1 EXHIBIT - 99.1 COMERICA REPORTS EARNINGS FOR SECOND QUARTER 2001 % change Q2 '01 Q2 '00 from 2000 ------ ------- --------- Diluted EPS $ 1.13 $ 1.12 1 % Diluted EPS (excluding restructuring) 1.18 1.12 5 Net Income (in millions) $ 208 $ 206 1 % Net Income (excluding restructuring) 216 206 5 Return on Common Equity 18.21 % 20.80 % Return on Assets 1.69 1.77 Efficiency Ratio (excluding restructuring) 49.00 49.95 Net Interest Margin 4.65 4.65 DETROIT/JULY 17, 2001 -- Comerica Incorporated (NYSE: CMA) today reported second quarter 2001 earnings per share of $1.13, compared with $1.12 for the 2000 second quarter. Net income was $208 million, compared with $206 million for 2000. The company's return on common equity was 18.21 percent and its return on assets was 1.69 percent, compared with 20.80 percent and 1.77 percent, respectively, for the 2000 second quarter. All prior period financial information has been restated to reflect the acquisition of Imperial Bancorp, which was completed during the first quarter 2001 and accounted for as a pooling-of-interests. Excluding restructuring charges of $14 million ($8 million or $0.05 per share, net of taxes) related to the Imperial acquisition, second quarter net income was $216 million or $1.18 per share. Comerica's return on common equity and return on assets, excluding the restructuring charges, were 18.94 percent and 1.75 percent, respectively. -more- 2 COMERICA REPORTS EARNINGS FOR SECOND QUARTER 2001 - 2 Net income for the first six months of 2001 was $1.63 per share or $302 million, compared with $2.20 per share or $403 million for the same period of 2000. Excluding restructuring charges of $103 million after tax ($0.57 per share) and the effect of a first quarter one-time $34 million after tax ($0.19 per share) charge related to long-term incentive plans at an unconsolidated subsidiary of Munder Capital Management (the company's investment management subsidiary), net income for the first half was $439 million or $2.39 per share, an increase in net income of 9 percent over the same period of 2000. Excluding these charges, Comerica's return on common equity was 19.39 percent and return on assets was 1.78 percent for the first six months of 2001, compared with 20.73 percent and 1.75 percent, respectively, for the first six months of 2000. "Comerica's second quarter financial results reflect our continuing ability, despite a slowing economy, to generate business loans and effectively manage risk, while focusing on efficiency," said Eugene A. Miller, chairman, president and chief executive officer. "Our integration of Imperial remains on track to be completed by the first quarter of 2002 and we continue to be well positioned to leverage our principal strengths: business lending and asset gathering." NET INTEREST INCOME Net interest income for the second quarter of 2001 was $527 million, an increase of $30 million or 6 percent from the same period last year. This increase was due to growth in earning assets and a stable net interest margin supported by strong growth in interest-free deposits. The net interest margin was 4.65 percent for the second quarter of 2001 and 2000, compared with 4.55 percent in the first quarter of 2001. NONINTEREST INCOME Noninterest income was $203 million for the second quarter of 2001, a decrease of $39 million or 16 percent from the same quarter last year. The second quarter 2000 noninterest income included a $6 million nonrecurring gain from the demutualization of an insurance carrier. Excluding the effects of gains and losses on securities, warrant income, net gains on the sales of businesses and the nonrecurring gain mentioned above, noninterest income decreased 8 percent in the second quarter of 2001, compared with the second quarter of 2000. This reflects a $19 million decrease in investment advisory revenue from the company's Munder Capital Management subsidiary, as the market values of technology-related stocks declined from their record highs last year. At June 30, 2001, assets under management at Munder were $44 billion, including $3.3 billion in the NetNet, International NetNet and Future Tech funds, compared with $58 billion and $11.2 billion, respectively, for the second quarter of 2000. Despite weakness in stock market-related segments, strong gains were recorded in commercial lending fees (14 percent) and deposit fees (10 percent), when compared with the second quarter of 2000. - more - 3 COMERICA REPORTS EARNINGS FOR SECOND QUARTER 2001 - 3 NONINTEREST EXPENSES Noninterest expenses were $373 million in the second quarter 2001, which included $14 million of restructuring charges related to the Imperial acquisition. This was an increase of $7 million over the comparable quarter in 2000. Excluding the previously announced restructuring charge and a $6 million contribution to Comerica's charitable foundation in the second quarter of 2000, noninterest expenses decreased $2 million compared with the same quarter last year. Ongoing cost discipline and revenue-related incentives contributed to the decline. Comerica's efficiency ratio, excluding the restructuring charge, was 49 percent for the second quarter of 2001 and 50 percent for the second quarter of 2000. CREDIT QUALITY The provision for credit losses was $37 million in the second quarter of 2001, a decrease of $20 million compared with the second quarter of 2000. Net charge-offs for the quarter were $37 million or 0.35 percent of average total loans, compared with $37 million or 0.38 percent in the second quarter of 2000. The allowance for credit losses as a percentage of total loans at June 30, 2001 was 1.57 percent, unchanged compared with March 31, 2001 and up from 1.54 percent at June 30, 2000. Nonperforming assets were $480 million or 1.17 percent of loans and other real estate at June 30, 2001, compared with $476 million or 1.16 percent at March 31, 2001, and $296 million and 0.76 percent at June 30, 2000. For the year 2001, net charge-offs are currently expected to range from 35-to-40 basis points, while nonperforming assets are projected to range from 115-to-130 basis points of total loans and other real estate. OUTLOOK FOR 2001 Confirming the guidance after the end of the first quarter, earnings for the full year 2001 are expected to range between $4.75 and $4.95 per share. This earnings guidance is based on an assessment of current economic conditions, the level of equity markets and interest rates, progress toward business objectives and other factors, and excludes: - - the restructuring charge for the Imperial merger, of which $0.57 per share has been incurred year to date; and, - - the effect of a one-time $0.19 per share charge in the first quarter 2001 related to long-term incentive plans at an unconsolidated subsidiary of Munder. BALANCE SHEET Assets totaled $49 billion at June 30, 2001, compared with $48 billion at June 30, 2000, while common shareholders' equity was $4.5 billion at June 30, 2001, compared with $4.0 billion one year earlier. Shares of common stock outstanding were 178 million at June 30, 2001, compared with 177 million a year ago. Total loans were $41 billion at June 30, 2001, compared with $39 billion a year ago. Total deposits were $37 billion at June 30, 2001, compared with $32 billion at June 30, 2000. - more - 4 COMERICA REPORTS EARNINGS FOR SECOND QUARTER 2001 - 4 CONFERENCE CALL Comerica will host a conference call to review the second quarter 2001 financial results at 8:30 a.m. ET Tuesday, July 17, 2001. Interested parties may access the conference call by calling (706) 679-5261 (event ID No. 1163093). The call also is accessible via the Internet by clicking on "Investor Relations" at www.comerica.com. A replay of the conference call will be available approximately two hours following the call through July 24, 2001. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 1163093). The replay also can be accessed through the Internet by clicking on "Investor Relations" at www.comerica.com. 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 also operates banking subsidiaries in Canada and Mexico. FORWARD LOOKING STATEMENT Matters discussed in this news release contain certain forward-looking statements that are based on management's beliefs and assumptions based on information currently known to Comerica's management. 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 the Company's revenue, earnings or other measures of economic performance including statements of profitability business segments and subsidiaries, estimates of credit quality trends and current integration. Such statements reflect the view of Comerica's management, as of the date of this conference call with respect to future events and are subject to risks and uncertainties, such as changes in Comerica's plans, objectives, expectations and intentions and do not purport to speak as of any other date. Should one or more of these risks materialize or should underlying beliefs of assumptions prove incorrect, the Company's actual results could differ materially from those discussed in this conference call. Factors that could cause or contribute to such differences are changes in interest rates, changes in the accounting treatment of any particular item, the entry of new competitors into the banking industry as a result of the enactment of the Gramm-Leach-Bliley Act of 1999, changes in general economic conditions and related credit and market conditions, difficulties in integrating Imperial Bancorp or retaining key personnel and other factors discussed in Comerica's filings with the Securities and Exchange Commission. 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. Without limiting the foregoing, Comerica undertakes no obligation to update earnings guidance including any of the factors that influence earnings. MEDIA CONTACTS: INVESTOR CONTACTS: Sharon R. McMurray Judith S. Love (313) 222-4881 (313) 222-2840 Wayne J. Mielke Judith M. Chavis (313) 222-4732 (313) 222-6317 5 CONSOLIDATED FINANCIAL HIGHLIGHTS Comerica Incorporated and Subsidiaries Three Months Ended (in thousands, except per share data, June 30, March 31, June 30, average balances and ratios) 2001 2001 2000 ---------- ---------- ---------- PER SHARE AND COMMON STOCK DATA Diluted net income $ 1.13 $ 0.50 $ 1.12 Cash dividends declared 0.44 0.44 0.40 Common shareholders' equity (at period end) 25.32 24.80 22.34 Average diluted shares 180,387 180,248 179,393 KEY RATIOS Return on average common equity 18.21% 8.11% 20.80% Return on average assets 1.69% 0.76% 1.77% Average common equity as a percentage of average assets 9.08% 8.93% 8.34% Core capital ratio (June 2001 estimated) 7.56% 7.41% 7.22% Total capital ratio (June 2001 estimated) 11.40% 11.19% 10.78% Leverage ratio (June 2001 estimated) 8.84% 8.76% 8.53% AVERAGE BALANCES (in millions) Commercial loans (including lease financing) $ 28,090 $ 27,764 $ 26,124 International loans 2,729 2,603 2,527 Real estate construction loans 3,056 2,955 2,449 Commercial mortgage loans 5,609 5,500 5,133 Residential mortgage loans 788 800 835 Consumer loans 1,479 1,478 1,419 -------- -------- -------- Total loans $ 41,751 $ 41,100 $ 38,487 Earning assets 45,540 45,615 43,027 Total assets 49,388 49,331 46,501 Interest-bearing deposits 25,008 24,167 20,467 Noninterest-bearing deposits 10,219 9,370 9,073 Total interest-bearing liabilities 33,670 34,469 32,654 Common shareholders' equity 4,485 4,407 3,880 NET INTEREST INCOME Net interest income (fully taxable equivalent basis) $528,325 $513,340 $498,651 Fully taxable equivalent adjustment 944 1,048 958 Net interest margin 4.65% 4.55% 4.65% CREDIT QUALITY Nonaccrual loans $470,661 $470,478 $277,729 Reduced-rate loans 248 275 7,789 Other real estate 9,579 5,577 10,915 Total nonperforming assets 480,488 476,330 296,433 Loans 90 days past due 83,114 55,260 38,769 Gross charge-offs 46,544 45,327 44,271 Recoveries 9,751 9,916 7,339 Net charge-offs 36,793 35,411 36,932 Allowance for credit losses as a percentage of total loans 1.57% 1.57% 1.54% Nonperforming assets as a percentage of total loans and other real estate 1.17% 1.16% 0.76% Net loans charged off as a percentage of average total loans 0.35% 0.34% 0.38% Allowance for credit losses as a percentage of total nonperforming assets 134% 135% 203% ADDITIONAL DATA Goodwill $349,099 $356,925 $380,726 Core deposit intangible 6,482 7,176 10,229 Other intangibles 1,160 1,215 3,973 Loan servicing rights 7,923 8,470 6,851 Deferred mutual fund distribution costs 53,314 54,045 105,904 Amortization of intangibles 8,619 8,685 9,622 6 CONSOLIDATED FINANCIAL HIGHLIGHTS Comerica Incorporated and Subsidiaries Six Months Ended (in thousands, except per share data, June 30, average balances and ratios) 2001 2000 ---------- ---------- PER SHARE AND COMMON STOCK DATA Diluted net income $1.63 $2.20 Cash dividends declared 0.88 0.80 Common shareholders' equity (at period end) Average diluted shares 180,342 179,286 KEY RATIOS Return on average common equity 13.20% 20.73% Return on average assets 1.22% 1.75% Average common equity as a percentage of average assets 9.01% 8.26% Core capital ratio (June 2001 estimated) Total capital ratio (June 2001 estimated) Leverage ratio (June 2001 estimated) AVERAGE BALANCES (in millions) Commercial loans (including lease financing) $ 27,928 $ 25,610 International loans 2,666 2,562 Real estate construction loans 3,006 2,365 Commercial mortgage loans 5,554 5,067 Residential mortgage loans 794 847 Consumer loans 1,479 1,414 ---------- ---------- Total loans $ 41,427 $ 37,865 Earning assets 45,577 42,670 Total assets 49,359 46,100 Interest-bearing deposits 24,590 20,341 Noninterest-bearing deposits 9,797 8,843 Total interest-bearing liabilities 34,067 32,540 Common shareholders' equity 4,446 3,806 NET INTEREST INCOME Net interest income (fully taxable equivalent basis) $1,041,666 $ 983,205 Fully taxable equivalent adjustment 1,993 1,917 Net interest margin 4.60% 4.62% CREDIT QUALITY Nonaccrual loans Reduced-rate loans Other real estate Total nonperforming assets Loans 90 days past due Gross charge-offs $ 91,871 $ 81,392 Recoveries 19,667 10,908 Net charge-offs 72,204 70,484 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 0.35% 0.37% Allowance for credit losses as a percentage of total nonperforming assets ADDITIONAL DATA Goodwill Core deposit intangible Other intangibles Loan servicing rights Deferred mutual fund distribution costs Amortization of intangibles $ 17,304 $ 18,353 7 CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries June 30, March 31, (in thousands, except share data) 2001 2001 ----------- ----------- ASSETS Cash and due from banks $ 1,763,867 $ 2,008,803 Short-term investments 257,380 1,990,563 Investment securities available for sale 4,025,903 3,207,455 Commercial loans 26,155,382 26,373,429 International loans 2,751,192 2,653,902 Real estate construction loans 3,117,988 2,973,895 Commercial mortgage loans 5,681,003 5,570,134 Residential mortgage loans 793,631 793,075 Consumer loans 1,490,809 1,472,015 Lease financing 1,123,408 1,088,908 ----------- ----------- Total loans 41,113,413 40,925,358 Less allowance for credit losses (644,877) (644,556) ----------- ----------- Net loans 40,468,536 40,280,802 Premises and equipment 356,328 360,145 Customers' liability on acceptances outstanding 27,538 26,917 Accrued income and other assets 2,388,708 2,395,541 ----------- ----------- TOTAL ASSETS $49,288,260 $50,270,226 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $11,797,991 $11,530,699 Interest-bearing deposits 25,247,662 25,255,219 ----------- ----------- Total deposits 37,045,653 36,785,918 Short-term borrowings 1,427,333 679,802 Acceptances outstanding 27,538 26,917 Accrued expenses and other liabilities 730,028 819,774 Medium- and long-term debt 5,306,843 7,289,301 ----------- ----------- Total liabilities 44,537,395 45,601,712 Nonredeemable preferred stock - $50 stated value: Authorized - 5,000,000 shares Issued - 5,000,000 shares at 6/30/01, 3/31/01, 12/31/00 and 6/30/00 250,000 250,000 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 178,749,198 shares at 6/30/01, 178,337,648 shares at 3/31/01, 177,703,678 shares at 12/31/00, and 177,777,268 shares at 6/30/00 893,746 891,688 Capital surplus 340,232 326,134 Unearned employee stock ownership plan - 167,566 shares at 6/30/01, 176,462 at 3/31/01 and 12/31/00 and 48,568 shares at 6/30/00 (6,408) (6,750) Accumulated other comprehensive income 119,135 127,490 Retained earnings 3,211,460 3,086,915 Deferred compensation (11,251) (6,963) Less cost of common stock in treasury - 855,492 shares at 6/30/01, 289,387 shares at 12/31/00 and 761,318 shares at 6/30/00 (46,049) - ----------- ----------- Total shareholders' equity 4,750,865 4,668,514 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $49,288,260 $50,270,226 =========== =========== 8 CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries December 31, June 30, (in thousands, except share data) 2000 2000 ----------- ----------- ASSETS Cash and due from banks $ 1,930,682 $ 2,241,928 Short-term investments 1,730,158 1,670,302 Investment securities available for sale 3,890,725 3,693,395 Commercial loans 26,009,336 25,401,266 International loans 2,571,156 2,612,539 Real estate construction loans 2,915,168 2,576,986 Commercial mortgage loans 5,360,601 5,145,662 Residential mortgage loans 807,064 828,092 Consumer loans 1,477,135 1,438,371 Lease financing 1,029,164 858,065 ----------- ----------- Total loans 40,169,624 38,860,981 Less allowance for credit losses (608,110) (601,117) ----------- ----------- Net loans 39,561,514 38,259,864 Premises and equipment 364,246 365,650 Customers' liability on acceptances outstanding 26,668 23,964 Accrued income and other assets 2,030,063 1,896,539 ----------- ----------- TOTAL ASSETS $49,534,056 $48,151,642 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $10,188,475 $10,213,363 Interest-bearing deposits 23,665,808 21,332,018 ----------- ----------- Total deposits 33,854,283 31,545,381 Short-term borrowings 2,093,381 3,368,570 Acceptances outstanding 26,668 23,964 Accrued expenses and other liabilities 800,386 632,998 Medium- and long-term debt 8,259,179 8,377,915 ----------- ----------- Total liabilities 45,033,897 43,948,828 Nonredeemable preferred stock - $50 stated value: Authorized - 5,000,000 shares Issued - 5,000,000 shares at 6/30/01, 3/31/01, 12/31/00 and 6/30/00 250,000 250,000 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 178,749,198 shares at 6/30/01, 178,337,648 shares at 3/31/01, 177,703,678 shares at 12/31/00, and 177,777,268 shares at 6/30/00 888,519 888,886 Capital surplus 301,414 311,719 Unearned employee stock ownership plan - 167,566 shares at 6/30/01, 176,462 at 3/31/01 and 12/31/00 and 48,568 shares at 6/30/00 (6,750) (2,250) Accumulated other comprehensive income 12,097 (32,617) Retained earnings 3,085,784 2,850,981 Deferred compensation (14,494) (20,467) Less cost of common stock in treasury - 855,492 shares at 6/30/01, 289,387 shares at 12/31/00 and 761,318 shares at 6/30/00 (16,411) (43,438) ----------- ----------- Total shareholders' equity 4,500,159 4,202,814 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $49,534,056 $48,151,642 =========== =========== 9 CONSOLIDATED STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Three Months Ended --------------------------- June 30, June 30, (in thousands, except per share data) 2001 2000 ----------- ----------- INTEREST INCOME Interest and fees on loans $ 813,970 $ 833,916 Interest on investment securities 55,717 62,102 Interest on short-term investments 4,967 14,711 ----------- ----------- Total interest income 874,654 910,729 INTEREST EXPENSE Interest on deposits 243,476 216,873 Interest on short-term borrowings 24,341 66,039 Interest on medium- and long-term debt 79,456 130,124 ----------- ----------- Total interest expense 347,273 413,036 ----------- ----------- Net interest income 527,381 497,693 Provision for credit losses 37,000 56,600 ----------- ----------- Net interest income after provision for credit losses 490,381 441,093 NONINTEREST INCOME Fiduciary income 45,611 44,721 Investment advisory revenue, net 13,345 32,154 Service charges on deposit accounts 52,429 47,571 Commercial lending fees 14,316 12,578 Letter of credit fees 14,970 13,835 Warrant income 437 5,450 Securities gains/(losses) (747) 7,257 Net gain on sales of businesses - 2,631 Equity in earnings of unconsolidated subsidiaries 2,954 5,019 Other noninterest income 59,601 70,634 ----------- ----------- Total noninterest income 202,916 241,850 NONINTEREST EXPENSES Salaries and employee benefits 203,497 209,150 Net occupancy expense 29,299 27,066 Equipment expense 17,352 18,831 Outside processing fee expense 14,564 14,226 Restructuring charge 14,122 - Customer services 10,660 8,824 Other noninterest expenses 83,318 88,145 ----------- ----------- Total noninterest expenses 372,812 366,242 ----------- ----------- Income before income taxes 320,485 316,701 Provision for income taxes 112,013 110,651 ----------- ----------- NET INCOME $ 208,472 $ 206,050 =========== =========== Net income applicable to common stock $ 204,197 $ 201,775 =========== =========== Basic net income per common share $ 1.15 $ 1.14 Diluted net income per common share $ 1.13 $ 1.12 Cash dividends declared on common stock $ 78,420 $ 62,451 Dividends per common share $ 0.44 $ 0.40 10 CONSOLIDATED STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Six Months Ended --------------------------- June 30, June 30, (in thousands, except per share data) 2001 2000 ----------- ----------- INTEREST INCOME Interest and fees on loans $ 1,679,303 $ 1,612,089 Interest on investment securities 120,342 123,549 Interest on short-term investments 15,469 46,510 ----------- ----------- Total interest income 1,815,114 1,782,148 INTEREST EXPENSE Interest on deposits 515,403 419,769 Interest on short-term borrowings 63,733 119,979 Interest on medium- and long-term debt 196,305 261,112 ----------- ----------- Total interest expense 775,441 800,860 ----------- ----------- Net interest income 1,039,673 981,288 Provision for credit losses 109,000 123,494 ----------- ----------- Net interest income after provision for credit losses 930,673 857,794 NONINTEREST INCOME Fiduciary income 91,037 89,920 Investment advisory revenue, net 3,856 65,983 Service charges on deposit accounts 102,343 93,323 Commercial lending fees 28,170 24,959 Letter of credit fees 27,746 26,692 Warrant income 3,559 12,824 Securities gains/(losses) 22,997 12,694 Net gain on sales of businesses - 33,115 Equity in earnings of unconsolidated subsidiaries (50,346) 7,946 Other noninterest income 143,536 129,214 ----------- ----------- Total noninterest income 372,898 496,670 NONINTEREST EXPENSES Salaries and employee benefits 410,273 420,977 Net occupancy expense 57,615 54,864 Equipment expense 36,749 37,777 Outside processing fee expense 30,391 28,713 Restructuring charge 108,426 - Customer services 19,918 17,000 Other noninterest expenses 159,417 173,706 ----------- ----------- Total noninterest expenses 822,789 733,037 ----------- ----------- Income before income taxes 480,782 621,427 Provision for income taxes 178,718 218,346 ----------- ----------- NET INCOME $ 302,064 $ 403,081 =========== =========== Net income applicable to common stock $ 293,514 $ 394,531 =========== =========== Basic net income per common share $ 1.65 $ 2.23 Diluted net income per common share $ 1.63 $ 2.20 Cash dividends declared on common stock $ 156,809 $ 124,970 Dividends per common share $ 0.88 $ 0.80 11 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Second First Fourth Quarter Quarter Quarter (in thousands, except per share data) 2001 2001 2000 -------- -------- -------- INTEREST INCOME Interest and fees on loans $813,970 $865,333 $898,831 Interest on investment securities 55,717 64,625 69,688 Interest on short-term investments 4,967 10,502 16,712 -------- -------- -------- Total interest income 874,654 940,460 985,231 INTEREST EXPENSE Interest on deposits 243,476 271,927 277,775 Interest on short-term borrowings 24,341 39,392 48,457 Interest on medium- and long-term debt 79,456 116,849 139,800 -------- -------- -------- Total interest expense 347,273 428,168 466,032 -------- -------- -------- Net interest income 527,381 512,292 519,199 Provision for credit losses 37,000 72,000 88,006 -------- -------- -------- Net interest income after provision for credit losses 490,381 440,292 431,193 NONINTEREST INCOME Fiduciary income 45,611 45,426 46,297 Investment advisory revenue, net 13,345 (9,489) 18,431 Service charges on deposit accounts 52,429 49,914 47,848 Commercial lending fees 14,316 13,854 19,288 Letter of credit fees 14,970 12,776 12,491 Warrant income 437 3,122 324 Securities gains/(losses) (747) 23,744 2,285 Net gain on sales of businesses - - 13,184 Equity in earnings of unconsolidated subsidiaries 2,954 (53,300) 717 Other noninterest income 59,601 83,935 55,145 -------- -------- -------- Total noninterest income 202,916 169,982 216,010 NONINTEREST EXPENSES Salaries and employee benefits 203,497 206,776 215,328 Net occupancy expense 29,299 28,316 28,180 Equipment expense 17,352 19,397 19,595 Outside processing fee expense 14,564 15,827 14,363 Restructuring charge 14,122 94,304 - Customer services 10,660 9,258 10,642 Other noninterest expenses 83,318 76,099 87,974 -------- -------- -------- Total noninterest expenses 372,812 449,977 376,082 -------- -------- -------- Income before income taxes 320,485 160,297 271,121 Provision for income taxes 112,013 66,705 98,525 -------- -------- -------- NET INCOME $208,472 $ 93,592 $172,596 ======== ======== ======== Net income applicable to common stock $204,197 $ 89,317 $168,321 ======== ======== ======== Basic net income per common share $ 1.15 $ 0.50 $ 0.95 Diluted net income per common share $ 1.13 $ 0.50 $ 0.94 Cash dividends declared on common stock $ 78,420 $ 78,389 $ 62,706 Dividends per common share $ 0.44 $ 0.44 $ 0.40 N/M-Not meaningful 12 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Third Second Quarter Quarter (in thousands, except per share data) 2000 2000 -------- -------- INTEREST INCOME Interest and fees on loans $868,351 $833,916 Interest on investment securities 66,096 62,102 Interest on short-term investments 14,527 14,711 -------- -------- Total interest income 948,974 910,729 INTEREST EXPENSE Interest on deposits 253,737 216,873 Interest on short-term borrowings 46,936 66,039 Interest on medium- and long-term debt 144,619 130,124 -------- -------- Total interest expense 445,292 413,036 -------- -------- Net interest income 503,682 497,693 Provision for credit losses 43,300 56,600 -------- -------- Net interest income after provision for credit losses 460,382 441,093 NONINTEREST INCOME Fiduciary income 44,643 44,721 Investment advisory revenue, net 34,097 32,154 Service charges on deposit accounts 47,657 47,571 Commercial lending fees 16,435 12,578 Letter of credit fees 12,777 13,835 Warrant income 16,713 5,450 Securities gains 1,316 7,257 Net gain on sales of businesses 4,000 2,631 Equity in earnings of unconsolidated subsidiaries 5,358 5,019 Other noninterest income 61,005 70,634 -------- -------- Total noninterest income 244,001 241,850 NONINTEREST EXPENSES Salaries and employee benefits 215,151 209,150 Net occupancy expense 27,082 27,066 Equipment expense 19,160 18,831 Outside processing fee expense 15,465 14,226 Restructuring charge - - Customer services 9,240 8,824 Other noninterest expenses 89,306 88,145 -------- -------- Total noninterest expenses 375,404 366,242 -------- -------- Income before income taxes 328,979 316,701 Provision for income taxes 113,921 110,651 -------- -------- NET INCOME $215,058 $206,050 ======== ======== Net income applicable to common stock $210,783 $201,775 ======== ======== Basic net income per common share $ 1.19 $ 1.14 Diluted net income per common share $ 1.17 $ 1.12 Cash dividends declared on common stock $ 62,601 $ 62,451 Dividends per common share $ 0.40 $ 0.40 N/M-Not meaningful 13 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Second Quarter 2001 Compared To: First Quarter 2001 Second Quarter 2000 (in thousands, except per share data) Amount Percent Amount Percent -------- ------- -------- ------- INTEREST INCOME Interest and fees on loans $(51,363) (5.9)% $(19,946) (2.4)% Interest on investment securities (8,908) (13.8) (6,385) (10.3) Interest on short-term investments (5,535) (52.7) (9,744) (66.2) -------- ------- -------- ------- Total interest income (65,806) (7.0) (36,075) (4.0) INTEREST EXPENSE Interest on deposits (28,451) (10.5) 26,603 12.3 Interest on short-term borrowings (15,051) (38.2) (41,698) (63.1) Interest on medium- and long-term debt (37,393) (32.0) (50,668) (38.9) -------- ------- -------- ------- Total interest expense (80,895) (18.9) (65,763) (15.9) -------- ------- -------- ------- Net interest income 15,089 2.9 29,688 6.0 Provision for credit losses (35,000) (48.6) (19,600) (34.6) -------- ------- -------- ------- Net interest income after provision for credit losses 50,089 11.4 49,288 11.2 NONINTEREST INCOME Fiduciary income 185 0.4 890 2.0 Investment advisory revenue, net 22,834 N/M (18,809) (58.5) Service charges on deposit accounts 2,515 5.0 4,858 10.2 Commercial lending fees 462 3.3 1,738 13.8 Letter of credit fees 2,194 17.2 1,135 8.2 Warrant income (2,685) (86.0) (5,013) (92.0) Securities gains (24,491) N/M (8,004) N/M Net gain on sales of businesses - - (2,631) N/M Equity in earnings of unconsolidated subsidiaries 56,254 N/M (2,065) (41.1) Other noninterest income (24,334) (29.0) (11,033) (15.6) -------- ------- -------- ------- Total noninterest income 32,934 19.4 (38,934) (16.1) NONINTEREST EXPENSES Salaries and employee benefits (3,279) (1.6) (5,653) (2.7) Net occupancy expense 983 3.5 2,233 8.3 Equipment expense (2,045) (10.5) (1,479) (7.9) Outside processing fee expense (1,263) (8.0) 338 2.4 Restructuring charge (80,182) (85.0) 14,122 N/M Customer services 1,402 15.1 1,836 20.8 Other noninterest expenses 7,219 9.5 (4,827) (5.5) -------- ------- -------- ------- Total noninterest expenses (77,165) (17.1) 6,570 1.8 -------- ------- -------- ------- Income before income taxes 160,188 99.9 3,784 1.2 Provision for income taxes 45,308 67.9 1,362 1.2 -------- ------- -------- ------- NET INCOME $114,880 122.7% $ 2,422 1.2% ======== ======= ======== ======= Net income applicable to common stock $114,880 128.6% $ 2,422 1.2% ======== ======= ======== ======= Basic net income per common share $ 0.65 130.0% $ 0.01 0.9% Diluted net income per common share $ 0.63 126.0% $ 0.01 0.9% Cash dividends declared on common stock $ 31 -% $ 15,969 25.6% Dividends per common share $ - -% $ 0.04 10.0% N/M-Not meaningful 14 QUARTERLY SELECTED ASSET QUALITY DATA Comerica Incorporated and Subsidiaries 2001 ------------------------ (in thousands) 2nd QTR 1st QTR -------- -------- ALLOWANCE FOR CREDIT LOSSES Beginning period balance $644,556 $608,110 Loans charged off: Commercial (38,854) (38,610) International (5,670) (3,136) Real estate construction - (1,000) Commercial mortgage (426) (1,526) Residential mortgage (11) - Consumer (1,072) (942) Lease financing (512) (113) -------- -------- Total loans charged off (46,545) (45,327) Recoveries on loans previously charged off: Commercial 7,683 6,982 International 124 - Real estate construction 3 116 Commercial mortgage 389 136 Residential mortgage - 431 Consumer 1,509 1,625 Lease financing 43 626 -------- -------- Total recoveries 9,751 9,916 -------- -------- Net loans charged off (36,794) (35,411) Provision for credit losses 37,000 72,000 Foreign currency translation adjustment 115 (143) -------- -------- Balance at period end $644,877 $644,556 ======== ======== As a percent of total loans 1.57% 1.57% Net loans charged off to average total loans 0.35 0.34 NONPERFORMING ASSETS Nonaccrual loans: Commercial $382,170 $389,206 International 42,855 48,721 Real estate construction 5,417 6,942 Commercial mortgage 32,955 18,356 Residential mortgage 285 289 Consumer 3,550 3,147 Lease financing 3,429 3,817 -------- -------- Total nonaccrual loans 470,661 470,478 Reduced-rate loans 248 275 -------- -------- Total nonperforming loans 470,909 470,753 Other real estate 9,579 5,577 -------- -------- Total nonperforming assets $480,488 $476,330 ======== ======== Nonperforming loans as a percentage of total loans 1.15% 1.15% Nonperforming assets as a percentage of total loans and other real estate 1.17 1.16 Allowance for credit losses as a percentage of total nonperforming assets 134 135 Loans past due 90 days or more $ 83,114 $ 55,260 15 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 $ 613,663 $ 601,117 $ 581,482 Loans charged off: Commercial (99,211) (39,836) (37,719) International - (580) (2,851) Real estate construction - - - Commercial mortgage (9) (64) (437) Residential mortgage (84) (2) (48) Consumer (1,074) (792) (3,135) Lease financing (477) (7) (81) --------- --------- --------- Total loans charged off (100,855) (41,281) (44,271) Recoveries on loans previously charged off Commercial 4,604 8,797 4,897 International - - - Real estate construction 119 7 7 Commercial mortgage 1,009 18 545 Residential mortgage - - (7) Consumer 1,531 1,687 1,860 Lease financing 30 36 37 --------- --------- --------- Total recoveries 7,293 10,545 7,339 --------- --------- --------- Net loans charged off (93,562) (30,736) (36,932) Provision for credit losses 88,006 43,300 56,600 Foreign currency translation adjustment 3 (18) (33) --------- --------- --------- Balance at period end $ 608,110 $ 613,663 $ 601,117 ========= ========= ========= As a percent of total loans 1.51% 1.57% 1.54% Net loans charged off to average total loans 0.94 0.31 0.38 NONPERFORMING ASSETS Nonaccrual loans: Commercial $ 244,390 $ 229,026 $ 226,094 International 57,929 36,770 25,242 Real estate construction 4,542 4,947 248 Commercial mortgage 17,398 17,251 17,189 Residential mortgage 185 522 505 Consumer 3,080 3,322 3,490 Lease financing 3,837 4,051 4,961 --------- --------- --------- Total nonaccrual loans 331,361 295,889 277,729 Reduced-rate loans 2,306 2,271 7,789 --------- --------- --------- Total nonperforming loans 333,667 298,160 285,518 Other real estate 5,577 5,007 10,915 --------- --------- --------- Total nonperforming assets $ 339,244 $ 303,167 $ 296,433 ========= ========= ========= Nonperforming loans as a percentage of total loans 0.83% 0.76% 0.73% Nonperforming assets as a percentage of total loans and other real estate 0.84 0.78 0.76 Allowance for credit losses as a percentage of total nonperforming assets 179 202 203 Loans past due 90 days or more $ 36,176 $ 53,427 $ 38,769 16 ANALYSIS OF NET INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Three Months Ended ----------------------------------------------------------- June 30, 2001 March 31, 2001 ---------------------------- --------------------------- Average Average Average Average (dollar amounts in millions) Balance Interest Rate Balance Interest Rate ---------------------------- --------------------------- Commercial loans $27,005 $486.4 7.22% $26,705 $552.4 8.39% International loans 2,729 56.0 8.23 2,603 58.5 9.12 Real estate construction loans 3,056 63.9 8.39 2,955 69.8 9.58 Commercial mortgage loans 5,609 110.5 7.90 5,500 116.1 8.56 Residential mortgage loans 788 15.1 7.66 800 15.5 7.74 Consumer loans 1,479 32.4 8.77 1,478 33.7 9.21 Lease financing 1,085 17.7 6.52 1,059 17.0 6.42 Business loan swap income/(expense) - 32.6 - - 3.0 - ---------------------------- --------------------------- Total loans 41,751 814.6 7.82 41,100 866.0 8.54 Investment securities available for sale (1) 3,490 56.0 6.41 3,881 65.0 6.74 Short-term investments 299 5.0 6.71 634 10.5 6.74 ---------------------------- --------------------------- Total earning assets 45,540 875.6 7.71 45,615 941.5 8.36 Cash and due from banks 1,839 1,776 Allowance for credit losses (664) (621) Other assets 2,673 2,561 ------- ------- Total Assets $49,388 $49,331 ======= ======= Money market and NOW accounts $ 9,809 67.2 2.75 $ 9,456 74.9 3.21 Savings deposits 1,319 4.4 1.35 1,323 5.0 1.52 Certificates of deposit 13,248 161.3 4.88 12,901 182.1 5.73 Foreign office time deposits 632 10.6 6.72 487 9.9 8.22 ---------------------------- --------------------------- Total interest-bearing deposits 25,008 243.5 3.91 24,167 271.9 4.56 Short-term borrowings 2,213 24.3 4.41 2,573 39.4 6.21 Medium- and long-term debt 6,449 79.5 4.94 7,729 116.9 6.13 ---------------------------- --------------------------- Total interest-bearing sources 33,670 347.3 4.14 34,469 428.2 5.04 Noninterest-bearing deposits 10,219 9,370 Other liabilities 764 835 Preferred stock 250 250 Common shareholders' equity 4,485 4,407 ------- ------- Total Liabilities and Shareholders' Equity $49,388 $49,331 ======= ======= Net interest income/Rate spread (FTE) $528.3 3.57 $513.3 3.32 ====== ====== FTE adjustment $ 1.0 $ 1.0 ====== ====== Impact of net noninterest-bearing sources of funds 1.08 1.23 ---- ---- Net interest margin as a percent of average earning assets (FTE) 4.65% 4.55% ==== ==== (1) The average rate for investment securities available for sale was computed using average historical cost. 17 ANALYSIS OF NET INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Three Months Ended ---------------------------- June 30, 2000 ---------------------------- Average Average (dollar amounts in millions) Balance Interest Rate ---------------------------- Commercial loans $25,294 $555.4 8.83% International loans 2,527 57.9 9.22 Real estate construction loans 2,449 61.4 10.09 Commercial mortgage loans 5,133 112.0 8.78 Residential mortgage loans 835 15.9 7.63 Consumer loans 1,419 31.7 8.98 Lease financing 830 11.9 5.72 Business loan swap income/(expense) - (11.8) - ---------------------------- Total loans 38,487 834.4 8.72 Investment securities available for sale (1) 3,677 62.5 6.71 Short-term investments 863 14.8 6.87 ---------------------------- Total earning assets 43,027 911.7 8.51 Cash and due from banks 1,802 Allowance for credit losses (588) Other assets 2,260 ------- Total Assets $46,501 ======= Money market and NOW accounts $ 9,167 70.7 3.10 Savings deposits 1,430 5.7 1.59 Certificates of deposit 8,884 122.6 5.55 Foreign office time deposits 986 17.9 7.31 ---------------------------- Total interest-bearing deposits 20,467 216.9 4.26 Short-term borrowings 4,148 66.0 6.40 Medium- and long-term debt 8,039 130.1 6.51 ---------------------------- Total interest-bearing sources 32,654 413.0 5.09 Noninterest-bearing deposits 9,073 Other liabilities 644 Preferred stock 250 Common shareholders' equity 3,880 ------- Total Liabilities and Shareholders' Equity $46,501 ======= Net interest income/Rate spread (FTE) $498.7 3.42 ====== FTE adjustment $ 1.0 ====== Impact of net noninterest-bearing sources of funds 1.23 ----- Net interest margin as a percent of average earning assets (FTE) 4.65% ===== (1) The average rate for investment securities available for sale was computed using average historical cost. 18 ANALYSIS OF NET INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Six Months Ended ----------------------------------------------------------- June 30, 2001 June 30, 2000 ---------------------------- --------------------------- Average Average Average Average (dollar amounts in millions) Balance Interest Rate Balance Interest Rate ---------------------------- --------------------------- Commercial loans $26,856 $1,038.8 7.80% $24,790 $1,063.1 8.62% International loans 2,666 114.5 8.66 2,562 114.1 8.96 Real estate construction loans 3,006 133.7 8.97 2,365 116.2 9.88 Commercial mortgage loans 5,554 226.5 8.22 5,067 218.1 8.66 Residential mortgage loans 794 30.6 7.70 847 32.2 7.59 Consumer loans 1,479 66.1 8.99 1,414 62.8 8.92 Lease financing 1,072 34.7 6.47 820 24.9 6.08 Business loan swap income/(expense) - 35.6 - - (18.3) - ---------------------------- --------------------------- Total loans 41,427 1,680.5 8.18 37,865 1,613.1 8.56 Investment securities available for sale (1) 3,685 121.0 6.59 3,614 124.4 6.79 Short-term investments 465 15.6 6.73 1,191 46.6 7.85 ---------------------------- --------------------------- Total earning assets 45,577 1,817.1 8.03 42,670 1,784.1 8.39 Cash and due from banks 1,808 1,801 Allowance for credit losses (642) (574) Other assets 2,616 2,203 ------- ------- Total Assets $49,359 $46,100 ======= ======= Money market and NOW accounts $ 9,634 142.1 2.98 $ 9,180 138.3 3.03 Savings deposits 1,321 9.4 1.44 1,431 11.3 1.58 Certificates of deposit 13,075 343.4 5.30 8,629 231.9 5.40 Foreign office time deposits 560 20.5 7.36 1,101 38.3 6.99 ---------------------------- --------------------------- Total interest-bearing deposits 24,590 515.4 4.23 20,341 419.8 4.15 Short-term borrowings 2,392 63.7 5.37 3,869 120.0 6.24 Medium- and long-term debt 7,085 196.3 5.59 8,330 261.1 6.30 ---------------------------- --------------------------- Total interest-bearing sources 34,067 775.4 4.59 32,540 800.9 4.95 Noninterest-bearing deposits 9,797 8,843 Other liabilities 799 661 Preferred stock 250 250 Common shareholders' equity 4,446 3,806 ------- ------- Total Liabilities and Shareholders' Equity $49,359 $46,100 ======= ======= Net interest income/Rate spread (FTE) $1,041.7 3.44 $ 983.2 3.44 ======== ======== FTE adjustment $ 2.0 $ 1.9 ====== ====== Impact of net noninterest-bearing sources of funds 1.16 1.18 ---- ---- Net interest margin as a percent of average earning assets (FTE) 4.60% 4.62% ==== ==== (1) The average rate for investment securities available for sale was computed using average historical cost. 19 CONSOLIDATED STATISTICAL DATA Comerica Incorporated and Subsidiaries June 30, March 31, December 31, (in thousands, except per share data) 2001 2001 2000 ----------- ----------- ----------- Commercial loans: Floor plan $ 2,153,309 $ 2,217,405 $ 2,063,619 Other 24,002,073 24,156,024 23,945,717 ----------- ----------- ----------- Total commercial 26,155,382 26,373,429 26,009,336 International loans 2,751,192 2,653,902 2,571,156 Real estate construction loans 3,117,988 2,973,895 2,915,168 Commercial mortgage loans 5,681,003 5,570,134 5,360,601 Residential mortgage loans 793,631 793,075 807,064 Consumer loans: Credit card 21,758 21,303 21,517 Home equity 982,978 964,753 976,100 Other consumer 486,073 485,959 479,518 ----------- ----------- ----------- Total consumer 1,490,809 1,472,015 1,477,135 Lease financing 1,123,408 1,088,908 1,029,164 ----------- ----------- ----------- Total loans $41,113,413 $40,925,358 $40,169,624 =========== =========== =========== Goodwill $ 349,099 $ 356,925 $ 366,550 Core deposit intangible 6,482 7,176 7,883 Other intangible assets 1,160 1,215 3,472 Loan servicing rights 7,923 8,470 6,657 Deferred mutual fund distribution costs 53,314 54,045 85,849 Amortization of intangibles (quarterly) 8,619 8,685 9,549 Leverage ratio* 8.84% 8.76% 8.74% Tier 1 risk-based capital ratio* 7.56 7.41 7.35 Total risk-based capital ratio* 11.40 11.19 11.11 Book value per share $ 25.32 $ 24.80 $ 23.98 Market value for the quarter: High $ 62.75 $ 65.15 $ 61.13 Low 50.73 53.00 47.19 Close 57.60 61.50 59.38 Return on average common equity 18.21% 8.11% 16.05% Return on average assets 1.69 0.76 1.43 Efficiency ratio 50.93 68.22 51.25 Number of commercial banking offices 348 353 354 Number of employees-full time equivalent 11,498 11,525 11,444 * June 30,2001 ratios estimated 20 CONSOLIDATED STATISTICAL DATA Comerica Incorporated and Subsidiaries September 30, June 30, (in thousands, except per share data) 2000 2000 ----------- ----------- Commercial loans: Floor plan $ 1,559,050 $ 1,853,836 Other 23,851,548 23,547,430 ----------- ----------- Total commercial 25,410,598 25,401,266 International loans 2,483,910 2,612,539 Real estate construction loans 2,771,393 2,576,986 Commercial mortgage loans 5,195,445 5,145,662 Residential mortgage loans 817,483 828,092 Consumer loans: Credit card 19,995 26,945 Home equity 954,427 938,191 Other consumer 483,667 473,235 ----------- ----------- Total consumer 1,458,089 1,438,371 Lease financing 940,241 858,065 ----------- ----------- Total loans $39,077,159 $38,860,981 =========== =========== Goodwill $ 374,611 $ 380,726 Core deposit intangible 9,056 10,229 Other intangible assets 3,723 3,973 Loan servicing rights 6,644 6,851 Deferred mutual fund distribution costs 104,307 105,904 Amortization of intangibles (quarterly) 9,596 9,622 Leverage ratio* 8.75% 8.53% Tier 1 risk-based capital ratio* 7.36 7.22 Total risk-based capital ratio* 11.32 10.78 Book value per share $ 23.22 $ 22.34 Market value for the quarter: High $ 59.44 $ 54.38 Low 45.00 39.88 Close 58.44 44.88 Return on average common equity 20.87% 20.80% Return on average assets 1.83 1.77 Efficiency ratio 50.23 49.95 Number of commercial banking offices 347 346 Number of employees-full time equivalent 11,387 11,614 * June 30, 2001 ratios estimated 21 PARENT COMPANY ONLY BALANCE SHEETS Comerica Incorporated June 30, December 31, June 30, (in thousands, except share data) 2001 2000 2000 ----------- ----------- ----------- ASSETS Cash and due from banks $ 24,978 $ 9,918 $ 4,230 Time deposits with banks 72,100 112,100 72,600 Investment securities available for sale - 47,262 28,611 Investment in subsidiaries, principally banks 4,964,495 4,634,579 4,402,099 Premises and equipment 3,187 3,391 3,915 Other assets 136,638 66,009 64,205 ----------- ----------- ----------- TOTAL ASSETS $ 5,201,398 $ 4,873,259 $ 4,575,660 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Commercial paper $ 119,987 $ 79,985 $ 84,971 Long-term debt 163,265 157,414 157,982 Advances from nonbanking subsidiaries - 4,453 - Other liabilities 167,281 131,248 129,893 ----------- ----------- ----------- Total liabilities 450,533 373,100 372,846 Nonredeemable preferred stock - $50 stated value: Authorized - 5,000,000 shares Issued - 5,000,000 shares at 6/30/01, 12/31/00, and 6/30/00 250,000 250,000 250,000 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 178,749,198 shares at 6/30/01, 177,703,678 shares at 12/31/00 and 177,777,268 shares at 6/30/00 893,746 888,519 888,886 Capital surplus 340,232 301,414 311,719 Unearned employee stock ownership plan shares - 167,566 shares at 6/30/01, 176,642 shares at 12/31/00 and 48,568 shares at 6/30/00 (6,408) (6,750) (2,250) Accumulated other comprehensive income 119,135 12,097 (32,617) Retained earnings 3,211,460 3,085,784 2,850,981 Deferred compensation (11,251) (14,494) (20,467) Less cost of common stock in treasury - 855,492 shares at 6/30/01, 289,397 shares at 12/31/00 and 761,318 shares at 6/30/00 (46,049) (16,411) (43,438) ----------- ----------- ----------- Total shareholders' equity 4,750,865 4,500,159 4,202,814 ----------- ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,201,398 $ 4,873,259 $ 4,575,660 =========== =========== =========== 22 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Comerica Incorporated and Subsidiaries Accumulated Nonredeemable Other (in thousands, except Preferred Common Capital Comprehensive Retained share data) Stock Stock Surplus Income Earnings --------- -------- -------- ------------- ---------- BALANCES AT JANUARY 1, 2000 $250,000 $889,453 $226,001 $(21,704) $2,677,210 Net income for 2000 - - - - 403,081 Other comprehensive income, net of tax - - - (10,913) - Total comprehensive income - - - - - Common stock dividend - - 84,906 - (84,927) Cash dividends declared: Preferred stock - - - - (8,550) Common stock - - - - (124,970) Purchase and retirement of 278,898 shares of common stock - (1,394) (7,765) - - Purchase of 331,362 shares of common stock - - - - - Net issuance of common stock under employee stock plans - 827 8,577 - (10,863) Amortization of deferred compensation - - - - - -------- -------- -------- -------- ---------- BALANCES AT JUNE 30, 2000 $250,000 $888,886 $311,719 $(32,617) $2,850,981 ======== ======== ======== ======== ========== BALANCES AT JANUARY 1, 2001 $250,000 $888,519 $301,414 $ 12,097 $3,085,784 Net income for 2001 - - - - 302,064 Other comprehensive income, net of tax - - - 107,038 - Total comprehensive income - - - - - Cash dividends declared: Preferred stock - - - - (8,550) Common stock - - - - (156,808) Purchase of 958,200 shares of common stock - - - - - Net issuance of common stock under employee stock plans - 5,227 38,818 - (11,030) Amortization of deferred compensation - - - - - -------- -------- -------- -------- ---------- BALANCES AT JUNE 30, 2001 $250,000 $893,746 $340,232 $119,135 $3,211,460 ======== ======== ======== ======== ========== 23 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Comerica Incorporated and Subsidiaries Unearned Employee Stock Total (in thousands, except Ownership Deferred Treasury Shareholders' share data) Plan Shares Compensation Stock Equity ---------- ------------ --------- -------------- BALANCES AT JANUARY 1, 2000 $(3,750) $(21,998) $(47,161) $3,948,051 Net income for 2000 - - - 403,081 Other comprehensive income, net of tax - - - (10,913) ---------- Total comprehensive income - - - 392,168 Common stock dividend - - - (21) Cash dividends declared: Preferred stock - - - (8,550) Common stock - - - (124,970) Purchase and retirement of 278,898 shares of common stock - - - (9,159) Purchase of 331,362 shares of common stock - - (13,112) (13,112) Net issuance of common stock under employee stock plans 1,500 (3,314) 16,835 13,562 Amortization of deferred compensation - 4,845 - 4,845 ------- -------- -------- ---------- BALANCES AT JUNE 30, 2000 $(2,250) $(20,467) $(43,438) $4,202,814 ======= ======== ======== ========== BALANCES AT JANUARY 1, 2001 $(6,750) $(14,494) $(16,411) $4,500,159 Net income for 2001 - - - 302,064 Other comprehensive income, net of tax - - - 107,038 ---------- Total comprehensive income - - - 409,102 Cash dividends declared: Preferred stock - - - (8,550) Common stock - - - (156,808) Purchase of 958,200 shares of common stock - - (53,238) (53,238) Net issuance of common stock under employee stock plans 342 (9,072) 23,600 47,885 Amortization of deferred compensation - 12,315 - 12,315 ------- -------- -------- ---------- BALANCES AT JUNE 30, 2001 $(6,408) $(11,251) $(46,049) $4,750,865 ======= ======== ======== ==========