Comerica Reports Fourth Quarter 2013 Net Income Of $145 Million

       Comerica Reports Fourth Quarter 2013 Net Income Of $145 Million  Fourth Quarter 2013 EPS of 77 Cents Up 13 Percent from Fourth Quarter 2012  Full-Year 2013 EPS of $3.00 Up 12 Percent from 2012  Period-End Loans Up $1.3 Billion from Third Quarter 2013  7.4 Million Shares Repurchased in 2013 Under the Share Repurchase Program  73 Percent of 2013 Net Income Returned to Shareholders  PR Newswire  DALLAS, Jan. 17, 2014  DALLAS, Jan. 17, 2014 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported fourth quarter 2013 net income of $145 million, compared to $147 million for the third quarter 2013 and $130 million for the fourth quarter 2012. Earnings per diluted share were 77 cents for the fourth quarter 2013, compared to 78 cents for the third quarter 2013 and 68 cents for the fourth quarter 2012.  (Logo: http://photos.prnewswire.com/prnh/20010807/CMALOGO)  Full-year 2013 net income was $569 million, an increase of $48 million, or 9 percent, compared to 2012. Earnings per diluted share were $3.00 for 2013, an increase of 33 cents, or 12 percent, compared to 2012.  (dollar amounts in millions, except  4th Qtr '13     3rd Qtr '13  4th Qtr '12 per share data) Net interest income (a)              $   430         $   412      $   424 Provision for credit losses          9               8            16 Noninterest income                   204             214          204 Noninterest expenses                 429             417          427 Provision for income taxes           51              54           55 Net income                           145             147          130 Net income attributable to common    143             145          128 shares Diluted income per common share      0.77            0.78         0.68 Average diluted shares (in millions) 186             187          188 Tier 1 common capital ratio (c)      10.60    %  (b) 10.72    %   10.14    % Basel III Tier 1 common capital      10.3            10.4         9.8 ratio (c) (d) Tangible common equity ratio (c)     10.11           9.87         9.76      Included accretion of the purchase discount on the acquired loan portfolio (a) of $23 million, $8 million and $13 million in the fourth quarter 2013,     third quarter 2013 and fourth quarter 2012, respectively. (b) December 31, 2013 ratio is     estimated. (c) See Reconciliation of     Non-GAAP Financial Measures.     Estimated ratios based on the     standardized approach in the (d) final rule and excluding most     elements of accumulated other     comprehensive income (AOCI).    "Our relationship banking focus and our customers' strength in this uncertain national economy drove a 3 percent increase in average loans and a 4 percent increase in average deposits in 2013," said Ralph W. Babb Jr., chairman and chief executive officer. "2013 net income increased 9 percent, primarily as a result of tight expense control and strong credit quality, offsetting the headwinds of the continuing low rate environment.  "Average loans in the fourth quarter 2013 were stable, compared to the prior quarter, while growth trends throughout the quarter were positive, resulting in a broad-based, $1.3 billion increase in period-end loans. Earnings in the fourth quarter of 2013, compared to the prior quarter, reflected greater than expected purchase accounting accretion. This was offset by slightly lower fee income, following strong fee generation in the third quarter and the impact of slower economic activity, as well as additional costs related to regulatory compliance.  "Our solid capital position supports our growth and provides us the ability to return excess capital to our shareholders. We repurchased 7.4 million shares in 2013 under our share repurchase program; together with dividends we returned 73 percent of 2013 net income to shareholders. We recently filed our 2014-2015 capital plan with the Federal Reserve, which is expected to release its summary results in March 2014.  "In this low rate environment, our conservative, consistent approach to banking continues to serve us well, including our credit management, investment strategy, and capital position. We are pleased with our footprint, where there are many opportunities to leverage our relationship banking strategy by providing our customers with the products and services they desire."  Full-Year 2013 and Fourth Quarter Overview  Full-Year 2013 Compared to Full-Year 2012    oNet income of $569 million for 2013 increased $48 million, or 9 percent,     compared to 2012.   oAverage total loans increased $1.1 billion, or 3 percent, to $44.4     billion, primarily reflecting an increase of $1.7 billion, or 7 percent,     in commercial loans, partially offset by a decrease of $686 million, or 6     percent, in combined commercial mortgage and real estate construction     loans. The increase in commercial loans was primarily driven by increases     in National Dealer Services, general Middle Market and Energy, partially     offset by decreases in Mortgage Banker Finance and Corporate Banking.   oAverage total deposits increased $2.2 billion, or 4 percent, to $51.7     billion, reflecting increases of $1.4 billion, or 7 percent, in     noninterest-bearing deposits and $803 million, or 3 percent, in     interest-bearing deposits.   oNet interest income of $1.7 billion decreased by $56 million, or 3     percent, primarily as a result of a decrease in yields and a decrease in     accretion of the purchase discount on the acquired loan portfolio,     partially offset by a decrease in funding costs. Loan yields decreased     primarily as a result of shifts in the average loan portfolio mix and     lower LIBOR rates, while yields on mortgage-backed securities declined     primarily due to prepayments on higher-yielding securities and     reinvestments at lower yields.   oCredit quality of the loan portfolio remained strong. The provision for     credit losses declined $33 million to $46 million in 2013 compared to     2012. Net credit-related charge-offs decreased $97 million to $73 million.   oNoninterest income increased $8 million, or 1 percent, to $826 million in     2013. The increase reflected an increase of $13 million in customer-driven     fee income, partially offset by a decrease of $5 million in     noncustomer-driven categories.   oNoninterest expenses decreased $79 million, or 4 percent, to $1.7 billion     in 2013, primarily reflecting decreases of $35 million in merger and     restructuring charges and $23 million in litigation-related expenses, as     well as declines in several other categories of noninterest expenses,     reflecting tight expense control.  Fourth Quarter 2013 Compared to Third Quarter 2013    oAverage total loans remained stable at $44.1 billion, as increases in     National Dealer Services and Technology and Life Sciences were offset by a     decrease in Mortgage Banker Finance. Period-end total loans increased $1.3     billion, or 3 percent, to $45.5 billion, reflecting increases in almost     all lines of business.   oAverage total deposits increased $904 million, or 2 percent, to $52.8     billion, reflecting increases in most lines of business and all primary     markets. Period-end deposits increased $383 million, or 1 percent, to     $53.3 billion, primarily reflecting an increase of $404 million in     interest-bearing deposits.   oNet interest income increased $18 million, or 4 percent, to $430 million     in the fourth quarter 2013, compared to $412 million in the third quarter     2013, primarily reflecting a $15 million increase in accretion on the     acquired portfolio and a $5 million increase in interest collected from     nonaccrual loans. The increase in accretion resulted from better than     expected collections on the purchased credit-impaired portfolio due to     improvements in the economic environment.   oThe provision for credit losses was $9 million in the fourth quarter 2013,     compared to $8 million in the third quarter 2013, reflecting continued     strong credit quality.   oNoninterest income decreased $10 million to $204 million in the fourth     quarter 2013, reflecting decreases of $5 million in customer-driven fee     income and $5 million in noncustomer-driven income.   oNoninterest expenses increased $12 million to $429 million in the fourth     quarter 2013, primarily reflecting an increase of $7 million in salaries     expense, of which $6 million was due to an increase in deferred     compensation, and a $5 million increase in litigation-related expenses     from a low third quarter amount.   oCapital remained solid at December 31, 2013, as evidenced by an estimated     Tier 1 common capital ratio of 10.60 percent and a tangible common equity     ratio of 10.11 percent.  Net Interest Income  (dollar amounts in millions)             4th Qtr '13  3rd Qtr '13  4th Qtr '12 Net interest income                      $  430       $  412       $  424 Net interest margin                      2.86      %  2.79      %  2.87      % Selected average balances: Total earning assets                     $  59,924    $  58,892    $  59,276 Total loans                              44,054       44,094       44,119 Total investment securities              9,365        9,380        10,250 Federal Reserve Bank deposits (excess    6,260        5,156        4,638 liquidity) Total deposits                           52,769       51,865       51,282 Total noninterest-bearing deposits       23,532       22,379       22,758    oNet interest income of $430 million in the fourth quarter 2013 increased     $18 million compared to the third quarter 2013.         oInterest on loans increased $16 million, primarily reflecting an          increase in the accretion of the purchase discount on the acquired          loan portfolio ($15 million) and an increase in interest collected on          nonaccrual loans ($5 million), partially offset by the impact of loan          portfolio dynamics ($4 million), including a decline in LIBOR and          other shifts in portfolio mix.        oInterest on mortgage-backed investment securities increased net          interest income by $1 million, primarily as a result of improvement          in yields due to slowing prepayment speeds.        oA decrease in funding costs increased net interest income by $1          million, primarily reflecting lower deposit pricing and a shift in          the deposit mix.    oThe net interest margin of 2.86 percent increased 7 basis points compared     to the third quarter 2013. The increase in net interest margin was     primarily due to an increase in the accretion of the purchase discount on     the acquired loan portfolio (+10 basis points), an increase in interest     collected on nonaccrual loans (+3 basis points), the impact of yield     improvements on mortgage-backed securities (+1 basis point) and lower     funding costs (+1 basis point), partially offset by an increase in excess     liquidity (-5 basis points) and lower loan yields (-3 basis points).   oAverage earning assets increased $1.0 billion to $59.9 billion in the     fourth quarter 2013, compared to the third quarter 2013, reflecting an     increase of $1.1 billion in excess liquidity due to deposit growth.  Noninterest Income Noninterest income decreased $10 million to $204 million for the fourth quarter 2013, compared to $214 million for the third quarter 2013. Customer-driven fee income decreased $5 million and noncustomer-driven income decreased $5 million. The decrease in customer-driven fee income reflected a $2 million decrease in letter of credit fees and small decreases in other categories of noninterest income, partially offset by a $2 million increase in fiduciary income. The decrease in noncustomer-driven income was primarily due to a $6 million decrease in warrant income and a $3 million decrease in income on bank-owned life insurance, partially offset by a $6 million increase in deferred compensation plan asset returns, which was offset by an increase in deferred compensation expense as described below.  Noninterest Expenses Noninterest expenses of $429 million in the fourth quarter 2013 increased $12 million compared to the third quarter 2013. Excluding a $6 million increase in deferred compensation expense, noninterest expenses increased $6 million, primarily reflecting the impact of a $5 million favorable outcome in litigation in the third quarter. The $6 million increase in deferred compensation expense (included in salaries expense) was offset by the increase in deferred compensation asset returns in noninterest income. Incentive compensation remained unchanged from the elevated third quarter level as financial performance relative to peers continued to improve.  Credit Quality "The provision for credit losses was $9 million in the fourth quarter 2013, compared to $8 million in the third quarter 2013, reflecting continued strong credit quality and an increase in loan commitments and outstandings," said Babb. "Net credit-related charge-offs decreased slightly and remain at a very low level."  (dollar amounts in millions)             4th Qtr '13  3rd Qtr '13  4th Qtr '12 Net credit-related charge-offs           $   13       $   19       $   37 Net credit-related charge-offs/Average   0.12     %   0.18     %   0.34     % total loans Provision for credit losses              $   9        $   8        $   16 Nonperforming loans (a)                  374          459          541 Nonperforming assets (NPAs) (a)          383          478          595 NPAs/Total loans and foreclosed property 0.84     %   1.08     %   1.29     % Loans past due 90 days or more and still $   16       $   25       $   23 accruing Allowance for loan losses                598          604          629 Allowance for credit losses on           36           34           32 lending-related commitments (b) Total allowance for credit losses        634          638          661 Allowance for loan losses/Period-end     1.32     %   1.37     %   1.37     % total loans Allowance for loan losses/Nonperforming  160          131          116 loans (a) Excludes loans acquired with credit impairment. (b) Included in "Accrued expenses and other liabilities" on the consolidated balance sheets.    oNonaccrual loans decreased $87 million, to $350 million at December 31,     2013, compared to $437 million at September 30, 2013.   oCriticized loans decreased $201 million, to $2.3 billion at December 31,     2013, compared to $2.5 billion at September 30, 2013.   oDuring the fourth quarter 2013, $23 million of borrower relationships over     $2 million were transferred to nonaccrual status, a decrease of $27     million from the third quarter 2013.  Balance Sheet and Capital Management Total assets and common shareholders' equity were $65.2 billion and $7.2 billion, respectively, at December 31, 2013, compared to $64.7 billion and $7.0 billion, respectively, at September 30, 2013. The $540 million increase in total assets primarily reflected an increase of $1.3 billion in loans, partially offset by decreases of $437 million in excess liquidity and $181 million in investment securities available-for-sale.  There were approximately 182 million common shares outstanding at December 31, 2013. Combined with the dividend of $0.17 per share, share repurchases under the share repurchase program and dividends returned 71 percent of fourth quarter 2013 net income to shareholders.  Comerica's tangible common equity ratio was 10.11 percent at December 31, 2013, an increase of 24 basis points from September 30, 2013. The estimated Tier 1 common capital ratio decreased 12 basis points, to 10.60 percent at December 31, 2013, from September 30, 2013. The estimated Tier 1 common ratio under fully phased-in Basel III capital rules and excluding most elements of AOCI was 10.3 percent percent at December 31, 2013.  Full-Year 2014 Outlook Management expectations for full-year 2014 compared to full-year 2013, assuming a continuation of the slow growing economy and low rate environment, are as follows:    oAverage loan growth consistent with 2013, reflecting stabilization in     Mortgage Banker Finance near average fourth quarter 2013 levels, improving     trends in Commercial Real Estate and continued focus on pricing and     structure discipline.   oNet interest income modestly lower, reflecting a decrease in purchase     accounting accretion, to $10 million to $20 million, and the effect of a     continued low rate environment, partially offset by loan growth.   oProvision for credit losses stable as a result of continued strong credit     quality.   oNoninterest income stable, reflecting continued growth in customer-driven     fee income.   oNoninterest expenses lower, reflecting a more than 50 percent reduction in     pension expense. Increases in merit, healthcare and regulatory costs     mostly offset by continued expense discipline.   oIncome tax expense to approximate 28 percent of pre-tax income.  Business Segments Comerica's operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank and Wealth Management. The Finance Division is also reported as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at December 31, 2013 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2013 results compared to third quarter 2013.  The following table presents net income (loss) by business segment.  (dollar amounts in millions) 4th Qtr '13   3rd Qtr '13   4th Qtr '12 Business Bank                $ 200  84  %  $ 209  91  %  $ 209  90  % Retail Bank                  14     6      6      3      8      3 Wealth Management            23     10     15     6      16     7                              237    100 %  230    100 %  233    100 % Finance                      (92)          (87)          (102) Other (a)                    —             4             (1) Total                   $ 145         $ 147         $ 130  (a) Includes items not directly associated with the three major business     segments or the Finance Division.    Business Bank (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13   4th Qtr '12 Net interest income (FTE)      $    387      $    368      $    387 Provision for credit losses    24            (1)           6 Noninterest income             80            89            79 Noninterest expenses           151           153           149 Net income                     200           209           209 Net credit-related charge-offs 6             9             26 Selected average balances: Assets                         35,042        35,298        35,359 Loans                          34,020        34,178        34,325 Deposits                       26,873        26,284        26,051    oAverage loans decreased $158 million, primarily reflecting decreases in     Mortgage Banker Finance and Energy, partially offset by increases in     National Dealer Services and Technology and Life Sciences. Period-end     loans increased $1.1 billion.   oAverage deposits increased $589 million, primarily reflecting increases in     Corporate Banking, Technology and Life Sciences and Commercial Real     Estate, partially offset by a decline in general Middle Market.   oNet interest income increased $19 million, primarily due to an increase in     purchase accounting accretion and an increase in funds transfer pricing     credits.   oThe provision for credit losses increased $25 million, primarily     reflecting an increase in period-end loan balances, partially offset by     improved credit quality.   oNoninterest income decreased $9 million, primarily due to a decrease in     warrant income.  Retail Bank (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13    4th Qtr '12 Net interest income (FTE)      $    150      $    151       $    156 Provision for credit losses    (8)           10             7 Noninterest income             43            45             43 Noninterest expenses           180           177            181 Net income                     14            6              8 Net credit-related charge-offs 4             7              6 Selected average balances: Assets                         5,997         5,967          5,952 Loans                          5,323         5,285          5,255 Deposits                       21,438        21,257         20,910    oAverage loans increased $38 million, primarily due to an increase in Small     Business.   oAverage deposits increased $181 million, primarily due to an increase in     Retail Banking.   oThe provision for credit losses decreased $18 million, primarily due to     improved credit quality, partially offset by an increase in period-end     loan balances.  Wealth Management (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13   4th Qtr '12 Net interest income (FTE)      $     47      $     45      $     47 Provision for credit losses    (9)           1             2 Noninterest income             61            61            65 Noninterest expenses           82            81            84 Net income                     23            15            16 Net credit-related charge-offs 3             3             5 Selected average balances: Assets                         4,873         4,789         4,686 Loans                          4,711         4,631         4,539 Deposits                       3,933         3,782         3,798    oAverage loans increased $80 million, primarily due to an increase in     Private Banking.   oAverage deposits increased $151 million, primarily due to an increase in     Private Banking.   oThe provision for credit losses decreased $10 million, primarily     reflecting improved credit quality, partially offset by an increase in     period-end loan balances.  Geographic Market Segments Comerica also provides market segment results for three primary geographic markets: Michigan, California and Texas. In addition to the three primary geographic markets, Other Markets is also reported as a market segment. Other Markets includes Florida, Arizona, the International Finance division and businesses that have a significant presence outside of the three primary geographic markets. The tables below present the geographic market results based on the methodologies in effect at December 31, 2013 and are presented on a fully taxable equivalent (FTE) basis.  The following table presents net income (loss) by market segment.  (dollar amounts in millions) 4th Qtr '13   3rd Qtr '13   4th Qtr '12 Michigan                     $ 63   26  %  $ 73   32  %  $ 74   32  % California                   76     32     71     31     62     26 Texas                        52     22     35     15     47     20 Other Markets                46     20     51     22     50     22                              237    100 %  230    100 %  233    100 % Finance & Other (a)          (92)          (83)          (103) Total                   $ 145         $ 147         $ 130  (a) Includes items not directly associated with the geographic markets.    oAverage loans increased $429 million and $47 million in California and     Michigan, respectively, and decreased $176 million in Texas. The increases     in California and Michigan primarily reflected an increase in National     Dealer Services. Technology and Life Sciences also contributed to the     increase in California. The decrease in Texas was primarily due to a     decrease in Energy.   oAverage deposits increased $36 million in Michigan, primarily due to an     increase in Small Business. In California, average deposits increased $652     million, primarily reflecting increases in Corporate Banking and Private     Banking. The increase in Texas of $238 million was primarily due to     increases in Technology and Life Sciences, Energy and Retail Banking.   oThe provision for credit losses decreased $12 million in Texas and $5     million in California, primarily reflecting improved credit quality,     partially offset by an increase in period-end loan balances. In Michigan,     the provision increased $15 million, primarily due to an increase in     period-end loan balances.   oNoninterest income in California decreased $5 million, primarily due to a     decrease in warrant income.  Michigan Market (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13   4th Qtr '12 Net interest income (FTE)      $    187      $    186      $    192 Provision for credit losses    7             (8)           (8) Noninterest income             89            88            97 Noninterest expenses           170           167           180 Net income                     63            73            74 Net credit-related charge-offs (4)           1             1 Selected average balances: Assets                         13,712        13,744        13,782 Loans                          13,323        13,276        13,415 Deposits                       20,501        20,465        20,019    California Market (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13   4th Qtr '12 Net interest income (FTE)      $    176      $    171      $    178 Provision for credit losses    (8)           (3)           7 Noninterest income             37            42            35 Noninterest expenses           100           101           100 Net income                     76            71            62 Net credit-related charge-offs (2)           8             12 Selected average balances: Assets                         14,710        14,245        13,549 Loans                          14,431        14,002        13,275 Deposits                       15,219        14,567        15,457    Texas Market (dollar amounts in millions)   4th Qtr '13   3rd Qtr '13   4th Qtr '12 Net interest income (FTE)      $    147      $    129      $    136 Provision for credit losses    5             17            4 Noninterest income             33            35            31 Noninterest expenses           93            92            90 Net income                     52            35            47 Net credit-related charge-offs 13            4             5 Selected average balances: Assets                         10,458        10,642        10,554 Loans                          9,766         9,942         9,818 Deposits                       10,536        10,298        9,809    Conference Call and Webcast Comerica will host a conference call to review fourth quarter 2013 financial results at 7 a.m. CT Friday, January 17, 2014. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 23046513). The call and supplemental financial information can also be accessed via Comerica's "Investor Relations" page at www.comerica.com. A replay of the Webcast can be accessed via Comerica's "Investor Relations" page at www.comerica.com.  Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three major business segments: The Business Bank, The Retail Bank and Wealth Management. Comerica focuses on relationships and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico.  This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Comerica's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.  Forward-looking Statements Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "contemplates," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "opportunity," "initiative," "outcome," "continue," "remain," "maintain," "on course," "trend," "objective," "looks forward" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in general economic, political or industry conditions; changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; changes in Comerica's credit rating; the interdependence of financial service companies; changes in regulation or oversight; unfavorable developments concerning credit quality; any future acquisitions or divestitures; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers; the implementation of Comerica's strategies and business models; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; operational difficulties, failure of technology infrastructure or information security incidents; changes in the financial markets, including fluctuations in interest rates and their impact on deposit pricing; competitive product and pricing pressures among financial institutions within Comerica's markets; changes in customer behavior; management's ability to maintain and expand customer relationships; management's ability to retain key officers and employees; the impact of legal and regulatory proceedings or determinations; the effectiveness of methods of reducing risk exposures; the effects of terrorist activities and other hostilities; the effects of catastrophic events including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods; changes in accounting standards and the critical nature of Comerica's accounting policies. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. In particular, please refer to "Item 1A. Risk Factors" beginning on page 13 of Comerica's Annual Report on Form 10-K for the year ended December 31, 2012 and on page 68 of the Corporation's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.    CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) Comerica Incorporated and Subsidiaries                        Three Months Ended                Years Ended                        December   September  December    December 31,                        31,        30,        31, (in millions, except   2013       2013       2012        2013       2012 per share data) PER COMMON SHARE AND COMMON STOCK DATA Diluted net income     $ 0.77     $ 0.78     $ 0.68      $ 3.00     $ 2.67 Cash dividends         0.17       0.17       0.15        0.68       0.55 declared Common shareholders'   39.39      37.94      36.87 equity (at period end) Tangible common equity 35.81      34.38      33.38 (at period end) (a) Average diluted shares 186,166    187,104    187,954     186,927    192,473 (in thousands) KEY RATIOS Return on average common shareholders'   8.26     % 8.50     % 7.36     %  8.17     % 7.43     % equity Return on average      0.90       0.92       0.81        0.89       0.83 assets Tier 1 common capital  10.60      10.72      10.14 ratio (a) (b) Tier 1 risk-based      10.60      10.72      10.14 capital ratio (b) Total risk-based       13.05      13.42      13.15 capital ratio (b) Leverage ratio (b)     10.82      10.88      10.57 Tangible common equity 10.11      9.87       9.76 ratio (a) AVERAGE BALANCES Commercial loans       $ 27,683   $ 27,759   $ 27,462    $ 27,971   $ 26,224 Real estate construction loans: Commercial Real Estate 1,363      1,263      1,033       1,241      1,031 business line (c) Other business lines   289        259        266         245        359 (d) Total real estate      1,652      1,522      1,299       1,486      1,390 construction loans Commercial mortgage loans: Commercial Real Estate 1,608      1,714      1,939       1,738      2,259 business line (c) Other business lines   7,106      7,229      7,580       7,322      7,583 (d) Total commercial       8,714      8,943      9,519       9,060      9,842 mortgage loans Lease financing        838        839        839         847        864 International loans    1,303      1,252      1,314       1,275      1,272 Residential mortgage   1,679      1,642      1,525       1,620      1,505 loans Consumer loans         2,185      2,137      2,161       2,153      2,209 Total loans            44,054     44,094     44,119      44,412     43,306 Earning assets         59,924     58,892     59,276      59,091     57,483 Total assets           64,605     63,660     64,257      63,936     62,572 Noninterest-bearing    23,532     22,379     22,758      22,379     21,004 deposits Interest-bearing       29,237     29,486     28,524      29,332     28,529 deposits Total deposits         52,769     51,865     51,282      51,711     49,533 Common shareholders'   7,010      6,923      7,062       6,968      7,012 equity NET INTEREST INCOME Net interest income (fully taxable         $ 431      $ 413      $ 425       $ 1,675    $ 1,731 equivalent basis) Fully taxable          1          1          1           3          3 equivalent adjustment Net interest margin (fully taxable         2.86     % 2.79     % 2.87     %  2.84     % 3.03     % equivalent basis) CREDIT QUALITY Nonaccrual loans       $ 350      $ 437      $ 519 Reduced-rate loans     24         22         22 Total nonperforming    374        459        541 loans (e) Foreclosed property    9          19         54 Total nonperforming    383        478        595 assets (e) Loans past due 90 days or more and still      16         25         23 accruing Gross loan charge-offs 41         39         60          $ 153      $ 245 Loan recoveries        28         20         23          80         75 Net loan charge-offs   13         19         37          73         170 Allowance for loan     598        604        629 losses Allowance for credit losses on              36         34         32 lending-related commitments Total allowance for    634        638        661 credit losses Allowance for loan losses as a percentage 1.32     % 1.37     % 1.37     % of total loans Net loan charge-offs as a percentage of     0.12       0.18       0.34        0.16     % 0.39     % average total loans (f) Nonperforming assets as a percentage of total loans and        0.84       1.08       1.29 foreclosed property (e) Allowance for loan losses as a percentage 160        131        116 of total nonperforming loans  (a) See Reconciliation of Non-GAAP Financial Measures. (b) December 31, 2013 ratios are estimated. (c) Primarily loans to real estate developers. (d) Primarily loans secured by owner-occupied real estate. (e) Excludes loans acquired with credit-impairment. (f) Lending-related commitment charge-offs were insignificant     in all periods presented.    CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries                                        December 31, September 30, December 31, (in millions, except share data)       2013         2013          2012                                        (unaudited)  (unaudited) ASSETS Cash and due from banks                $  1,140     $   1,384     $  1,395 Federal funds sold                     —            —             100 Interest-bearing deposits with banks   5,311        5,704         3,039 Other short-term investments           112          106           125 Investment securities                  9,307        9,488         10,297 available-for-sale Commercial loans                       28,815       27,897        29,513 Real estate construction loans         1,762        1,552         1,240 Commercial mortgage loans              8,787        8,785         9,472 Lease financing                        845          829           859 International loans                    1,327        1,286         1,293 Residential mortgage loans             1,697        1,650         1,527 Consumer loans                         2,237        2,152         2,153 Total loans                            45,470       44,151        46,057 Less allowance for loan losses         (598)        (604)         (629) Net loans                              44,872       43,547        45,428 Premises and equipment                 594          604           622 Accrued income and other assets        3,874        3,837         4,063 Total assets                           $  65,210    $   64,670    $  65,069 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits           $  23,875    $   23,896    $  23,279 Money market and interest-bearing      22,332       21,697        21,273 checking deposits Savings deposits                       1,673        1,645         1,606 Customer certificates of deposit       5,063        5,180         5,531 Foreign office time deposits           349          491           502 Total interest-bearing deposits        29,417       29,013        28,912 Total deposits                         53,292       52,909        52,191 Short-term borrowings                  253          226           110 Accrued expenses and other liabilities 941          1,001         1,106 Medium- and long-term debt             3,543        3,565         4,720 Total liabilities                      58,029       57,701        58,127 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares            1,141        1,141         1,141 Capital surplus                        2,179        2,171         2,162 Accumulated other comprehensive loss   (391)        (541)         (413) Retained earnings                      6,349        6,239         5,931 Less cost of common stock in treasury - 45,860,786 shares at 12/31/13,       (2,097)      (2,041)       (1,879) 44,483,659 shares at 9/30/13 and 39,889,610 shares at 12/31/12 Total shareholders' equity             7,181        6,969         6,942 Total liabilities and shareholders'    $  65,210    $   64,670    $  65,069 equity    CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Comerica Incorporated and Subsidiaries                                          Three Months Ended  Years Ended                                          December 31,        December 31, (in millions, except per share data)     2013       2012     2013     2012 INTEREST INCOME Interest and fees on loans               $  397     $ 398    $ 1,556  $ 1,617 Interest on investment securities        55         55       214      234 Interest on short-term investments       4          3        14       12 Total interest income                    456        456      1,784    1,863 INTEREST EXPENSE Interest on deposits                     12         16       55       70 Interest on medium- and long-term debt   14         16       57       65 Total interest expense                   26         32       112      135 Net interest income                      430        424      1,672    1,728 Provision for credit losses              9          16       46       79 Net interest income after provision for  421        408      1,626    1,649 credit losses NONINTEREST INCOME Service charges on deposit accounts      53         52       214      214 Fiduciary income                         43         42       171      158 Commercial lending fees                  28         25       99       96 Card fees                                19         17       74       65 Letter of credit fees                    15         17       64       71 Bank-owned life insurance                9          9        40       39 Foreign exchange income                  9          9        36       38 Brokerage fees                           4          5        17       19 Net securities gains (losses)            —          1        (1)      12 Other noninterest income                 24         27       112      106 Total noninterest income                 204        204      826      818 NONINTEREST EXPENSES Salaries                                 203        196      769      778 Employee benefits                        61         59       246      240 Total salaries and employee benefits     264        255      1,015    1,018 Net occupancy expense                    41         42       160      163 Equipment expense                        15         15       60       65 Outside processing fee expense           30         28       119      107 Software expense                         24         23       90       90 FDIC insurance expense                   7          9        33       38 Advertising expense                      3          6        21       27 Other real estate expense                (1)        3        2        9 Merger and restructuring charges         —          2        —        35 Other noninterest expenses               46         44       178      205 Total noninterest expenses               429        427      1,678    1,757 Income before income taxes               196        185      774      710 Provision for income taxes               51         55       205      189 NET INCOME                               145        130      569      521 Less income allocated to participating   2          2        8        6 securities Net income attributable to common shares $  143     $ 128    $ 561    $ 515 Earnings per common share: Basic                                    $  0.79    $ 0.68   $ 3.07   $ 2.68 Diluted                                  0.77       0.68     3.00     2.67 Comprehensive income (loss)              295        (30)     591      464 Cash dividends declared on common stock  31         28       126      106 Cash dividends declared per common share 0.17       0.15     0.68     0.55    CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Comerica Incorporated and Subsidiaries               Fourth  Third   Second  First   Fourth   Fourth Quarter 2013 Compared To:               Quarter Quarter Quarter Quarter Quarter  Third Quarter      Fourth Quarter                                                        2013               2012 (in millions, except per    2013    2013    2013    2013    2012     Amount    Percent  Amount  Percent share data) INTEREST INCOME Interest and  $ 397   $ 381   $ 388   $ 390   $ 398    $ 16      4     %  $ (1)   —     % fees on loans Interest on investment    55      54      52      53      55       1         2        —       — securities Interest on short-term    4       4       3       3       3        —         —        1       27 investments Total interest      456     439     443     446     456      17        4        —       — income INTEREST EXPENSE Interest on   12      13      15      15      16       (1)       (8)      (4)     (24) deposits Interest on medium- and   14      14      14      15      16       —         —        (2)     (15) long-term debt Total interest      26      27      29      30      32       (1)       (5)      (6)     (20) expense Net interest  430     412     414     416     424      18        4        6       1 income Provision for 9       8       13      16      16       1         22       (7)     (42) credit losses Net interest income after provision     421     404     401     400     408      17        4        13      3  for credit losses NONINTEREST INCOME Service charges on    53      53      53      55      52       —         —        1       1 deposit accounts Fiduciary     43      41      44      43      42       2         2        1       4 income Commercial    28      28      22      21      25       —         —        3       6 lending fees Card fees     19      20      18      17      17       (1)       (1)      2       15 Letter of     15      17      16      16      17       (2)       (9)      (2)     (13) credit fees Bank-owned life          9       12      10      9       9        (3)       (25)     —       — insurance Foreign exchange      9       9       9       9       9        —         —        —       — income Brokerage     4       4       4       5       5        —         —        (1)     (14) fees Net securities    —       1       (2)     —       1        (1)       (43)     (1)     (82) gains (losses) Other noninterest   24      29      34      25      27       (5)       (16)     (3)     (6) income Total noninterest   204     214     208     200     204      (10)      (5)      —       — income NONINTEREST EXPENSES Salaries      203     196     182     188     196      7         4        7       4 Employee      61      59      63      63      59       2         3        2       4 benefits Total salaries and  264     255     245     251     255      9         3        9       4 employee benefits Net occupancy 41      41      39      39      42       —         —        (1)     (2) expense Equipment     15      15      15      15      15       —         —        —       — expense Outside processing    30      31      30      28      28       (1)       (7)      2       5 fee expense Software      24      22      22      22      23       2         11       1       6 expense FDIC insurance     7       9       8       9       9        (2)       (19)     (2)     (22) expense Advertising   3       6       6       6       6        (3)       (49)     (3)     (48) expense Other real estate        (1)     1       1       1       3        (2)       N/M      (4)     N/M expense Merger and restructuring —       —       —       —       2        —         —        (2)     N/M charges Other noninterest   46      37      50      45      44       9         23       2       1 expenses Total noninterest   429     417     416     416     427      12        3        2       — expenses Income before 196     201     193     184     185      (5)       (2)      11      6 income taxes Provision for 51      54      50      50      55       (3)       (5)      (4)     (7) income taxes NET INCOME    145     147     143     134     130      (2)       (2)      15      11 Less income allocated to  2       2       2       2       2        —         —        —       — participating securities Net income attributable  $ 143   $ 145   $ 141   $ 132   $ 128    $ (2)     (2)   %  $ 15    11    % to common shares Earnings per common share: Basic         $ 0.79  $ 0.80  $ 0.77  $ 0.71  $ 0.68   $ (0.01)  (1)   %  $ 0.11  16    % Diluted       0.77    0.78    0.76    0.70    0.68     (0.01)    (1)      0.09    13 Comprehensive 295     144     15      137     (30)     151       N/M      325     N/M income (loss) Cash dividends     31      31      32      32      28       —         —        3       10 declared on common stock Cash dividends     0.17    0.17    0.17    0.17    0.15     —         —        0.02    13 declared per common share N/M - Not Meaningful    ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited) Comerica Incorporated and Subsidiaries                                       2013                             2012 (in millions)                         4th Qtr 3rd Qtr 2nd Qtr 1st Qtr  4th Qtr Balance at beginning of period        $ 604   $ 613   $ 617   $ 629    $ 647 Loan charge-offs: Commercial                            31      20      19      21       42 Real estate construction: Commercial Real Estate business line  —       1       2       —        1 (a) Other business lines (b)              —       —       —       —        — Total real estate construction        —       1       2       —        1 Commercial mortgage: Commercial Real Estate business line  1       6       2       1        5 (a) Other business lines (b)              4       3       7       12       6 Total commercial mortgage             5       9       9       13       11 International                         —       —       —       —        — Residential mortgage                  1       1       1       1        2 Consumer                              4       8       4       3        4 Total loan charge-offs                41      39      35      38       60 Recoveries on loans previously charged-off: Commercial                            17      8       11      6        13 Real estate construction              3       2       1       1        1 Commercial mortgage                   5       7       3       5        6 Lease financing                       —       1       —       —        — International                         —       —       —       —        1 Residential mortgage                  1       1       1       1        1 Consumer                              2       1       2       1        1 Total recoveries                      28      20      18      14       23 Net loan charge-offs                  13      19      17      24       37 Provision for loan losses             7       10      13      12       19 Balance at end of period              $ 598   $ 604   $ 613   $ 617    $ 629 Allowance for loan losses as a        1.32  % 1.37  % 1.35  % 1.37  %  1.37  % percentage of total loans Net loan charge-offs as a percentage  0.12    0.18    0.15    0.21     0.34 of average total loans  (a) Primarily charge-offs of loans to real estate developers. (b) Primarily charge-offs of loans secured by owner-occupied     real estate.    ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited) Comerica Incorporated and Subsidiaries                                       2013                             2012 (in millions)                         4th Qtr 3rd Qtr 2nd Qtr 1st Qtr  4th Qtr Balance at beginning of period        $  34   $  36   $  36   $  32    $  35 Add: Provision for credit losses on   2       (2)     —       4        (3) lending-related commitments Balance at end of period              $  36   $  34   $  36   $  36    $  32 Unfunded lending-related commitments  $  1    $  2    $  1    $  2     $  — sold    NONPERFORMING ASSETS (unaudited) Comerica Incorporated and Subsidiaries                            2013                                        2012 (in millions)              4th Qtr       3rd Qtr    2nd Qtr   1st Qtr  4th Qtr SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS Nonaccrual loans: Business loans: Commercial            $   81        $  107     $  102    $ 102    $ 103 Real estate construction: Commercial Real  20            24         26        30       30 Estate business line (a) Other business   1             1          2         3        3 lines (b) Total real  21            25         28        33       33 estate construction Commercial mortgage: Commercial Real  51            67         69        86       94 Estate business line (a) Other business   105           139        157       178      181 lines (b) Total       156           206        226       264      275 commercial mortgage Lease financing       —             —          —         —        3 International         4             —          —         —        — Total nonaccrual      262           338        356       399      414 business loans Retail loans: Residential mortgage  53            63         62        65       70 Consumer: Home equity      33            34         28        28       31 Other consumer   2             2          3         2        4 Total       35            36         31        30       35 consumer Total nonaccrual retail    88            99         93        95       105 loans Total nonaccrual loans     350           437        449       494      519 Reduced-rate loans         24            22         22        21       22 Total nonperforming loans  374           459        471       515      541 (c) Foreclosed property        9             19         29        40       54 Total nonperforming assets $   383       $  478     $  500    $ 555    $ 595 (c) Nonperforming loans as a   0.82      %   1.04    %  1.04    % 1.14  %  1.17  % percentage of total loans Nonperforming assets as a percentage of total loans  0.84          1.08       1.10      1.23     1.29  and foreclosed property Allowance for loan losses as a percentage of total   160           131        130       120      116  nonperforming loans Loans past due 90 days or  $   16        $  25      $  20     $ 25     $ 23 more and still accruing ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at        $   437       $  449     $  494    $ 519    $ 665 beginning of period Loans transferred to       23            50         37        34       36 nonaccrual (d) Nonaccrual business loan   (33)          (25)       (25)      (34)     (54) gross charge-offs (e) Nonaccrual business loans  (14)          (17)       (9)       (7)      (48) sold (f) Payments/Other (g)         (63)          (20)       (48)      (18)     (80) Nonaccrual loans at end of $   350       $  437     $  449    $ 494    $ 519 period (a) Primarily loans to real estate developers. (b) Primarily loans secured by owner-occupied real estate. (c) Excludes loans acquired with credit impairment. (d) Based on an analysis of nonaccrual loans with book balances greater than $2 million. (e) Analysis of gross loan charge-offs: Nonaccrual business loans  $   33        $  25      $  25     $ 34     $ 54 Performing criticized      3             5          5         —        — loans Consumer and residential   5             9          5         4        6 mortgage loans Total gross loan           $   41        $  39      $  35     $ 38     $ 60 charge-offs (f) Analysis of loans sold: Nonaccrual business loans  $   14        $  17      $  9      $ 7      $ 48 Performing criticized      22            31         40        12       24 loans Total loans sold           $   36        $  48      $  49     $ 19     $ 72 (g) Includes net changes related to nonaccrual loans with balances less than $2 million, payments on nonaccrual loans with book balances greater than $2 million and transfers of nonaccrual loans to foreclosed property. Excludes business loan gross charge-offs and business nonaccrual loans sold.    ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) Comerica Incorporated and Subsidiaries                         Years Ended                         December 31, 2013           December 31, 2012                         Average            Average  Average            Average (dollar amounts in      Balance   Interest Rate     Balance   Interest Rate millions) Commercial loans        $ 27,971  $ 917    3.28  %  $ 26,224  $ 903    3.44  % Real estate             1,486     57       3.85     1,390     62       4.44 construction loans Commercial mortgage     9,060     372      4.11     9,842     437      4.44 loans Lease financing         847       27       3.23     864       26       3.01 International loans     1,275     48       3.74     1,272     47       3.73 Residential mortgage    1,620     66       4.09     1,505     68       4.55 loans Consumer loans          2,153     71       3.30     2,209     76       3.42 Total loans (a)         44,412    1,558    3.51     43,306    1,619    3.74 Mortgage-backed securities              9,246     213      2.33     9,446     231      2.52 available-for-sale Other investment securities              391       2        0.48     469       4        0.77 available-for-sale Total investment securities              9,637     215      2.25     9,915     235      2.43 available-for-sale Interest-bearing        4,930     13       0.26     4,128     10       0.26 deposits with banks (b) Other short-term        112       1        1.22     134       2        1.65 investments Total earning assets    59,091    1,787    3.03     57,483    1,866    3.27 Cash and due from banks 987                         983 Allowance for loan      (622)                       (693) losses Accrued income and      4,480                       4,799 other assets Total assets            $ 63,936                    $ 62,572 Money market and interest-bearing        $ 21,704  28       0.13     $ 20,622  35       0.17 checking deposits Savings deposits        1,657     1        0.03     1,593     1        0.06 Customer certificates   5,471     23       0.42     5,902     31       0.53 of deposit Foreign office time     500       3        0.52     412       3        0.63 deposits Total interest-bearing  29,332    55       0.19     28,529    70       0.25 deposits Short-term borrowings   211       —        0.07     76        —        0.12 Medium- and long-term   3,972     57       1.45     4,818     65       1.36 debt Total interest-bearing  33,515    112      0.33     33,423    135      0.41 sources Noninterest-bearing     22,379                      21,004 deposits Accrued expenses and    1,074                       1,133 other liabilities Total shareholders'     6,968                       7,012 equity Total liabilities and   $ 63,936                    $ 62,572 shareholders' equity Net interest income/rate spread                $ 1,675  2.70               $ 1,731  2.86 (FTE) FTE adjustment                    $ 3                         $ 3 Impact of net noninterest-bearing                        0.14                        0.17 sources of funds Net interest margin (as a percentage of average                    2.84  %                     3.03  % earning assets) (FTE) (a) (b)      Accretion of the purchase discount on the acquired loan portfolio of $49 (a) million and $71 million in 2013 and 2012, respectively, increased the net     interest margin by 8 basis points and 12 basis points in each respective     period.     Excess liquidity, represented by average balances deposited with the (b) Federal Reserve Bank, reduced the net interest margin by 23 basis points     and 21 basis points in 2013 and 2012, respectively.    ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) Comerica Incorporated and Subsidiaries                     Three Months Ended                     December 31, 2013           September 30, 2013          December 31, 2012                     Average            Average  Average            Average  Average            Average (dollar amounts in  Balance   Interest Rate     Balance   Interest Rate     Balance   Interest Rate millions) Commercial loans    $ 27,683  $  228   3.26  %  $ 27,759  $  226   3.25  %  $ 27,462  $  230   3.33  % Real estate         1,652     15       3.50     1,522     15       3.78     1,299     15       4.32 construction loans Commercial mortgage 8,714     101      4.62     8,943     88       3.90     9,519     100      4.22 loans Lease financing     838       7        3.27     839       7        3.21     839       7        3.27 International loans 1,303     12       3.78     1,252     12       3.76     1,314     12       3.73 Residential         1,679     17       3.97     1,642     17       3.98     1,525     16       4.24 mortgage loans Consumer loans      2,185     18       3.24     2,137     17       3.27     2,161     19       3.38 Total loans (a)     44,054    398      3.58     44,094    382      3.44     44,119    399      3.60 Mortgage-backed securities          8,969     55       2.46     8,989     54       2.41     9,831     55       2.29 available-for-sale Other investment securities          396       —        0.45     391       —        0.43     419       —        0.76 available-for-sale Total investment securities          9,365     55       2.37     9,380     54       2.32     10,250    55       2.22 available-for-sale Interest-bearing deposits with banks 6,400     4        0.26     5,308     4        0.26     4,785     2        0.25 (b) Other short-term    105       —        0.69     110       —        0.77     122       1        1.13 investments Total earning       59,924    457      3.03     58,892    440      2.97     59,276    457      3.08 assets Cash and due from   970                         1,027                       1,030 banks Allowance for loan  (609)                       (622)                       (654) losses Accrued income and  4,320                       4,363                       4,605 other assets Total assets        $ 64,605                    $ 63,660                    $ 64,257 Money market and interest-bearing    $ 22,030  6        0.12     $ 21,894  7        0.13     $ 20,760  9        0.16 checking deposits Savings deposits    1,667     —        0.03     1,680     —        0.04     1,603     —        0.03 Customer certificates of     5,078     5        0.38     5,384     6        0.41     5,634     6        0.49 deposit Foreign office time 462       1        0.47     528       —        0.48     527       1        0.60 deposits Total interest-bearing    29,237    12       0.17     29,486    13       0.18     28,524    16       0.22 deposits Short-term          279       —        0.06     249       —        0.06     70        —        0.12 borrowings Medium- and         3,563     14       1.53     3,590     14       1.54     4,735     16       1.35 long-term debt Total interest-bearing    33,079    26       0.31     33,325    27       0.32     33,329    32       0.38 sources Noninterest-bearing 23,532                      22,379                      22,758 deposits Accrued expenses and other           984                         1,033                       1,108 liabilities Total shareholders' 7,010                       6,923                       7,062 equity Total liabilities and shareholders'   $ 64,605                    $ 63,660                    $ 64,257 equity Net interest income/rate spread            $  431   2.72               $  413   2.65               $  425   2.70 (FTE) FTE adjustment                $  1                        $  1                        $  1 Impact of net noninterest-bearing                    0.14                        0.14                        0.17 sources of funds Net interest margin (as a percentage of average earning                        2.86  %                     2.79  %                     2.87  % assets) (FTE) (a) (b)      Accretion of the purchase discount on the acquired loan portfolio of $23     million, $8 million and $13 million in the fourth and third quarters of (a) 2013 and the fourth quarter of 2012, respectively, increased the net     interest margin by 15 basis points, 5 basis points and 9 basis points in     each respective period.     Excess liquidity, represented by average balances deposited with the (b) Federal Reserve Bank, reduced the net interest margin by 31 basis points     and 24 basis points in the fourth and third quarters of 2013,     respectively, and by 22 basis points in the fourth quarter of 2012.    CONSOLIDATED STATISTICAL DATA (unaudited) Comerica Incorporated and Subsidiaries                    December 31, September 30, June 30,   March 31,  December                                                                     31, (in millions, except per share   2013         2013          2013       2013       2012 data) Commercial loans: Floor plan         $  3,504     $  2,869      $ 3,241    $ 2,963    $ 2,939 Other              25,311       25,028        25,945     25,545     26,574 Total commercial   28,815       27,897        29,186     28,508     29,513 loans Real estate construction loans: Commercial Real Estate business    1,447        1,283         1,223      1,185      1,049 line (a) Other business     315          269           256        211        191 lines (b) Total real estate  1,762        1,552         1,479      1,396      1,240 construction loans Commercial mortgage loans: Commercial Real Estate business    1,678        1,592         1,743      1,812      1,873 line (a) Other business     7,109        7,193         7,264      7,505      7,599 lines (b) Total commercial   8,787        8,785         9,007      9,317      9,472 mortgage loans Lease financing    845          829           843        853        859 International      1,327        1,286         1,209      1,269      1,293 loans Residential        1,697        1,650         1,611      1,568      1,527 mortgage loans Consumer loans: Home equity        1,517        1,501         1,474      1,498      1,537 Other consumer     720          651           650        658        616 Total consumer     2,237        2,152         2,124      2,156      2,153 loans Total loans        $  45,470    $  44,151     $ 45,459   $ 45,067   $ 46,057 Goodwill           $  635       $  635        $ 635      $ 635      $ 635 Core deposit       16           17            18         19         20 intangible Loan servicing     1            1             2          2          2 rights Tier 1 common capital ratio (c)  10.60      % 10.72      %  10.43    % 10.37    % 10.14    % (d) Tier 1 risk-based  10.60        10.72         10.43      10.37      10.14 capital ratio (c) Total risk-based   13.05        13.42         13.29      13.41      13.15 capital ratio (c) Leverage ratio (c) 10.82        10.88         10.81      10.75      10.57 Tangible common    10.11        9.87          10.04      9.86       9.76 equity ratio (d) Common shareholders'      $  39.39     $  37.94      $ 37.32    $ 37.41    $ 36.87 equity per share of common stock Tangible common equity per share   35.81        34.38         33.79      33.90      33.38 of common stock (d) Market value per share for the quarter: High               48.69        43.49         40.44      36.99      32.14 Low                38.64        38.56         33.55      30.73      27.72 Close              47.54        39.31         39.83      35.95      30.34 Quarterly ratios: Return on average common             8.26       % 8.50       %  8.23     % 7.68     % 7.36     % shareholders' equity Return on average  0.90         0.92          0.90       0.84       0.81 assets Efficiency ratio   67.55        66.66         66.43      67.58      68.08 (e) Number of banking  483          484           484        487        487 centers Number of employees - full   8,948        8,918         8,929      9,001      9,035 time equivalent  (a) Primarily loans to real estate developers. (b) Primarily loans secured by owner-occupied real estate. (c) December 31, 2013 ratios are estimated. (d) See Reconciliation of Non-GAAP Financial Measures.     Noninterest expenses as a percentage of the sum of net (e) interest income (FTE) and noninterest income excluding net     securities gains.    PARENT COMPANY ONLY BALANCE SHEETS (unaudited) Comerica Incorporated                                        December 31, September 30, December 31, (in millions, except share data)       2013         2013          2012 ASSETS Cash and due from subsidiary bank      $   31       $   36        $   2 Short-term investments with subsidiary 482          480           431 bank Other short-term investments           96           92            88 Investment in subsidiaries,            7,204        7,008         7,045 principally banks Premises and equipment                 4            4             4 Other assets                           139          134           150 Total assets                      $   7,956    $   7,754     $   7,720 LIABILITIES AND SHAREHOLDERS' EQUITY Medium- and long-term debt             $   617      $   620       $   629 Other liabilities                      158          165           149 Total liabilities                 775          785           778 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares       1,141        1,141         1,141 Capital surplus                        2,179        2,171         2,162 Accumulated other comprehensive loss   (391)        (541)         (413) Retained earnings                      6,349        6,239         5,931 Less cost of common stock in treasury - 45,860,786 shares at 12/31/13,       (2,097)      (2,041)       (1,879) 44,483,659 shares at 9/30/13 and 39,889,610 shares at 12/31/12 Total shareholders' equity        7,181        6,969         6,942 Total liabilities and             $   7,956    $   7,754     $   7,720 shareholders' equity    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) Comerica Incorporated and Subsidiaries                                             Accumulated               Common Stock                  Other                             Total               Shares               Capital  Comprehensive Retained Treasury   Shareholders' (in millions, except per    Outstanding Amount   Surplus  Loss          Earnings Stock      Equity share data) BALANCE AT DECEMBER 31,  197.3       $ 1,141  $ 2,170  $   (356)     $ 5,546  $ (1,633)  $   6,868 2011 Net income    —           —        —        —             521      —          521 Other comprehensive —           —        —        (57)          —        —          (57) loss, net of tax Cash dividends declared on   —           —        —        —             (106)    —          (106) common stock ($0.55 per share) Purchase of   (10.2)      —        —        —             —        (308)      (308) common stock Net issuance of common stock under   1.2         —        (46)     —             (30)     63         (13) employee stock plans Share-based   —           —        37       —             —        —          37 compensation Other         —           —        1        —             —        (1)        — BALANCE AT DECEMBER 31,  188.3       $ 1,141  $ 2,162  $   (413)     $ 5,931  $ (1,879)  $   6,942 2012 Net income    —           —        —        —             569      —          569 Other comprehensive —           —        —        22            —        —          22 income, net of tax Cash dividends declared on   —           —        —        —             (126)    —          (126) common stock ($0.68 per share) Purchase of   (7.5)       —        —        —             —        (291)      (291) common stock Net issuance of common stock under   1.5         —        (17)     —             (25)     72         30 employee stock plans Share-based   —           —        35       —             —        —          35 compensation Other         —           —        (1)      —             —        1          — BALANCE AT DECEMBER 31,  182.3       $ 1,141  $ 2,179  $   (391)     $ 6,349  $ (2,097)  $   7,181 2013    BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) Comerica Incorporated and Subsidiaries (dollar amounts in     Business    Retail     Wealth millions) Three Months Ended December Bank        Bank       Management  Finance    Other     Total 31, 2013 Earnings summary: Net interest income         $ 387       $ 150      $  47       $ (161)    $ 8       $ 431 (expense) (FTE) Provision for  24          (8)        (9)         —          2         9 credit losses Noninterest    80          43         61          14         6         204 income Noninterest    151         180        82          2          14        429 expenses Provision (benefit) for  92          7          12          (57)       (2)       52 income taxes (FTE) Net income     $ 200       $ 14       $  23       $ (92)     $ —       $ 145 (loss) Net credit-related $ 6         $ 4        $  3        —          —         $ 13 charge-offs Selected average balances: Assets         $ 35,042    $ 5,997    $  4,873    $ 11,032   $ 7,661   $ 64,605 Loans          34,020      5,323      4,711       —          —         44,054 Deposits       26,873      21,438     3,933       323        202       52,769 Statistical data: Return on average assets 2.29     %  0.25    %  1.86     %  N/M        N/M       0.90     % (a) Efficiency     32.23       93.18      75.84       N/M        N/M       67.55 ratio (b)                Business    Retail     Wealth Three Months Ended          Bank        Bank       Management  Finance    Other     Total September 30, 2013 Earnings summary: Net interest income         $ 368       $ 151      $  45       $ (159)    $ 8       $ 413 (expense) (FTE) Provision for  (1)         10         1           —          (2)       8 credit losses Noninterest    89          45         61          18         1         214 income Noninterest    153         177        81          2          4         417 expenses Provision (benefit) for  96          3          9           (56)       3         55 income taxes (FTE) Net income     $ 209       $ 6        $  15       $ (87)     $ 4       $ 147 (loss) Net credit-related $ 9         $ 7        $  3        —          —         $ 19 charge-offs Selected average balances: Assets         $ 35,298    $ 5,967    $  4,789    $ 11,097   $ 6,509   $ 63,660 Loans          34,178      5,285      4,631       —          —         44,094 Deposits       26,284      21,257     3,782       319        223       51,865 Statistical data: Return on average assets 2.38     %  0.12    %  1.21     %  N/M        N/M       0.92     % (a) Efficiency     33.50       90.27      77.22       N/M        N/M       66.66 ratio (b)                Business    Retail     Wealth Three Months Ended December Bank        Bank       Management  Finance    Other     Total 31, 2012 Earnings summary: Net interest income         $ 387       $ 156      $  47       $ (176)    11        $ 425 (expense) (FTE) Provision for  6           7          2           —          1         16 credit losses Noninterest    79          43         65          15         2         204 income Noninterest    149         181        84          3          10        427 expenses Provision (benefit) for  102         3          10          (62)       3         56 income taxes (FTE) Net income     $ 209       $ 8        $  16       $ (102)    $ (1)     $ 130 (loss) Net credit-related $ 26        $ 6        $  5        —          —         $ 37 charge-offs Selected average balances: Assets         $ 35,359    $ 5,952    $  4,686    $ 12,137   $ 6,123   $ 64,257 Loans          34,325      5,255      4,539       —          —         44,119 Deposits       26,051      20,910     3,798       310        213       51,282 Statistical data: Return on average assets 2.37     %  0.15    %  1.35     %  N/M        N/M       0.81     % (a) Efficiency     31.93       90.36      76.88       N/M        N/M       68.08 ratio (b)  (a) Return on average assets is calculated based on the greater of average     assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income     (FTE) and noninterest income excluding net securities gains. FTE - Fully Taxable Equivalent N/M - Not Meaningful    MARKET SEGMENT FINANCIAL RESULTS (unaudited) Comerica Incorporated and Subsidiaries (dollar amounts in                                         Other      Finance millions) Three Months Ended December Michigan    California  Texas       Markets    & Other    Total 31, 2013 Earnings summary: Net interest income         $ 187       $ 176       $ 147       $ 74       $ (153)    $ 431 (expense) (FTE) Provision for  7           (8)         5           3          2          9 credit losses Noninterest    89          37          33          25         20         204 income Noninterest    170         100         93          50         16         429 expenses Provision (benefit) for  36          45          30          —          (59)       52 income taxes (FTE) Net income     $ 63        $ 76        $ 52        $ 46       $ (92)     $ 145 (loss) Net credit-related $ (4)       $ (2)       $ 13        $ 6        $ —        $ 13 charge-offs (recoveries) Selected average balances: Assets         $ 13,712    $ 14,710    $ 10,458    $ 7,032    $ 18,693   $ 64,605 Loans          13,323      14,431      9,766       6,534      —          44,054 Deposits       20,501      15,219      10,536      5,988      525        52,769 Statistical data: Return on average assets 1.18     %  1.87     %  1.76     %  2.65    %  N/M        0.90     % (a) Efficiency     61.53       47.00       51.71       49.70      N/M        67.55 ratio (b)                                                    Other      Finance Three Months Ended          Michigan    California  Texas       Markets    & Other    Total September 30, 2013 Earnings summary: Net interest income         $ 186       $ 171       $ 129       $ 78       $ (151)    $ 413 (expense) (FTE) Provision for  (8)         (3)         17          4          (2)        8 credit losses Noninterest    88          42          35          30         19         214 income Noninterest    167         101         92          51         6          417 expenses Provision (benefit) for  42          44          20          2          (53)       55 income taxes (FTE) Net income     $ 73        $ 71        $ 35        $ 51       $ (83)     $ 147 (loss) Net credit-related $ 1         $ 8         $ 4         $ 6        $ —        $ 19 charge-offs Selected average balances: Assets         $ 13,744    $ 14,245    $ 10,642    $ 7,423    $ 17,606   $ 63,660 Loans          13,276      14,002      9,942       6,874      —          44,094 Deposits       20,465      14,567      10,298      5,993      542        51,865 Statistical data: Return on average assets 1.38     %  1.84     %  1.21     %  2.73    %  N/M        0.92     % (a) Efficiency     60.89       47.37       56.52       47.65      N/M        66.66 ratio (b)                                                    Other      Finance Three Months Ended December Michigan    California  Texas       Markets    & Other    Total 31, 2012 Earnings summary: Net interest income         $ 192       $ 178       $ 136       $ 84       $ (165)    $ 425 (expense) (FTE) Provision for  (8)         7           4           12         1          16 credit losses Noninterest    97          35          31          24         17         204 income Noninterest    180         100         90          44         13         427 expenses Provision (benefit) for  43          44          26          2          (59)       56 income taxes (FTE) Net income     $ 74        $ 62        $ 47        $ 50       $ (103)    $ 130 (loss) Net credit-related $ 1         $ 12        $ 5         $ 19       $ —        $ 37 charge-offs Selected average balances: Assets         $ 13,782    $ 13,549    $ 10,554    $ 8,112    $ 18,260   $ 64,257 Loans          13,415      13,275      9,818       7,611      —          44,119 Deposits       20,019      15,457      9,809       5,474      523        51,282 Statistical data: Return on average assets 1.42     %  1.50     %  1.71     %  2.48    %  N/M        0.81     % (a) Efficiency     62.14       47.04       53.87       41.38      N/M        68.08 ratio (b)  (a) Return on average assets is calculated based on the greater of average     assets or average liabilities and attributed equity. (b) Noninterest expenses as a percentage of the sum of net interest income     (FTE) and noninterest income excluding net securities gains. FTE - Fully Taxable Equivalent N/M - Not Meaningful    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) Comerica Incorporated and Subsidiaries                  December 31, September 30, June 30,   March 31,  December 31, (dollar amounts  2013         2013          2013       2013       2012 in millions) Tier 1 Common Capital Ratio: Tier 1 and Tier 1 common capital $  6,924     $  6,862      $ 6,800    $ 6,748    $  6,705 (a) (b) Risk-weighted    $  65,301    $  64,027     $ 65,220   $ 65,099   $  66,115 assets (a) (b) Tier 1 and Tier 1 common risk-based       10.60      % 10.72      %  10.43    % 10.37    % 10.14      % capital ratio (b) Basel III Tier 1 Common Capital Ratio: Tier 1 common    $  6,924     $  6,862      $ 6,800    $ 6,748    $  6,705 capital (b) Basel III        (6)          (4)           —          (1)        (39) adjustments (c) Basel III Tier 1 common capital   6,918        6,858         6,800      6,747      6,666 (c) Risk-weighted    $  65,301    $  64,027     $ 65,220   $ 65,099   $  66,115 assets (a) (b) Basel III        1,735        1,726         2,091      1,996      1,854 adjustments (c) Basel III risk-weighted    $  67,036    $  65,753     $ 67,311   $ 67,095   $  67,969 assets (c) Tier 1 common capital ratio    10.6       % 10.7       %  10.4     % 10.4     % 10.1       % (b) Basel III Tier 1 common capital   10.3         10.4          10.1       10.1       9.8 ratio (c) Tangible Common Equity Ratio: Common shareholders'    $  7,181     $  6,969      $ 6,911    $ 6,988    $  6,942 equity Less: Goodwill         635          635           635        635        635 Other intangible 17           18            20         21         22 assets Tangible common  $  6,529     $  6,316      $ 6,256    $ 6,332    $  6,285 equity Total assets     $  65,210    $  64,670     $ 62,947   $ 64,885   $  65,069 Less: Goodwill         635          635           635        635        635 Other intangible 17           18            20         21         22 assets Tangible assets  $  64,558    $  64,017     $ 62,292   $ 64,229   $  64,412 Common equity    11.01      % 10.78      %  10.98    % 10.77    % 10.67      % ratio Tangible common  10.11        9.87          10.04      9.86       9.76 equity ratio Tangible Common Equity per Share of Common Stock: Common shareholders'    $  7,181     $  6,969      $ 6,911    $ 6,988    $  6,942 equity Tangible common  6,529        6,316         6,256      6,332      6,285 equity Shares of common stock            182          184           185        187        188 outstanding (in millions) Common shareholders'    $  39.39     $  37.94      $ 37.32    $ 37.41    $  36.87 equity per share of common stock Tangible common equity per share 35.81        34.38         33.79      33.90      33.38 of common stock  (a) Tier 1 capital and risk-weighted assets as defined by regulation. (b) December 31, 2013 Tier 1 capital and risk-weighted assets are estimated.     Estimated ratios based on the standardized approach in the final rule for (c) the U.S. adoption of the Basel III regulatory capital framework and     excluding most elements of AOCI.    The Tier 1 common capital ratio removes preferred stock and qualifying trust preferred securities from Tier 1 capital as defined by and calculated in conformity with bank regulations. The Basel III Tier 1 common capital ratio further adjusts Tier 1 common capital and risk-weighted assets to account for the final rule approved by U.S. banking regulators in July 2013 for the U.S. adoption of the Basel III regulatory capital framework. The final Basel III capital rules are effective January 1, 2015 for banking organizations subject to the standardized approach. The tangible common equity ratio removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. Tangible common equity per share of common stock removes the effect of intangible assets from common shareholders equity per share of common stock. Comerica believes these measurements are meaningful measures of capital adequacy used by investors, regulators, management and others to evaluate the adequacy of common equity and to compare against other companies in the industry.  SOURCE Comerica Incorporated  Website: http://www.comerica.com Contact: Media, Wayne J. Mielke, (214) 462-4463; or Investors, Darlene P. Persons, (214) 462-6831, or Brittany L. Butler, (214) 462-6834