CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Ended Six Months Ended
June 30, June 30,
(in millions, except per share data) 2005 2004 2005 2004
INTEREST INCOME
Interest and fees on loans $616 $500 $1,182 $996
Interest on investment securities 34 35 69 75
Interest on short-term investments 5 10 11 17
Total interest income 655 545 1,262 1,088
INTEREST EXPENSE
Interest on deposits 122 72 230 145
Interest on short-term borrowings 9 - 12 1
Interest on medium- and long-term debt 41 25 77 49
Total interest expense 172 97 319 195
Net interest income 483 448 943 893
Provision for loan losses 2 20 3 85
Net interest income after
provision for loan losses 481 428 940 808
NONINTEREST INCOME
Service charges on deposit accounts 54 59 108 121
Fiduciary income 43 41 89 85
Commercial lending fees 16 13 28 27
Letter of credit fees 18 17 38 32
Foreign exchange income 9 10 18 19
Brokerage fees 9 8 17 18
Investment advisory revenue, net 12 9 22 18
Card fees 9 8 18 15
Bank-owned life insurance 10 9 19 18
Equity in earnings of unconsolidated
subsidiaries 4 5 9 8
Warrant income 3 4 5 5
Net securities gains - 1 - 6
Net gain on sales of businesses - 7 - 7
Other noninterest income 32 37 58 69
Total noninterest income 219 228 429 448
NONINTEREST EXPENSES
Salaries 197 195 386 382
Employee benefits 44 40 91 79
Total salaries and employee
benefits 241 235 477 461
Net occupancy expense 28 31 60 61
Equipment expense 14 14 28 29
Outside processing fee expense 20 18 37 35
Software expense 11 9 23 20
Customer services 10 7 21 9
Litigation and operational losses 7 3 10 11
Other noninterest expenses 52 55 101 115
Total noninterest expenses 383 372 757 741
Income before income taxes 317 284 612 515
Provision for income taxes 100 92 196 161
NET INCOME $217 $192 $416 $354
Basic net income per common share $1.29 $1.11 $2.47 $2.04
Diluted net income per common share 1.28 1.10 2.44 2.02
Cash dividends declared on common
stock 92 90 185 180
Dividends per common share 0.55 0.52 1.10 1.04
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Second First Fourth
Quarter Quarter Quarter
(in millions, except per share data) 2005 2005 2004
INTEREST INCOME
Interest and fees on loans $616 $566 $544
Interest on investment securities 34 35 36
Interest on short-term investments 5 6 11
Total interest income 655 607 591
INTEREST EXPENSE
Interest on deposits 122 108 91
Interest on short-term borrowings 9 3 2
Interest on medium- and long-term debt 41 36 32
Total interest expense 172 147 125
Net interest income 483 460 466
Provision for loan losses 2 1 (21)
Net interest income after
provision for loan losses 481 459 487
NONINTEREST INCOME
Service charges on deposit accounts 54 54 53
Fiduciary income 43 46 43
Commercial lending fees 16 12 14
Letter of credit fees 18 20 17
Foreign exchange income 9 9 9
Brokerage fees 9 8 9
Investment advisory revenue, net 12 10 9
Card fees 9 9 9
Bank-owned life insurance 10 9 6
Equity in earnings of unconsolidated
subsidiaries 4 5 1
Warrant income 3 2 1
Net securities gains (losses) - - -
Net gain on sales of businesses - - -
Other noninterest income 32 26 32
Total noninterest income 219 210 203
NONINTEREST EXPENSES
Salaries 197 189 193
Employee benefits 44 47 40
Total salaries and employee
benefits 241 236 233
Net occupancy expense 28 32 32
Equipment expense 14 14 15
Outside processing fee expense 20 17 17
Software expense 11 12 12
Customer services 10 11 6
Litigation and operational losses 7 3 (3)
Other noninterest expenses 52 49 68
Total noninterest expenses 383 374 380
Income before income taxes 317 295 310
Provision for income taxes 100 96 103
NET INCOME $217 $199 $207
Basic net income per common share $1.29 $1.18 $1.22
Diluted net income per common share 1.28 1.16 1.21
Cash dividends declared on common stock 92 93 88
Dividends per common share 0.55 0.55 0.52
Third Second
Quarter Quarter
(in millions, except per share data) 2004 2004
INTEREST INCOME
Interest and fees on loans $514 $500
Interest on investment securities 36 35
Interest on short-term investments 8 10
Total interest income 558 545
INTEREST EXPENSE
Interest on deposits 79 72
Interest on short-term borrowings 1 -
Interest on medium- and long-term debt 27 25
Total interest expense 107 97
Net interest income 451 448
Provision for loan losses - 20
Net interest income after
provision for loan losses 451 428
NONINTEREST INCOME
Service charges on deposit accounts 57 59
Fiduciary income 43 41
Commercial lending fees 14 13
Letter of credit fees 17 17
Foreign exchange income 9 10
Brokerage fees 9 8
Investment advisory revenue, net 8 9
Card fees 8 8
Bank-owned life insurance 10 9
Equity in earnings of unconsolidated
subsidiaries 3 5
Warrant income 1 4
Net securities gains (losses) (6) 1
Net gain on sales of businesses - 7
Other noninterest income 33 37
Total noninterest income 206 228
NONINTEREST EXPENSES
Salaries 185 195
Employee benefits 40 40
Total salaries and employee
benefits 225 235
Net occupancy expense 32 31
Equipment expense 14 14
Outside processing fee expense 16 18
Software expense 11 9
Customer services 8 7
Litigation and operational losses 16 3
Other noninterest expenses 50 55
Total noninterest expenses 372 372
Income before income taxes 285 284
Provision for income taxes 89 92
NET INCOME $196 $192
Basic net income per common share $1.15 $1.11
Diluted net income per common share 1.13 1.10
Cash dividends declared on common stock 88 90
Dividends per common share 0.52 0.52
Second Quarter 2005 Compared To:
First Quarter 2005
(in millions, except per share data) Amount Percent
INTEREST INCOME
Interest and fees on loans $50 8.6 %
Interest on investment securities (1) (0.4)
Interest on short-term investments (1) (6.4)
Total interest income 48 8.0
INTEREST EXPENSE
Interest on deposits 14 12.8
Interest on short-term borrowings 6 206.4
Interest on medium- and long-term debt 5 15.9
Total interest expense 25 17.5
Net interest income 23 4.9
Provision for loan losses 1 100.0
Net interest income after
provision for loan losses 22 4.7
NONINTEREST INCOME
Service charges on deposit accounts - (1.4)
Fiduciary income (3) (4.3)
Commercial lending fees 4 38.0
Letter of credit fees (2) (12.2)
Foreign exchange income - 12.0
Brokerage fees 1 9.1
Investment advisory revenue, net 2 7.7
Card fees - 15.7
Bank-owned life insurance 1 9.1
Equity in earnings of unconsolidated
subsidiaries (1) (12.3)
Warrant income 1 23.4
Net securities gains (losses) - N/M
Net gain on sales of businesses - N/M
Other noninterest income 6 21.4
Total noninterest income 9 4.3
NONINTEREST EXPENSES
Salaries 8 4.8
Employee benefits (3) (6.0)
Total salaries and employee
benefits 5 2.7
Net occupancy expense (4) (12.0)
Equipment expense - (0.5)
Outside processing fee expense 3 15.3
Software expense (1) (4.0)
Customer services (1) (6.6)
Litigation and operational losses 4 108.0
Other noninterest expenses 3 3.8
Total noninterest expenses 9 2.5
Income before income taxes 22 7.3
Provision for income taxes 4 4.6
NET INCOME $18 8.6 %
Basic net income per common share $0.11 9.3 %
Diluted net income per common share 0.12 10.3
Cash dividends declared on common stock (1) (1.3)
Dividends per common share - -
Second Quarter 2005 Compared To:
Second Quarter 2004
(in millions, except per share data) Amount Percent
INTEREST INCOME
Interest and fees on loans $116 23.2 %
Interest on investment securities (1) (4.0)
Interest on short-term investments (5) (38.8)
Total interest income 110 20.4
INTEREST EXPENSE
Interest on deposits 50 70.2
Interest on short-term borrowings 9 N/M
Interest on medium- and long-term debt 16 67.7
Total interest expense 75 77.8
Net interest income 35 8.0
Provision for loan losses (18) (90.0)
Net interest income after
provision for loan losses 53 12.5
NONINTEREST INCOME
Service charges on deposit accounts (5) (9.8)
Fiduciary income 2 5.1
Commercial lending fees 3 25.8
Letter of credit fees 1 5.7
Foreign exchange income (1) (5.6)
Brokerage fees 1 1.5
Investment advisory revenue, net 3 31.0
Card fees 1 17.8
Bank-owned life insurance 1 15.5
Equity in earnings of unconsolidated
subsidiaries (1) (14.8)
Warrant income (1) (21.8)
Net securities gains (losses) (1) N/M
Net gain on sales of businesses (7) (98.8)
Other noninterest income (5) (13.9)
Total noninterest income (9) (3.8)
NONINTEREST EXPENSES
Salaries 2 1.5
Employee benefits 4 10.4
Total salaries and employee
benefits 6 3.0
Net occupancy expense (3) (7.7)
Equipment expense - (3.4)
Outside processing fee expense 2 10.1
Software expense 2 13.9
Customer services 3 55.9
Litigation and operational losses 4 144.6
Other noninterest expenses (3) (6.9)
Total noninterest expenses 11 3.0
Income before income taxes 33 11.9
Provision for income taxes 8 9.7
NET INCOME $25 12.9 %
Basic net income per common share $0.18 16.2 %
Diluted net income per common share 0.18 16.4
Cash dividends declared on common stock 2 2.7
Dividends per common share 0.03 5.8
N/M - Not meaningful
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES
Comerica Incorporated and Subsidiaries
2005 2004
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
Balance at beginning of period $636 $673 $729 $762 $798
Loans charged-off:
Commercial 29 28 39 41 57
Real estate construction:
Real estate construction
business line - - - 1 1
Other - - - - -
Total real estate
construction - - - 1 1
Commercial mortgage:
Commercial real estate
business line 2 2 4 - -
Other 5 3 - 7 6
Total commercial mortgage 7 5 4 7 6
Residential mortgage - - - 1 -
Consumer 3 3 5 2 4
Lease financing 3 3 4 - 1
International 1 7 3 1 7
Total loans charged-off 43 46 55 53 76
Recoveries on loans previously
charged-off:
Commercial 12 7 14 13 15
Real estate construction - - - - -
Commercial mortgage 1 - 1 1 1
Residential mortgage - - - - -
Consumer - 1 - 1 1
Lease financing - - - - -
International 1 - 5 5 3
Total recoveries 14 8 20 20 20
Net loans charged-off 29 38 35 33 56
Provision for loan losses 2 1 (21) - 20
Balance at end of period $609 $636 $673 $729 $762
Allowance for loan losses as a
percentage of total loans 1.41 % 1.52 % 1.65 % 1.83 % 1.90 %
Net loans charged-off as a
percentage of average total loans 0.27 0.36 0.34 0.33 0.55
Allowance for credit losses on
lending-related commitments* $15 $18 $21 $24 $28
* Included in "Accrued expenses and other liabilities" on the
consolidated balance sheets.
NONPERFORMING ASSETS
Comerica Incorporated and Subsidiaries
2005 2004
(in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
SUMMARY OF NONPERFORMING
ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Commercial $125 $161 $161 $181 $229
Real estate construction:
Real estate construction
business line 8 18 31 28 20
Other 2 2 3 3 3
Total real estate
construction 10 20 34 31 23
Commercial mortgage:
Commercial real estate
business line 9 11 6 10 12
Other 32 38 58 70 80
Total commercial
mortgage 41 49 64 80 92
Residential mortgage 2 2 1 1 3
Consumer 2 1 1 2 2
Lease financing 9 12 15 19 13
International 23 24 36 47 42
Total nonaccrual
loans 212 269 312 361 404
Reduced-rate loans - - - - -
Total
nonperforming
loans 212 269 312 361 404
Other real estate 34 42 27 27 26
Nonaccrual debt securities - - - - -
Total
nonperforming
assets $246 $311 $339 $388 $430
Nonperforming loans as a
percentage of total loans 0.49 % 0.64 % 0.76 % 0.91 % 1.01 %
Nonperforming assets as a
percentage of total loans,
other real estate and
nonaccrual debt securities 0.57 0.75 0.83 0.98 1.07
Allowance for loan losses as a
percentage of total
nonperforming assets 248 204 198 188 177
Loans past due 90 days or more
and still accruing $24 $23 $15 $20 $25
ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning
of period $269 $312 $361 $404 $489
Loans transferred to
nonaccrual (1) 47 66 71 106 63
Nonaccrual business loan
gross charge-offs (2) (38) (42) (49) (48) (71)
Loans transferred to
accrual status (1) - (4) (7) - -
Nonaccrual business loans
sold (3) - (14) (33) (16) (33)
Payments/Other (4) (66) (49) (31) (85) (44)
Nonaccrual loans at end of
period $212 $269 $312 $361 $404
(1) Based on an analysis of nonaccrual loans with book balances greater
than $2 million.
(2) Analysis of gross loan charge-offs:
Nonaccrual business
loans $38 $42 $49 $48 $71
Performing watch list
loans 2 1 1 2 1
Consumer loans and
residential mortgage
loans 3 3 5 3 4
Total gross loan
charge-offs $43 $46 $55 $53 $76
(3) Analysis of loans sold:
Nonaccrual business
loans $- $14 $33 $16 $33
Performing watch list
loans sold 7 4 7 30 14
Total loans sold $7 $18 $40 $46 $47
(4) Net change related to nonaccrual loans with balances less than $2
million, other than business loan gross charge-offs and nonaccrual
loans sold, are included in Payments/Other.
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
June 30, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans $24,122 $329 5.46 %
Real estate construction loans 3,101 54 6.99
Commercial mortgage loans 8,513 129 6.06
Residential mortgage loans 1,357 20 5.75
Consumer loans 2,673 38 5.75
Lease financing 1,283 13 4.08
International loans 2,185 31 5.77
Business loan swap income - 3 -
Total loans 43,234 617 5.72
Investment securities available-for-
sale (1) 3,681 34 3.67
Short-term investments 497 5 4.54
Total earning assets 47,412 656 5.54
Cash and due from banks 1,697
Allowance for loan losses (645)
Accrued income and other assets 3,171
Total assets $51,635
Money market and NOW deposits $17,190 77 1.80
Savings deposits 1,568 1 0.42
Certificates of deposit 5,509 36 2.57
Foreign office time deposits 738 8 4.23
Total interest-bearing
deposits 25,005 122 1.96
Short-term borrowings 1,182 9 3.06
Medium- and long-term debt 4,314 41 3.83
Total interest-bearing sources 30,501 172 2.26
Noninterest-bearing deposits 14,995
Accrued expenses and other
liabilities 1,039
Common shareholders' equity 5,100
Total liabilities and
shareholders' equity $51,635
Net interest income/rate spread (FTE) $484 3.28
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 0.81
Net interest margin (as a percentage
of average earning assets) (FTE) 4.09 %
(1) The average rate for investment securities available-for-sale was
computed using average historical cost.
Three Months Ended
March 31, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans $23,248 $286 5.00 %
Real estate construction loans 3,052 49 6.48
Commercial mortgage loans 8,315 118 5.77
Residential mortgage loans 1,310 18 5.58
Consumer loans 2,734 36 5.32
Lease financing 1,261 13 4.13
International loans 2,235 30 5.43
Business loan swap income - 17 -
Total loans 42,155 567 5.45
Investment securities available-for-
sale (1) 3,790 35 3.60
Short-term investments 700 6 3.47
Total earning assets 46,645 608 5.27
Cash and due from banks 1,639
Allowance for loan losses (685)
Accrued income and other assets 3,151
Total assets $50,750
Money market and NOW deposits $17,810 69 1.56
Savings deposits 1,582 2 0.41
Certificates of deposit 5,558 31 2.28
Foreign office time deposits 712 6 3.72
Total interest-bearing
deposits 25,662 108 1.71
Short-term borrowings 441 3 2.71
Medium- and long-term debt 4,277 36 3.37
Total interest-bearing sources 30,380 147 1.96
Noninterest-bearing deposits 14,120
Accrued expenses and other
liabilities 1,178
Common shareholders' equity 5,072
Total liabilities and
shareholders' equity $50,750
Net interest income/rate spread (FTE) $461 3.31
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 0.69
Net interest margin (as a percentage
of average earning assets) (FTE) 4.00 %
Three Months Ended
June 30, 2004
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans $22,178 $217 3.93 %
Real estate construction loans 3,253 42 5.13
Commercial mortgage loans 8,050 100 4.99
Residential mortgage loans 1,209 17 5.73
Consumer loans 2,653 30 4.57
Lease financing 1,271 14 4.29
International loans 2,115 23 4.42
Business loan swap income - 57 -
Total loans 40,729 500 4.93
Investment securities available-for-
sale (1) 4,460 35 3.17
Short-term investments 2,450 10 1.51
Total earning assets 47,639 545 4.59
Cash and due from banks 1,727
Allowance for loan losses (812)
Accrued income and other assets 3,039
Total assets $51,593
Money market and NOW deposits $17,886 43 0.95
Savings deposits 1,651 1 0.38
Certificates of deposit 5,991 24 1.61
Foreign office time deposits 655 4 2.20
Total interest-bearing
deposits 26,183 72 1.10
Short-term borrowings 262 - 0.94
Medium- and long-term debt 4,566 25 2.17
Total interest-bearing sources 31,011 97 1.26
Noninterest-bearing deposits 14,730
Accrued expenses and other
liabilities 849
Common shareholders' equity 5,003
Total liabilities and
shareholders' equity $51,593
Net interest income/rate spread (FTE) $448 3.33
FTE adjustment $-
Impact of net noninterest-bearing
sources of funds 0.44
Net interest margin (as a percentage
of average earning assets) (FTE) 3.77 %
(1) The average rate for investment securities available-for-sale was
computed using average historical cost.
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Six Months Ended
June 30, 2005
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans $23,688 $615 5.23 %
Real estate construction loans 3,077 103 6.74
Commercial mortgage loans 8,415 247 5.92
Residential mortgage loans 1,333 38 5.67
Consumer loans 2,703 74 5.53
Lease financing 1,272 26 4.10
International loans 2,210 61 5.60
Business loan swap income - 20 -
Total loans 42,698 1,184 5.59
Investment securities available-
for-sale (1) 3,735 69 3.64
Short-term investments 598 11 3.92
Total earning assets 47,031 1,264 5.41
Cash and due from banks 1,668
Allowance for loan losses (665)
Accrued income and other assets 3,161
Total assets $51,195
Money market and NOW deposits $17,499 146 1.68
Savings deposits 1,575 3 0.41
Certificates of deposit 5,533 67 2.43
Foreign office time deposits 725 14 3.98
Total interest-bearing deposits 25,332 230 1.83
Short-term borrowings 814 12 2.97
Medium- and long-term debt 4,295 77 3.61
Total interest-bearing sources 30,441 319 2.11
Noninterest-bearing deposits 14,560
Accrued expenses and other
liabilities 1,108
Common shareholders' equity 5,086
Total liabilities and
shareholders' equity $51,195
Net interest income/rate spread (FTE) $945 3.30
FTE adjustment $2
Impact of net noninterest-bearing
sources of funds 0.74
Net interest margin (as a percentage
of average earning assets) (FTE) 4.04 %
Six Months Ended
June 30, 2004
Average Average
(dollar amounts in millions) Balance Interest Rate
Commercial loans $21,947 $435 3.99 %
Real estate construction loans 3,303 83 5.07
Commercial mortgage loans 8,008 200 5.01
Residential mortgage loans 1,217 35 5.75
Consumer loans 2,640 61 4.59
Lease financing 1,281 28 4.34
International loans 2,182 46 4.26
Business loan swap income - 109 -
Total loans 40,578 997 4.94
Investment securities available-
for-sale (1) 4,505 75 3.32
Short-term investments 2,147 17 1.57
Total earning assets 47,230 1,089 4.63
Cash and due from banks 1,695
Allowance for loan losses (821)
Accrued income and other assets 3,061
Total assets $51,165
Money market and NOW deposits $17,897 85 0.95
Savings deposits 1,629 3 0.39
Certificates of deposit 6,254 50 1.60
Foreign office time deposits 622 7 2.30
Total interest-bearing deposits 26,402 145 1.10
Short-term borrowings 286 1 0.91
Medium- and long-term debt 4,680 49 2.11
Total interest-bearing sources 31,368 195 1.25
Noninterest-bearing deposits 13,858
Accrued expenses and other
liabilities 890
Common shareholders' equity 5,049
Total liabilities and
shareholders' equity $51,165
Net interest income/rate spread (FTE) $894 3.38
FTE adjustment $1
Impact of net noninterest-bearing
sources of funds 0.42
Net interest margin (as a percentage
of average earning assets) (FTE) 3.80 %
(1) The average rate for investment securities available-for-sale was
computed using average historical cost.
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
June 30, March 31, December 31,
(in millions, except per share data) 2005 2005 2004
Commercial loans:
Floor plan $2,766 $2,668 $2,575
Other 20,924 20,112 19,464
Total commercial loans 23,690 22,780 22,039
Real estate construction loans:
Real estate construction
business line 2,587 2,451 2,461
Other 581 584 592
Total real estate construction
loans 3,168 3,035 3,053
Commercial mortgage loans:
Commercial real estate business
line 1,465 1,555 1,556
Other 7,071 6,860 6,680
Total commercial mortgage loans 8,536 8,415 8,236
Residential mortgage loans 1,394 1,335 1,294
Consumer loans:
Home equity 1,867 1,797 1,837
Other consumer 834 903 914
Total consumer loans 2,701 2,700 2,751
Lease financing 1,296 1,262 1,265
International loans 2,239 2,209 2,205
Total loans $43,024 $41,736 $40,843
Goodwill $247 $247 $247
Other intangible assets 1 1 1
Loan servicing rights 19 19 20
Deferred mutual fund distribution
costs 7 7 8
Amortization of intangibles
(quarterly) - - -
Tier 1 common capital ratio* 7.90 % 8.04 % 8.13 %
Tier 1 risk-based capital ratio* 8.52 8.66 8.77
Total risk-based capital ratio * 12.09 12.49 12.75
Leverage ratio* 10.39 10.50 10.37
Book value per share $30.60 $29.81 $29.94
Market value per share for the
quarter:
High $59.29 $61.40 $63.80
Low 53.17 53.70 57.81
Close 57.80 55.08 61.02
Quarterly ratios:
Return on average common
shareholders' equity 16.99 % 15.73 % 16.39 %
Return on average assets 1.68 1.57 1.63
Efficiency ratio 54.49 55.70 56.61
Number of banking offices 363 375 376
Number of employees - full time
equivalent 10,899 10,878 10,968
September 30, June 30,
(in millions, except per share data) 2004 2004
Commercial loans:
Floor plan $2,270 $2,802
Other 18,876 18,656
Total commercial loans 21,146 21,458
Real estate construction loans:
Real estate construction
business line 2,641 2,661
Other 635 621
Total real estate construction
loans 3,276 3,282
Commercial mortgage loans:
Commercial real estate business
line 1,498 1,656
Other 6,433 6,424
Total commercial mortgage
loans 7,931 8,080
Residential mortgage loans 1,263 1,211
Consumer loans:
Home equity 1,815 1,788
Other consumer 907 884
Total consumer loans 2,722 2,672
Lease financing 1,260 1,266
International loans 2,117 2,130
Total loans $39,715 $40,099
Goodwill $247 $247
Other intangible assets 1 1
Loan servicing rights 20 19
Deferred mutual fund distribution
costs 9 10
Amortization of intangibles
(quarterly) - 1
Tier 1 common capital ratio* 8.16 % 8.00 %
Tier 1 risk-based capital ratio* 8.81 8.64
Total risk-based capital ratio * 13.06 12.91
Leverage ratio* 10.28 9.97
Book value per share $29.52 $28.75
Market value per share for the
quarter:
High $61.48 $56.99
Low 53.00 50.45
Close 59.35 54.88
Quarterly ratios:
Return on average common
shareholders' equity 15.68 % 15.35 %
Return on average assets 1.55 1.49
Efficiency ratio 56.08 55.08
Number of banking offices 364 361
Number of employees - full time
equivalent 10,919 11,111
* June 30, 2005 ratios are estimated
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
June 30, December 31, June 30,
(in millions, except share data) 2005 2004 2004
ASSETS
Cash and due from subsidiary bank $- $1 $5
Short-term investments with
subsidiary bank 280 289 226
Investment in subsidiaries,
principally banks 5,640 5,585 5,487
Premises and equipment 3 3 3
Other assets 293 304 277
Total assets $6,216 $6,182 $5,998
LIABILITIES AND SHAREHOLDERS' EQUITY
Long-term debt $829 $824 $813
Other liabilities 270 253 251
Total liabilities 1,099 1,077 1,064
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 178,735,252 shares at
6/30/05, 12/31/04 and 6/30/04 894 894 894
Capital surplus 433 421 398
Accumulated other comprehensive loss (99) (69) (82)
Retained earnings 4,546 4,331 4,125
Less cost of common stock in treasury
- 11,513,612 shares at 6/30/05,
8,259,328 shares at 12/31/04 and
7,124,990 shares at 6/30/04 (657) (472) (401)
Total shareholders' equity 5,117 5,105 4,934
Total liabilities and
shareholders' equity $6,216 $6,182 $5,998
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
Accumulated
Other
Common Capital Comprehensive
Stock Surplus Income (Loss)
(in millions, except share data)
BALANCE AT JANUARY 1, 2004 $894 $384 $74
Net income - - -
Other comprehensive loss, net of
tax - - (156)
Total comprehensive income
Cash dividends declared on common
stock ($1.04 per share) - - -
Purchase of 4,458,423 shares of
common stock - - -
Net issuance of common stock
under employee stock plans - (6) -
Recognition of stock-based
compensation expense - 20 -
BALANCE AT JUNE 30, 2004 $894 $398 $(82)
BALANCE AT JANUARY 1, 2005 $894 $421 $(69)
Net income - - -
Other comprehensive loss, net of
tax - - (30)
Total comprehensive income
Cash dividends declared on common
stock ($1.10 per share) - - -
Purchase of 4,078,100 shares of
common stock - - -
Net issuance of common stock
under employee stock plans - (9) -
Recognition of stock-based
compensation expense - 21 -
BALANCE AT JUNE 30, 2005 $894 $433 $(99)
Total
Retained Treasury Shareholders'
(in millions, except share data) Earnings Stock Equity
BALANCE AT JANUARY 1, 2004 $3,973 $(215) $5,110
Net income 354 - 354
Other comprehensive loss, net of
tax - - (156)
Total comprehensive income 198
Cash dividends declared on common
stock ($1.04 per share) (180) - (180)
Purchase of 4,458,423 shares of
common stock - (247) (247)
Net issuance of common stock
under employee stock plans (22) 61 33
Recognition of stock-based
compensation expense - - 20
BALANCE AT JUNE 30, 2004 $4,125 $(401) $4,934
BALANCE AT JANUARY 1, 2005 $4,331 $(472) $5,105
Net income 416 - 416
Other comprehensive loss, net of
tax - - (30)
Total comprehensive income 386
Cash dividends declared on common
stock ($1.10 per share) (185) - (185)
Purchase of 4,078,100 shares of
common stock - (232) (232)
Net issuance of common stock
under employee stock plans (16) 47 22
Recognition of stock-based
compensation expense - - 21
BALANCE AT JUNE 30, 2005 $4,546 $(657) $5,117
BUSINESS SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Business Bank
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $350 $337 $345
Provision for loan losses 18 4 (19)
Noninterest income 71 69 79
Noninterest expenses 159 141 151
Provision (benefit) for income taxes
(FTE) 81 86 104
Net income (loss) $163 $175 $188
Net charge-offs $21 $29 $49
Selected average balances:
Assets $35,435 $34,210 $33,078
Loans 34,110 32,970 31,951
Deposits 20,352 19,877 20,143
Liabilities 21,151 20,682 20,786
Attributed equity 2,501 2,476 2,441
Statistical data:
Return on average assets (1) 1.84 % 2.05 % 2.28 %
Return on average attributed equity 26.08 28.28 30.84
Net interest margin (2) 4.10 4.12 4.33
Efficiency ratio 37.89 34.64 35.63
(dollar amounts in millions) Small Business & Personal Financial Services
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $152 $146 $144
Provision for loan losses (2) 2 3
Noninterest income 53 49 56
Noninterest expenses 132 126 125
Provision (benefit) for income taxes
(FTE) 26 23 26
Net income (loss) $49 $44 $46
Net charge-offs $5 $4 $5
Selected average balances:
Assets $6,446 $6,435 $6,473
Loans 5,768 5,778 5,751
Deposits 16,874 16,796 16,795
Liabilities 16,871 16,792 16,788
Attributed equity 792 779 788
Statistical data:
Return on average assets (1) 1.10 % 0.99 % 1.04 %
Return on average attributed equity 24.56 22.29 23.31
Net interest margin (2) 3.63 3.52 3.46
Efficiency ratio 64.34 64.71 62.50
(dollar amounts in millions) Wealth & Institutional Management
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $37 $36 $37
Provision for loan losses 1 (2) -
Noninterest income 79 80 77
Noninterest expenses 88 80 84
Provision (benefit) for income taxes
(FTE) 10 13 11
Net income (loss) $17 $25 $19
Net charge-offs $3 $5 $2
Selected average balances:
Assets $3,622 $3,628 $3,292
Loans 3,335 3,368 3,037
Deposits 2,414 2,451 2,629
Liabilities 2,423 2,457 2,639
Attributed equity 412 417 406
Statistical data:
Return on average assets (1) 1.83 % 2.79 % 2.29 %
Return on average attributed equity 16.13 24.26 18.61
Net interest margin (2) 4.38 4.34 4.88
Efficiency ratio 75.74 68.60 73.54
Finance
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $(56) $(59) $(72)
Provision for loan losses - - -
Noninterest income 21 11 13
Noninterest expenses - 1 -
Provision (benefit) for income taxes
(FTE) (17) (19) (17)
Net income (loss) $(18) $(30) $(42)
Net charge-offs $- $- $-
Selected average balances:
Assets $5,192 $5,518 $7,906
Loans (22) (7) (20)
Deposits 338 612 1,312
Liabilities 5,844 5,390 6,157
Attributed equity 519 538 605
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
Other
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $1 $1 $(6)
Provision for loan losses (15) (3) 36
Noninterest income (5) 1 3
Noninterest expenses 4 26 12
Provision (benefit) for income taxes
(FTE) 1 (6) (32)
Net income (loss) $6 $(15) $(19)
Net charge-offs $- $- $-
Selected average balances:
Assets $940 $959 $844
Loans 43 46 10
Deposits 22 46 34
Liabilities 247 357 220
Attributed equity 876 862 763
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
Total
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $484 $461 $448
Provision for loan losses 2 1 20
Noninterest income 219 210 228
Noninterest expenses 383 374 372
Provision (benefit) for income taxes
(FTE) 101 97 92
Net income (loss) $217 $199 $192
Net charge-offs $29 $38 $56
Selected average balances:
Assets $51,635 $50,750 $51,593
Loans 43,234 42,155 40,729
Deposits 40,000 39,782 40,913
Liabilities 46,535 45,678 46,590
Attributed equity 5,100 5,072 5,003
Statistical data:
Return on average assets (1) 1.68 % 1.57 % 1.49 %
Return on average attributed equity 16.99 15.73 15.35
Net interest margin (2) 4.09 4.00 3.77
Efficiency ratio 54.49 55.70 55.08
(1) Return on average assets is calculated based on the greater of average
assets or average liabilities and attributed equity.
(2) Net interest margin is calculated based on the greater of average
earning assets or average deposits and purchased funds.
N/M - - Not Meaningful
MARKET SEGMENT FINANCIAL RESULTS
Comerica Incorporated and Subsidiaries
(dollar amounts in millions) Midwest & Other Markets
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $272 $264 $266
Provision for loan losses 30 2 (30)
Noninterest income 148 147 145
Noninterest expenses 229 205 220
Provision (benefit) for income taxes
(FTE) 50 63 72
Net income (loss) $111 $141 $149
Net charge-offs $24 $17 $21
Selected average balances:
Assets $25,281 $24,621 $24,277
Loans 23,854 23,270 23,049
Deposits 18,910 18,858 19,068
Liabilities 19,671 19,628 19,721
Attributed equity 2,130 2,131 2,104
Statistical data:
Return on average assets (1) 1.76 % 2.28 % 2.46 %
Return on average attributed equity 20.89 26.39 28.34
Net interest margin (2) 4.53 4.56 4.60
Efficiency ratio 54.43 49.86 53.72
(dollar amounts in millions) Western
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $196 $186 $193
Provision for loan losses (4) (3) 13
Noninterest income 32 30 44
Noninterest expenses 98 91 92
Provision (benefit) for income taxes
(FTE) 50 48 55
Net income (loss) $84 $80 $77
Net charge-offs $5 $9 $33
Selected average balances:
Assets $13,640 $13,252 $12,655
Loans 12,971 12,656 11,948
Deposits 16,778 16,303 16,310
Liabilities 16,823 16,344 16,312
Attributed equity 1,043 1,025 1,036
Statistical data:
Return on average assets (1) 1.89 % 1.84 % 1.79 %
Return on average attributed equity 32.40 31.15 29.93
Net interest margin (2) 4.69 4.62 4.76
Efficiency ratio 42.99 42.33 38.61
(dollar amounts in millions) Texas
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $60 $59 $59
Provision for loan losses (10) 4 1
Noninterest income 19 18 19
Noninterest expenses 46 43 44
Provision (benefit) for income taxes
(FTE) 14 10 11
Net income (loss) $29 $20 $22
Net charge-offs $- $8 $2
Selected average balances:
Assets $5,127 $5,003 $4,603
Loans 4,945 4,807 4,445
Deposits 3,678 3,674 3,980
Liabilities 3,678 3,673 3,972
Attributed equity 463 449 433
Statistical data:
Return on average assets (1) 2.24 % 1.60 % 1.85 %
Return on average attributed equity 24.85 17.82 19.73
Net interest margin (2) 4.87 4.93 5.31
Efficiency ratio 57.33 56.05 56.62
Florida
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $11 $10 $9
Provision for loan losses 2 2 1
Noninterest income 4 4 4
Noninterest expenses 6 7 4
Provision (benefit) for income taxes
(FTE) 2 2 3
Net income (loss) $5 $3 $5
Net charge-offs $- $4 $-
Selected average balances:
Assets $1,455 $1,396 $1,308
Loans 1,442 1,383 1,298
Deposits 274 289 210
Liabilities 273 287 209
Attributed equity 69 67 62
Statistical data:
Return on average assets (1) 1.04 % 0.95 % 1.54 %
Return on average attributed equity 22.09 19.76 32.45
Net interest margin (2) 2.92 2.99 2.89
Efficiency ratio 47.94 52.81 31.92
Finance & Other Businesses
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $(55) $(58) $(79)
Provision for loan losses (16) (4) 35
Noninterest income 16 11 16
Noninterest expenses 4 28 12
Provision (benefit) for income taxes
(FTE) (15) (26) (49)
Net income (loss) $(12) $(45) $(61)
Net charge-offs $- $- $-
Selected average balances:
Assets $6,132 $6,478 $8,750
Loans 22 39 (11)
Deposits 360 658 1,345
Liabilities 6,090 5,746 6,377
Attributed equity 1,395 1,400 1,368
Statistical data:
Return on average assets (1) N/M N/M N/M
Return on average attributed equity N/M N/M N/M
Net interest margin (2) N/M N/M N/M
Efficiency ratio N/M N/M N/M
Total
June 30, March 31, June 30,
Three Months Ended 2005 2005 2004
Earnings summary:
Net interest income (expense) (FTE) $484 $461 $448
Provision for loan losses 2 1 20
Noninterest income 219 210 228
Noninterest expenses 383 374 372
Provision (benefit) for income taxes
(FTE) 101 97 92
Net income (loss) $217 $199 $192
Net charge-offs $29 $38 $56
Selected average balances:
Assets $51,635 $50,750 $51,593
Loans 43,234 42,155 40,729
Deposits 40,000 39,782 40,913
Liabilities 46,535 45,678 46,590
Attributed equity 5,100 5,072 5,003
Statistical data:
Return on average assets (1) 1.68 % 1.57 % 1.49 %
Return on average attributed equity 16.99 15.73 15.35
Net interest margin (2) 4.09 4.00 3.77
Efficiency ratio 54.49 55.70 55.08
(1) Return on average assets is calculated based on the greater of average
assets or average liabilities and attributed equity.
(2) Net interest margin is calculated based on the greater of average
earning assets or average deposits and purchased funds.
N/M - - Not Meaningful
PRNewswire -- July 20
END FIRST AND FINAL ADD
SOURCE: Comerica Incorporated
Web site: http://www.comerica.com/
