                   2016                            2016        2016         2015            2015
                   ----                            ----        ----         ----            ----


    Tangible Common
     Equity Ratio:

    Common
     shareholders'
     equity                                                 $7,727                                      $7,694             $7,644             $7,560  $7,622

    Less:

    Goodwill                                        635                     635                             635       635                635

    Other intangible
     assets                                          11                      12                              13        14                 14
                                                    ---                     ---                             ---       ---                ---

    Tangible common
     equity                                                 $7,081                                      $7,047             $6,996             $6,911  $6,973
    ---------------                                         ------                                      ------             ------             ------  ------


    Total assets                                           $74,124                                     $71,280            $69,007            $71,877 $71,012

    Less:

    Goodwill                                        635                     635                             635       635                635

    Other intangible
     assets                                          11                      12                              13        14                 14
                                                    ---                     ---                             ---       ---                ---

    Tangible assets                                        $73,478                                     $70,633            $68,359            $71,228 $70,363
    ---------------                                        -------                                     -------            -------            ------- -------


    Common equity ratio                          10.42%                 10.79%                         11.08%   10.52%            10.73%

    Tangible common
     equity ratio                                  9.64                    9.98                           10.23      9.70               9.91
    ---------------                                ----                    ----                           -----      ----               ----


    Tangible Common
     Equity per Share
     of Common Stock:

    Common
     shareholders'
     equity                                                 $7,727                                      $7,694             $7,644             $7,560  $7,622

    Tangible common
     equity                                       7,081                   7,047                           6,996     6,911              6,973
    ---------------                               -----                   -----                           -----     -----              -----


    Shares of common
     stock outstanding
     (in millions)                                  172                     174                             175       176                177
    ------------------                              ---                     ---                             ---       ---                ---


    Common
     shareholders'
     equity per share
     of common stock                                        $44.91                                      $44.24             $43.66             $43.03  $43.02

    Tangible common
     equity per share
     of common stock                              41.15                   40.52                           39.96     39.33              39.36
    -----------------                             -----                   -----                           -----     -----              -----

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 Contact: Wayne J. Mielke, (214) 462-4463; Investor Contacts: Darlene P. Persons, (214) 462-6831; Chelsea R. Smith, (214) 462-6834
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