DETROIT, Oct. 18 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record third quarter diluted earnings per share of $1.05, compared to
$0.95 in 1998, an increase of 11 percent. Net income was $170 million, up 10
percent from $154 million for the third quarter of 1998. Return on common
equity was 21.89 percent and return on assets was 1.85 percent, compared to
23.02 percent and 1.82 percent, respectively, for the third quarter of 1998.
Net income for the first nine months of 1999 was $3.06 per share or $497
million, compared to $2.75 per share or $449 million for the same period in
1998, both increases of 11 percent. Return on common equity was 21.95 percent
and return on assets was 1.81 percent for the first nine months of 1999,
compared to 22.56 percent and 1.72 percent, respectively, for the first nine
months of 1998.
"Our financial performance reflects continuing strength in commercial loan
demand, high asset quality, momentum in fee revenues and expense growth
focused in our core businesses," said Eugene A. Miller, chairman, president
and chief executive officer.
Net interest income for the third quarter of 1999 was $390 million, an
increase of $30 million or 8 percent from the same period last year. This
increase was primarily due to an increase in average commercial loans of 18
percent over last year's third quarter. The net interest margin was 4.56
percent in the third quarter of 1999, compared to 4.63 for the comparable
quarter of 1998.
Noninterest income was $170 million for the third quarter of 1999, an
increase of $18 million or 12 percent from $152 million for the same quarter
last year. This increase was due primarily to growth in fiduciary, investment
management, and commercial fees.
Noninterest expenses were $277 million for the third quarter of 1999,
compared to $254 million in 1998. Salaries and employee benefits expense
increased $18 million in the third quarter of 1999 over the third quarter of
1998, due primarily to annual merit increases and higher levels of revenue-
related incentives.
The provision for credit losses was $21 million in both the third quarter
of 1999 and 1998. Net charge-offs for the quarter were $18 million or 0.23
percent of average total loans, compared to $21 million or 0.30 percent in the
third quarter of 1998. Nonperforming assets were $169 million or 0.53 percent
of loans and other real estate at September 30, 1999, compared to $144 million
or 0.46 percent at June 30, 1999 and $122 million or 0.43 percent at September
30, 1998. The allowance for credit losses as a percent of loans was 1.44
percent at September 30, 1999, compared to 1.48 at December 31, 1998, and 1.54
percent at the end of the third quarter of 1998.
Assets totaled $37 billion at September 30, 1999, compared to $34 billion
in 1998, while common stockholders' equity was $3.1 billion at September 30,
1999, compared to $2.7 billion a year earlier. Shares of common stock
outstanding at September 30, 1999, were 156 million compared to 155 million at
September 30, 1998. Total loans were $32 billion at September 30, 1999,
compared to $28 billion a year ago. Total deposits were $23 billion at
September 30, 1999, compared to $22 billion in 1998.
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 nine other states.
Comerica also operates banking subsidiaries in Canada and Mexico. Comerica is
celebrating its 150th anniversary in 1999.
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
(in thousands, except per share data)
Three Months Ended
September 30
1999 1998
Interest Income
Interest and fees on loans $631,796 $583,747
Interest on investment
securities:
Taxable 36,849 51,968
Exempt from federal income
tax 1,108 1,754
Total interest on investment
securities 37,957 53,722
Interest on short-term investments 2,183 2,093
Total interest income 671,936 639,562
Interest Expense
Interest on deposits 147,147 156,289
Interest on short-term
borrowings:
Federal funds purchased and
securities sold under
agreements to repurchase 35,793 35,453
Other borrowed funds 9,803 10,724
Interest on medium- and
long-term debt 102,669 86,079
Net interest rate swap
income (13,868) (9,418)
Total interest expense 281,544 279,127
Net interest income 390,392 360,435
Provision for credit losses 21,000 21,000
Net interest income after
provision for credit losses 369,392 339,435
Noninterest Income
Fiduciary and investment
management income 60,493 49,791
Service charges on deposit
accounts 43,162 39,316
Commercial lending fees 14,001 10,702
Letter of credit fees 10,321 7,818
Securities gains 49 174
Other noninterest income 42,449 44,313
Total noninterest income 170,475 152,114
Noninterest Expenses
Salaries and employee benefits 159,932 142,252
Net occupancy expense 24,648 22,533
Equipment expense 15,320 14,959
Outside processing fee expense 11,329 10,627
Other noninterest expenses 65,621 63,450
Total noninterest expenses 276,850 253,821
Income before income taxes 263,017 237,728
Provision for income taxes 92,603 83,238
Net income $ 170,414 $ 154,490
Net income applicable to
common stock $ 166,139 $ 150,215
Basic net income per common
share $ 1.06 $ 0.97
Diluted net income per common
share $ 1.05 $ 0.95
Cash dividends declared on
common stock $ 56,226 $ 49,650
Dividends per common share $ 0.36 $ 0.32
Nine Months Ended
September 30
1999 1998
Interest Income
Interest and fees on loans $1,818,483 $1,781,164
Interest on investment
securities:
Taxable 114,472 170,856
Exempt from federal income
tax 3,744 5,774
Total interest on investment
securities 118,216 176,630
Interest on short-term investments 6,173 6,859
Total interest income 1,942,872 1,964,653
Interest Expense
Interest on deposits 436,628 484,353
Interest on short-term
borrowings:
Federal funds purchased and
securities sold under
agreements to repurchase 112,711 93,655
Other borrowed funds 21,663 41,536
Interest on medium- and
long-term debt 283,383 289,786
Net interest rate swap
income (50,379) (35,198)
Total interest expense 804,006 874,132
Net interest income 1,138,866 1,090,521
Provision for credit losses 69,000 77,000
Net interest income after
provision for credit losses 1,069,866 1,013,521
Noninterest Income
Fiduciary and investment
management income 175,275 132,535
Service charges on deposit
accounts 127,380 117,283
Commercial lending fees 35,212 27,850
Letter of credit fees 27,832 23,160
Securities gains 1,941 35
Other noninterest income 154,380 134,898
Total noninterest income 522,020 435,761
Noninterest Expenses
Salaries and employee benefits 474,982 415,013
Net occupancy expense 71,717 66,873
Equipment expense 45,613 45,250
Outside processing fee expense 36,524 31,654
Other noninterest expenses 200,308 198,203
Total noninterest expenses 829,144 756,993
Income before income taxes 762,742 692,289
Provision for income taxes 265,834 243,033
Net income $ 496,908 $ 449,256
Net income applicable to
common stock $ 484,083 $ 436,431
Basic net income per common
share $ 3.10 $ 2.80
Diluted net income per common
share $ 3.06 $ 2.75
Cash dividends declared on
common stock $ 168,556 $ 149,615
Dividends per common share $ 1.08 $ 0.96
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)
Sept. 30 Dec. 31
1999 1998
Assets
Cash and due from banks $ 1,485,739 $ 1,773,100
Short-term investments 188,027 109,640
Investment securities
available for sale 2,125,613 2,712,165
Commercial loans 20,023,564 19,086,541
International loans 2,575,318 2,713,259
Real estate construction
loans 1,545,168 1,079,614
Commercial mortgage loans 4,513,685 4,179,271
Residential mortgage loans 878,223 1,037,941
Consumer loans 1,823,635 1,861,630
Lease financing 718,347 646,607
Total loans 32,077,940 30,604,863
Less allowance for credit
losses (463,451) (452,409)
Net loans 31,614,489 30,152,454
Premises and equipment 336,410 352,650
Customers' liability on
acceptances outstanding 25,960 12,335
Accrued income and other
assets 1,508,752 1,488,487
Total assets $37,284,990 $36,600,831
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $ 6,430,126 $ 6,999,337
Interest-bearing deposits 16,470,174 17,313,796
Total deposits 22,900,300 24,313,133
Federal funds purchased and
securities sold under
agreements to repurchase 956,993 3,108,985
Other borrowed funds 1,254,976 471,168
Acceptances outstanding 25,960 12,335
Accrued expenses and other
liabilities 427,728 366,338
Medium- and long-term debt 8,355,771 5,282,259
Total liabilities 33,921,728 33,554,218
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares
at 9/30/99, 12/31/98 and
9/30/98 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares
at 9/30/99, 157,233,088
shares at 12/31/98 and
157,187,518 shares at
9/30/98 786,166 786,165
Capital surplus 32,452 24,649
Accumulated nonowner changes
in equity (22,096) (6,455)
Retained earnings 2,379,372 2,086,589
Deferred compensation (3,517) (5,202)
Less cost of common stock in
treasury - 896,861 shares
at 9/30/99, 1,351,997 shares
at 12/31/98 and 1,689,201
shares at 9/30/98 (59,115) (89,133)
Total shareholders' equity 3,363,262 3,046,613
Total liabilities and
shareholders' equity $37,284,990 $36,600,831
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)
Sept. 30
1998
Assets
Cash and due from banks $ 1,364,063
Short-term investments 129,057
Investment securities
available for sale 3,108,120
Commercial loans 17,361,281
International loans 2,524,159
Real estate construction
loans 1,037,284
Commercial mortgage loans 3,927,689
Residential mortgage loans 1,136,195
Consumer loans 1,882,347
Lease financing 598,259
Total loans 28,467,214
Less allowance for credit
losses (438,929)
Net loans 28,028,285
Premises and equipment 361,171
Customers' liability on
acceptances outstanding 12,945
Accrued income and other
assets 1,372,573
Total assets $34,376,214
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $ 6,740,407
Interest-bearing deposits 15,493,005
Total deposits 22,233,412
Federal funds purchased and
securities sold under
agreements to repurchase 2,147,048
Other borrowed funds 1,182,122
Acceptances outstanding 12,945
Accrued expenses and other
liabilities 227,983
Medium- and long-term debt 5,632,697
Total liabilities 31,436,207
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
9/30/99, 12/31/98 and 9/30/98 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares
at 9/30/99, 157,233,088
shares at 12/31/98 and
157,187,518 shares at
9/30/98 785,938
Capital surplus 16,713
Accumulated nonowner changes
in equity 2,676
Retained earnings 1,999,197
Deferred compensation (3,110)
Less cost of common stock in
treasury - 896,861 shares
at 9/30/99, 1,351,997 shares
at 12/31/98 and 1,689,201
shares at 9/30/98 (111,407)
Total shareholders' equity 2,940,007
Total liabilities and
shareholders' equity $34,376,214
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
(in thousands, except per share data,
average balances and ratios)
Three Months Ended
September 30
1999 1998
Per Share and Common Stock
Data
Diluted net income $ 1.05 $ 0.95
Cash dividends declared 0.36 0.32
Common shareholders' equity
(at September 30) 19.91 17.30
Average diluted shares 158,311 158,090
Key Ratios (in percent)
Return on average common
equity 21.89 23.02
Return on average assets 1.85 1.82
Average common equity as a
percentage of average assets 8.22 7.68
Core capital ratio (l999 estimated) 6.92 6.38
Total capital ratio
(1999 estimated) 10.88 10.66
Leverage ratio (1999 estimated) 8.35 7.64
Average Balances (in millions)
Commercial loans (including
lease financing) $ 20,483 $ 17,327
International loans 2,629 2,405
Real estate construction loans 1,410 1,002
Commercial mortgage loans 4,510 3,831
Residential mortgage loans 886 1,266
Consumer loans 1,809 1,944
Total loans $ 31,727 $ 27,775
Earning assets 34,051 31,112
Total assets 36,915 33,974
Interest-bearing deposits 16,311 15,605
Noninterest-bearing deposits 6,196 6,173
Total interest-bearing
liabilities 27,013 24,530
Common shareholders' equity 3,036 2,610
Net Interest Income
Net interest
income (fully taxable
equivalent basis) $ 391,540 $ 362,132
Fully taxable equivalent
adjustment 1,148 1,697
Net interest margin (in percent) 4.56 4.63
Credit Quality
Nonaccrual loans $ 157,866 $ 106,879
Reduced-rate loans 7,379 7,615
Other real estate 3,471 7,563
Total nonperforming assets 168,716 122,057
Loans 90 days past due 60,959 28,438
Gross charge-offs 24,223 29,251
Recoveries 6,279 8,305
Net charge-offs 17,944 20,946
Allowance for credit losses
as a percentage of total
loans (in percent) 1.44 1.54
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent) 0.53 0.43
Net loans charged off as
a percentage of average
total loans (in percent) 0.23 0.30
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent) 275 360
Additional Data
Goodwill $ 323,431 $ 347,719
Core deposit intangible 14,053 19,363
Other intangibles 1,814 2,559
Loan servicing rights 4,459 3,774
Amortization of intangibles 8,480 8,467
Nine Months Ended
September 30
1999 1998
Per Share and Common Stock
Data
Diluted net income $ 3.06 $ 2.75
Cash dividends declared 1.08 0.96
Common shareholder's equity
(at September 30)
Average diluted shares 158,417 158,952
Key Ratios (in percent)
Return on average common
equity 21.95 22.56
Return on average assets 1.81 1.72
Average common equity as a
percentage of average assets 8.05 7.40
Core capital ratio (1999 estimated)
Total capital ratio (1999 estimated)
Leverage ratio (1999 estimated)
Average Balances (in millions)
Commercial loans (including
lease financing) $ 20,086 $ 17,107
International loans 2,658 2,251
Real estate construction loans 1,265 965
Commercial mortgage loans 4,406 3,744
Residential mortgage loans 949 1,396
Consumer loans 1,813 2,813
Total loans $ 31,177 $ 28,276
Earning assets 33,668 31,944
Total assets 36,544 34,833
Interest-bearing deposits 16,244 15,944
Noninterest-bearing deposits 6,237 6,112
Total interest-bearing
liabilities 26,718 25,471
Common shareholders' equity 2,940 2,579
Net Interest Income
Net interest
income (fully taxable
equivalent basis) $ 1,142,673 $ 1,096,124
Fully taxable equivalent
adjustment 3,807 5,603
Net interest margin (in percent) 4.53 4.58
Credit Quality
Nonaccrual loans
Reduced-rate loans
Other real estate
Total nonperforming assets
Loans 90 days past due
Gross charge-offs $ 76,350 $ 95,881
Recoveries 18,368 33,663
Net charge-offs 57,982 62,218
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) 0.25 0.29
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 25,417 21,929
SOURCE Comerica Incorporated
