DETROIT, July 18 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record second quarter earnings per share of $1.15, compared to $1.03
in 1999, an increase of 12 percent. Net income for the second quarter of 2000
was $186 million, up 11 percent from $167 million for the same period in 1999.
Return on common equity was 21.47 percent and return on assets was 1.85
percent, compared to 22.08 percent and 1.83 percent, respectively, for the
second quarter of 1999.
Net income for the first six months of 2000 was $2.25 per share or $363
million, compared to $2.01 per share or $326 million for the same period in
1999, increases of 12 percent and 11 percent, respectively. Return on common
equity was 21.41 percent and return on assets was 1.83 percent for the first
six months of 2000, compared to 21.99 percent and 1.80 percent, respectively,
for the first six months of 1999.
"Comerica's second quarter financial results reflect our continuing
ability to generate business loans while effectively managing risk, coupled
with strong fee revenue growth from our investment advisory business," said
Eugene A. Miller, chairman, president and chief executive officer.
Net interest income for the second quarter of 2000 was $415 million, an
increase of $35 million or nine percent from the same period last year. This
increase was primarily due to an increase in average business loans of $4
billion or 13 percent over last year's second quarter. The net interest
margin remained stable and was 4.48 percent for the second quarter of 2000,
compared to 4.47 percent in the first quarter of 2000 and 4.53 percent for the
second quarter of 1999. Excluding divestitures, net interest income increased
$46 million or 12 percent over last year's second quarter.
Noninterest income was $200 million for the second quarter of 2000, an
increase of $5 million or three percent from the same quarter last year.
Noninterest income in the second quarter 2000 included a nonrecurring gain of
$6 million from the demutualization of an insurance carrier. Included in
second quarter 1999 noninterest income was a $21 million gain on the sale of
Comerica's ownership in an ATM network provider. Excluding the effect of
these large nonrecurring items, as well as divestitures in both periods,
noninterest income increased 14 percent in the second quarter of 2000,
compared to the second quarter of 1999, primarily due to strong investment
advisory fee growth at Munder Capital Management.
Noninterest expenses were $296 million for the second quarter of 2000,
compared to $289 million in 1999, and included contributions to Comerica's
charitable foundation of $6 million and $5 million, respectively. Salaries
and employee benefits, due to annual merit increases and higher levels of
revenue-related incentives, were the primary reasons for the increase in
expenses.
The provision for credit losses was $34 million in the second quarter of
2000, an increase of $6 million compared to the second quarter of 1999. Net
charge-offs for the quarter were $16 million or 0.19 percent of average total
loans, compared with $21 million or 0.26 percent in the second quarter of
1999. Nonperforming assets were $237 million or 0.68 percent of loans and
other real estate at June 30, 2000, compared to $191 million or 0.56 percent
at March 31, 2000, and $144 million or 0.46 percent at June 30, 1999. The
allowance for credit losses as a percent of loans at June 30, 2000, was
unchanged at 1.49 percent compared to March 31, 2000, and up from 1.46 percent
at June 30, 1999.
Assets totaled $41 billion at June 30, 2000, and $37 billion at June 30,
1999, while common shareholders' equity was $3.4 billion at June 30, 2000,
compared to $3.0 billion one year earlier. Shares of common stock outstanding
were 156 million at June 30, 2000 and 1999. Total loans were $35 billion at
June 30, 2000, compared to $32 billion a year ago. Total deposits were $25
billion at June 30, 2000, compared to $22 billion at June 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, 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
June 30
2000 1999
Interest Income
Interest and fees on loans $752,057 $600,325
Interest on investment securities:
Taxable 44,566 37,906
Exempt from federal income tax 748 1,261
Total interest on investment
securities 45,314 39,167
Interest on short-term investments 5,167 2,009
Total interest income 802,538 641,501
Interest Expense
Interest on deposits 186,219 139,807
Interest on short-term borrowings 64,792 43,406
Interest on medium- and
long-term debt 127,538 96,283
Net interest rate swap
(income)/expense 9,156 (17,637)
Total interest expense 387,705 261,859
Net interest income 414,833 379,642
Provision for credit losses 34,000 28,000
Net interest income after
provision for credit losses 380,833 351,642
Noninterest Income
Fiduciary and investment
management income 76,875 59,839
Service charges on deposit
accounts 45,466 42,520
Commercial lending fees 11,430 11,315
Letter of credit fees 11,175 9,020
Securities gains 1,110 690
Other noninterest income 53,614 71,267
Total noninterest income 199,670 194,651
Noninterest Expenses
Salaries and employee benefits 164,999 162,567
Net occupancy expense 24,108 23,975
Equipment expense 14,611 15,442
Outside processing fee expense 12,363 12,341
Other noninterest expenses 79,782 74,555
Total noninterest expenses 295,863 288,880
Income before income taxes 284,640 257,413
Provision for income taxes 99,089 90,031
Net income $185,551 $167,382
Net income applicable to
common stock $181,276 $163,107
Basic net income per common
share $1.16 $1.04
Diluted net income per common
share $1.15 $1.03
Cash dividends declared on
common stock $62,451 $56,181
Dividends per common share $0.40 $0.36
Six Months Ended
June 30
2000 1999
Interest Income
Interest and fees on loans $1,445,897 $1,186,687
Interest on investment securities:
Taxable 92,369 77,623
Exempt from federal income tax 1,551 2,636
Total interest on investment
securities 93,920 80,259
Interest on short-term investments 22,586 3,990
Total interest income 1,562,403 1,270,936
Interest Expense
Interest on deposits 355,390 289,481
Interest on short-term borrowings 117,251 88,778
Interest on medium- and
long-term debt 257,490 180,714
Net interest rate swap
(income)/expense 12,496 (36,511)
Total interest expense 742,627 522,462
Net interest income 819,776 748,474
Provision for credit losses 89,000 48,000
Net interest income after
provision for credit losses 730,776 700,474
Noninterest Income
Fiduciary and investment
management income 155,903 114,782
Service charges on deposit
accounts 89,358 84,218
Commercial lending fees 22,645 21,211
Letter of credit fees 21,869 17,511
Securities gains 1,363 1,892
Other noninterest income 129,229 111,931
Total noninterest income 420,367 351,545
Noninterest Expenses
Salaries and employee benefits 333,000 315,050
Net occupancy expense 49,062 47,069
Equipment expense 29,685 30,293
Outside processing fee expense 24,695 25,195
Other noninterest expenses 155,444 134,687
Total noninterest expenses 591,886 552,294
Income before income taxes 559,257 499,725
Provision for income taxes 195,990 173,231
Net income $363,267 $326,494
Net income applicable to
common stock $354,717 $317,944
Basic net income per common
share $2.27 $2.04
Diluted net income per common
share $2.25 $2.01
Cash dividends declared on
common stock $124,970 $112,330
Dividends per common share $0.80 $0.72
