DETROIT, Oct. 17 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record third quarter earnings per share of $1.18, compared to $1.05
in 1999, an increase of 12 percent. Net income for the third quarter of 2000
was $192 million, up 13 percent from $170 million for the same period in 1999.
Return on common equity was 21.26 percent and return on assets was 1.89
percent, compared to 21.89 percent and 1.85 percent, respectively, for the
third quarter of 1999.
Net income for the first nine months of 2000 was $3.43 per share or $555
million, compared to $3.06 per share or $497 million for the same period in
1999, both increases of 12 percent. Return on common equity was 21.36 percent
and return on assets was 1.85 percent for the first nine months of 2000,
compared to 21.95 percent and 1.81 percent, respectively, for the first nine
months of 1999.
"Comerica's financial results in the third quarter reflect our continuing
ability to execute our core business strategy of attracting and serving high
quality business relationships while effectively managing risk, coupled with
strong fee revenue growth from our investment advisory business and
effectively controlled expenses," said Eugene A. Miller, chairman, president
and chief executive officer.
Net interest income for the third quarter of 2000 was $416 million, an
increase of $26 million or seven percent from the same period last year. This
increase was primarily due to a 10 percent increase in earning assets as
average business loans grew by $4 billion or 12 percent over last year's third
quarter. Excluding divestitures, net interest income increased $36 million or
nine percent over last year's third quarter. The net interest margin was 4.42
percent for the third quarter of 2000, compared to 4.48 percent in the second
quarter of 2000 and 4.56 percent for the third quarter of 1999.
Noninterest income was $202 million for the third quarter of 2000, an
increase of $32 million or 19 percent from the same quarter last year.
Noninterest income in the third quarter 2000 included a $4 million gain on the
sale of warrants and an additional $4 million gain associated with the sale of
revolving check credit and bankcard loans in the first quarter 2000.
Excluding the effect of these large nonrecurring items as well as the impact
the loans sold had on third quarter 1999 results, noninterest income increased
17 percent in the third quarter of 2000 when compared to the same period last
year, primarily due to strong investment advisory fee growth at Munder Capital
Management.
Noninterest expenses were $302 million for the third quarter of 2000,
compared to $277 million in 1999, an increase of nine percent. Included in
third quarter 2000 noninterest expenses is $8 million of interest associated
with preliminary settlement of Federal tax years prior to 1993 and $4 million
of marketing costs to launch a new closed-end fund. An increase in salaries
and employee benefits, due to annual merit increases and higher levels of
revenue-related incentives, was the primary factor contributing to the
remaining increase in expenses. Excluding the effect of nonrecurring items
and divestitures, noninterest expenses increased $13 million or five percent
in the third quarter of 2000 when compared to the third quarter of 1999.
The provision for credit losses was $24 million in the third quarter of
2000, an increase of $3 million compared to the third quarter of 1999. Net
charge-offs for the quarter were $21 million or 0.24 percent of average total
loans, compared with $18 million or 0.23 percent in the third quarter of 1999.
Nonperforming assets were $241 million or 0.69 percent of loans and other real
estate at September 30, 2000, compared to $237 million or 0.68 percent at June
30, 2000, and $169 million or 0.53 percent at September 30, 1999. The
allowance for credit losses as a percent of loans at September 30, 2000, was
unchanged at 1.49 percent compared to June 30, 2000, and up from 1.44 percent
at September 30, 1999.
Assets totaled $41 billion at September 30, 2000 and $37 billion at
September 30, 1999, while common shareholders' equity was $3.5 billion at
September 30, 2000, compared to $3.1 billion one year earlier. Shares of
common stock outstanding were 157 million at September 30, 2000 and 156
million at September 30, 1999. Total loans were $35 billion at September 30,
2000, compared to $32 billion a year ago. Total deposits were $26 billion at
September 30, 2000, compared to $23 billion at September 30, 1999.
Comerica Incorporated is a multi-state financial services provider
headquartered in Detroit with bank subsidiaries in Michigan, California and
Texas; banking operations in Florida; the investment services affiliate Munder
Capital Management; and businesses in several other states. Comerica also
operates banking subsidiaries in Canada and Mexico.
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
(in thousands, except per share data)
Three Months Ended
September 30
2000 1999
Interest Income
Interest and fees on loans $ 786,074 $ 631,796
Interest on investment securities:
Taxable 45,451 36,849
Exempt from federal income tax 694 1,108
Total interest on investment
securities 46,145 37,957
Interest on short-term investments 5,496 2,183
Total interest income 837,715 671,936
Interest Expense
Interest on deposits 216,764 147,147
Interest on short-term borrowings 46,313 45,596
Interest on medium- and
long-term debt 140,891 102,669
Net interest rate swap
(income)/expense 17,280 (13,868)
Total interest expense 421,248 281,544
Net interest income 416,467 390,392
Provision for credit losses 24,000 21,000
Net interest income after
provision for credit losses 392,467 369,392
Noninterest Income
Fiduciary and investment
management income 78,740 60,493
Service charges on deposit
accounts 45,205 43,162
Commercial lending fees 15,399 14,001
Letter of credit fees 10,023 10,321
Securities gains/(losses) (742) 49
Other noninterest income 53,859 42,449
Total noninterest income 202,484 170,475
Noninterest Expenses
Salaries and employee benefits 169,818 159,932
Net occupancy expense 23,847 24,648
Equipment expense 14,557 15,320
Outside processing fee expense 13,029 11,329
Other noninterest expenses 80,288 65,621
Total noninterest expenses 301,539 276,850
Income before income taxes 293,412 263,017
Provision for income taxes 101,571 92,603
Net income $ 191,841 $ 170,414
Net income applicable to
common stock $ 187,566 $ 166,139
Basic net income per common
share $ 1.20 $ 1.06
Diluted net income per common
share $ 1.18 $ 1.05
Cash dividends declared on
common stock $ 62,601 $ 56,226
Dividends per common share $ 0.40 $ 0.36
Three Months
Ended June 30
2000
Interest Income
Interest and fees on loans $ 752,057
Interest on investment securities:
Taxable 44,566
Exempt from federal income tax 748
Total interest on investment
securities 45,314
Interest on short-term investments 5,167
Total interest income 802,538
Interest Expense
Interest on deposits 186,219
Interest on short-term borrowings 64,792
Interest on medium- and
long-term debt 127,538
Net interest rate swap
(income)/expense 9,156
Total interest expense 387,705
Net interest income 414,833
Provision for credit losses 34,000
Net interest income after
provision for credit losses 380,833
Noninterest Income
Fiduciary and investment
management income 76,875
Service charges on deposit
accounts 45,466
Commercial lending fees 11,430
Letter of credit fees 11,175
Securities gains/(losses) 1,110
Other noninterest income 53,614
Total noninterest income 199,670
Noninterest Expenses
Salaries and employee benefits 164,999
Net occupancy expense 24,108
Equipment expense 14,611
Outside processing fee expense 12,363
Other noninterest expenses 79,782
Total noninterest expenses 295,863
Income before income taxes 284,640
Provision for income taxes 99,089
Net income $ 185,551
Net income applicable to
common stock $ 181,276
Basic net income per common
share $ 1.16
Diluted net income per common
share $ 1.15
Cash dividends declared on
common stock $ 62,451
Dividends per common share $ 0.40
Nine Months Ended
September 30
2000 1999
Interest Income
Interest and fees on loans $2,231,971 $1,818,483
Interest on investment securities:
Taxable 137,820 114,472
Exempt from federal income tax 2,245 3,744
Total interest on investment
securities 140,065 118,216
Interest on short-term investments 28,082 6,173
Total interest income 2,400,118 1,942,872
Interest Expense
Interest on deposits 572,154 436,628
Interest on short-term borrowings 163,564 134,374
Interest on medium- and
long-term debt 398,381 283,383
Net interest rate swap
(income)/expense 29,776 (50,379)
Total interest expense 1,163,875 804,006
Net interest income 1,236,243 1,138,866
Provision for credit losses 113,000 69,000
Net interest income after
provision for credit losses 1,123,243 1,069,866
Noninterest Income
Fiduciary and investment
management income 234,643 175,275
Service charges on deposit
accounts 134,563 127,380
Commercial lending fees 38,044 35,212
Letter of credit fees 31,892 27,832
Securities gains 621 1,941
Other noninterest income 183,088 154,380
Total noninterest income 622,851 522,020
Noninterest Expenses
Salaries and employee benefits 502,818 474,982
Net occupancy expense 72,909 71,717
Equipment expense 44,242 45,613
Outside processing fee expense 37,724 36,524
Other noninterest expenses 235,732 200,308
Total noninterest expenses 893,425 829,144
Income before income taxes 852,669 762,742
Provision for income taxes 297,561 265,834
Net income $ 555,108 $ 496,908
Net income applicable to
common stock $ 542,283 $ 484,083
Basic net income per common
share $ 3.47 $ 3.10
Diluted net income per common
share $ 3.43 $ 3.06
Cash dividends declared on
common stock $ 187,571 $ 168,556
Dividends per common share $ 1.20 $ 1.08
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)
Sept. 30, Jun. 30,
2000 2000
Assets
Cash and due from banks $ 1,519,051 $ 1,743,552
Short-term investments 170,792 257,106
Investment securities
available for sale 2,692,595 2,657,916
Commercial loans 22,170,614 22,263,002
International loans 2,483,910 2,612,539
Real estate construction
loans 2,197,799 2,046,117
Commercial mortgage loans 5,095,248 5,060,847
Residential mortgage loans 816,960 827,545
Consumer loans 1,415,889 1,399,801
Lease financing 854,999 791,550
Total loans 35,035,419 35,001,401
Less allowance for credit
losses (523,575) (520,582)
Net loans 34,511,844 34,480,819
Premises and equipment 312,992 317,601
Customers' liability on
acceptances outstanding 22,578 23,964
Accrued income and other
assets 1,655,538 1,584,520
Total assets $40,885,390 $41,065,478
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $ 6,384,881 $ 6,794,918
Interest-bearing deposits 19,135,057 18,518,091
Total deposits 25,519,938 25,313,009
Federal funds purchased and
securities sold under
agreements to repurchase 2,155,228 1,524,198
Other borrowed funds 1,130,201 1,826,838
Acceptances outstanding 22,578 23,964
Accrued expenses and other
liabilities 561,214 468,377
Medium- and long-term debt 7,650,541 8,214,808
Total liabilities 37,039,700 37,371,194
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
9/30/00, 6/30/00, 12/31/99
and 9/30/99 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares at
9/30/00, 6/30/00, 12/31/99
and 9/30/99 786,166 786,166
Capital surplus 39,765 37,103
Accumulated other comprehensive
income (14,879) (35,245)
Retained earnings 2,821,076 2,704,088
Deferred compensation (4,047) (4,390)
Less cost of common stock in
treasury - 571,201 shares at
9/30/00, 761,318 shares at
6/30/00, 715,496 shares at
12/31/99 and 896,861 shares at
9/30/99 (32,391) (43,438)
Total shareholders' equity 3,845,690 3,694,284
Total liabilities and
shareholders' equity $40,885,390 $41,065,478
Dec. 31, Sept.30,
1999 1999
Assets
Cash and due from banks $ 1,201,990 $ 1,485,739
Short-term investments 612,959 188,027
Investment securities
available for sale 2,739,464 2,125,613
Commercial loans 20,654,658 20,023,564
International loans 2,573,003 2,575,318
Real estate construction
loans 1,709,261 1,545,168
Commercial mortgage loans 4,774,052 4,513,685
Residential mortgage loans 870,029 878,223
Consumer loans 1,350,725 1,823,635
Lease financing 761,550 718,347
Total loans 32,693,278 32,077,970
Less allowance for credit
losses (476,470) (463,451)
Net loans 32,216,808 31,614,489
Premises and equipment 330,728 336,410
Customers' liability on
acceptances outstanding 43,810 25,960
Accrued income and other
assets 1,507,573 1,508,752
Total assets $38,653,332 $37,284,990
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $ 6,136,038 $ 6,430,126
Interest-bearing deposits 17,155,365 16,470,174
Total deposits 23,291,403 22,900,300
Federal funds purchased and
securities sold under
agreements to repurchase 1,332,397 956,993
Other borrowed funds 1,435,634 1,254,976
Acceptances outstanding 43,810 25,960
Accrued expenses and other
liabilities 495,587 427,728
Medium- and long-term debt 8,579,857 8,355,771
Total liabilities 35,178,688 33,921,728
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
9/30/00, 6/30/00, 12/31/99
and 9/30/99 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares at
9/30/00, 6/30/00, 12/31/99
and 9/30/99 786,166 786,166
Capital surplus 35,092 32,452
Accumulated other comprehensive
income (31,702) (22,096)
Retained earnings 2,485,204 2,379,372
Deferred compensation (2,955) (3,517)
Less cost of common stock in
treasury - 571,201 shares at
9/30/00, 761,318 shares at
6/30/00, 715,496 shares at
12/31/99 and 896,861 shares at
9/30/99 (47,161) (59,115)
Total shareholders' equity 3,474,644 3,363,262
Total liabilities and
shareholders' equity $38,653,332 $37,284,990
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
(in thousands, except per share data,
average balances and ratios)
Three Months Ended
September 30
2000 1999
Per Share and Common Stock Data
Diluted net income $ 1.18 $ 1.05
Cash dividends declared 0.40 0.36
Common shareholders' equity
(at period end) 22.95 19.91
Average diluted shares 158,622 158,311
Key Ratios (in percent)
Return on average common equity 21.26% 21.89%
Return on average assets 1.89% 1.85%
Average common equity as a
percentage of average assets 8.71% 8.22%
Core capital ratio (September 2000
estimated) 7.07% 6.91%
Total capital ratio (September 2000
estimated) 11.15% 10.86%
Leverage ratio (September 2000
estimated) 8.73% 8.35%
Average Balances (in millions)
Commercial loans (including
lease financing) $ 22,832 $ 20,483
International loans 2,537 2,629
Real estate construction loans 2,108 1,410
Commercial mortgage loans 5,073 4,510
Residential mortgage loans 825 886
Consumer loans 1,402 1,809
Total loans $ 34,777 $ 31,727
Earning assets 37,593 34,051
Total assets 40,506 36,915
Interest-bearing deposits 18,715 16,311
Noninterest-bearing deposits 6,500 6,196
Total interest-bearing
liabilities 29,685 27,013
Common shareholders' equity 3,528 3,036
Net Interest Income
Net interest income (fully
taxable equivalent basis) $ 417,407 $ 391,540
Fully taxable equivalent
adjustment 940 1,148
Net interest margin (in percent) 4.42% 4.56%
Credit Quality
Nonaccrual loans $ 236,021 $ 157,866
Reduced-rate loans 299 7,379
Other real estate 4,181 3,471
Total nonperforming assets 240,501 168,716
Loans 90 days past due 53,338 60,959
Gross charge-offs 24,461 24,223
Recoverie 3,472 6,279
Net charge-offs 20,989 17,944
Allowance for credit losses
as a percentage of total
loans (in percent) 1.49% 1.44%
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent) 0.69% 0.53%
Net loans charged off as
a percentage of average
total loans (in percent) 0.24% 0.23%
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent) 218% 275%
Additional Data
Goodwill $ 372,811 $ 323,431
Core deposit intangible 9,056 14,053
Other intangibles 1,411 1,814
Loan servicing rights 3,306 4,459
Amortization of intangibles 9,388 8,480
Three Months
Ended June 30
2000
Per Share and Common Stock Data
Diluted net income $ 1.15
Cash dividends declared 0.40
Common shareholders' equity
(at period end) 22.01
Average diluted shares 158,038
Key Ratios (in percent)
Return on average common equity 21.47%
Return on average assets 1.85%
Average common equity as a
percentage of average assets 8.42%
Core capital ratio (September 2000
estimated) 6.82%
Total capital ratio (September 2000
estimated) 10.42%
Leverage ratio (September 2000
estimated) 8.40%
Average Balances (in millions)
Commercial loans (including
lease financing) $ 22,615
International loans 2,527
Real estate construction loans 1,923
Commercial mortgage loans 5,043
Residential mortgage loans 835
Consumer loans 1,380
Total loans $ 34,323
Earning assets 37,213
Total assets 40,131
Interest-bearing deposits 17,706
Noninterest-bearing deposits 6,380
Total interest-bearing
liabilities 29,645
Common shareholders' equity 3,378
Net Interest Income
Net interest income (fully
taxable equivalent basis) $ 415,791
Fully taxable equivalent
adjustment 958
Net interest margin (in percent) 4.48%
Credit Quality
Nonaccrual loans $ 221,585
Reduced-rate loans 5,806
Other real estate 10,089
Total nonperforming assets 237,480
Loans 90 days past due 38,701
Gross charge-offs 21,324
Recoveries 4,985
Net charge-offs 16,339
Allowance for credit losses
as a percentage of total
loans (in percent) 1.49%
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent) 0.68%
Net loans charged off as
a percentage of average
total loans (in percent) 0.19%
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent) 219%
Additional Data
Goodwill $ 378,870
Core deposit intangible 10,229
Other intangibles 1,509
Loan servicing rights 3,324
Amortization of intangibles 9,413
Nine Months Ended
September 30
2000 1999
Per Share and Common Stock Data
Diluted net income $ 3.43 $ 3.06
Cash dividends declared 1.20 1.08
Common shareholder's equity
(at period end)
Average diluted shares 158,108 158,417
Key Ratios (in percent)
Return on average common equity 21.36% 21.95%
Return on average assets 1.85% 1.81%
Average common equity as a
percentage of average assets 8.47% 8.05%
Core capital ratio (September 2000
estimated)
Total capital ratio (September 2000
estimated)
Leverage ratio (September 2000
estimated)
Average Balances (in millions)
Commercial loans (including
lease financing) $ 22,387 $ 20,086
International loans 2,554 2,658
Real estate construction loans 1,934 1,265
Commercial mortgage loans 5,006 4,406
Residential mortgage loans 840 949
Consumer loans 1,384 1,813
Total loans $ 34,105 $ 31,177
Earning assets 37,077 33,668
Total assets 39,977 36,544
Interest-bearing deposits 17,851 16,244
Noninterest-bearing deposits 6,365 6,237
Total interest-bearing
liabilities 29,460 26,718
Common shareholders' equity 3,386 2,940
Net Interest Income
Net interest income (fully
taxable equivalent basis) $ 1,239,100 $ 1,142,673
Fully taxable equivalent
adjustment 2,857 3,807
Net interest margin (in percent) 4.46% 4.53%
Credit Quality
Nonaccrual loans
Reduced-rate loans
Other real estate
Total nonperforming assets
Loans 90 days past due
Gross charge-offs $ 77,516 $ 76,350
Recoveries 11,679 18,368
Net charge-offs 65,837 57,982
Allowance for credit losses
as a percentage of total
loans (in percent)
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent)
Net loans charged off as
a percentage of average
total loans (in percent) 0.26% 0.25%
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent)
Additional Data
Goodwill
Core deposit intangible
Other intangibles
Loan servicing rights
Amortization of intangibles $ 27,323 $ 25,417
