1
EXHIBIT 99.1
COMERICA REPORTS RECORD 2000 EARNINGS
DETROIT/January 22, 2001 -- Comerica Incorporated (NYSE: CMA) today reported
record 2000 earnings per share of $4.63, compared to $4.14 in 1999, an increase
of 12 percent. Net income was $749 million, up 11 percent from $673 million for
1999. Return on common equity was 21.16 percent and return on assets was 1.86
percent, compared to 21.86 percent and 1.82 percent, respectively, for 1999.
Net income for the fourth quarter of 2000 was $1.20 per share or $194 million,
compared to $1.08 per share or $176 million for the same period in 1999,
increasing 11 percent. Return on common equity was 20.64 percent and return on
assets was 1.88 percent, compared to 21.60 percent and 1.84 percent,
respectively, for the fourth quarter of 1999.
"We are pleased that 2000 marks the eighth consecutive year in which Comerica
has achieved record earnings," said Eugene A. Miller, chairman, president and
chief executive officer. "Our financial success in 2000 can be attributed to
continued strong business loan growth, our ability to effectively manage
interest rate and credit risk, and strong fee revenue growth from our investment
advisory business. We are committed to continuing our strong financial
performance in 2001 and beyond. In November, we took steps to build on our
leadership position in middle-market lending as well as increase our lending
presence in key growth areas of SBA, the entertainment industry and emerging
growth businesses, by announcing an agreement to acquire Imperial Bancorp. The
acquisition is expected to be completed by the end of January. We intend to
release a summary of Imperial's fourth quarter and full-year 2000 earnings
subsequent to closing."
Net interest income for the fourth quarter of 2000 was $428 million, an increase
of $20 million or five percent from the same period last year. This increase was
primarily due to an increase in average business loans of $3 billion or 10
percent over last year's fourth quarter. Excluding divestitures, net interest
income increased $30 million or seven percent over last year's fourth quarter.
The net interest margin was 4.46 percent for the fourth quarter of 2000,
compared to 4.40 percent in the third quarter of 2000 and 4.60 percent
- more -
2
COMERICA REPORTS RECORD 2000 EARNINGS -- 2
for the fourth quarter of 1999. Excluding divestitures, the net interest margin
decreased 8 basis points from the same period in 1999. The net interest margin
was negatively impacted by the growth in earning assets exceeding the growth in
core deposits, resulting in greater reliance on market rate sources of funding.
The net interest margin for the full-year 2000 was 4.45 percent, a decrease of
10 basis points from 1999.
Noninterest income was $198 million for the fourth quarter of 2000, a slight
increase from $195 million for the fourth quarter of 1999. Fourth quarter 2000
other noninterest income includes an additional $13 million gain associated with
the sale of revolving check credit and bankcard loans which occurred in the
first quarter 2000, a $7 million impairment on technology-related mutual fund
deferred distribution costs and the write-down of $7 million of low-income
housing investments accounted for under the equity method. Securities losses in
the fourth quarter 2000 include an additional $6 million of low-income housing
investment write-downs where the underlying investment is accounted for under
the cost method. Noninterest income in the fourth quarter 1999 includes a $9
million gain on the sale of a warrant received from an investment in a joint
venture. Excluding the effect of these large nonrecurring items, securities
gains/(losses) and the impact of the revolving check credit and bankcard loan
sale, noninterest income increased 12 percent in the fourth quarter of 2000
compared to the same period last year. This increase was primarily due to
investment advisory fee growth at Munder Capital Management and an increase in
deposit service charges and commercial lending fees. Revenues at Munder,
including those generated by providing investment advisory services for Comerica
affiliates, totaled $149 million in 2000, compared to $88 million in 1999. Due
to net asset value declines in technology-related funds, revenues in the fourth
quarter 2000 decreased $16 million from the third quarter 2000. Excluding the $7
million impairment noted above, revenues decreased $9 million from the prior
quarter. Munder contributed $23 million in 2000 and $14 million in 1999 to
Comerica's consolidated net income. At December 31, 2000, preliminary assets
under management at Munder were $48.1 billion, including $5.1 billion in the
NetNet, International NetNet and Future Tech funds.
Noninterest expenses were $295 million for the fourth quarter of 2000, compared
to $288 million in 1999, an increase of two percent. Noninterest expenses in the
fourth quarter 1999 include $3 million of severance and a $3 million legal
settlement. Excluding the effect
- more -
3
COMERICA REPORTS RECORD 2000 EARNINGS -- 3
of these large nonrecurring items and the impact of the revolving check credit
and bankcard loan sale, noninterest expenses increased six percent in the fourth
quarter of 2000 compared to the same period last year. An increase in
advertising expense, due principally to marketing costs for mutual funds, was
the primary factor contributing to the increase in expenses.
The provision for credit losses was $32 million in the fourth quarter of 2000,
an increase of $8 million from the third quarter of 2000 and a decrease of $13
million compared to the fourth quarter of 1999. Net charge-offs for the quarter
were $17 million or 0.20 percent of average total loans, compared with $32
million or 0.39 percent in the fourth quarter of 1999. Nonperforming assets were
$273 million or 0.76 percent of loans and other real estate at December 31,
2000, compared to $241 million or 0.69 percent at September 30, 2000, and $182
million or 0.56 percent at December 31, 1999. The allowance for credit losses as
a percent of loans was 1.49 percent at December 31, 2000, a three basis point
increase from 1.46 percent at December 31, 1999.
Assets totaled $42 billion at December 31, 2000 and $39 billion at December 31,
1999, while common shareholders' equity was $3.8 billion at December 31, 2000,
compared to $3.2 billion one year earlier. Shares of common stock outstanding
were 157 million at December 31, 2000 and 1999. Total loans were $36 billion at
December 31, 2000, compared to $33 billion a year ago. Total deposits were $27
billion at December 31, 2000, compared to $23 billion at December 31, 1999.
- more -
4
COMERICA REPORTS RECORD 2000 EARNINGS -- 4
A conference call reviewing Comerica's fourth quarter 2000 financial results
will be held at 9 a.m. EDT today, January 22, 2001. Interested parties may
access the conference call by calling (706) 679-5261 (event ID No. 260422). The
call is also accessible on the Internet at www.comerica.com. A replay of the
conference call will be available approximately two hours following the call
through January 26, 2001. The conference call replay can be accessed by calling
(800) 642-1687 or (706) 645-9291 (event ID No. 260422). The replay can also be
accessed via Comerica's investor relations home page at www.comerica.com.
This release includes forward-looking statements as that term is used in the
securities laws. All statements regarding Comerica's expected financial
position, strategies and growth prospects and general economic conditions
expected to exist in the future are forward-looking statements. The words
anticipates, believes, estimates, seeks, plans, projects, intends and similar
expression, as they relate to Comerica or its management, are intended to
identify forward-looking statements. Although Comerica believes that the
expectations reflected in these forward-looking statements are reasonable and
has based these expectations on Comerica's beliefs and assumptions it has made,
such expectations may prove incorrect. Forward-looking statements speak only as
of the date they are made. Comerica does not undertake to update forward-looking
statements to reflect circumstances or events that occur after the date the
forward-looking statements are made. Certain historical financial information
included in this earnings release has been reclassified to conform to the
current presentation.
- more -
5
COMERICA REPORTS RECORD 2000 EARNINGS -- 5
Comerica Incorporated is a multi-state financial services provider headquartered
in Detroit, with bank subsidiaries in Michigan, California and Texas, banking
operations in Florida, and businesses in several other states. Comerica has an
investment services affiliate, Munder Capital Management, and operates banking
subsidiaries in Canada and Mexico.
###
MEDIA CONTACTS: INVESTOR CONTACT:
- -------------- ----------------
Sharon R. McMurray Judith S. Love
(313) 222-4881 (313) 222-2840
Wayne J. Mielke
(313) 222-4732
6
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Three Months Ended
(in thousands, except per share data, December 31, September 30, December 31,
average balances and ratios) 2000 2000 1999
----------- ------------ -----------
PER SHARE AND COMMON STOCK DATA
Diluted net income $1.20 $1.18 $1.08
Cash dividends declared 0.40 0.40 0.36
Common shareholders' equity (at period end) 23.94 22.95 20.60
Average diluted shares 158,770 158,622 158,316
KEY RATIOS
Return on average common equity 20.64% 21.26% 21.60%
Return on average assets 1.88% 1.89% 1.84%
Average common equity as a percentage of
average assets 8.91% 8.71% 8.31%
Core capital ratio (December 2000 estimated) 7.15% 7.03% 6.95%
Total capital ratio (December 2000 estimated) 11.07% 11.08% 10.72%
Leverage ratio (December 2000 estimated) 8.91% 8.71% 8.39%
AVERAGE BALANCES (in millions)
Commercial loans (including lease financing) $23,114 $22,734 $21,184
International loans 2,547 2,537 2,537
Real estate construction loans 2,233 2,108 1,658
Commercial mortgage loans 5,185 5,073 4,623
Residential mortgage loans 809 825 870
Consumer loans 1,426 1,402 1,825
----------- ------------ -----------
Total loans $35,314 $34,679 $32,697
Earning assets 38,271 37,495 35,297
Total assets 41,341 40,506 38,194
Interest-bearing deposits 19,587 18,715 16,321
Noninterest-bearing deposits 6,522 6,500 6,309
Total interest-bearing liabilities 30,317 29,685 27,974
Common shareholders' equity 3,682 3,528 3,174
NET INTEREST INCOME
Net interest income (fully taxable equivalent
basis) $428,624 $415,095 $409,345
Fully taxable equivalent adjustment 841 940 1,070
Net interest margin 4.46% 4.40% 4.60%
CREDIT QUALITY
Nonaccrual loans $267,235 $236,021 $165,093
Reduced-rate loans 348 299 7,347
Other real estate 5,052 4,181 9,595
Total nonperforming assets 272,635 240,501 182,035
Loans 90 days past due 35,820 53,338 47,676
Gross charge-offs 22,021 24,461 44,626
Recoveries 4,553 3,472 12,636
Net charge-offs 17,468 20,989 31,990
Allowance for credit losses as a percentage
of total loans 1.49% 1.50% 1.46%
Nonperforming assets as a percentage of
total loans and other real estate 0.76% 0.69% 0.56%
Net loans charged off as a percentage of
average total loans 0.20% 0.24% 0.39%
Allowance for credit losses as a percentage
of total nonperforming assets 197% 218% 262%
ADDITIONAL DATA
Goodwill $364,806 $372,811 $316,469
Core deposit intangible 7,883 9,056 12,767
Other intangibles 1,313 1,411 1,587
Loan servicing rights 3,558 3,306 4,605
Amortization of intangibles 9,340 9,388 8,504
7
CONSOLIDATED FINANCIAL HIGHLIGHTS
Comerica Incorporated and Subsidiaries
Year Ended
(in thousands, except per share data, December 31, December 31,
average balances and ratios) 2000 1999
----------- ------------
PER SHARE AND COMMON STOCK DATA
Diluted net income $4.63 $4.14
Cash dividends declared 1.60 1.44
Common shareholders' equity (at period end)
Average diluted shares 158,275 158,397
KEY RATIOS
Return on average common equity 21.16% 21.86%
Return on average assets 1.86% 1.82%
Average common equity as a percentage of
average assets 8.58% 8.11%
Core capital ratio (December 2000 estimated)
Total capital ratio (December 2000 estimated)
Leverage ratio (December 2000 estimated)
AVERAGE BALANCES (in millions)
Commercial loans (including lease financing) $22,537 $20,363
International loans 2,552 2,627
Real estate construction loans 2,009 1,364
Commercial mortgage loans 5,051 4,461
Residential mortgage loans 832 929
Consumer loans 1,395 1,816
----------- -----------
Total loans $34,376 $31,560
Earning assets 37,344 34,079
Total assets 40,320 36,960
Interest-bearing deposits 18,287 16,264
Noninterest-bearing deposits 6,405 6,255
Total interest-bearing liabilities 29,675 27,035
Common shareholders' equity 3,460 2,999
NET INTEREST INCOME
Net interest income (fully taxable equivalent
basis) $1,662,549 $1,552,018
Fully taxable equivalent adjustment 3,698 4,877
Net interest margin 4.45% 4.55%
CREDIT QUALITY
Nonaccrual loans
Reduced-rate loans
Other real estate
Total nonperforming assets
Loans 90 days past due
Gross charge-offs $99,537 $120,976
Recoveries 16,232 31,004
Net charge-offs 83,305 89,972
Allowance for credit losses as a percentage
of total loans
Nonperforming assets as a percentage of
total loans and other real estate
Net loans charged off as a percentage of
average total loans 0.24% 0.29%
Allowance for credit losses as a percentage
of total nonperforming assets
ADDITIONAL DATA
Goodwill
Core deposit intangible
Other intangibles
Loan servicing rights
Amortization of intangibles $36,663 $33,921
8
CONSOLIDATED BALANCE SHEETS
Comerica Incorporated and Subsidiaries
December 31, September 30, December 31,
(in thousands, except share data) 2000 2000 1999
----------- ------------ -----------
ASSETS
Cash and due from banks $ 1,496,705 $ 1,519,051 $ 1,201,990
Short-term investments 165,364 170,792 612,959
Investment securities available
for sale 2,677,762 2,692,595 2,739,464
Commercial loans 22,729,464 22,070,506 20,654,658
International loans 2,571,156 2,483,910 2,573,003
Real estate construction loans 2,310,399 2,197,799 1,709,261
Commercial mortgage loans 5,271,078 5,095,248 4,774,052
Residential mortgage loans 806,561 816,960 870,029
Consumer loans 1,436,773 1,415,889 1,350,725
Lease financing 934,914 854,999 761,550
----------- ----------- -----------
Total loans 36,060,345 34,935,311 32,693,278
Less allowance for credit losses (538,110) (523,575) (476,470)
----------- ----------- -----------
Net loans 35,522,235 34,411,736 32,216,808
Premises and equipment 306,753 312,992 330,728
Customers' liability on acceptances
outstanding 26,668 22,578 43,810
Accrued income and other assets 1,789,698 1,755,646 1,507,573
----------- ----------- -----------
TOTAL ASSETS $41,985,185 $40,885,390 $38,653,332
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 6,814,935 $ 6,384,881 $ 6,136,038
Interest-bearing deposits 20,353,077 19,135,057 17,155,365
----------- ----------- -----------
Total deposits 27,168,012 25,519,938 23,291,403
Federal funds purchased and
securities sold under
agreements to repurchase 1,638,591 2,155,228 1,332,397
Other borrowed funds 438,927 1,130,201 1,435,634
Acceptances outstanding 26,668 22,578 43,810
Accrued expenses and other
liabilities 617,060 561,214 495,587
Medium- and long-term debt 8,088,661 7,650,541 8,579,857
----------- ----------- -----------
Total liabilities 37,977,919 37,039,700 35,178,688
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
12/31/00, 9/30/00 and 12/31/99 250,000 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 157,233,107 shares at
12/31/00, 9/30/00 and 12/31/99 786,166 786,166 786,166
Capital surplus 43,354 39,765 35,092
Accumulated other comprehensive income 10,565 (14,879) (31,702)
Retained earnings 2,937,296 2,821,076 2,485,204
Deferred compensation (3,704) (4,047) (2,955)
Less cost of common stock in
treasury - 289,397 shares at
12/31/00, 571,201 shares at
9/30/00 and 715,496 shares
at 12/31/99 (16,411) (32,391) (47,161)
----------- ----------- -----------
Total shareholders' equity 4,007,266 3,845,690 3,474,644
----------- ----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $41,985,185 $40,885,390 $38,653,332
=========== =========== ===========
9
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Three Months Ended
---------------------------
December 31, December 31,
(in thousands, except per share data) 2000 1999
----------- -----------
INTEREST INCOME
Interest and fees on loans $ 810,380 $ 682,495
Interest on investment securities:
Taxable 50,550 42,461
Exempt from federal income tax 619 903
----------- -----------
Total interest on investment securities 51,169 43,364
Interest on short-term investments 5,144 3,979
----------- -----------
Total interest income 866,693 729,838
INTEREST EXPENSE
Interest on deposits 237,431 153,707
Interest on short-term borrowings 48,122 44,759
Interest on medium- and long-term debt 135,472 126,984
Net interest rate swap (income)/expense 17,885 (3,887)
----------- -----------
Total interest expense 438,910 321,563
----------- -----------
Net interest income 427,783 408,275
Provision for credit losses 32,000 45,000
----------- -----------
Net interest income after provision
for credit losses 395,783 363,275
NONINTEREST INCOME
Fiduciary and investment management income 71,476 65,299
Service charges on deposit accounts 45,455 41,793
Commercial lending fees 17,874 13,675
Letter of credit fees 9,955 10,636
Securities gains/(losses) (1,431) 3,512
Net gain on sales of businesses 13,100 -
Other noninterest income 41,435 59,953
----------- -----------
Total noninterest income 197,864 194,868
NONINTEREST EXPENSES
Salaries and employee benefits 165,219 165,375
Net occupancy expense 24,841 22,011
Equipment expense 14,866 15,479
Outside processing fee expense 11,418 11,230
Other noninterest expenses 78,601 73,718
----------- -----------
Total noninterest expenses 294,945 287,813
----------- -----------
Income before income taxes 298,702 270,330
Provision for income taxes 104,484 94,649
----------- -----------
NET INCOME $ 194,218 $ 175,681
=========== ===========
Net income applicable to common stock $ 189,943 $ 171,406
=========== ===========
Basic net income per common share $ 1.21 $ 1.10
Diluted net income per common share $ 1.20 $ 1.08
Cash dividends declared on common stock $ 62,706 $ 56,281
Dividends per common share $ 0.40 $ 0.36
10
CONSOLIDATED STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Year Ended December 31,
---------------------------
(in thousands, except per share data) 2000 1999
----------- -----------
INTEREST INCOME
Interest and fees on loans $ 3,037,176 $ 2,500,978
Interest on investment securities:
Taxable 188,370 156,933
Exempt from federal income tax 2,864 4,647
----------- -----------
Total interest on investment securities 191,234 161,580
Interest on short-term investments 33,226 10,152
----------- -----------
Total interest income 3,261,636 2,672,710
INTEREST EXPENSE
Interest on deposits 809,585 590,335
Interest on short-term borrowings 211,686 179,133
Interest on medium- and long-term debt 533,853 410,367
Net interest rate swap (income)/expense 47,661 (54,266)
----------- -----------
Total interest expense 1,602,785 1,125,569
----------- -----------
Net interest income 1,658,851 1,547,141
Provision for credit losses 145,000 114,000
----------- -----------
Net interest income after provision
for credit losses 1,513,851 1,433,141
NONINTEREST INCOME
Fiduciary and investment management income 306,119 240,574
Service charges on deposit accounts 180,018 169,173
Commercial lending fees 55,918 48,887
Letter of credit fees 41,847 38,468
Securities gains/(losses) (810) 5,453
Net gain on sales of businesses 47,584 21,339
Other noninterest income 195,214 192,994
----------- -----------
Total noninterest income 825,890 716,888
NONINTEREST EXPENSES
Salaries and employee benefits 668,037 640,357
Net occupancy expense 97,750 93,728
Equipment expense 59,108 61,092
Outside processing fee expense 49,142 47,754
Other noninterest expenses 314,333 274,026
----------- -----------
Total noninterest expenses 1,188,370 1,116,957
----------- -----------
Income before income taxes 1,151,371 1,033,072
Provision for income taxes 402,045 360,483
----------- -----------
NET INCOME $ 749,326 $ 672,589
=========== ===========
Net income applicable to common stock $ 732,226 $ 655,489
=========== ===========
Basic net income per common share $ 4.68 $ 4.20
Diluted net income per common share $ 4.63 $ 4.14
Cash dividends declared on common stock $ 250,277 $ 224,837
Dividends per common share $ 1.60 $ 1.44
11
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Fourth Third Second
Quarter Quarter Quarter
(in thousands, except per share data) 2000 2000 2000
-------- -------- --------
INTEREST INCOME
Interest and fees on loans $810,380 $783,762 $749,194
Interest on investment securities 51,169 46,145 45,314
Interest on short-term investments 5,144 5,496 5,167
-------- -------- --------
Total interest income 866,693 835,403 799,675
INTEREST EXPENSE
Interest on deposits 237,431 216,764 186,219
Interest on short-term borrowings 48,122 46,313 64,792
Interest on medium- and long-term debt 135,472 140,891 127,538
Net interest rate swap (income)/expense 17,885 17,280 9,156
-------- -------- --------
Total interest expense 438,910 421,248 387,705
-------- -------- --------
Net interest income 427,783 414,155 411,970
Provision for credit losses 32,000 24,000 34,000
-------- -------- --------
Net interest income after
provision for credit losses 395,783 390,155 377,970
NONINTEREST INCOME
Fiduciary and investment management
income 71,476 78,740 76,875
Service charges on deposit accounts 45,455 45,205 45,466
Commercial lending fees 17,874 15,399 11,430
Letter of credit fees 9,955 10,023 11,175
Securities gains/(losses) (1,431) (742) 1,110
Net gain on sales of businesses 13,100 4,000 -
Other noninterest income 41,435 52,171 56,477
-------- -------- --------
Total noninterest income 197,864 204,796 202,533
NONINTEREST EXPENSES
Salaries and employee benefits 165,219 169,818 164,999
Net occupancy expense 24,841 23,847 24,108
Equipment expense 14,866 14,557 14,611
Outside processing fee expense 11,418 13,029 12,363
Other noninterest expenses 78,601 80,288 79,782
-------- -------- --------
Total noninterest expenses 294,945 301,539 295,863
-------- -------- --------
Income before income taxes 298,702 293,412 284,640
Provision for income taxes 104,484 101,571 99,089
-------- -------- --------
NET INCOME $194,218 $191,841 $185,551
======== ======== ========
Net income applicable to common stock $189,943 $187,566 $181,276
======== ======== ========
Basic net income per common share $ 1.21 $ 1.20 $ 1.16
Diluted net income per common share $ 1.20 $ 1.18 $ 1.15
Cash dividends declared on common stock $ 62,706 $ 62,601 $ 62,451
Dividends per common share $ 0.40 $ 0.40 $ 0.40
N/M-Not meaningful
12
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
First Fourth
Quarter Quarter
(in thousands, except per share data) 2000 1999
-------- --------
INTEREST INCOME
Interest and fees on loans $693,840 $682,495
Interest on investment securities 48,606 43,364
Interest on short-term investments 17,419 3,979
-------- --------
Total interest income 759,865 729,838
INTEREST EXPENSE
Interest on deposits 169,171 153,707
Interest on short-term borrowings 52,459 44,759
Interest on medium- and long-term debt 129,952 126,984
Net interest rate swap (income)/expense 3,340 (3,887)
-------- --------
Total interest expense 354,922 321,563
-------- --------
Net interest income 404,943 408,275
Provision for credit losses 55,000 45,000
-------- --------
Net interest income after
provision for credit losses 349,943 363,275
NONINTEREST INCOME
Fiduciary and investment management
income 79,028 65,299
Service charges on deposit accounts 43,892 41,793
Commercial lending fees 11,215 13,675
Letter of credit fees 10,694 10,636
Securities gains/(losses) 253 3,512
Net gain on sales of businesses 30,484 -
Other noninterest income 45,131 59,953
-------- --------
Total noninterest income 220,697 194,868
NONINTEREST EXPENSES
Salaries and employee benefits 168,001 165,375
Net occupancy expense 24,954 22,011
Equipment expense 15,074 15,479
Outside processing fee expense 12,332 11,230
Other noninterest expenses 75,662 73,718
-------- --------
Total noninterest expenses 296,023 287,813
-------- --------
Income before income taxes 274,617 270,330
Provision for income taxes 96,901 94,649
-------- --------
NET INCOME $177,716 $175,681
======== ========
Net income applicable to common stock $173,441 $171,406
======== ========
Basic net income per common share $ 1.11 $ 1.10
Diluted net income per common share $ 1.10 $ 1.08
Cash dividends declared on common stock $ 62,519 $ 56,281
Dividends per common share $ 0.40 $ 0.36
N/M-Not meaningful
13
CONSOLIDATED QUARTERLY STATEMENTS OF INCOME
Comerica Incorporated and Subsidiaries
Fourth Quarter 2000 Compared To:
Third Quarter 2000 Fourth Quarter 1999
(in thousands, except per share data) Amount Percent Amount Percent
-------- ------- -------- -------
INTEREST INCOME
Interest and fees on loans $ 26,618 3.4% $127,885 18.7%
Interest on investment securities 5,024 10.9 7,805 18.0
Interest on short-term investments (352) (6.4) 1,165 29.3
-------- ------- -------- -------
Total interest income 31,290 3.7 136,855 18.8
INTEREST EXPENSE
Interest on deposits 20,667 9.5 83,724 54.5
Interest on short-term borrowings 1,809 3.9 3,363 7.5
Interest on medium- and long-term debt (5,419) (3.8) 8,488 6.7
Net interest rate swap (income)/expense 605 3.5 21,772 N/M
-------- ------- -------- -------
Total interest expense 17,662 4.2 117,347 36.5
-------- ------- -------- -------
Net interest income 13,628 3.3 19,508 4.8
Provision for credit losses 8,000 33.3 (13,000) (28.9)
-------- ------- -------- -------
Net interest income after
provision for credit losses 5,628 1.4 32,508 8.9
NONINTEREST INCOME
Fiduciary and investment management
income (7,264) (9.2) 6,177 9.5
Service charges on deposit accounts 250 0.6 3,662 8.8
Commercial lending fees 2,475 16.1 4,199 30.7
Letter of credit fees (68) (0.7) (681) (6.4)
Securities gains/(losses) (689) N/M (4,943) N/M
Net gain on sales of businesses 9,100 N/M 13,100 N/M
Other noninterest income (10,736) (20.6) (18,518) (30.9)
-------- ------- -------- -------
Total noninterest income (6,932) (3.4) 2,996 1.5
NONINTEREST EXPENSES
Salaries and employee benefits (4,599) (2.7) (156) (0.1)
Net occupancy expense 994 4.2 2,830 12.9
Equipment expense 309 2.1 (613) (4.0)
Outside processing fee expense (1,611) (12.4) 188 1.7
Other noninterest expenses (1,687) (2.1) 4,883 6.6
-------- ------- -------- -------
Total noninterest expenses (6,594) (2.2) 7,132 2.5
-------- ------- -------- -------
Income before income taxes 5,290 1.8 28,372 10.5
Provision for income taxes 2,913 2.9 9,835 10.4
-------- ------- -------- -------
NET INCOME $ 2,377 1.2% $ 18,537 10.6%
======== ======= ======== =======
Net income applicable to common stock $ 2,377 1.3% $ 18,537 10.8%
======== ======= ======== =======
Basic net income per common share $ 0.01 0.8% $ 0.11 10.0%
Diluted net income per common share $ 0.02 1.7% $ 0.12 11.1%
Cash dividends declared on common stock $ 105 0.2% $ 6,425 11.4%
Dividends per common share $ - -% $ 0.04 11.1%
N/M-Not meaningful
14
QUARTERLY SELECTED ASSET QUALITY DATA
Comerica Incorporated and Subsidiaries
2000
---------------------------------------
(in thousands) 4th QTR 3rd QTR 2nd QTR
-------- -------- --------
ALLOWANCE FOR CREDIT LOSSES
Beginning period balance $523,575 $520,582 $502,954
Loans charged off:
Commercial (20,429) (23,015) (15,009)
International - (580) (2,851)
Commercial mortgage (9) (64) (437)
Residential mortgage (84) (2) (48)
Consumer (1,022) (793) (2,898)
Lease financing (477) (7) (81)
-------- -------- --------
Total loans charged off (22,021) (24,461) (21,324)
Recoveries on loans previously charged off:
Commercial 2,662 1,724 2,537
Real estate construction 119 7 7
Commercial mortgage 237 18 545
Residential mortgage - - -
Consumer 1,505 1,687 1,859
Lease financing 30 36 37
-------- -------- --------
Total recoveries 4,553 3,472 4,985
-------- -------- --------
Net loans charged off (17,468) (20,989) (16,339)
Provision for credit losses 32,000 24,000 34,000
Foreign currency translation adjustment 3 (18) (33)
-------- -------- --------
Balance at period end $538,110 $523,575 $520,582
======== ======== ========
As a percent of total loans 1.49% 1.50% 1.49%
Net loans charged off to average
total loans 0.20 0.24 0.19
NONPERFORMING ASSETS
Nonaccrual loans:
Commercial $189,070 $177,011 $178,862
International 57,929 36,770 25,242
Real estate construction 4,542 4,947 248
Commercial mortgage 15,528 16,790 16,728
Residential mortgage 166 503 505
-------- -------- --------
Total nonaccrual loans 267,235 236,021 221,585
Reduced-rate loans 348 299 5,806
-------- -------- --------
Total nonperforming loans 267,583 236,320 227,391
Other real estate 5,052 4,181 10,089
-------- -------- --------
Total nonperforming assets $272,635 $240,501 $237,480
======== ======== ========
Nonperforming loans as a percentage
of total loans 0.74% 0.68% 0.65%
Nonperforming assets as a percentage of
total loans and other real estate 0.76 0.69 0.68
Allowance for credit losses as a
percentage of total nonperforming
assets 197 218 219
Loans past due 90 days or more $ 35,820 $ 53,338 $ 38,701
15
QUARTERLY SELECTED ASSET QUALITY DATA
Comerica Incorporated and Subsidiaries
2000 1999
-------- --------
(in thousands) 1st QTR 4th QTR
-------- --------
ALLOWANCE FOR CREDIT LOSSES
Beginning period balance $476,470 $463,451
Loans charged off:
Commercial (17,195) (34,329)
International (7,750) (3,000)
Commercial mortgage - (223)
Residential mortgage - (23)
Consumer (6,309) (7,019)
Lease financing (477) (32)
-------- --------
Total loans charged off (31,731) (44,626)
Recoveries on loans previously charged off:
Commercial 1,152 10,226
Real estate construction 13 7
Commercial mortgage 112 305
Residential mortgage - 20
Consumer 1,867 2,058
Lease financing 78 20
-------- --------
Total recoveries 3,222 12,636
-------- --------
Net loans charged off (28,509) (31,990)
Provision for credit losses 55,000 45,000
Foreign currency translation adjustment (7) 9
-------- --------
Balance at period end $502,954 $476,470
======== ========
As a percent of total loans 1.49% 1.46%
Net loans charged off to average
total loans 0.34 0.39
NONPERFORMING ASSETS
Nonaccrual loans:
Commercial $127,974 $110,606
International 36,482 44,046
Real estate construction 249 249
Commercial mortgage 8,289 9,620
Residential mortgage 509 572
-------- --------
Total nonaccrual loans 173,503 165,093
Reduced-rate loans 6,905 7,347
-------- --------
Total nonperforming loans 180,408 172,440
Other real estate 10,422 9,595
-------- --------
Total nonperforming assets $190,830 $182,035
======== ========
Nonperforming loans as a percentage
of total loans 0.53% 0.53%
Nonperforming assets as a percentage of
total loans and other real estate 0.56 0.56
Allowance for credit losses as a
percentage of total nonperforming
assets 264 262
Loans past due 90 days or more $ 39,523 $ 47,676
16
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
-----------------------------------------------------------
December 31, 2000 September 30, 2000
---------------------------- ---------------------------
Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate
---------------------------- ---------------------------
Commercial loans $22,246 $515.8 9.22% $21,936 $501.2 9.09%
International loans 2,547 61.8 9.65 2,537 59.2 9.28
Real estate construction loans 2,233 54.4 9.69 2,108 50.0 9.44
Commercial mortgage loans 5,185 116.6 8.95 5,073 113.7 8.92
Residential mortgage loans 809 15.6 7.72 825 15.8 7.67
Consumer loans 1,426 33.5 9.36 1,402 32.2 9.15
Lease financing 868 13.2 6.08 798 12.2 6.13
---------------------------- ---------------------------
Total loans 35,314 810.9 9.14 34,679 784.3 9.00
Investment securities available
for sale (1) 2,784 51.5 7.35 2,607 46.5 7.01
Short-term investments 173 5.1 11.97 209 5.6 10.50
---------------------------- ---------------------------
Total earning assets 38,271 867.5 9.02 37,495 836.4 8.87
Cash and due from banks 1,540 1,497
Allowance for credit losses (533) (529)
Other assets 2,063 2,043
------- -------
Total Assets $41,341 $40,506
======= =======
Money market and NOW accounts $ 8,140 71.0 3.47 $ 7,828 64.1 3.26
Savings deposits 1,330 5.8 1.73 1,373 5.9 1.71
Certificates of deposit 9,625 148.4 6.13 8,947 134.2 5.97
Foreign office time deposits 492 12.2 9.88 567 12.6 8.80
---------------------------- ---------------------------
Total interest-bearing
deposits 19,587 237.4 4.82 18,715 216.8 4.61
Federal funds purchased
and securities sold under
agreements to repurchase 2,336 40.4 6.88 1,928 33.6 6.94
Other borrowed funds 473 7.8 6.48 772 12.7 6.52
Medium- and long-term debt 7,921 135.4 6.81 8,270 140.9 6.78
Other (2) - 17.9 - - 17.3 -
---------------------------- ---------------------------
Total interest-bearing
sources 30,317 438.9 5.76 29,685 421.3 5.65
Noninterest-bearing deposits 6,522 6,500
Other liabilities 570 543
Preferred stock 250 250
Common shareholders' equity 3,682 3,528
------- -------
Total Liabilities and
Shareholders' Equity $41,341 $40,506
======= =======
Net interest income/Rate
spread (FTE) $428.6 3.26 $415.1 3.22
====== ======
FTE adjustment $ 0.8 $ 1.0
====== ======
Impact of net noninterest-bearing
sources of funds 1.20 1.18
---- ----
Net interest margin as a percent of
average earning assets (FTE) 4.46% 4.40%
==== ====
(1) The average rate for investment securities available for sale was computed
using average historical cost.
(2) Net interest rate swap (income)/expense.
17
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Three Months Ended
----------------------------
December 31, 1999
----------------------------
Average Average
(dollar amounts in millions) Balance Interest Rate
----------------------------
Commercial loans $20,450 $420.4 8.16%
International loans 2,537 53.5 8.37
Real estate construction loans 1,658 36.3 8.70
Commercial mortgage loans 4,623 98.4 8.44
Residential mortgage loans 870 16.4 7.56
Consumer loans 1,825 46.1 10.07
Lease financing 734 11.9 6.48
----------------------------
Total loans 32,697 683.0 8.29
Investment securities available
for sale (1) 2,461 43.9 7.01
Short-term investments 139 4.0 11.51
----------------------------
Total earning assets 35,297 730.9 8.21
Cash and due from banks 1,517
Allowance for credit losses (468)
Other assets 1,848
-------
Total Assets $38,194
=======
Money market and NOW accounts $ 7,813 56.3 2.86
Savings deposits 1,464 5.9 1.59
Certificates of deposit 6,448 79.9 4.92
Foreign office time deposits 596 11.6 7.71
----------------------------
Total interest-bearing
deposits 16,321 153.7 3.74
Federal funds purchased
and securities sold under
agreements to repurchase 2,253 33.0 5.81
Other borrowed funds 865 11.7 5.39
Medium- and long-term debt 8,535 127.0 5.91
Other (2) - (3.8) -
----------------------------
Total interest-bearing
sources 27,974 321.6 4.56
Noninterest-bearing deposits 6,309
Other liabilities 487
Preferred stock 250
Common shareholders' equity 3,174
-------
Total Liabilities and
Shareholders' Equity $38,194
=======
Net interest income/Rate
spread (FTE) $409.3 3.65
======
FTE adjustment $ 1.1
======
Impact of net noninterest-bearing
sources of funds 0.95
-----
Net interest margin as a percent of
average earning assets (FTE) 4.60%
=====
(1) The average rate for investment securities available for sale was computed
using average historical cost.
(2) Net interest rate swap (income)/expense.
18
ANALYSIS OF NET INTEREST INCOME (FTE)
Comerica Incorporated and Subsidiaries
Year Ended
-----------------------------------------------------------
December 31, 2000 December 31, 1999
---------------------------- ---------------------------
Average Average Average Average
(dollar amounts in millions) Balance Interest Rate Balance Interest Rate
---------------------------- ---------------------------
Commercial loans $21,738 $1,934.4 8.90% $19,681 $1,515.7 7.70%
International loans 2,552 235.1 9.21 2,627 206.4 7.86
Real estate construction loans 2,009 188.3 9.37 1,364 115.8 8.48
Commercial mortgage loans 5,051 443.6 8.78 4,461 368.0 8.25
Residential mortgage loans 832 63.6 7.64 929 69.4 7.47
Consumer loans 1,395 126.7 9.08 1,816 181.3 9.98
Lease financing 799 47.5 5.95 682 46.6 6.84
---------------------------- ---------------------------
Total loans 34,376 3,039.2 8.84 31,560 2,503.2 7.93
Investment securities available
for sale (1) 2,670 192.8 7.10 2,403 164.1 6.76
Short-term investments 298 33.3 11.20 116 10.3 8.85
---------------------------- ---------------------------
Total earning assets 37,344 3,265.3 8.73 34,079 2,677.6 7.85
Cash and due from banks 1,484 1,518
Allowance for credit losses (514) (463)
Other assets 2,006 1,826
------- -------
Total Assets $40,320 $36,960
======= =======
Money market and NOW accounts $ 7,928 253.7 3.20 $ 7,664 207.8 2.71
Savings deposits 1,380 22.8 1.65 1,513 24.0 1.59
Certificates of deposit 8,165 470.1 5.76 6,399 310.0 4.84
Foreign office time deposits 814 63.0 7.75 688 48.5 7.05
---------------------------- ---------------------------
Total interest-bearing
deposits 18,287 809.6 4.43 16,264 590.3 3.63
Federal funds purchased
and securities sold under
agreements to repurchase 2,460 162.4 6.60 2,823 145.7 5.16
Other borrowed funds 803 49.3 6.14 659 33.4 5.07
Medium- and long-term debt 8,125 533.8 6.57 7,289 410.4 5.63
Other (2) - 47.7 - - (54.2) -
---------------------------- ---------------------------
Total interest-bearing
sources 29,675 1,602.8 5.40 27,035 1,125.6 4.16
Noninterest-bearing deposits 6,405 6,255
Other liabilities 530 421
Preferred stock 250 250
Common shareholders' equity 3,460 2,999
------- -------
Total Liabilities and
Shareholders' Equity $40,320 $36,960
======= =======
Net interest income/Rate
spread (FTE) $1,662.5 3.33 $1,552.0 3.69
======== ========
FTE adjustment $ 3.7 $ 4.9
======== ========
Impact of net noninterest-bearing
sources of funds 1.12 0.86
---- ----
Net interest margin as a percent of
average earning assets (FTE) 4.45% 4.55%
==== ====
(1) The average rate for investment securities available for sale was computed
using average historical cost.
(2) Net interest rate swap (income)/expense.
19
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
December 31, September 30, June 30,
(In thousands, except per share data) 2000 2000 2000
----------- ------------ -----------
Commercial loans:
Floor plan $ 2,063,619 $ 1,559,050 $ 1,853,836
Other 20,665,845 20,511,456 20,316,032
----------- ----------- -----------
Total commercial 22,729,464 22,070,506 22,169,868
International loans 2,571,156 2,483,910 2,612,539
Real estate construction loans 2,310,399 2,197,799 2,046,117
Commercial mortgage loans 5,271,078 5,095,248 5,060,847
Residential mortgage loans 806,561 816,960 827,545
Consumer loans:
Credit card 14,513 13,643 21,923
Home equity 976,100 954,427 938,191
Other consumer 446,160 447,819 439,687
----------- ----------- -----------
Total consumer 1,436,773 1,415,889 1,399,801
Lease financing:
Automobile 5,412 7,419 11,469
Equipment 929,502 847,580 780,081
----------- ----------- -----------
Total lease financing 934,914 854,999 791,550
----------- ----------- -----------
Total loans $36,060,345 $34,935,311 $34,908,267
=========== =========== ===========
Goodwill $ 364,806 $ 372,811 $ 378,870
Core deposit intangible 7,883 9,056 10,229
Other intangible assets 1,313 1,411 1,509
Loan servicing rights 3,558 3,306 3,324
Amortization of intangibles (quarterly) 9,340 9,388 9,413
Leverage ratio* 8.91% 8.71% 8.40%
Tier 1 risk-based capital ratio* 7.15 7.03 6.82
Total risk-based capital ratio* 11.07 11.08 10.42
Book value per share $ 23.94 $ 22.95 $ 22.01
Market value for the quarter:
High $ 61.13 $ 59.44 $ 54.38
Low 47.19 45.00 39.88
Close 59.38 58.44 44.88
Return on average common equity 20.64% 21.26% 21.47%
Return on average assets 1.88 1.89 1.85
Efficiency ratio 46.97 48.59 48.16
Number of commercial banking offices 338 331 330
Number of employees-full time equivalent 10,000 9,990 10,235
* December 31, 2000 ratios estimated
20
CONSOLIDATED STATISTICAL DATA
Comerica Incorporated and Subsidiaries
March 31, December 31,
(In thousands, except per share data) 2000 1999
----------- -----------
Commercial loans:
Floor plan $ 1,815,606 $ 1,652,548
Other 19,656,538 19,002,110
----------- -----------
Total commercial 21,472,144 20,654,658
International loans 2,565,966 2,573,003
Real estate construction loans 1,871,592 1,709,261
Commercial mortgage loans 4,981,168 4,774,052
Residential mortgage loans 849,359 870,029
Consumer loans:
Credit card 18,622 15,729
Home equity 901,107 893,348
Other consumer 449,004 441,648
----------- -----------
Total consumer 1,368,733 1,350,725
Lease financing:
Automobile 16,088 21,438
Equipment 739,210 740,112
----------- -----------
Total lease financing 755,298 761,550
----------- -----------
Total loans $33,864,260 $32,693,278
=========== ===========
Goodwill $ 386,318 $ 316,469
Core deposit intangible 11,481 12,767
Other intangible assets 1,431 1,587
Loan servicing rights 3,364 4,605
Amortization of intangibles (quarterly) 8,522 8,504
Leverage ratio* 8.24% 8.39%
Tier 1 risk-based capital ratio* 6.88 6.95
Total risk-based capital ratio* 10.63 10.72
Book value per share $ 21.20 $ 20.60
Market value for the quarter:
High $ 46.25 $ 61.38
Low 32.94 44.00
Close 41.88 46.69
Return on average common equity 21.35% 21.60%
Return on average assets 1.81 1.84
Efficiency ratio 47.26 47.91
Number of commercial banking offices 331 332
Number of employees-full time equivalent 10,204 10,234
* December 31, 2000 ratios estimated
21
PARENT COMPANY ONLY BALANCE SHEETS
Comerica Incorporated
December 31, September 30, December 31,
(in thousands, except share data) 2000 2000 1999
----------- ------------ -----------
ASSETS
Cash and due from banks $ 9,918 $ 1,763 $ 80
Time deposits with banks 112,100 91,100 69,900
Investment securities available
for sale 47,262 31,327 27,505
Investment in subsidiaries,
principally banks 4,141,686 4,038,723 3,669,435
Premises and equipment 3,391 3,684 4,335
Other assets 66,009 64,010 55,900
----------- ----------- -----------
TOTAL ASSETS $ 4,380,366 $ 4,230,607 $ 3,827,155
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Commercial paper $ 79,985 $ 94,982 $ 74,877
Long-term debt 157,414 157,698 158,543
Advances from nonbanking subsidiaries 4,453 - 3,882
Other liabilities 131,248 132,237 115,209
----------- ----------- -----------
Total liabilities 373,100 384,917 352,511
Nonredeemable preferred stock
- $50 stated value:
Authorized - 5,000,000 shares
Issued - 5,000,000 shares at
12/31/00, 9/30/00 and 12/31/99 250,000 250,000 250,000
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 157,233,107 shares at
12/31/00, 9/30/00 and 12/31/99 786,166 786,166 786,166
Capital surplus 43,354 39,765 35,092
Accumulated other comprehensive income 10,565 (14,879) (31,702)
Retained earnings 2,937,296 2,821,076 2,485,204
Deferred compensation (3,704) (4,047) (2,955)
Less cost of common stock in
treasury - 289,397 shares at
12/31/00, 571,201 shares at
9/30/00 and 715,496 shares
at 12/31/99 (16,411) (32,391) (47,161)
----------- ----------- -----------
Total shareholders' equity 4,007,266 3,845,690 3,474,644
----------- ----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 4,380,366 $ 4,230,607 $ 3,827,155
=========== =========== ===========
22
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Comerica Incorporated and Subsidiaries
Nonredeem- Accumulated
able Other Total
(in thousands, except Preferred Common Capital Comprehensive Retained Deferred Treasury Shareholders'
share data) Stock Stock Surplus Income Earnings Compensation Stock Equity
--------- -------- ------- -------- ---------- -------- -------- ----------
BALANCES AT JANUARY 1, 1999 $250,000 $786,165 $24,649 $ (6,455) $2,086,589 $(5,202) $(89,133) $3,046,613
Net income for 1999 - - - - 672,589 - - 672,589
Other comprehensive income,
net of tax - - - (25,247) - - - (25,247)
----------
Total comprehensive income - - - - - - - 647,342
Cash dividends declared:
Preferred stock - - - - (17,100) - - (17,100)
Common stock - - - - (224,837) - - (224,837)
Purchase of 44,082 shares
of common stock - - - - - - (2,885) (2,885)
Net issuance of common stock
under employee stock plans - 1 10,443 - (32,037) 4 44,857 23,268
Amortization of deferred
compensation - - - - - 2,243 - 2,243
-------- -------- ------- -------- ---------- ------- -------- ----------
BALANCES AT DECEMBER 31, 1999 $250,000 $786,166 $35,092 $(31,702) $2,485,204 $(2,955) $(47,161) $3,474,644
======== ======== ======= ======== ========== ======= ======== ==========
BALANCES AT JANUARY 1, 2000 $250,000 $786,166 $35,092 $(31,702) $2,485,204 $(2,955) $(47,161) $3,474,644
Net income for 2000 - - - - 749,326 - - 749,326
Other comprehensive income,
net of tax - - - 42,267 - - - 42,267
----------
Total comprehensive income - - - - - - - 791,593
Cash dividends declared:
Preferred stock - - - - (17,100) - - (17,100)
Common stock - - - - (250,277) - - (250,277)
Purchase of 353,547 shares
of common stock - - - - - - (14,108) (14,108)
Net issuance of common stock
under employee stock plans - - 8,262 - (29,857) (2,645) 44,858 20,618
Amortization of deferred
compensation - - - - - 1,896 - 1,896
-------- -------- ------- -------- ---------- ------- -------- ----------
BALANCES AT DECEMBER 31, 2000 $250,000 $786,166 $43,354 $ 10,565 $2,937,296 $(3,704) $(16,411) $4,007,266
======== ======== ======= ======== ========== ======= ======== ==========