Comerica Incorporated Fourth Quarter 2012 Financial ReviewJanuary 16, 2013 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 Reform Act of1995. 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 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-lookingstatements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known toComerica's management as of the date of this presentation and do not purport to speak as of any other date. Forward-looking statements may includedescriptions 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 trendsand 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 anduncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differmaterially from those discussed. Factors that could cause 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 creditmarkets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorabledevelopments concerning credit quality; the acquisition of Sterling Bancshares, Inc., or any future acquisitions; the effects of more stringent capital or liquidityrequirements; declines or other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and businessmodels, 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 security incidents;changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures amongfinancial institutions within Comerica's markets; changes in customer behavior; management's ability to maintain and expand customer relationships;management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods ofreducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes,tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comericacautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer toour filings with the Securities and Exchange Commission. In particular, please refer to “Item 1A. Risk Factors” beginning on page 12 of Comerica's AnnualReport on Form 10-K for the year ended December 31, 2011 and “Item 1A. Risk Factors” beginning on page 73 of the Corporation’s Quarterly Report onForm 10-Q for the quarter ended September 30, 2012. Forward-looking statements speak only as of the date they are made. Comerica does not undertake toupdate 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 presentation or in any documents, Comerica claims the protection of the safe harbor for forward-lookingstatements contained in the Private Securities Litigation Reform Act of 1995.
Financial Results $ in millions, except per share data. 1Calculated using net income attributable to common shares. 2Estimated.3See Supplemental Financial Data slides for a reconciliation of non-GAAP financial measures. 4Q12 3Q12 2012 2011 Diluted income per common share1 $0.68 $0.61 $2.67 $2.09 Net interest income $424 $427 $1,728 $1,653 Loan accretion 13 15 71 53 Noninterest income 204 197 818 792 Provision for credit losses 16 22 79 144 Noninterest expenses 427 449 1,757 1,771 Restructuring expenses 2 25 35 75 Net income 130 117 521 393 Total loans (average) $44,119 $43,597 $43,306 $40,075 Total deposits (average) 51,292 49,857 49,540 43,762 Tier 1 capital ratio 10.11%2 10.35% Basel III capital ratio3 9.1% 9.4% Average diluted shares (millions) 188 191 3 Fourth Quarter 2012 Results $ in millions 4Q12 vs. 3Q12 Chg $ Chg % Total Loans (average) $522 1% Driven by Commercial Loans Commercial Loans 762 3 Primarily due to National Dealer, Energy, general Middle Market & Mortgage Banker Total Deposits (average) 1,435 3 All-time high Noninterest-bearing deposits 1,289 6 New record, with broad-based growth Net Interest Income (3) -- Stable, excluding the impact of accretion Noninterest Income 7 4 Due to customer driven fees Noninterest Expense (22) (5) Continued tight expense control, restructuring down $23MM Net Income 13 11 Net credit-related charge-offs (6) (14) Within normal range Provision for credit losses (6) (25) Shares Repurchasedunder share repurchase program 3.1MM sharesor $93MM Shareholder payout of 93% of earnings 4
Well Positioned in Growth Markets 5 19.1 13.5 10.3 19.4 13.7 10.2 19.2 14.1 10.2 19.6 15.0 9.9 20.0 15.5 9.8 Michigan California Texas Average Deposit Balances ($ in B) 13.7 11.7 9.0 13.8 12.1 9.3 13.8 12.6 9.5 13.5 12.9 9.6 13.4 13.3 9.8 Michigan California Texas Average Loan Balances ($ in B) -2% 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 1Q1 2 2Q1 2 4Q1 2 4Q1 1 3Q1 2 -5% 1.5 1.5 1.5 2.0 2.1 0.9 1.823.5 24.7 26.0 26.7 27.5 22.2 26.2 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Mortgage Banker 41.5 42.3 43.2 43.6 44.1 40.1 43.3 3.98 3.92 3.79 3.66 3.60 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Loan Yields Commercial Loan Growth ($B) Average Loans Grew 1% with Commercial Loans up 3% Total Loan Growth ($B) 6 Average loan balances; 4Q12 compared to 3Q12; FY 2011 includes Sterling Bancshares loans from July 28, 2011. Period end loans grew $1.9B, or 4%, to $46.1B with Commercial loans growing $2.1B, or 7% Line utilization increased to 49.4%; Commitments increased $817MM, or 2%, to $50.6B Loan pipeline remains solid
Continued Record Deposit Levels Total average deposits grew $1.4B• Noninterest-bearing deposits up $1.3B, or 6%• Broad-based growth across most markets and lines of business Total period-end deposits increased $2.2B to $52.2B• Noninterest-bearing deposits up $1.5B, or 7% 7 47.8 48.3 48.7 49.9 51.3 43.8 49.5 0.29 0.26 0.25 0.24 0.22 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 Deposit Rates Deposit Costs Decline as Deposits Grow ($B) Average deposit balances; 4Q12 compared to 3Q12; FY 2011 includes Sterling Bancshares deposits from July 28, 2011. Securities Portfolio Total average MBS portfolio of $9.8B at 4Q12 • Duration of 3.0 years • Net unrealized pre-tax gain $236MM• Unamortized premium of about $95MM• Expect continued pace of prepayment $850MM-950MM for 1Q131 Average $ in billions (B). Excludes auction-rate securities. 1Outlook as of January 16, 2013. 8 9.4 9.5 9.4 9.6 10.0 7.7 9.6 2.74 2.73 2.55 2.42 2.25 4Q11 1Q12 2Q12 3Q12 4Q12 2011 2012 MBS Other Yield Primarily AAA Mortgage-backed Securities (MBS)
Net Interest Income Stable1 4Q12 compared to 3Q12. 1Excluding the impact of accretion. 2Outlook as of January 16, 2013. 418 417 417 412 411 26 25 18 15 13 444 442 435 427 424 3.19 3.19 3.10 2.96 2.87 4Q11 1Q12 2Q12 3Q12 4Q12 Accretion NIM Net Interest Income ($MM) 9 FY13 Expected Accretion2 of $20MM - $30MM Net interest income and rate NIM: $427MM 3Q12 2.96% +4MM Loan growth -- -4MM Loan portfolio dynamics -0.04 -2MM LIBOR decline -0.02 +2MM 3Q12 Lease residual adjustment +0.02 - 2MM Accretion on acquired portfolio -0.01 -2MM Securities portfolio -0.03 +1MM Lower funding costs +0.01 -- Excess liquidity -0.02 $424MM 4Q12 2.87% Continued Strong Credit Quality $ in millions1Watch list is generally consistent with regulatory defined Special Mention, Substandard and Doubtful (nonaccrual) loans. 1 10 18 22 19 22 16 0.57 0.43 0.42 0.39 0.34 4Q11 1Q12 2Q12 3Q12 4Q12 Provision for credit-related lossesNet credit-related Charge-off Ratio Net credit-related charge-off ratio within historical normal range 887 856 747 692 541 4,467 4,206 3,835 3,653 3,088 4Q11 1Q12 2Q12 3Q12 4Q12 Nonperforming Loans Accruing Watch list Loans Watch list1 & Nonperforming loans continue to trend down
4Q12 compared to 3Q12. 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. 11 175 184 187 183 190 182 206 211 197 204 4Q11 1Q12 2Q12 3Q12 4Q12 Customer-Driven Fee Income Total Noninterest Income ($MM) 1 Noninterest income increased $7MM, or 4% reflecting: An increase in customer-driven fee income: +$3MM Commercial Lending Fees +$3MM Derivative Income +$3MM Fiduciary Income -$2MM Letter of Credit Fees Noncustomer-driven fee income was stable: +$1MM Net Securities Gains (Auction-rate securities redemptions) -$2MM Deferred compensation asset returns (offset in noninterest expense) Customer-driven Fee Income Increased 4Q12 compared to 3Q12. 9,397 9,195 9,014 9,008 8,967 4Q11 1Q12 2Q12 3Q12 4Q12 Full Time Equivalent (FTE) Employees 12 442 448 425 424 425 479 448 433 449 427 4Q11 1Q12 2Q12 3Q12 4Q12 RestructuringNoninterest Expenses ($MM) Continued Tight Expense Control Noninterest expense decreased $22MM, or 5%, reflecting: - $23MM Merger & Restructuring Costs +$4MM Salaries: +$4MM Severance +$2MM Employee incentives - $2MM Deferred compensation asset expense (offset in noninterest income) - $2MM Employee benefits +$2MM Occupancy - $4MM Litigation & Legal Fees +$6MM Gain on asset sales in 3Q12
13 1Excluding the restructuring charge, third quarter total shareholder payout ratio was 89%. 2Outlook as of January 16, 2013. Strong Shareholder Payout 2012 Capital Plan On Track:$375MM share repurchase target from 1Q12 through 1Q132 Shares in MM $ in MM 1Q12 1.1 33 2Q12 2.9 88 3Q12 3.0 90 4Q12 3.1 93 FY12 10.1 $ 304 15% 21% 25% 22% 20% 26% 60% 76% 71% 59%41% 81% 101% 93% 79% 1Q12 2Q12 3Q12 4Q12 FY 2012 DividendsShare Repurchases Shareholder Payout Ratio 1 Delivered Synergies Expected onSterling Acquisition 1Estimated overall loan growth in the Houston, San Antonio, and Kerrville markets from August 2011 through 1Q12. 2Estimated overall increases in the Houston, San Antonio, and Kerrville markets based on run-rate as of the acquisition date. Sterling Acquisition Accelerates Growth in Texas Comerica Branches Sterling Branches 14 35% of expense savingsExpenseSynergies Expected Delivered 4Q11+RevenueSynergies 10% loan growth115% growth in noninterest income2Merger-RelatedCharges $125MM(pre-tax) 1Q12 4Q12 4Q12
Management 2013 Outlook1 1Outlook as of January 16, 2013. 15 FY 2013 compared to FY 2012:Based on current economic environment Average loans Continued growth at a slower pace, with economic uncertainty impacting demand as well as continued pricing and structure discipline Net interest income Lower, reflecting a decline in purchase accounting accretion to $20-30MM and effect of low rate environment. Expect loan growth to partially offset impact from low rates Provision Stable, reflecting loan growth offset by a continued decline in nonperforming loans and net charge-offs Noninterest income Increase in customer-driven fee income, reflecting cross-sell initiatives and selective pricing adjustments. (Outlook does not include expectations for noncustomer fee income) Noninterest expense Lower, reflecting further cost savings due to tight expense control and no restructuring expensesIncome taxes Approx. 36.5% of pre-tax income less about $66MM in tax benefits Maintain focus on delivering a growing bottom line Appendix
Efficiency Ratio and ROA Goals 69% 68%59% 66% 69% 67% 72% 69% 2007 2008 2009 2010 2011 2012 Restructuring 20 year average: 59% Efficiency Ratio 1.17% 0.33% 0.03% 0.50% 0.69% 0.83% 2007 2008 2009 2010 2011 2012 Return on Average Assets (ROA) 20 year average: 1.18% Long-TermGoal: Above 1.30% Long-TermGoal: Below 60% 17 Goal as of January 16, 2013. 18 Average loans in $ billions. Loans by Business and Market By Line of Business 4Q12 3Q12 4Q11 By Market 4Q12 3Q12 4Q11Middle Market: Michigan $13.4 $13.5 $13.8General $13.2 $13.1 $13.0 California 13.3 12.9 11.7Energy 2.9 2.6 1.9 Texas 9.8 9.6 9.0National Dealer Services 4.6 4.3 3.4 Other Markets 7.6 7.6 7.0Entertainment 0.6 0.6 0.6 TOTAL $44.1 $43.6 $41.5Tech. & Life Sciences 1.9 1.8 1.5Environmental Services 0.7 0.7 0.5Total Middle Market $23.9 $23.1 20.9CorporateUS Banking 2.8 3.0 2.7International 1.8 1.8 1.6Mortgage Banker Finance 2.1 2.0 1.5Commercial Real Estate 3.7 3.9 4.6BUSINESS BANK $34.3 $33.8 $31.3Small Business 3.7 3.7 3.8Personal Banking 1.6 1.6 1.8RETAIL BANK $5.3 $5.3 $5.6Private Banking 4.5 4.5 4.6WEALTH MANAGEMENT $4.5 $4.5 $4.6TOTAL $44.1 $43.6 $41.5 Middle Market: Serving companies with revenues generally between $20-500MM Corporate: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM
1,94 7 2,30 5 2,45 2 2,64 1 2,85 1 4Q11 1Q12 2Q12 3Q12 4Q12 545 614 635 670 716 4Q11 1Q12 2Q12 3Q12 4Q12 Loan Performance in Select Portfolios Average $ in millions. Environmental Services Energy 1,51 7 1,64 3 1,65 9 1,83 1 1,88 6 4Q11 1Q12 2Q12 3Q12 4Q12 Tech and Life Sciences 19 3,39 3 3,80 0 4,28 3 4,29 8 4,62 2 4Q11 1Q12 2Q12 3Q12 4Q12 National Dealer Services • 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 Period-end outstandings as of December 31, 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$0.6B 6% Corporate $2.7B 30% General$2.0B 21% National Dealer $0.4B 4% Energy$2.6B 28% Entertainment$0.3B 3% Tech. & Life Sciences$0.2B 2% Environmental Services $0.3B 3% Mortgage Banker$0.3B 3% 20 Shared National Credit Relationships = Total Middle Market (61%) December 31, 2012: $9.4 billion
Toyota/Lexus 18% Honda/Acura 16% Ford 8% GM 9% Chrysler 9% Mercedes 4% Nissan/ Infiniti 7% Other European 9% Other Asian 9% Other211% Diverse Franchise Distribution1 National Dealer Services Line of Business Geographic DispersionCalifornia 62% Texas 6%Michigan 19% Other 13% 1 Franchise distribution based on December 31, 2012 period-end (PE) outstandings.2 “Other” includes obligations where a primary franchise is indeterminable (rental car and leasing companies, heavy truck, recreational vehicles, and non-floor plan loans). • 65+ years of Floor Plan lending, with over 20 years on a national basis • Top tier strategy• Majority are “Mega Dealer” (five or more dealerships in group)• Excellent credit quality• Robust monitoring of company inventory and performance 4.9 3.5 3.5 3.5 4.3 2008 2009 2010 2011 2012 Average Loan Balances ($ in Billions) 21 4Q12 compared to 3Q12. Nonperforming Assets Nonperforming Assets of $587MM, a $168MM decrease, included: Nonaccrual loans decreased $146MM Foreclosed Property decreased to $46MM Troubled Debt Restructurings (TDRs) of $232MM, included: $92MM Performing Restructured $22MM Reduced Rate $118MM Nonaccrual TDR December 31, 2012Nonaccrual Loans $519 millionBy Business Middle Market$126MM Corporate $8MM Commercial Real Estate$131MM Private Banking$62MM Small Business$98MM Other$94MM 22
Deposits by Business and Market Average deposits in $ billions. 23 By Line of Business 4Q12 3Q12 4Q11 By Market 4Q12 3Q12 4Q11Middle Market: Mighigan $20.0 $19.6 $19.1General $14.6 $14.1 $12.7 California 15.5 15.0 13.5Energy 0.5 0.5 0.9 Texas 9.8 9.9 10.3National Dealer Services 0.2 0.2 0.2 Other Markets 5.5 5.0 4.5Entertainment 0.1 0.1 0.1 Finance/ Other 0.5 0.4 0.4Tech. & Life Sciences 5.2 5.2 4.4 TOTAL $51.3 $49.9 $47.8Environmental Services 0.1 0.1 0.1Total Middle Market $20.7 $20.2 $18.4CorporateUS Banking 2.1 1.9 2.0International 1.6 1.4 1.5Mortgage Banker Finance 0.6 0.5 0.4Commercial Real Estate 1.1 1.1 1.0BUSINESS BANK $26.1 $25.1 $23.3Small Business 6.3 6.1 6.3Personal Banking 14.6 14.6 14.4RETAIL BANK $20.9 $20.7 $20.7Private Banking 3.8 3.7 3.4WEALTH MANAGEMENT $3.8 $3.7 $3.4Finance/ Other 0.5 0.4 0.4TOTAL $51.3 $49.9 $47.8 Middle Market: Serving companies with revenues generally between $20-500MM Corporate: Serving companies (and their U.S. based subsidiaries) with revenues generally over $500MM Small Business: Serving companies with revenues generally under $20MM Senior Unsecured/Long-Term Issuer Rating S&P Moody’s Fitch DBRS BB&T A- A2 A+ A (high) Comerica A- A3 A A M&T Bank A- A3 A- A (low) BOK Financial BBB+ A2 A A (low) KeyCorp BBB+ Baa1 A- BBB (high) SunTrust BBB Baa1 BBB+ A (low) Fifth Third BBB Baa1 A- A (low) Huntington BBB Baa1 BBB+ BBB First Horizon National Corp BBB- Baa2 BBB- Regions Financial BBB- Ba1 BBB- BBB Zions Bancorporation BBB- Ba1 BBB- BBB (low) Synovus Financial Corp B B2 BB- Wells Fargo & Company A+ A2 AA- AA U.S. Bancorp A+ A1 AA- AA JP Morgan A A2 A+ A (high) PNC Financial Services Group A- A3 A+ A (high) Bank of America A- Baa2 A A Holding Company Debt Ratings As of 1/8/13; Source: SNL Financial; Debt Ratings are not a recommendation to buy, sell, or hold securities. 24 Pee r Ba nks Larg e Ba nks
Supplemental Financial DataReconciliation of non-GAAP financial measures with financial measures defined by GAAP ($ 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.2December 31, 2012 Tier 1 Capital and Risk-Weighted assets are estimated. 12/31/12 9/30/12 6/30/12 3/31/12 12/31/11Tier 1 capital1,2Less: Trust preferred securities $6,705-- $6,685-- $6,676-- $6,647-- $6,58225Tier 1 common capital2Risk-weighted assets1,2Tier 1 common capital ratio2 6,70566,31210.11% 6,68564,56810.35% 6,67664,31210.38% 6,64764,74210.27% 6,55763,24410.37% Total shareholders’ equityLess: GoodwillLess: Other intangible assets $6,94263522 $7,08463525 $7,02863528 $6,98563530 $6,86863532 Tangible common equity $6,285 $6,424 $6,365 $6,320 $6,201Total assetsLess: GoodwillLess: Other intangible assets $65,35963522 $63,31463525 $62,65063528 $62,59363530 $61,00863532Tangible assets $64,702 $62,654 $61,987 $61,928 $60,341Tangible common equity ratio 9.71% 10.25% 10.27% 10.21% 10.27% 25 Supplemental Financial DataTier 1 Common Equity under Basel III (estimated) ($ in billions) Basel III calculations reflect adjustments for the related elements as proposed by regulatory authorities. Basel III impact is estimated and subject to final rulemaking. The Corporation may be affected by other changes due to Basel III. 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.1Estimated. Tier 1 Capital and risk-weighted assets as defined and calculated in accordance with regulation.2Includes AFS mark-to-market and defined benefit pension liability.3The amount of regulatory capital and risk-weighted assets estimated under Basel III (as fully phased-in on January 1, 2019) is based upon the Corporation’s interpretation of the federal banking agencies’ notices of proposed rulemaking, which implement Basel III and the Standardized Approach. Tier 1 Common Equity under Basel III (estimated) 12/31/12Tier 1 common capital under Basel I1Adjustments from Basel I to Basel III:Cumulative other comprehensive income2 $6.7 (0.4)Tier 1 common equity anticipated under Basel III3 $6.3 Risk-weighted assets under Basel I1Adjustments from Basel I to Basel III:Unused commitments < 1 YearReal estate relatedOther $66.3 1.00.90.5Risk-weighted assets anticipated under Basel III3 $68.7 Tier 1 common equity to total risk-weighted assets anticipated under Basel III 9.1% 26
