Delaware ------------ | 1-10706 ---------- | 38-1998421 --------------- |
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification Number) |
ITEMS 2.02 and 7.01 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION AND REGULATION FD DISCLOSURE |
ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS |
Exhibit No. | Description |
99.1 | Updated Press Release dated January 21, 2014 |
99.2 | Selected Updated Earnings Presentation Slides |
December 31, 2013 | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||
(dollar amounts in millions, except per share data) | As Reported | As Revised | As Reported | As Revised | |||||||||||
Noninterest expenses | $ | 429 | $ | 473 | $ | 1,678 | $ | 1,722 | |||||||
Salaries | 203 | 197 | 769 | 763 | |||||||||||
Litigation-related expenses | — | 52 | — | 52 | |||||||||||
Other noninterest expenses | 46 | 44 | 178 | 176 | |||||||||||
Income before income taxes | 196 | 152 | 774 | 730 | |||||||||||
Provision for income taxes | 51 | 35 | 205 | 189 | |||||||||||
Net income | 145 | 117 | 569 | 541 | |||||||||||
Net income attributable to common shares | 143 | 115 | 561 | 533 | |||||||||||
Diluted income per common share | 0.77 | 0.62 | 3.00 | 2.85 | |||||||||||
Total shareholders' equity at period end | 7,181 | 7,153 | |||||||||||||
Estimated Tier 1 common capital ratio (a) | 10.60 | % | 10.56 | % | |||||||||||
Estimated Basel III Tier 1 common capital ratio (a) | 10.3 | % | 10.3 | % | |||||||||||
Tangible common equity ratio (a) | 10.11 | % | 10.07 | % |
a) | See Reconciliation of Non-GAAP Financial Measures. |
Media Contact: | Investor Contacts: |
Wayne J. Mielke | Darlene P. Persons |
(214) 462-4463 | (214) 462-6831 |
Brittany L. Butler | |
(214) 462-6834 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||
Comerica Incorporated and Subsidiaries | ||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||||
(in millions, except per share data) | 2013 | 2013 | 2012 | 2013 | 2012 | |||||||||||
PER COMMON SHARE AND COMMON STOCK DATA | ||||||||||||||||
Diluted net income | $ | 0.62 | $ | 0.78 | $ | 0.68 | $ | 2.85 | $ | 2.67 | ||||||
Cash dividends declared | 0.17 | 0.17 | 0.15 | 0.68 | 0.55 | |||||||||||
Common shareholders' equity (at period end) | 39.23 | 37.94 | 36.87 | |||||||||||||
Tangible common equity (at period end) (a) | 35.65 | 34.38 | 33.38 | |||||||||||||
Average diluted shares (in thousands) | 186,166 | 187,104 | 187,954 | 186,927 | 192,473 | |||||||||||
KEY RATIOS | ||||||||||||||||
Return on average common shareholders' equity | 6.66 | % | 8.50 | % | 7.36 | % | 7.76 | % | 7.43 | % | ||||||
Return on average assets | 0.72 | 0.92 | 0.81 | 0.85 | 0.83 | |||||||||||
Tier 1 common capital ratio (a) (b) | 10.56 | 10.72 | 10.14 | |||||||||||||
Tier 1 risk-based capital ratio (b) | 10.56 | 10.72 | 10.14 | |||||||||||||
Total risk-based capital ratio (b) | 13.00 | 13.42 | 13.15 | |||||||||||||
Leverage ratio (b) | 10.77 | 10.88 | 10.57 | |||||||||||||
Tangible common equity ratio (a) | 10.07 | 9.87 | 9.76 | |||||||||||||
AVERAGE BALANCES | ||||||||||||||||
Commercial loans | $ | 27,683 | $ | 27,759 | $ | 27,462 | $ | 27,971 | $ | 26,224 | ||||||
Real estate construction loans: | ||||||||||||||||
Commercial Real Estate business line (c) | 1,363 | 1,263 | 1,033 | 1,241 | 1,031 | |||||||||||
Other business lines (d) | 289 | 259 | 266 | 245 | 359 | |||||||||||
Total real estate construction loans | 1,652 | 1,522 | 1,299 | 1,486 | 1,390 | |||||||||||
Commercial mortgage loans: | ||||||||||||||||
Commercial Real Estate business line (c) | 1,608 | 1,714 | 1,939 | 1,738 | 2,259 | |||||||||||
Other business lines (d) | 7,106 | 7,229 | 7,580 | 7,322 | 7,583 | |||||||||||
Total commercial mortgage loans | 8,714 | 8,943 | 9,519 | 9,060 | 9,842 | |||||||||||
Lease financing | 838 | 839 | 839 | 847 | 864 | |||||||||||
International loans | 1,303 | 1,252 | 1,314 | 1,275 | 1,272 | |||||||||||
Residential mortgage loans | 1,679 | 1,642 | 1,525 | 1,620 | 1,505 | |||||||||||
Consumer loans | 2,185 | 2,137 | 2,161 | 2,153 | 2,209 | |||||||||||
Total loans | 44,054 | 44,094 | 44,119 | 44,412 | 43,306 | |||||||||||
Earning assets | 59,924 | 58,892 | 59,276 | 59,091 | 57,483 | |||||||||||
Total assets | 64,605 | 63,660 | 64,257 | 63,936 | 62,572 | |||||||||||
Noninterest-bearing deposits | 23,532 | 22,379 | 22,758 | 22,379 | 21,004 | |||||||||||
Interest-bearing deposits | 29,237 | 29,486 | 28,524 | 29,332 | 28,529 | |||||||||||
Total deposits | 52,769 | 51,865 | 51,282 | 51,711 | 49,533 | |||||||||||
Common shareholders' equity | 7,010 | 6,923 | 7,062 | 6,968 | 7,012 | |||||||||||
NET INTEREST INCOME | ||||||||||||||||
Net interest income (fully taxable equivalent basis) | $ | 431 | $ | 413 | $ | 425 | $ | 1,675 | $ | 1,731 | ||||||
Fully taxable equivalent adjustment | 1 | 1 | 1 | 3 | 3 | |||||||||||
Net interest margin (fully taxable equivalent basis) | 2.86 | % | 2.79 | % | 2.87 | % | 2.84 | % | 3.03 | % | ||||||
CREDIT QUALITY | ||||||||||||||||
Nonaccrual loans | $ | 350 | $ | 437 | $ | 519 | ||||||||||
Reduced-rate loans | 24 | 22 | 22 | |||||||||||||
Total nonperforming loans (e) | 374 | 459 | 541 | |||||||||||||
Foreclosed property | 9 | 19 | 54 | |||||||||||||
Total nonperforming assets (e) | 383 | 478 | 595 | |||||||||||||
Loans past due 90 days or more and still accruing | 16 | 25 | 23 | |||||||||||||
Gross loan charge-offs | 41 | 39 | 60 | $ | 153 | $ | 245 | |||||||||
Loan recoveries | 28 | 20 | 23 | 80 | 75 | |||||||||||
Net loan charge-offs | 13 | 19 | 37 | 73 | 170 | |||||||||||
Allowance for loan losses | 598 | 604 | 629 | |||||||||||||
Allowance for credit losses on lending-related commitments | 36 | 34 | 32 | |||||||||||||
Total allowance for credit losses | 634 | 638 | 661 | |||||||||||||
Allowance for loan losses as a percentage of total loans | 1.32 | % | 1.37 | % | 1.37 | % | ||||||||||
Net loan charge-offs as a percentage of average total loans (f) | 0.12 | 0.18 | 0.34 | 0.16 | % | 0.39 | % | |||||||||
Nonperforming assets as a percentage of total loans and foreclosed property (e) | 0.84 | 1.08 | 1.29 | |||||||||||||
Allowance for loan losses as a percentage of total nonperforming loans | 160 | 131 | 116 |
(a) | See Reconciliation of Non-GAAP Financial Measures. |
(b) | December 31, 2013 ratios are estimated. |
(c) | Primarily loans to real estate developers. |
(d) | Primarily loans secured by owner-occupied real estate. |
(e) | Excludes loans acquired with credit-impairment. |
(f) | Lending-related commitment charge-offs were insignificant in all periods presented. |
CONSOLIDATED BALANCE SHEETS | |||||||||
Comerica Incorporated and Subsidiaries | |||||||||
December 31, | September 30, | December 31, | |||||||
(in millions, except share data) | 2013 | 2013 | 2012 | ||||||
(unaudited) | (unaudited) | ||||||||
ASSETS | |||||||||
Cash and due from banks | $ | 1,140 | $ | 1,384 | $ | 1,395 | |||
Federal funds sold | — | — | 100 | ||||||
Interest-bearing deposits with banks | 5,311 | 5,704 | 3,039 | ||||||
Other short-term investments | 112 | 106 | 125 | ||||||
Investment securities available-for-sale | 9,307 | 9,488 | 10,297 | ||||||
Commercial loans | 28,815 | 27,897 | 29,513 | ||||||
Real estate construction loans | 1,762 | 1,552 | 1,240 | ||||||
Commercial mortgage loans | 8,787 | 8,785 | 9,472 | ||||||
Lease financing | 845 | 829 | 859 | ||||||
International loans | 1,327 | 1,286 | 1,293 | ||||||
Residential mortgage loans | 1,697 | 1,650 | 1,527 | ||||||
Consumer loans | 2,237 | 2,152 | 2,153 | ||||||
Total loans | 45,470 | 44,151 | 46,057 | ||||||
Less allowance for loan losses | (598 | ) | (604 | ) | (629 | ) | |||
Net loans | 44,872 | 43,547 | 45,428 | ||||||
Premises and equipment | 594 | 604 | 622 | ||||||
Accrued income and other assets | 3,891 | 3,837 | 4,063 | ||||||
Total assets | $ | 65,227 | $ | 64,670 | $ | 65,069 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Noninterest-bearing deposits | $ | 23,875 | $ | 23,896 | $ | 23,279 | |||
Money market and interest-bearing checking deposits | 22,332 | 21,697 | 21,273 | ||||||
Savings deposits | 1,673 | 1,645 | 1,606 | ||||||
Customer certificates of deposit | 5,063 | 5,180 | 5,531 | ||||||
Foreign office time deposits | 349 | 491 | 502 | ||||||
Total interest-bearing deposits | 29,417 | 29,013 | 28,912 | ||||||
Total deposits | 53,292 | 52,909 | 52,191 | ||||||
Short-term borrowings | 253 | 226 | 110 | ||||||
Accrued expenses and other liabilities | 986 | 1,001 | 1,106 | ||||||
Medium- and long-term debt | 3,543 | 3,565 | 4,720 | ||||||
Total liabilities | 58,074 | 57,701 | 58,127 | ||||||
Common stock - $5 par value: | |||||||||
Authorized - 325,000,000 shares | |||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||
Capital surplus | 2,179 | 2,171 | 2,162 | ||||||
Accumulated other comprehensive loss | (391 | ) | (541 | ) | (413 | ) | |||
Retained earnings | 6,321 | 6,239 | 5,931 | ||||||
Less cost of common stock in treasury - 45,860,786 shares at 12/31/13, 44,483,659 shares at 9/30/13 and 39,889,610 shares at 12/31/12 | (2,097 | ) | (2,041 | ) | (1,879 | ) | |||
Total shareholders' equity | 7,153 | 6,969 | 6,942 | ||||||
Total liabilities and shareholders' equity | $ | 65,227 | $ | 64,670 | $ | 65,069 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||
Three Months Ended | Years Ended | ||||||||||||
December 31, | December 31, | ||||||||||||
(in millions, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||
INTEREST INCOME | |||||||||||||
Interest and fees on loans | $ | 397 | $ | 398 | $ | 1,556 | $ | 1,617 | |||||
Interest on investment securities | 55 | 55 | 214 | 234 | |||||||||
Interest on short-term investments | 4 | 3 | 14 | 12 | |||||||||
Total interest income | 456 | 456 | 1,784 | 1,863 | |||||||||
INTEREST EXPENSE | |||||||||||||
Interest on deposits | 12 | 16 | 55 | 70 | |||||||||
Interest on medium- and long-term debt | 14 | 16 | 57 | 65 | |||||||||
Total interest expense | 26 | 32 | 112 | 135 | |||||||||
Net interest income | 430 | 424 | 1,672 | 1,728 | |||||||||
Provision for credit losses | 9 | 16 | 46 | 79 | |||||||||
Net interest income after provision for credit losses | 421 | 408 | 1,626 | 1,649 | |||||||||
NONINTEREST INCOME | |||||||||||||
Service charges on deposit accounts | 53 | 52 | 214 | 214 | |||||||||
Fiduciary income | 43 | 42 | 171 | 158 | |||||||||
Commercial lending fees | 28 | 25 | 99 | 96 | |||||||||
Card fees | 19 | 17 | 74 | 65 | |||||||||
Letter of credit fees | 15 | 17 | 64 | 71 | |||||||||
Bank-owned life insurance | 9 | 9 | 40 | 39 | |||||||||
Foreign exchange income | 9 | 9 | 36 | 38 | |||||||||
Brokerage fees | 4 | 5 | 17 | 19 | |||||||||
Net securities gains (losses) | — | 1 | (1 | ) | 12 | ||||||||
Other noninterest income | 24 | 27 | 112 | 106 | |||||||||
Total noninterest income | 204 | 204 | 826 | 818 | |||||||||
NONINTEREST EXPENSES | |||||||||||||
Salaries | 197 | 196 | 763 | 778 | |||||||||
Employee benefits | 61 | 59 | 246 | 240 | |||||||||
Total salaries and employee benefits | 258 | 255 | 1,009 | 1,018 | |||||||||
Net occupancy expense | 41 | 42 | 160 | 163 | |||||||||
Equipment expense | 15 | 15 | 60 | 65 | |||||||||
Outside processing fee expense | 30 | 28 | 119 | 107 | |||||||||
Software expense | 24 | 23 | 90 | 90 | |||||||||
Litigation-related expense | 52 | — | 52 | 23 | |||||||||
FDIC insurance expense | 7 | 9 | 33 | 38 | |||||||||
Advertising expense | 3 | 6 | 21 | 27 | |||||||||
Other real estate expense | (1 | ) | 3 | 2 | 9 | ||||||||
Merger and restructuring charges | — | 2 | — | 35 | |||||||||
Other noninterest expenses | 44 | 44 | 176 | 182 | |||||||||
Total noninterest expenses | 473 | 427 | 1,722 | 1,757 | |||||||||
Income before income taxes | 152 | 185 | 730 | 710 | |||||||||
Provision for income taxes | 35 | 55 | 189 | 189 | |||||||||
NET INCOME | 117 | 130 | 541 | 521 | |||||||||
Less income allocated to participating securities | 2 | 2 | 8 | 6 | |||||||||
Net income attributable to common shares | $ | 115 | $ | 128 | $ | 533 | $ | 515 | |||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.64 | $ | 0.68 | $ | 2.92 | $ | 2.68 | |||||
Diluted | 0.62 | 0.68 | 2.85 | 2.67 | |||||||||
Comprehensive income (loss) | 267 | (30 | ) | 563 | 464 | ||||||||
Cash dividends declared on common stock | 31 | 28 | 126 | 106 | |||||||||
Cash dividends declared per common share | 0.17 | 0.15 | 0.68 | 0.55 |
CONSOLIDATED QUARTERLY STATEMENTS OF COMPREHENSIVE INCOME (unaudited) | |||||||||||||||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Fourth Quarter 2013 Compared To: | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Third Quarter 2013 | Fourth Quarter 2012 | |||||||||||||||||||||
(in millions, except per share data) | 2013 | 2013 | 2013 | 2013 | 2012 | Amount | Percent | Amount | Percent | ||||||||||||||||||
INTEREST INCOME | |||||||||||||||||||||||||||
Interest and fees on loans | $ | 397 | $ | 381 | $ | 388 | $ | 390 | $ | 398 | $ | 16 | 4 | % | $ | (1 | ) | — | % | ||||||||
Interest on investment securities | 55 | 54 | 52 | 53 | 55 | 1 | 2 | — | — | ||||||||||||||||||
Interest on short-term investments | 4 | 4 | 3 | 3 | 3 | — | — | 1 | 27 | ||||||||||||||||||
Total interest income | 456 | 439 | 443 | 446 | 456 | 17 | 4 | — | — | ||||||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||||||||||
Interest on deposits | 12 | 13 | 15 | 15 | 16 | (1 | ) | (8 | ) | (4 | ) | (24 | ) | ||||||||||||||
Interest on medium- and long-term debt | 14 | 14 | 14 | 15 | 16 | — | — | (2 | ) | (15 | ) | ||||||||||||||||
Total interest expense | 26 | 27 | 29 | 30 | 32 | (1 | ) | (5 | ) | (6 | ) | (20 | ) | ||||||||||||||
Net interest income | 430 | 412 | 414 | 416 | 424 | 18 | 4 | 6 | 1 | ||||||||||||||||||
Provision for credit losses | 9 | 8 | 13 | 16 | 16 | 1 | 22 | (7 | ) | (42 | ) | ||||||||||||||||
Net interest income after provision for credit losses | 421 | 404 | 401 | 400 | 408 | 17 | 4 | 13 | 3 | ||||||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||||||||||
Service charges on deposit accounts | 53 | 53 | 53 | 55 | 52 | — | — | 1 | 1 | ||||||||||||||||||
Fiduciary income | 43 | 41 | 44 | 43 | 42 | 2 | 2 | 1 | 4 | ||||||||||||||||||
Commercial lending fees | 28 | 28 | 22 | 21 | 25 | — | — | 3 | 6 | ||||||||||||||||||
Card fees | 19 | 20 | 18 | 17 | 17 | (1 | ) | (1 | ) | 2 | 15 | ||||||||||||||||
Letter of credit fees | 15 | 17 | 16 | 16 | 17 | (2 | ) | (9 | ) | (2 | ) | (13 | ) | ||||||||||||||
Bank-owned life insurance | 9 | 12 | 10 | 9 | 9 | (3 | ) | (25 | ) | — | — | ||||||||||||||||
Foreign exchange income | 9 | 9 | 9 | 9 | 9 | — | — | — | — | ||||||||||||||||||
Brokerage fees | 4 | 4 | 4 | 5 | 5 | — | — | (1 | ) | (14 | ) | ||||||||||||||||
Net securities gains (losses) | — | 1 | (2 | ) | — | 1 | (1 | ) | (43 | ) | (1 | ) | (82 | ) | |||||||||||||
Other noninterest income | 24 | 29 | 34 | 25 | 27 | (5 | ) | (16 | ) | (3 | ) | (6 | ) | ||||||||||||||
Total noninterest income | 204 | 214 | 208 | 200 | 204 | (10 | ) | (5 | ) | — | — | ||||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||||||||||
Salaries | 197 | 196 | 182 | 188 | 196 | 1 | — | 1 | 1 | ||||||||||||||||||
Employee benefits | 61 | 59 | 63 | 63 | 59 | 2 | 3 | 2 | 4 | ||||||||||||||||||
Total salaries and employee benefits | 258 | 255 | 245 | 251 | 255 | 3 | 1 | 3 | 1 | ||||||||||||||||||
Net occupancy expense | 41 | 41 | 39 | 39 | 42 | — | — | (1 | ) | (2 | ) | ||||||||||||||||
Equipment expense | 15 | 15 | 15 | 15 | 15 | — | — | — | — | ||||||||||||||||||
Outside processing fee expense | 30 | 31 | 30 | 28 | 28 | (1 | ) | (7 | ) | 2 | 5 | ||||||||||||||||
Software expense | 24 | 22 | 22 | 22 | 23 | 2 | 11 | 1 | 6 | ||||||||||||||||||
Litigation-related expense | 52 | (4 | ) | 1 | 3 | — | 56 | N/M | 52 | N/M | |||||||||||||||||
FDIC insurance expense | 7 | 9 | 8 | 9 | 9 | (2 | ) | (19 | ) | (2 | ) | (22 | ) | ||||||||||||||
Advertising expense | 3 | 6 | 6 | 6 | 6 | (3 | ) | (49 | ) | (3 | ) | (48 | ) | ||||||||||||||
Other real estate expense | (1 | ) | 1 | 1 | 1 | 3 | (2 | ) | N/M | (4 | ) | N/M | |||||||||||||||
Merger and restructuring charges | — | — | — | — | 2 | — | — | (2 | ) | N/M | |||||||||||||||||
Other noninterest expenses | 44 | 41 | 49 | 42 | 44 | 3 | 7 | — | — | ||||||||||||||||||
Total noninterest expenses | 473 | 417 | 416 | 416 | 427 | 56 | 13 | 46 | 11 | ||||||||||||||||||
Income before income taxes | 152 | 201 | 193 | 184 | 185 | (49 | ) | (25 | ) | (33 | ) | (18 | ) | ||||||||||||||
Provision for income taxes | 35 | 54 | 50 | 50 | 55 | (19 | ) | (35 | ) | (20 | ) | (36 | ) | ||||||||||||||
NET INCOME | 117 | 147 | 143 | 134 | 130 | (30 | ) | (21 | ) | (13 | ) | (10 | ) | ||||||||||||||
Less income allocated to participating securities | 2 | 2 | 2 | 2 | 2 | — | — | — | — | ||||||||||||||||||
Net income attributable to common shares | $ | 115 | $ | 145 | $ | 141 | $ | 132 | $ | 128 | $ | (30 | ) | (21 | )% | $ | (13 | ) | (10 | )% | |||||||
Earnings per common share: | |||||||||||||||||||||||||||
Basic | $ | 0.64 | $ | 0.80 | $ | 0.77 | $ | 0.71 | $ | 0.68 | $ | (0.16 | ) | (20 | )% | $ | (0.04 | ) | (6 | )% | |||||||
Diluted | 0.62 | 0.78 | 0.76 | 0.70 | 0.68 | (0.16 | ) | (21 | ) | (0.06 | ) | (9 | ) | ||||||||||||||
Comprehensive income (loss) | 267 | 144 | 15 | 137 | (30 | ) | 123 | 87 | 297 | N/M | |||||||||||||||||
Cash dividends declared on common stock | 31 | 31 | 32 | 32 | 28 | — | — | 3 | 10 | ||||||||||||||||||
Cash dividends declared per common share | 0.17 | 0.17 | 0.17 | 0.17 | 0.15 | — | — | 0.02 | 13 |
CONSOLIDATED STATISTICAL DATA (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(in millions, except per share data) | 2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||
Commercial loans: | |||||||||||||||
Floor plan | $ | 3,504 | $ | 2,869 | $ | 3,241 | $ | 2,963 | $ | 2,939 | |||||
Other | 25,311 | 25,028 | 25,945 | 25,545 | 26,574 | ||||||||||
Total commercial loans | 28,815 | 27,897 | 29,186 | 28,508 | 29,513 | ||||||||||
Real estate construction loans: | |||||||||||||||
Commercial Real Estate business line (a) | 1,447 | 1,283 | 1,223 | 1,185 | 1,049 | ||||||||||
Other business lines (b) | 315 | 269 | 256 | 211 | 191 | ||||||||||
Total real estate construction loans | 1,762 | 1,552 | 1,479 | 1,396 | 1,240 | ||||||||||
Commercial mortgage loans: | |||||||||||||||
Commercial Real Estate business line (a) | 1,678 | 1,592 | 1,743 | 1,812 | 1,873 | ||||||||||
Other business lines (b) | 7,109 | 7,193 | 7,264 | 7,505 | 7,599 | ||||||||||
Total commercial mortgage loans | 8,787 | 8,785 | 9,007 | 9,317 | 9,472 | ||||||||||
Lease financing | 845 | 829 | 843 | 853 | 859 | ||||||||||
International loans | 1,327 | 1,286 | 1,209 | 1,269 | 1,293 | ||||||||||
Residential mortgage loans | 1,697 | 1,650 | 1,611 | 1,568 | 1,527 | ||||||||||
Consumer loans: | |||||||||||||||
Home equity | 1,517 | 1,501 | 1,474 | 1,498 | 1,537 | ||||||||||
Other consumer | 720 | 651 | 650 | 658 | 616 | ||||||||||
Total consumer loans | 2,237 | 2,152 | 2,124 | 2,156 | 2,153 | ||||||||||
Total loans | $ | 45,470 | $ | 44,151 | $ | 45,459 | $ | 45,067 | $ | 46,057 | |||||
Goodwill | $ | 635 | $ | 635 | $ | 635 | $ | 635 | $ | 635 | |||||
Core deposit intangible | 16 | 17 | 18 | 19 | 20 | ||||||||||
Loan servicing rights | 1 | 1 | 2 | 2 | 2 | ||||||||||
Tier 1 common capital ratio (c) (d) | 10.56 | % | 10.72 | % | 10.43 | % | 10.37 | % | 10.14 | % | |||||
Tier 1 risk-based capital ratio (c) | 10.56 | 10.72 | 10.43 | 10.37 | 10.14 | ||||||||||
Total risk-based capital ratio (c) | 13.00 | 13.42 | 13.29 | 13.41 | 13.15 | ||||||||||
Leverage ratio (c) | 10.77 | 10.88 | 10.81 | 10.75 | 10.57 | ||||||||||
Tangible common equity ratio (d) | 10.07 | 9.87 | 10.04 | 9.86 | 9.76 | ||||||||||
Common shareholders' equity per share of common stock | $ | 39.23 | $ | 37.94 | $ | 37.32 | $ | 37.41 | $ | 36.87 | |||||
Tangible common equity per share of common stock (d) | 35.65 | 34.38 | 33.79 | 33.90 | 33.38 | ||||||||||
Market value per share for the quarter: | |||||||||||||||
High | 48.69 | 43.49 | 40.44 | 36.99 | 32.14 | ||||||||||
Low | 38.64 | 38.56 | 33.55 | 30.73 | 27.72 | ||||||||||
Close | 47.54 | 39.31 | 39.83 | 35.95 | 30.34 | ||||||||||
Quarterly ratios: | |||||||||||||||
Return on average common shareholders' equity | 6.66 | % | 8.50 | % | 8.23 | % | 7.68 | % | 7.36 | % | |||||
Return on average assets | 0.72 | 0.92 | 0.90 | 0.84 | 0.81 | ||||||||||
Efficiency ratio (e) | 74.55 | 66.66 | 66.43 | 67.58 | 68.08 | ||||||||||
Number of banking centers | 483 | 484 | 484 | 487 | 487 | ||||||||||
Number of employees - full time equivalent | 8,948 | 8,918 | 8,929 | 9,001 | 9,035 |
(a) | Primarily loans to real estate developers. |
(b) | Primarily loans secured by owner-occupied real estate. |
(c) | December 31, 2013 ratios are estimated. |
(d) | See Reconciliation of Non-GAAP Financial Measures. |
(e) | Noninterest expenses as a percentage of the sum of net interest income (FTE) and noninterest income excluding net securities gains. |
PARENT COMPANY ONLY BALANCE SHEETS (unaudited) | |||||||||
Comerica Incorporated | |||||||||
December 31, | September 30, | December 31, | |||||||
(in millions, except share data) | 2013 | 2013 | 2012 | ||||||
ASSETS | |||||||||
Cash and due from subsidiary bank | $ | 31 | $ | 36 | $ | 2 | |||
Short-term investments with subsidiary bank | 482 | 480 | 431 | ||||||
Other short-term investments | 96 | 92 | 88 | ||||||
Investment in subsidiaries, principally banks | 7,174 | 7,008 | 7,045 | ||||||
Premises and equipment | 4 | 4 | 4 | ||||||
Other assets | 139 | 134 | 150 | ||||||
Total assets | $ | 7,926 | $ | 7,754 | $ | 7,720 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Medium- and long-term debt | $ | 617 | $ | 620 | $ | 629 | |||
Other liabilities | 156 | 165 | 149 | ||||||
Total liabilities | 773 | 785 | 778 | ||||||
Common stock - $5 par value: | |||||||||
Authorized - 325,000,000 shares | |||||||||
Issued - 228,164,824 shares | 1,141 | 1,141 | 1,141 | ||||||
Capital surplus | 2,179 | 2,171 | 2,162 | ||||||
Accumulated other comprehensive loss | (391 | ) | (541 | ) | (413 | ) | |||
Retained earnings | 6,321 | 6,239 | 5,931 | ||||||
Less cost of common stock in treasury - 45,860,786 shares at 12/31/13, 44,483,659 shares at 9/30/13 and 39,889,610 shares at 12/31/12 | (2,097 | ) | (2,041 | ) | (1,879 | ) | |||
Total shareholders' equity | 7,153 | 6,969 | 6,942 | ||||||
Total liabilities and shareholders' equity | $ | 7,926 | $ | 7,754 | $ | 7,720 |
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 share data) | Outstanding | Amount | Surplus | Loss | Earnings | Stock | Equity | |||||||||||||
BALANCE AT DECEMBER 31, 2011 | 197.3 | $ | 1,141 | $ | 2,170 | $ | (356 | ) | $ | 5,546 | $ | (1,633 | ) | $ | 6,868 | |||||
Net income | — | — | — | — | 521 | — | 521 | |||||||||||||
Other comprehensive loss, net of tax | — | — | — | (57 | ) | — | — | (57 | ) | |||||||||||
Cash dividends declared on common stock ($0.55 per share) | — | — | — | — | (106 | ) | — | (106 | ) | |||||||||||
Purchase of common stock | (10.2 | ) | — | — | — | — | (308 | ) | (308 | ) | ||||||||||
Net issuance of common stock under employee stock plans | 1.2 | — | (46 | ) | — | (30 | ) | 63 | (13 | ) | ||||||||||
Share-based compensation | — | — | 37 | — | — | — | 37 | |||||||||||||
Other | — | — | 1 | — | — | (1 | ) | — | ||||||||||||
BALANCE AT DECEMBER 31, 2012 | 188.3 | $ | 1,141 | $ | 2,162 | $ | (413 | ) | $ | 5,931 | $ | (1,879 | ) | $ | 6,942 | |||||
Net income | — | — | — | — | 541 | — | 541 | |||||||||||||
Other comprehensive income, net of tax | — | — | — | 22 | — | — | 22 | |||||||||||||
Cash dividends declared on common stock ($0.68 per share) | — | — | — | — | (126 | ) | — | (126 | ) | |||||||||||
Purchase of common stock | (7.5 | ) | — | — | — | — | (291 | ) | (291 | ) | ||||||||||
Net issuance of common stock under employee stock plans | 1.5 | — | (17 | ) | — | (25 | ) | 72 | 30 | |||||||||||
Share-based compensation | — | — | 35 | — | — | — | 35 | |||||||||||||
Other | — | — | (1 | ) | — | — | 1 | — | ||||||||||||
BALANCE AT DECEMBER 31, 2013 | 182.3 | $ | 1,141 | $ | 2,179 | $ | (391 | ) | $ | 6,321 | $ | (2,097 | ) | $ | 7,153 |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||||
Comerica Incorporated and Subsidiaries | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
(dollar amounts in millions) | 2013 | 2013 | 2013 | 2013 | 2012 | ||||||||||
Tier 1 Common Capital Ratio: | |||||||||||||||
Tier 1 and Tier 1 common capital (a) (b) | $ | 6,895 | $ | 6,862 | $ | 6,800 | $ | 6,748 | $ | 6,705 | |||||
Risk-weighted assets (a) (b) | $ | 65,317 | $ | 64,027 | $ | 65,220 | $ | 65,099 | $ | 66,115 | |||||
Tier 1 and Tier 1 common risk-based capital ratio (b) | 10.56 | % | 10.72 | % | 10.43 | % | 10.37 | % | 10.14 | % | |||||
Basel III Tier 1 Common Capital Ratio: | |||||||||||||||
Tier 1 common capital (b) | $ | 6,895 | $ | 6,862 | $ | 6,800 | $ | 6,748 | $ | 6,705 | |||||
Basel III adjustments (c) | (6 | ) | (4 | ) | — | (1 | ) | (39 | ) | ||||||
Basel III Tier 1 common capital (c) | 6,889 | 6,858 | 6,800 | 6,747 | 6,666 | ||||||||||
Risk-weighted assets (a) (b) | $ | 65,317 | $ | 64,027 | $ | 65,220 | $ | 65,099 | $ | 66,115 | |||||
Basel III adjustments (c) | 1,735 | 1,726 | 2,091 | 1,996 | 1,854 | ||||||||||
Basel III risk-weighted assets (c) | $ | 67,052 | $ | 65,753 | $ | 67,311 | $ | 67,095 | $ | 67,969 | |||||
Tier 1 common capital ratio (b) | 10.6 | % | 10.7 | % | 10.4 | % | 10.4 | % | 10.1 | % | |||||
Basel III Tier 1 common capital ratio (c) | 10.3 | 10.4 | 10.1 | 10.1 | 9.8 | ||||||||||
Tangible Common Equity Ratio: | |||||||||||||||
Common shareholders' equity | $ | 7,153 | $ | 6,969 | $ | 6,911 | $ | 6,988 | $ | 6,942 | |||||
Less: | |||||||||||||||
Goodwill | 635 | 635 | 635 | 635 | 635 | ||||||||||
Other intangible assets | 17 | 18 | 20 | 21 | 22 | ||||||||||
Tangible common equity | $ | 6,501 | $ | 6,316 | $ | 6,256 | $ | 6,332 | $ | 6,285 | |||||
Total assets | $ | 65,227 | $ | 64,670 | $ | 62,947 | $ | 64,885 | $ | 65,069 | |||||
Less: | |||||||||||||||
Goodwill | 635 | 635 | 635 | 635 | 635 | ||||||||||
Other intangible assets | 17 | 18 | 20 | 21 | 22 | ||||||||||
Tangible assets | $ | 64,575 | $ | 64,017 | $ | 62,292 | $ | 64,229 | $ | 64,412 | |||||
Common equity ratio | 10.97 | % | 10.78 | % | 10.98 | % | 10.77 | % | 10.67 | % | |||||
Tangible common equity ratio | 10.07 | 9.87 | 10.04 | 9.86 | 9.76 | ||||||||||
Tangible Common Equity per Share of Common Stock: | |||||||||||||||
Common shareholders' equity | $ | 7,153 | $ | 6,969 | $ | 6,911 | $ | 6,988 | $ | 6,942 | |||||
Tangible common equity | 6,501 | 6,316 | 6,256 | 6,332 | 6,285 | ||||||||||
Shares of common stock outstanding (in millions) | 182 | 184 | 185 | 187 | 188 | ||||||||||
Common shareholders' equity per share of common stock | $ | 39.23 | $ | 37.94 | $ | 37.32 | $ | 37.41 | $ | 36.87 | |||||
Tangible common equity per share of common stock | 35.65 | 34.38 | 33.79 | 33.90 | 33.38 |
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