Comerica Incorporated Third Quarter 2012 Financial ReviewOctober 17, 2012 Safe Harbor Statement 2 Any statements in this presentation that are not historical facts are forward-looking statements as defined in the Private Securities Litigation ReformAct of 1995. Words such as “anticipates,” “believes,” “contemplates,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,”“forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “opportunity,” “initiative,” “outcome,”“continue,” “remain,” “maintain,” “on course,” “trend,” “objective,” “looks forward” and variations of such words and similar expressions, or future orconditional 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'smanagement based on information known to Comerica's management as of the date of this presentation and do not purport to speak as of any otherdate. 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 ofprofitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica'smanagement as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize orshould underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that couldcause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies,including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; changes in Comerica'scredit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning creditquality; the acquisition of Sterling Bancshares, Inc., or any future acquisitions; the effects of more stringent capital or liquidity requirements; declinesor other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and business models,including the implementation of revenue enhancements and efficiency improvements; Comerica's ability to utilize technology to efficiently andeffectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information securityincidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricingpressures among financial institutions within Comerica's markets; changes in customer behavior; management's ability to maintain and expandcustomer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings; the effectivenessof methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but notlimited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica'saccounting policies. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results todiffer from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. RiskFactors” beginning on page 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2011. Forward-looking statementsspeak 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 thispresentation or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the PrivateSecurities Litigation Reform Act of 1995.
Financial Results $ in millions, except per share data. 1Calculated using net income attributable to common shares. 2Estimated. 3Q12 2Q12 3Q11 Diluted income per common share1 $0.61 $0.73 $0.51 Net interest income $427 $435 $423 Purchase loan accretion 15 18 27 Noninterest income 197 211 201 Provision for credit losses 22 19 35 Noninterest expenses 449 433 463 Restructuring expenses 25 8 33 Net income 117 144 98 Total loans (average) $43,597 $43,228 $40,098 Total deposits (average) 49,857 48,679 45,098 Tier 1 capital ratio 10.32%2 10.38% 10.65% Average diluted shares (millions) 191 194 192 3 Third Quarter 2012 Results $ in millions. 1 Percentage is calculated based on average total loans. 2Estimated; See Supplemental Financial Data slides for reconciliation of non-GAAP financial measures 3Q12 vs. 2Q12 Chg $ Chg % Total Loans (average) $369 1% Driven by Commercial Loans Commercial Loans 717 3 Primarily driven by Mortgage Banker, TLS, & Energy Total Deposits (average) 1,178 2 All-time high Noninterest-bearing deposits 1,341 7 Broad-based growth by market & business line Net Interest Income (8) (2) See slide 9 Noninterest Income (14) (7) Primarily due to non-customer driven fees Noninterest Expense 16 4 Down excluding $17mm increase in restructuring Net Income (27) (18) Net credit-related charge-offs (2) (4) Remain low with NCO ratio of 0.39%1 Provision for credit losses 3 14 Tier 1 common capital2 10.32% Repurchased under share program 2.9MM 4
Well Positioned in Growth Markets 5 Includes the addition of Sterling Bancshares loans and deposits added on July 28, 2011 18.5 13.0 8.9 19.1 13.7 10.3 19.4 13.9 10.2 19.2 14.4 10.2 19.6 15.2 9.9 Midwest Western Texas Average Deposit Balances ($ in B) 4Q1 1 1Q1 2 2Q1 2 3Q1 2 3Q1 1 13.9 11.9 8.1 13.7 12.0 9.0 13.8 12.4 9.3 13.8 12.9 9.5 13.5 13.2 9.6 Midwest Western Texas Average Loan Balances ($ in B) -3% 4Q1 1 1Q1 2 2Q1 2 3Q1 2 3Q1 1 4Q1 1 2Q1 2 3Q1 2 3Q1 1 1Q1 2 4Q1 1 1Q1 2 3Q1 2 3Q1 1 2Q1 2 4Q1 1 1Q1 2 3Q1 2 3Q1 1 2Q1 2 4Q1 1 1Q1 2 3Q1 2 3Q1 1 2Q1 2 0.9 1.5 1.5 1.5 2.0 2.0 2.3 22.1 23.5 24.7 26.0 26.7 27.0 27.5 3Q11 4Q11 1Q12 2Q12 3Q12 2Q12 3Q12 Mortgage Banker 40.1 41.5 42.3 43.2 43.6 44.0 44.2 4.01 3.98 3.92 3.79 3.66 3Q11 4Q11 1Q12 2Q12 3Q12 2Q12 3Q12 Sterling Loan Yields Commercial Loan Growth ($B) Average Loans Grew 1% with Commercial Loans up 3% Total Loan Growth ($B) 6 Includes Sterling Bancshares loans from July 28, 2011. 3Q12 compared to 2Q12 Period-endAverage Balances Average Balances Period-endAverage Balances Line utilization was 48.2%, relatively stable from 48.8% in 2Q12 Commitments increased $1.2B to $49.7B Increased commitments in all commercial businesses and markets Loan pipeline remains strong
Continued Record Deposit Levels 3Q12 compared to 2Q12 Total average deposits grew $1.2B• Noninterest-bearing deposits up $1.3B• Broad-based growth across most markets and lines of business, led by Middle Market, Corporate and Small Business Total period-end deposits increased $589MM • Noninterest-bearing deposits up $423MM 7 45.1 47.8 48.3 48.7 49.9 49.4 50.0 0.33 0.29 0.26 0.25 0.24 Sterling Deposit Rates 3Q11 4Q11 1Q12 2Q12 3Q12Average Balances 2Q12 3Q12Period-end Deposit Costs Decline as Deposits Grow ($B) Period-endAverage Balances Securities Portfolio Total average MBS portfolio of $9.4B at 3Q12 • Duration of 2.7 years • Net unrealized pre-tax gain $323MM• Unamortized premium of about $105MM• Expect continued pace of prepayment $850MM-950MM for 4Q121 Average $ in billions (B). Excludes auction-rate securities. 1Outlook as of October 17, 2012. 8 7.7 9.4 9.5 9.4 9.6 9.7 10.3 2.87 2.74 2.73 2.55 2.42 3Q11 4Q11 1Q12 2Q12 3Q12 2Q12 3Q12 MBS Other Yield Primarily AAA Mortgage-backed Securities (MBS)
Net Interest Income Down Slightly 13Q12 compared to 2Q12. 2Outlook as of October 17, 2012 396 418 418 417 412 27 26 25 18 15 423 444 443 435 427 3.18 3.19 3.19 3.10 2.96 3Q11 4Q11 1Q12 2Q12 3Q12 Accretion NIM Net Interest Income ($MM) 9 4Q12 Expected Accretion2 of $7MM - $9MM Net interest income and rate NIM1: $435MM 2Q12 3.10% - 4MM Interest on non-accrual loans -0.03 - 2MM Lease residual adjustment -0.02 - 3MM Accretion on acquired portfolio -0.02 - 6MM Loan portfolio dynamics -0.03 +3MM Loan growth -- - 2MM MBS portfolio yields -0.02 +2MM Lower funding costs +0.01 +4MM One additional day -- -- Excess liquidity -0.03 $427MM 3Q12 2.96% 10 Loan Portfolio Dynamics Impacting Current Loan Yield 82% 83% 84% 84% 84% 18% 17% 16% 16% 16% 3Q11 4Q11 1Q12 2Q12 3Q12 Floating Rate Fixed Rate Maturing Higher Yielding Fixed Rate Loans 55% 57% 58% 60% 62% 30% 29% 28% 26% 25% 15% 14% 14% 14% 13% 3Q11 4Q11 1Q12 2Q12 3Q12 C&I CRE Other Higher Yielding CRE Declining2 1Based on period end loans outstanding. 2Based on average loans outstanding. 88% 90% 90% 91% 92% 3Q11 4Q11 1Q12 2Q12 3Q12 Accruing WatchList & Nonperforming Loans Remaining Portfolio Positive Credit Migration1 0.27 0.25 0.24 0.17 0.14 4.01 3.98 3.92 3.79 3.66 3Q11 4Q11 1Q12 2Q12 3Q12 Accretion Declining Yields Impacted by Declining Accretion
Strong Credit Quality $ in millions1Watch list is generally consistent with regulatory defined Special Mention, Substandard and Doubtful (nonaccrual) loans. 1 11 35 18 22 19 22 0.77 0.57 0.43 0.42 0.39 3Q11 4Q11 1Q12 2Q12 3Q12 Provision for credit-related lossesNet credit-related Charge-off Ratio Net credit-related charge-off ratio within historical normal range 958 887 856 747 692 4,969 4,467 4,206 3,835 3,653 3Q11 4Q11 1Q12 2Q12 3Q12 Nonperforming Loans Accruing Watch list Loans Watch list1 & Nonperforming loans continue to trend down 3Q12 compared to 2Q12. 1Customer-Driven Fee Income includes service charges on deposit accounts, fiduciary income, commercial lending fees, letter of credit fees, card fees, foreign exchange income, brokerage fees and customer-driven components of other noninterest income. 12 183 175 184 187 183 201 182 206 211 197 3Q11 4Q11 1Q12 2Q12 3Q12 Customer-Driven Fee Income Total Noninterest Income ($MM) 1 Noninterest income reflects:- $10MM Noncustomer-driven fee income:- $6MM Net securities gains- $5MM Annual incentive bonus from third-party credit card processor- $3MM Principal investing & warrants+ $5MM Deferred compensation asset returns (offset in salaries expense) - $4MM Customer-driven fee income:- $3MM Customer derivative income Noninterest Income Driven by Decline in Noncustomer-Driven Fees
3Q12 compared to 2Q12. 1Outlook as of October 17, 2012 9,701 9,397 9,195 9,014 9,008 3Q11 4Q11 1Q12 2Q12 3Q12 Full Time Equivalent (FTE) Employees 13 430 442 448 425 424 463 479 448 433 449 3Q11 4Q11 1Q12 2Q12 3Q12 Restructuring Expect 4Q12 Merger & Restructuring Costs1 of $1-4MM Noninterest Expenses ($MM) Continued Tight Expense Control Noninterest expense reflects:+ $17MM Merger & Restructuring Costs + $3MM Salaries:+$5MM Deferred compensation asset expense (offset in noninterest income)- $3MM Executive incentive compensation - $5MM Litigation & Legal Fees 14 1Excluding the third quarter restructuring charge total shareholder payout ratio was 89%. 2Outlook as of October 17, 2012. 15% 21% 25% 26% 60% 76% 41% 81% 101% 1Q12 2Q12 3Q12 Dividends Share Repurchases Strong Shareholder Payout 2012 Capital Plan On Track: Regulators had no objection to 2012 Capital Plan Board increased 2Q12 dividend 50% to 0.15 per share $375MM share repurchase target from 1Q12 through 1Q132• 1.1 million shares purchased in 1Q12 ($33MM)• 2.9 million shares purchased in 2Q12 ($88MM)• 2.9 million shares purchased in 3Q12 ($90MM) Shareholder Payout Ratio 1
Management 2012 Outlook1 1Outlook as of October 17, 2012. Based on current economic environment 15 Full-year 2012 compared to full-year 2011: Average loans +7 to 8% Net interest income +4 to 5% Net credit related charge-offs & provision Declining Noninterest income +1 to 2% Noninterest expense -1 to 1% Appendix
17 Average loans in $ billions By Line of Business 3Q12 2Q12 3Q11 By Market 3Q12 2Q12 3Q11Middle Market: Midwest $13.4 $13.8 $13.9General $13.1 $13.1 $13.1 Western 13.2 12.9 11.9Energy 2.6 2.5 1.6 Texas 9.6 9.5 8.1National Dealer Services 4.3 4.3 3.1 Florida 1.3 1.4 1.5Entertainment 0.6 0.6 0.5 Other Markets 4.3 3.8 3.1Tech. & Life Sciences 1.8 1.7 1.3 International 1.8 1.8 1.6Environmental Services 0.7 0.6 0.5 TOTAL $43.6 $43.2 $40.1Total Middle Market $23.1 $22.8 20.1CorporateUS Banking 3.0 3.0 2.9International 1.8 1.8 1.6Mortgage Banker Finance 2.0 1.5 0.9Commercial Real Estate 3.9 4.3 4.4BUSINESS BANK $33.8 $33.4 $29.9Small Business 3.7 3.6 3.7Personal Banking 1.6 1.7 1.8RETAIL BANK $5.3 $5.3 $5.5Private Banking 4.5 4.5 4.7WEALTH MANAGEMENT $4.5 $4.5 $4.7TOTAL $43.6 $43.2 $40.1 Middle Market: Serving customers with revenues generally between $20-500MM Corporate: Serving customers with revenues generally over $500MM Small Business: Serving customers with revenues generally under $20MM Loans by Business and Market New Classification for Sub-Lines of Business Growth in Middle Market Loans 18 General$13.1B 30% Energy$2.6B 6% National Dealer$4.3B 10% Entertainment$0.6B 1% Tech. & Life Sciences$1.8B 4% Environmental Services$0.7B 2% Corporate $4.8B 10% Commercial Real Estate$3.9B 9% Mortgage Banker$2.0B 5% Small Business$3.7B 9%Personal Banking$1.6B 4% Private Banking$4.5B 10% 20.1 20.9 21.9 22.8 23.1 3Q11 4Q11 1Q12 2Q12 3Q12 +1% Total Middle Market (Average, $ in B) = Total Middle Market (53%) Total Loans By Line of Business(Average, $ in B)
1,63 5 1,94 7 2,30 5 2,45 2 2,64 1 3Q11 4Q11 1Q12 2Q12 3Q12 488 545 614 635 691 3Q11 4Q11 1Q12 2Q12 3Q12 Loan Performance in Select Portfolios Average $ in millions. Includes Sterling Bancshares loans from July 28, 2011. Environmental Services Energy 1,34 6 1,51 7 1,64 3 1,65 9 1,83 1 3Q11 4Q11 1Q12 2Q12 3Q12 Tech and Life Sciences 19 535 563 576 622 615 3Q11 4Q11 1Q12 2Q12 3Q12 Entertainment • Approximately 900 borrowers• Strategy: Full relationships with ancillary business• Comerica is agent for approximately 18%• Adhere to same credit underwriting standards as rest of loan book • Credit quality mirrors total portfolio September 30, 2012: $9.3 billion Period-end outstandings as of September 30, 2012. Shared National Credit (SNC): Facilities greater than $20 million shared by three or more federally supervised financial institutions which are reviewed by regulatory authorities at the agent bank level. Commercial Real Estate$0.7B 8% Corporate $2.8B 30% General$2.3B 25% National Dealer $0.4B 4% Energy$2.4B 26% Entertainment$0.2B 2% Tech. & Life Sciences$0.3B 3% Mortgage Banker $0.2B 2% 20 Shared National Credit Relationships = Total Middle Market (60%)
Toyota/Lexus 19% Honda/Acura 17% Ford 7% GM 9% Chrysler 8% Mercedes 4% Nissan/ Infiniti 7% Other European 9% Other Asian 9% Other211% Diverse Franchise Distribution1 National Dealer Services Line of Business Geographic DispersionWestern 60% Florida 7%Midwest 19% Texas 8% 1 Franchise distribution based on September 30, 2012 period-end (PE) outstandings2 “Other” includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans) • 65+ years of Floor Plan lending, with over 20 years on a national basis • Top tier strategy• Majority are “Mega Dealer” (five or more dealerships in group)• Excellent credit quality• Robust monitoring of company inventory and performance Average PE Floor Plan PE Non-Floor Plan 4.9 3.5 3.5 3.5 3.8 4.3 4.3 2.3 2.1 2008 2009 2010 2011 1Q12 2Q12 3Q12 9/30/12 Loan Balances ($ in Billions) 21 3Q12 compared to 2Q12 Nonperforming Assets Nonperforming Assets of $755MM, a $59MM decrease, included: Nonaccrual loans decreased $54MM Foreclosed Property decreased to $63MM Troubled Debt Restructurings (TDRs) of $328MM, included: $120MM Performing Restructured $27MM Reduced Rate $181MM Nonaccrual TDR September 30, 2012Nonaccrual Loans $665 millionBy Business Middle Market$206MM Corporate $10MM Commercial Real Estate$188MM Private Banking$70MM Small Business$100MMOther$91MM 22
Deposits by Business and Market Average deposits in $ billions 23 Middle Market: Serving customers with revenues generally between $20-500MM Corporate: Serving customers with revenues generally over $500MM Small Business: Serving customers with revenues generally under $20MM New Classification for Sub-Lines of Business By Line of Business 3Q12 2Q12 3Q11 By Market 3Q12 2Q12 3Q11Middle Market: Midwest $19.7 $19.2 $18.5General $14.1 $13.5 $12.1 Western 15.2 14.4 13.0Energy 0.5 0.6 0.5 Texas 9.9 10.2 8.9National Dealer Services 0.2 0.2 0.2 Florida 0.5 0.4 0.4Entertainment 0.1 0.1 0.1 Other Markets 2.8 2.7 2.4Tech. & Life Sciences 5.2 5.1 4.2 International 1.4 1.4 1.6Environmental Services 0.1 0.1 0.1 Finance/ Other 0.4 0.4 0.3Total Middle Market $20.2 $19.6 $17.2 TOTAL $49.9 $48.7 $45.1CorporateUS Banking 1.9 1.7 1.7International 1.4 1.4 1.6Mortgage Banker Finance 0.5 0.5 0.4Commercial Real Estate 1.1 1.0 0.9BUSINESS BANK $25.1 $24.2 $21.8Small Business 6.1 5.9 5.6Personal Banking 14.6 14.6 14.2RETAIL BANK $20.7 $20.5 $19.8Private Banking 3.7 3.6 3.2WEALTH MANAGEMENT $3.7 $3.6 $3.2Finance/ Other 0.4 0.4 0.3TOTAL $49.9 $48.7 $45.1 Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch DBRS BB&T A- A2 A+ A (high) Comerica A- A3 A A M&T Bank A- A3 A- A (low) BOK Financial BBB+ A2 A A (low) KeyCorp BBB+ Baa1 A- BBB (high) SunTrust BBB Baa1 BBB+ A (low) Fifth Third BBB Baa1 A- A (low) Huntington BBB Baa1 BBB+ BBB First Horizon National Corp BBB- Baa2 BBB Regions Financial BBB- Ba3 BBB- BBB Zions Bancorporation BBB- Ba3 BBB- BBB (low) Synovus Financial Corp B B2 BB- Wells Fargo & Company A+ A2 AA- AA U.S. Bancorp A+ Aa3 AA- AA JP Morgan A A2 A+ A (high) PNC Financial Services Group A- A3 A+ A (high) Bank of America A- Baa2 A A Holding Company Debt Ratings As of 10/8/12; Source: SNL Financial; Debt Ratings are not a recommendation to buy, sell, or hold securities. 24 Pee r Ba nks Larg e Ba nks
Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ in millions) The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets.The Corporation believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.1Tier 1 Capital and risk-weighted assets as defined and calculated in accordance with regulation.2September 30, 2012 Tier 1 Capital and Risk-Weighted assets are estimated. 9/30/12 6/30/12 3/31/12 12/31/11 9/30/11Tier 1 capital1,2Less: Trust preferred securities $6,685-- $6,676-- $6,647-- $6,58225 $6,56049Tier 1 common capital2Risk-weighted assets1,2Tier 1 common capital ratio2 6,68564,77210.32% 6,67664,31210.38% 6,64764,74210.27% 6,55763,24410.37% 6,51161,59310.57% Total shareholders’ equityLess: GoodwillLess: Other intangible assets $7,08463525 $7,02863528 $6,98563530 $6,86863532 $6,95163535 Tangible common equity $6,424 $6,365 $6,320 $6,201 $6,281Total assetsLess: GoodwillLess: Other intangible assets $63,31463525 $62,65063528 $62,59363530 $61,00863532 $60,88863535Tangible assets $62,654 $61,987 $61,928 $60,341 $60,218Tangible common equity ratio 10.25% 10.27% 10.21% 10.27% 10.43% 25
