Comerica Reports Second Quarter 2014 Net Income Of $151 Million, Or 80 Cents Per Share, Up 10 Percent From First Quarter 2014

 Comerica Reports Second Quarter 2014 Net Income Of $151 Million, Or 80 Cents                Per Share, Up 10 Percent From First Quarter 2014  Average Loan Increase of $1.7 Billion and Fee Income Growth Drive Revenue Increase of $18 Million Over First Quarter 2014  Continued to Maintain Strong Capital Ratios While Returning $95 Million to Shareholders  PR Newswire  DALLAS, July 15, 2014  DALLAS, July 15, 2014 /PRNewswire/ --Comerica Incorporated (NYSE: CMA) today reported second quarter 2014 net income of $151 million, compared to $139 million for the first quarter 2014 and $143 million for the second quarter 2013. Earnings per diluted share were 80 cents for the second quarter 2014, compared to 73 cents for the first quarter 2014 and 76 cents for the second quarter 2013.  Comerica logo.    (dollar amounts in millions, except  2nd Qtr '14     1st Qtr '14  2nd Qtr '13 per share data) Net interest income (a)              $   416         $   410      $   414 Provision for credit losses          11              9            13 Noninterest income                   220             208          222 Noninterest expenses                 404             406          416 Provision for income taxes           70              64           64 Net income                           151             139          143 Net income attributable to common    149             137          141 shares Diluted income per common share      0.80            0.73         0.76 Average diluted shares (in millions) 186             187          187 Tier 1 common capital ratio (c)      10.49    %  (b) 10.58    %   10.43    % Basel III common equity Tier 1       10.2            10.3         10.1 capital ratio (c) (d) Tangible common equity ratio (c)     10.39           10.20        10.04      Included accretion of the purchase discount on the acquired loan portfolio (a) of $10 million, $12 million and $7 million in the second quarter 2014,     first quarter 2014 and second quarter 2013, respectively. (b) June 30, 2014 ratio is estimated. (c) See Reconciliation of Non-GAAP Financial     Measures.     Estimated ratios based on the standardized     approach in the final rule, as fully (d) phased-in, and excluding most elements of     accumulated other comprehensive income     (AOCI).    "We recorded a 10 percent increase in earnings per share compared to the first quarter, a solid performance given this competitive and persistently low-rate environment," said Ralph W. Babb Jr., chairman and chief executive officer. "We continue to be focused on growing the bottom line by carefully managing the things we can control, such as expanding customer relationships, maintaining expense discipline as well as credit quality, all the while taking a prudent, conservative approach to capital.  "With higher customer-driven fee income and broad-based loan growth, revenue increased more than 3 percent from the first quarter. Average loans were up $1.7 billion, or 4 percent, compared to the first quarter, and period-end loans were up $1.4 billion, or 3 percent, with notable growth in virtually every business line. Average deposits were up $614 million to $53.4 billion. Credit quality continued to be strong, noninterest expenses decreased slightly, and our solid capital position continues to support our growth.  "We attribute these results to continued improvements in the economy, reflected particularly in the loan growth in Texas and California, as well as our expertise in faster growing business lines and consistent focus on relationships. Looking ahead, macro-economic conditions appear to be favorable. The market is competitive, however, we are confident in our ability to add new customer relationships and expand existing ones while maintaining our credit pricing and structure discipline."  Second Quarter 2014 Compared to First Quarter 2014    oAverage total loans increased $1.7 billion, or 4 percent, to $46.7     billion, primarily reflecting an increase of $1.5 billion, or 5 percent in     commercial loans. The increase in commercial loans was reflected in almost     every line of business, led by increases in Mortgage Banker Finance ($433     million), National Dealer Services ($290 million), Energy ($229 million),     and Technology and Life Sciences ($200 million). Period-end total loans     increased $1.4 billion, or 3 percent, to $47.9 billion, primarily     reflecting a $1.2 billion, or 4 percent, increase in commercial loans.   oAverage total deposits increased $614 million, or 1 percent, to $53.4     billion, reflecting an increase in noninterest-bearing deposits of $775     million, partially offset by a decrease in total interest-bearing deposits     of $161 million. Period-end deposits increased $420 million, to $54.2     billion.   oNet interest income increased $6 million, or 2 percent, to $416 million in     the second quarter 2014, compared to $410 million in the first quarter     2014, primarily due to an increase in loan volumes, partially offset by a     decrease in yields.   oThe provision for credit losses increased $2 million to $11 million in the     second quarter 2014, primarily reflecting increases in both loan volume     and commitments. Net charge-offs were $9 million, or 0.08 percent of     average loans, in the second quarter 2014.   oNoninterest income increased $12 million to $220 million in the second     quarter 2014, primarily as a result of increases in several     customer-driven fee categories.   oNoninterest expenses decreased $2 million to $404 million in the second     quarter 2014, primarily reflecting a $7 million decrease in salaries and     benefits expense, partially offset by increases in software expense,     operational losses and outside processing fees.   oCapital remained solid at June 30, 2014, as evidenced by an estimated Tier     1 common capital ratio of 10.49 percent and a tangible common equity ratio     of 10.39 percent.   oComerica repurchased approximately 1.2 million shares of common stock     during second quarter 2014 under the repurchase program. Together with     dividends of $0.20 per share, $95 million was returned to shareholders.  Second Quarter 2014 Compared to Second Quarter 2013    oAverage total loans increased $1.8 billion, or 4 percent, primarily     reflecting an increase of $1.5 billion, or 5 percent, in commercial loans.     The increase in total loans was driven by increases in almost all lines of     business, partially offset by a decrease in Mortgage Banker Finance ($496     million).   oAverage total deposits increased $1.9 billion, or 4 percent, driven by an     increase in noninterest-bearing deposits of $1.9 billion, or 9 percent.   oNet income increased $8 million, or 5 percent, primarily reflecting a     reduction in pension expense, largely due to changes in actuarial     assumptions. Total revenue was stable despite the impact of the prolonged     low-rate environment, and expenses were controlled.  Net Interest Income  (dollar amounts in millions)             2nd Qtr '14  1st Qtr '14  2nd Qtr '13 Net interest income                      $  416       $  410       $  414 Net interest margin                      2.78      %  2.77      %  2.83      % Selected average balances: Total earning assets                     $  60,148    $  59,916    $  58,928 Total loans                              46,725       45,075       44,893 Total investment securities              9,364        9,282        9,793 Federal Reserve Bank deposits (excess    3,801        5,311        3,968 liquidity) Total deposits                           53,384       52,770       51,448 Total noninterest-bearing deposits       24,011       23,236       22,076      oNet interest income increased $6 million to $416 million in the second     quarter 2014, compared to the first quarter 2014.         oInterest on loans increased $9 million, primarily reflecting the          benefit from an increase in loan balances ($12 million) and one          additional day in the quarter ($4 million), partially offset by          decreases in interest collected on nonaccrual loans from an elevated          first quarter 2014 amount ($2 million) and accretion of the purchase          discount on the acquired loan portfolio ($2 million), as well as          lower loan yields ($3 million).        oInterest on investment securities decreased $2 million, primarily          reflecting a decrease in the retrospective adjustment to premium          amortization on mortgage-backed investment securities due to the          slowing of expected future prepayments, compared to the first quarter          2014.        oIncome from short-term investments declined $1 million, largely as a          result of a decrease in excess liquidity.    oThe net interest margin of 2.78 percent increased 1 basis point compared     to the first quarter 2014. The increase in net interest margin was     primarily due to the impact of a decrease in excess liquidity (+6 basis     points), partially offset by decreases in interest collected on nonaccrual     loans (-1 basis points) and the accretion of the purchase discount on the     acquired loan portfolio (-1 basis point), as well as lower loan yields (-2     basis points) and lower yields on mortgage-backed investment securities     (-1 basis point).   oAverage earning assets increased $232 million, to $60.1 billion in the     second quarter 2014, compared to the first quarter 2014, primarily     reflecting an increase of $1.7 billion in average loans, largely offset by     a decrease of $1.5 billion in excess liquidity.  Noninterest Income Noninterest income increased $12 million to $220 million for the second quarter 2014, compared to $208 million for the first quarter 2014, largely due to an increase in customer-driven fees. The $9 million increase in customer-driven fee income was primarily due to increases of $3 million each in commercial lending fees and foreign exchange income, as well as smaller increases in several other customer-driven fee categories. Noncustomer-driven income increased $3 million, primarily due to increases in income from warrants and bank-owned life insurance.  Noninterest Expenses Noninterest expenses decreased $2 million to $404 million for the second quarter 2014, compared to $406 million for the first quarter 2014, primarily reflecting a $7 million decrease in salaries and benefits expense as well as smaller decreases in several other noninterest expense categories, partially offset by increases of $3 million each in software expense and operational losses, and $2 million in outside processing fees. The $7 million decrease in salaries and benefits expense primarily reflected seasonal decreases in payroll taxes and share-based compensation expense, partially offset by the full quarter impact of merit increases and one more day in the second quarter.  Credit Quality (dollar amounts in millions)             2nd Qtr '14  1st Qtr '14  2nd Qtr '13 Net credit-related charge-offs           $   9        $   12       $   17 Net credit-related charge-offs/Average   0.08     %   0.10     %   0.15     % total loans Provision for credit losses              $   11       $   9        $   13 Nonperforming loans (a)                  347          338          471 Nonperforming assets (NPAs) (a)          360          352          500 NPAs/Total loans and foreclosed property 0.75     %   0.76     %   1.10     % Loans past due 90 days or more and still $   7        $   10       $   20 accruing Allowance for loan losses                591          594          613 Allowance for credit losses on           42           37           36 lending-related commitments (b) Total allowance for credit losses        633          631          649 Allowance for loan losses/Period-end     1.23     %   1.28     %   1.35     % total loans Allowance for loan losses/Nonperforming  170          176          130 loans  (a) Excludes loans acquired with credit impairment. (b) Included in "Accrued expenses and other liabilities" on the     consolidated balance sheets.      oNonaccrual loans increased $9 million, to $326 million at June 30, 2014,     compared to $317 million at March 31, 2014.   oCriticized loans increased $49 million, to $2.2 billion at June 30, 2014,     compared to $2.1 billion at March 31, 2014.   oDuring the second quarter 2014, $53 million of borrower relationships over     $2 million were transferred to nonaccrual status, an increase of $34     million from the first quarter 2014.  Balance Sheet and Capital Management Total assets and common shareholders' equity were $65.3 billion and $7.4 billion, respectively, at June 30, 2014, compared to $65.7 billion and $7.3 billion, respectively, at March 31, 2014.  There were approximately 181 million common shares outstanding at June 30, 2014. Comerica increased the quarterly dividend by 1 cent, or 5 percent, to $0.20 per share in the second quarter 2014. Share repurchases of $59 million (1.2 million shares), combined with dividends, returned 63 percent of second quarter 2014 net income to shareholders.  In the second quarter 2014, Comerica issued $350 million of 2.125% senior notes due in May 2019 and announced the intention to call $150 million of subordinated notes, at par, on July 15, 2014. The subordinated notes, originally due in July 2024, had a carrying value of $182 million at June 30, 2014, which will result in a gain in the third quarter 2014 of approximately $32 million.  Comerica's tangible common equity ratio was 10.39 percent at June 30, 2014, an increase of 19 basis points from March 31, 2014. The estimated Tier 1 common capital ratio decreased 9 basis points, to 10.49 percent at June 30, 2014, from March 31, 2014. The estimated common equity Tier 1 ratio under fully phased-in Basel III capital rules and excluding most elements of AOCI was 10.2 percent percent at June 30, 2014.  Full-Year 2014 Outlook Management expectations for full-year 2014, compared to 2013, assumes a continuation of the current economic and low-rate environment and excludes the approximately $32 million gain on the July 2014 early redemption of debt, which is viewed as non-core.    oModerate growth of 4 percent to 6 percent in average loans. Range reflects     growth in the first half along with possible outcomes in the second half     of 2014 in both seasonal declines in National Dealer Services and Mortgage     Banker Finance as well as growth in our remaining business lines, which     slowed throughout the second quarter.   oNet interest income modestly lower, reflecting a decline in purchase     accounting accretion, to $25 million to $30 million, and the effect of     continued pressure from the low-rate environment, approximately offset by     loan growth.   oProvision for credit losses and net charge-offs stable. Increases to the     allowance for credit losses due to loan growth offset by continued strong     credit quality.   oNoninterest income modestly lower, reflecting stable customer-driven fee     income and lower noncustomer-driven income.   oNoninterest expenses lower, reflecting lower litigation-related expenses     and a more than 50 percent decrease in pension expense, to about $39     million.   oIncome tax expense to approximate 32 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 June 30, 2014 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses second quarter 2014 results compared to first quarter 2014.  In the second quarter 2014, Comerica enhanced the approach used to determine the standard reserve factors used in estimating the allowance for credit losses, which had the effect of capturing certain elements in the quantitative component of the reserve that had formerly been included in the qualitative assessment. The impact of the change was largely neutral to the total allowance for loan losses at June 30, 2014. However, because standard reserves are allocated to the segments at the loan level, while qualitative reserves are allocated at the portfolio level, the impact of the methodology change on the allowance of each segment reflected the characteristics of the individual loans within each segment's portfolio, causing segment reserves to increase or decrease accordingly.  The following table presents net income (loss) by business segment.  (dollar amounts in millions) 2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Business Bank                $ 195  82  %  $ 198  85  %  $ 207  85  % Retail Bank                  15     6      9      4      11     5 Wealth Management            28     12     26     11     24     10                              238    100 %  233    100 %  242    100 % Finance                      (91)          (92)          (98) Other (a)                    4             (2)           (1)  Total                    $ 151         $ 139         $ 143  (a) Includes items not directly associated with the three major business     segments or the Finance Division.    Business Bank (dollar amounts in millions)   2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)      $    376      $    371      $    372 Provision for credit losses    32            16            10 Noninterest income             95            87            94 Noninterest expenses           143           146           147 Net income                     195           198           207 Net credit-related charge-offs 7             11            11 Selected average balances: Assets                         37,467        35,896        36,014 Loans                          36,529        34,927        34,955 Deposits                       27,382        27,023        25,987      oAverage loans increased $1.6 billion, reflecting increases in almost every     line of business, led by Mortgage Banker Finance, National Dealer     Services, Energy, and Technology and Life Sciences.   oAverage deposits increased $359 million, primarily reflecting increases in     general Middle Market and Corporate Banking.   oNet interest income increased $5 million, primarily due to the benefit     provided by an increase in average loans and one additional day in the     quarter, partially offset by lower loan yields and a decrease in purchase     accounting accretion.   oThe provision for credit losses increased $16 million, primarily due to     the enhancements to the approach utilized to determine the allowance for     credit losses discussed above, as well as an increase in loan balances.   oNoninterest income increased $8 million, primarily due to increases in     commercial lending fees, warrant income and small increases in several     other categories.   oNoninterest expenses decreased $3 million, primarily due to a decrease in     litigation-related expenses.    Retail Bank (dollar amounts in millions)   2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)      $    149      $    146      $    154 Provision for credit losses    (4)           2             5 Noninterest income             41            41            46 Noninterest expenses           171           171           178 Net income                     15            9             11 Net credit-related charge-offs 4             4             4 Selected average balances: Assets                         6,051         6,052         5,962 Loans                          5,385         5,381         5,271 Deposits                       21,648        21,361        21,241      oAverage deposits increased $287 million, primarily reflecting an increase     in noninterest-bearing deposits.   oNet interest income increased $3 million, primarily due to an increase in     net funds transfer pricing (FTP) credits, largely due to the increase in     average deposits, and the impact of one additional day in the quarter.   oThe provision for credit losses decreased $6 million, primarily reflecting     a benefit from the enhancements to the approach utilized to determine the     allowance for credit losses discussed above and improvements in credit     quality.    Wealth Management (dollar amounts in millions)          2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)             $     46      $     46      $     46 Provision for credit losses           (9)           (8)           (3) Noninterest income                    67            64            65 Noninterest expenses                  79            78            77 Net income                            28            26            24 Net credit-related (recoveries)       (2)           (3)           2 charge-offs Selected average balances: Assets                                4,996         4,939         4,828 Loans                                 4,811         4,767         4,667 Deposits                              3,827         3,816         3,701      oAverage loans increased $44 million, primarily due to an increase in     Private Banking.   oNoninterest income increased $3 million, primarily reflecting small     increases in several categories.   oNoninterest expenses increased $1 million, as an increase in     litigation-related expenses was partially offset by a decrease in     allocated corporate overhead expenses.  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 June 30, 2014 and are presented on a fully taxable equivalent (FTE) basis.  The following table presents net income (loss) by market segment.  (dollar amounts in millions) 2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Michigan                     $ 80   34  %  $ 68   29  %  $ 77   32  % California                   63     26     63     27     65     27 Texas                        36     15     46     20     46     19 Other Markets                59     25     56     24     54     22                              238    100 %  233    100 %  242    100 % Finance & Other (a)          (87)          (94)          (99)  Total                    $ 151         $ 139         $ 143  (a) Includes items not directly associated with the geographic markets.      oAverage loans increased $9 million, $615 million and $602 million in     Michigan, California and Texas, respectively. The increases in average     loans in California and Texas were broad-based, with increases in nearly     all business lines. California was led by an increase in National Dealer     Services, while the increase in Texas was led by Energy.   oAverage deposits increased $52 million in Michigan, primarily due to an     increase in Retail Banking, partially offset by decreases in general     Middle Market and Corporate Banking. In California, average deposits     increased $588 million, primarily reflecting increases in general Middle     Market and Corporate Banking, partially offset by a decrease in Technology     and Life Sciences. The decrease in Texas of $151 million was primarily due     to a decrease in general Middle Market.   oNet interest income increased $4 million in California and $1 million in     Texas, and decreased $1 million in Michigan. The increases in California     and Texas primarily reflected the benefit from an increase in average     loans and one additional day in the quarter, partially offset by a decline     in loan yields. Texas was also impacted by a decrease in accretion on the     acquired loan portfolio.   oThe provision for credit losses increased $16 million in Texas and$3     million in California, and decreased $12 million in Michigan. The impact     of the enhancements to the approach utilized to determine the allowance     for credit losses, as previously discussed in the Business Segment     section, resulted in increased reserves in California, were largely     neutral to Texas and reduced reserves in Michigan. The increase in Texas     was primarily due to an increase in loan balances and risk rating     downgrades on two specific credits. California's increase was primarily     due to an increase in loan balances and increased reserves on two credits.     Credit quality in Texas and California continues to be very strong.     Improved credit quality and a reduction in loan balances contributed to     the decline in the Michigan reserve.   oNoninterest income increased $7 million and $5 million in Michigan and     California, respectively, and was stable in Texas. Warrant income     increased in California, and there were small increases in several other     noninterest income categories in both markets.   oNoninterest expenses increased $5 million in California, primarily due to     increases in litigation-related expenses and operational losses. In     Michigan and Texas, noninterest expenses declined $2 million and $1     million, respectively.    Michigan Market (dollar amounts in millions)          2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)             $    182      $    183      $    187 Provision for credit losses           (9)           3             (4) Noninterest income                    94            87            88 Noninterest expenses                  159           161           161 Net income                            80            68            77 Net credit-related charge-offs        10            —             4 (recoveries) Selected average balances: Assets                                13,851        13,819        14,022 Loans                                 13,482        13,473        13,598 Deposits                              20,694        20,642        20,159    California Market (dollar amounts in millions)          2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)             $    176      $    172      $    173 Provision for credit losses           14            11            7 Noninterest income                    39            34            36 Noninterest expenses                  101           96            100 Net income                            63            63            65 Net credit-related charge-offs        5             10            12 (recoveries) Selected average balances: Assets                                15,721        15,133        14,155 Loans                                 15,439        14,824        13,912 Deposits                              15,370        14,782        14,671    Texas Market (dollar amounts in millions)   2nd Qtr '14   1st Qtr '14   2nd Qtr '13 Net interest income (FTE)      $    137      $    136      $    131 Provision for credit losses    22            6             6 Noninterest income             31            31            34 Noninterest expenses           89            90            89 Net income                     36            46            46 Net credit-related charge-offs 2             6             (3) Selected average balances: Assets                         11,661        11,070        10,886 Loans                          10,966        10,364        10,179 Deposits                       10,724        10,875        10,187    Conference Call and Webcast Comerica will host a conference call to review second quarter 2014 financial results at 7 a.m. CT Tuesday, July 15, 2014. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 61649842). 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," "projects," "models" 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 changes in interest rates; 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; the effects of more stringent capital or liquidity requirements; declines or other changes in the businesses or industries of Comerica's customers; operational difficulties, failure of technology infrastructure or information security incidents; the implementation of Comerica's strategies and business initiatives; Comerica's ability to utilize technology to efficiently and effectively develop, market and deliver new products and services; 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; any future strategic acquisitions or divestitures; 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 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 12 of Comerica's Annual Report on Form 10-K for the year ended December 31, 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                Six Months Ended                        June 30,   March 31,  June 30,    June 30, (in millions, except   2014       2014       2013        2014       2013 per share data) PER COMMON SHARE AND COMMON STOCK DATA Diluted net income     $ 0.80     $ 0.73     $ 0.76      $ 1.54     $ 1.46 Cash dividends         0.20       0.19       0.17        0.39       0.34 declared Average diluted shares 186,108    186,701    186,998     186,402    187,219 (in thousands) KEY RATIOS Return on average common shareholders'   8.27     % 7.68     % 8.23     %  7.97     % 7.95     % equity Return on average      0.93       0.86       0.90        0.90       0.87 assets Tier 1 common capital  10.49      10.58      10.43 ratio (a) (b) Tier 1 risk-based      10.49      10.58      10.43 capital ratio (b) Total risk-based       12.50      13.00      13.29 capital ratio (b) Leverage ratio (b)     10.93      10.85      10.81 Tangible common equity 10.39      10.20      10.04 ratio (a) AVERAGE BALANCES Commercial loans       $ 29,890   $ 28,362   $ 28,393    $ 29,130   $ 28,225 Real estate            1,913      1,827      1,453       1,871      1,384 construction loans Commercial mortgage    8,749      8,770      9,192       8,759      9,295 loans Lease financing        850        848        855         849        856 International loans    1,328      1,301      1,262       1,315      1,272 Residential mortgage   1,773      1,724      1,602       1,749      1,579 loans Consumer loans         2,222      2,243      2,136       2,232      2,145 Total loans            46,725     45,075     44,893      45,905     44,756 Earning assets         60,148     59,916     58,928      60,033     58,769 Total assets           64,879     64,708     63,706      64,794     63,733 Noninterest-bearing    24,011     23,236     22,076      23,626     21,793 deposits Interest-bearing       29,373     29,534     29,372      29,453     29,302 deposits Total deposits         53,384     52,770     51,448      53,079     51,095 Common shareholders'   7,331      7,229      6,979       7,280      6,966 equity NET INTEREST INCOME (fully taxable equivalent basis) Net interest income    $ 417      $ 411      $ 415       $ 828      $ 831 Net interest margin    2.78     % 2.77     % 2.83     %  2.78     % 2.86     % CREDIT QUALITY Total nonperforming    $ 360      $ 352      $ 500 assets (c) Loans past due 90 days or more and still      7          10         20 accruing Net loan charge-offs   9          12         17          $ 21       $ 41 Allowance for loan     591        594        613 losses Allowance for credit losses on              42         37         36 lending-related commitments Total allowance for    633        631        649 credit losses Allowance for loan losses as a percentage 1.23     % 1.28     % 1.35     % of total loans Net loan charge-offs as a percentage of     0.08       0.10       0.15        0.09     % 0.18     % average total loans (d) Nonperforming assets as a percentage of total loans and        0.75       0.76       1.10 foreclosed property (c) Allowance for loan losses as a percentage 170        176        130 of total nonperforming loans  (a) See Reconciliation of Non-GAAP Financial Measures. (b) June 30, 2014 ratios are estimated. (c) Excludes loans acquired with credit-impairment. (d) Lending-related commitment charge-offs were zero in all     periods presented.      CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries                               June 30,    March 31,   December 31, June 30, (in millions, except share    2014        2014        2013         2013 data)                               (unaudited) (unaudited)              (unaudited) ASSETS Cash and due from banks       $  1,226    $  1,186    $  1,140     $  1,016 Interest-bearing deposits     2,668       4,434       5,311        2,909 with banks Other short-term investments  109         105         112          119 Investment securities         9,534       9,487       9,307        9,631 available-for-sale Commercial loans              30,986      29,774      28,815       29,186 Real estate construction      1,939       1,847       1,762        1,479 loans Commercial mortgage loans     8,747       8,801       8,787        9,007 Lease financing               822         849         845          843 International loans           1,352       1,250       1,327        1,209 Residential mortgage loans    1,775       1,751       1,697        1,611 Consumer loans                2,261       2,217       2,237        2,124 Total loans                   47,882      46,489      45,470       45,459 Less allowance for loan       (591)       (594)       (598)        (613) losses Net loans                     47,291      45,895      44,872       44,846 Premises and equipment        562         583         594          604 Accrued income and other      3,935       3,991       3,888        3,819 assets Total assets                  $  65,325   $  65,681   $  65,224    $  62,944 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits  $  24,774   $  23,955   $  23,875    $  21,870 Money market and interest-bearing checking     22,555      22,485      22,332       21,677 deposits Savings deposits              1,731       1,742       1,673        1,677 Customer certificates of      4,962       5,099       5,063        5,594 deposit Foreign office time deposits  148         469         349          437 Total interest-bearing        29,396      29,795      29,417       29,385 deposits Total deposits                54,170      53,750      53,292       51,255 Short-term borrowings         176         160         253          131 Accrued expenses and other    990         954         986          1,049 liabilities Medium- and long-term debt    2,620       3,534       3,543        3,601 Total liabilities             57,956      58,398      58,074       56,036 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares   1,141       1,141       1,141        1,141 Capital surplus               2,175       2,182       2,179        2,160 Accumulated other             (304)       (325)       (391)        (538) comprehensive loss Retained earnings             6,520       6,414       6,318        6,124 Less cost of common stock in treasury - 47,194,492 shares at 6/30/14; 46,492,524 shares (2,163)     (2,129)     (2,097)      (1,979) at 3/31/14; 45,860,786 shares at 12/31/13 and 42,999,083 shares at 6/30/13 Total shareholders' equity    7,369       7,283       7,150        6,908 Total liabilities and         $  65,325   $  65,681   $  65,224    $  62,944 shareholders' equity      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Comerica Incorporated and Subsidiaries                                           Three Months Ended  Six Months Ended                                           June 30,            June 30, (in millions, except per share data)      2014       2013     2014     2013 INTEREST INCOME Interest and fees on loans                $  385     $ 388    $  761   $ 778 Interest on investment securities         53         52       108      105 Interest on short-term investments        3          3        7        6 Total interest income                     441        443      876      889 INTEREST EXPENSE Interest on deposits                      11         15       22       30 Interest on medium- and long-term debt    14         14       28       29 Total interest expense                    25         29       50       59 Net interest income                       416        414      826      830 Provision for credit losses               11         13       20       29 Net interest income after provision for   405        401      806      801 credit losses NONINTEREST INCOME Service charges on deposit accounts       54         53       108      108 Fiduciary income                          45         44       89       87 Commercial lending fees                   23         22       43       43 Card fees                                 19         18       38       35 Letter of credit fees                     15         16       29       32 Bank-owned life insurance                 11         10       20       19 Foreign exchange income                   12         9        21       18 Brokerage fees                            4          4        9        9 Net securities (losses) gains             —          (2)      1        (2) Other noninterest income                  37         48       70       86 Total noninterest income                  220        222      428      435 NONINTEREST EXPENSES Salaries and employee benefits expense    240        245      487      496 Net occupancy expense                     39         39       79       78 Equipment expense                         15         15       29       30 Outside processing fee expense            30         30       58       58 Software expense                          25         22       47       44 Litigation-related expense                3          1        6        4 FDIC insurance expense                    8          8        16       17 Advertising expense                       5          6        11       12 Other noninterest expenses                39         50       77       93 Total noninterest expenses                404        416      810      832 Income before income taxes                221        207      424      404 Provision for income taxes                70         64       134      127 NET INCOME                                151        143      290      277 Less income allocated to participating    2          2        4        4 securities Net income attributable to common shares  $  149     $ 141    $  286   $ 273 Earnings per common share: Basic                                     $  0.83    $ 0.77   $  1.59  $ 1.48 Diluted                                   0.80       0.76     1.54     1.46 Comprehensive income                      172        15       377      152 Cash dividends declared on common stock   36         32       71       64 Cash dividends declared per common share  0.20       0.17     0.39     0.34      CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Comerica Incorporated and Subsidiaries                    Second  First   Fourth  Third   Second   Second Quarter 2014 Compared To:                    Quarter Quarter Quarter Quarter Quarter  First Quarter    Second Quarter                                                             2014             2013 (in millions, except per share   2014    2014    2013    2013    2013     Amount  Percent  Amount  Percent data) INTEREST INCOME Interest and fees  $ 385   $ 376   $ 397   $ 381   $ 388    $ 9     2     %  $ (3)   (1)   % on loans Interest on investment         53      55      55      54      52       (2)     (2)      1       3 securities Interest on short-term         3       4       4       4       3        (1)     (27)     —       — investments Total interest     441     435     456     439     443      6       2        (2)     — income INTEREST EXPENSE Interest on        11      11      12      13      15       —       —        (4)     (23) deposits Interest on medium- and        14      14      14      14      14       —       —        —       — long-term debt Total interest     25      25      26      27      29       —       —        (4)     (16) expense Net interest       416     410     430     412     414      6       2        2       1 income Provision for      11      9       9       8       13       2       26       (2)     (15) credit losses Net interest income after provision          405     401     421     404     401      4       1        4       1  for credit losses NONINTEREST INCOME Service charges on 54      54      53      53      53       —       —        1       2 deposit accounts Fiduciary income   45      44      43      41      44       1       2        1       4 Commercial lending 23      20      28      28      22       3       16       1       3 fees Card fees          19      19      19      20      18       —       —        1       3 Letter of credit   15      14      15      17      16       1       2        (1)     (11) fees Bank-owned life    11      9       9       12      10       2       13       1       6 insurance Foreign exchange   12      9       9       9       9        3       31       3       29 income Brokerage fees     4       5       4       4       4        (1)     (10)     —       — Net securities     —       1       —       1       (2)      (1)     N/M      2       N/M gains (losses) Other noninterest  37      33      39      43      48       4       16       (11)    (19) income Total noninterest  220     208     219     228     222      12      6        (2)     (1) income NONINTEREST EXPENSES Salaries and       240     247     258     255     245      (7)     (3)      (5)     (2) benefits expense Net occupancy      39      40      41      41      39       (1)     (3)      —       — expense Equipment expense  15      14      15      15      15       1       3        —       — Outside processing 30      28      30      31      30       2       6        —       — fee expense Software expense   25      22      24      22      22       3       11       3       12 Litigation-related 3       3       52      (4)     1        —       —        2       N/M expense FDIC insurance     8       8       7       9       8        —       —        —       — expense Advertising        5       6       3       6       6        (1)     —        (1)     (9) expense Other noninterest  39      38      43      42      50       1       5        (11)    (20) expenses Total noninterest  404     406     473     417     416      (2)     —        (12)    (3) expenses Income before      221     203     167     215     207      18      9        14      7 income taxes Provision for      70      64      50      68      64       6       10       6       10 income taxes NET INCOME         151     139     117     147     143      12      9        8       5 Less income allocated to       2       2       2       2       2        —       —        —       — participating securities Net income attributable to    $ 149   $ 137   $ 115   $ 145   $ 141    $ 12    9     %  $ 8     6     % common shares Earnings per common share: Basic              $ 0.83  $ 0.76  $ 0.64  $ 0.80  $ 0.77   $ 0.07  9     %  $ 0.06  8     % Diluted            0.80    0.73    0.62    0.78    0.76     0.07    10       0.04    5 Comprehensive      172     205     267     144     15       (33)    (16)     157     N/M income Cash dividends declared on common 36      35      31      31      32       1       5        4       15 stock Cash dividends declared per       0.20    0.19    0.17    0.17    0.17     0.01    5        0.03    18 common share  N/M - Not Meaningful      ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited) Comerica Incorporated and Subsidiaries                                       2014             2013 (in millions)                         2nd Qtr 1st Qtr  4th Qtr 3rd Qtr 2nd Qtr Balance at beginning of period        $ 594   $ 598    $ 604   $ 613   $ 617 Loan charge-offs: Commercial                            19      19       31      20      19 Real estate construction              —       —        —       1       2 Commercial mortgage                   5       8        5       9       9 Residential mortgage                  —       —        1       1       1 Consumer                              4       3        4       8       4 Total loan charge-offs                28      30       41      39      35 Recoveries on loans previously charged-off: Commercial                            11      11       17      8       11 Real estate construction              1       —        3       2       1 Commercial mortgage                   3       3        5       7       3 Lease financing                       —       2        —       1       — Residential mortgage                  3       —        1       1       1 Consumer                              1       2        2       1       2 Total recoveries                      19      18       28      20      18 Net loan charge-offs                  9       12       13      19      17 Provision for loan losses             6       8        7       10      13 Balance at end of period              $ 591   $ 594    $ 598   $ 604   $ 613 Allowance for loan losses as a        1.23  % 1.28  %  1.32  % 1.37  % 1.35  % percentage of total loans Net loan charge-offs as a percentage  0.08    0.10     0.12    0.18    0.15 of average total loans      ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited) Comerica Incorporated and Subsidiaries                                       2014             2013 (in millions)                         2nd Qtr 1st Qtr  4th Qtr 3rd Qtr 2nd Qtr Balance at beginning of period        $  37   $  36    $  34   $  36   $  36 Add: Provision for credit losses on   5       1        2       (2)     — lending-related commitments Balance at end of period              $  42   $  37    $  36   $  34   $  36 Unfunded lending-related commitments  $  —    $  —     $  1    $  2    $  1 sold      NONPERFORMING ASSETS (unaudited) Comerica Incorporated and Subsidiaries                       2014                           2013 (in millions)         2nd Qtr       1st Qtr          4th Qtr   3rd Qtr 2nd Qtr SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS Nonaccrual loans: Business loans:  Commercial         $   72        $   54           $  81     $ 107   $ 102  Real estate        19            19               21        25      28 construction  Commercial         156           162              156       206     226 mortgage  International      —             —                4         —       —  Total nonaccrual   247           235              262       338     356 business loans Retail loans:  Residential        45            48               53        63      62 mortgage  Consumer:  Home equity        32            32               33        34      28  Other consumer     2             2                2         2       3  Total consumer     34            34               35        36      31  Total nonaccrual   79            82               88        99      93 retail loans Total nonaccrual      326           317              350       437     449 loans Reduced-rate loans    21            21               24        22      22 Total nonperforming   347           338              374       459     471 loans (a) Foreclosed property   13            14               9         19      29 Total nonperforming   $   360       $   352          $  383    $ 478   $ 500 assets (a) Nonperforming loans as a percentage of    0.73      %   0.73      %      0.82    % 1.04  % 1.04  % total loans Nonperforming assets as a percentage of total loans           0.75          0.76             0.84      1.08    1.10  and foreclosed property Allowance for loan losses as a percentage of total   170           176              160       131     130  nonperforming loans Loans past due 90 days or more and      $   7         $   10           $  16     $ 25    $ 20 still accruing ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at   $   317       $   350          $  437    $ 449   $ 494 beginning of period Loans transferred to  53            19               23        50      37 nonaccrual (b) Nonaccrual business loan gross            (24)          (27)             (33)      (25)    (25) charge-offs (c) Nonaccrual business   (6)           (3)              (14)      (17)    (9) loans sold (d) Payments/Other (e)    (14)          (22)             (63)      (20)    (48) Nonaccrual loans at   $   326       $   317          $  350    $ 437   $ 449 end of period (a) Excludes loans acquired with credit impairment. (b) Based on an analysis of nonaccrual loans with book balances greater than $2 million. (c) Analysis of gross loan charge-offs: Nonaccrual business   $   24        $   27           $  33     $ 25    $ 25 loans Performing criticized —             —                3         5       5 loans Consumer and residential mortgage  4             3                5         9       5 loans Total gross loan      $   28        $   30           $  41     $ 39    $ 35 charge-offs (d) Analysis of loans sold: Nonaccrual business   $   6         $   3            $  14     $ 17    $ 9 loans Performing criticized 8             6                22        31      40 loans Total criticized      $   14        $   9            $  36     $ 48    $ 49 loans sold (e) 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                         Six Months Ended                         June 30, 2014               June 30, 2013                         Average            Average  Average            Average (dollar amounts in      Balance   Interest Rate     Balance   Interest Rate millions) Commercial loans        $ 29,130  $  453   3.13  %  $ 28,225  $  462   3.30  % Real estate             1,871     32       3.42     1,384     28       4.10 construction loans Commercial mortgage     8,759     170      3.92     9,295     183      3.97 loans Lease financing         849       16       3.66     856       14       3.23 International loans     1,315     24       3.66     1,272     23       3.72 Residential mortgage    1,749     33       3.84     1,579     33       4.21 loans Consumer loans          2,232     35       3.19     2,145     36       3.33 Total loans (a)         45,905    763      3.35     44,756    779      3.51 Mortgage-backed securities              8,954     107      2.39     9,532     104      2.18 available-for-sale Other investment securities              369       1        0.44     374       1        0.55 available-for-sale Total investment securities              9,323     108      2.31     9,906     105      2.16 available-for-sale Interest-bearing        4,695     7        0.26     3,990     5        0.26 deposits with banks (b) Other short-term        110       —        0.63     117       1        1.67 investments Total earning assets    60,033    878      2.94     58,769    890      3.06 Cash and due from banks 917                         975 Allowance for loan      (602)                       (629) losses Accrued income and      4,446                       4,618 other assets Total assets            $ 64,794                    $ 63,733 Money market and interest-bearing        $ 22,279  12       0.11     $ 21,442  15       0.14 checking deposits Savings deposits        1,721     —        0.03     1,640     —        0.03 Customer certificates   5,075     9        0.36     5,715     13       0.45 of deposit Foreign office time     378       1        0.52     505       2        0.57 deposits Total interest-bearing  29,453    22       0.15     29,302    30       0.20 deposits Short-term borrowings   198       —        0.03     158       —        0.09 Medium- and long-term   3,270     28       1.64     4,374     29       1.37 debt Total interest-bearing  32,921    50       0.30     33,834    59       0.35 sources Noninterest-bearing     23,626                      21,793 deposits Accrued expenses and    967                         1,140 other liabilities Total shareholders'     7,280                       6,966 equity Total liabilities and   $ 64,794                    $ 63,733 shareholders' equity Net interest income/rate spread                $  828   2.64               $  831   2.71 (FTE) FTE adjustment                    $  2                        $  1 Impact of net noninterest-bearing                        0.14                        0.15 sources of funds Net interest margin (as a percentage of average                    2.78  %                     2.86  % earning assets) (FTE) (a) (b)      Accretion of the purchase discount on the acquired loan portfolio of $22 (a) million and $18 million in the six months ended June 30, 2014 and 2013,     respectively, increased the net interest margin by 7 basis points and 6     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 20 basis points     and 18 basis points in the six months ended June 30, 2014 and 2013,     respectively.      ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited) Comerica Incorporated and Subsidiaries                     Three Months Ended                     June 30, 2014               March 31, 2014              June 30, 2013                     Average            Average  Average            Average  Average            Average (dollar amounts in  Balance   Interest Rate     Balance   Interest Rate     Balance   Interest Rate millions) Commercial loans    $ 29,890  $  231   3.10  %  $ 28,362  $  221   3.17  %  $ 28,393  $  233   3.29  % Real estate         1,913     16       3.44     1,827     15       3.40     1,453     15       4.04 construction loans Commercial mortgage 8,749     85       3.88     8,770     86       3.97     9,192     88       3.86 loans Lease financing     850       7        3.26     848       9        4.07     855       7        3.22 International loans 1,328     12       3.64     1,301     12       3.68     1,262     12       3.81 Residential         1,773     17       3.82     1,724     17       3.86     1,602     16       4.04 mortgage loans Consumer loans      2,222     18       3.22     2,243     17       3.16     2,136     18       3.30 Total loans (a)     46,725    386      3.31     45,075    377      3.39     44,893    389      3.47 Mortgage-backed securities          8,996     53       2.35     8,911     55       2.42     9,415     51       2.22 available-for-sale Other investment securities          368       —        0.46     371       —        0.43     378       1        0.52 available-for-sale Total investment securities          9,364     53       2.28     9,282     55       2.34     9,793     52       2.15 available-for-sale Interest-bearing deposits with banks 3,949     3        0.25     5,448     4        0.26     4,125     3        0.26 (b) Other short-term    110       —        0.61     111       —        0.66     117       —        1.05 investments Total earning       60,148    442      2.95     59,916    436      2.94     58,928    444      3.02 assets Cash and due from   921                         913                         972 banks Allowance for loan  (602)                       (603)                       (625) losses Accrued income and  4,412                       4,482                       4,431 other assets Total assets        $ 64,879                    $ 64,708                    $ 63,706 Money market and interest-bearing    $ 22,296  6        0.10     $ 22,261  6        0.11     $ 21,544  8        0.13 checking deposits Savings deposits    1,742     —        0.03     1,700     —        0.03     1,658     —        0.03 Customer certificates of     5,041     5        0.36     5,109     5        0.36     5,685     6        0.43 deposit Foreign office time 294       —        0.68     464       —        0.42     485       1        0.60 deposits Total interest-bearing    29,373    11       0.15     29,534    11       0.15     29,372    15       0.19 deposits Short-term          210       —        0.03     185       —        0.03     193       —        0.07 borrowings Medium- and         2,999     14       1.77     3,545     14       1.53     4,044     14       1.43 long-term debt Total interest-bearing    32,582    25       0.30     33,264    25       0.30     33,609    29       0.34 sources Noninterest-bearing 24,011                      23,236                      22,076 deposits Accrued expenses and other           955                         979                         1,042 liabilities Total shareholders' 7,331                       7,229                       6,979 equity Total liabilities and shareholders'   $ 64,879                    $ 64,708                    $ 63,706 equity Net interest income/rate spread            $  417   2.65               $  411   2.64               $  415   2.68 (FTE) FTE adjustment                $  1                        $  1                        $  1 Impact of net noninterest-bearing                    0.13                        0.13                        0.15 sources of funds Net interest margin (as a percentage of average earning                        2.78  %                     2.77  %                     2.83  % assets) (FTE) (a) (b)      Accretion of the purchase discount on the acquired loan portfolio of $10     million, $12 million and $7 million in the second and first quarters of (a) 2014 and the second quarter of 2013, respectively, increased the net     interest margin by 7 basis points, 8 basis points and 5 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 17 basis points,     24 basis points and 18 basis points in the second and first quarters of     2014 and the second quarter of 2013, respectively.      CONSOLIDATED STATISTICAL DATA (unaudited) Comerica Incorporated and Subsidiaries                    June 30,   March 31,  December 31, September 30, June 30, (in millions, except per share   2014       2014       2013         2013          2013 data) Commercial loans: Floor plan         $ 3,576    $ 3,437    $  3,504     $  2,869      $ 3,241 Other              27,410     26,337     25,311       25,028        25,945 Total commercial   30,986     29,774     28,815       27,897        29,186 loans Real estate        1,939      1,847      1,762        1,552         1,479 construction loans Commercial         8,747      8,801      8,787        8,785         9,007 mortgage loans Lease financing    822        849        845          829           843 International      1,352      1,250      1,327        1,286         1,209 loans Residential        1,775      1,751      1,697        1,650         1,611 mortgage loans Consumer loans: Home equity        1,574      1,533      1,517        1,501         1,474 Other consumer     687        684        720          651           650 Total consumer     2,261      2,217      2,237        2,152         2,124 loans Total loans        $ 47,882   $ 46,489   $  45,470    $  44,151     $ 45,459 Goodwill           $ 635      $ 635      $  635       $  635        $ 635 Core deposit       14         15         16           17            18 intangible Loan servicing     1          1          1            1             2 rights Tier 1 common capital ratio (a)  10.49    % 10.58    % 10.64      % 10.72      %  10.43    % (b) Tier 1 risk-based  10.49      10.58      10.64        10.72         10.43 capital ratio (a) Total risk-based   12.50      13.00      13.10        13.42         13.29 capital ratio (a) Leverage ratio (a) 10.93      10.85      10.77        10.88         10.81 Tangible common    10.39      10.20      10.07        9.87          10.04 equity ratio (b) Common shareholders'      $ 40.72    $ 40.09    $  39.22     $  37.93      $ 37.31 equity per share of common stock Tangible common equity per share   37.12      36.50      35.64        34.37         33.77 of common stock (b) Market value per share for the quarter: High               52.60      53.50      48.69        43.49         40.44 Low                45.34      43.96      38.64        38.56         33.55 Close              50.16      51.80      47.54        39.31         39.83 Quarterly ratios: Return on average common             8.27     % 7.68     % 6.66       % 8.50       %  8.23     % shareholders' equity Return on average  0.93       0.86       0.72         0.92          0.90 assets Efficiency ratio   63.35      65.79      72.81        65.18         65.03 (c) Number of banking  481        483        483          484           484 centers Number of employees - full   8,901      8,907      8,948        8,918         8,929 time equivalent  (a) June 30, 2014 ratios are estimated. (b) See Reconciliation of Non-GAAP Financial Measures. (c) Noninterest expenses as a percentage of the sum of net interest income     (FTE) and noninterest income excluding net securities gains (losses).      PARENT COMPANY ONLY BALANCE SHEETS (unaudited) Comerica Incorporated                                                 June 30, December 31, June 30, (in millions, except share data)                2014     2013         2013 ASSETS Cash and due from subsidiary bank               $ 5      $   31       $ 3 Short-term investments with subsidiary bank     796      482          473 Other short-term investments                    96       96           92 Investment in subsidiaries, principally banks   7,369    7,171        6,976 Premises and equipment                          2        4            4 Other assets                                    219      139          137 Total assets                                  $ 8,487  $   7,923    $ 7,685 LIABILITIES AND SHAREHOLDERS' EQUITY Medium- and long-term debt                      $ 960    $   617      $ 622 Other liabilities                               158      156          155  Total liabilities                             1,118    773          777 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 228,164,824 shares                     1,141    1,141        1,141 Capital surplus                                 2,175    2,179        2,160 Accumulated other comprehensive loss            (304)    (391)        (538) Retained earnings                               6,520    6,318        6,124 Less cost of common stock in treasury - 47,194,492 shares at 6/30/14; 45,860,786 shares (2,163)  (2,097)      (1,979) at 12/31/13 and 42,999,083 shares at 6/30/13  Total shareholders' equity                    7,369    7,150        6,908  Total liabilities and shareholders' equity    $ 8,487  $   7,923    $ 7,685      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,  188.3       $ 1,141  $ 2,162  $   (413)     $ 5,928  $ (1,879)  $   6,939 2012 Net income    —           —        —        —             277      —          277 Other comprehensive —           —        —        (125)         —        —          (125) loss, net of tax Cash dividends declared on   —           —        —        —             (64)     —          (64) common stock ($0.34 per share) Purchase of   (4.1)       —        —        —             —        (146)      (146) common stock Net issuance of common stock under   1.0         —        (19)     —             (17)     45         9 employee stock plans Share-based   —           —        18       —             —        —          18 compensation Other         —           —        (1)      —             —        1          — BALANCE AT    185.2       $ 1,141  $ 2,160  $   (538)     $ 6,124  $ (1,979)  $   6,908 JUNE 30, 2013 BALANCE AT DECEMBER 31,  182.3       $ 1,141  $ 2,179  $   (391)     $ 6,318  $ (2,097)  $   7,150 2013 Net income    —           —        —        —             290      —          290 Other comprehensive —           —        —        87            —        —          87 income, net of tax Cash dividends declared on   —           —        —        —             (71)     —          (71) common stock ($0.39 per share) Purchase of   (3.0)       —        —        —             —        (141)      (141) common stock Net issuance of common stock under   1.6         —        (25)     —             (17)     74         32 employee stock plans Share-based   —           —        22       —             —        —          22 compensation Other         —           —        (1)      —             —        1          — BALANCE AT    180.9       $ 1,141  $ 2,175  $   (304)     $ 6,520  $ (2,163)  $   7,369 JUNE 30, 2014      BUSINESS SEGMENT FINANCIAL RESULTS (unaudited) Comerica Incorporated and Subsidiaries (dollar amounts in     Business    Retail     Wealth millions) Three Months Ended June 30, Bank        Bank       Management  Finance    Other     Total 2014 Earnings summary: Net interest income         $ 376       $ 149      $  46       $ (160)    $ 6       $ 417 (expense) (FTE) Provision for  32          (4)        (9)         —          (8)       11 credit losses Noninterest    95          41         67          15         2         220 income Noninterest    143         171        79          2          9         404 expenses Provision (benefit) for  101         8          15          (56)       3         71 income taxes (FTE) Net income     $ 195       $ 15       $  28       $ (91)     $ 4       $ 151 (loss) Net credit-related $ 7         $ 4        $  (2)      $ —        $ —       $ 9 charge-offs (recoveries) Selected average balances: Assets         $ 37,467    $ 6,051    $  4,996    $ 11,056   $ 5,309   $ 64,879 Loans          36,529      5,385      4,811       —          —         46,725 Deposits       27,382      21,648     3,827       258        269       53,384 Statistical data: Return on average assets 2.09     %  0.27    %  2.24     %  N/M        N/M       0.93     % (a) Efficiency     30.43       89.99      69.66       N/M        N/M       63.35 ratio (b)                Business    Retail     Wealth Three Months Ended March    Bank        Bank       Management  Finance    Other     Total 31, 2014 Earnings summary: Net interest income         $ 371       $ 146      $  46       $ (158)    $ 6       $ 411 (expense) (FTE) Provision for  16          2          (8)         —          (1)       9 credit losses Noninterest    87          41         64          14         2         208 income Noninterest    146         171        78          3          8         406 expenses Provision (benefit) for  98          5          14          (55)       3         65 income taxes (FTE) Net income     $ 198       $ 9        $  26       $ (92)     $ (2)     $ 139 (loss) Net credit-related $ 11        $ 4        $  (3)      $ —        $ —       $ 12 charge-offs Selected average balances: Assets         $ 35,896    $ 6,052    $  4,939    $ 11,129   $ 6,692   $ 64,708 Loans          34,927      5,381      4,767       —          —         45,075 Deposits       27,023      21,361     3,816       353        217       52,770 Statistical data: Return on average assets 2.20     %  0.16    %  2.15     %  N/M        N/M       0.86     % (a) Efficiency     31.96       91.44      71.31       N/M        N/M       65.79 ratio (b)                Business    Retail     Wealth Three Months Ended June 30, Bank        Bank       Management  Finance    Other     Total 2013 Earnings summary: Net interest income         $ 372       $ 154      $  46       $ (165)    8         $ 415 (expense) (FTE) Provision for  10          5          (3)         —          1         13 credit losses Noninterest    94          46         65          15         2         222 income Noninterest    147         178        77          3          11        416 expenses Provision (benefit) for  102         6          13          (55)       (1)       65 income taxes (FTE) Net income     $ 207       $ 11       $  24       $ (98)     $ (1)     $ 143 (loss) Net credit-related $ 11        $ 4        $  2        $ —        $ —       $ 17 charge-offs Selected average balances: Assets         $ 36,014    $ 5,962    $  4,828    $ 11,514   $ 5,388   $ 63,706 Loans          34,955      5,271      4,667       —          —         44,893 Deposits       25,987      21,241     3,701       283        236       51,448 Statistical data: Return on average assets 2.30     %  0.20    %  2.00     %  N/M        N/M       0.90     % (a) Efficiency     31.48       87.98      69.86       N/M        N/M       65.03 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 June 30, Michigan    California  Texas       Markets    & Other    Total 2014 Earnings summary: Net interest income         $ 182       $ 176       $ 137       $ 76       $ (154)    $ 417 (expense) (FTE) Provision for  (9)         14          22          (8)        (8)        11 credit losses Noninterest    94          39          31          39         17         220 income Noninterest    159         101         89          44         11         404 expenses Provision (benefit) for  46          37          21          20         (53)       71 income taxes (FTE) Net income     $ 80        $ 63        $ 36        $ 59       $ (87)     $ 151 (loss) Net credit-related $ 10        $ 5         $ 2         $ (8)      $ —        $ 9 charge-offs (recoveries) Selected average balances: Assets         $ 13,851    $ 15,721    $ 11,661    $ 7,281    $ 16,365   $ 64,879 Loans          13,482      15,439      10,966      6,838      —          46,725 Deposits       20,694      15,370      10,724      6,069      527        53,384 Statistical data: Return on average assets 1.48     %  1.54     %  1.23     %  3.23    %  NM         0.93     % (a) Efficiency     57.70       46.78       52.61       38.94      NM         63.35 ratio (b)                                                    Other      Finance Three Months Ended March    Michigan    California  Texas       Markets    & Other    Total 31, 2014 Earnings summary: Net interest income         $ 183       $ 172       $ 136       $ 72       $ (152)    $ 411 (expense) (FTE) Provision for  3           11          6           (10)       (1)        9 credit losses Noninterest    87          34          31          40         16         208 income Noninterest    161         96          90          48         11         406 expenses Provision (benefit) for  38          36          25          18         (52)       65 income taxes (FTE) Net income     $ 68        $ 63        $ 46        $ 56       $ (94)     $ 139 (loss) Net credit-related $ —         $ 10        $ 6         $ (4)      $ —        $ 12 charge-offs (recoveries) Selected average balances: Assets         $ 13,819    $ 15,133    $ 11,070    $ 6,865    $ 17,821   $ 64,708 Loans          13,473      14,824      10,364      6,414      —          45,075 Deposits       20,642      14,782      10,875      5,901      570        52,770 Statistical data: Return on average assets 1.26     %  1.59     %  1.50     %  3.28    %  N/M        0.86     % (a) Efficiency     59.71       46.72       53.83       43.39      N/M        65.79 ratio (b)                                                    Other      Finance Three Months Ended June 30, Michigan    California  Texas       Markets    & Other    Total 2013 Earnings summary: Net interest income         $ 187       $ 173       $ 131       $ 81       $ (157)    $ 415 (expense) (FTE) Provision for  (4)         7           6           3          1          13 credit losses Noninterest    88          36          34          47         17         222 income Noninterest    161         100         89          52         14         416 expenses Provision (benefit) for  41          37          24          19         (56)       65 income taxes (FTE) Net income     $ 77        $ 65        $ 46        $ 54       $ (99)     $ 143 (loss) Net credit-related $ 4         $ 12        $ (3)       $ 4        $ —        $ 17 charge-offs Selected average balances: Assets         $ 14,022    $ 14,155    $ 10,886    $ 7,741    $ 16,902   $ 63,706 Loans          13,598      13,912      10,179      7,204      —          44,893 Deposits       20,159      14,671      10,187      5,912      519        51,448 Statistical data: Return on average assets 1.47     %  1.65     %  1.62     %  2.79    %  N/M        0.90     % (a) Efficiency     58.17       47.73       53.39       41.16      N/M        65.03 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                    June 30,   March 31,  December 31, September 30, June 30, (dollar amounts in 2014       2014       2013         2013          2013 millions) Tier 1 Common Capital Ratio: Tier 1 and Tier 1 common capital (a) $ 7,027    $ 6,962    $  6,895     $  6,862      $ 6,800 (b) Risk-weighted      67,009     65,788     64,825       64,027        65,220 assets (a) (b) Tier 1 and Tier 1 common risk-based  10.49    % 10.58    % 10.64      % 10.72      %  10.43    % capital ratio (b) Basel III Common Equity Tier 1 Capital Ratio: Tier 1 common      $ 7,027    $ 6,962    $  6,895     $  6,862      $ 6,800 capital (b) Basel III          (2)        (2)        (6)          (4)           — adjustments (c) Basel III common equity Tier 1      7,025      6,960      6,889        6,858         6,800 capital (c) Risk-weighted      $ 67,009   $ 65,788   $  64,825    $  64,027     $ 65,220 assets (a) (b) Basel III          1,599      1,590      1,754        1,726         2,091 adjustments (c) Basel III risk-weighted      $ 68,608   $ 67,378   $  66,579    $  65,753     $ 67,311 assets (c) Tier 1 common      10.5     % 10.6     % 10.6       % 10.7       %  10.4     % capital ratio (b) Basel III common equity Tier 1      10.2       10.3       10.3         10.4          10.1 capital ratio (c) Tangible Common Equity Ratio: Common shareholders'      $ 7,369    $ 7,283    $  7,150     $  6,966      $ 6,908 equity Less: Goodwill           635        635        635          635           635 Other intangible   15         16         17           18            20 assets Tangible common    $ 6,719    $ 6,632    $  6,498     $  6,313      $ 6,253 equity Total assets       $ 65,325   $ 65,681   $  65,224    $  64,667     $ 62,944 Less: Goodwill           635        635        635          635           635 Other intangible   15         16         17           18            20 assets Tangible assets    $ 64,675   $ 65,030   $  64,572    $  64,014     $ 62,289 Common equity      11.28    % 11.09    % 10.97      % 10.78      %  10.98    % ratio Tangible common    10.39      10.20      10.07        9.87          10.04 equity ratio Tangible Common Equity per Share of Common Stock: Common shareholders'      $ 7,369    $ 7,283    $  7,150     $  6,966      $ 6,908 equity Tangible common    6,719      6,632      6,498        6,313         6,253 equity Shares of common stock outstanding  181        182        182          184           185 (in millions) Common shareholders'      $ 40.72    $ 40.09    $  39.22     $  37.93      $ 37.31 equity per share of common stock Tangible common equity per share   37.12      36.50      35.64        34.37         33.77 of common stock  (a) Tier 1 capital and risk-weighted assets as defined by regulation. (b) June 30, 2014 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, as fully     phased-in, 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 common equity Tier 1 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, as fully phased-in. 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.  Logo - http://photos.prnewswire.com/prnh/20010807/CMALOGO  SOURCE Comerica Incorporated  Website: http://www.comerica.com Contact: Media Contact: Wayne J. Mielke, (214) 462-4463; or Investor Contacts: Darlene P. Persons, (214) 462-6831, Brittany L. Butler, (214) 462-6834  
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