Comerica Issues Revised 2013 Results Based On Unfavorable Jury Verdict

    Comerica Issues Revised 2013 Results Based On Unfavorable Jury Verdict

PR Newswire

DALLAS, Jan. 21, 2014

DALLAS, Jan.21, 2014 /PRNewswire/ --Comerica Incorporated (NYSE: CMA) today
issued revised 2013 results based on an unfavorable Montana jury verdict,
entered at approximately 7:30 p.m. ET on January 17, 2014. The Montana
litigation ("the case") in which Comerica Bank ("the Bank") was a third-party
defendant, was tried before the Montana Second District Judicial Court for
Silver Bow County in Butte, Montana. The claims underlying the lawsuit against
the Bank grew out of an initial $9 million revolving line of credit loan
extended by the Bank to Masters Group International, Inc. ("Masters"), a then
Michigan-based office supply company, in 2006, that was subsequently increased
to $10.5 million and later paid in full through collection actions taken by
the Bank following a default by Masters.

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Following the jury's decision on the case, Comerica increased its reserve for
litigation and decreased incentive compensation expense based on the revised
results, effective as of December 31, 2013, which resulted in a decrease in
net income of $28 million, or 15 cents per share, for the fourth quarter 2013.

Comerica reiterates its previously stated outlook for 2014, excluding the
impact of this event.

"As we consider possible courses of action, including appealing the decision
to the Montana Supreme Court, the sole appellate court for the state of
Montana, we recorded a charge in the fourth quarter 2013 in accordance with
applicable accounting principles," said Ralph W. Babb Jr., chairman and chief
executive officer. "We believe we had meritorious defenses for this litigation
and anticipated a favorable outcome."

Net income decreased by $28 million, or 15 cents per share, to $117 million,
or 62 cents per share for the fourth quarter 2013, compared to previously
reported net income of $145 million, or 77 cents per share. For the year ended
December 31, 2013, net income decreased to $541 million, or $2.85 per share,
as compared to previously reported net income of $569 million, or $3.00 per
share. As revised, full-year 2013 net income increased $20 million, or 4
percent, compared to 2012, and earnings per diluted share increased 18 cents,
or 7 percent. At December 31, 2013, the revised estimated Tier 1 common
capital ratio was 10.56 percent, as compared to the previously reported ratio
of 10.60 percent. The estimated Basel III Tier 1 common capital ratio remained
at 10.3 percent.

The following table summarizes the impact of the revisions on the previously
reported financial results.

                              December 31, 2013
                              Quarter Ended            Year Ended
(dollar amounts in millions,  As Reported  As Revised  As Reported  As Revised
except per share data)
Noninterest expenses          $  429       $  473      $  1,678     $  1,722
Salaries                      203          197         769          763
Litigation-related expenses   —            52          —            52
Other noninterest expenses    46           44          178          176
Income before income taxes    196          152         774          730
Provision for income taxes    51           35          205          189
Net income                    145          117         569          541
Net income attributable to    143          115         561          533
common shares
Diluted income per common     0.77         0.62        3.00         2.85
share
Total shareholders' equity at 7,181        7,153
period end
Estimated Tier 1 common       10.60    %   10.56   %
capital ratio (a)
Estimated Basel III Tier 1    10.3     %   10.3    %
common capital ratio (a)
Tangible common equity ratio  10.11    %   10.07   %
(a)

a) See Reconciliation of Non-GAAP Financial Measures.

The impact of the change in legal reserves primarily affects the Business Bank
and the Michigan market. The revised financial results, including segment
results, will be reflected in Comerica's Annual Report on Form 10-K. All other
revised financial results are included in the financial information that
follows.

Comerica Bank is a subsidiary of Comerica Incorporated, 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
                    December31, September30, December31,  December31,
(in millions,
except per share    2013         2013          2012          2013       2012
data)
PER COMMON SHARE
AND COMMON STOCK
DATA
Diluted net income  $  0.62      $  0.78       $  0.68       $ 2.85     $ 2.67
Cash dividends      0.17         0.17          0.15          0.68       0.55
declared
Common
shareholders'       39.23        37.94         36.87
equity (at period
end)
Tangible common
equity (at period   35.65        34.38         33.38
end) (a)
Average diluted
shares (in          186,166      187,104       187,954       186,927    192,473
thousands)
KEY RATIOS
Return on average
common              6.66       % 8.50       %  7.36       %  7.76     % 7.43     %
shareholders'
equity
Return on average   0.72         0.92          0.81          0.85       0.83
assets
Tier 1 common
capital ratio (a)   10.56        10.72         10.14
(b)
Tier 1 risk-based   10.56        10.72         10.14
capital ratio (b)
Total risk-based    13.00        13.42         13.15
capital ratio (b)
Leverage ratio (b)  10.77        10.88         10.57
Tangible common     10.07        9.87          9.76
equity ratio (a)
AVERAGE BALANCES
Commercial loans    $  27,683    $  27,759     $  27,462     $ 27,971   $ 26,224
Real estate
construction loans:
Commercial Real
Estate business     1,363        1,263         1,033         1,241      1,031
line (c)
Other business      289          259           266           245        359
lines (d)
Total real estate   1,652        1,522         1,299         1,486      1,390
construction loans
Commercial mortgage
loans:
Commercial Real
Estate business     1,608        1,714         1,939         1,738      2,259
line (c)
Other business      7,106        7,229         7,580         7,322      7,583
lines (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         1,679        1,642         1,525         1,620      1,505
mortgage 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
equivalent          1            1             1             3          3
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    16           25            23
still accruing
Gross loan          41           39            60            $ 153      $ 245
charge-offs
Loan recoveries     28           20            23            80         75
Net loan            13           19            37            73         170
charge-offs
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         1.32       % 1.37       %  1.37       %
percentage 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 0.84         1.08          1.29
loans and
foreclosed property
(e)
Allowance for loan
losses as a         160          131           116
percentage of total
nonperforming loans

(a) See Reconciliation of Non-GAAP Financial Measures.

(b) December31, 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
                                       December31, September30, December31,
(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        3,891        3,837         4,063
Total assets                           $  65,227    $   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 986          1,001         1,106
Medium- and long-term debt             3,543        3,565         4,720
Total liabilities                      58,074       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                      6,321        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             7,153        6,969         6,942
Total liabilities and shareholders'    $  65,227    $   64,670    $  65,069
equity



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Comerica Incorporated and Subsidiaries
                                         Three Months Ended  Years Ended
                                         December31,        December31,
(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                                 197        196      763      778
Employee benefits                        61         59       246      240
Total salaries and employee benefits     258        255      1,009    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
Litigation-related expense               52         —        52       23
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               44         44       176      182
Total noninterest expenses               473        427      1,722    1,757
Income before income taxes               152        185      730      710
Provision for income taxes               35         55       189      189
NET INCOME                               117        130      541      521
Less income allocated to participating   2          2        8        6
securities
Net income attributable to common shares $  115     $ 128    $ 533    $ 515
Earnings per common share:
Basic                                    $  0.64    $ 0.68   $ 2.92   $ 2.68
Diluted                                  0.62       0.68     2.85     2.67
Comprehensive income (loss)              267        (30)     563      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 2013   Fourth Quarter 2012
(in millions,
except per share   2013    2013    2013    2013    2012     Amount   Percent  Amount  Percent
data)
INTEREST INCOME
Interest and fees  $ 397   $ 381   $ 388   $ 390   $ 398    $ 16      4      %   $ (1)     —      %
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 income   43      41      44      43      42       2         2          1         4
Commercial lending 28      28      22      21      25       —         —          3         6
fees
Card fees          19      20      18      17      17       (1)       (1)        2         15
Letter of credit   15      17      16      16      17       (2)       (9)        (2)       (13)
fees
Bank-owned life    9       12      10      9       9        (3)       (25)       —         —
insurance
Foreign exchange   9       9       9       9       9        —         —          —         —
income
Brokerage fees     4       4       4       5       5        —         —          (1)       (14)
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           197     196     182     188     196      1         —          1         1
Employee benefits  61      59      63      63      59       2         3          2         4
Total salaries and 258     255     245     251     255      3         1          3         1
employee benefits
Net occupancy      41      41      39      39      42       —         —          (1)       (2)
expense
Equipment expense  15      15      15      15      15       —         —          —         —
Outside processing 30      31      30      28      28       (1)       (7)        2         5
fee expense
Software expense   24      22      22      22      23       2         11         1         6
Litigation-related 52      (4)     1       3       —        56        N/M        52        N/M
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  44      41      49      42      44       3         7          —         —
expenses
Total noninterest  473     417     416     416     427      56        13         46        11
expenses
Income before      152     201     193     184     185      (49)      (25)       (33)      (18)
income taxes
Provision for      35      54      50      50      55       (19)      (35)       (20)      (36)
income taxes
NET INCOME         117     147     143     134     130      (30)      (21)       (13)      (10)
Less income
allocated to       2       2       2       2       2        —         —          —         —
participating
securities
Net income
attributable to    $ 115   $ 145   $ 141   $ 132   $ 128    $ (30)    (21)%      $ (13)    (10)%
common shares
Earnings per
common share:
Basic              $ 0.64  $ 0.80  $ 0.77  $ 0.71  $ 0.68   $ (0.16)  (20)%      $ (0.04)  (6)%
Diluted            0.62    0.78    0.76    0.70    0.68     (0.16)    (21)       (0.06)    (9)
Comprehensive      267     144     15      137     (30)     123       87         297       N/M
income (loss)
Cash dividends
declared on common 31      31      32      32      28       —         —          3         10
stock
Cash dividends
declared per       0.17    0.17    0.17    0.17    0.15     —         —          0.02      13
common share

N/M - Not Meaningful

CONSOLIDATED STATISTICAL DATA (unaudited)
Comerica Incorporated and Subsidiaries
                 December31, September30, June30,   March31,  December31,
(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    10.56      % 10.72      %  10.43    % 10.37    % 10.14      %
(c) (d)
Tier 1
risk-based       10.56        10.72         10.43      10.37      10.14
capital ratio
(c)
Total risk-based
capital ratio    13.00        13.42         13.29      13.41      13.15
(c)
Leverage ratio   10.77        10.88         10.81      10.75      10.57
(c)
Tangible common  10.07        9.87          10.04      9.86       9.76
equity ratio (d)
Common
shareholders'    $  39.23     $  37.94      $ 37.32    $ 37.41    $  36.87
equity per share
of common stock
Tangible common
equity per share 35.65        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   6.66       % 8.50       %  8.23     % 7.68     % 7.36       %
shareholders'
equity
Return on        0.72         0.92          0.90       0.84       0.81
average assets
Efficiency ratio 74.55        66.66         66.43      67.58      68.08
(e)
Number of        483          484           484        487        487
banking 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) December31, 2013 ratios are estimated.

(d) See Reconciliation of Non-GAAP Financial Measures.

(e) Noninterest expenses as a percentage of the sum of net interest income
    (FTE) and noninterest income excluding net securities gains.



PARENT COMPANY ONLY BALANCE SHEETS (unaudited)
Comerica Incorporated
                                       December31, September30, December31,
(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,            7,176        7,008         7,045
principally banks
Premises and equipment                 4            4             4
Other assets                           139          134           150
Total assets                     $   7,928    $   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                      6,321        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       7,153        6,969         6,942
Total liabilities and            $   7,928    $   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    —            —        —        —             541      —          541
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)     $ 6,321  $ (2,097)  $   7,153
2013



RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)
Comerica Incorporated and Subsidiaries
                 December31, September30, June30,   March31,  December31,
(dollar amounts  2013         2013          2013       2013       2012
in millions)
Tier 1 Common
Capital Ratio:
Tier 1 and Tier
1 common capital $  6,895     $  6,862      $ 6,800    $ 6,748    $  6,705
(a) (b)
Risk-weighted    $  65,317    $  64,027     $ 65,220   $ 65,099   $  66,115
assets (a) (b)
Tier 1 and Tier
1 common
risk-based       10.56      % 10.72      %  10.43    % 10.37    % 10.14      %
capital ratio
(b)
Basel III Tier 1
Common Capital
Ratio:
Tier 1 common    $  6,895     $  6,862      $ 6,800    $ 6,748    $  6,705
capital (b)
Basel III        (6)          (4)           —          (1)        (39)
adjustments (c)
Basel III Tier 1
common capital   6,889        6,858         6,800      6,747      6,666
(c)
Risk-weighted    $  65,317    $  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    $  67,052    $  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'    $  7,153     $  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  $  6,501     $  6,316      $ 6,256    $ 6,332    $  6,285
equity
Total assets     $  65,227    $  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  $  64,575    $  64,017     $ 62,292   $ 64,229   $  64,412
Common equity    10.97      % 10.78      %  10.98    % 10.77    % 10.67      %
ratio
Tangible common  10.07        9.87          10.04      9.86       9.76
equity ratio
Tangible Common
Equity per Share
of Common Stock:
Common
shareholders'    $  7,153     $  6,969      $ 6,911    $ 6,988    $  6,942
equity
Tangible common  6,501        6,316         6,256      6,332      6,285
equity
Shares of common
stock            182          184           185        187        188
outstanding (in
millions)
Common
shareholders'    $  39.23     $  37.94      $ 37.32    $ 37.41    $  36.87
equity per share
of common stock
Tangible common
equity per share 35.65        34.38         33.79      33.90      33.38
of common stock

(a) Tier 1 capital and risk-weighted assets as defined by regulation.
(b) December31, 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 Contact, Wayne J. Mielke, (214) 462-4463, Investor Contacts,
Darlene P. Persons, (214) 462-6831, Brittany L. Butler, (214) 462-6834
 
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