CONSOLIDATED FINANCIAL HIGHLIGHTS Comerica Incorporated and
Subsidiaries Three Months Ended Six Months Ended June 30, March 31,
June 30, June 30, (in millions, except per share data) 2008 2008
2007 2008 2007 PER SHARE AND COMMON STOCK DATA Diluted income from
continuing operations $0.37 $0.73 $1.25 $1.10 $2.44 Diluted net
income 0.37 0.73 1.25 1.09 2.45 Cash dividends declared 0.66 0.66
0.64 1.32 1.28 Common shareholders' equity (at period end) 33.78
34.93 32.74 Average diluted shares (in thousands) 150,819 150,734
156,632 150,774 157,774 KEY RATIOS Return on average common
shareholders' equity from continuing operations 4.26% 8.51% 15.44%
6.38% 15.15% Return on average common shareholders' equity 4.25
8.42 15.44 6.34 15.16 Return on average assets from continuing
operations 0.34 0.69 1.35 0.51 1.34 Return on average assets 0.33
0.68 1.35 0.51 1.34 Average common shareholders' equity as a
percentage of average assets 7.87 8.12 8.75 8.00 8.84 Tier 1 common
capital ratio * 6.72 6.75 7.18 Tier 1 risk-based capital ratio *
7.36 7.40 7.87 Total risk-based capital ratio * 11.11 11.06 11.71
Leverage ratio * 8.55 8.82 9.68 AVERAGE BALANCES Commercial loans
$29,280 $29,178 $28,324 $29,230 $28,042 Real estate construction
loans 4,843 4,811 4,501 4,827 4,376 Commercial mortgage loans
10,374 10,142 9,634 10,258 9,654 Residential mortgage loans 1,906
1,916 1,791 1,911 1,748 Consumer loans 2,549 2,449 2,331 2,499
2,368 Lease financing 1,352 1,347 1,287 1,349 1,280 International
loans 2,063 2,009 1,925 2,036 1,879 Total loans 52,367 51,852
49,793 52,110 49,347 Earning assets 61,088 59,518 54,304 60,303
53,729 Total assets 65,963 63,927 58,118 64,945 57,606
Interest-bearing deposits 33,116 33,440 30,049 33,278 30,232 Total
interest-bearing liabilities 48,483 46,793 40,157 47,638 39,332
Noninterest-bearing deposits 10,648 10,622 11,633 10,635 11,897
Common shareholders' equity 5,193 5,192 5,088 5,193 5,090 NET
INTEREST INCOME Net interest income (fully taxable equivalent
basis)** $443 $477 $510 $920 $1,013 Fully taxable equivalent
adjustment 1 1 1 2 2 Net interest margin** 2.91% 3.22% 3.76% 3.07%
3.79% CREDIT QUALITY Nonaccrual loans $730 $538 $244 Reduced-rate
loans - - - Total nonperforming loans 730 538 244 Foreclosed
property 17 22 15 Total nonperforming assets 747 560 259 Loans past
due 90 days or more and still accruing 112 80 29 Gross loan
charge-offs 118 116 43 $234 $77 Loan recoveries 6 6 13 12 31 Net
loan charge-offs 112 110 30 222 46 Lending-related commitment
charge-offs 1 - - 1 3 Total net credit-related charge-offs 113 110
30 223 49 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
as a percentage of total loans 1.28% 1.16% 1.04% Net loan
charge-offs as a percentage of average total loans 0.86 0.85 0.24
0.85% 0.19% Net credit-related charge-offs as a percentage of
average total loans 0.86 0.85 0.24 0.86 0.20 Nonperforming assets
as a percentage of total loans and foreclosed property 1.44 1.07
0.53 Allowance for loan losses as a percentage of total
nonperforming loans 91 112 207 * June 30, 2008 ratios are estimated
** Second quarter 2008 net interest income declined $30 million due
to a tax-related non-cash lease income charge. Excluding this
charge, the net interest margin would have been 3.10% and 3.17% for
the three- and six-month periods ended June 30, 2008. CONSOLIDATED
BALANCE SHEETS Comerica Incorporated and Subsidiaries June 30,
March 31, Dec. 31, June 30, (in millions, except share data) 2008
2008 2007 2007 ASSETS Cash and due from banks $1,698 $1,929 $1,440
$1,372 Federal funds sold and securities purchased under agreements
to resell 77 45 36 1,217 Other short-term investments 249 356 373
251 Investment securities available-for- sale 8,243 8,563 6,296
4,368 Commercial loans 28,763 29,475 28,223 27,146 Real estate
construction loans 4,684 4,646 4,816 4,513 Commercial mortgage
loans 10,504 10,482 10,048 9,728 Residential mortgage loans 1,879
1,926 1,915 1,839 Consumer loans 2,594 2,448 2,464 2,321 Lease
financing 1,351 1,341 1,351 1,314 International loans 1,976 2,034
1,926 1,904 Total loans 51,751 52,352 50,743 48,765 Less allowance
for loan losses (663) (605) (557) (507) Net loans 51,088 51,747
50,186 48,258 Premises and equipment 674 670 650 616 Customers'
liability on acceptances outstanding 15 28 48 40 Accrued income and
other assets 3,959 3,679 3,302 2,448 Total assets $66,003 $67,017
$62,331 $58,570 LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $11,860 $12,792 $11,920 $12,763 Money
market and NOW deposits 14,506 15,601 15,261 15,212 Savings
deposits 1,391 1,408 1,325 1,397 Customer certificates of deposit
7,746 8,191 8,357 7,567 Institutional certificates of deposit 5,940
7,752 6,147 5,479 Foreign office time deposits 879 1,075 1,268 789
Total interest-bearing deposits 30,462 34,027 32,358 30,444 Total
deposits 42,322 46,819 44,278 43,207 Short-term borrowings 4,075
2,434 2,807 297 Acceptances outstanding 15 28 48 40 Accrued
expenses and other liabilities 1,651 1,679 1,260 1,269 Medium- and
long-term debt 12,858 10,800 8,821 8,748 Total liabilities 60,921
61,760 57,214 53,561 Common stock - $5 par value: Authorized -
325,000,000 shares Issued - 178,735,252 shares at 6/30/08, 3/31/08,
12/31/07 and 6/30/07 894 894 894 894 Capital surplus 576 565 564
539 Accumulated other comprehensive loss (207) (67) (177) (308)
Retained earnings 5,451 5,496 5,497 5,391 Less cost of common stock
in treasury - 28,281,490 shares at 6/30/08, 28,233,996 shares at
3/31/08, 28,747,097 shares at 12/31/07 and 25,725,671 shares at
6/30/07 (1,632) (1,631) (1,661) (1,507) Total shareholders' equity
5,082 5,257 5,117 5,009 Total liabilities and shareholders' equity
$66,003 $67,017 $62,331 $58,570 CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries Three Months Ended Six
Months Ended June 30, June 30, (in millions, except per share data)
2008 2007 2008 2007 INTEREST INCOME Interest and fees on loans $633
$882 $1,403 $1,733 Interest on investment securities 101 46 189 88
Interest on short-term investments 3 5 8 13 Total interest income
737 933 1,600 1,834 INTEREST EXPENSE Interest on deposits 182 284
$435 570 Interest on short-term borrowings 19 24 48 46 Interest on
medium- and long-term debt 94 116 199 207 Total interest expense
295 424 682 823 Net interest income 442 509 918 1,011 Provision for
loan losses 170 36 329 59 Net interest income after provision for
loan losses 272 473 589 952 NONINTEREST INCOME Service charges on
deposit accounts 59 55 117 109 Fiduciary income 51 49 103 98
Commercial lending fees 21 17 38 33 Letter of credit fees 18 15 33
31 Foreign exchange income 12 10 22 19 Brokerage fees 10 10 20 21
Card fees 16 14 30 26 Bank-owned life insurance 8 9 18 19 Net
securities gains 14 - 36 - Net gain on sales of businesses - 2 - 3
Other noninterest income 33 44 62 69 Total noninterest income 242
225 479 428 NONINTEREST EXPENSES Salaries 202 215 402 421 Employee
benefits 48 50 95 96 Total salaries and employee benefits 250 265
497 517 Net occupancy expense 36 33 74 68 Equipment expense 16 15
31 30 Outside processing fee expense 28 24 51 44 Software expense
20 15 39 30 Customer services 3 11 9 25 Litigation and operational
losses (recoveries) 3 (9) (5) (6) Provision for credit losses on
lending-related commitments 7 (2) 11 (4) Other noninterest expenses
60 59 119 114 Total noninterest expenses 423 411 826 818 Income
from continuing operations before income taxes 91 287 242 562
Provision for income taxes 35 91 76 177 Income from continuing
operations 56 196 166 385 Income (loss) from discontinued
operations, net of tax - - (1) 1 NET INCOME $56 $196 $165 $386
Basic earnings per common share: Income from continuing operations
$0.37 $1.28 $1.11 $2.49 Net income 0.37 1.28 1.10 2.49 Diluted
earnings per common share: Income from continuing operations 0.37
1.25 1.10 2.44 Net income 0.37 1.25 1.09 2.45 Cash dividends
declared on common stock 100 98 199 199 Dividends per common share
0.66 0.64 1.32 1.28 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries Second First Fourth Third
Second (in millions, except per Quarter Quarter Quarter Quarter
Quarter share data) 2008 2008 2007 2007 2007 INTEREST INCOME
Interest and fees on loans $633 $770 $873 $895 $882 Interest on
investment securities 101 88 66 52 46 Interest on short-term
investments 3 5 5 5 5 Total interest income 737 863 944 952 933
INTEREST EXPENSE Interest on deposits 182 253 303 294 284 Interest
on short-term borrowings 19 29 30 29 24 Interest on medium- and
long-term debt 94 105 122 126 116 Total interest expense 295 387
455 449 424 Net interest income 442 476 489 503 509 Provision for
loan losses 170 159 108 45 36 Net interest income after provision
for loan losses 272 317 381 458 473 NONINTEREST INCOME Service
charges on deposit accounts 59 58 57 55 55 Fiduciary income 51 52
52 49 49 Commercial lending fees 21 17 23 19 17 Letter of credit
fees 18 15 16 16 15 Foreign exchange income 12 10 10 11 10
Brokerage fees 10 10 11 11 10 Card fees 16 14 14 14 14 Bank-owned
life insurance 8 10 9 8 9 Net securities gains 14 22 3 4 - Net gain
on sales of businesses - - - - 2 Other noninterest income 33 29 35
43 44 Total noninterest income 242 237 230 230 225 NONINTEREST
EXPENSES Salaries 202 200 216 207 215 Employee benefits 48 47 48 49
50 Total salaries and employee benefits 250 247 264 256 265 Net
occupancy expense 36 38 36 34 33 Equipment expense 16 15 15 15 15
Outside processing fee expense 28 23 24 23 24 Software expense 20
19 17 16 15 Customer services 3 6 7 11 11 Litigation and
operational losses (recoveries) 3 (8) 18 6 (9) Provision for credit
losses on lending-related commitments 7 4 3 - (2) Other noninterest
expenses 60 59 66 62 59 Total noninterest expenses 423 403 450 423
411 Income from continuing operations before income taxes 91 151
161 265 287 Provision for income taxes 35 41 44 85 91 Income from
continuing operations 56 110 117 180 196 Income (loss) from
discontinued operations, net of tax - (1) 2 1 - NET INCOME $56 $109
$119 $181 $196 Basic earnings per common share: Income from
continuing operations $0.37 $0.74 $0.78 $1.18 $1.28 Net income 0.37
0.73 0.80 1.20 1.28 Diluted earnings per common share: Income from
continuing operations 0.37 0.73 0.77 1.17 1.25 Net income 0.37 0.73
0.79 1.18 1.25 Cash dividends declared on common stock 100 99 97 97
98 Dividends per common share 0.66 0.66 0.64 0.64 0.64 Second
Quarter 2008 Compared To: First Quarter Second Quarter 2008 2007
(in millions, except per share data) Amount Percent Amount Percent
INTEREST INCOME Interest and fees on loans $(137) (18)% $(249) (28)
Interest on investment securities 13 14 55 N/M Interest on
short-term investments (2) (27) (2) (40) Total interest income
(126) (15) (196) (21) INTEREST EXPENSE Interest on deposits (71)
(28) (102) (36) Interest on short-term borrowings (10) (32) (5)
(20) Interest on medium- and long-term debt (11) (10) (22) (19)
Total interest expense (92) (24) (129) (31) Net interest income
(34) (7) (67) (13) Provision for loan losses 11 7 134 N/M Net
interest income after provision for loan losses (45) (14) (201)
(43) NONINTEREST INCOME Service charges on deposit accounts 1 - 4 5
Fiduciary income (1) (3) 2 3 Commercial lending fees 4 30 4 28
Letter of credit fees 3 19 3 18 Foreign exchange income 2 20 2 22
Brokerage fees - 1 - 2 Card fees 2 14 2 19 Bank-owned life
insurance (2) (12) (1) (8) Net securities gains (8) N/M 14 N/M Net
gain on sales of businesses - N/M (2) N/M Other noninterest income
4 9 (11) (26) Total noninterest income 5 2 17 7 NONINTEREST
EXPENSES Salaries 2 1 (13) (6) Employee benefits 1 - (2) (4) Total
salaries and employee benefits 3 1 (15) (6) Net occupancy expense
(2) (4) 3 11 Equipment expense 1 3 1 3 Outside processing fee
expense 5 21 4 17 Software expense 1 4 5 37 Customer services (3)
(52) (8) (75) Litigation and operational losses (recoveries) 11 N/M
12 N/M Provision for credit losses on lending-related commitments 3
68 9 N/M Other noninterest expenses 1 1 1 - Total noninterest
expenses 20 5 12 3 Income from continuing operations before income
taxes (60) (40) (196) (68) Provision for income taxes (6) (13) (56)
(61) Income from continuing operations (54) (50) (140) (72) Income
(loss) from discontinued operations, net of tax 1 N/M - N/M NET
INCOME $(53) (49)% $(140) (72) Basic earnings per common share:
Income from continuing operations $(0.37) (50)% $(0.91) (71) Net
income (0.36) (49) (0.91) (71) Diluted earnings per common share:
Income from continuing operations (0.36) (49) (0.88) (70) Net
income (0.36) (49) (0.88) (70) Cash dividends declared on common
stock 1 - 2 1 Dividends per common share - - 0.02 3 N/M - Not
meaningful ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES Comerica
Incorporated and Subsidiaries 2008 2007 (in millions) 2nd Qtr 1st
Qtr 4th Qtr 3rd Qtr 2nd Qtr Balance at beginning of period $605
$557 $512 $507 $500 Loan charge-offs: Commercial 36 33 27 30 19
Real estate construction: Commercial Real Estate business line 57
52 24 6 6 Other business lines - 1 1 2 2 Total real estate
construction 57 53 25 8 8 Commercial mortgage: Commercial Real
Estate business line 14 20 7 2 3 Other business lines 7 2 9 4 10
Total commercial mortgage 21 22 16 6 13 Residential mortgage 1 - -
- - Consumer 3 7 4 3 3 Lease financing - - - - - International - 1
- - - Total loan charge-offs 118 116 72 47 43 Recoveries on loans
previously charged-off: Commercial 5 3 7 5 5 Real estate
construction - 1 - - - Commercial mortgage 1 1 1 1 2 Residential
mortgage - - - - - Consumer - 1 1 1 1 Lease financing - - - - -
International - - - - 5 Total recoveries 6 6 9 7 13 Net loan
charge-offs 112 110 63 40 30 Provision for loan losses 170 159 108
45 36 Foreign currency translation adjustment - (1) - - 1 Balance
at end of period $663 $605 $557 $512 $507 Allowance for loan losses
as a percentage of total loans 1.28 1.16 1.10 1.03 1.04 Net loan
charge-offs as a percentage of average total loans 0.86 0.85 0.50
0.32 0.24 Net credit-related charge-offs as a percentage of average
total loans 0.86 0.85 0.50 0.32 0.24 ANALYSIS OF THE ALLOWANCE FOR
CREDIT LOSSES ON LENDING-RELATED COMMITMENTS Comerica Incorporated
and Subsidiaries 2008 2007 (in millions) 2nd Qtr 1st Qtr 4th Qtr
3rd Qtr 2nd Qtr Balance at beginning of period $25 $21 $19 $19 $21
Less: Charge-offs on lending-related commitments (1) 1 - 1 - - Add:
Provision for credit losses on lending-related commitments 7 4 3 -
(2) Balance at end of period $31 $25 $21 $19 $19 Unfunded
lending-related commitments sold $2 $3 $22 $- $- (1) Charge-offs
result from the sale of unfunded lending-related commitments.
NONPERFORMING ASSETS Comerica Incorporated and Subsidiaries 2008
2007 (in millions) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr SUMMARY
OF NONPERFORMING ASSETS AND PAST DUE LOANS Nonaccrual loans:
Commercial $155 $87 $75 $64 $88 Real estate construction:
Commercial Real Estate business line 322 271 161 55 37 Other
business lines 4 4 6 4 7 Total real estate construction 326 275 167
59 44 Commercial mortgage: Commercial Real Estate business line 143
105 66 63 20 Other business lines 95 64 75 77 84 Total commercial
mortgage 238 169 141 140 104 Residential mortgage 4 1 1 1 1
Consumer 4 3 3 4 3 Lease financing - - - - - International 3 3 4 4
4 Total nonaccrual loans 730 538 391 272 244 Reduced-rate loans - -
13 - - Total nonperforming loans 730 538 404 272 244 Foreclosed
property 17 22 19 19 15 Total nonperforming assets $747 $560 $423
$291 $259 Nonperforming loans as a percentage of total loans 1.41 %
1.03 % 0.80 % 0.55 % 0.50 % Nonperforming assets as a percentage of
total loans and foreclosed property 1.44 1.07 0.83 0.59 0.53
Allowance for loan losses as a percentage of total nonperforming
loans 91 112 138 188 207 Loans past due 90 days or more and still
accruing $112 $80 $54 $56 $29 ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period $538 $391 $272 $244 $218
Loans transferred to nonaccrual (1) 304 281 185 94 107 Nonaccrual
business loan gross charge-offs (2) (113) (108) (68) (44) (40)
Loans transferred to accrual status (1) - - - (5) (8) Nonaccrual
business loans sold (3) - (15) - (11) - Payments/Other (4) 1 (11) 2
(6) (33) Nonaccrual loans at end of period $730 $538 $391 $272 $244
(1) Based on an analysis of nonaccrual loans with book balances
greater than $2 million. (2) Analysis of gross loan charge-offs:
Nonaccrual business loans $113 $108 $68 $44 $40 Performing watch
list loans 1 1 - - - Consumer and residential mortgage loans 4 7 4
3 3 Total gross loan charge-offs $118 $116 $72 $47 $43 (3) Analysis
of loans sold: Nonaccrual business loans $- $15 $- $11 $-
Performing watch list loans 7 6 13 - - Total loans sold $7 $21 $13
$11 $- (4) Includes net changes related to nonaccrual loans with
less than $2 million, other than business loan gross charge-offs
and nonaccrual loans sold, and payments on nonaccrual loans with
book balances greater than $2 million. ANALYSIS OF NET INTEREST
INCOME (FTE) Comerica Incorporated and Subsidiaries Six Months
Ended June 30, 2008 June 30, 2007 (dollar amounts in Average
Average Average Average millions) Balance Interest Rate Balance
Interest Rate Commercial loans (1)(2) $29,230 $786 5.41% $28,042
$1,016 7.31% Real estate construction loans 4,827 130 5.40 4,376
186 8.55 Commercial mortgage loans 10,258 300 5.88 9,654 353 7.37
Residential mortgage loans 1,911 58 6.02 1,748 54 6.13 Consumer
loans 2,499 69 5.53 2,368 84 7.15 Lease financing (3) 1,349 (8) N/M
1,280 21 3.26 International loans 2,036 55 5.42 1,879 66 7.12
Business loan swap income (expense) - 15 - - (45) - Total loans (2)
52,110 1,405 5.42 49,347 1,735 7.08 Investment securities
available-for-sale 7,759 189 4.91 3,916 88 4.40 Federal funds sold
and securities purchased under agreements to resell 115 1 2.56 235
6 5.38 Other short-term investments 319 7 4.08 231 7 6.00 Total
earning assets 60,303 1,602 5.34 53,729 1,836 6.87 Cash and due
from banks 1,229 1,410 Allowance for loan losses (630) (509)
Accrued income and other assets 4,043 2,976 Total assets $64,945
$57,606 Money market and NOW deposits (1) $15,063 125 1.67 $14,788
225 3.06 Savings deposits 1,382 4 0.54 1,400 6 0.88 Customer
certificates of deposit 8,161 148 3.64 7,404 163 4.45 Institutional
certificates of deposit 7,482 139 3.73 5,652 152 5.43 Foreign
office time deposits 1,190 19 3.29 988 24 4.90 Total
interest-bearing deposits 33,278 435 2.63 30,232 570 3.80
Short-term borrowings 3,411 48 2.82 1,736 46 5.31 Medium- and
long-term debt 10,949 199 3.66 7,364 207 5.68 Total
interest-bearing sources 47,638 682 2.88 39,332 823 4.22
Noninterest-bearing deposits (1) 10,635 11,897 Accrued expenses and
other liabilities 1,479 1,287 Shareholders' equity 5,193 5,090
Total liabilities and shareholders' equity $64,945 $57,606 Net
interest income/rate spread (FTE) $920 2.46 $1,013 2.65 FTE
adjustment $2 $2 Impact of net noninterest-bearing sources of funds
0.61 1.14 Net interest margin (as a percentage of average earning
assets) (FTE) (2) (3) 3.07% 3.79% N/M - Not meaningful (1) FSD
balances included above: Loans (primarily low-rate) $635 $4 1.23%
$1,575 $5 0.60% Interest-bearing deposits 1,044 12 2.31 1,238 24
3.90 Noninterest-bearing deposits 1,858 3,363 (2) Impact of FSD
loans (primarily low-rate) on the following: Commercial loans
(0.10)% (0.40)% Total loans (0.05) (0.22) Net interest margin (FTE)
(assuming loans were funded by noninterest-bearing deposits) (0.02)
(0.11) (3) 2008 net interest income declined $30 million and the
net interest margin declined by 10 basis points due to a
tax-related non-cash lease income charge. Excluding this charge,
the net interest margin would have been 3.17%. ANALYSIS OF NET
INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Three
Months Ended June 30, 2008 March 31, 2008 (dollar amounts in
Average Average Average Average millions) Balance Interest Rate
Balance Interest Rate Commercial loans (1) (2) $29,280 $357 4.90%
$29,178 $429 5.93% Real estate construction loans 4,843 59 4.89
4,811 71 5.92 Commercial mortgage loans 10,374 141 5.47 10,142 159
6.29 Residential mortgage loans 1,906 29 6.03 1,916 29 6.01
Consumer loans 2,549 32 5.06 2,449 37 6.02 Lease financing (3)
1,352 (19) N/M 1,347 11 3.22 International loans 2,063 25 4.86
2,009 30 6.01 Business loan swap income (expense) - 10 - - 5 -
Total loans (2) 52,367 634 4.87 51,852 771 5.98 Investment
securities available-for-sale 8,296 101 4.89 7,222 88 4.93 Federal
funds sold and securities purchased under agreements to resell 150
1 2.17 80 1 3.28 Other short-term investments 275 2 3.73 364 4 4.34
Total earning assets 61,088 738 4.86 59,518 864 5.84 Cash and due
from banks 1,217 1,240 Allowance for loan losses (664) (596)
Accrued income and other assets 4,322 3,765 Total assets $65,963
$63,927 Money market and NOW deposits (1) $14,784 46 1.26 $15,341
79 2.06 Savings deposits 1,405 2 0.45 1,359 2 0.64 Customer
certificates of deposit 8,037 64 3.20 8,286 84 4.07 Institutional
certificates of deposit 7,707 61 3.21 7,257 77 4.28 Foreign office
time deposits 1,183 8 2.77 1,197 11 3.81 Total interest- bearing
deposits 33,116 181 2.20 33,440 253 3.05 Short-term borrowings
3,326 19 2.33 3,497 29 3.28 Medium- and long-term debt 12,041 95
3.15 9,856 105 4.27 Total interest- bearing sources 48,483 295 2.45
46,793 387 3.32 Noninterest-bearing deposits (1) 10,648 10,622
Accrued expenses and other liabilities 1,639 1,320 Shareholders'
equity 5,193 5,192 Total liabilities and shareholders' equity
$65,963 $63,927 Net interest income/rate spread (FTE) $443 2.41
$477 2.52 FTE adjustment $1 $1 Impact of net noninterest- bearing
sources of funds 0.50 0.70 Net interest margin (as a percentage of
average earning assets) (FTE) (2) (3) 2.91% 3.22% N/M - Not
meaningful (1) FSD balances included above: Loans (primarily low-
rate) $469 $2 1.42% $802 $2 1.12% Interest-bearing deposits 994 4
1.81 1,094 8 2.77 Noninterest-bearing deposits 1,823 1,894 (2)
Impact of FSD loans (primarily low-rate) on the following:
Commercial loans (0.06)% (0.13)% Total loans (0.03) (0.08) Net
interest margin (FTE) (assuming loans were funded by
noninterest-bearing deposits) (0.01) (0.03) (3) Second quarter 2008
net interest income declined $30 million and the net interest
margin declined by 19 basis points due to a tax-related non-cash
lease income charge. Excluding this charge, the net interest margin
would have been 3.10%. Three Months Ended June 30, 2007 Average
Average (dollar amounts in millions) Balance Interest Rate
Commercial loans (1) (2) $28,324 $517 7.31 % Real estate
construction loans 4,501 95 8.45 Commercial mortgage loans 9,634
178 7.39 Residential mortgage loans 1,791 28 6.15 Consumer loans
2,331 41 7.15 Lease financing (3) 1,287 11 3.33 International loans
1,925 34 7.17 Business loan swap income (expense) - (21) - Total
loans (2) 49,793 883 7.11 Investment securities available-for- sale
4,085 46 4.46 Federal funds sold and securities purchased under
agreements to resell 195 2 5.37 Other short-term investments 231 3
5.21 Total earning assets 54,304 934 6.89 Cash and due from banks
1,341 Allowance for loan losses (516) Accrued income and other
assets 2,989 Total assets $58,118 Money market and NOW deposits (1)
$14,825 114 3.08 Savings deposits 1,419 3 0.91 Customer
certificates of deposit 7,463 83 4.46 Institutional certificates of
deposit 5,484 74 5.43 Foreign office time deposits 858 10 4.81
Total interest-bearing deposits 30,049 284 3.80 Short-term
borrowings 1,816 24 5.30 Medium- and long-term debt 8,292 116 5.63
Total interest-bearing sources 40,157 424 4.24 Noninterest-bearing
deposits (1) 11,633 Accrued expenses and other liabilities 1,240
Shareholders' equity 5,088 Total liabilities and shareholders'
equity $58,118 Net interest income/rate spread (FTE) $510 2.65 FTE
adjustment $1 Impact of net noninterest-bearing sources of funds
1.11 Net interest margin (as a percentage of average earning
assets) (FTE) (2) (3) 3.76% N/M - Not meaningful (1) FSD balances
included above: Loans (primarily low-rate) $1,580 $2 0.52%
Interest-bearing deposits 1,228 12 3.88 Noninterest-bearing
deposits 3,277 (2) Impact of FSD loans (primarily low-rate) on the
following: Commercial loans (0.40)% Total loans (0.21) Net interest
margin (FTE) (assuming loans were funded by noninterest-bearing
deposits) (0.10) (3) Second quarter 2008 net interest income
declined $30 million and the net interest margin declined by 19
basis points due to a tax-related non-cash lease income charge.
Excluding this charge, the net interest margin would have been
3.10%. CONSOLIDATED STATISTICAL DATA Comerica Incorporated and
Subsidiaries (in millions, except June 30, March 31, Dec. 31, Sept.
30, June 30, per share data) 2008 2008 2007 2007 2007 Commercial
loans: Floor plan $2,645 $2,913 $2,878 $2,601 $3,012 Other 26,118
26,562 25,345 24,791 24,134 Total commercial loans 28,763 29,475
28,223 27,392 27,146 Real estate construction loans: Commercial
Real Estate business line 4,013 3,990 4,089 4,007 3,777 Other
business lines 671 656 727 752 736 Total real estate construction
loans 4,684 4,646 4,816 4,759 4,513 Commercial mortgage loans:
Commercial Real Estate business line 1,620 1,541 1,377 1,467 1,344
Other business lines 8,884 8,941 8,671 8,527 8,384 Total commercial
mortgage loans 10,504 10,482 10,048 9,994 9,728 Residential
mortgage loans 1,879 1,926 1,915 1,892 1,839 Consumer loans: Home
equity 1,649 1,619 1,616 1,582 1,585 Other consumer 945 829 848 815
736 Total consumer loans 2,594 2,448 2,464 2,397 2,321 Lease
financing 1,351 1,341 1,351 1,319 1,314 International loans 1,976
2,034 1,926 1,843 1,904 Total loans $51,751 $52,352 $50,743 $49,596
$48,765 Goodwill $150 $150 $150 $150 $150 Loan servicing rights 12
12 12 13 13 Tier 1 common capital ratio* 6.72% 6.75% 6.85% 7.01%
7.18% Tier 1 risk-based capital ratio* 7.36 7.40 7.51 7.68 7.87
Total risk-based capital ratio * 11.11 11.06 11.20 11.44 11.71
Leverage ratio* 8.55 8.82 9.26 9.60 9.68 Book value per share
$33.78 $34.93 $34.12 $33.56 $32.74 Market value per share for the
quarter: High 40.62 45.19 54.88 61.34 63.89 Low 25.61 34.51 39.62
50.26 58.18 Close 25.63 35.08 43.53 51.28 59.47 Quarterly ratios:
Return on average common shareholders' equity from continuing
operations 4.26% 8.51% 9.20% 14.27% 15.44% Return on average common
shareholders' equity 4.25 8.42 9.35 14.41 15.44 Return on average
assets from continuing operations 0.34 0.69 0.77 1.22 1.35 Return
on average assets 0.33 0.68 0.79 1.23 1.35 Efficiency ratio 63.02
58.25 62.76 58.00 55.97 Number of banking centers 416 420 417 403
402 Number of employees - full time equivalent 10,530 10,643 10,782
10,683 10,687 * June 30, 2008 ratios are estimated PARENT COMPANY
ONLY BALANCE SHEETS Comerica Incorporated (in millions, except June
30, Dec. 31, June 30, share data) 2008 2007 2007 ASSETS Cash and
due from subsidiary bank $4 $1 $9 Short-term investments with
subsidiary bank 179 224 353 Other short-term investments 105 102
103 Investment in subsidiaries, principally banks 5,818 5,840 5,617
Premises and equipment 4 4 3 Other assets 169 166 147 Total assets
$6,279 $6,337 $6,232 LIABILITIES AND SHAREHOLDERS' EQUITY Medium-
and long-term debt $967 $968 $946 Other liabilities 230 252 277
Total liabilities 1,197 1,220 1,223 Common stock - $5 par value:
Authorized - 325,000,000 shares Issued - 178,735,252 shares at
6/30/08, 12/31/07, and 6/30/07 894 894 894 Capital surplus 576 564
539 Accumulated other comprehensive loss (207) (177) (308) Retained
earnings 5,451 5,497 5,391 Less cost of common stock in treasury -
28,281,490 shares at 6/30/08, 28,747,097 shares at 12/31/07 and
25,725,671 shares at 6/30/07 (1,632) (1,661) (1,507) Total
shareholders' equity 5,082 5,117 5,009 Total liabilities and
shareholders' equity $6,279 $6,337 $6,232 CONSOLIDATED STATEMENTS
OF CHANGES IN SHAREHOLDERS' EQUITY Comerica Incorporated and
Subsidiaries Accumulated Common Stock Other Total Compre- Treas-
Share- (in millions, except In Capital hensive Retained ury
holders' per share data) Shares Amount Surplus Loss Earnings Stock
Equity BALANCE AT JANUARY 1, 2007 157.6 $894 $520 $(324) $5,230
$(1,219) $5,101 Net income - - - - 386 - 386 Other comprehensive
income, net of tax - - - 16 - - 16 Total comprehensive income 402
Cash dividends declared on common stock ($1.28 per share) - - - -
(199) - (199) Purchase of common stock (6.9) - - - - (425) (425)
Net issuance of common stock under employee stock plans 2.3 - (17)
- (26) 138 95 Recognition of share- based compensation expense - -
35 - - - 35 Employee deferred compensation obligations - - 1 - -
(1) - BALANCE AT JUNE 30, 2007 153.0 $894 $539 $(308) $5,391
$(1,507) $5,009 BALANCE AT JANUARY 1, 2008 150.0 $894 $564 $(177)
$5,497 $(1,661) $5,117 Net income - - - - 165 - 165 Other
comprehensive income, net of tax - - - (30) - - (30) Total
comprehensive income - - - - - - 135 Cash dividends declared on
common stock ($1.32 per share) - - - - (199) - (199) Net issuance
of common stock under employee stock plans 0.5 - (19) - (12) 29 (2)
Recognition of share- based compensation expense - - 31 - - - 31
BALANCE AT JUNE 30, 2008 150.5 $894 $576 $(207) $5,451 $(1,632)
$5,082 BUSINESS SEGMENT FINANCIAL RESULTS Comerica Incorporated and
Subsidiaries Wealth & (dollar amounts in millions) Business
Retail Institutional Three Months Ended June 30, 2008 Bank Bank
Management Earnings summary: Net interest income (expense) (FTE)
$296 $146 $37 Provision for loan losses 123 29 5 Noninterest income
92 54 74 Noninterest expenses 185 161 83 Provision (benefit) for
income taxes (FTE) 23 3 9 Loss from discontinued operations, net of
tax - - - Net income (loss) $57 $7 $14 Net credit-related
charge-offs $96 $14 $3 Selected average balances: Assets $42,335
$7,100 $4,646 Loans 41,510 6,348 4,502 Deposits 15,384 17,043 2,493
Liabilities 16,156 17,041 2,501 Attributed equity 3,277 657 333
Statistical data: Return on average assets (1) 0.53 % 0.15 % 1.19 %
Return on average attributed equity 6.86 4.13 16.57 Net interest
margin (2) 2.85 3.44 3.28 Efficiency ratio 49.26 80.61 75.20 Three
Months Ended June 30, 2008 Finance Other Total Earnings summary:
Net interest income (expense) (FTE) $(28) $(8) $443 Provision for
loan losses - 13 170 Noninterest income 18 4 242 Noninterest
expenses 2 (8) 423 Provision (benefit) for income taxes (FTE) (7) 8
36 Loss from discontinued operations, net of tax - - - Net income
(loss) $(5) $(17) $56 Net credit-related charge-offs $- $- $113
Selected average balances: Assets $10,333 $1,549 $65,963 Loans 5 2
52,367 Deposits 8,409 435 43,764 Liabilities 24,334 738 60,770
Attributed equity 949 (23) 5,193 Statistical data: Return on
average assets (1) N/M N/M 0.33 % Return on average attributed
equity N/M N/M 4.25 Net interest margin (2) N/M N/M 2.91 Efficiency
ratio N/M N/M 63.02 Wealth & Business Retail Institutional
Three Months Ended March 31, 2008 Bank Bank Management Earnings
summary: Net interest income (expense) (FTE) $329 $148 $36
Provision for loan losses 147 17 - Noninterest income 74 74 75
Noninterest expenses 176 143 79 Provision (benefit) for income
taxes (FTE) 18 22 12 Income from discontinued operations, net of
tax - - - Net income (loss) $62 $40 $20 Net credit-related
charge-offs $99 $10 $1 Selected average balances: Assets $42,129
$7,144 $4,468 Loans 41,219 6,276 4,315 Deposits 15,878 17,162 2,637
Liabilities 16,687 17,170 2,646 Attributed equity 3,168 725 331
Statistical data: Return on average assets (1) 0.59 % 0.89 % 1.79 %
Return on average attributed equity 7.83 22.00 24.10 Net interest
margin (2) 3.20 3.47 3.33 Efficiency ratio 44.05 70.99 70.95 Three
Months Ended March 31, 2008 Finance Other Total Earnings summary:
Net interest income (expense) (FTE) $(26) $(10) $477 Provision for
loan losses - (5) 159 Noninterest income 18 (4) 237 Noninterest
expenses 3 2 403 Provision (benefit) for income taxes (FTE) (8) (2)
42 Income from discontinued operations, net of tax - (1) (1) Net
income (loss) $(3) $(10) $109 Net credit-related charge-offs $- $-
$110 Selected average balances: Assets $8,644 $1,542 $63,927 Loans
5 37 51,852 Deposits 8,142 243 44,062 Liabilities 21,636 596 58,735
Attributed equity 902 66 5,192 Statistical data: Return on average
assets (1) N/M N/M 0.68 % Return on average attributed equity N/M
N/M 8.42 Net interest margin (2) N/M N/M 3.22 Efficiency ratio N/M
N/M 58.25 Wealth & Business Retail Institutional Three Months
Ended June 30, 2007 Bank Bank Management Earnings summary: Net
interest income (expense) (FTE) $344 $171 $36 Provision for loan
losses 32 4 2 Noninterest income 68 57 70 Noninterest expenses 176
160 79 Provision (benefit) for income taxes (FTE) 64 22 9 Income
from discontinued operations, net of tax - - - Net income (loss)
$140 $42 $16 Net credit-related charge-offs $24 $6 $- Selected
average balances: Assets $40,847 $6,828 $4,009 Loans 39,824 6,100
3,860 Deposits 16,432 17,191 2,295 Liabilities 17,262 17,204 2,303
Attributed equity 2,914 846 325 Statistical data: Return on average
assets (1) 1.37 % 0.94 % 1.59 % Return on average attributed equity
19.23 20.09 19.65 Net interest margin (2) 3.45 4.00 3.74 Efficiency
ratio 42.80 69.93 74.65 Three Months Ended June 30, 2007 Finance
Other Total Earnings summary: Net interest income (expense) (FTE)
$(35) $(6) $510 Provision for loan losses - (2) 36 Noninterest
income 16 14 225 Noninterest expenses 3 (7) 411 Provision (benefit)
for income taxes (FTE) (11) 8 92 Income from discontinued
operations, net of tax - - - Net income (loss) $(11) $9 $196 Net
credit-related charge-offs $- $- $30 Selected average balances:
Assets $5,297 $1,137 $58,118 Loans 2 7 49,793 Deposits 5,840 (76)
41,682 Liabilities 16,033 228 53,030 Attributed equity 595 408
5,088 Statistical data: Return on average assets (1) N/M N/M 1.35 %
Return on average attributed equity N/M N/M 15.44 Net interest
margin (2) N/M N/M 3.76 Efficiency ratio N/M N/M 55.97 (1) Return
on average assets is calculated based on the greater of average
assets or average liabilities and attributed equity. (2) 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 Comerica Incorporated and Subsidiaries (dollar amounts in
millions) Three Months Ended June 30, 2008 Midwest Western Texas
Florida Earnings summary: Net interest income (expense) (FTE) $172
$171 $74 $12 Provision for loan losses 24 113 6 7 Noninterest
income 136 34 22 4 Noninterest expenses 205 115 63 11 Provision
(benefit) for income taxes (FTE) 27 (3) 10 (1) Income from
discontinued operations, net of tax - - - - Net income (loss) $52
$(20) $17 $(1) Net credit-related charge-offs $42 $59 $3 $8
Selected average balances: Assets $19,891 $17,241 $8,063 $1,854
Loans 19,255 16,918 7,795 1,851 Deposits 16,056 12,345 4,061 306
Liabilities 16,750 12,326 4,076 302 Attributed equity 1,649 1,336
614 118 Statistical data: Return on average assets (1) 1.05 %
(0.46)% 0.81 % (0.37)% Return on average attributed equity 12.67
(5.97) 10.66 (5.84) Net interest margin (2) 3.58 4.04 3.78 2.50
Efficiency ratio 69.48 56.09 65.55 72.21 Finance Other Inter- &
Other Three Months Ended June 30, 2008 Markets national Businesses
Total Earnings summary: Net interest income (expense) (FTE) $36 $14
$(36) $443 Provision for loan losses 7 - 13 170 Noninterest income
16 8 22 242 Noninterest expenses 25 10 (6) 423 Provision (benefit)
for income taxes (FTE) (3) 5 1 36 Income from discontinued
operations, net of tax - - - - Net income (loss) $23 $7 $(22) $56
Net credit-related charge-offs $1 $- $- $113 Selected average
balances: Assets $4,589 $2,443 $11,882 $65,963 Loans 4,212 2,329 7
52,367 Deposits 1,375 777 8,844 43,764 Liabilities 1,466 778 25,072
60,770 Attributed equity 389 161 926 5,193 Statistical data: Return
on average assets (1) 1.96 % 1.21 % N/M 0.33 % Return on average
attributed equity 23.17 18.31 N/M 4.25 Net interest margin (2) 3.41
2.42 N/M 2.91 Efficiency ratio 48.61 45.61 N/M 63.02 Three Months
Ended March 31, 2008 Midwest Western Texas Florida Earnings
summary: Net interest income (expense) (FTE) $205 $172 $74 $11
Provision for loan losses 20 114 8 12 Noninterest income 136 33 24
5 Noninterest expenses 186 108 58 10 Provision (benefit) for income
taxes (FTE) 48 (7) 12 (2) Income from discontinued operations, net
of tax - - - - Net income (loss) $87 $(10) $20 $(4) Net
credit-related charge-offs $28 $66 $5 $10 Selected average
balances: Assets $19,656 $17,263 $7,932 $1,891 Loans 19,030 16,882
7,642 1,877 Deposits 16,127 12,848 4,005 362 Liabilities 16,814
12,849 4,022 358 Attributed equity 1,663 1,270 619 125 Statistical
data: Return on average assets (1) 1.76 % (0.23)% 1.00 % (0.76)%
Return on average attributed equity 20.83 (3.19) 12.88 (11.57) Net
interest margin (2) 4.30 4.07 3.83 2.55 Efficiency ratio 57.48
52.99 61.28 61.24 Finance Other Inter- & Other Three Months
Ended March 31, 2008 Markets national Businesses Total Earnings
summary: Net interest income (expense) (FTE) $36 $15 $(36) $477
Provision for loan losses 13 (3) (5) 159 Noninterest income 17 8 14
237 Noninterest expenses 26 10 5 403 Provision (benefit) for income
taxes (FTE) (5) 6 (10) 42 Income from discontinued operations, net
of tax - - (1) (1) Net income (loss) $19 $10 $(13) $109 Net
credit-related charge-offs $- $1 $- $110 Selected average balances:
Assets $4,633 $2,366 $10,186 $63,927 Loans 4,140 2,239 42 51,852
Deposits 1,534 801 8,385 44,062 Liabilities 1,643 817 22,232 58,735
Attributed equity 384 163 968 5,192 Statistical data: Return on
average assets (1) 1.61 % 1.76 % N/M 0.68 % Return on average
attributed equity 19.47 25.50 N/M 8.42 Net interest margin (2) 3.42
2.69 N/M 3.22 Efficiency ratio 50.41 44.09 N/M 58.25 Three Months
Ended June 30, 2007 Midwest Western Texas Florida Earnings summary:
Net interest income (expense) (FTE) $227 $188 $71 $11 Provision for
loan losses 25 5 3 2 Noninterest income 117 32 20 3 Noninterest
expenses 203 113 56 9 Provision (benefit) for income taxes (FTE) 40
38 11 1 Income from discontinued operations, net of tax - - - - Net
income (loss) $76 $64 $21 $2 Net credit-related charge-offs
(recoveries) $29 $4 $1 $1 Selected average balances: Assets $19,213
$17,257 $6,844 $1,666 Loans 18,656 16,715 6,570 1,649 Deposits
15,651 13,595 3,836 290 Liabilities 16,309 13,633 3,852 293
Attributed equity 1,713 1,206 594 90 Statistical data: Return on
average assets (1) 1.58 % 1.51 % 1.20 % 0.50 % Return on average
attributed equity 17.78 21.59 13.87 9.33 Net interest margin (2)
4.85 4.53 4.32 2.64 Efficiency ratio 59.08 51.14 61.92 63.90
Finance Other Inter- & Other Three Months Ended June 30, 2007
Markets national Businesses Total Earnings summary: Net interest
income (expense) (FTE) $35 $19 $(41) $510 Provision for loan losses
9 (6) (2) 36 Noninterest income 14 9 30 225 Noninterest expenses 23
11 (4) 411 Provision (benefit) for income taxes (FTE) (3) 8 (3) 92
Income from discontinued operations, net of tax - - - - Net income
(loss) $20 $15 $(2) $196 Net credit-related charge-offs
(recoveries) $- $(5) $- $30 Selected average balances: Assets
$4,430 $2,274 $6,434 $58,118 Loans 4,049 2,145 9 49,793 Deposits
1,299 1,247 5,764 41,682 Liabilities 1,416 1,266 16,261 53,030
Attributed equity 327 155 1,003 5,088 Statistical data: Return on
average assets (1) 1.79 % 2.61 % N/M 1.35 % Return on average
attributed equity 24.18 38.38 N/M 15.44 Net interest margin (2)
3.48 3.35 N/M 3.76 Efficiency ratio 46.16 40.12 N/M 55.97 (1)
Return on average assets is calculated based on the greater of
average assets or average liabilities and attributed equity. (2)
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 DATASOURCE: Comerica
Incorporated
Copyright