DALLAS, April 21 /PRNewswire-FirstCall/ -- Comerica Incorporated (NYSE: CMA) today reported first quarter 2010 net income of $52 million, compared to a net loss of $29 million for the fourth quarter 2009. After preferred dividends on the fully redeemed $2.25 billion of preferred stock issued to the U.S. Treasury under its Capital Purchase Program of $123 million, or $0.79 per share, the net loss attributable to common shares was $71 million, or $0.46 per diluted common share, compared to a net loss per diluted common share of $0.42 for the fourth quarter 2009. Preferred dividends included $24 million of cash dividends, non-cash discount accretion of $5 million and a one-time, non-cash charge of $94 million related to the full redemption of the preferred stock in March 2010. First quarter 2010 net income also included a $17 million after-tax gain from the cash settlement of a note receivable related to the 2006 sale of an investment advisory subsidiary, recorded in "income from discontinued operations, net of tax."
(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO)
(dollar amounts in millions, except per share data) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | |||||||
Net interest income | $ 415 | $ 396 | $ 384 | |||||||
Provision for loan losses | 175 | 256 | 203 | |||||||
Noninterest income | 194 | 214 | 223 | |||||||
Noninterest expenses | 404 | 425 | 397 | |||||||
Income (loss) from continuing operations, net of tax | 35 | (29) | 8 | |||||||
Income from discontinued operations, net of tax | 17 | - | 1 | |||||||
Net income (loss) | 52 | (29) | 9 | |||||||
Preferred stock dividends to U.S. Treasury (a) | 123 | 33 | 33 | |||||||
Net loss attributable to common shares | (71) | (62) | (24) | |||||||
Diluted loss per common share | (0.46) | (0.42) | (0.16) | |||||||
Tier 1 capital ratio | 10.40 | % | (b) | 12.46 | % | 11.06 | % | |||
Tangible common equity ratio (c) | 9.68 | 7.99 | 7.27 | |||||||
Net interest margin | 3.18 | 2.94 | 2.53 | |||||||
(a) First quarter 2010 included non-cash charges of $99 million. | ||||||||||
(b) March 31, 2010 ratio is estimated. | ||||||||||
(c) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||
"The encouraging signs we saw in the fourth quarter of 2009 continued in the first quarter of 2010," said Ralph W. Babb Jr., chairman and chief executive officer. "Our credit quality continued to improve, reflecting the strong credit underwriting and processes we have in place. Our net interest margin expanded further in the first quarter. We fully redeemed the preferred stock issued to the U.S. Treasury and with our solid capital position and strong liquidity are ideally positioned for future growth. We have a consistent strategy for success that is based on relationships and skill, with a dedicated workforce to deliver the quality products and services that are our hallmark.
"Our customers continue to convey a more positive and upbeat tone, and this is reflected in the increased number of loans in the pipeline. The decline in loan outstandings we saw in the fourth quarter of 2009 slowed further in the first quarter of 2010, and the pace of decline moderated in each successive month of the first quarter. All of these positive trends lead us to believe our operating fundamentals will show improvement in 2010. We are moving forward with confidence in our people and our ability to grow as the economy continues its recovery."
First Quarter 2010 Highlights Compared to Fourth Quarter 2009
Net Interest Income and Net Interest Margin
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | |||||||
Net interest income | $ 415 | $ 396 | $ 384 | |||||||
Net interest margin | 3.18 | % | 2.94 | % | 2.53 | % | ||||
Selected average balances: | ||||||||||
Total earning assets | $ 52,941 | $ 53,953 | $ 61,752 | |||||||
Total investment securities | 7,382 | 8,587 | 10,126 | |||||||
Federal Reserve Bank deposits (excess liquidity) (a) | 4,092 | 2,453 | 1,812 | |||||||
Total loans | 41,313 | 42,753 | 49,556 | |||||||
Total core deposits (b) | 37,236 | 36,742 | 33,832 | |||||||
Total noninterest-bearing deposits | 14,624 | 14,430 | 11,364 | |||||||
(a) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||
(b) Core deposits exclude other time deposits and foreign office time deposits. | ||||||||||
Noninterest Income
Noninterest income was $194 million for the first quarter 2010, compared to $214 million for the fourth quarter 2009. The $20 million decrease in noninterest income in the first quarter 2010, compared to the fourth quarter 2009, reflected an $8 million decrease in net securities gains, a $6 million decrease in gains related to the repurchase of debt and small decreases in several categories of noninterest income.
Noninterest Expenses
Noninterest expenses were $404 million for the first quarter 2010, compared to $425 million for the fourth quarter 2009. The $21 million decrease in noninterest expenses in the first quarter 2010, compared to the fourth quarter 2009, was primarily due to decreases in other real estate expense ($10 million), pension expense ($9 million) and salaries expense ($5 million), partially offset by an increase in the provision for credit losses on lending-related commitments ($4 million). Full-time equivalent staff decreased by approximately 115 employees from December 31, 2009 and 481 employees, or five percent, from March 31, 2009. Certain categories of noninterest expenses are highlighted in the table below.
1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||||
Salaries | $ 169 | $ 174 | $ 171 | |||||
Employee benefits | ||||||||
Pension expense | 5 | 14 | 16 | |||||
Other benefits | 39 | 37 | 39 | |||||
Total employee benefits | 44 | 51 | 55 | |||||
Other real estate expense | 12 | 22 | 7 | |||||
Provision for credit losses on lending-related commitments | 7 | 3 | (1) | |||||
Discontinued Operations
Income from discontinued operations in the first quarter 2010 included a $17 million after-tax gain resulting from a successfully negotiated cash settlement of a note receivable related to the 2006 sale of Munder Capital Management, an investment advisor. The cash received of $35 million paid the note in full and concluded our commitments and financial arrangements with Munder.
Credit Quality
"We were pleased that credit quality improved at a faster pace than we had expected. This reflects our continued efforts to quickly and proactively identify and work through problem loans. We saw broad-based improvement in credit quality across all business lines, including significant declines in net charge-offs and provision for loan losses. The Commercial Real Estate business line experienced an increase in net charge-offs but saw declines in nonperforming and watch list loans. We have updated our credit outlook for full-year 2010 to reflect the significant improvement we saw in the first quarter."
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||||||
Net loan charge-offs | $ 173 | $ 224 | $ 157 | ||||||||
Net lending-related commitment charge-offs | - | 1 | - | ||||||||
Total net credit-related charge-offs | 173 | 225 | 157 | ||||||||
Net loan charge-offs/Average total loans | 1.68 | % | 2.09 | % | 1.26 | % | |||||
Net credit-related charge-offs/Average total loans | 1.68 | 2.10 | 1.26 | ||||||||
Provision for loan losses | $ 175 | $ 256 | $ 203 | ||||||||
Provision for credit losses on lending-related commitments | 7 | 3 | (1) | ||||||||
Total provision for credit losses | 182 | 259 | 202 | ||||||||
Nonperforming loans | 1,162 | 1,181 | 982 | ||||||||
Nonperforming assets (NPAs) | 1,251 | 1,292 | 1,073 | ||||||||
NPAs/Total loans and foreclosed property | 3.06 | % | 3.06 | % | 2.20 | % | |||||
Loans past due 90 days or more and still accruing | $ 83 | $ 101 | $ 207 | ||||||||
Allowance for loan losses | 987 | 985 | 816 | ||||||||
Allowance for credit losses on lending-related commitments (a) | 44 | 37 | 37 | ||||||||
Total allowance for credit losses | 1,031 | 1,022 | 853 | ||||||||
Allowance for loan losses/Total loans | 2.42 | % | 2.34 | % | 1.68 | % | |||||
Allowance for loan losses/Nonperforming loans | 85 | 83 | 83 | ||||||||
(a) Included in "Accrued expenses and other liabilities" on the consolidated balance sheets. | |||||||||||
Balance Sheet and Capital Management
Total assets and common shareholders' equity were $57.1 billion and $5.7 billion, respectively, at March 31, 2010, compared to $59.2 billion and $4.9 billion, respectively, at December 31, 2009. There were approximately 176 million common shares outstanding at March 31, 2010.
In March 2010, Comerica fully redeemed $2.25 billion of preferred stock issued to the U.S. Treasury. The redemption was partially funded by the net proceeds from an $880 million common stock offering. Preferred stock dividends in the first quarter 2010 included cash dividends of $24 million, non-cash discount accretion of $5 million and a one-time, non-cash redemption charge of $94 million, reflecting the accelerated accretion of the remaining discount. Comerica elected not to repurchase a related warrant for 11.5 million shares of common stock issued to the U.S. Treasury.
Comerica's tangible common equity ratio was 9.68 percent at March 31, 2010, an increase of 169 basis points from December 31, 2009. The estimated Tier 1 common ratio was 9.58 percent and the estimated Tier 1 capital ratio was 10.40 percent at March 31, 2010, an increase of 140 basis points and a decrease of 206 basis points, respectively, from December 31, 2009. The increase in the tangible common equity ratio and the estimated Tier 1 common ratio reflected the increase in common shareholders' equity from the common stock offering, while the decrease in the estimated Tier 1 capital ratio reflected the net decrease in total shareholders' equity after the redemption of the preferred stock.
Full-Year 2010 Outlook
For full-year 2010, management expects the following, based on a modestly improving economic environment.
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 March 31, 2010 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2010 results compared to fourth quarter 2009.
The following table presents net income (loss) by business segment.
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | |||
Business Bank | $ 89 | $ 65 | $ 56 | |||
Retail Bank | (7) | (12) | (7) | |||
Wealth & Institutional Management | 11 | 5 | 13 | |||
93 | 58 | 62 | ||||
Finance | (59) | (62) | (50) | |||
Other (a) | 18 | (25) | (3) | |||
Total | $ 52 | $ (29) | $ 9 | |||
(a) Includes discontinued operations and items not directly associated with the three major business segments or the Finance Division. | ||||||
Business Bank
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 341 | $ 343 | $ 312 | ||||
Provision for loan losses | 137 | 179 | 177 | ||||
Noninterest income | 76 | 77 | 93 | ||||
Noninterest expenses | 162 | 165 | 157 | ||||
Net income | 89 | 65 | 56 | ||||
Net credit-related charge-offs | 137 | 183 | 123 | ||||
Selected average balances: | |||||||
Assets | 31,293 | 32,655 | 39,505 | ||||
Loans | 30,918 | 32,289 | 38,527 | ||||
Deposits | 17,750 | 16,944 | 14,040 | ||||
Net interest margin | 4.48 | % | 4.21 | % | 3.28 | % | |
Retail Bank
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 130 | $ 129 | $ 126 | ||||
Provision for loan losses | 31 | 36 | 23 | ||||
Noninterest income | 44 | 48 | 46 | ||||
Noninterest expenses | 154 | 161 | 161 | ||||
Net loss | (7) | (12) | (7) | ||||
Net credit-related charge-offs | 26 | 30 | 26 | ||||
Selected average balances: | |||||||
Assets | 6,106 | 6,257 | 6,875 | ||||
Loans | 5,599 | 5,733 | 6,284 | ||||
Deposits | 16,718 | 17,020 | 17,391 | ||||
Net interest margin | 3.18 | % | 3.02 | % | 2.93 | % | |
Wealth and Institutional Management
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 42 | $ 42 | $ 36 | ||||
Provision for loan losses | 12 | 19 | 10 | ||||
Noninterest income | 60 | 60 | 70 | ||||
Noninterest expenses | 73 | 76 | 75 | ||||
Net income | 11 | 5 | 13 | ||||
Net credit-related charge-offs | 10 | 12 | 8 | ||||
Selected average balances: | |||||||
Assets | 4,862 | 4,841 | 4,870 | ||||
Loans | 4,789 | 4,746 | 4,750 | ||||
Deposits | 2,791 | 2,849 | 2,429 | ||||
Net interest margin | 3.53 | % | 3.50 | % | 3.11 | % | |
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 March 31, 2010 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2010 results compared to fourth quarter 2009.
The following table presents net income (loss) by market segment.
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | |||
Midwest | $ 26 | $ 12 | $ 29 | |||
Western | 22 | 7 | (7) | |||
Texas | 14 | 13 | 15 | |||
Florida | 1 | 3 | (6) | |||
Other Markets | 16 | 23 | 22 | |||
International | 14 | - | 9 | |||
93 | 58 | 62 | ||||
Finance & Other Businesses (a) | (41) | (87) | (53) | |||
Total | $ 52 | $ (29) | $ 9 | |||
(a) Includes discontinued operations and items not directly associated with the geographic markets. | ||||||
Midwest Market
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 205 | $ 205 | $ 194 | ||||
Provision for loan losses | 81 | 101 | 83 | ||||
Noninterest income | 102 | 106 | 127 | ||||
Noninterest expenses | 186 | 194 | 194 | ||||
Net income | 26 | 12 | 29 | ||||
Net credit-related charge-offs | 55 | 97 | 54 | ||||
Selected average balances: | |||||||
Assets | 15,573 | 16,090 | 19,139 | ||||
Loans | 15,332 | 15,811 | 18,267 | ||||
Deposits | 17,068 | 17,200 | 16,697 | ||||
Net interest margin | 4.86 | % | 4.73 | % | 4.30 | % | |
Western Market
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 161 | $ 163 | $ 146 | ||||
Provision for loan losses | 59 | 79 | 88 | ||||
Noninterest income | 36 | 33 | 36 | ||||
Noninterest expenses | 105 | 110 | 104 | ||||
Net income (loss) | 22 | 7 | (7) | ||||
Net credit-related charge-offs | 64 | 85 | 76 | ||||
Selected average balances: | |||||||
Assets | 13,175 | 13,484 | 15,443 | ||||
Loans | 12,980 | 13,289 | 15,253 | ||||
Deposits | 11,927 | 11,899 | 10,640 | ||||
Net interest margin | 5.04 | % | 4.85 | % | 3.91 | % | |
Texas Market
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 79 | $ 78 | $ 70 | ||||
Provision for loan losses | 17 | 20 | 9 | ||||
Noninterest income | 20 | 23 | 21 | ||||
Noninterest expenses | 60 | 61 | 58 | ||||
Net income | 14 | 13 | 15 | ||||
Total net credit-related charge-offs | 25 | 13 | 8 | ||||
Selected average balances: | |||||||
Assets | 6,892 | 7,118 | 8,069 | ||||
Loans | 6,704 | 6,934 | 7,847 | ||||
Deposits | 4,957 | 4,737 | 4,198 | ||||
Net interest margin | 4.79 | % | 4.46 | % | 3.62 | % | |
Florida Market
(dollar amounts in millions) | 1st Qtr '10 | 4th Qtr '09 | 1st Qtr '09 | ||||
Net interest income (FTE) | $ 10 | $ 10 | $ 11 | ||||
Provision for loan losses | 3 | - | 15 | ||||
Noninterest income | 3 | 3 | 3 | ||||
Noninterest expenses | 9 | 9 | 8 | ||||
Net income (loss) | 1 | 3 | (6) | ||||
Net credit-related charge-offs | 10 | 4 | 12 | ||||
Selected average balances: | |||||||
Assets | 1,576 | 1,608 | 1,869 | ||||
Loans | 1,576 | 1,613 | 1,878 | ||||
Deposits | 361 | 333 | 253 | ||||
Net interest margin | 2.54 | % | 2.57 | % | 2.31 | % | |
Conference Call and Webcast
Comerica will host a conference call to review first quarter 2010 financial results at 7 a.m. CT Wednesday, April 21, 2010. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 63304761). The call and supplemental financial information can also be accessed on the Internet at www.comerica.com. A replay will be available approximately two hours following the conference call through April 30, 2010. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 63304761). A replay of the Webcast can also be accessed via Comerica's "Investor Relations" page at 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 and Mexico.
This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
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, the effects of recently enacted legislation, actions taken by or proposed by the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System, the Texas Department of Banking and the Federal Deposit Insurance Corporation, legislation enacted in the future, and the impact and expiration of such legislation and regulatory actions, 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 factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 11 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2009. 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.
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | |||||||
Comerica Incorporated and Subsidiaries | |||||||
Three Months Ended | |||||||
March 31, | December 31, | March 31, | |||||
(in millions, except per share data) | 2010 | 2009 | 2009 | ||||
PER COMMON SHARE AND COMMON STOCK DATA | |||||||
Diluted net loss | $ (0.46) | $ (0.42) | $ (0.16) | ||||
Cash dividends declared | 0.05 | 0.05 | 0.05 | ||||
Common shareholders' equity (at period end) | 32.15 | 32.27 | 33.40 | ||||
Average diluted shares (in thousands) | 155,155 | 149,445 | 149,257 | ||||
KEY RATIOS | |||||||
Return on average common shareholders' equity | (5.61) | % | (5.10) | % | (1.90) | % | |
Return on average assets | 0.36 | (0.19) | 0.06 | ||||
Tier 1 common capital ratio (a) (b) | 9.58 | 8.18 | 7.32 | ||||
Tier 1 risk-based capital ratio (b) | 10.40 | 12.46 | 11.06 | ||||
Total risk-based capital ratio (b) | 14.93 | 16.93 | 15.36 | ||||
Leverage ratio (b) | 11.00 | 13.25 | 11.65 | ||||
Tangible common equity ratio (a) | 9.68 | 7.99 | 7.27 | ||||
AVERAGE BALANCES | |||||||
Commercial loans | $ 21,015 | $ 21,971 | $ 27,180 | ||||
Real estate construction loans | 3,386 | 3,703 | 4,510 | ||||
Commercial mortgage loans | 10,387 | 10,393 | 10,431 | ||||
Residential mortgage loans | 1,632 | 1,664 | 1,846 | ||||
Consumer loans | 2,481 | 2,517 | 2,574 | ||||
Lease financing | 1,130 | 1,181 | 1,300 | ||||
International loans | 1,282 | 1,324 | 1,715 | ||||
Total loans | 41,313 | 42,753 | 49,556 | ||||
Earning assets | 52,941 | 53,953 | 61,752 | ||||
Total assets | 57,519 | 58,396 | 66,737 | ||||
Noninterest-bearing deposits | 14,624 | 14,430 | 11,364 | ||||
Interest-bearing core deposits | 22,612 | 22,312 | 22,468 | ||||
Total core deposits | 37,236 | 36,742 | 33,832 | ||||
Common shareholders' equity | 5,070 | 4,876 | 5,024 | ||||
Total shareholders' equity | 6,864 | 7,024 | 7,155 | ||||
NET INTEREST INCOME | |||||||
Net interest income (fully taxable equivalent basis) | $ 416 | $ 398 | $ 386 | ||||
Fully taxable equivalent adjustment | 1 | 2 | 2 | ||||
Net interest margin | 3.18 | % | 2.94 | % | 2.53 | % | |
CREDIT QUALITY | |||||||
Nonaccrual loans | $ 1,145 | $ 1,165 | $ 982 | ||||
Reduced-rate loans | 17 | 16 | - | ||||
Total nonperforming loans | 1,162 | 1,181 | 982 | ||||
Foreclosed property | 89 | 111 | 91 | ||||
Total nonperforming assets | 1,251 | 1,292 | 1,073 | ||||
Loans past due 90 days or more and still accruing | 83 | 101 | 207 | ||||
Gross loan charge-offs | 184 | 232 | 161 | ||||
Loan recoveries | 11 | 8 | 4 | ||||
Net loan charge-offs | 173 | 224 | 157 | ||||
Lending-related commitment charge-offs | - | 1 | - | ||||
Total net credit-related charge-offs | 173 | 225 | 157 | ||||
Allowance for loan losses | 987 | 985 | 816 | ||||
Allowance for credit losses on lending-related commitments | 44 | 37 | 37 | ||||
Total allowance for credit losses | 1,031 | 1,022 | 853 | ||||
Allowance for loan losses as a percentage of total loans | 2.42 | % | 2.34 | % | 1.68 | % | |
Net loan charge-offs as a percentage of average total loans | 1.68 | 2.09 | 1.26 | ||||
Net credit-related charge-offs as a percentage of average total loans | 1.68 | 2.10 | 1.26 | ||||
Nonperforming assets as a percentage of total loans and foreclosed property | 3.06 | 3.06 | 2.20 | ||||
Allowance for loan losses as a percentage of total nonperforming loans | 85 | 83 | 83 | ||||
(a) See Reconciliation of Non-GAAP Financial Measures. | |||||||
(b) March 31, 2010 ratios are estimated. | |||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | |||||
Comerica Incorporated and Subsidiaries | |||||
March 31, | December 31, | March 31, | |||
(in millions, except share data) | 2010 | 2009 | 2009 | ||
ASSETS | |||||
Cash and due from banks | $ 769 | $ 774 | $ 952 | ||
Interest-bearing deposits with banks | 3,860 | 4,843 | 2,558 | ||
Other short-term investments | 165 | 138 | 248 | ||
Investment securities available-for-sale | 7,346 | 7,416 | 10,844 | ||
Commercial loans | 20,756 | 21,690 | 26,431 | ||
Real estate construction loans | 3,202 | 3,461 | 4,379 | ||
Commercial mortgage loans | 10,358 | 10,457 | 10,514 | ||
Residential mortgage loans | 1,631 | 1,651 | 1,836 | ||
Consumer loans | 2,472 | 2,511 | 2,577 | ||
Lease financing | 1,120 | 1,139 | 1,232 | ||
International loans | 1,306 | 1,252 | 1,655 | ||
Total loans | 40,845 | 42,161 | 48,624 | ||
Less allowance for loan losses | (987) | (985) | (816) | ||
Net loans | 39,858 | 41,176 | 47,808 | ||
Premises and equipment | 637 | 644 | 676 | ||
Customers' liability on acceptances outstanding | 21 | 11 | 10 | ||
Accrued income and other assets | 4,450 | 4,247 | 4,274 | ||
Total assets | $ 57,106 | $ 59,249 | $ 67,370 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Noninterest-bearing deposits | $ 15,290 | $ 15,871 | $ 12,645 | ||
Money market and NOW deposits | 16,009 | 14,450 | 12,240 | ||
Savings deposits | 1,462 | 1,342 | 1,328 | ||
Customer certificates of deposit | 5,979 | 6,413 | 8,815 | ||
Other time deposits | 814 | 1,047 | 6,372 | ||
Foreign office time deposits | 412 | 542 | 494 | ||
Total interest-bearing deposits | 24,676 | 23,794 | 29,249 | ||
Total deposits | 39,966 | 39,665 | 41,894 | ||
Short-term borrowings | 489 | 462 | 2,207 | ||
Acceptances outstanding | 21 | 11 | 10 | ||
Accrued expenses and other liabilities | 1,047 | 1,022 | 1,464 | ||
Medium- and long-term debt | 9,915 | 11,060 | 14,612 | ||
Total liabilities | 51,438 | 52,220 | 60,187 | ||
Fixed rate cumulative perpetual preferred stock, series F, no par value, $1,000 liquidation value per share: | |||||
Authorized - 2,250,000 shares at 12/31/09 and 3/31/09 Issued - 2,250,000 shares at 12/31/09 and 3/31/09 | - | 2,151 | 2,134 | ||
Common stock - $5 par value: | |||||
Authorized - 325,000,000 shares Issued - 203,878,110 shares at 3/31/10 and 178,735,252 shares at 12/31/09 and 3/31/09 | 1,019 | 894 | 894 | ||
Capital surplus | 1,468 | 740 | 727 | ||
Accumulated other comprehensive loss | (303) | (336) | (238) | ||
Retained earnings | 5,064 | 5,161 | 5,252 | ||
Less cost of common stock in treasury - 27,575,283 shares at 3/31/10, 27,555,623 shares at 12/31/09 and 27,580,899 shares at 3/31/09 | (1,580) | (1,581) | (1,586) | ||
Total shareholders' equity | 5,668 | 7,029 | 7,183 | ||
Total liabilities and shareholders' equity | $ 57,106 | $ 59,249 | $ 67,370 | ||
CONSOLIDATED STATEMENTS OF INCOME (unaudited) | ||||
Comerica Incorporated and Subsidiaries | ||||
Three Months Ended | ||||
March 31, | ||||
(in millions, except per share data) | 2010 | 2009 | ||
INTEREST INCOME | ||||
Interest and fees on loans | $ 412 | $ 452 | ||
Interest on investment securities | 61 | 109 | ||
Interest on short-term investments | 3 | 2 | ||
Total interest income | 476 | 563 | ||
INTEREST EXPENSE | ||||
Interest on deposits | 35 | 125 | ||
Interest on short-term borrowings | - | 2 | ||
Interest on medium- and long-term debt | 26 | 52 | ||
Total interest expense | 61 | 179 | ||
Net interest income | 415 | 384 | ||
Provision for loan losses | 175 | 203 | ||
Net interest income after provision for loan losses | 240 | 181 | ||
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 56 | 58 | ||
Fiduciary income | 39 | 42 | ||
Commercial lending fees | 22 | 18 | ||
Letter of credit fees | 18 | 16 | ||
Card fees | 13 | 12 | ||
Foreign exchange income | 10 | 9 | ||
Bank-owned life insurance | 8 | 8 | ||
Brokerage fees | 6 | 9 | ||
Net securities gains | 2 | 13 | ||
Other noninterest income | 20 | 38 | ||
Total noninterest income | 194 | 223 | ||
NONINTEREST EXPENSES | ||||
Salaries | 169 | 171 | ||
Employee benefits | 44 | 55 | ||
Total salaries and employee benefits | 213 | 226 | ||
Net occupancy expense | 42 | 41 | ||
Equipment expense | 17 | 16 | ||
Outside processing fee expense | 23 | 25 | ||
Software expense | 22 | 20 | ||
FDIC insurance expense | 17 | 15 | ||
Other real estate expense | 12 | 7 | ||
Legal fees | 9 | 7 | ||
Litigation and operational losses | 1 | 2 | ||
Provision for credit losses on lending-related commitments | 7 | (1) | ||
Other noninterest expenses | 41 | 39 | ||
Total noninterest expenses | 404 | 397 | ||
Income from continuing operations before income taxes | 30 | 7 | ||
Provision (benefit) for income taxes | (5) | (1) | ||
Income from continuing operations | 35 | 8 | ||
Income from discontinued operations, net of tax | 17 | 1 | ||
NET INCOME | 52 | 9 | ||
Preferred stock dividends | 123 | 33 | ||
Income allocated to participating securities | - | - | ||
Net loss attributable to common shares | $ (71) | $ (24) | ||
Basic earnings per common share: | ||||
Loss from continuing operations | $ (0.57) | $ (0.17) | ||
Net loss | (0.46) | (0.16) | ||
Diluted earnings per common share: | ||||
Loss from continuing operations | (0.57) | (0.17) | ||
Net loss | (0.46) | (0.16) | ||
Cash dividends declared on common stock | 9 | 7 | ||
Cash dividends declared per common share | 0.05 | 0.05 | ||
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited) | ||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||
First | Fourth | Third | Second | First | First Quarter 2010 Compared To: | |||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Fourth Quarter 2009 | First Quarter 2009 | ||||||||
(in millions, except per share data) | 2010 | 2009 | 2009 | 2009 | 2009 | Amount | Percent | Amount | Percent | |||||
INTEREST INCOME | ||||||||||||||
Interest and fees on loans | $ 412 | $ 424 | $ 444 | $ 447 | $ 452 | $ (12) | (3) | % | $ (40) | (9) | % | |||
Interest on investment securities | 61 | 53 | 64 | 103 | 109 | 8 | 16 | (48) | (44) | |||||
Interest on short-term investments | 3 | 2 | 3 | 2 | 2 | 1 | 49 | 1 | 74 | |||||
Total interest income | 476 | 479 | 511 | 552 | 563 | (3) | (1) | (87) | (15) | |||||
INTEREST EXPENSE | ||||||||||||||
Interest on deposits | 35 | 52 | 89 | 106 | 125 | (17) | (30) | (90) | (72) | |||||
Interest on short-term borrowings | - | - | - | - | 2 | - | 27 | (2) | (96) | |||||
Interest on medium- and long-term debt | 26 | 31 | 37 | 44 | 52 | (5) | (19) | (26) | (51) | |||||
Total interest expense | 61 | 83 | 126 | 150 | 179 | (22) | (26) | (118) | (66) | |||||
Net interest income | 415 | 396 | 385 | 402 | 384 | 19 | 5 | 31 | 8 | |||||
Provision for loan losses | 175 | 256 | 311 | 312 | 203 | (81) | (32) | (28) | (14) | |||||
Net interest income after provision for loan losses | 240 | 140 | 74 | 90 | 181 | 100 | 71 | 59 | 32 | |||||
NONINTEREST INCOME | ||||||||||||||
Service charges on deposit accounts | 56 | 56 | 59 | 55 | 58 | - | - | (2) | (3) | |||||
Fiduciary income | 39 | 38 | 40 | 41 | 42 | 1 | 1 | (3) | (7) | |||||
Commercial lending fees | 22 | 21 | 21 | 19 | 18 | 1 | 2 | 4 | 21 | |||||
Letter of credit fees | 18 | 19 | 18 | 16 | 16 | (1) | (3) | 2 | 18 | |||||
Card fees | 13 | 14 | 13 | 12 | 12 | (1) | (1) | 1 | 14 | |||||
Foreign exchange income | 10 | 11 | 10 | 11 | 9 | (1) | (7) | 1 | 4 | |||||
Bank-owned life insurance | 8 | 9 | 8 | 10 | 8 | (1) | (9) | - | - | |||||
Brokerage fees | 6 | 7 | 7 | 8 | 9 | (1) | (15) | (3) | (35) | |||||
Net securities gains | 2 | 10 | 107 | 113 | 13 | (8) | (81) | (11) | (86) | |||||
Other noninterest income | 20 | 29 | 32 | 13 | 38 | (9) | (33) | (18) | (48) | |||||
Total noninterest income | 194 | 214 | 315 | 298 | 223 | (20) | (9) | (29) | (13) | |||||
NONINTEREST EXPENSES | ||||||||||||||
Salaries | 169 | 174 | 171 | 171 | 171 | (5) | (3) | (2) | (1) | |||||
Employee benefits | 44 | 51 | 51 | 53 | 55 | (7) | (14) | (11) | (20) | |||||
Total salaries and employee benefits | 213 | 225 | 222 | 224 | 226 | (12) | (6) | (13) | (6) | |||||
Net occupancy expense | 42 | 43 | 40 | 38 | 41 | (1) | (2) | 1 | 2 | |||||
Equipment expense | 17 | 16 | 15 | 15 | 16 | 1 | 6 | 1 | 5 | |||||
Outside processing fee expense | 23 | 23 | 24 | 25 | 25 | - | - | (2) | (8) | |||||
Software expense | 22 | 23 | 21 | 20 | 20 | (1) | (3) | 2 | 10 | |||||
FDIC insurance expense | 17 | 15 | 15 | 45 | 15 | 2 | 11 | 2 | 11 | |||||
Other real estate expense | 12 | 22 | 10 | 9 | 7 | (10) | (45) | 5 | 80 | |||||
Legal fees | 9 | 12 | 8 | 10 | 7 | (3) | (27) | 2 | 18 | |||||
Litigation and operational losses | 1 | 3 | 3 | 2 | 2 | (2) | (43) | (1) | (33) | |||||
Provision for credit losses on lending-related commitments | 7 | 3 | 2 | (4) | (1) | 4 | N/M | 8 | N/M | |||||
Other noninterest expenses | 41 | 40 | 39 | 45 | 39 | 1 | - | 2 | 9 | |||||
Total noninterest expenses | 404 | 425 | 399 | 429 | 397 | (21) | (5) | 7 | 2 | |||||
Income (loss) from continuing operations before income taxes | 30 | (71) | (10) | (41) | 7 | 101 | N/M | 23 | N/M | |||||
Provision (benefit) for income taxes | (5) | (42) | (29) | (59) | (1) | 37 | 88 | (4) | N/M | |||||
Income (loss) from continuing operations | 35 | (29) | 19 | 18 | 8 | 64 | N/M | 27 | N/M | |||||
Income from discontinued operations, net of tax | 17 | - | - | - | 1 | 17 | N/M | 16 | N/M | |||||
NET INCOME (LOSS) | 52 | (29) | 19 | 18 | 9 | 81 | N/M | 43 | N/M | |||||
Preferred stock dividends | 123 | 33 | 34 | 34 | 33 | 90 | N/M | 90 | N/M | |||||
Income allocated to participating securities | - | - | 1 | - | - | - | - | - | - | |||||
Net loss attributable to common shares | $ (71) | $ (62) | $ (16) | $ (16) | $ (24) | $ (9) | $ (14) | % | $ (47) | N/M | % | |||
Basic earnings per common share: | ||||||||||||||
Loss from continuing operations | $ (0.57) | $ (0.42) | $ (0.10) | $ (0.11) | $ (0.17) | $ (0.15) | (0.36) | % | $ (0.40) | N/M | % | |||
Net loss | (0.46) | (0.42) | (0.10) | (0.11) | (0.16) | (0.04) | (0.10) | (0.30) | N/M | |||||
Diluted earnings per common share: | ||||||||||||||
Loss from continuing operations | (0.57) | (0.42) | (0.10) | (0.11) | (0.17) | (0.15) | (0.36) | (0.40) | N/M | |||||
Net loss | (0.46) | (0.42) | (0.10) | (0.11) | (0.16) | (0.04) | (0.10) | (0.30) | N/M | |||||
Cash dividends declared on common stock | 9 | 8 | 7 | 8 | 7 | 1 | 17 | 2 | 18 | |||||
Cash dividends declared per common share | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | - | - | - | - | |||||
N/M - Not meaningful | ||||||||||||||
ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited) | |||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||
2010 | 2009 | ||||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||
Balance at beginning of period | $ 985 | $ 953 | $ 880 | $ 816 | $ 770 | ||||||||
Loan charge-offs: | |||||||||||||
Commercial | 49 | 113 | 113 | 88 | 61 | ||||||||
Real estate construction: | |||||||||||||
Commercial Real Estate business line (a) | 71 | 33 | 63 | 81 | 57 | ||||||||
Other business lines (b) | 3 | - | 1 | - | - | ||||||||
Total real estate construction | 74 | 33 | 64 | 81 | 57 | ||||||||
Commercial mortgage: | |||||||||||||
Commercial Real Estate business line (a) | 16 | 27 | 24 | 23 | 16 | ||||||||
Other business lines (b) | 28 | 25 | 15 | 23 | 18 | ||||||||
Total commercial mortgage | 44 | 52 | 39 | 46 | 34 | ||||||||
Residential mortgage | 2 | 6 | 11 | 2 | 2 | ||||||||
Consumer | 8 | 9 | 7 | 12 | 6 | ||||||||
Lease financing | - | 6 | 6 | 24 | - | ||||||||
International | 7 | 13 | 5 | 4 | 1 | ||||||||
Total loan charge-offs | 184 | 232 | 245 | 257 | 161 | ||||||||
Recoveries on loans previously charged-off: | |||||||||||||
Commercial | 7 | 7 | 3 | 5 | 3 | ||||||||
Real estate construction | 1 | - | 1 | - | - | ||||||||
Commercial mortgage | 3 | 1 | - | 2 | - | ||||||||
Residential mortgage | - | - | - | - | - | ||||||||
Consumer | - | - | 1 | - | 1 | ||||||||
Lease financing | - | - | - | 1 | - | ||||||||
International | - | - | 1 | 1 | - | ||||||||
Total recoveries | 11 | 8 | 6 | 9 | 4 | ||||||||
Net loan charge-offs | 173 | 224 | 239 | 248 | 157 | ||||||||
Provision for loan losses | 175 | 256 | 311 | 312 | 203 | ||||||||
Foreign currency translation adjustment | - | - | 1 | - | - | ||||||||
Balance at end of period | $ 987 | $ 985 | $ 953 | $ 880 | $ 816 | ||||||||
Allowance for loan losses as a percentage of total loans | 2.42 | % | 2.34 | % | 2.19 | % | 1.89 | % | 1.68 | % | |||
Net loan charge-offs as a percentage of average total loans | 1.68 | 2.09 | 2.14 | 2.08 | 1.26 | ||||||||
Net credit-related charge-offs as a percentage of average total loans | 1.68 | 2.10 | 2.14 | 2.08 | 1.26 | ||||||||
(a) Primarily charge-offs of loans to real estate investors and developers. | |||||||||||||
(b) Primarily charge-offs of loans secured by owner-occupied real estate. | |||||||||||||
ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited) | ||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||
2010 | 2009 | |||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||
Balance at beginning of period | $ 37 | $ 35 | $ 33 | $ 37 | $ 38 | |||||||
Less: Charge-offs on lending-related commitments (a) | - | 1 | - | - | - | |||||||
Add: Provision for credit losses on lending-related commitments | 7 | 3 | 2 | (4) | (1) | |||||||
Balance at end of period | $ 44 | $ 37 | $ 35 | $ 33 | $ 37 | |||||||
Unfunded lending-related commitments sold | $ - | $ 3 | $ 1 | $ - | $ - | |||||||
(a) Charge-offs result from the sale of unfunded lending-related commitments. | ||||||||||||
NONPERFORMING ASSETS (unaudited) | ||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||
2010 | 2009 | |||||||||||
(in millions) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS | ||||||||||||
Nonaccrual loans: | ||||||||||||
Commercial | $ 209 | $ 238 | $ 290 | $ 327 | $ 258 | |||||||
Real estate construction: | ||||||||||||
Commercial Real Estate business line (a) | 516 | 507 | 542 | 472 | 426 | |||||||
Other business lines (b) | 3 | 4 | 4 | 4 | 5 | |||||||
Total real estate construction | 519 | 511 | 546 | 476 | 431 | |||||||
Commercial mortgage: | ||||||||||||
Commercial Real Estate business line (a) | 105 | 127 | 137 | 134 | 131 | |||||||
Other business lines (b) | 226 | 192 | 161 | 175 | 138 | |||||||
Total commercial mortgage | 331 | 319 | 298 | 309 | 269 | |||||||
Residential mortgage | 58 | 50 | 27 | 7 | 8 | |||||||
Consumer | 13 | 12 | 8 | 7 | 8 | |||||||
Lease financing | 11 | 13 | 18 | - | 2 | |||||||
International | 4 | 22 | 7 | 4 | 6 | |||||||
Total nonaccrual loans | 1,145 | 1,165 | 1,194 | 1,130 | 982 | |||||||
Reduced-rate loans | 17 | 16 | 2 | - | - | |||||||
Total nonperforming loans | 1,162 | 1,181 | 1,196 | 1,130 | 982 | |||||||
Foreclosed property | 89 | 111 | 109 | 100 | 91 | |||||||
Total nonperforming assets | $ 1,251 | $ 1,292 | $ 1,305 | $ 1,230 | $ 1,073 | |||||||
Nonperforming loans as a percentage of total loans | 2.85 | % | 2.80 | % | 2.74 | % | 2.43 | % | 2.02 | % | ||
Nonperforming assets as a percentage of total loans and foreclosed property | 3.06 | 3.06 | 2.99 | 2.64 | 2.20 | |||||||
Allowance for loan losses as a percentage of total nonperforming loans | 85 | 83 | 80 | 78 | 83 | |||||||
Loans past due 90 days or more and still accruing | $ 83 | $ 101 | $ 161 | $ 210 | $ 207 | |||||||
ANALYSIS OF NONACCRUAL LOANS | ||||||||||||
Nonaccrual loans at beginning of period | $ 1,165 | $ 1,194 | $ 1,130 | $ 982 | $ 917 | |||||||
Loans transferred to nonaccrual (c) | 245 | 266 | 361 | 419 | 241 | |||||||
Nonaccrual business loan gross charge-offs (d) | (174) | (217) | (226) | (242) | (153) | |||||||
Loans transferred to accrual status (c) | - | - | (4) | - | (4) | |||||||
Nonaccrual business loans sold (e) | (44) | (10) | (41) | (10) | (3) | |||||||
Payments/Other (f) | (47) | (68) | (26) | (19) | (16) | |||||||
Nonaccrual loans at end of period | $ 1,145 | $ 1,165 | $ 1,194 | $ 1,130 | $ 982 | |||||||
(a) Primarily loans to real estate investors and developers. | ||||||||||||
(b) Primarily loans secured by owner-occupied real estate. | ||||||||||||
(c) Based on an analysis of nonaccrual loans with book balances greater than $2 million. | ||||||||||||
(d) Analysis of gross loan charge-offs: | ||||||||||||
Nonaccrual business loans | $ 174 | $ 217 | $ 226 | $ 242 | $ 153 | |||||||
Performing watch list loans | - | - | 1 | 1 | - | |||||||
Consumer and residential mortgage loans | 10 | 15 | 18 | 14 | 8 | |||||||
Total gross loan charge-offs | $ 184 | $ 232 | $ 245 | $ 257 | $ 161 | |||||||
(e) Analysis of loans sold: | ||||||||||||
Nonaccrual business loans | $ 44 | $ 10 | $ 41 | $ 10 | $ 3 | |||||||
Performing watch list loans | 12 | 1 | 24 | 6 | - | |||||||
Total loans sold | $ 56 | $ 11 | $ 65 | $ 16 | $ 3 | |||||||
(f) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrul loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold. | ||||||||||||
ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
Three Months Ended | ||||||||||||||||
March 31, 2010 | December 31, 2009 | March 31, 2009 | ||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||
(dollar amounts in millions) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | |||||||
Commercial loans | $ 21,015 | $ 205 | 3.96 | % | $ 21,971 | $ 212 | 3.84 | % | $ 27,180 | $ 228 | 3.39 | % | ||||
Real estate construction loans | 3,386 | 25 | 2.95 | 3,703 | 27 | 2.90 | 4,510 | 33 | 2.99 | |||||||
Commercial mortgage loans | 10,387 | 107 | 4.18 | 10,393 | 110 | 4.19 | 10,431 | 109 | 4.22 | |||||||
Residential mortgage loans | 1,632 | 22 | 5.41 | 1,664 | 21 | 5.01 | 1,846 | 26 | 5.66 | |||||||
Consumer loans | 2,481 | 22 | 3.58 | 2,517 | 23 | 3.59 | 2,574 | 24 | 3.79 | |||||||
Lease financing | 1,130 | 11 | 3.75 | 1,181 | 11 | 3.80 | 1,300 | 9 | 2.82 | |||||||
International loans | 1,282 | 12 | 3.93 | 1,324 | 12 | 3.73 | 1,715 | 16 | 3.85 | |||||||
Business loan swap income | - | 8 | - | - | 9 | - | - | 8 | - | |||||||
Total loans | 41,313 | 412 | 4.04 | 42,753 | 425 | 3.95 | 49,556 | 453 | 3.70 | |||||||
Auction-rate securities available-for-sale | 879 | 2 | 0.93 | 923 | 3 | 1.37 | 1,108 | 5 | 1.71 | |||||||
Other investment securities available-for-sale | 6,503 | 60 | 3.72 | 7,664 | 51 | 2.67 | 9,018 | 105 | 4.82 | |||||||
Total investment securities available-for-sale | 7,382 | 62 | 3.38 | 8,587 | 54 | 2.53 | 10,126 | 110 | 4.46 | |||||||
Federal funds sold and securities purchased under agreements to resell | - | - | - | 1 | - | 0.29 | 57 | - | 0.32 | |||||||
Interest-bearing deposits with banks (a) | 4,122 | 2 | 0.25 | 2,480 | 1 | 0.25 | 1,848 | 1 | 0.23 | |||||||
Other short-term investments | 124 | 1 | 1.75 | 132 | 1 | 1.55 | 165 | 1 | 1.67 | |||||||
Total earning assets | 52,941 | 477 | 3.65 | 53,953 | 481 | 3.55 | 61,752 | 565 | 3.71 | |||||||
Cash and due from banks | 788 | 831 | 950 | |||||||||||||
Allowance for loan losses | (1,058) | (1,048) | (832) | |||||||||||||
Accrued income and other assets | 4,848 | 4,660 | 4,867 | |||||||||||||
Total assets | $ 57,519 | $ 58,396 | $ 66,737 | |||||||||||||
Money market and NOW deposits | $ 15,055 | 12 | 0.32 | $ 14,113 | 14 | 0.39 | $ 12,334 | 19 | 0.63 | |||||||
Savings deposits | 1,384 | - | 0.07 | 1,376 | - | 0.08 | 1,278 | 1 | 0.18 | |||||||
Customer certificates of deposit | 6,173 | 15 | 1.02 | 6,823 | 25 | 1.42 | 8,856 | 58 | 2.67 | |||||||
Total interest-bearing core deposits | 22,612 | 27 | 0.50 | 22,312 | 39 | 0.69 | 22,468 | 78 | 1.41 | |||||||
Other time deposits | 877 | 8 | 3.53 | 1,493 | 12 | 3.22 | 6,280 | 46 | 3.01 | |||||||
Foreign office time deposits | 458 | - | 0.21 | 550 | - | 0.22 | 670 | 1 | 0.42 | |||||||
Total interest-bearing deposits | 23,947 | 35 | 0.60 | 24,355 | 51 | 0.83 | 29,418 | 125 | 1.73 | |||||||
Short-term borrowings | 234 | - | 0.11 | 222 | - | 0.09 | 2,362 | 2 | 0.29 | |||||||
Medium- and long-term debt | 10,775 | 26 | 0.95 | 11,140 | 32 | 1.12 | 14,924 | 52 | 1.40 | |||||||
Total interest-bearing sources | 34,956 | 61 | 0.71 | 35,717 | 83 | 0.92 | 46,704 | 179 | 1.55 | |||||||
Noninterest-bearing deposits | 14,624 | 14,430 | 11,364 | |||||||||||||
Accrued expenses and other liabilities | 1,075 | 1,225 | 1,514 | |||||||||||||
Total shareholders' equity | 6,864 | 7,024 | 7,155 | |||||||||||||
Total liabilities and shareholders' equity | $ 57,519 | $ 58,396 | $ 66,737 | |||||||||||||
Net interest income/rate spread (FTE) | $ 416 | 2.94 | $ 398 | 2.63 | $ 386 | 2.16 | ||||||||||
FTE adjustment | $ 1 | $ 2 | $ 2 | |||||||||||||
Impact of net noninterest-bearing sources of funds | 0.24 | 0.31 | 0.37 | |||||||||||||
Net interest margin (as a percentage of average earning assets) (FTE) (a) | 3.18 | % | 2.94 | % | 2.53 | % | ||||||||||
(a) Excess liquidity, represented by average balances deposited with the Federal Reserve Bank, reduced the net interest margin by 24 basis points in the first quarter of 2010, and by 13 basis points and 7 basis points in the fourth and first quarters of 2009, respectively. Excluding excess liquidity, the net interest margin would have been 3.42%, 3.07% and 2.60% in each respective period. See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||||
CONSOLIDATED STATISTICAL DATA (unaudited) | ||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||
(in millions, except per share data) | 2010 | 2009 | 2009 | 2009 | 2009 | |||||||
Commercial loans: | ||||||||||||
Floor plan | $ 1,351 | $ 1,367 | $ 857 | $ 1,492 | $ 1,763 | |||||||
Other | 19,405 | 20,323 | 21,689 | 23,430 | 24,668 | |||||||
Total commercial loans | 20,756 | 21,690 | 22,546 | 24,922 | 26,431 | |||||||
Real estate construction loans: | ||||||||||||
Commercial Real Estate business line (a) | 2,741 | 2,988 | 3,328 | 3,500 | 3,711 | |||||||
Other business lines (b) | 461 | 473 | 542 | 652 | 668 | |||||||
Total real estate construction loans | 3,202 | 3,461 | 3,870 | 4,152 | 4,379 | |||||||
Commercial mortgage loans: | ||||||||||||
Commercial Real Estate business line (a) | 1,880 | 1,824 | 1,678 | 1,728 | 1,659 | |||||||
Other business lines (b) | 8,478 | 8,633 | 8,702 | 8,672 | 8,855 | |||||||
Total commercial mortgage loans | 10,358 | 10,457 | 10,380 | 10,400 | 10,514 | |||||||
Residential mortgage loans | 1,631 | 1,651 | 1,679 | 1,759 | 1,836 | |||||||
Consumer loans: | ||||||||||||
Home equity | 1,769 | 1,803 | 1,804 | 1,801 | 1,791 | |||||||
Other consumer | 703 | 708 | 740 | 761 | 786 | |||||||
Total consumer loans | 2,472 | 2,511 | 2,544 | 2,562 | 2,577 | |||||||
Lease financing | 1,120 | 1,139 | 1,197 | 1,234 | 1,232 | |||||||
International loans | 1,306 | 1,252 | 1,355 | 1,523 | 1,655 | |||||||
Total loans | $ 40,845 | $ 42,161 | $ 43,571 | $ 46,552 | $ 48,624 | |||||||
Goodwill | $ 150 | $ 150 | $ 150 | $ 150 | $ 150 | |||||||
Loan servicing rights | 6 | 7 | 8 | 9 | 10 | |||||||
Tier 1 common capital ratio (c) (d) | 9.58 | % | 8.18 | % | 8.04 | % | 7.66 | % | 7.32 | % | ||
Tier 1 risk-based capital ratio (d) | 10.40 | 12.46 | 12.21 | 11.58 | 11.06 | |||||||
Total risk-based capital ratio (d) | 14.93 | 16.93 | 16.79 | 15.97 | 15.36 | |||||||
Leverage ratio (d) | 11.00 | 13.25 | 12.46 | 12.11 | 11.65 | |||||||
Tangible common equity ratio (c) | 9.68 | 7.99 | 7.96 | 7.55 | 7.27 | |||||||
Book value per common share | $ 32.15 | $ 32.27 | $ 32.36 | $ 32.78 | $ 33.40 | |||||||
Market value per share for the quarter: | ||||||||||||
High | 39.36 | 32.30 | 31.83 | 26.47 | 21.20 | |||||||
Low | 29.68 | 26.49 | 19.94 | 16.03 | 11.72 | |||||||
Close | 38.04 | 29.57 | 29.67 | 21.15 | 18.31 | |||||||
Quarterly ratios: | ||||||||||||
Return on average common shareholders' equity | (5.61) | % | (5.10) | % | (1.27) | % | (1.25) | % | (1.90) | % | ||
Return on average assets | 0.36 | (0.19) | 0.12 | 0.11 | 0.06 | |||||||
Efficiency ratio | 66.45 | 70.68 | 67.14 | 72.75 | 66.61 | |||||||
Number of banking centers | 449 | 447 | 444 | 441 | 440 | |||||||
Number of employees - full time equivalent | 9,215 | 9,330 | 9,384 | 9,497 | 9,696 | |||||||
(a) Primarily loans to real estate investors and developers. | ||||||||||||
(b) Primarily loans secured by owner-occupied real estate. | ||||||||||||
(c) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||
(d) March 31, 2010 ratios are estimated. | ||||||||||||
PARENT COMPANY ONLY BALANCE SHEETS (unaudited) | ||||
Comerica Incorporated | ||||
March 31, | December 31, | March 31, | ||
(in millions, except share data) | 2010 | 2009 | 2009 | |
ASSETS | ||||
Cash and due from subsidiary bank | $ 14 | $ 5 | $ 15 | |
Short-term investments with subsidiary bank | 651 | 2,150 | 2,229 | |
Other short-term investments | 86 | 86 | 75 | |
Investment in subsidiaries, principally banks | 5,818 | 5,710 | 5,780 | |
Premises and equipment | 4 | 4 | 4 | |
Other assets | 206 | 186 | 216 | |
Total assets | $ 6,779 | $ 8,141 | $ 8,319 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Medium- and long-term debt | $ 989 | $ 986 | $ 999 | |
Other liabilities | 122 | 126 | 137 | |
Total liabilities | 1,111 | 1,112 | 1,136 | |
Fixed rate cumulative perpetual preferred stock, series F, no par value, $1,000 liquidation preference per share: | ||||
Authorized - 2,250,000 shares at 12/31/09 and 3/31/09 Issued - 2,250,000 shares at 12/31/09 and 3/31/09 | - | 2,151 | 2,134 | |
Common stock - $5 par value: | ||||
Authorized - 325,000,000 shares Issued - 203,878,110 shares at 3/31/10 and 178,735,252 shares at 12/31/09 and 3/31/09 | 1,019 | 894 | 894 | |
Capital surplus | 1,468 | 740 | 727 | |
Accumulated other comprehensive loss | (303) | (336) | (238) | |
Retained earnings | 5,064 | 5,161 | 5,252 | |
Less cost of common stock in treasury - 27,575,283 shares at 3/31/10, 27,555,623 shares at 12/31/09 and 27,580,899 shares at 3/31/09 | (1,580) | (1,581) | (1,586) | |
Total shareholders' equity | 5,668 | 7,029 | 7,183 | |
Total liabilities and shareholders' equity | $ 6,779 | $ 8,141 | $ 8,319 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) | |||||||||
Comerica Incorporated and Subsidiaries | |||||||||
Accumulated | |||||||||
Common Stock | Other | Total | |||||||
Preferred | Shares | Capital | Comprehensive | Retained | Treasury | Shareholders' | |||
(in millions, except per share data) | Stock | Outstanding | Amount | Surplus | Loss | Earnings | Stock | Equity | |
BALANCE AT DECEMBER 31, 2008 | $ 2,129 | 150.5 | $ 894 | $ 722 | $ (309) | $ 5,345 | $ (1,629) | $ 7,152 | |
Net income | - | - | - | - | - | 9 | - | 9 | |
Other comprehensive income, net of tax | - | - | - | - | 71 | - | - | 71 | |
Total comprehensive income | 80 | ||||||||
Cash dividends declared on preferred stock | - | - | - | - | - | (57) | - | (57) | |
Cash dividends declared on common stock ($0.05 per share) | - | - | - | - | - | (7) | - | (7) | |
Accretion of discount on preferred stock | 5 | - | - | - | - | (5) | - | - | |
Net issuance of common stock under employee stock plans | - | 0.7 | - | (12) | - | (33) | 43 | (2) | |
Share-based compensation | - | - | - | 11 | - | - | - | 11 | |
Other | - | - | - | 6 | - | - | - | 6 | |
BALANCE AT MARCH 31, 2009 | $ 2,134 | 151.2 | $ 894 | $ 727 | $ (238) | $ 5,252 | $ (1,586) | $ 7,183 | |
BALANCE AT DECEMBER 31, 2009 | $ 2,151 | 151.2 | $ 894 | $ 740 | $ (336) | $ 5,161 | $ (1,581) | $ 7,029 | |
Net income | - | - | - | - | - | 52 | - | 52 | |
Other comprehensive income, net of tax | - | - | - | - | 33 | - | - | 33 | |
Total comprehensive income | 85 | ||||||||
Cash dividends declared on preferred stock | - | - | - | - | - | (38) | - | (38) | |
Cash dividends declared on common stock ($0.05 per share) | - | - | - | - | - | (9) | - | (9) | |
Purchase of common stock | - | - | - | - | - | - | (2) | (2) | |
Issuance of common stock | - | 25.1 | 125 | 724 | - | - | - | 849 | |
Redemption of preferred stock | (2,250) | - | - | - | - | - | - | (2,250) | |
Redemption discount accretion on preferred stock | 94 | - | - | - | - | (94) | - | - | |
Accretion of discount on preferred stock | 5 | - | - | - | - | (5) | - | - | |
Net issuance of common stock under employee stock plans | - | - | - | - | - | (3) | 3 | - | |
Share-based compensation | - | - | - | 4 | - | - | - | 4 | |
Other | - | - | - | - | - | - | - | - | |
BALANCE AT MARCH 31, 2010 | $ - | 176.3 | $ 1,019 | $ 1,468 | $ (303) | $ 5,064 | $ (1,580) | $ 5,668 | |
BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||
Wealth & | |||||||||||||
(dollar amounts in millions) | Business | Retail | Institutional | ||||||||||
Three Months Ended March 31, 2010 | Bank | Bank | Management | Finance | Other | Total | |||||||
Earnings summary: | |||||||||||||
Net interest income (expense) (FTE) | $ 341 | $ 130 | $ 42 | $ (105) | $ 8 | $ 416 | |||||||
Provision for loan losses | 137 | 31 | 12 | - | (5) | 175 | |||||||
Noninterest income | 76 | 44 | 60 | 12 | 2 | 194 | |||||||
Noninterest expenses | 162 | 154 | 73 | 2 | 13 | 404 | |||||||
Provision (benefit) for income taxes (FTE) | 29 | (4) | 6 | (36) | 1 | (4) | |||||||
Income from discontinued operations, net of tax | - | - | - | - | 17 | 17 | |||||||
Net income (loss) | $ 89 | $ (7) | $ 11 | $ (59) | $ 18 | $ 52 | |||||||
Net credit-related charge-offs | $ 137 | $ 26 | $ 10 | $ - | $ - | $ 173 | |||||||
Selected average balances: | |||||||||||||
Assets | $ 31,293 | $ 6,106 | $ 4,862 | $ 9,416 | $ 5,842 | $ 57,519 | |||||||
Loans | 30,918 | 5,599 | 4,789 | 9 | (2) | 41,313 | |||||||
Deposits | 17,750 | 16,718 | 2,791 | 1,218 | 94 | 38,571 | |||||||
Liabilities | 17,711 | 16,678 | 2,777 | 12,601 | 888 | 50,655 | |||||||
Attributed equity | 3,159 | 589 | 357 | 919 | 1,840 | 6,864 | |||||||
Statistical data: | |||||||||||||
Return on average assets (a) | 1.13 | % | (0.17) | % | 0.92 | % | N/M | N/M | 0.36 | % | |||
Return on average attributed equity | 11.24 | (4.86) | 12.50 | N/M | N/M | (5.61) | |||||||
Net interest margin (b) | 4.48 | 3.18 | 3.53 | N/M | N/M | 3.18 | |||||||
Efficiency ratio | 38.72 | 88.44 | 73.18 | N/M | N/M | 66.45 | |||||||
Wealth & | |||||||||||||
Business | Retail | Institutional | |||||||||||
Three Months Ended December 31, 2009 | Bank | Bank | Management | Finance | Other | Total | |||||||
Earnings summary: | |||||||||||||
Net interest income (expense) (FTE) | $ 343 | $ 129 | $ 42 | $ (125) | $ 9 | $ 398 | |||||||
Provision for loan losses | 179 | 36 | 19 | - | 22 | 256 | |||||||
Noninterest income | 77 | 48 | 60 | 26 | 3 | 214 | |||||||
Noninterest expenses | 165 | 161 | 76 | 2 | 21 | 425 | |||||||
Provision (benefit) for income taxes (FTE) | 11 | (8) | 2 | (39) | (6) | (40) | |||||||
Income from discontinued operations, net of tax | - | - | - | - | - | - | |||||||
Net income (loss) | $ 65 | $ (12) | $ 5 | $ (62) | $ (25) | $ (29) | |||||||
Net credit-related charge-offs | $ 183 | $ 30 | $ 12 | $ - | $ - | $ 225 | |||||||
Selected average balances: | |||||||||||||
Assets | $ 32,655 | $ 6,257 | $ 4,841 | $ 10,683 | $ 3,960 | $ 58,396 | |||||||
Loans | 32,289 | 5,733 | 4,746 | - | (15) | 42,753 | |||||||
Deposits | 16,944 | 17,020 | 2,849 | 1,892 | 80 | 38,785 | |||||||
Liabilities | 16,903 | 16,978 | 2,837 | 13,722 | 932 | 51,372 | |||||||
Attributed equity | 3,376 | 606 | 373 | 899 | 1,770 | 7,024 | |||||||
Statistical data: | |||||||||||||
Return on average assets (a) | 0.80 | % | (0.27) | % | 0.38 | % | N/M | N/M | (0.19) | % | |||
Return on average attributed equity | 7.70 | (7.76) | 4.91 | N/M | N/M | (5.10) | |||||||
Net interest margin (b) | 4.21 | 3.02 | 3.50 | N/M | N/M | 2.94 | |||||||
Efficiency ratio | 39.22 | 90.98 | 75.98 | N/M | N/M | 70.68 | |||||||
Wealth & | |||||||||||||
Business | Retail | Institutional | |||||||||||
Three Months Ended March 31, 2009 | Bank | Bank | Management | Finance | Other | Total | |||||||
Earnings summary: | |||||||||||||
Net interest income (expense) (FTE) | $ 312 | $ 126 | $ 36 | $ (99) | $ 11 | $ 386 | |||||||
Provision for loan losses | 177 | 23 | 10 | - | (7) | 203 | |||||||
Noninterest income | 93 | 46 | 70 | 20 | (6) | 223 | |||||||
Noninterest expenses | 157 | 161 | 75 | 4 | - | 397 | |||||||
Provision (benefit) for income taxes (FTE) | 15 | (5) | 8 | (33) | 16 | 1 | |||||||
Income from discontinued operations, net of tax | - | - | - | - | 1 | 1 | |||||||
Net income (loss) | $ 56 | $ (7) | $ 13 | $ (50) | $ (3) | $ 9 | |||||||
Net credit-related charge-offs | $ 123 | $ 26 | $ 8 | $ - | $ - | $ 157 | |||||||
Selected average balances: | |||||||||||||
Assets | $ 39,505 | $ 6,875 | $ 4,870 | $ 12,703 | $ 2,784 | $ 66,737 | |||||||
Loans | 38,527 | 6,284 | 4,750 | (4) | (1) | 49,556 | |||||||
Deposits | 14,040 | 17,391 | 2,429 | 6,786 | 136 | 40,782 | |||||||
Liabilities | 14,372 | 17,367 | 2,418 | 24,914 | 511 | 59,582 | |||||||
Attributed equity | 3,345 | 658 | 340 | 1,177 | 1,635 | 7,155 | |||||||
Statistical data: | |||||||||||||
Return on average assets (a) | 0.57 | % | (0.16) | % | 1.10 | % | N/M | N/M | 0.06 | % | |||
Return on average attributed equity | 6.78 | (4.48) | 15.80 | N/M | N/M | (1.90) | |||||||
Net interest margin (b) | 3.28 | 2.93 | 3.11 | N/M | N/M | 2.53 | |||||||
Efficiency ratio | 38.55 | 94.01 | 74.09 | N/M | N/M | 66.61 | |||||||
(a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. | |||||||||||||
(b) Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds. | |||||||||||||
FTE - Fully Taxable Equivalent | |||||||||||||
N/M – Not Meaningful | |||||||||||||
MARKET SEGMENT FINANCIAL RESULTS (unaudited) | |||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||
Finance | |||||||||||||||||
(dollar amounts in millions) | Other | & Other | |||||||||||||||
Three Months Ended March 31, 2010 | Midwest | Western | Texas | Florida | Markets | International | Businesses | Total | |||||||||
Earnings summary: | |||||||||||||||||
Net interest income (expense) (FTE) | $ 205 | $ 161 | $ 79 | $ 10 | $ 40 | $ 18 | $ (97) | $ 416 | |||||||||
Provision for loan losses | 81 | 59 | 17 | 3 | 23 | (3) | (5) | 175 | |||||||||
Noninterest income | 102 | 36 | 20 | 3 | 10 | 9 | 14 | 194 | |||||||||
Noninterest expenses | 186 | 105 | 60 | 9 | 21 | 8 | 15 | 404 | |||||||||
Provision (benefit) for income taxes (FTE) | 14 | 11 | 8 | - | (10) | 8 | (35) | (4) | |||||||||
Income from discontinued operations, net of tax | - | - | - | - | - | - | 17 | 17 | |||||||||
Net income (loss) | $ 26 | $ 22 | $ 14 | $ 1 | $ 16 | $ 14 | $ (41) | $ 52 | |||||||||
Net credit-related charge-offs | $ 55 | $ 64 | $ 25 | $ 10 | $ 14 | $ 5 | $ - | $ 173 | |||||||||
Selected average balances: | |||||||||||||||||
Assets | $ 15,573 | $ 13,175 | $ 6,892 | $ 1,576 | $ 3,417 | $ 1,628 | $ 15,258 | $ 57,519 | |||||||||
Loans | 15,332 | 12,980 | 6,704 | 1,576 | 3,126 | 1,588 | 7 | 41,313 | |||||||||
Deposits | 17,068 | 11,927 | 4,957 | 361 | 1,973 | 973 | 1,312 | 38,571 | |||||||||
Liabilities | 17,044 | 11,846 | 4,941 | 347 | 2,010 | 978 | 13,489 | 50,655 | |||||||||
Attributed equity | 1,446 | 1,315 | 670 | 164 | 352 | 158 | 2,759 | 6,864 | |||||||||
Statistical data: | |||||||||||||||||
Return on average assets (a) | 0.55 | % | 0.67 | % | 0.84 | % | 0.17 | % | 1.85 | % | 3.50 | % | N/M | 0.36 | % | ||
Return on average attributed equity | 7.09 | 6.68 | 8.66 | 1.60 | 17.97 | 36.09 | N/M | (5.61) | |||||||||
Net interest margin (b) | 4.86 | 5.04 | 4.79 | 2.54 | 5.23 | 4.64 | N/M | 3.18 | |||||||||
Efficiency ratio | 60.64 | 53.08 | 60.36 | 72.04 | 43.87 | 29.12 | N/M | 66.45 | |||||||||
Finance | |||||||||||||||||
Other | & Other | ||||||||||||||||
Three Months Ended December 31, 2009 | Midwest | Western | Texas | Florida | Markets | International | Businesses | Total | |||||||||
Earnings summary: | |||||||||||||||||
Net interest income (expense) (FTE) | $ 205 | $ 163 | $ 78 | $ 10 | $ 40 | $ 18 | $ (116) | $ 398 | |||||||||
Provision for loan losses | 101 | 79 | 20 | - | 15 | 19 | 22 | 256 | |||||||||
Noninterest income | 106 | 33 | 23 | 3 | 11 | 9 | 29 | 214 | |||||||||
Noninterest expenses | 194 | 110 | 61 | 9 | 20 | 8 | 23 | 425 | |||||||||
Provision (benefit) for income taxes (FTE) | 4 | - | 7 | 1 | (7) | - | (45) | (40) | |||||||||
Income from discontinued operations, net of tax | - | - | - | - | - | - | - | - | |||||||||
Net income (loss) | $ 12 | $ 7 | $ 13 | $ 3 | $ 23 | $ - | $ (87) | $ (29) | |||||||||
Net credit-related charge-offs | $ 97 | $ 85 | $ 13 | $ 4 | $ 13 | $ 13 | $ - | $ 225 | |||||||||
Selected average balances: | |||||||||||||||||
Assets | $ 16,090 | $ 13,484 | $ 7,118 | $ 1,608 | $ 3,765 | $ 1,688 | $ 14,643 | $ 58,396 | |||||||||
Loans | 15,811 | 13,289 | 6,934 | 1,613 | 3,458 | 1,663 | (15) | 42,753 | |||||||||
Deposits | 17,200 | 11,899 | 4,737 | 333 | 1,705 | 939 | 1,972 | 38,785 | |||||||||
Liabilities | 17,185 | 11,817 | 4,723 | 318 | 1,747 | 928 | 14,654 | 51,372 | |||||||||
Attributed equity | 1,529 | 1,386 | 691 | 176 | 401 | 172 | 2,669 | 7,024 | |||||||||
Statistical data: | |||||||||||||||||
Return on average assets (a) | 0.26 | % | 0.21 | % | 0.75 | % | 0.63 | % | 2.41 | % | 0.06 | % | N/M | (0.19) | % | ||
Return on average attributed equity | 3.17 | 2.00 | 7.73 | 5.72 | 22.60 | 0.58 | N/M | (5.10) | |||||||||
Net interest margin (b) | 4.73 | 4.85 | 4.46 | 2.57 | 4.57 | 4.22 | N/M | 2.94 | |||||||||
Efficiency ratio | 62.55 | 56.08 | 60.22 | 69.94 | 40.93 | 28.74 | N/M | 70.68 | |||||||||
Finance | |||||||||||||||||
Other | & Other | ||||||||||||||||
Three Months Ended March 31, 2009 | Midwest | Western | Texas | Florida | Markets | International | Businesses | Total | |||||||||
Earnings summary: | |||||||||||||||||
Net interest income (expense) (FTE) | $ 194 | $ 146 | $ 70 | $ 11 | $ 39 | $ 14 | $ (88) | $ 386 | |||||||||
Provision for loan losses | 83 | 88 | 9 | 15 | 15 | - | (7) | 203 | |||||||||
Noninterest income | 127 | 36 | 21 | 3 | 14 | 8 | 14 | 223 | |||||||||
Noninterest expenses | 194 | 104 | 58 | 8 | 21 | 8 | 4 | 397 | |||||||||
Provision (benefit) for income taxes (FTE) | 15 | (3) | 9 | (3) | (5) | 5 | (17) | 1 | |||||||||
Income from discontinued operations, net of tax | - | - | - | - | - | - | 1 | 1 | |||||||||
Net income (loss) | $ 29 | $ (7) | $ 15 | $ (6) | $ 22 | $ 9 | $ (53) | $ 9 | |||||||||
Net credit-related charge-offs | $ 54 | $ 76 | $ 8 | $ 12 | $ 6 | $ 1 | $ - | $ 157 | |||||||||
Selected average balances: | |||||||||||||||||
Assets | $ 19,139 | $ 15,443 | $ 8,069 | $ 1,869 | $ 4,553 | $ 2,177 | $ 15,487 | $ 66,737 | |||||||||
Loans | 18,267 | 15,253 | 7,847 | 1,878 | 4,246 | 2,070 | (5) | 49,556 | |||||||||
Deposits | 16,697 | 10,640 | 4,198 | 253 | 1,359 | 713 | 6,922 | 40,782 | |||||||||
Liabilities | 17,012 | 10,571 | 4,212 | 245 | 1,415 | 702 | 25,425 | 59,582 | |||||||||
Attributed equity | 1,604 | 1,375 | 679 | 152 | 383 | 150 | 2,812 | 7,155 | |||||||||
Statistical data: | |||||||||||||||||
Return on average assets (a) | 0.62 | % | (0.18) | % | 0.72 | % | (1.29) | % | 1.93 | % | 1.69 | % | N/M | 0.06 | % | ||
Return on average attributed equity | 7.45 | (1.98) | 8.53 | (15.87) | 22.97 | 24.55 | N/M | (1.90) | |||||||||
Net interest margin (b) | 4.30 | 3.91 | 3.62 | 2.31 | 3.65 | 2.74 | N/M | 2.53 | |||||||||
Efficiency ratio | 60.06 | 57.17 | 64.43 | 61.06 | 43.82 | 33.86 | N/M | 66.61 | |||||||||
(a) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. | |||||||||||||||||
(b) Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds. | |||||||||||||||||
FTE - Fully Taxable Equivalent | |||||||||||||||||
N/M – Not Meaningful | |||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||
(dollar amounts in millions) | 2010 | 2009 | 2009 | 2009 | 2009 | |||||||||||
Tier 1 capital (a) (b) | $ 6,311 | $ 7,704 | $ 7,735 | $ 7,774 | $ 7,760 | |||||||||||
Less: | ||||||||||||||||
Fixed rate cumulative perpetual preferred stock | - | 2,151 | 2,145 | 2,140 | 2,134 | |||||||||||
Trust preferred securities | 495 | 495 | 495 | 495 | 495 | |||||||||||
Tier 1 common capital (b) | $ 5,816 | $ 5,058 | $ 5,095 | $ 5,139 | $ 5,131 | |||||||||||
Risk-weighted assets (a) (b) | $ 60,680 | $ 61,815 | $ 63,355 | $ 67,124 | $ 70,135 | |||||||||||
Tier 1 common capital ratio (b) | 9.58 | % | 8.18 | % | 8.04 | % | 7.66 | % | 7.32 | % | ||||||
Total shareholders' equity | $ 5,668 | $ 7,029 | $ 7,035 | $ 7,093 | $ 7,183 | |||||||||||
Less: | ||||||||||||||||
Fixed rate cumulative perpetual preferred stock | - | 2,151 | 2,145 | 2,140 | 2,134 | |||||||||||
Goodwill | 150 | 150 | 150 | 150 | 150 | |||||||||||
Other intangible assets | 7 | 8 | 8 | 10 | 11 | |||||||||||
Tangible common equity | $ 5,511 | $ 4,720 | $ 4,732 | $ 4,793 | $ 4,889 | |||||||||||
Total assets | $ 57,106 | $ 59,249 | $ 59,590 | $ 63,630 | $ 67,370 | |||||||||||
Less: | ||||||||||||||||
Goodwill | 150 | 150 | 150 | 150 | 150 | |||||||||||
Other intangible assets | 7 | 8 | 8 | 10 | 11 | |||||||||||
Tangible assets | $ 56,949 | $ 59,091 | $ 59,432 | $ 63,470 | $ 67,209 | |||||||||||
Tangible common equity ratio | 9.68 | % | 7.99 | % | 7.96 | % | 7.55 | % | 7.27 | % | ||||||
2010 | 2009 | |||||||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||
Net interest income (FTE) | $ 416 | $ 398 | $ 387 | $ 404 | $ 386 | |||||||||||
Less: | ||||||||||||||||
Interest earned on excess liquidity (c) | 3 | 2 | 2 | 1 | 1 | |||||||||||
Net interest income (FTE), excluding excess liquidity | $ 413 | $ 396 | $ 385 | $ 403 | $ 385 | |||||||||||
Average earning assets | $ 52,941 | $ 53,953 | $ 57,513 | $ 59,522 | $ 61,752 | |||||||||||
Less: | ||||||||||||||||
Average net unrealized gains on investment securities available-for-sale | 62 | 107 | 102 | 239 | 212 | |||||||||||
Average earning assets for net interest margin (FTE) | 52,879 | 53,846 | 57,411 | 59,283 | 61,540 | |||||||||||
Less: | ||||||||||||||||
Excess liquidity (c) | 4,092 | 2,453 | 3,492 | 1,833 | 1,812 | |||||||||||
Average earning assets for net interest margin (FTE), excluding excess liquidity | $ 48,787 | $ 51,393 | $ 53,919 | $ 57,450 | $ 59,728 | |||||||||||
Net interest margin (FTE) | 3.18 | % | 2.94 | % | 2.68 | % | 2.73 | % | 2.53 | % | ||||||
Net interest margin (FTE), excluding excess liquidity | 3.42 | 3.07 | 2.84 | 2.81 | 2.60 | |||||||||||
Impact of excess liquidity on net interest margin (FTE) | (0.24) | (0.13) | (0.16) | (0.08) | (0.07) | |||||||||||
(a) Tier 1 capital and risk-weighted assets as defined by regulation. | ||||||||||||||||
(b) March 31, 2010 Tier 1 capital and risk-weighted assets are estimated. | ||||||||||||||||
(c) Excess liquidity represented by interest earned on and average balances deposited with the Federal Reserve Bank. | ||||||||||||||||
SOURCE Comerica Incorporated