DETROIT, April 17 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today
reported record first quarter earnings per share of $1.10, compared to $0.98
in 1999, an increase of 12 percent. Net income for the first quarter of 2000
was $178 million, up 12 percent from $159 million for the same period in 1999.
Return on common equity was 21.35 percent and return on assets was 1.81
percent, compared to 21.90 percent and 1.76 percent, respectively, for the
first quarter of 1999.
"Our first quarter financial results reflect continued strong commercial
loan growth, our ability to effectively manage interest rate risk, solid asset
quality and significant increases in fee income," said Eugene A. Miller,
chairman, president and chief executive officer.
Net interest income for the first quarter of 2000 was $405 million, an
increase of $36 million or 10 percent from the same period last year. This
increase was primarily due to an increase in average business loans of $3
billion or 12 percent over last year's first quarter. The net interest margin
was 4.47 percent for the first quarter of 2000, compared to 4.51 percent for
the comparable quarter of 1999.
Noninterest income was $221 million for the first quarter of 2000, an
increase of $64 million or 41 percent from the same quarter last year.
Noninterest income in the first quarter 2000 included a gain of approximately
$30 million associated with the sale of $457 million of revolving check credit
and bankcard loans. Excluding the $30 million gain, noninterest income
increased 21 percent in the first quarter of 2000, compared to the first
quarter of 1999. Strong investment advisory fee growth at Munder Capital
Management contributed to the growth in noninterest income.
Noninterest expenses were $296 million for the first quarter of 2000,
compared to $263 million in 1999. Salaries and employee benefits, due to
annual merit increases and higher levels of revenue-related incentives, were
the primary reasons for the increase in expenses.
The provision for credit losses was $55 million in the first quarter of
2000, an increase of $10 million compared to the fourth quarter of 1999 and
$35 million compared to the first quarter of 1999. Net charge-offs for the
quarter were $29 million or 0.34 percent of average total loans, compared with
$32 million or 0.39 percent in the fourth quarter of 1999 and $19 million or
0.25 percent in the first quarter of 1999. Nonperforming assets were $191
million or 0.56 percent of loans and other real estate at March 31, 2000,
compared to $182 million or 0.56 percent at December 31, 1999, and $160
million or 0.52 percent at March 31, 1999. The allowance for credit losses as
a percent of loans was 1.49 percent at March 31, 2000, compared to 1.46 at
both December 31, 1999, and March 31, 1999.
Assets totaled $40 billion at March 31, 2000, and $36 billion at March 31,
1999, while common shareholders' equity was $3.3 billion at March 31, 2000,
compared to $2.9 billion one year earlier. Shares of common stock outstanding
were 156 million at March 31, 2000 and 1999. Total loans were $34 billion at
March 31, 2000, compared to $31 billion a year ago. Total deposits were $23
billion at March 31, 2000 and 1999.
Comerica Incorporated is a multi-state financial services provider
headquartered in Detroit, with bank subsidiaries in Michigan, California and
Texas, banking operations in Florida, and businesses in several other states.
Comerica also operates banking subsidiaries in Canada and Mexico.
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
(in thousands, except per share data)
Three Months Ended
March 31
2000 1999
Interest Income
Interest and fees on loans $693,840 $586,362
Interest on investment
securities:
Taxable 47,803 39,717
Exempt from federal income
tax 803 1,375
Total interest on investment
securities 48,606 41,092
Interest on short-term
investments 17,419 1,981
Total interest income 759,865 629,435
Interest Expense
Interest on deposits 169,171 149,674
Interest on short-term borrowings 52,459 45,372
Interest on medium- and
long-term debt 129,952 84,431
Net interest rate swap
(income)/expense 3,340 (18,874)
Total interest expense 354,922 260,603
Net interest income 404,943 368,832
Provision for credit losses 55,000 20,000
Net interest income after
provision for credit losses 349,943 348,832
Noninterest Income
Fiduciary and investment
management income 79,028 54,943
Service charges on deposit
accounts 43,892 41,698
Commercial lending fees 11,215 9,896
Letter of credit fees 10,694 8,491
Securities gains 253 1,202
Other noninterest income 75,615 40,664
Total noninterest income 220,697 156,894
Noninterest Expenses
Salaries and employee benefits 168,001 152,483
Net occupancy expense 24,954 23,094
Equipment expense 15,074 14,851
Outside processing fee expense 12,332 12,854
Other noninterest expenses 75,662 60,132
Total noninterest expenses 296,023 263,414
Income before income taxes 274,617 242,312
Provision for income taxes 96,901 83,200
Net income $177,716 $159,112
Net income applicable to common
stock $173,441 $154,837
Basic net income per common
share $1.11 $0.99
Diluted net income per common
share $1.10 $0.98
Cash dividends declared
on common stock $62,519 $56,149
Dividends per common share $0.40 $0.36
