DALLAS, July 17 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2008 income from continuing operations of $56 million, or $0.37 per diluted share, compared to $110 million, or $0.73 per diluted share, for the first quarter 2008 and $196 million, or $1.25 per diluted share, for the second quarter 2007.
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Second quarter 2008 included a $177 million provision for credit losses, compared to $163 million for the first quarter 2008 and $34 million for the second quarter 2007. Also during the second quarter of 2008, Comerica recorded combined pre-tax charges of $50 million ($32 million after-tax, or $0.21 per share) related to an updated assessment of the timing of tax deductions on certain structured lease transactions. The charges were recorded in net interest income ($0.13 per share) and the provision for income taxes ($0.08 per share).
First quarter 2008 included pre-tax income of $34 million ($22 million after-tax, or $0.14 per share) related to ownership in Visa.
(dollar amounts in millions,
except per share data) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income $442 * $476 $509
Provision for loan losses 170 159 36
Noninterest income 242 237 225
Noninterest expenses 423 403 411
Income from continuing operations,
net of tax 56 110 196
Net income 56 109 196
Diluted EPS from continuing
operations 0.37 0.73 1.25
Diluted EPS from discontinued
operations** - - -
Diluted EPS 0.37 0.73 1.25
Return on average common
shareholders'
equity from continuing operations 4.26 % 8.51 % 15.44 %
Return on average common
shareholders' equity 4.25 8.42 15.44
Tier 1 capital ratio 7.36 7.40 7.87
Net interest margin 2.91 * 3.22 3.76
* Second quarter 2008 net interest income declined $30 million and the net interest margin declined by 19 basis points due to a non-cash lease income charge. Excluding this charge, the net interest margin would have been 3.10%, consistent with the full-year outlook.
** In the fourth quarter 2006, Comerica sold its stake in Munder Capital Management (Munder) and reports Munder as a discontinued operation in all periods presented.
"In an environment that continued to be challenging and volatile, our core operating earnings were stable," said Ralph W. Babb Jr., chairman and chief executive officer. "As expected, our net loan charge-offs were similar to the first quarter, as credit issues remained focused on our California residential real estate development portfolio. Excluding the effect of the tax-related charge to income on structured lease transactions, our net interest margin was consistent with our full-year outlook. Expenses remained well controlled with reduced personnel.
"Our capital ratios were stable and within our targeted ranges. We are optimizing our capital usage, with particular focus on rationalizing our loan portfolio with the appropriate credit standards, loan pricing and return hurdles."
Second Quarter 2008 Compared to First Quarter 2008
-- On an annualized basis, average loans increased four percent, with growth of eight percent in the Texas market, five percent in the Midwest market and one percent in the Western market. Period-end loans declined $601 million from March 31, 2008 to June 30, 2008.
-- On an annualized basis, excluding Financial Services Division (FSD) deposits and institutional certificates of deposit, noninterest-bearing deposits increased four percent, while total deposits decreased seven percent, due to competitive and economic pressures, and attractive alternatives to bank deposits, such as in Comerica Securities, where there has been asset growth.
-- The net interest margin was 2.91 percent in the second quarter 2008, a decrease of 31 basis points from 3.22 percent in the first quarter 2008, largely due to a charge to income on certain structured lease transactions (-19 basis points) discussed below and the reduced contribution of noninterest-bearing funds in a lower rate environment. Excluding the lease income charge, the net interest margin was 3.10 percent, consistent with the full-year outlook.
-- Net credit-related charge-offs were $113 million, or 86 basis points as a percent of average total loans, for the second quarter 2008, compared to $110 million, or 85 basis points as a percent of average total loans, for the first quarter 2008. Of the second quarter credit-related charge-offs, $73 million were in the Commercial Real Estate business line, predominantly with residential real estate developers in the Western market. The remaining net credit-related charge-offs of $40 million were 35 basis points of average non-Commercial Real Estate loans. The provision for loan losses was $170 million for the second quarter 2008, compared to $159 million for the first quarter 2008, bringing the period-end allowance to total loans ratio to 1.28 percent from 1.16 percent at March 31, 2008.
-- Excluding net securities gains, noninterest income increased $13 million, reflecting increases in commercial lending fees, letter of credit fees, foreign exchange income, card fees and deferred compensation asset returns.
-- Excluding the first quarter 2008 reversal of the $13 million Visa loss sharing expense, noninterest expenses increased $7 million, reflecting increases in outside processing fees, the provision for credit losses on lending-related commitments and salaries expense, partially offset by a decrease in customer services expense.
-- The estimated Tier 1 common and Tier 1 capital ratios were 6.72 and 7.36 percent, respectively, both within the targeted ranges.
Net Interest Income and Net Interest Margin
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income $442 * $476 $509
Net interest margin 2.91 %* 3.22 % 3.76 %
Selected average balances:
Total earning assets $61,088 $59,518 $54,304
Total investment securities 8,296 7,222 4,085
Total loans 52,367 51,852 49,793
Total interest-bearing deposits 33,116 33,440 30,049
Total noninterest-bearing deposits 10,648 10,622 11,633
Total noninterest-bearing
deposits, excluding FSD 8,825 8,728 8,356
* Second quarter 2008 net interest income declined $30 million and the net interest margin declined by 19 basis points due to a non-cash lease income charge. Excluding this charge, the net interest margin would have been 3.10%, consistent with the full-year outlook.
-- The $34 million decrease in net interest income in the second quarter 2008, when compared to first quarter 2008, resulted primarily from a $30 million non-cash charge to lease income and a decline in the net interest margin, partially offset by growth in securities and loans. The lease income charge reflected the reversal of previously recognized income. The reversal resulted from a projected change in the timing of income tax cash flows on certain structured lease transactions, which was caused by a reassessment of the likely resolution with the taxing authorities. The charge will fully reverse over the remaining lease terms (up to 20 years). Further information about the charge can be found in Tax-related Items below.
-- The net interest margin of 2.91 percent declined 31 basis points, reflecting the charge to structured lease transactions discussed above (-19 basis points) and a decreased contribution of noninterest-bearing funds in a lower rate environment.
Noninterest Income
Noninterest income was $242 million for the second quarter 2008, compared to $237 million for the first quarter 2008 and $225 million for the second quarter 2007. Noninterest income in the second quarter 2008, compared to the first quarter 2008, reflected positive trends in commercial lending fees ($4 million), letter of credit fees ($3 million), foreign exchange income ($2 million) and card fees ($2 million), and higher deferred compensation asset returns ($9 million). Additionally, second quarter 2008 included a $14 million gain on sale of MasterCard shares and first quarter 2008 included a $21 million gain on sale of Visa shares (both included in "net securities gains").
Noninterest Expenses
Noninterest expenses were $423 million for the second quarter 2008, compared to $403 million for the first quarter 2008 and $411 million for the second quarter 2007. The $20 million increase in noninterest expenses in the second quarter 2008, compared to the first quarter 2008, reflected the first quarter 2008 reversal of the $13 million Visa loss sharing expense (included in "litigation and operational losses") and increases in outside processing fees ($5 million), the provision for credit losses on lending-related commitments ($3 million) and salaries expense ($2 million), partially offset by a decrease in customer services expense ($3 million). The increase in salaries expense included an increase in deferred compensation plan costs ($9 million), offset by a decrease of $9 million in share-based compensation, reflecting the annual award of restricted stock granted in the first quarter which for retirement eligible employees must be expensed in the period granted. The increase in deferred compensation plan costs was offset by an increase in deferred compensation plan asset returns in noninterest income. Certain categories of noninterest expenses are highlighted in the table below.
2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Salaries
Regular salaries $151 $151 $156
Severance 1 2 1
Incentives 35 32 40
Deferred compensation plan costs 4 (5) 6
Share-based compensation 11 20 12
Total salaries 202 200 215
Employee benefits 48 47 50
Customer services 3 6 11
Litigation and operational losses 3 (8) (9)
Provision for credit losses on
lending-related commitments 7 4 (2)
Tax-related Items
During the second quarter 2008, several tax-related court decisions involving other financial institutions were announced on certain structured lease transactions. In light of these recent decisions, Comerica reassessed its position and recorded an after-tax charge of $13 million to increase previously established reserves for interest on tax liabilities in the second quarter 2008, included in the "provision for income taxes." This reassessment of the size and timing of tax deductions also resulted in the lease income charge noted in Net Interest Income above.
The provision for income taxes in the first quarter 2008 reflected a benefit of $5 million resulting from an after-tax adjustment to deferred tax assets.
Credit Quality
"We have been proactive in managing problem loans, which remain largely focused in our California residential real estate development portfolio," said Babb. "Virtually all of the problem loans in our California residential real estate development portfolio were independently appraised within the last six months with the appropriate charge-offs taken and additional reserves established. The balance of our loan portfolio continued to experience solid credit metrics."
-- The allowance to loan ratio increased to 1.28 percent at June 30, 2008, from 1.16 percent at March 31, 2008.
-- The provision for loan losses and loan quality reflected continuing challenges primarily in residential real estate development located in the Western market (primarily California).
-- Net credit-related charge-offs in the Commercial Real Estate business line in the second quarter 2008 were $73 million, of which $56 million were from residential real estate developers in the Western market. Comparable numbers for the first quarter 2008 were $75 million in total, of which $58 million were from residential real estate developers in the Western market. Excluding the Western market, other Commercial Real Estate net credit-related charge-offs in the second quarter 2008 totaled $17 million, compared to $17 million in the first quarter 2008.
-- Net loan charge-offs, excluding the Commercial Real Estate business line, were $40 million in the second quarter 2008, or 35 basis points of average non-Commercial Real Estate loans, compared to $35 million, or 31 basis points, in the first quarter 2008.
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net loan charge-offs $112 $110 $30
Net lending-related commitment
charge-offs 1 - -
Total net credit-related
charge-offs 113 110 30
Net loan charge-offs/Average
total loans 0.86 % 0.85 % 0.24 %
Net credit-related charge-offs/
Average total loans 0.86 0.85 0.24
Provision for loan losses $170 $159 $36
Provision for credit losses on
lending-related commitments 7 4 (2)
Total provision for credit
losses 177 163 34
Nonperforming assets (NPAs) 747 560 259
NPAs/Total loans and foreclosed
property 1.44 % 1.07 % 0.53 %
Allowance for loan losses $663 $605 $507
Allowance for credit losses on
lending-related commitments* 31 25 19
Total allowance for credit
losses 694 630 526
Allowance for loan losses/Total
loans 1.28 % 1.16 % 1.04 %
Allowance for loan losses/
Nonperforming loans 91 112 207
*Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $66.0 billion and $5.1 billion, respectively, at June 30, 2008, compared to $67.0 billion and $5.3 billion, respectively, at March 31, 2008. There were approximately 150 million shares outstanding at June 30, 2008. No shares were repurchased in the open market in the first six months of 2008.
Comerica's second quarter 2008 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 6.72 percent, 7.36 percent and 11.11 percent, respectively.
Full-Year 2008 Outlook Compared to Full-Year 2007 from Continuing Operations
-- Low single-digit full-year loan growth, with loans declining over the remainder of 2008.
-- Securities averaging about $8 billion for the remainder of the year.
-- Average full-year net interest margin about 3.10 percent (3.15 percent excluding the lease income charge), based on no federal funds rate changes in the third and fourth quarters of 2008, with a net interest margin of about 3.10 percent for the remainder of 2008.
-- Full-year net credit-related charge-offs of $425 million to $450 million. The provision for credit losses is expected to exceed net charge-offs.
-- Low single-digit growth in noninterest income. -- Low single-digit decline in noninterest expenses.
-- Effective tax rate of about 30 percent for the full year, with a rate of 28 percent for the remainder of 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 June 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2008 results compared to first quarter 2008.
The following table presents net income (loss) by business segment.
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Business Bank $57 73 % $62 51 % $140 71 %
Retail Bank 7 9 40 33 42 21
Wealth & Institutional
Management 14 18 20 16 16 8
78 100 % 122 100 % 198 100 %
Finance (5) (3) (11)
Other* (17) (10) 9
Total $56 $109 $196
* Includes discontinued operations and items not directly associated with the three major business segments or the Finance Division.
Business Bank
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $296 $329 $344
Provision for loan losses 123 147 32
Noninterest income 92 74 68
Noninterest expenses 185 176 176
Net income 57 62 140
Net credit-related charge-offs 96 99 24
Selected average balances:
Assets 42,335 42,129 40,847
Loans 41,510 41,219 39,824
FSD loans 469 802 1,580
Deposits 15,384 15,878 16,432
FSD deposits 2,817 2,988 4,505
Net interest margin 2.85 % 3.20 % 3.45 %
-- Average loans increased $291 million, or three percent on an annualized basis, driven by growth in Middle Market, Commercial Real Estate, Global Corporate and International, partially offset by a decline in the Financial Services Division.
-- Average deposits, excluding the Financial Services Division, decreased $323 million due to a decline in Technology & Life Sciences. Financial Services Division deposits decreased $171 million.
-- The net interest margin of 2.85 percent decreased 35 basis points due to a $30 million (-29 basis point) non-cash charge to lease income, a decline in deposit balances and the lower value of noninterest-bearing deposits.
-- The provision for loan losses decreased $24 million, primarily due a slower rate of change in Commercial Real Estate in the Midwest and a decrease in period-end loan balances.
-- Noninterest income increased $18 million, primarily due to a $14 million gain on sale of MasterCard shares related to the commercial card business and an increase in commercial lending fees.
-- Noninterest expenses increased $9 million, primarily due to an increase in allocated net corporate overhead expenses.
Retail Bank
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $146 $148 $171
Provision for loan losses 29 17 4
Noninterest income 54 74 57
Noninterest expenses 161 143 160
Net income 7 40 42
Net credit-related charge-offs 14 10 6
Selected average balances:
Assets 7,100 7,144 6,828
Loans 6,348 6,276 6,100
Deposits 17,043 17,162 17,191
Net interest margin 3.44 % 3.47 % 4.00 %
-- Average loans increased $72 million, or five percent on an annualized basis, primarily due to the transfer of student loans from loans held-for-sale (other short-term investments) to consumer loans.
-- Average deposits decreased $119 million, as a decrease in time deposits was partially offset by increases in all other deposit categories, particularly noninterest-bearing transaction accounts.
-- The net interest margin of 3.44 percent declined three basis points, primarily due to the lower value of noninterest-bearing deposits in a declining rate environment and a decline in loan spreads.
-- The provision for loan losses increased $12 million due to an increase in credit risk in both the small business and home equity loan portfolios.
-- Noninterest income decreased $20 million, primarily due to a $21 million gain on the sale of Visa shares recorded in the first quarter.
-- Noninterest expenses increased $18 million, primarily due to the first quarter reversal of a $13 million Visa loss sharing expense and an increase in allocated net corporate overhead expenses.
-- Two new banking centers were opened and six were consolidated (four in the Midwest market) in the second quarter 2008.
Wealth and Institutional Management
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $37 $36 $36
Provision for loan losses 5 - 2
Noninterest income 74 75 70
Noninterest expenses 83 79 79
Net income 14 20 16
Net credit-related charge-offs 3 1 -
Selected average balances:
Assets 4,646 4,468 4,009
Loans 4,502 4,315 3,860
Deposits 2,493 2,637 2,295
Net interest margin 3.28 % 3.33 % 3.74 %
-- Average loans increased $187 million, or 17 percent on an annualized basis.
-- Average deposits decreased $144 million, primarily due to a decline in money market investment account balances.
-- The net interest margin of 3.28 percent declined five basis points, primarily due to a decline in loan spreads and deposit balances, partially offset by an increase in deposit spreads.
-- The provision for loan losses increased $5 million due to an increase in credit risk in the Private Banking loan portfolio.
-- Noninterest expenses increased $4 million, primarily due to an increase in salaries and benefit expenses and allocated net corporate overhead expenses.
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 June 30, 2008 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2008 results compared to first quarter 2008.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Midwest $52 68 % $87 71 % $76 39 %
Western (20) (26) (10) (8) 64 33
Texas 17 21 20 16 21 10
Florida (1) (2) (4) (3) 2 1
Other Markets 23 29 19 15 20 10
International 7 10 10 9 15 7
78 100 % 122 100 % 198 100 %
Finance & Other Businesses* (22) (13) (2)
Total $56 $109 $196
* Includes discontinued operations and items not directly associated with the geographic markets.
Midwest
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $172 $205 $227
Provision for loan losses 24 20 25
Noninterest income 136 136 117
Noninterest expenses 205 186 203
Net income 52 87 76
Net credit-related charge-offs 42 28 29
Selected average balances:
Assets 19,891 19,656 19,213
Loans 19,255 19,030 18,656
Deposits 16,056 16,127 15,651
Net interest margin 3.58 % 4.30 % 4.85 %
-- Average loans increased $225 million, or five percent on an annualized basis, driven by growth in Global Corporate, Middle Market and Private Banking.
-- Average deposits decreased $71 million, primarily due to a decrease in time deposits in Personal Banking.
-- The net interest margin of 3.58 percent declined 72 basis points, primarily due to a $30 million (-62 basis point) non-cash charge to lease income and the lower value of noninterest-bearing deposits.
-- The provision for loan losses increased $4 million due to an increase in Middle Market and Small Business, offset by a decline in Commercial Real Estate.
-- Noninterest expenses increased $19 million, primarily due to the first quarter reversal of a $10 million Visa loss sharing expense and an increase in allocated net corporate overhead expenses.
-- Four banking centers were consolidated in the second quarter 2008.
Western Market
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $171 $172 $188
Provision for loan losses 113 114 5
Noninterest income 34 33 32
Noninterest expenses 115 108 113
Net income (loss) (20) (10) 64
Net credit-related charge-offs 59 66 4
Selected average balances:
Assets 17,241 17,263 17,257
Loans 16,918 16,882 16,715
FSD loans 469 802 1,580
Deposits 12,345 12,848 13,595
FSD deposits 2,611 2,802 4,310
Net interest margin 4.04 % 4.07 % 4.53 %
-- Average loans increased $36 million, or one percent on an annualized basis, as growth in Middle Market, Technology and Life Sciences, Private Banking and Global Corporate was substantially offset by a decline in the Financial Services Division.
-- Average deposits, excluding the Financial Services Division, decreased $312 million, primarily due to decreases in Technology & Life Sciences and Private Banking. Financial Services Division deposits decreased $191 million.
-- The net interest margin of 4.04 percent decreased 3 basis points, primarily due to lower deposit balances and the lower value of noninterest-bearing deposits.
-- Noninterest expenses increased $7 million, primarily due to an increase in allocated net corporate overhead expenses and an increase in legal fees.
Texas Market
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $74 $74 $71
Provision for loan losses 6 8 3
Noninterest income 22 24 20
Noninterest expenses 63 58 56
Net income 17 20 21
Total net credit-related
charge-offs 3 5 1
Selected average balances:
Assets 8,063 7,932 6,844
Loans 7,795 7,642 6,570
Deposits 4,061 4,005 3,836
Net interest margin 3.78 % 3.83 % 4.32 %
-- Average loans increased $153 million, or eight percent on an annualized basis, primarily due to growth in Commercial Real Estate, Middle Market and National Dealer Services.
-- Average deposits increased $56 million, or six percent on an annualized basis, primarily due to growth in Global Corporate, partially offset by declines in Technology & Life Sciences and Personal Banking.
-- The net interest margin of 3.78% decreased five basis points, primarily due to the impact of the lower value of noninterest-bearing deposits.
-- The provision for loan losses decreased $2 million primarily due to Middle Market.
-- Noninterest income decreased $2 million due to a gain on the sale of the Visa shares recorded in the first quarter.
-- Noninterest expenses increased $5 million, primarily due to the first quarter reversal of a $2 million Visa loss sharing expense.
Florida Market
(dollar amounts in millions) 2nd Qtr '08 1st Qtr '08 2nd Qtr '07
Net interest income (FTE) $12 $11 $11
Provision for loan losses 7 12 2
Noninterest income 4 5 3
Noninterest expenses 11 10 9
Net income (loss) (1) (4) 2
Net credit-related charge-offs 8 10 1
Selected average balances:
Assets 1,854 1,891 1,666
Loans 1,851 1,877 1,649
Deposits 306 362 290
Net interest margin 2.50 % 2.55 % 2.64 %
-- Average loans decreased $26 million, primarily due to Commercial Real Estate and National Dealer Services.
-- Average deposits decreased $56 million due to a decline in Private Banking.
-- The provision for loan losses decreased $5 million, primarily due to a single Middle Market customer.
Conference Call and Webcast
Comerica will host a conference call to review second quarter 2008 financial results at 7 a.m. CDT Thursday, July 17, 2008. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 51656449). 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 July 31, 2008. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 51656449). 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 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, 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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