Broad-Based Improvement in Fourth Quarter Credit Quality Net
Charge-offs, Nonperforming Assets and Provision for Loan Losses All
Decline Net Interest Margin Expands 26 Basis Points Deposit Growth
Remains Strong Net Income of $17 Million for Full-Year 2009 DALLAS,
Jan. 21 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA)
today reported a fourth quarter 2009 net loss of $29 million,
compared to net income of $19 million for the third quarter 2009
and $20 million for the fourth quarter 2008. After preferred
dividends of $33 million and $34 million in the fourth quarter and
third quarters of 2009, respectively, and $17 million in the fourth
quarter 2008, the net loss applicable to common stock was $62
million, or $0.41 per diluted share, for the fourth quarter 2009,
compared to a net loss applicable to common stock of $15 million,
or $0.10 per diluted share, for the third quarter 2009 and net
income applicable to common stock of $3 million, or $0.02 per
diluted share, for the fourth quarter 2008. Fourth quarter 2009
included a $257 million provision for loan losses, compared to $311
million for the third quarter 2009 and $192 million for the fourth
quarter 2008, and net securities gains of $10 million, compared to
$107 million for the third quarter 2009 and $4 million for the
fourth quarter 2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO) (dollar
amounts in millions, except per share data) 4th Qtr '09 3rd Qtr '09
4th Qtr '08 ----------- ----------- ----------- ----------- Net
interest income $396 $385 $431 Provision for loan losses 257 311
192 Noninterest income 214 315 174 Noninterest expenses 424 399 411
Net income (loss) (29) 19 20 Preferred stock dividends to U.S.
Treasury 33 34 17 Net income (loss) applicable to common stock (62)
(15) 3 Diluted earnings (loss) per common share (0.41) (0.10) 0.02
Tier 1 capital ratio 12.46 % (a) 12.21 % 10.66 % Tangible common
equity ratio (b) 7.99 7.96 7.21 Net interest margin (c) 2.94 2.68
2.82 (a) December 31, 2009 ratio is estimated. (b) See
Reconciliation of Non-GAAP Financial Measures. (c) Excess
liquidity, represented by average balances deposited with the
Federal Reserve Bank, reduced the net interest margin by
----------------------------------------------------- 13 basis
points and 16 basis points in the fourth and third quarters of
2009, respectively, and by 3 basis points in the fourth
----------------------------------------------------- quarter of
2008. Excluding excess liquidity, the net interest margin would
have been 3.07%, 2.84% and 2.85% in each respective
------------------------------------------------------- period.
------- Net income was $17 million for full-year 2009, compared to
$213 million for full-year 2008. After preferred dividends of $134
million and $17 million in 2009 and 2008, respectively, the net
loss applicable to common stock was $117 million, or $0.77 per
diluted share, for full-year 2009, compared to net income
applicable to common stock of $196 million, or $1.29 per diluted
share, for full-year 2008. The most significant items contributing
to the decrease in net income were an increase in the provision for
credit losses of $397 million, a decline in net interest income of
$248 million and an increase in Federal Deposit Insurance
Corporation (FDIC) insurance expense of $74 million. These were
partially offset by a $176 million increase in net securities
gains, an $88 million auction-rate securities charge in 2008
(included in "litigation and operational losses"), and a $94
million decrease in salaries expense. "We saw many encouraging
signs in the fourth quarter, including improved credit metrics,
continued strong deposit growth, a slower pace of decline in loan
demand and a notable increase in the net interest margin," said
Ralph W. Babb Jr., chairman and chief executive officer. "These
positive developments lead us to believe our core fundamentals will
continue to show improvement in 2010. "With unemployment still at
10 percent, business owners and managers, as well as consumers,
remain cautious. However, our customers are conveying a more
confident tone and we are seeing more loans in the pipeline.
Combined with our solid capital position and dedicated colleagues,
we believe we are ideally positioned to develop new relationships,
and expand existing ones, as the economy continues its recovery."
Fourth Quarter and Full-Year 2009 Overview Fourth Quarter 2009
Compared to Third Quarter 2009 -- Average earning assets decreased
$3.6 billion, reflecting decreases of $2.0 billion in average loans
and $1.6 billion in other earning assets, primarily Federal Reserve
Bank deposits and investment securities. The decline in loans
slowed significantly in the fourth quarter 2009 and reflected
subdued demand from customers in a recovering economic environment.
-- Average core deposits increased $935 million in the fourth
quarter 2009, reflecting a $1.2 billion increase in
noninterest-bearing deposits and a $1.0 billion increase in money
market and NOW deposits, partially offset by a $1.3 billion
decrease in higher-cost customer certificates of deposit. -- Net
interest income increased $11 million, to $396 million for the
fourth quarter 2009 compared to $385 million for the third quarter
2009. -- The net interest margin of 2.94 percent increased 26 basis
points, from 2.68 percent in the third quarter 2009. Excluding
excess liquidity, represented by average balances deposited with
the Federal Reserve Bank, the net interest margin would have been
3.07 percent, an increase of 23 basis points from 2.84 percent in
the third quarter 2009, resulting primarily from maturing wholesale
funding. Also, Business Bank loan spreads continued to improve. --
Net credit-related charge-offs were $225 million, or 2.10 percent
of average total loans, for the fourth quarter 2009, compared to
$239 million, or 2.14 percent of average total loans, for the third
quarter 2009. The provision for loan losses was $257 million for
the fourth quarter 2009, compared to $311 million for the third
quarter 2009, and the period-end allowance to total loans ratio
increased to 2.34 percent at December 31, 2009, from 2.19 percent
at September 30, 2009. Nonaccrual loans at December 31, 2009
declined $31 million from September 30, 2009. Nonaccrual loans were
charged down 44 percent as of December 31, 2009, compared to 41
percent as of September 30, 2009 and 34 percent one year ago. --
Noninterest income decreased $101 million, primarily due to a $97
million decrease in net securities gains ($10 million in the fourth
quarter 2009 compared to $107 million in the third quarter 2009).
-- Noninterest expenses increased $25 million from the third
quarter, primarily due to increases in other real estate expense
($12 million) and severance and related expenses ($11 million, a
workforce reduction of approximately 300). -- The provision for
income taxes decreased $13 million from the third quarter,
reflecting the decrease in income before income taxes, partially
offset by the third quarter 2009 recognition of interest benefits
related to certain anticipated federal tax refunds ($9 million,
after-tax). -- The tangible common equity ratio was 7.99 percent at
December 31, 2009, an increase of three basis points from September
30, 2009. The estimated Tier 1 common ratio was 8.18 percent and
the estimated Tier 1 capital ratio was 12.46 percent at December
31, 2009, increases of 14 basis points and 25 basis points,
respectively, from September 30, 2009. Full-Year 2009 Compared to
Full-Year 2008 -- Average loans in 2009 were $46.2 billion, a
decrease of $5.6 billion from 2008, with declines in all geographic
markets, consistent with post-recessionary environments, when loan
demand is weak. Average earning assets were $58.2 billion in 2009,
a decrease of $2.2 billion from 2008, as excess liquidity and
investment securities increased. -- Average core deposits increased
$973 million, reflecting a $2.3 billion increase in
noninterest-bearing deposits, partially offset by a $1.3 billion
decrease in money market and NOW deposits. -- The net interest
margin was 2.72 percent for 2009, compared to 3.02 percent for
2008. The decrease in the net interest margin was primarily due to
loan rates declining faster than deposit rates with late 2008 rate
reductions, excess liquidity and the reduced contribution of
noninterest-bearing funds in a significantly lower rate
environment, partially offset by increased loan spreads. Excluding
excess liquidity, the net interest margin would have been 2.83
percent for 2009, compared to 3.03 percent for 2008. -- Noninterest
income increased $157 million compared to 2008, largely due to
increases in net securities gains ($176 million) and deferred
compensation asset returns ($36 million) (offset by an increase in
deferred compensation plan costs in noninterest expenses),
partially offset by decreases in fiduciary income ($38 million). --
Noninterest expenses decreased $102 million, or six percent,
compared to 2008, primarily due to decreases in salaries expense
($94 million), reflecting a decline in workforce and reduced
incentives, the provision for credit losses on lending-related
commitments ($19 million), discretionary expenses and an $88
million charge in 2008 related to the repurchase of auction-rate
securities (included in "litigation and operational expenses"),
partially offset by increases in FDIC insurance expense ($74
million), other real estate expense ($38 million) and pension
expense ($37 million). Full-time equivalent employees decreased
eight percent from year-end 2008 to year-end 2009. -- Net
credit-related charge-offs were 1.88 percent of average total loans
for 2009, compared to 91 basis points for 2008, largely due to
credit issues concentrated in residential real estate development
in the Commercial Real Estate business line. Net Interest Income
and Net Interest Margin (dollar amounts in millions) 4th Qtr '09
3rd Qtr '09 4th Qtr '08 ---------- ----------- -----------
----------- Net interest income $396 $385 $431 Net interest margin
(a) 2.94 % 2.68 % 2.82 % Selected average balances: Total earning
assets $53,953 $57,513 $61,134 Total investment securities 8,587
9,070 8,734 Federal Reserve Bank deposits (excess liquidity) 2,453
3,492 778 Total loans 42,753 44,782 51,338 Total core deposits (b)
36,742 35,807 33,098 Total noninterest- bearing deposits 14,430
13,225 10,575 (a) Excess liquidity, represented by average balances
deposited with the Federal Reserve Bank, reduced the net interest
margin by 13 basis points and 16 basis points in the fourth and
third quarters of 2009, respectively, and by 3 basis points in the
fourth quarter of 2008. Excluding excess liquidity, the net
interest margin would have been 3.07%, 2.84% and 2.85% in each
respective period. (b) Core deposits exclude other time deposits
and foreign office time deposits.
------------------------------------------------- -- The $11
million increase in net interest income in the fourth quarter 2009,
when compared to third quarter 2009, resulted primarily from an
increase in the net interest margin. -- The net interest margin of
2.94 percent increased 26 basis points, compared to third quarter
2009, primarily from maturing wholesale funding. The net interest
margin was reduced by approximately 13 basis points in the fourth
quarter 2009 from excess liquidity, which was represented by $2.5
billion of average balances deposited with the Federal Reserve
Bank, compared to a reduction of 16 basis points from $3.5 billion
of average balances in the third quarter 2009, and by three basis
points from $778 million of average balances in the fourth quarter
2008. The decrease in Federal Reserve Bank deposits was mostly due
to maturities of other time deposits (brokered retail certificates
of deposit). -- Fourth quarter 2009 average core deposits increased
$935 million compared to third quarter 2009, reflecting a $1.2
billion increase in noninterest-bearing deposits and a $1.0 billion
increase in money market and NOW deposits, partially offset by a
$1.3 billion decrease in higher-cost customer certificates of
deposit. Noninterest Income Noninterest income was $214 million for
the fourth quarter 2009, compared to $315 million for the third
quarter 2009 and $174 million for the fourth quarter 2008. The $101
million decrease in noninterest income in the fourth quarter 2009,
compared to the third quarter 2009, was primarily due to a decrease
in net securities gains on sales of mortgage-backed government
agency securities of $97 million. Selected categories of
noninterest income are highlighted in the following table. 4th Qtr
(in millions) 4th Qtr '09 3rd Qtr '09 '08 ------------- -----------
----------- ------- Net securities gains $10 $107 $4 Other
noninterest income Net loss from principal investing and warrants -
(1) (5) Deferred compensation asset returns (a) 3 4 (18) Gain on
repurchase of debt 8 7 - (a) Compensation deferred by Comerica
officers is invested in stocks and bonds to reflect the investment
------------------------------------------------- selections of the
officers. Income (loss) earned on these assets is reported in
noninterest income and
--------------------------------------------------- the offsetting
increase (decrease) in the liability is reported in salaries
expense. ------------------------------------------------------
Noninterest Expenses Noninterest expenses were $424 million for the
fourth quarter 2009, compared to $399 million for the third quarter
2009 and $411 million for the fourth quarter 2008. The $25 million
increase in noninterest expenses in the fourth quarter 2009,
compared to the third quarter 2009, was primarily due to increases
in other real estate expense ($12 million) and severance and
related expenses ($11 million). Full-time equivalent staff
decreased by approximately 54 employees from September 30, 2009 and
856 employees, or eight percent, from December 31, 2008. Certain
categories of noninterest expenses are highlighted in the table
below. 4th Qtr 3rd Qtr 4th Qtr '09 '09 '08 Salaries Regular
salaries $140 $142 $152 Severance 9 - 24 Incentives (including
commissions) 15 17 19 Deferred compensation plan costs 3 5 (18)
Share-based compensation 7 7 10 Total salaries 174 171 187 Employee
benefits Pension expense 14 14 5 Other benefits 35 37 43
Severance-related benefits 2 - 5 Total employee benefits 51 51 53
FDIC insurance expense 15 15 7 Other real estate expense 22 10 5
Credit Quality "We were pleased to see broad-based improvement in
credit quality in the fourth quarter, with declines in net
charge-offs, nonperforming assets and the provision for loan
losses," said Babb. "We also saw inflows to nonaccrual loans slow
in the fourth quarter, and our watch list loans decreased, as well.
We believe these improved credit metrics are the result of our
diligent management of credit throughout this economic cycle." --
The provision for loan losses decreased $54 million, with declines
in the Midwest, Western, Texas and Florida markets, and primarily
in the Commercial Real Estate and Middle Market business lines. --
Net credit-related charge-offs in the Commercial Real Estate
business line in the fourth quarter 2009 decreased to $62 million,
from $91 million in the third quarter 2009. Commercial Real Estate
net credit-related charge-offs decreased in Western, Texas, Florida
and Other Markets, slightly offset by an increase in the Midwest
market. -- Nonperforming assets decreased $13 million to $1.3
billion, or 3.06 percent of total loans and foreclosed property, at
December 31, 2009. -- During the fourth quarter 2009, $266 million
of loan relationships greater than $2 million were transferred to
nonaccrual status, a decrease of $95 million from the third quarter
2009. Of the transfers of loan relationships greater than $2
million to nonaccrual in the fourth quarter 2009, $85 million were
in Middle Market and $64 million were in the Commercial Real Estate
business line. Commercial Real Estate business line transfers to
nonaccrual decreased $147 million from the third quarter 2009. --
Nonaccrual loans were charged down 44 percent as of December 31,
2009, compared to 41 percent as of September 30, 2009 and 34
percent one year ago. -- Loans past due 90 days or more and still
accruing were $101 million at December 31, 2009, a decrease of $60
million compared to September 30, 2009. -- The allowance for loan
losses to total loans ratio increased to 2.34 percent at December
31, 2009, from 2.19 percent at September 30, 2009 and 1.52 percent
at December 31, 2008. (dollar amounts in millions) 4th Qtr '09 3rd
Qtr '09 4th Qtr '08 ----------- ----------- ----------- -----------
Net loan charge- offs $225 $239 $133 Net lending- related
commitment charge- offs - - - --- --- --- Total net credit- related
charge- offs 225 239 133 Net loan charge- offs/ Average total loans
2.10 % 2.14 % 1.04 % Net credit- related charge- offs/ Average
total loans 2.10 2.14 1.04 Provision for loan losses $257 $311 $192
Provision for credit losses on lending- related commitments 2 2 (2)
--- --- --- Total provision for credit losses 259 313 190
Nonperforming loans 1,181 1,196 917 Nonperforming assets (NPAs)
1,292 1,305 983 NPAs/Total loans and foreclosed property 3.06 %
2.99 % 1.94 % Loans past due 90 days or more and still accruing
$101 $161 $125 Allowance for loan losses 985 953 770 Allowance for
credit losses on lending- related commitments (a) 37 35 38 --- ---
--- Total allowance for credit losses 1,022 988 808 Allowance for
loan losses/ Total loans 2.34 % 2.19 % 1.52 % Allowance for loan
losses/ Nonperforming loans 83 80 84 (a) Included in "Accrued
expenses and other liabilities" on the consolidated balance sheets.
------------------------------------------------- Balance Sheet and
Capital Management Total assets and common shareholders' equity
were $59.3 billion and $4.9 billion, respectively, at December 31,
2009, compared to $59.6 billion and $4.9 billion, respectively, at
September 30, 2009. There were approximately 151 million common
shares outstanding at December 31, 2009. Comerica's tangible common
equity ratio was 7.99 percent at December 31, 2009. The fourth
quarter 2009 estimated Tier 1 common, Tier 1 and total risk-based
capital ratios were 8.18 percent, 12.46 percent and 16.93 percent,
respectively. Full-Year 2010 Outlook For 2010, management expects
the following, compared to 2009, based on a modestly improving
economic environment: -- Management expects low single-digit
period-end to period-end loan growth. Investment securities are
expected to remain at a level similar to year-end 2009. -- Based on
no increase in the Federal Funds rate, management expects an
average full-year net interest margin between 3.15 percent and 3.25
percent, reflecting the benefit, compared to full-year 2009, from
improved loan pricing, lower funding costs and a lower level of
excess liquidity. -- Management expects full-year net
credit-related charge-offs to decrease to between $775 million and
$825 million. The provision for credit losses is expected to be
slightly in excess of net charge-offs. -- Management expects flat
noninterest income, after excluding $243 million of 2009 net
securities gains. -- Management expects a low single-digit decrease
in noninterest expenses. -- Management expects income tax expense
to approximate 35 percent of income before income taxes less
approximately $60 million of permanent differences related to
low-income housing and bank-owned life insurance. Business Segments
Comerica's continuing operations are strategically aligned into
three major business segments: the Business Bank, the Retail Bank,
and Wealth & Institutional Management. The Finance Division
also is included as a segment. The financial results below are
based on the internal business unit structure of the Corporation
and methodologies in effect at December 31, 2009 and are presented
on a fully taxable equivalent (FTE) basis. The accompanying
narrative addresses fourth quarter 2009 results compared to third
quarter 2009. The following table presents net income (loss) by
business segment. (dollar amounts in millions) 4th Qtr '09 3rd Qtr
'09 4th Qtr '08 ------------------ ----------- -----------
----------- Business Bank $65 $22 $53 Retail Bank (12) (11) (34)
Wealth & Institutional Management 5 10 13
---------------------- --- --- --- 58 21 32 Finance (62) (7) (37)
Other (a) (25) 5 25 --------- --- --- --- Total $(29) $19 $20 -----
---- --- --- (a) Includes discontinued operations and items not
directly associated with the three major business
-----------------------------------------------------------
segments or the Finance Division. ---------------------------------
Business Bank (dollar amounts in millions) 4th Qtr '09 3rd Qtr '09
4th Qtr '08 ------------------ ----------- ----------- -----------
Net interest income (FTE) $343 $346 $329 Provision for loan losses
180 252 138 Noninterest income 77 72 61 Noninterest expenses 164
160 172 Net income 65 22 53 Net credit-related charge-offs 183 195
101 Selected average balances: Assets 32,655 34,822 41,332 Loans
32,289 34,116 40,245 Deposits 16,944 15,735 13,789 Net interest
margin 4.21 % 4.01 % 3.24 % ------------------- ---- ---- ---- --
Average loans decreased $1.8 billion, reflecting declines across
all markets and businesses. The decline in loans slowed in the
fourth quarter 2009. -- Average deposits increased $1.2 billion,
primarily due to increases in Global Corporate, Technology and Life
Sciences, Middle Market and Commercial Real Estate. -- The net
interest margin of 4.21 percent increased 20 basis points,
primarily due to an increase in deposit spreads and an increase in
noninterest-bearing deposits. Also, loan spreads continued to
improve. -- The provision for loan losses decreased $72 million,
due to decreases in Commercial Real Estate and Middle Market. --
Noninterest income increased $5 million, reflecting increases in
several fee categories. -- Noninterest expenses increased $4
million, due to increases in other real estate and severance and
related expenses, partially offset by a decrease in the provision
for credit losses on lending-related commitments. Retail Bank
(dollar amounts in millions) 4th Qtr '09 3rd Qtr '09 4th Qtr '08
------------------ ----------- ----------- ----------- Net interest
income (FTE) $129 $127 $129 Provision for loan losses 36 42 44
Noninterest income 48 50 49 Noninterest expenses 161 154 180 Net
loss (12) (11) (34) Net credit-related charge-offs 30 34 23
Selected average balances: Assets 6,257 6,445 7,007 Loans 5,733
5,904 6,379 Deposits 17,020 17,563 17,065 Net interest margin 3.02
% 2.87 % 3.01 % ------------------- ---- ---- ---- -- Average loans
decreased $171 million, across all businesses. The decline in loans
slowed in the fourth quarter 2009. -- Average deposits decreased
$543 million, primarily due to a decrease in higher-cost customer
certificates of deposit, partially offset by an increase in
noninterest-bearing, NOW and money market deposits. -- The net
interest margin of 3.02 percent increased 15 basis points, due to
an increase in deposit spreads related to maturing higher-cost
customer certificates of deposit. -- The provision for loan losses
decreased $6 million, due to a decrease in Small Business. --
Noninterest expenses increased $7 million, primarily due to
increases in severance and related expenses and other real estate
expense. Wealth and Institutional Management (dollar amounts in
millions) 4th Qtr '09 3rd Qtr '09 4th Qtr '08 ------------------
----------- ----------- ----------- Net interest income (FTE) $42
$42 $38 Provision for loan losses 19 20 13 Noninterest income 60 66
73 Noninterest expenses 76 73 80 Net income 5 10 13 Net
credit-related charge-offs 12 10 9 Selected average balances:
Assets 4,841 4,856 4,879 Loans 4,746 4,760 4,724 Deposits 2,849
2,735 2,255 Net interest margin 3.50 % 3.48 % 3.14 %
------------------- ---- ---- ---- -- Average loans decreased $14
million. -- Average deposits increased $114 million, reflecting an
increase in noninterest-bearing, NOW and money market deposits,
partially offset by a decrease in higher-cost customer certificates
of deposit. -- The net interest margin of 3.50 percent increased
two basis points, primarily due to the benefit provided by an
increase in noninterest-bearing deposits, partially offset by a
decrease in loan spreads. -- Noninterest income decreased $6
million, primarily due to a decrease in net securities gains. --
Noninterest expenses increased $3 million, reflecting nominal
increases in several categories. Geographic Market Segments
Comerica also provides market segment results for four primary
geographic markets: Midwest, Western, Texas and Florida. In
addition to the four primary geographic markets, Other Markets and
International are also reported as market segments. The financial
results below are based on methodologies in effect at December 31,
2009 and are presented on a fully taxable equivalent (FTE) basis.
The accompanying narrative addresses fourth quarter 2009 results
compared to third quarter 2009. The following table presents net
income (loss) by market segment. (dollar amounts in 4th Qtr
millions) 4th Qtr '09 3rd Qtr '09 '08 ------------------
----------- ----------- ------- Midwest $13 $(6) $14 Western 7 (7)
2 Texas 13 7 4 Florida 3 (12) (7) Other Markets 22 29 15
International - 10 4 ------------- --- --- --- 58 21 32 Finance
& Other Businesses (a) (87) (2) (12) --------------- --- ---
--- Total $(29) $19 $20 ----- ---- --- --- (a) Includes
discontinued operations and items not directly associated with the
geographic markets.
-------------------------------------------------- Midwest Market
(dollar amounts in millions) 4th Qtr '09 3rd Qtr '09 4th Qtr '08
------------------ ----------- ----------- ----------- Net interest
income (FTE) $205 $209 $202 Provision for loan losses 102 144 59
Noninterest income 106 107 109 Noninterest expenses 192 188 218 Net
income (loss) 13 (6) 14 Net credit-related charge-offs 97 102 38
Selected average balances: Assets 16,090 16,987 19,942 Loans 15,811
16,387 18,966 Deposits 17,201 17,395 16,204 Net interest margin
4.73 % 4.72 % 4.21 % ------------------- ---- ---- ---- -- Average
loans decreased $576 million, reflecting declines in Middle Market
and Global Corporate. The decline in loans slowed in the fourth
quarter 2009. -- Average deposits decreased $194 million, due to a
decrease in Personal Banking, partially offset by an increase in
Global Corporate. -- The net interest margin of 4.73 percent
increased one basis point, primarily due to an increase in deposit
spreads related to maturing higher-cost customer certificates of
deposit. -- The provision for loan losses decreased $42 million,
primarily due to a decline in Middle Market. -- Noninterest
expenses increased $4 million, due to increases in other real
estate expense and severance and related expenses, partially offset
by a decrease in the provision for credit losses on lending-related
commitments. Western Market (dollar amounts in millions) 4th Qtr
'09 3rd Qtr '09 4th Qtr '08 ------------------ -----------
----------- ----------- Net interest income (FTE) $163 $159 $157
Provision for loan losses 79 101 70 Noninterest income 33 33 34
Noninterest expenses 110 106 114 Net income (loss) 7 (7) 2 Net
credit-related charge-offs 85 95 65 Selected average balances:
Assets 13,484 14,114 16,243 Loans 13,289 13,923 16,032 Deposits
11,899 11,146 10,762 Net interest margin 4.85 % 4.53 % 3.88 %
------------------- ---- ---- ---- -- Average loans decreased $634
million, primarily due to declines in Middle Market, Commercial
Real Estate and National Dealer Services. The decline in loans
slowed in the fourth quarter 2009. -- Average deposits increased
$753 million, primarily due to increases in Technology and Life
Sciences, Middle Market and Commercial Real Estate. -- The net
interest margin of 4.85 percent increased 32 basis points,
primarily due to the benefit provided by an increase in
noninterest-bearing deposits. -- The provision for loan losses
decreased $22 million, due to a decrease in Commercial Real Estate.
-- Noninterest expenses increased $4 million, primarily due to an
increase in other real estate expense. Texas Market (dollar amounts
in millions) 4th Qtr '09 3rd Qtr '09 4th Qtr '08 ------------------
----------- ----------- ----------- Net interest income (FTE) $78
$77 $72 Provision for loan losses 20 29 19 Noninterest income 23 22
20 Noninterest expenses 61 58 63 Net income 13 7 4 Total net
credit- related charge-offs 13 22 8 Selected average balances:
Assets 7,118 7,444 8,215 Loans 6,934 7,221 7,974 Deposits 4,737
4,609 4,070 Net interest margin 4.46 % 4.22 % 3.57 %
------------------- ---- ---- ---- -- Average loans decreased $287
million, primarily due to Energy Lending and Middle Market. The
decline in loans slowed in the fourth quarter 2009. -- Average
deposits increased $128 million, primarily due to increases in
Small Business, Global Corporate and Middle Market, partially
offset by a decline in Personal Banking. -- The net interest margin
of 4.46 percent increased 24 basis points, primarily due to an
increase in loan spreads and the benefit provided by an increase in
noninterest-bearing deposits and maturing higher-cost customer
certificates of deposit. -- The provision for loan losses decreased
$9 million, due to declines in Energy Lending and Middle Market. --
Noninterest expenses increased $3 million, reflecting nominal
increases in several categories. Florida Market (dollar amounts in
millions) 4th Qtr '09 3rd Qtr '09 4th Qtr '08 ------------------
----------- ----------- ----------- Net interest income (FTE) $10
$11 $11 Provision for loan losses - 24 14 Noninterest income 3 3 4
Noninterest expenses 9 10 11 Net income (loss) 3 (12) (7) Net
credit-related charge-offs 4 9 6 Selected average balances: Assets
1,608 1,673 1,938 Loans 1,613 1,674 1,942 Deposits 333 327 222 Net
interest margin 2.57 % 2.70 % 2.26 % ------------------- ---- ----
---- -- Average loans decreased $61 million, primarily due to
decreases in Middle Market and Commercial Real Estate. The decline
in loans slowed in the fourth quarter 2009. -- Average deposits
increased $6 million, primarily due to an increase in Private
Banking. -- The net interest margin of 2.57 percent decreased 13
basis points, primarily due to a decrease in loan spreads. -- The
provision for loan losses decreased $24 million, due decreases in
Commercial Real Estate, Middle Market and Private Banking.
Conference Call and Webcast Comerica will host a conference call to
review fourth quarter 2009 financial results at 7 a.m. CT Thursday,
January 21, 2010. Interested parties may access the conference call
by calling (800) 309-2262 or (706) 679-5261 (event ID No.
47127335). The call and supplemental financial information can also
be accessed on the Internet at http://www.comerica.com/. A replay
will be available approximately two hours following the conference
call through January 31, 2010. The conference call replay can be
accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No.
47127335). A replay of the Webcast can also be accessed via
Comerica's "Investor Relations" page at http://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 &
Institutional 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, China 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 the
reconcilement 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," "feels," "expects," "estimates,"
"seeks," "strives," "plans," "intends," "outlook," "forecast,"
"position," "target," "mission," "assume," "achievable,"
"potential," "strategy," "goal," "aspiration," "outcome,"
"continue," "remain," "maintain," "trend," "objective" and
variations of such words and similar expressions, or future or
conditional verbs such as "will," "would," "should," "could,"
"might," "can," "may" or similar expressions, as they relate to
Comerica or its management, are intended to identify
forward-looking statements. These forward-looking statements are
predicated on the beliefs and assumptions of Comerica's management
based on information known to Comerica's management as of the date
of this news release and do not purport to speak as of any other
date. Forward-looking statements may include descriptions of plans
and objectives of Comerica's management for future or past
operations, products or services, and forecasts of Comerica's
revenue, earnings or other measures of economic performance,
including statements of profitability, business segments and
subsidiaries, estimates of credit trends and global stability. Such
statements reflect the view of Comerica's management as of this
date with respect to future events and are subject to risks and
uncertainties. Should one or more of these risks materialize or
should underlying beliefs or assumptions prove incorrect,
Comerica's actual results could differ materially from those
discussed. Factors that could cause or contribute to such
differences are further economic downturns, changes in the pace of
an economic recovery and related changes in employment levels,
changes in real estate values, fuel prices, energy costs or other
events that could affect customer income levels or general economic
conditions, changes related to the headquarters relocation or to
its underlying assumptions, the effects of recently enacted
legislation, such as the Emergency Economic Stabilization Act of
2008 and the American Recovery and Reinvestment Act of 2009, and
actions taken by the U.S. Department of Treasury, the Board of
Governors of the Federal Reserve System, the Texas Department of
Banking and the Federal Deposit Insurance Corporation, the effects
of war and other armed conflicts or acts of terrorism, the effects
of natural disasters including, but not limited to, hurricanes,
tornadoes, earthquakes, fires, droughts and floods, the disruption
of private or public utilities, the implementation of Comerica's
strategies and business models, management's ability to maintain
and expand customer relationships, changes in customer borrowing,
repayment, investment and deposit practices, management's ability
to retain key officers and employees, changes in the accounting
treatment of any particular item, the impact of regulatory
examinations, declines or other changes in the businesses or
industries in which Comerica has a concentration of loans,
including, but not limited to, the automotive production industry
and the real estate business lines, the anticipated performance of
any new banking centers, the entry of new competitors in Comerica's
markets, changes in the level of fee income, changes in applicable
laws and regulations, including those concerning taxes, banking,
securities and insurance, changes in trade, monetary and fiscal
policies, including the interest rate policies of the Board of
Governors of the Federal Reserve System, fluctuations in inflation
or interest rates, changes in general economic, political or
industry conditions and related credit and market conditions, the
interdependence of financial service companies and adverse
conditions in the stock market. 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. 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.
http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO
http://photoarchive.ap.org/ DATASOURCE: Comerica Incorporated
CONTACT: Media, Wayne J. Mielke, +1-214-462-4463, or Investor,
Darlene P. Persons, +1-214-462-6831, or Walter Galloway,
+1-214-462-6834, all of Comerica Incorporated Web Site:
http://www.comerica.com/ http://www.comerica.com/
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