DETROIT, April 15 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record first quarter diluted earnings per share of $0.98, compared to
$0.88 in 1998, an increase of 11 percent. Net income for the first quarter of
1999 was $159 million, up 10 percent from $144 million for the same period in
1998. Return on common equity was 21.90 percent and return on assets was 1.76
percent, compared to 22.09 percent and 1.61 percent, respectively, for the
first quarter of 1998.``Our first quarter financial performance reflects continued strong
commercial loan growth, emphasis on maintaining high asset quality and
dedication to efficiency,'' said Eugene A. Miller, chairman and chief executive
officer.Net interest income for the first quarter of 1999 was $369 million, an
increase of $3 million from the same period last year. Net interest income
and the net interest margin were both affected by the sale of $2.0 billion of
indirect consumer loans and non-relationship credit card receivables in the
second quarter 1998. The net interest margin was 4.51 percent for the first
quarter of 1999, compared to 4.50 percent for the comparable quarter of 1998.Noninterest income was $157 million for the first quarter of 1999,
compared to $135 million for the same quarter last year. Excluding the effect
of acquisitions, divestitures and securities gains in both periods,
noninterest income increased 10 percent in the first quarter of 1999, compared
to the first quarter of 1998.Noninterest expenses were $263 million for the first quarter of 1999,
compared to $250 million in 1998. Excluding the effect of acquisitions and
divestitures in both periods, noninterest expenses increased 4 percent in the
first quarter of 1999, compared to the first quarter of 1998.The provision for credit losses was $20 million in the first quarter of
1999, a decrease of $8 million compared to the same period in 1998. Net
charge-offs for the quarter were $19 million or 0.25 percent of average total
loans, compared with $22 million or 0.31 percent in the first quarter of 1998.
Nonperforming assets were $160 million or 0.52 percent of loans and other real
estate at March 31, 1999, compared to $121 million or 0.39 percent at
December 31, 1998, and $88 million or 0.32 percent at March 31, 1998. The
allowance for credit losses as a percent of loans was 1.46 percent at
March 31, 1999, compared to 1.48 at December 31, 1998, and 1.58 at the end of
the first quarter of 1998.Assets totaled $36 billion at March 31, 1999 and 1998, while common
shareholders' equity was $2.9 billion at March 31, 1999, compared to $2.6
billion one year earlier. Shares of common stock outstanding at March 31,
1999 were 156 million compared to 157 million at March 31, 1998. Total loans
were $31 billion at March 31, 1999, compared to $27 billion a year ago. Total
deposits were $23 billion at March 31, 1999 and 1998.Comerica Incorporated is a multi-state financial services provider
headquartered in Detroit, with banking subsidiaries in Michigan, California
and Texas, banking operations in Florida, and businesses in seven other
states. Comerica also operates banking subsidiaries in Canada and Mexico.
Comerica is celebrating its 150th anniversary in 1999.
CONSOLIDATED STATEMENTS OF INCOMEComerica Incorporated and Subsidiaries(in thousands, except per share data)Three Months EndedMarch 311999 1998Interest IncomeInterest and fees on loans $586,362 $606,990Interest on investmentsecurities:Taxable 39,717 62,306Exempt from federal incometax 1,375 2,093Total interest on investmentsecurities 41,092 64,399Interest on short-term investments 1,981 2,472Total interest income 629,435 673,861Interest ExpenseInterest on deposits 149,674 167,137Interest on short-termborrowings:Federal funds purchased andsecurities sold underagreements to repurchase 39,951 30,597Other borrowed funds 5,421 13,249Interest on medium- andlong-term debt 84,431 109,828Net interest rate swap income (18,874) (12,558)Total interest expense 260,603 308,253Net interest income 368,832 365,608Provision for credit losses 20,000 28,000Net interest income afterprovision for credit losses 348,832 337,608
Noninterest Income
Fiduciary and investment
management income 54,943 40,735
Service charges on deposit
accounts 41,698 38,450
Commercial lending fees 9,896 8,130
Securities gains/(losses) 1,202 (150)
Other noninterest income 49,155 47,687
Total noninterest income 156,894 134,852
Noninterest Expenses
Salaries and employee benefits 152,483 134,767
Net occupancy expense 23,094 22,761
Equipment expense 14,851 15,124
Outside processing fee expense 12,854 9,736
Other noninterest expenses 60,132 67,485
Total noninterest expenses 263,414 249,873
Income before income taxes 242,312 222,587
Provision for income taxes 83,200 78,204
Net income $159,112 $144,383
Net income applicable to common
stock $154,837 $140,108
Basic net income per common
share $0.99 $0.89
Diluted net income per common
share $0.98 $0.88
Cash dividends declared
on common stock $56,149 $50,173
Dividends per common share $0.36 $0.32
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)
Mar. 31 Dec. 31
1999 1998
Assets
Cash and due from banks $1,489,205 $1,773,100
Short-term investments 84,275 109,640
Investment securities available
for sale 2,484,883 2,712,165
Commercial loans 19,361,893 19,086,541
International loans 2,677,582 2,713,259
Real estate construction
loans 1,165,498 1,079,614
Commercial mortgage loans 4,361,292 4,179,271
Residential mortgage loans 975,321 1,037,941
Consumer loans 1,800,993 1,861,630
Lease financing 639,966 646,607
Total loans 30,982,545 30,604,863
Less allowance for credit
losses (452,936) (452,409)
Net loans 30,529,609 30,152,454
Premises and equipment 347,479 352,650
Customers' liability on
acceptances outstanding 11,374 12,335
Accrued income and other
assets 1,500,717 1,488,487
Total assets $36,447,542 $36,600,831
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $6,701,698 $6,999,337
Interest-bearing deposits 15,883,633 17,313,796
Total deposits 22,585,331 24,313,133
Federal funds purchased and
securities sold under
agreements to repurchase 3,144,172 3,108,985
Other borrowed funds 389,594 471,168
Acceptances outstanding 11,374 12,335
Accrued expenses and other
liabilities 426,480 366,338
Medium- and long-term debt 6,731,749 5,282,259
Total liabilities 33,288,700 33,554,218
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
3/31/99, 12/31/98 and 3/31/98 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares
at 3/31/99, 157,233,088
shares at 12/31/98 and
157,188,873 shares at
3/31/98 786,166 786,165
Capital surplus 30,729 24,649
Accumulated nonowner changes
in equity (3,917) (6,455)
Retained earnings 2,168,145 2,086,589
Deferred compensation (4,591) (5,202)
Less cost of common stock in
treasury - 1,026,993 shares
at 3/31/99, 1,351,997 shares
at 12/31/98 and 578,661 shares
at 3/31/98 (67,690) (89,133)
Total shareholders'
equity 3,158,842 3,046,613
Total liabilities and
shareholders' equity $36,447,542 $36,600,831
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
(in thousands, except share data)
Mar. 31
1998
Assets
Cash and due from banks $1,883,135
Short-term investments 2,234,243
Investment securities available
for sale 3,744,532
Commercial loans 16,498,894
International loans 2,084,372
Real estate construction
loans 912,100
Commercial mortgage loans 3,696,455
Residential mortgage loans 1,462,667
Consumer loans 2,000,608
Lease financing 554,017
Total loans 27,209,113
Less allowance for credit
losses (429,648)
Net loans 26,779,465
Premises and equipment 362,905
Customers' liability on
acceptances outstanding 12,081
Accrued income and other
assets 1,475,990
Total assets $36,492,351
Liabilities and Shareholders'
Equity
Noninterest-bearing deposits $6,211,420
Interest-bearing deposits 16,981,882
Total deposits 23,193,302
Federal funds purchased and
securities sold under
agreements to repurchase 2,387,061
Other borrowed funds 914,094
Acceptances outstanding 12,081
Accrued expenses and other
liabilities 422,111
Medium- and long-term debt 6,736,815
Total liabilities 33,665,464
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
3/31/99, 12,31/98 and 3/31/98 250,000
Common stock - $5 par value:
Authorized - 325,000,000
shares
Issued - 157,233,107 shares
at 3/31/99, 157,233,088
shares at 12/31/98 and
157,188,873 shares at
3/31/98 785,944
Capital surplus 12,906
Accumulated nonowner changes
in equity 4,425
Retained earnings 1,814,056
Deferred compensation (1,570)
Less cost of common stock in
treasury - 1,026,993 shares
at 3/31/99, 1,351,997 shares
at 12/31/98 and 578,661 shares
at 3/31/98 (38,874)
Total shareholders'
equity 2,826,887
Total liabilities and
shareholders' equity $36,492,351
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
(in thousands, except per share data,
average balances and ratios)
Three Months Ended
March 31
1999 1998
Per Share and Common Stock
Data
Diluted net income $0.98 $0.88
Cash dividends declared 0.36 0.32
Common shareholders' equity
(at March 31) 18.62 16.45
Average diluted shares 158,434 159,768
Key Ratios (in percent)
Return on average common equity 21.90 22.09
Return on average assets 1.76 1.61
Average common equity as a
percentage of average
assets 7.84 7.06
Core capital ratio (1999 estimated) 6.47 6.26
Total capital ratio (1999 estimated) 10.46 9.79
Leverage ratio (1999 estimated) 7.87 7.21
Average Balances (in millions)
Commercial loans (including
lease financing) $19,658 $16,512
International loans 2,678 2,082
Real estate construction loans 1,119 945
Commercial mortgage loans 4,270 3,663
Residential mortgage loans 1,025 1,521
Consumer loans 1,831 4,198
Total loans 30,581 28,921
Earning assets 33,226 32,938
Total assets 36,083 35,908
Interest-bearing deposits 16,494 16,303
Noninterest-bearing deposits 6,239 5,997
Total interest-bearing
liabilities 26,366 26,664
Common shareholders' equity 2,828 2,537
Net Interest Income
Net interest
income (fully taxable
equivalent basis) $370,219 $367,578
Fully taxable equivalent
adjustment 1,387 1,971
Net interest margin (in percent) 4.51 4.50
Credit Quality
Nonaccrual loans $147,326 $73,446
Reduced-rate loans 7,466 8,207
Other real estate 5,352 6,306
Total nonperforming assets 160,144 87,959
Loans 90 days past due 42,469 61,110
Gross charge-offs 24,710 32,838
Recoveries 5,229 10,339
Net charge-offs 19,481 22,499
Allowance for credit losses
as a percentage of total
loans (in percent) 1.46 1.58
Nonperforming assets as a
percentage of total
loans and other real
estate (in percent) 0.52 0.32
Net loans charged off as
a percentage of average
total loans (in percent) 0.25 0.31
Allowance for credit losses
as a percentage of total
nonperforming assets (in
percent) 283 488
Additional Data
Goodwill $337,355 $226,776
Core deposit intangible 16,708 22,018
Other intangibles 2,128 2,906
Loan servicing rights 4,232 26,849
Amortization of intangibles 8,477 6,731
