DALLAS, Oct. 17 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported third quarter 2008 income from continuing operations of $27 million, or $0.18 per diluted share, compared to $56 million, or $0.37 per diluted share, for the second quarter 2008 and $180 million, or $1.17 per diluted share, for the third quarter 2007. Third quarter 2008 included a $174 million provision for credit losses, compared to $177 million for the second quarter 2008 and $45 million for the third quarter 2007. During the third quarter 2008, Comerica recognized a pre-tax charge of $96 million ($61 million after-tax, or $0.40 per diluted share), recorded in "litigation and operational losses," related to a previously announced offer to repurchase (at par) auction-rate securities (ARS) from customers. In addition, third quarter 2008 net income reflected a $27 million pre-tax gain ($17 million after-tax, or $0.11 per diluted share) related to the sale of shares in Visa, Inc. (Visa) and net after-tax charges of $7 million ($0.04 per diluted share) which included settlements with the Internal Revenue Service on disallowed foreign tax credits related to a series of loans to foreign borrowers and both the net interest income impact and tax-related interest on certain structured leasing transactions, as well as other adjustments to tax reserves.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO) (dollar amounts in millions, except per share data) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07 Net interest income $466* $442* $503 Provision for loan losses 165 170 45 Noninterest income 240 242 230 Noninterest expenses 514 423 423 Income from continuing operations, net of tax 27 56 180 Net income 28 56 181 Diluted EPS from continuing operations 0.18 0.37 1.17 Return on average common shareholders' equity from continuing operations 2.12% 4.26% 14.27% Tier 1 capital ratio 7.35** 7.45 7.68 Net interest margin 3.11* 2.91* 3.66 * Third quarter 2008 and second quarter 2008 net interest income declined $8 million and $30 million, respectively, and the net interest margin declined six basis points and 19 basis points, respectively, due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.17 percent in the third quarter 2008 and 3.10 percent in the second quarter 2008. ** September 30, 2008, ratio is estimated.
The following table illustrates the after-tax impact of certain items on income from continuing operations.
3rd Qtr '08 2nd Qtr '08 (dollar amounts in millions, except per share data) Amount Per Share Amount Per Share Gains on sales of Visa and MasterCard shares $17 $0.11 $9 $0.06 Offer to repurchase ARS (61) (0.40) - - Tax-related non-cash charges to lease income (6) (0.04) (19) (0.13) Other tax-related items (1) - (13) (0.08)
"In an economic environment that is as challenging and volatile as any we have ever seen, Comerica's core operating earnings remained stable compared to the prior two quarters," said Ralph W. Babb Jr., chairman and chief executive officer. "As expected, net credit-related charge-offs and the provision for loan losses were unchanged.
"In this uncertain environment, we are taking actions to improve our capital ratios and enhance our balance sheet strength, including a previously announced intention to reduce our dividend and the execution of a loan optimization program, which is working and producing the desired results. Maintaining a solid capital position is prudent and provides us the flexibility to navigate these swift economic currents and continue to invest in our growth markets."
Third Quarter 2008 Compared to Second Quarter 2008
-- In response to Comerica's loan optimization plan, average loans declined seven percent on an annualized basis, with declines of five percent in the Texas market, three percent in the Midwest market and 13 percent in the Western market.
-- On an annualized basis, average noninterest-bearing deposits, excluding Financial Services Division (FSD) deposits, increased 13 percent.
-- September 30, 2008, core deposits, excluding the Financial Services Division, increased $273 million compared to June 30, 2008, due to increases in noninterest-bearing deposits and customer certificates of deposit.
-- The net interest margin was 3.11 percent in the third quarter 2008, or 3.17 percent excluding the charge to interest income on certain structured lease transactions.
-- Net credit-related charge-offs were $116 million, or 90 basis points as a percent of average total loans, for the third quarter 2008, compared to $113 million, or 86 basis points as a percent of average total loans, for the second quarter 2008. The provision for loan losses was $165 million for the third quarter 2008, compared to $170 million for the second quarter 2008, and the period-end allowance to total loans ratio increased to 1.38 percent from 1.28 percent at June 30, 2008.
-- Excluding net securities gains, noninterest income decreased $15 million, primarily the result of a $10 million decrease in deferred compensation asset returns (which is offset by a decrease in deferred compensation plan costs in noninterest expenses).
-- Noninterest expenses increased $91 million from the second quarter, due to the $96 million charge related to the offer to repurchase ARS, partially offset by a decrease in deferred compensation plan costs ($10 million).
-- The estimated Tier 1 common and Tier 1 capital ratios were 6.69 and 7.35 percent, respectively, both within the targeted ranges. The $96 million ($61 million, after-tax) ARS charge and related commitment to repurchase reduced the estimated Tier 1 common and Tier 1 capital ratios by 21 basis points and 22 basis points, respectively.
Net Interest Income and Net Interest Margin
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net interest income $466* $442* $503
Net interest margin 3.11%* 2.91%* 3.66%
Selected average balances:
Total earning assets $59,946 $61,088 $54,641
Total investment securities 8,146 8,296 4,405
Total loans 51,508 52,367 49,874
Total core deposits**, excluding FSD 31,439 32,058 31,141
Total noninterest-bearing deposits 10,646 10,648 10,840
Total noninterest-bearing deposits,
excluding FSD 9,104 8,825 8,265
* Third quarter 2008 and second quarter 2008 net interest income declined
$8 million and $30 million, respectively, and the net interest margin
declined six basis points and 19 basis points, respectively, due to
tax-related non-cash lease income charges. Excluding these charges, the
net interest margin would have been 3.17 percent in the third quarter
2008 and 3.10 percent in the second quarter 2008.
** Core deposits exclude institutional certificates of deposit and foreign
office time deposits.
-- The $24 million increase in net interest income in the third quarter 2008, when compared to second quarter 2008, resulted primarily from the second quarter $30 million non-cash charge to lease income, partially offset by the third quarter $8 million non-cash charge to lease income.
-- The net interest margin of 3.11 percent increased seven basis points, after excluding the tax-related non-cash lease income charges of 19 basis points in the second quarter 2008 and six basis points in the third quarter 2008, due to improved loan spreads and lower deposit rates.
-- September 30, 2008, core deposits, excluding the Financial Services Division, increased $273 million compared to June 30, 2008, due to increases in noninterest-bearing deposits and customer certificates of deposit.
-- Total average Financial Services Division deposits decreased $368 million from the second quarter 2008 and $1.3 billion from the third quarter 2007. This division serves title and escrow companies that facilitate residential mortgage transactions and benefits from customer deposits related to mortgage escrow balances. Deposits declined due to cooling of the California housing market, combined with destabilization of the mortgage market.
Noninterest Income
Noninterest income was $240 million for the third quarter 2008, compared to $242 million for the second quarter 2008 and $230 million for the third quarter 2007. Net securities gains in noninterest income included a $27 million gain on the sale of Comerica's remaining ownership of Visa shares in the third quarter 2008 and a $14 million gain on the sale of MasterCard shares in the second quarter 2008. In addition, deferred compensation asset returns decreased $10 million in the third quarter 2008, when compared to the second quarter 2008 (which is offset by a decrease in deferred compensation plan costs in noninterest expenses). Certain categories of noninterest income are highlighted in the table below.
(in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net securities gains $27 $14 $4
Other noninterest income
Net income (loss) from principal
investing and warrants 1 (3) 11
Deferred compensation asset returns* (6) 4 (2)
* 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 $514 million for the third quarter 2008, compared to $423 million for both the second quarter 2008 and third quarter 2007. The $91 million increase in noninterest expenses in the third quarter 2008, compared to the second quarter 2008, reflected the $96 million charge related to the offer to repurchase ARS (included in "litigation and operational losses"), partially offset by a decrease in deferred compensation plan costs ($10 million). The ARS repurchases from customers will be completed in the fourth quarter 2008. Certain categories of noninterest expenses are highlighted in the table below.
3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Salaries
Regular salaries $155 $151 $162
Severance 2 1 -
Incentives 31 35 35
Deferred compensation plan costs (6) 4 (2)
Share-based compensation 10 11 12
Total salaries 192 202 207
Employee benefits 46 48 49
Customer services 2 3 11
Litigation and operational losses 105* 3 6
Provision for credit losses on
lending-related commitments 9 7 -
Other noninterest expenses
FDIC insurance 6 2 1
* Third quarter 2008 litigation and operational losses included a
$96 million charge related to an offer to repurchase auction-rate
securities from customers.
Tax-related Items
The third quarter 2008 provision for income taxes reflected net after-tax charges of $1 million which included the acceptance of a global settlement offered by the Internal Revenue Service (IRS) on certain structured leasing transactions, settlement with the IRS on disallowed foreign tax credits related to a series of loans to foreign borrowers and other adjustments to tax reserves. The second quarter 2008 provision for income taxes reflected an after-tax charge of $13 million related to the structured leasing transactions. The reassessment of the size and timing of tax deductions related to the leasing transactions also resulted in the $8 million ($6 million after-tax) and $30 million ($19 million after-tax) respective charges to lease income in the third and second quarters of 2008 previously discussed.
Credit Quality
"Net charge-offs related to Western market residential real estate development were lower than the two previous quarters, reflecting our aggressive management of this portfolio," said Babb. "As expected, we are seeing softness in small business and middle market, which is consistent with our outlook."
-- The allowance to loan ratio increased to 1.38 percent at September 30, 2008, from 1.28 percent at June 30, 2008.
-- The provision for loan losses and loan quality reflected continuing challenges in residential real estate development located in the Western market (primarily California) and the economies in all major markets.
-- Net credit-related charge-offs in the Commercial Real Estate business line in the third quarter 2008 were $57 million, of which $39 million were from residential real estate developers in the Western market. Comparable numbers for the second quarter 2008 were $73 million in total, of which $56 million were from residential real estate developers in the Western market.
-- Net loan charge-offs, excluding the Commercial Real Estate business line, were $59 million in the third quarter 2008, or 52 basis points of average non-Commercial Real Estate loans, compared to $40 million, or 35 basis points, in the second quarter 2008.
-- Nonperforming assets increased to 1.71 percent of total loans and foreclosed property for the third quarter 2008. During the third quarter 2008, $280 million of loan relationships greater than $2 million were transferred to nonaccrual status, a decrease of $24 million from the second quarter 2008. Of the transfers of loan relationships greater than $2 million to nonaccrual in the third quarter 2008, $145 million were in the Commercial Real Estate business line, a decrease of $43 million from the second quarter 2008.
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net loan charge-offs $116 $112 $40
Net lending-related commitment
charge-offs - 1 -
Total net credit-related
charge-offs 116 113 40
Net loan charge-offs/Average
total loans 0.90% 0.86% 0.32%
Net credit-related charge-offs/
Average total loans 0.90 0.86 0.32
Provision for loan losses $165 $170 $45
Provision for credit losses on
lending-related commitments 9 7 -
Total provision for credit losses 174 177 45
Nonperforming loans 863 731 272
Nonperforming assets (NPAs) 881 748 291
NPAs/Total loans and foreclosed
property 1.71% 1.44% 0.59%
Allowance for loan losses $712 $663 $512
Allowance for credit losses on
lending-related commitments* 40 31 19
Total allowance for credit losses 752 694 531
Allowance for loan losses/Total loans 1.38% 1.28% 1.03%
Allowance for loan losses/
Nonperforming loans 82 91 176
* Included in "Accrued expenses and other liabilities" on the
consolidated balance sheets.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $65.2 billion and $5.1 billion, respectively, at September 30, 2008, compared to $66.0 billion and $5.1 billion, respectively, at June 30, 2008. There were approximately 150 million shares outstanding at September 30, 2008. No shares were repurchased in the open market in the first nine months of 2008.
Comerica's third quarter 2008 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 6.69 percent, 7.35 percent and 11.22 percent, respectively. The $96 million ($61 million, after-tax) ARS charge and related commitment to repurchase reduced the estimated Tier 1 common, Tier 1 and total capital ratios by 21 basis points, 22 basis points and 29 basis points, respectively.
Full-Year 2008 Outlook Compared to Full-Year 2007 from Continuing Operations
-- Low to mid single-digit full-year average loan growth, with loans declining in the fourth quarter 2008.
-- Mortgage-backed FNMA and FHLMC securities (AAA-rated) averaging about $8 billion for the fourth quarter 2008. In addition, about $1.4 billion of ARS will be repurchased during the fourth quarter 2008.
-- Average full-year net interest margin about 3.05 percent (3.10 percent excluding the second and third quarter lease income charges), with a net interest margin of about 3.00 percent in the fourth quarter 2008. The fourth quarter net interest margin reflects the three basis point negative impact of ARS repurchases and the 50 basis point reduction in the federal funds rate announced October 8, 2008. This full-year net interest margin reflects a five basis point decline from the previous outlook.
-- Full-year net credit-related charge-offs of about $450 million. The provision for credit losses is expected to exceed net charge-offs.
-- Mid single-digit growth in noninterest income.
-- Low single-digit increase in noninterest expenses (low single-digit decrease excluding the charge related to the offer to repurchase ARS).
-- Effective tax rate of about 27 percent for the full year, with a rate of about 20 percent for the fourth quarter 2008.
-- Maintain a Tier 1 capital ratio within a target range of 7.25 to 8.25 percent.
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 September 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses third quarter 2008 results compared to second quarter 2008.
The following table presents net income (loss) by business segment.
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Business Bank $65 186% $57 73% $137 70%
Retail Bank 21 57 7 9 39 20
Wealth & Institutional
Management (51) (143) 14 18 20 10
35 100% 78 100% 196 100%
Finance (2) (5) (8)
Other* (5) (17) (7)
Total $28 $56 $181
* Includes discontinued operations and items not directly associated with
the three major business segments or the Finance Division.
Business Bank
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net interest income (FTE) $323 $296 $337
Provision for loan losses 135 123 43
Noninterest income 75 92 82
Noninterest expenses 175 185 177
Net income 65 57 137
Net credit-related charge-offs 95 96 30
Selected average balances:
Assets 41,357 42,335 40,796
Loans 40,506 41,510 39,745
FSD loans 401 469 1,191
Deposits 14,933 15,384 15,947
FSD deposits 2,449 2,817 3,789
Net interest margin 3.17% 2.85% 3.36%
-- Average loans decreased $1.0 billion, led by declines in National Dealer Services and Middle Market.
-- Average deposits, excluding the Financial Services Division, decreased $83 million, primarily due to Technology and Life Sciences and smaller declines in other businesses, partially offset by an increase in Global Corporate. Financial Services Division deposits decreased $368 million.
-- The net interest margin was impacted by non-cash charges to lease income in both the third and second quarter 2008. Excluding these charges, the net interest margin increased 10 basis points from increased loan spreads and decreases in lower-spread money market accounts and certificates of deposit.
-- The provision for loan losses increased $12 million, primarily in Global Corporate, Technology and Life Sciences and Specialty Businesses, partially offset by a decline in Commercial Real Estate.
-- Noninterest income decreased $17 million, mostly due to a second quarter 2008 gain on the sale of MasterCard shares of $14 million.
-- Noninterest expenses decreased $10 million, partially due to lower salaries and employee benefits.
Retail Bank (dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07 Net interest income (FTE) $142 $146 $169 Provision for loan losses 33 29 7 Noninterest income 80 54 56 Noninterest expenses 161 161 160 Net income 21 7 39 Net credit-related charge-offs 17 14 9 Selected average balances: Assets 7,046 7,100 6,854 Loans 6,362 6,348 6,111 Deposits 16,596 17,043 17,145 Net interest margin 3.40% 3.44% 3.91%
-- Average loans increased $14 million, or one percent on an annualized basis.
-- Average deposits decreased $447 million, primarily due to decreases in money market investment accounts and customer certificates of deposit.
-- The net interest margin of 3.40 percent declined four basis points, primarily due to a decline in loan and deposit spreads.
-- The provision for loan losses increased $4 million due to Small Business.
-- Noninterest income increased $26 million, due to a third quarter 2008 gain of $27 million on the sale of Visa shares.
-- Eight new banking centers were opened in the third quarter 2008 (six in the Western market).
Wealth and Institutional Management (dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07 Net interest income (FTE) $37 $37 $37 Provision for loan losses 7 5 (5) Noninterest income 71 74 70 Noninterest expenses 180 83 81 Net income (51) 14 20 Net credit-related charge-offs 4 3 1 Selected average balances: Assets 4,759 4,646 4,152 Loans 4,624 4,502 3,990 Deposits 2,351 2,493 2,378 Net interest margin 3.17% 3.28% 3.59%
-- Average loans increased $122 million, or 11 percent on an annualized basis.
-- Average deposits decreased $142 million, primarily due to declines in money market investment account balances, interest-bearing transaction deposit accounts and customer certificates of deposit.
-- The net interest margin of 3.17 percent declined 11 basis points, primarily due to a decline in deposit spreads.
-- Noninterest expenses increased $97 million, due to the $96 million charge related to the offer to repurchase auction-rate securities from customers.
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 September 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses third quarter 2008 results compared to second quarter 2008.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Midwest $51 144% $52 68% $79 40%
Western 9 25 (20) (26) 55 28
Texas 13 36 17 21 27 14
Florida (1) (3) (1) (2) 2 1
Other Markets (44)* (123) 23 29 18 9
International 7 21 7 10 15 8
35 100% 78 100% 196 100%
Finance & Other Businesses** (7) (22) (15)
Total $28 $56 $181
* Third quarter 2008 included a $96 million charge ($61 million,
after-tax) related to an offer to repurchase auction-rate securities
from customers.
** Includes discontinued operations and items not directly
associated with the geographic markets.
Midwest
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net interest income (FTE) $197 $172 $222
Provision for loan losses 52 24 15
Noninterest income 142 136 119
Noninterest expenses 205 205 206
Net income 51 52 79
Net credit-related charge-offs 44 42 23
Selected average balances:
Assets 19,820 19,891 19,131
Loans 19,125 19,255 18,526
Deposits 15,926 16,056 15,636
Net interest margin 4.08% 3.58% 4.73%
-- Average loans decreased $130 million, led by declines in Middle Market and National Dealer, partially offset by growth in Global Corporate.
-- Average deposits decreased $130 million, primarily due to a decrease in Personal Banking, partially offset by an increase in Global Corporate.
-- The net interest margin was impacted by non-cash charges to lease income in both the third and second quarter 2008. Excluding these charges, the net interest margin increased seven basis points due to an increase in loan spreads.
-- The provision for loan losses increased $28 million due to Commercial Real Estate and Global Corporate.
-- Noninterest income increased $6 million and included $22 million of the third quarter 2008 gain on the sale of Visa shares, partially offset by a second quarter 2008 gain of $14 million on the sale of MasterCard shares.
Western Market
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net interest income (FTE) $169 $171 $185
Provision for loan losses 82 113 23
Noninterest income 38 34 36
Noninterest expenses 112 115 110
Net income (loss) 9 (20) 55
Net credit-related charge-offs 51 59 7
Selected average balances:
Assets 16,627 17,241 17,095
Loans 16,381 16,918 16,543
FSD loans 401 469 1,191
Deposits 11,729 12,345 13,009
FSD deposits 2,255 2,611 3,607
Net interest margin 4.09% 4.04% 4.43%
-- Average loans decreased $537 million, due to declines in the National Dealer Services, Middle Market and Commercial Real Estate lines of businesses.
-- Average deposits, excluding the Financial Services Division, decreased $260 million, primarily due to decreases in Private Banking and Middle Market. Financial Services Division deposits decreased $356 million.
-- The net interest margin of 4.09 percent increased five basis points, primarily due to a decrease in low-rate loans in the Financial Services Division and decreases in lower-spread money market accounts and certificates of deposit.
-- The provision for loan losses decreased $31 million, primarily due to Commercial Real Estate, partially offset by increases in Technology and Life Sciences and Small Business.
-- Noninterest income increased $4 million, primarily due to an increase in principal investing and warrant income.
-- Six new banking centers were opened in the third quarter 2008.
Texas Market
(dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07
Net interest income (FTE) $73 $74 $73
Provision for loan losses 18 6 (2)
Noninterest income 27 22 24
Noninterest expenses 61 63 58
Net income 13 17 27
Total net credit-related
charge-offs 9 3 1
Selected average balances:
Assets 7,945 8,063 7,172
Loans 7,691 7,795 6,902
Deposits 3,956 4,061 3,920
Net interest margin 3.75% 3.78% 4.17%
-- Average loans decreased $104 million, primarily due to declines in Energy Lending and National Dealer Services, partially offset by growth in Commercial Real Estate.
-- Average deposits decreased $105 million, primarily due to declines in Personal Banking and Technology and Life Sciences.
-- The net interest margin of 3.75 percent decreased three basis points, primarily due a decline in deposit balances and deposit spreads.
-- The provision for loan losses increased $12 million, primarily in Energy Lending.
-- Noninterest income increased $5 million and included $4 million of the third quarter 2008 gain on the sale of Visa shares.
-- One new banking center opened in the third quarter 2008. Florida Market (dollar amounts in millions) 3rd Qtr '08 2nd Qtr '08 3rd Qtr '07 Net interest income (FTE) $12 $12 $12 Provision for loan losses 7 7 3 Noninterest income 4 4 4 Noninterest expenses 10 11 10 Net income (loss) (1) (1) 2 Net credit-related charge-offs 3 8 1 Selected average balances: Assets 1,900 1,854 1,706 Loans 1,900 1,851 1,692 Deposits 262 306 271 Net interest margin 2.53% 2.50% 2.94%
-- Average loans increased $49 million, primarily due to growth in Private Banking, Commercial Real Estate and Middle Market, partially offset by a decrease in National Dealer Services.
-- Average deposits decreased $44 million due to a decline in Private Banking and balance transfers in Global Corporate from Florida to Other Markets.
-- One new banking center opened in the third quarter 2008. Conference Call and Webcast
Comerica will host a conference call to review third quarter 2008 financial results at 7 a.m. CDT Friday, October 17, 2008. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 65151410). 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 October 31, 2008. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 65151410). 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.
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 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 these and other 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.
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