COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - PRESS RELEASE

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8-K - FORM 8-K - COMERICA INC /NEW/	d8k.htm
EX-99.2 - EARNINGS PRESENTATION SLIDES - COMERICA INC /NEW/	dex992.htm

Exhibit 99.1

LOGO

COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION

Period-end Total Loans Stable, with Commercial Loans Increasing $713 Million

Broad-based Improvements in Credit Quality

Liquidity and Capital Remain Strong

DALLAS/January 18, 2011 — Comerica Incorporated (NYSE: CMA) today reported fourth quarter 2010 net income of $96 million, compared to $59 million for the third quarter 2010. Fourth quarter 2010 net income included a provision for loan losses of $57 million, compared to $122 million for the third quarter 2010.


(dollar amounts in millions, except per share data)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income	$	405		$	404		$	396
Provision for loan losses		57			122			256
Noninterest income		215			186			214
Noninterest expenses		437			402			425

Net income (loss)		96			59			(29	)

Preferred stock dividends to U.S. Treasury		—			—			33
Net income (loss) attributable to common shares		95			59			(62	)

Diluted income (loss) per common share		0.53			0.33			(0.42	)

Tier 1 capital ratio		10.08	%(a)		9.96	%		12.46	%
Tangible common equity ratio (b)		10.54			10.39			7.99

Net interest margin		3.29			3.23			2.94

(a)

December 31, 2010 ratio is estimated.

(b)

See Reconciliation of Non-GAAP Financial Measures.

“We saw many encouraging and positive signs in the fourth quarter,” said Ralph W. Babb Jr., chairman and chief executive officer. “Period-end loan outstandings were stable, with commercial loans up more than $700 million, or about three percent. We were pleased to see growth in loan outstandings across multiple business lines, particularly Middle Market loans in Texas, as well as growth in National Dealer Services, Mortgage Banker Finance, Energy Lending, and Technology and Life Sciences. These increases were muted by the planned and continued reduction of loans in our Commercial Real Estate business line. We also saw broad-based improvement in credit quality, strong deposit growth and fee income generation. Continued balance sheet strength through careful management of liquidity and capital has positioned Comerica for growth as the economic environment improves.

“Our customers are conveying a more positive and confident tone. Generally, they are feeling much better about the economy. Throughout our geographic footprint, our relationship managers report a growing sense of optimism among customers and prospects. This can be seen in our strong loan pipeline. Given the many positive signs we have seen, as well as our strategy for success, which is focused on growth and balance, we believe we are uniquely positioned for the future.”

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 2

Fourth Quarter and Full-Year 2010 Overview

Fourth Quarter 2010 Highlights Compared to Third Quarter 2010

•

Credit quality improvement accelerated in the fourth quarter 2010. Net credit-related charge-offs decreased $19 million to $113 million. Internal watch list loans declined $629 million to $5.5 billion. Nonaccrual loans decreased $83 million and loans past due 90 days or more declined $42 million. As a result, the provision for loan losses decreased $65 million to $57 million.

•

Period-end total loan outstandings were stable, with growth in commercial loans of $713 million muted by runoff in the Commercial Real Estate business line. Average loans increased $229 million in the fourth quarter 2010, excluding a decrease of $332 million in the Commercial Real Estate business line. In total, average loans decreased $103 million, compared to declines of $570 million and $641 million in the third and second quarters of 2010, respectively.

•

Average core deposits increased $1.1 billion in the fourth quarter 2010, reflecting increases in noninterest-bearing deposits and money market and NOW deposits, partially offset by a decrease in customer certificates of deposit. Average core deposits increased across all markets and in most business lines.

•

Total revenue increased five percent in the fourth quarter 2010, driven by an increase in noninterest income of $29 million, reflecting increases in numerous fee categories.

•

The net interest margin of 3.29 percent increased six basis points. Average earning assets decreased $1.1 billion in the fourth quarter 2010, compared to the third quarter 2010, primarily due to a $1.2 billion decrease in excess liquidity, to $1.8 billion in the fourth quarter 2010.

•

Noninterest expenses totaled $437 million in the fourth quarter 2010, an increase of $35 million from the third quarter 2010, in part the result of an increase in salaries expense of $18 million. The increase in salaries expense was largely driven by an increase in incentive compensation, reflecting improved overall performance and final 2010 peer rankings, and an increase in deferred compensation plan costs, which was offset by an increase in deferred compensation asset returns in noninterest income.

•

In October 2010, Comerica redeemed $515 million of 6.576% subordinated notes due 2037 at par and recognized a pre-tax charge of $5 million in noninterest expenses resulting from the accelerated accretion of the original issuance discount. The notes related to trust preferred securities issued by an unconsolidated subsidiary, which were concurrently redeemed.

•

Capital ratios remained strong. The tangible common equity ratio increased 15 basis points to 10.54 percent at December 31, 2010 and the estimated Tier 1 ratio increased 12 basis points, to 10.08 percent at December 31, 2010, from September 30, 2010.

•

In the fourth quarter 2010, Comerica doubled the quarterly dividend to 10 cents per share, authorized the repurchase of up to 12.6 million shares of common stock in the open market and authorized the purchase of outstanding warrants to purchase up to 11.5 million shares of common stock.

Full-Year 2010 Compared to Full-Year 2009

•

Credit quality improved significantly. Net credit-related charge-offs decreased $305 million to $564 million. Internal watch list loans declined $2.2 billion to $5.5 billion. Nonaccrual loans decreased $85 million and loans past due 90 days or more declined $39 million. As a result, the provision for loan losses decreased $602 million to $480 million.

•

Average earning assets were $51.0 billion in 2010, a decrease of $7.2 billion from 2009. Average loans decreased $5.6 billion in 2010 to $40.5 billion, reflecting subdued loan demand from customers in a modestly recovering economic environment.

•

Average core deposits increased $3.4 billion to $38.7 billion, primarily reflecting increases of $3.4 billion in money market and NOW deposits and $2.2 billion in noninterest-bearing deposits, partially offset by a $2.3 billion decrease in customer certificates of deposit.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 3

Full-Year 2010 Compared to Full-Year 2009 (continued)

•

The net interest margin was 3.24 percent for 2010, compared to 2.72 percent for 2009. The increase in the net interest margin was primarily due to changes in the funding mix, including a continued shift in funding sources toward lower-cost funds, and improved loan spreads.

•

Noninterest income decreased $261 million compared to 2009. Increases in commercial lending fees ($16 million), card fees ($7 million) and letter of credit fees ($7 million) were partially offset by decreases in service charges on deposit accounts ($20 million) and fiduciary income ($7 million). Additionally, 2009 included net securities gains ($243 million), gains related to the repurchase of debt ($15 million) and net gains on the termination of leveraged leases ($8 million).

•

Noninterest expenses decreased $10 million, compared to 2009, primarily reflecting decreases in FDIC insurance expense ($28 million), pension expense ($27 million) and other real estate expense ($19 million), partially offset by an increase in salaries expense ($53 million). The increase in salaries expense was largely driven by an increase in incentive compensation, reflecting improved overall performance and final 2010 peer rankings. Full time equivalent staff decreased by approximately 330 employees, or four percent, from December 31, 2009.

•

In March 2010, Comerica fully redeemed $2.25 billion of preferred stock issued to the U.S. Treasury. The redemption was funded by the net proceeds from an $880 million common stock offering also completed in March 2010 and from excess liquidity at the parent company. The redemption resulted in a one-time charge of $94 million, included in preferred stock dividends, reflecting the accelerated accretion of the remaining discount. In addition, in October 2010, Comerica redeemed $515 million of subordinated notes related to trust preferred securities.

Net Interest Income and Net Interest Margin


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income	$	405		$	404		$	396

Net interest margin		3.29	%		3.23	%		2.94	%

Selected average balances:
Total earning assets	$	49,102		$	50,189		$	53,953
Total investment securities		7,112			6,906			8,587
Federal Reserve Bank deposits (excess liquidity) (a)		1,793			2,983			2,453
Total loans		39,999			40,102			42,753

Total core deposits (b)		39,896			38,786			36,742
Total noninterest-bearing deposits		15,607			14,920			14,430

(a)

See Reconciliation of Non-GAAP Financial Measures.

(b)

Core deposits exclude other time deposits and foreign office time deposits.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 4

•

Net interest income was stable, as the impact of a decline in average earning assets was offset by an increase in the net interest margin.

•

Average earning assets decreased $1.1 billion, primarily due to a decrease of $1.2 billion in excess liquidity, represented by average Federal Reserve Bank deposits. Excluding a decrease of $332 million in the Commercial Real Estate business line, average loans increased $229 million in the fourth quarter 2010, including increases across all markets in the National Dealer Services, Mortgage Banker Finance and Energy Lending business lines. Additionally, average loans increased in the Middle Market business line in the Texas market.

•

The net interest margin of 3.29 percent increased six basis points compared to third quarter 2010. The increase in the net interest margin reflected the benefit from the decrease in excess liquidity and the redemption of higher-cost trust preferred securities discussed above, partially offset by a decrease in yields on investment securities, primarily resulting from elevated prepayment activity in higher-yielding, mortgage-backed investment securities.

•

Fourth quarter 2010 average core deposits increased $1.1 billion compared to third quarter 2010, reflecting increases of $687 million in noninterest-bearing deposits and $621 million in money market and NOW deposits, partially offset by a decrease of $206 million in customer certificates of deposit. Average core deposits increased across all markets and in most business lines.

Noninterest Income

Noninterest income was $215 million for the fourth quarter 2010, compared to $186 million for the third quarter 2010. The $29 million increase resulted largely from increases in commercial lending fees ($7 million), deferred compensation asset returns ($6 million), bank-owned life insurance ($5 million), customer derivative income ($4 million), and a $4 million insurance recovery in the fourth quarter 2010, as well as smaller increases across several fee categories. As expected, service charges on deposit accounts declined $2 million, largely the result of the impact of Regulation E on overdraft fees.

Noninterest Expenses

Noninterest expenses were $437 million for the fourth quarter 2010, compared to $402 million for the third quarter 2010. The $35 million increase in noninterest expenses was primarily due to an increase in salaries expense ($18 million), a $5 million one-time charge related to the redemption of subordinated notes previously discussed, and increases in outside processing fees ($4 million) and litigation and operational losses ($4 million). The increase in salaries expense was primarily due to increases in executive and business unit incentives ($10 million), deferred compensation plan costs ($6 million) (offset by an increase in deferred compensation asset returns in noninterest income) and severance expense ($3 million), partially offset by a decrease in share-based compensation expense ($5 million). Full-time equivalent staff decreased by approximately 330 employees, or four percent, from December 31, 2009.

Credit Quality

“All of the key credit metrics are moving in the right direction, with decreases in net charge-offs, watch list loans and nonaccrual loans, all leading to a significant decline in the provision for loan losses,” said Babb. “Comerica’s credit performance throughout this cycle has been among the best in our peer group. We believe it is a reflection of our strong credit culture and the diligent credit quality review processes we employ. We expect to see continued improvement given the moderate pace of the economic recovery.”

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 5

•

Net credit-related charge-offs decreased $19 million to $113 million in the fourth quarter 2010, from $132 million in the third quarter 2010. The decrease in net credit-related charge-offs primarily resulted from decreases of $19 million in the Commercial Real Estate business line and $9 million in the Middle Market business line, partially offset by increases of $6 million in the Global Corporate Banking business line and $4 million in Private Banking.

•

Internal watch list loans declined $629 million to $5.5 billion from September 30, 2010 to December 31, 2010.

•

During the fourth quarter 2010, $180 million of loan relationships greater than $2 million were transferred to nonaccrual status, a decrease of $114 million from the third quarter 2010, primarily due to a $61 million decrease in transfers from the Commercial Real Estate business line and a $54 million decrease in transfers from the Middle Market business line. Of the transfers of loan relationships greater than $2 million to nonaccrual in the fourth quarter 2010, $71 million were from the Commercial Real Estate business line, primarily in the Midwest and Florida markets, and $71 million were from the Middle Market business line, in the Midwest and Western markets.

•

Nonperforming assets decreased $76 million to $1.2 billion, or 3.06 percent of total loans and foreclosed property, at December 31, 2010.

•

Nonaccrual loans were charged down 46 percent at December 31, 2010.

•

Foreclosed property decreased $8 million to $112 million at December 31, 2010, from $120 million at September 30, 2010.

•

Loans past due 90 days or more and still accruing were $62 million at December 31, 2010, a decrease of $42 million compared to September 30, 2010.

•

The provision for loan losses decreased $65 million, primarily due to reductions in the Middle Market, Private Banking, Commercial Real Estate and Leasing business lines, partially offset by increases in the Global Corporate Banking and Personal Banking business lines.

•

The allowance for loan losses to total loans ratio was 2.24 percent and 2.38 percent at December 31, 2010 and September 30, 2010, respectively.


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net credit-related charge-offs	$	113		$	132		$	225
Net credit-related charge-offs/Average total loans		1.13	%		1.32	%		2.10	%

Provision for loan losses	$	57		$	122		$	256
Provision for credit losses on lending-related commitments		(3	)		(6	)		3

Total provision for credit losses		54			116			259

Nonperforming loans		1,123			1,191			1,181
Nonperforming assets (NPAs)		1,235			1,311			1,292
NPAs/Total loans and foreclosed property		3.06	%		3.24	%		3.06	%

Loans past due 90 days or more and still accruing	$	62		$	104		$	101

Allowance for loan losses		901			957			985
Allowance for credit losses on lending-related commitments (a)		35			38			37

Total allowance for credit losses		936			995			1,022
Allowance for loan losses/Total loans		2.24	%		2.38	%		2.34	%
Allowance for loan losses/Nonperforming loans		80			80			83

(a)

Included in “Accrued expenses and other liabilities” on the consolidated balance sheets.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 6

Balance Sheet and Capital Management

Total assets and common shareholders’ equity were $53.7 billion and $5.8 billion, respectively, at December 31, 2010, compared to $55.0 billion and $5.9 billion, respectively, at September 30, 2010. There were approximately 177 million common shares outstanding at December 31, 2010.

Comerica’s tangible common equity ratio was 10.54 percent at December 31, 2010, an increase of 15 basis points from September 30, 2010. The estimated Tier 1 ratio increased 12 basis points, to 10.08 percent at December 31, 2010, from September 30, 2010.

Full-Year 2011 Outlook

For full-year 2011, management expects the following, compared to full-year 2010, based on a continuation of modest growth in the economy. NOTE: This outlook does not include any impact from the acquisition of Sterling Bancshares, Inc.

•

A low single-digit decrease in average loans. Excluding the Commercial Real Estate business line, a low single-digit increase in average loans.

•

Average earning assets of approximately $48 billion, reflecting lower excess liquidity in addition to a decrease in average loans.

•

An average net interest margin similar to full-year 2010, based on no increase in the Federal Funds rate.

•

Net credit-related charge-offs between $350 million and $400 million. The provision for credit losses is expected to be between $150 million and $200 million.

•

A low single-digit decline in noninterest income, primarily due to the impact of regulatory changes.

•

A low single-digit increase in noninterest expenses, primarily due to an increase in employee benefits expense.

•

Income tax expense to approximate 36 percent of income before income taxes less approximately $60 million of permanent differences related to low-income housing and bank-owned life insurance.

•

Commence a share repurchase program that, combined with dividend payments, results in a payout of less than 50 percent of earnings.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 7

Business Segments

Comerica’s continuing operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. The Finance Division also is included as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at December 31, 2010 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2010 results compared to third quarter 2010.

The following table presents net income (loss) by business segment.


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Business Bank	$	174		$	133		$	64
Retail Bank		(14	)		(7	)		(12	)
Wealth & Institutional Management		(10	)		(10	)		5

		150			116			57
Finance		(60	)		(58	)		(62	)
Other (a)		6			1			(24	)

Total	$	96		$	59		$	(29	)

(a)

Includes discontinued operations and items not directly associated with the three major business segments
or the Finance Division.

Business Bank


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	341		$	336		$	343
Provision for loan losses		8			57			180
Noninterest income		81			69			77
Noninterest expenses		158			155			165
Net income		174			133			64

Net credit-related charge-offs		73			99			183

Selected average balances:
Assets		30,489			30,309			32,655
Loans		29,947			29,940			32,289
Deposits		19,892			19,266			16,944

Net interest margin		4.51	%		4.45	%		4.21	%

•

Average loans increased $7 million, reflecting increases in National Dealer Services, Mortgage Banker Finance and Energy Lending largely offset by decreases in Commercial Real Estate, Middle Market and Global Corporate Banking.

•

Average deposits increased $626 million, primarily due to increases in Middle Market and Technology and Life Sciences.

•

The net interest margin of 4.51 percent increased six basis points, primarily due to increases in loan spreads and deposit balances, partially offset by a decrease in deposit spreads.

•

The provision for loan losses decreased $49 million, primarily due to a decrease in Middle Market.

•

Noninterest income increased $12 million, primarily due to an increase in commercial lending fees.

•

Noninterest expenses increased $3 million, primarily due to increases in incentive compensation included in corporate overhead and the provision for credit losses on lending-related commitments, partially offset by a decrease in other real estate expense.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 8

Retail Bank


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	134		$	133		$	129
Provision for loan losses		29			24			36
Noninterest income		43			45			48
Noninterest expenses		169			165			161
Net loss		(14	)		(7	)		(12	)

Net credit-related charge-offs		22			19			30

Selected average balances:
Assets		5,647			5,777			6,257
Loans		5,192			5,314			5,733
Deposits		17,271			16,972			17,020

Net interest margin		3.07	%		3.10	%		3.02	%

•

Average loans decreased $122 million, reflecting declines across all markets and business lines.

•

Average deposits increased $299 million, primarily due to increases in transaction and money market deposits, partially offset by a decline in customer certificates of deposit.

•

The net interest margin of 3.07 percent decreased three basis points, primarily due to decreases in deposit spreads and loan balances.

•

The provision for loan losses increased $5 million, primarily due to an increase in Personal Banking in the Midwest market.

•

Noninterest income decreased $2 million, primarily due to a decrease in service charges on deposit accounts, largely the result of the impact of Regulation E on overdraft fees.

•

Noninterest expenses increased $4 million, primarily due to an increase in incentive compensation included in corporate overhead.

Wealth and Institutional Management


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	42		$	41		$	42
Provision for loan losses		23			37			19
Noninterest income		59			59			60
Noninterest expenses		93			78			76
Net income (loss)		(10	)		(10	)		5

Net credit-related charge-offs		18			14			12

Selected average balances:
Assets		4,834			4,855			4,841
Loans		4,820			4,824			4,746
Deposits		2,730			2,606			2,849

Net interest margin		3.43	%		3.42	%		3.50	%

•

Average loans decreased $4 million.

•

Average deposits increased $124 million, primarily due to increases in transaction and money market deposits.

•

The net interest margin of 3.43 percent increased one basis point.

•

The provision for loan losses decreased $14 million, primarily due to a decrease in the Western market.

•

Noninterest expenses increased $15 million, primarily due to increases in salaries expense, outside processing fees, litigation and operational losses, and incentive compensation included in corporate overhead.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 9

Geographic Market Segments

Comerica also provides market segment results for four primary geographic markets: Midwest, Western, Texas and Florida. In addition to the four primary geographic markets, Other Markets and International are also reported as market segments. The financial results below are based on methodologies in effect at December 31, 2010 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2010 results compared to third quarter 2010.

The following table presents net income (loss) by market segment.


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Midwest	$	35		$	49		$	12
Western		41			13			6
Texas		16			14			13
Florida		1			(6	)		3
Other Markets		48			33			23
International		9			13			—

		150			116			57
Finance & Other Businesses (a)		(54	)		(57	)		(86	)

Total	$	96		$	59		$	(29	)

(a)

Includes discontinued operations and items not directly associated with the geographic markets.

Midwest Market


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	202		$	200		$	204
Provision for loan losses		46			38			102
Noninterest income		99			99			106
Noninterest expenses		201			185			193
Net income		35			49			12

Net credit-related charge-offs		52			61			97

Selected average balances:
Assets		14,506			14,445			15,729
Loans		14,219			14,276			15,449
Deposits		17,959			17,777			17,186

Net interest margin		4.45	%		4.45	%		4.70	%

•

Average loans decreased $57 million, with declines in most business lines, partially offset by increases in National Dealer Services and Global Corporate Banking.

•

Average deposits increased $182 million, primarily due to increases in Small Business Banking and Middle Market, partially offset by a decrease in Global Corporate Banking.

•

The provision for loan losses increased $8 million, primarily due to increases in Global Corporate Banking, Commercial Real Estate and Personal Banking, partially offset by a decrease in Middle Market.

•

Noninterest expenses increased $16 million, primarily due to increases in incentive compensation included in corporate overhead, litigation and operational losses and outside processing fees.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 10

Western Market


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	158		$	157		$	163
Provision for loan losses		11			51			79
Noninterest income		35			31			33
Noninterest expenses		109			108			110
Net income		41			13			6

Net credit-related charge-offs		43			58			85

Selected average balances:
Assets		12,698			12,746			13,484
Loans		12,497			12,556			13,289
Deposits		12,448			11,793			11,900

Net interest margin		5.01	%		4.96	%		4.85	%

•

Average loans decreased $59 million, primarily due to decreases in Commercial Real Estate and Middle Market, partially offset by an increase in National Dealer Services.

•

Average deposits increased $655 million, primarily due to increases in Middle Market, the Financial Services Division and Technology and Life Sciences.

•

The net interest margin of 5.01 percent increased five basis points, primarily due to increases in loan spreads and deposit balances.

•

The provision for loan losses decreased $40 million, primarily due to decreases in Private Banking, Middle Market and Commercial Real Estate.

•

Noninterest income increased $4 million, primarily due to an increase in commercial lending fees.

Texas Market


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	80		$	78		$	78
Provision for loan losses		15			17			20
Noninterest income		27			21			23
Noninterest expenses		67			61			61
Net income		16			14			13

Total net credit-related charge-offs		9			5			13

Selected average balances:
Assets		6,653			6,556			7,118
Loans		6,435			6,357			6,934
Deposits		5,557			5,443			4,737

Net interest margin		4.91	%		4.87	%		4.46	%

•

Average loans increased $78 million, primarily due to increases in Middle Market and Energy Lending, partially offset by a decrease in Commercial Real Estate.

•

Average deposits increased $114 million, primarily due to increases in Small Business Banking and Technology and Life Sciences.

•

The net interest margin of 4.91 percent increased four basis points, primarily due to increases in loan spreads and deposit balances.

•

The provision for loan losses decreased $2 million, primarily due to a decrease in Commercial Real Estate, partially offset by an increase in Energy Lending.

•

Noninterest income increased $6 million, primarily due to an increase in commercial lending fees.

•

Noninterest expenses increased $6 million, primarily due to increases in the provision for credit losses on lending-related commitments and incentive compensation included in corporate overhead.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 11

Florida Market


(dollar amounts in millions)	4th Qtr ‘10			3rd Qtr ‘10			4th Qtr ‘09
Net interest income (FTE)	$	11		$	10		$	10
Provision for loan losses		4			10			—
Noninterest income		3			4			3
Noninterest expenses		9			13			9
Net income (loss)		1			(6	)		3

Net credit-related charge-offs		7			6			4

Selected average balances:
Assets		1,587			1,528			1,608
Loans		1,612			1,549			1,613
Deposits		375			364			333

Net interest margin		2.64	%		2.61	%		2.57	%

•

Average loans increased $63 million, primarily due to an increase in National Dealer Services.

•

Average deposits increased $11 million, primarily due to an increase in Private Banking, partially offset by a decrease in Global Corporate Banking.

•

The net interest margin of 2.64 percent increased three basis points, primarily due to an increase in deposit spreads.

•

The provision for loan losses decreased $6 million, reflecting decreases in most business lines.

Conference Call and Webcast

Comerica will host a conference call to review fourth quarter and full-year 2010 financial results at 7 a.m. CT Tuesday, January 18, 2011. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 38040930). The call and supplemental financial information can also be accessed on the Internet at www.comerica.com. A replay will be available approximately two hours following the conference call through January 31, 2011. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 38040930). A replay of the Webcast can also 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 & Institutional 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 the reconcilement 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.

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COMERICA REPORTS FOURTH QUARTER NET INCOME OF $96 MILLION – 12

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,” “feels,” “expects,” “estimates,” “seeks,” “strives,” “plans,” “intends,” “outlook,” “forecast,” “position,” “target,” “mission,” “assume,” “achievable,” “potential,” “strategy,” “goal,” “aspiration,” “outcome,” “continue,” “remain,” “maintain,” “trend,” “objective” 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 further economic downturns, changes in the pace of an economic recovery and related changes in employment levels, changes in real estate values, fuel prices, energy costs or other events that could affect customer income levels or general economic conditions, the effects of recently enacted legislation, actions taken by or proposed by the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System, the Texas Department of Banking and the Federal Deposit Insurance Corporation, legislation or regulations enacted in the future, and the impact and expiration of such legislation and regulatory actions, the effects of war and other armed conflicts or acts of terrorism, the effects of natural disasters including, but not limited to, hurricanes, tornadoes, earthquakes, fires, droughts and floods, the disruption of private or public utilities, the implementation of Comerica’s strategies and business models, management’s ability to maintain and expand customer relationships, changes in customer borrowing, repayment, investment and deposit practices, management’s ability to retain key officers and employees, changes in the accounting treatment of any particular item, the impact of regulatory examinations, declines or other changes in the businesses or industries in which Comerica has a concentration of loans, including, but not limited to, the automotive production industry and the real estate business lines, the anticipated performance of any new banking centers, the entry of new competitors in Comerica’s markets, changes in the level of fee income, changes in applicable laws and regulations, including those concerning taxes, banking, securities and insurance, changes in trade, monetary and fiscal policies, including the interest rate policies of the Board of Governors of the Federal Reserve System, fluctuations in inflation or interest rates, changes in general economic, political or industry conditions and related credit and market conditions, the interdependence of financial service companies and adverse conditions in the stock market. 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 11 of Comerica’s Annual Report on Form 10-K for the year ended December 31, 2009, “Item 1A. Risk Factors” beginning on page 67 of Comerica’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, “Item 1A. Risk Factors” beginning on page 71 of Comerica’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 and “Item 1A. Risk Factors” beginning on page 72 of Comerica’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010. 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.


Media Contact:				Investor Contacts:
Wayne J. Mielke				Darlene P. Persons
(214) 462-4463				(214) 462-6831

				Tracy Fralick
				(214) 462-6834

CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

Comerica Incorporated and Subsidiaries


	Three Months Ended									Years Ended
	December 31, 2010			September 30, 2010			December 31, 2009			December 31,
(in millions, except per share data)	December 31, 2010			September 30, 2010			December 31, 2009			2010			2009
PER COMMON SHARE AND COMMON STOCK DATA
Diluted net income (loss)	$	0.53		$	0.33		$	(0.42	)	$	0.88		$	(0.79	)
Cash dividends declared		0.10			0.05			0.05			0.25			0.20
Common shareholders’ equity (at period end)		32.82			33.19			32.27

Average diluted shares (in thousands)		178,266			177,686			149,445			173,026			149,386
KEY RATIOS
Return on average common shareholders’ equity		6.53	%		4.07	%		(5.10	)%		2.74	%		(2.37	)%
Return on average assets		0.71			0.43			(0.19	)		0.50			0.03
Tier 1 common capital ratio (a) (b)		10.08			9.96			8.18
Tier 1 risk-based capital ratio (b)		10.08			9.96			12.46
Total risk-based capital ratio (b)		14.47			14.37			16.93
Leverage ratio (b)		11.25			10.91			13.25
Tangible common equity ratio (a)		10.54			10.39			7.99
AVERAGE BALANCES
Commercial loans	$	21,464		$	20,967		$	21,971		$	21,090		$	24,534
Real estate construction loans		2,371			2,625			3,703			2,839			4,140
Commercial mortgage loans		9,965			10,257			10,393			10,244			10,415
Residential mortgage loans		1,600			1,590			1,664			1,607			1,756
Consumer loans		2,367			2,421			2,517			2,429			2,553
Lease financing		1,044			1,064			1,181			1,086			1,231
International loans		1,188			1,178			1,324			1,222			1,533

Total loans		39,999			40,102			42,753			40,517			46,162

Earning assets		49,102			50,189			53,953			51,004			58,162
Total assets		53,756			54,729			58,396			55,553			62,809
Noninterest-bearing deposits		15,607			14,920			14,430			15,094			12,900
Interest-bearing core deposits		24,289			23,866			22,312			23,624			22,435
Total core deposits		39,896			38,786			36,742			38,718			35,335
Common shareholders’ equity		5,870			5,842			4,876			5,625			4,959
Total shareholders’ equity		5,870			5,842			7,024			6,068			7,099
NET INTEREST INCOME
Net interest income (fully taxable equivalent basis)	$	406		$	405		$	398		$	1,651		$	1,575
Fully taxable equivalent adjustment		1			1			2			5			8
Net interest margin		3.29	%		3.23	%		2.94	%		3.24	%		2.72	%
CREDIT QUALITY
Nonaccrual loans	$	1,080		$	1,163		$	1,165
Reduced-rate loans		43			28			16

Total nonperforming loans		1,123			1,191			1,181
Foreclosed property		112			120			111

Total nonperforming assets		1,235			1,311			1,292

Loans past due 90 days or more and still accruing		62			104			101

Gross loan charge-offs		140			145			232		$	627		$	895
Loan recoveries		27			13			8			63			27

Net loan charge-offs		113			132			224			564			868
Lending-related commitment charge-offs		—			—			1			—			1

Total net credit-related charge-offs		113			132			225			564			869

Allowance for loan losses		901			957			985
Allowance for credit losses on lending-related commitments		35			38			37

Total allowance for credit losses		936			995			1,022

Allowance for loan losses as a percentage of total loans		2.24	%		2.38	%		2.34	%
Net loan charge-offs as a percentage of average total loans		1.13			1.32			2.09			1.39	%		1.88	%
Net credit-related charge-offs as a percentage of average total loans		1.13			1.32			2.10			1.39			1.88
Nonperforming assets as a percentage of total loans and foreclosed property		3.06			3.24			3.06
Allowance for loan losses as a percentage of total nonperforming loans		80			80			83

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

(b)	December 31, 2010 ratios are estimated.

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CONSOLIDATED BALANCE SHEETS

Comerica Incorporated and Subsidiaries


(in millions, except share data)	December 31, 2010			September 30, 2010			December 31, 2009
	(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	668		$	863		$	774
Federal funds sold and securities purchased under agreements to resell		—			100			—
Interest-bearing deposits with banks		1,415			3,031			4,843
Other short-term investments		141			115			138

Investment securities available-for-sale		7,560			6,816			7,416

Commercial loans		22,145			21,432			21,690
Real estate construction loans		2,253			2,444			3,461
Commercial mortgage loans		9,767			10,180			10,457
Residential mortgage loans		1,619			1,586			1,651
Consumer loans		2,311			2,403			2,511
Lease financing		1,009			1,053			1,139
International loans		1,132			1,182			1,252

Total loans		40,236			40,280			42,161
Less allowance for loan losses		(901	)		(957	)		(985	)

Net loans		39,335			39,323			41,176

Premises and equipment		630			639			644
Customers’ liability on acceptances outstanding		9			13			11
Accrued income and other assets		3,909			4,104			4,247

Total assets	$	53,667		$	55,004		$	59,249


LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest-bearing deposits	$	15,538		$	15,763		$	15,871

Money market and NOW deposits		17,622			17,288			14,450
Savings deposits		1,397			1,363			1,342
Customer certificates of deposit		5,482			5,723			6,413
Other time deposits		—			—			1,047
Foreign office time deposits		432			494			542

Total interest-bearing deposits		24,933			24,868			23,794

Total deposits		40,471			40,631			39,665

Short-term borrowings		130			179			462
Acceptances outstanding		9			13			11
Accrued expenses and other liabilities		1,126			1,085			1,022
Medium- and long-term debt		6,138			7,239			11,060

Total liabilities		47,874			49,147			52,220

Fixed rate cumulative perpetual preferred stock, series F, no par value, $1,000 liquidation value per share:
Authorized - 2,250,000 shares at 12/31/09
Issued - 2,250,000 shares at 12/31/09		—			—			2,151
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 203,878,110 shares at 12/31/10 and 9/30/10, and 178,735,252 shares at 12/31/09		1,019			1,019			894
Capital surplus		1,481			1,473			740
Accumulated other comprehensive loss		(389	)		(238	)		(336	)
Retained earnings		5,247			5,171			5,161
Less cost of common stock in treasury - 27,342,518 shares at 12/31/10, 27,394,831 shares at 9/30/10, and 27,555,623 shares at 12/31/09		(1,565	)		(1,568	)		(1,581	)

Total shareholders’ equity		5,793			5,857			7,029

Total liabilities and shareholders’ equity	$	53,667		$	55,004		$	59,249

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CONSOLIDATED STATEMENTS OF INCOME (unaudited)

Comerica Incorporated and Subsidiaries


	Three Months Ended						Years Ended
	December 31,						December 31,
(in millions, except per share data)	2010			2009			2010			2009

INTEREST INCOME
Interest and fees on loans	$	394		$	424		$	1,617		$	1,767
Interest on investment securities		49			53			226			329
Interest on short-term investments		2			2			10			9

Total interest income		445			479			1,853			2,105

INTEREST EXPENSE
Interest on deposits		24			52			115			372
Interest on short-term borrowings		1			—			1			2
Interest on medium- and long-term debt		15			31			91			164

Total interest expense		40			83			207			538

Net interest income		405			396			1,646			1,567
Provision for loan losses		57			256			480			1,082

Net interest income after provision for loan losses		348			140			1,166			485

NONINTEREST INCOME
Service charges on deposit accounts		49			56			208			228
Fiduciary income		39			38			154			161
Commercial lending fees		29			21			95			79
Letter of credit fees		20			19			76			69
Card fees		15			14			58			51
Foreign exchange income		11			11			39			41
Bank-owned life insurance		14			9			40			35
Brokerage fees		7			7			25			31
Net securities gains		—			10			3			243
Other noninterest income		31			29			91			112

Total noninterest income		215			214			789			1,050

NONINTEREST EXPENSES
Salaries		205			174			740			687
Employee benefits		43			51			179			210

Total salaries and employee benefits		248			225			919			897
Net occupancy expense		42			43			162			162
Equipment expense		16			16			63			62
Outside processing fee expense		27			23			96			97
Software expense		23			23			89			84
FDIC insurance expense		15			15			62			90
Legal fees		9			12			35			37
Advertising expense		8			7			30			29
Other real estate expense		5			22			29			48
Litigation and operational losses		6			3			11			10
Provision for credit losses on lending-related commitments		(3	)		3			(2	)		—
Other noninterest expenses		41			33			146			134

Total noninterest expenses		437			425			1,640			1,650

Income (loss) from continuing operations before income taxes		126			(71	)		315			(115	)
Provision (benefit) for income taxes		30			(42	)		55			(131	)

Income (loss) from continuing operations		96			(29	)		260			16
Income from discontinued operations, net of tax		—			—			17			1

NET INCOME (LOSS)		96			(29	)		277			17
Less:
Preferred stock dividends		—			33			123			134
Income allocated to participating securities		1			—			1			1

Net income (loss) attributable to common shares	$	95		$	(62	)	$	153		$	(118	)


Basic earnings per common share:
Income (loss) from continuing operations	$	0.54		$	(0.42	)	$	0.79		$	(0.80	)
Net income (loss)		0.54			(0.42	)		0.90			(0.79	)

Diluted earnings per common share:
Income (loss) from continuing operations		0.53			(0.42	)		0.78			(0.80	)
Net income (loss)		0.53			(0.42	)		0.88			(0.79	)

Cash dividends declared on common stock		18			8			44			30
Cash dividends declared per common share		0.10			0.05			0.25			0.20

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CONSOLIDATED QUARTERLY STATEMENTS OF INCOME (unaudited)

Comerica Incorporated and Subsidiaries


	Fourth			Third			Second		First			Fourth			Fourth Quarter 2010 Compared To:
	Quarter			Quarter			Quarter		Quarter			Quarter			Third Quarter 2010						Fourth Quarter 2009
(in millions, except per share data)	2010			2010			2010		2010			2009			Amount			Percent			Amount			Percent

INTEREST INCOME
Interest and fees on loans	$	394		$	399		$	412	$	412		$	424		$	(5	)		(1	)%	$	(30	)		(7	)%
Interest on investment securities		49			55			61		61			53			(6	)		(9	)		(4	)		(6	)
Interest on short-term investments		2			2			3		3			2			—			(33	)		—			(22	)

Total interest income		445			456			476		476			479			(11	)		(2	)		(34	)		(7	)

INTEREST EXPENSE
Interest on deposits		24			27			29		35			52			(3	)		(7	)		(28	)		(52	)
Interest on short-term borrowings		1			—			—		—			—			1			(35	)		1			N/M
Interest on medium- and long-term debt		15			25			25		26			31			(10	)		(36	)		(16	)		(49	)

Total interest expense		40			52			54		61			83			(12	)		(21	)		(43	)		(51	)

Net interest income		405			404			422		415			396			1			—			9			2
Provision for loan losses		57			122			126		175			256			(65	)		(53	)		(199	)		(78	)

Net interest income after provision for loan losses		348			282			296		240			140			66			23			208			N/M

NONINTEREST INCOME
Service charges on deposit accounts		49			51			52		56			56			(2	)		(6	)		(7	)		(13	)
Fiduciary income		39			38			38		39			38			1			3			1			1
Commercial lending fees		29			22			22		22			21			7			37			8			38
Letter of credit fees		20			19			19		18			19			1			3			1			4
Card fees		15			15			15		13			14			—			4			1			14
Foreign exchange income		11			8			10		10			11			3			28			—			3
Bank-owned life insurance		14			9			9		8			9			5			63			5			57
Brokerage fees		7			6			6		6			7			1			13			—			(1	)
Net securities gains		—			—			1		2			10			—			N/M			(10	)		(99	)
Other noninterest income		31			18			22		20			29			13			64			2			4

Total noninterest income		215			186			194		194			214			29			15			1			—

NONINTEREST EXPENSES
Salaries		205			187			179		169			174			18			10			31			17
Employee benefits		43			47			45		44			51			(4	)		(6	)		(8	)		(15	)

Total salaries and employee benefits		248			234			224		213			225			14			7			23			10
Net occupancy expense		42			40			39		41			43			2			4			(1	)		(3	)
Equipment expense		16			15			15		17			16			1			6			—			4
Outside processing fee expense		27			23			23		23			23			4			17			4			20
Software expense		23			22			22		22			23			1			11			—			7
FDIC insurance expense		15			14			16		17			15			1			1			—			(5	)
Legal fees		9			9			9		8			12			—			(3	)		(3	)		(26	)
Advertising expense		8			7			7		8			7			1			3			1			5
Other real estate expense		5			7			5		12			22			(2	)		(40	)		(17	)		(79	)
Litigation and operational losses		6			2			2		1			3			4			N/M			3			N/M
Provision for credit losses on lending-related commitments		(3	)		(6	)		—		7			3			3			35			(6	)		N/M
Other noninterest expenses		41			35			35		35			33			6			22			8			17

Total noninterest expenses		437			402			397		404			425			35			9			12			3

Income (loss) from continuing operations before income taxes		126			66			93		30			(71	)		60			88			197			N/M
Provision (benefit) for income taxes		30			7			23		(5	)		(42	)		23			N/M			72			N/M

Income (loss) from continuing operations		96			59			70		35			(29	)		37			61			125			N/M
Income from discontinued operations, net of tax		—			—			—		17			—			—			—			—			—

NET INCOME (LOSS)		96			59			70		52			(29	)		37			61			125			N/M
Less:
Preferred stock dividends		—			—			—		123			33			—			—			(33	)		N/M
Income allocated to participating securities		1			—			1		—			—			1			62			1			N/M

Net income (loss) attributable to common shares	$	95		$	59		$	69	$	(71	)	$	(62	)	$	36			61	%	$	157			N/M	%


Basic earnings per common share:
Income (loss) from continuing operations	$	0.54		$	0.34		$	0.40	$	(0.57	)	$	(0.42	)	$	0.20			59	%	$	0.96			N/M	%
Net income (loss)		0.54			0.34			0.40		(0.46	)		(0.42	)		0.20			59			0.96			N/M

Diluted earnings per common share:
Income (loss) from continuing operations		0.53			0.33			0.39		(0.57	)		(0.42	)		0.20			61			0.95			N/M
Net income (loss)		0.53			0.33			0.39		(0.46	)		(0.42	)		0.20			61			0.95			N/M

Cash dividends declared on common stock		18			9			8		9			8			9			N/M			10			N/M
Cash dividends declared per common share		0.10			0.05			0.05		0.05			0.05			0.05			N/M			0.05			N/M

N/M - Not meaningful

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ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES (unaudited)

Comerica Incorporated and Subsidiaries


	2010												2009
(in millions)	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr

Balance at beginning of period	$	957		$	967		$	987		$	985		$	953

Loan charge-offs:
Commercial		43			38			65			49			113
Real estate construction:
Commercial Real Estate business line (a)		34			40			30			71			33
Other business lines (b)		—			1			—			3			—

Total real estate construction		34			41			30			74			33
Commercial mortgage:
Commercial Real Estate business line (a)		9			16			12			16			27
Other business lines (b)		34			40			36			28			25

Total commercial mortgage		43			56			48			44			52
Residential mortgage		5			2			5			2			6
Consumer		15			7			9			8			9
Lease financing		—			—			1			—			6
International		—			1			—			7			13

Total loan charge-offs		140			145			158			184			232

Recoveries on loans previously charged-off:
Commercial		7			7			4			7			7
Real estate construction		3			1			6			1			—
Commercial mortgage		10			2			1			3			1
Residential mortgage		1			—			—			—			—
Consumer		2			1			1			—			—
Lease financing		4			1			—			—			—
International		—			1			—			—			—

Total recoveries		27			13			12			11			8

Net loan charge-offs		113			132			146			173			224
Provision for loan losses		57			122			126			175			256

Balance at end of period	$	901		$	957		$	967		$	987		$	985

Allowance for loan losses as a percentage of total loans		2.24	%		2.38	%		2.38	%		2.42	%		2.34	%
Net loan charge-offs as a percentage of average total loans		1.13			1.32			1.44			1.68			2.09
Net credit-related charge-offs as a percentage of average total loans		1.13			1.32			1.44			1.68			2.10

(a)	Primarily charge-offs of loans to real estate investors and developers.

(b)	Primarily charge-offs of loans secured by owner-occupied real estate.

ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS (unaudited)

Comerica Incorporated and Subsidiaries


	2010										2009
(in millions)	4th Qtr			3rd Qtr			2nd Qtr		1st Qtr		4th Qtr

Balance at beginning of period	$	38		$	44		$	44	$	37	$	35
Less: Charge-offs on lending-related commitments (a)		—			—			—		—		1
Add: Provision for credit losses on lending-related commitments		(3	)		(6	)		—		7		3

Balance at end of period	$	35		$	38		$	44	$	44	$	37

Unfunded lending-related commitments sold	$	—		$	—		$	2	$	—	$	3

(a)	Charge-offs result from the sale of unfunded lending-related commitments.

-17-

NONPERFORMING ASSETS (unaudited)

Comerica Incorporated and Subsidiaries


	2010												2009
(in millions)	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS
Nonaccrual loans:
Business loans:
Commercial	$	252		$	258		$	239		$	209		$	238
Real estate construction:
Commercial Real Estate business line (a)		259			362			385			516			507
Other business lines (b)		4			4			4			3			4

Total real estate construction		263			366			389			519			511
Commercial mortgage:
Commercial Real Estate business line (a)		181			153			135			105			127
Other business lines (b)		302			304			257			226			192

Total commercial mortgage		483			457			392			331			319
Lease financing		7			10			11			11			13
International		2			2			3			4			22

Total nonaccrual business loans		1,007			1,093			1,034			1,074			1,103
Retail loans:
Residential mortgage		55			59			53			58			50
Consumer:
Home equity		5			5			7			8			8
Other consumer		13			6			4			5			4

Total consumer		18			11			11			13			12

Total nonaccrual retail loans		73			70			64			71			62

Total nonaccrual loans		1,080			1,163			1,098			1,145			1,165
Reduced-rate loans		43			28			23			17			16

Total nonperforming loans		1,123			1,191			1,121			1,162			1,181
Foreclosed property		112			120			93			89			111

Total nonperforming assets	$	1,235		$	1,311		$	1,214		$	1,251		$	1,292


Nonperforming loans as a percentage of total loans		2.79	%		2.96	%		2.76	%		2.85	%		2.80	%
Nonperforming assets as a percentage of total loans and foreclosed property		3.06			3.24			2.98			3.06			3.06
Allowance for loan losses as a percentage of total nonperforming loans		80			80			86			85			83
Loans past due 90 days or more and still accruing	$	62		$	104		$	115		$	83		$	101

ANALYSIS OF NONACCRUAL LOANS
Nonaccrual loans at beginning of period	$	1,163		$	1,098		$	1,145		$	1,165		$	1,194
Loans transferred to nonaccrual (c)		180			294			199			245			266
Nonaccrual business loan gross charge-offs (d)		(120	)		(136	)		(143	)		(174	)		(217	)
Loans transferred to accrual status (c)		(4	)		(10	)		—			—			—
Nonaccrual business loans sold (e)		(41	)		(12	)		(47	)		(44	)		(10	)
Payments/Other (f)		(98	)		(71	)		(56	)		(47	)		(68	)

Nonaccrual loans at end of period	$	1,080		$	1,163		$	1,098		$	1,145		$	1,165


(a) Primarily loans to real estate investors and developers. (b) Primarily loans secured by owner-occupied real estate. (c) Based on an analysis of nonaccrual loans with book balances greater than $2 million. (d) Analysis of gross loan charge-offs:

Nonaccrual business loans	$	120		$	136		$	143		$	174		$	217
Performing watch list loans		—			—			1			—			—
Consumer and residential mortgage loans		20			9			14			10			15

Total gross loan charge-offs	$	140		$	145		$	158		$	184		$	232

(e) Analysis of loans sold:
Nonaccrual business loans	$	41		$	12		$	47		$	44		$	10
Performing watch list loans		29			7			15			12			1

Total loans sold	$	70		$	19		$	62		$	56		$	11

(f)	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.

-18-

ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)

Comerica Incorporated and Subsidiaries


	Years Ended
	December 31, 2010								December 31, 2009
(dollar amounts in millions)	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate

Commercial loans	$	21,090		$	820		3.89	%	$	24,534		$	890		3.63	%
Real estate construction loans		2,839			90		3.17			4,140			121		2.92
Commercial mortgage loans		10,244			421		4.10			10,415			437		4.20
Residential mortgage loans		1,607			85		5.30			1,756			97		5.53
Consumer loans		2,429			86		3.54			2,553			94		3.68
Lease financing		1,086			42		3.88			1,231			40		3.25
International loans		1,222			48		3.94			1,533			58		3.79
Business loan swap income		—			28		—			—			34		—

Total loans		40,517			1,620		4.00			46,162			1,771		3.84

Auction-rate securities available-for-sale		745			8		1.01			1,010			15		1.47
Other investment securities available-for-sale		6,419			220		3.51			8,378			318		3.88

Total investment securities available-for-sale		7,164			228		3.24			9,388			333		3.61

Federal funds sold and securities purchased under agreements to resell		6			—		0.36			18			—		0.32
Interest-bearing deposits with banks (a)		3,191			8		0.25			2,440			6		0.25
Other short-term investments		126			2		1.58			154			3		1.74

Total earning assets		51,004			1,858		3.65			58,162			2,113		3.64

Cash and due from banks		825								883
Allowance for loan losses		(1,019	)							(947	)
Accrued income and other assets		4,743								4,711

Total assets	$	55,553							$	62,809


Money market and NOW deposits	$	16,355			51		0.31		$	12,965			63		0.49
Savings deposits		1,394			1		0.08			1,339			2		0.11
Customer certificates of deposit		5,875			53		0.90			8,131			183		2.26

Total interest-bearing core deposits		23,624			105		0.44			22,435			248		1.11
Other time deposits		306			9		3.04			4,103			121		2.96
Foreign office time deposits		462			1		0.31			653			2		0.29

Total interest-bearing deposits		24,392			115		0.47			27,191			371		1.37

Short-term borrowings		216			1		0.25			1,000			2		0.24
Medium- and long-term debt		8,684			91		1.05			13,334			165		1.23

Total interest-bearing sources		33,292			207		0.62			41,525			538		1.29

Noninterest-bearing deposits		15,094								12,900
Accrued expenses and other liabilities		1,099								1,285
Total shareholders’ equity		6,068								7,099

Total liabilities and shareholders’ equity	$	55,553							$	62,809


Net interest income/rate spread (FTE)				$	1,651		3.03					$	1,575		2.35


FTE adjustment				$	5							$	8


Impact of net noninterest-bearing sources of funds							0.21								0.37

Net interest margin (as a percentage of average earning assets) (FTE) (a)							3.24	%							2.72	%

(a)

Excess liquidity, represented by average balances deposited with the Federal Reserve Bank, reduced the net interest margin by 20 basis points and 11 basis points in 2010 and 2009, respectively. Excluding excess liquidity, the net interest margin would have been 3.44% in 2010 and 2.83% in 2009. See Reconciliation of Non-GAAP Financial Measures.

-19-

ANALYSIS OF NET INTEREST INCOME (FTE) (unaudited)

Comerica Incorporated and Subsidiaries


	Three Months Ended
	December 31, 2010								September 30, 2010								December 31, 2009
(dollar amounts in millions)	Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate			Average Balance			Interest		Average Rate

Commercial loans	$	21,464		$	206		3.80	%	$	20,967		$	203		3.84	%	$	21,971		$	212		3.84	%
Real estate construction loans		2,371			21		3.50			2,625			21		3.19			3,703			27		2.90
Commercial mortgage loans		9,965			100		3.97			10,257			105		4.06			10,393			110		4.19
Residential mortgage loans		1,600			20		5.11			1,590			21		5.25			1,664			21		5.01
Consumer loans		2,367			21		3.50			2,421			21		3.53			2,517			23		3.59
Lease financing		1,044			11		4.36			1,064			10		3.69			1,181			11		3.80
International loans		1,188			11		3.86			1,178			12		3.89			1,324			12		3.73
Business loan swap income		—			4		—			—			7		—			—			9		—

Total loans		39,999			394		3.92			40,102			400		3.96			42,753			425		3.95

Auction-rate securities available-for-sale		617			2		0.92			673			1		0.99			923			3		1.37
Other investment securities available-for-sale		6,495			48		3.07			6,233			54		3.54			7,664			51		2.67

Total investment securities available-for-sale		7,112			50		2.87			6,906			55		3.27			8,587			54		2.53

Federal funds sold and securities purchased under agreements to resell		8			—		0.32			13			—		0.31			1			—		0.29
Interest-bearing deposits with banks (a)		1,856			1		0.25			3,047			2		0.25			2,480			1		0.25
Other short-term investments		127			1		1.40			121			—		1.53			132			1		1.55

Total earning assets		49,102			446		3.62			50,189			457		3.64			53,953			481		3.55

Cash and due from banks		871								843								831
Allowance for loan losses		(979	)							(1,003	)							(1,048	)
Accrued income and other assets		4,762								4,700								4,660

Total assets	$	53,756							$	54,729							$	58,396


Money market and NOW deposits	$	17,302			13		0.29		$	16,681			13		0.31		$	14,113			14		0.39
Savings deposits		1,385			—		0.09			1,377			1		0.08			1,376			—		0.08
Customer certificates of deposit		5,602			11		0.80			5,808			12		0.87			6,823			25		1.42

Total interest-bearing core deposits		24,289			24		0.39			23,866			26		0.43			22,312			39		0.69
Other time deposits		—			—		—			65			—		0.51			1,493			12		3.22
Foreign office time deposits		460			—		0.45			479			1		0.36			550			—		0.22

Total interest-bearing deposits		24,749			24		0.40			24,410			27		0.43			24,355			51		0.83

Short-term borrowings		174			1		0.27			208			—		0.35			222			—		0.09
Medium- and long-term debt		6,201			15		1.02			8,245			25		1.21			11,140			32		1.12

Total interest-bearing sources		31,124			40		0.52			32,863			52		0.63			35,717			83		0.92

Noninterest-bearing deposits		15,607								14,920								14,430
Accrued expenses and other liabilities		1,155								1,104								1,225
Total shareholders’ equity		5,870								5,842								7,024

Total liabilities and shareholders’ equity	$	53,756							$	54,729							$	58,396


Net interest income/rate spread (FTE)				$	406		3.10					$	405		3.01					$	398		2.63


FTE adjustment				$	1							$	1							$	2


Impact of net noninterest-bearing sources of funds							0.19								0.22								0.31

Net interest margin (as a percentage of average earning assets) (FTE) (a)							3.29	%							3.23	%							2.94	%

(a)

Excess liquidity, represented by average balances deposited with the Federal Reserve Bank, reduced the net interest margin by 12 basis points and 19 basis points in the fourth and third quarters of 2010, respectively, and by 13 basis points in the fourth quarter of 2009. Excluding excess liquidity, the net interest margin would have been 3.41%, 3.42% and 3.07% in each respective period. See Reconciliation of Non-GAAP Financial Measures.

-20-

CONSOLIDATED STATISTICAL DATA (unaudited)

Comerica Incorporated and Subsidiaries


(in millions, except per share data)	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009

Commercial loans:
Floor plan	$	2,017		$	1,693		$	1,586		$	1,351		$	1,367
Other		20,128			19,739			19,565			19,405			20,323

Total commercial loans		22,145			21,432			21,151			20,756			21,690
Real estate construction loans:
Commercial Real Estate business line (a)		1,826			2,023			2,345			2,754			3,002
Other business lines (b)		427			421			429			448			459

Total real estate construction loans		2,253			2,444			2,774			3,202			3,461
Commercial mortgage loans:
Commercial Real Estate business line (a)		1,937			2,091			2,035			1,944			1,889
Other business lines (b)		7,830			8,089			8,283			8,414			8,568

Total commercial mortgage loans		9,767			10,180			10,318			10,358			10,457
Residential mortgage loans		1,619			1,586			1,606			1,631			1,651
Consumer loans:
Home equity		1,704			1,736			1,761			1,782			1,817
Other consumer		607			667			682			690			694

Total consumer loans		2,311			2,403			2,443			2,472			2,511
Lease financing		1,009			1,053			1,084			1,120			1,139
International loans		1,132			1,182			1,226			1,306			1,252

Total loans	$	40,236		$	40,280		$	40,602		$	40,845		$	42,161


Goodwill	$	150		$	150		$	150		$	150		$	150
Loan servicing rights		5			5			6			6			7

Tier 1 common capital ratio (c) (d)		10.08	%		9.96	%		9.81	%		9.57	%		8.18	%
Tier 1 risk-based capital ratio (d)		10.08			9.96			10.64			10.38			12.46
Total risk-based capital ratio (d)		14.47			14.37			15.03			14.91			16.93
Leverage ratio (d)		11.25			10.91			11.36			11.00			13.25
Tangible common equity ratio (c)		10.54			10.39			10.11			9.68			7.99

Book value per common share	$	32.82		$	33.19		$	32.85		$	32.15		$	32.27
Market value per share for the quarter:
High		43.44			40.21			45.85			39.36			32.30
Low		34.43			33.11			35.44			29.68			26.49
Close		42.24			37.15			36.83			38.04			29.57

Quarterly ratios:
Return on average common shareholders’ equity		6.53	%		4.07	%		4.89	%		(5.61	)%		(5.10	)%
Return on average assets		0.71			0.43			0.50			0.36			(0.19	)
Efficiency ratio		70.38			67.88			64.47			66.45			70.68

Number of banking centers		444			441			437			449			447

Number of employees - full time equivalent		9,001			9,075			9,107			9,215			9,330

(a)	Primarily loans to real estate investors and developers.

(b)	Primarily loans secured by owner-occupied real estate.

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

(d)	December 31, 2010 ratios are estimated.

-21-

PARENT COMPANY ONLY BALANCE SHEETS (unaudited)

Comerica Incorporated


(in millions, except share data)	December 31, 2010			September 30, 2010			December 31, 2009

ASSETS
Cash and due from subsidiary bank	$	—		$	10		$	5
Short-term investments with subsidiary bank		327			793			2,150
Other short-term investments		86			82			86
Investment in subsidiaries, principally banks		5,957			6,039			5,710
Premises and equipment		4			3			4
Other assets		181			202			186

Total assets	$	6,555		$	7,129		$	8,141


LIABILITIES AND SHAREHOLDERS’ EQUITY
Medium- and long-term debt	$	635		$	1,155		$	986
Other liabilities		127			117			126

Total liabilities		762			1,272			1,112

Fixed rate cumulative perpetual preferred stock, series F, no par value, $1,000 liquidation value per share:
Authorized - 2,250,000 shares at 12/31/09
Issued - 2,250,000 shares at 12/31/09		—			—			2,151
Common stock - $5 par value:
Authorized - 325,000,000 shares
Issued - 203,878,110 shares at 12/31/10 and 9/30/10, and 178,735,252 shares at 12/31/09		1,019			1,019			894
Capital surplus		1,481			1,473			740
Accumulated other comprehensive loss		(389	)		(238	)		(336	)
Retained earnings		5,247			5,171			5,161
Less cost of common stock in treasury - 27,342,518 shares at 12/31/10, 27,394,831 shares at 9/30/10, and 27,555,623 shares at 12/31/09		(1,565	)		(1,568	)		(1,581	)

Total shareholders’ equity		5,793			5,857			7,029

Total liabilities and shareholders’ equity	$	6,555		$	7,129		$	8,141

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

Comerica Incorporated and Subsidiaries


												Accumulated
				Common Stock								Other									Total
(in millions, except per share data)	Preferred Stock			Shares Outstanding			Amount		Capital Surplus			Comprehensive Loss			Retained Earnings			Treasury Stock			Shareholders’ Equity
BALANCE AT DECEMBER 31, 2008	$	2,129			150.5		$	894	$	722		$	(309	)	$	5,345		$	(1,629	)	$	7,152
Net income		—			—			—		—			—			17			—			17
Other comprehensive loss, net of tax		—			—			—		—			(27	)		—			—			(27	)

Total comprehensive loss																						(10	)
Cash dividends declared on preferred stock		—			—			—		—			—			(113	)		—			(113	)
Cash dividends declared on common stock ($0.20 per share)		—			—			—		—			—			(30	)		—			(30	)
Purchase of common stock		—			(0.1	)		—		—			—			—			(1	)		(1	)
Accretion of discount on preferred stock		22			—			—		—			—			(22	)		—			—
Net issuance of common stock under employee stock plans		—			0.8			—		(15	)		—			(36	)		48			(3	)
Share-based compensation		—			—			—		32			—			—			—			32
Other		—			—			—		1			—			—			1			2

BALANCE AT DECEMBER 31, 2009	$	2,151			151.2		$	894	$	740		$	(336	)	$	5,161		$	(1,581	)	$	7,029
Net income		—			—			—		—			—			277			—			277
Other comprehensive loss, net of tax		—			—			—		—			(53	)		—			—			(53	)

Total comprehensive income																						224
Cash dividends declared on preferred stock		—			—			—		—			—			(38	)		—			(38	)
Cash dividends declared on common stock ($0.25 per share)		—			—			—		—			—			(44	)		—			(44	)
Purchase of common stock		—			(0.1	)		—		—			—			—			(4	)		(4	)
Issuance of common stock		—			25.1			125		724			—			—			—			849
Redemption of preferred stock		(2,250	)		—			—		—			—			—			—			(2,250	)
Redemption discount accretion on preferred stock		94			—			—		—			—			(94	)		—			—
Accretion of discount on preferred stock		5			—			—		—			—			(5	)		—			—
Net issuance of common stock under employee stock plans		—			0.3			—		(11	)		—			(10	)		19			(2	)
Share-based compensation		—			—			—		32			—			—			—			32
Other		—			—			—		(4	)		—			—			1			(3	)

BALANCE AT DECEMBER 31, 2010	$	—			176.5		$	1,019	$	1,481		$	(389	)	$	5,247		$	(1,565	)	$	5,793

-22-

BUSINESS SEGMENT FINANCIAL RESULTS (unaudited)

Comerica Incorporated and Subsidiaries


(dollar amounts in millions) Three Months Ended December 31, 2010	Business Bank			Retail Bank			Wealth & Institutional Management			Finance			Other			Total
Earnings summary:
Net interest income (expense) (FTE)	$	341		$	134		$	42		$	(111	)	$	—		$	406
Provision for loan losses		8			29			23			—			(3	)		57
Noninterest income		81			43			59			23			9			215
Noninterest expenses		158			169			93			12			5			437
Provision (benefit) for income taxes (FTE)		82			(7	)		(5	)		(40	)		1			31

Net income (loss)	$	174		$	(14	)	$	(10	)	$	(60	)	$	6		$	96

Net credit-related charge-offs	$	73		$	22		$	18		$	—		$	—		$	113

Selected average balances:
Assets	$	30,489		$	5,647		$	4,834		$	9,228		$	3,558		$	53,756
Loans		29,947			5,192			4,820			28			12			39,999
Deposits		19,892			17,271			2,730			310			153			40,356
Liabilities		19,905			17,232			2,705			7,077			967			47,886
Attributed equity		2,955			620			418			1,047			830			5,870

Statistical data:
Return on average assets (a)		2.29	%		(0.32	)%		(0.82	)%		N/M			N/M			0.71	%
Return on average attributed equity		23.59			(9.28	)		(9.47	)		N/M			N/M			6.53
Net interest margin (b)		4.51			3.07			3.43			N/M			N/M			3.29
Efficiency ratio		37.25			95.17			92.86			N/M			N/M			70.38

Three Months Ended September 30, 2010	Business Bank			Retail Bank			Wealth & Institutional Management			Finance			Other			Total
Earnings summary:
Net interest income (expense) (FTE)	$	336		$	133		$	41		$	(104	)	$	(1	)	$	405
Provision for loan losses		57			24			37			—			4			122
Noninterest income		69			45			59			12			1			186
Noninterest expenses		155			165			78			2			2			402
Provision (benefit) for income taxes (FTE)		60			(4	)		(5	)		(36	)		(7	)		8

Net income (loss)	$	133		$	(7	)	$	(10	)	$	(58	)	$	1		$	59

Net credit-related charge-offs	$	99		$	19		$	14		$	—		$	—		$	132

Selected average balances:
Assets	$	30,309		$	5,777		$	4,855		$	9,044		$	4,744		$	54,729
Loans		29,940			5,314			4,824			30			(6	)		40,102
Deposits		19,266			16,972			2,606			386			100			39,330
Liabilities		19,230			16,940			2,587			9,224			906			48,887
Attributed equity		2,968			624			412			1,065			773			5,842

Statistical data:
Return on average assets (a)		1.75	%		(0.16	)%		(0.79	)%		N/M			N/M			0.43	%
Return on average attributed equity		17.91			(4.43	)		(9.34	)		N/M			N/M			4.07
Net interest margin (b)		4.45			3.10			3.42			N/M			N/M			3.23
Efficiency ratio		38.16			92.26			78.49			N/M			N/M			67.88

Three Months Ended December 31, 2009	Business Bank			Retail Bank			Wealth & Institutional Management			Finance			Other			Total
Earnings summary:
Net interest income (expense) (FTE)	$	343		$	129		$	42		$	(126	)	$	10		$	398
Provision for loan losses		180			36			19			—			21			256
Noninterest income		77			48			60			26			3			214
Noninterest expenses		165			161			76			2			21			425
Provision (benefit) for income taxes (FTE)		11			(8	)		2			(40	)		(5	)		(40	)

Net income (loss)	$	64		$	(12	)	$	5		$	(62	)	$	(24	)	$	(29	)

Net credit-related charge-offs	$	183		$	30		$	12		$	—		$	—		$	225

Selected average balances:
Assets	$	32,655		$	6,257		$	4,841		$	10,683		$	3,960		$	58,396
Loans		32,289			5,733			4,746			—			(15	)		42,753
Deposits		16,944			17,020			2,849			1,892			80			38,785
Liabilities		16,903			16,978			2,837			13,722			932			51,372
Attributed equity		3,376			606			373			899			1,770			7,024

Statistical data:
Return on average assets (a)		0.79	%		(0.27	)%		0.38	%		N/M			N/M			(0.19	)%
Return on average attributed equity		7.67			(7.76	)		4.91			N/M			N/M			(5.10	)
Net interest margin (b)		4.21			3.02			3.50			N/M			N/M			2.94
Efficiency ratio		39.03			90.98			75.98			N/M			N/M			70.68

(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(b)	Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds.

FTE - Fully Taxable Equivalent

N/M - Not Meaningful

-23-

MARKET SEGMENT FINANCIAL RESULTS (unaudited)

Comerica Incorporated and Subsidiaries


(dollar amounts in millions) Three Months Ended December 31, 2010	Midwest			Western			Texas			Florida			Other Markets			International			Finance & Other Businesses			Total
Earnings summary:
Net interest income (expense) (FTE)	$	202		$	158		$	80		$	11		$	48		$	18		$	(111	)	$	406
Provision for loan losses		46			11			15			4			(19	)		3			(3	)		57
Noninterest income		99			35			27			3			10			9			32			215
Noninterest expenses		201			109			67			9			24			10			17			437
Provision (benefit) for income taxes (FTE)		19			32			9			—			5			5			(39	)		31

Net income (loss)	$	35		$	41		$	16		$	1		$	48		$	9		$	(54	)	$	96

Net credit-related charge-offs	$	52		$	43		$	9		$	7		$	2		$	—		$	—		$	113

Selected average balances:
Assets	$	14,506		$	12,698		$	6,653		$	1,587		$	3,911		$	1,615		$	12,786		$	53,756
Loans		14,219			12,497			6,435			1,612			3,651			1,545			40			39,999
Deposits		17,959			12,448			5,557			375			2,242			1,312			463			40,356
Liabilities		17,956			12,388			5,542			361			2,281			1,314			8,044			47,886
Attributed equity		1,428			1,301			664			165			304			131			1,877			5,870

Statistical data:
Return on average assets (a)		0.72	%		1.21	%		0.96	%		0.13	%		4.93	%		2.24	%		N/M			0.71	%
Return on average attributed equity		9.79			12.69			9.67			1.25			63.46			27.57			N/M			6.53
Net interest margin (b)		4.45			5.01			4.91			2.64			5.32			4.38			N/M			3.29
Efficiency ratio		66.63			56.46			62.62			68.68			40.07			36.08			N/M			70.38

Three Months Ended September 30, 2010	Midwest			Western			Texas			Florida			Other Markets			International			Finance & Other Businesses			Total
Earnings summary:
Net interest income (expense) (FTE)	$	200		$	157		$	78		$	10		$	47		$	18		$	(105	)	$	405
Provision for loan losses		38			51			17			10			4			(2	)		4			122
Noninterest income		99			31			21			4			10			8			13			186
Noninterest expenses		185			108			61			13			23			8			4			402
Provision (benefit) for income taxes (FTE)		27			16			7			(3	)		(3	)		7			(43	)		8

Net income (loss)	$	49		$	13		$	14		$	(6	)	$	33		$	13		$	(57	)	$	59

Net credit-related charge-offs	$	61		$	58		$	5		$	6		$	2		$	—		$	—		$	132

Selected average balances:
Assets	$	14,445		$	12,746		$	6,556		$	1,528		$	4,058		$	1,608		$	13,788		$	54,729
Loans		14,276			12,556			6,357			1,549			3,802			1,538			24			40,102
Deposits		17,777			11,793			5,443			364			2,198			1,269			486			39,330
Liabilities		17,755			11,724			5,434			350			2,225			1,269			10,130			48,887
Attributed equity		1,390			1,304			663			166			340			141			1,838			5,842

Statistical data:
Return on average assets (a)		1.04	%		0.42	%		0.83	%		(1.58	)%		3.20	%		3.25	%		N/M			0.43	%
Return on average attributed equity		14.33			4.16			8.16			(14.56	)		38.18			37.03			N/M			4.07
Net interest margin (b)		4.45			4.96			4.87			2.61			4.99			4.51			N/M			3.23
Efficiency ratio		61.46			57.13			62.01			94.50			41.39			30.65			N/M			67.88

Three Months Ended December 31, 2009	Midwest			Western			Texas			Florida			Other Markets			International			Finance & Other Businesses			Total
Earnings summary:
Net interest income (expense) (FTE)	$	204		$	163		$	78		$	10		$	41		$	18		$	(116	)	$	398
Provision for loan losses		102			79			20			—			15			19			21			256
Noninterest income		106			33			23			3			11			9			29			214
Noninterest expenses		193			110			61			9			21			8			23			425
Provision (benefit) for income taxes (FTE)		3			1			7			1			(7	)		—			(45	)		(40	)

Net income (loss)	$	12		$	6		$	13		$	3		$	23		$	—		$	(86	)	$	(29	)

Net credit-related charge-offs	$	97		$	85		$	13		$	4		$	13		$	13		$	—		$	225

Selected average balances:
Assets	$	15,729		$	13,484		$	7,118		$	1,608		$	4,126		$	1,688		$	14,643		$	58,396
Loans		15,449			13,289			6,934			1,613			3,820			1,663			(15	)		42,753
Deposits		17,186			11,900			4,737			333			1,718			939			1,972			38,785
Liabilities		17,173			11,817			4,723			318			1,759			928			14,654			51,372
Attributed equity		1,515			1,386			691			176			415			172			2,669			7,024

Statistical data:
Return on average assets (a)		0.26	%		0.19	%		0.74	%		0.63	%		2.23	%		0.06	%		N/M			(0.19	)%
Return on average attributed equity		3.21			1.86			7.67			5.72			22.14			0.58			N/M			(5.10	)
Net interest margin (b)		4.70			4.85			4.46			2.57			4.28			4.22			N/M			2.94
Efficiency ratio		62.21			56.33			60.32			69.94			41.02			28.74			N/M			70.68

(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(b)	Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds.

FTE - Fully Taxable Equivalent

N/M - Not Meaningful

-24-


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)		page 1 of 2

Comerica Incorporated and Subsidiaries


										Years Ended December 31,
(dollar amounts in millions)										2010			2009
Net interest income (FTE)										$	1,651		$	1,575
Less:
Interest earned on excess liquidity (a)											8			6

Net interest income (FTE), excluding excess liquidity										$	1,643		$	1,569

Average earning assets										$	51,004		$	58,162
Less:
Average net unrealized gains on investment securities available-for-sale											115			165

Average earning assets for net interest margin (FTE)											50,889			57,997
Less:
Excess liquidity (a)											3,140			2,402

Average earning assets for net interest margin (FTE), excluding excess liquidity										$	47,749		$	55,595

Net interest margin (FTE)											3.24	%		2.72	%
Net interest margin (FTE), excluding excess liquidity											3.44			2.83
Impact of excess liquidity on net interest margin (FTE)											(0.20	)		(0.11	)

	2010												2009
	4th Qtr			3rd Qtr			2nd Qtr			1st Qtr			4th Qtr
Net interest income (FTE)	$	406		$	405		$	424		$	416		$	398
Less:
Interest earned on excess liquidity (a)		1			2			2			3			1

Net interest income (FTE), excluding excess liquidity	$	405		$	403		$	422		$	413		$	397

Average earning assets	$	49,102		$	50,189		$	51,835		$	52,941		$	53,953
Less:
Average net unrealized gains on investment securities available-for-sale		139			180			80			62			107

Average earning assets for net interest margin (FTE)		48,963			50,009			51,755			52,879			53,846
Less:
Excess liquidity (a)		1,793			2,983			3,719			4,092			2,453

Average earning assets for net interest margin (FTE), excluding excess liquidity	$	47,170		$	47,026		$	48,036		$	48,787		$	51,393

Net interest margin (FTE)		3.29	%		3.23	%		3.28	%		3.18	%		2.94	%
Net interest margin (FTE), excluding excess liquidity		3.41			3.42			3.51			3.42			3.07
Impact of excess liquidity on net interest margin (FTE)		(0.12	)		(0.19	)		(0.23	)		(0.24	)		(0.13	)

(a)	Excess liquidity represented by interest earned on and average balances deposited with the Federal Reserve Bank (FRB).

The net interest margin (FTE), excluding excess liquidity, removes interest earned on balances deposited with the FRB from net interest income (FTE) and average balances deposited with the FRB from average earning assets from the numerator and denominator of the net interest margin (FTE) ratio, respectively. Comerica believes this measurement provides meaningful information to investors, regulators, management and others of the impact on net interest income and net interest margin resulting from Comerica's short-term investment in low yielding instruments.

-25-


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited)		page 2 of 2

Comerica Incorporated and Subsidiaries


	December 31, 2010			September 30, 2010			June 30, 2010			March 31, 2010			December 31, 2009
Tier 1 capital (a) (b)	$	6,027		$	5,940		$	6,371		$	6,311		$	7,704
Less:
Fixed rate cumulative perpetual preferred stock		—			—			—			—			2,151
Trust preferred securities		—			—			495			495			495

Tier 1 common capital (b)	$	6,027		$	5,940		$	5,876		$	5,816		$	5,058

Risk-weighted assets (a) (b)	$	59,806		$	59,608		$	59,877		$	60,792		$	61,815
Tier 1 common capital ratio (b)		10.08	%		9.96	%		9.81	%		9.57	%		8.18	%


Total shareholders’ equity	$	5,793		$	5,857		$	5,792		$	5,668		$	7,029
Less:
Fixed rate cumulative perpetual preferred stock		—			—			—			—			2,151
Goodwill		150			150			150			150			150
Other intangible assets		6			6			6			7			8

Tangible common equity	$	5,637		$	5,701		$	5,636		$	5,511		$	4,720

Total assets	$	53,667		$	55,004		$	55,885		$	57,106		$	59,249
Less:
Goodwill		150			150			150			150			150
Other intangible assets		6			6			6			7			8

Tangible assets	$	53,511		$	54,848		$	55,729		$	56,949		$	59,091

Tangible common equity ratio		10.54	%		10.39	%		10.11	%		9.68	%		7.99	%

(a)	Tier 1 capital and risk-weighted assets as defined by regulation.

(b)	December 31, 2010 Tier 1 capital and risk-weighted assets are estimated.

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 tangible common equity removes preferred stock and the effect of intangible assets from capital and the effect of intangible assets from total assets. 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.

-26-

COMERICA INC /NEW/ - FORM 8-K - EX-99.1 - PRESS RELEASE - January 18, 2011

Attached files

COMERICA INC /NEW/ Reports