CMA Comerica Inc

CONSOLIDATED FINANCIAL HIGHLIGHTS Comerica Incorporated and Subsidiaries Three Months Ended September 30, June 30, September 30, (in millions, except per share data) 2008 2008 2007 PER SHARE AND COMMON STOCK DATA Diluted income from continuing operations $0.18 $0.37 $1.17 Diluted net income 0.19 0.37 1.18 Cash dividends declared 0.66 0.66 0.64 Common shareholders' equity (at period end) 33.89 33.78 33.56 Average diluted shares (in thousands) 150,795 150,819 153,096 KEY RATIOS Return on average common shareholders' equity from continuing operations 2.12% 4.26% 14.27% Return on average common shareholders' equity 2.25 4.25 14.41 Return on average assets from continuing operations 0.17 0.34 1.22 Return on average assets 0.18 0.33 1.23 Average common shareholders' equity as a percentage of average assets 7.82 7.87 8.57 Tier 1 common capital ratio * 6.69 6.79 7.01 Tier 1 risk-based capital ratio * 7.35 7.45 7.68 Total risk-based capital ratio * 11.22 11.21 11.44 Leverage ratio * 8.59 8.53 9.60 AVERAGE BALANCES Commercial loans $28,521 $29,280 $28,052 Real estate construction loans 4,675 4,843 4,607 Commercial mortgage loans 10,511 10,374 9,829 Residential mortgage loans 1,870 1,906 1,865 Consumer loans 2,599 2,549 2,320 Lease financing 1,365 1,352 1,319 International loans 1,967 2,063 1,882 Total loans 51,508 52,367 49,874 Earning assets 59,946 61,088 54,641 Total assets 64,863 65,963 58,546 Interest-bearing deposits 29,267 33,116 30,276 Total interest-bearing liabilities 47,560 48,483 41,406 Noninterest-bearing deposits 10,646 10,648 10,840 Common shareholders' equity 5,075 5,193 5,015 NET INTEREST INCOME Net interest income (fully taxable equivalent basis)** $467 $443 $504 Fully taxable equivalent adjustment 1 1 1 Net interest margin** 3.11% 2.91% 3.66% CREDIT QUALITY Nonaccrual loans $863 $731 $272 Reduced-rate loans - - - Total nonperforming loans 863 731 272 Foreclosed property 18 17 19 Total nonperforming assets 881 748 291 Loans past due 90 days or more and still accruing 97 112 63 Gross loan charge-offs 122 118 47 Loan recoveries 6 6 7 Net loan charge-offs 116 112 40 Lending-related commitment charge-offs - 1 - Total net credit-related charge-offs 116 113 40 Allowance for loan losses 712 663 512 Allowance for credit losses on lending-related commitments 40 31 19 Total allowance for credit losses 752 694 531 Allowance for loan losses as a percentage of total loans 1.38% 1.28% 1.03% Net loan charge-offs as a percentage of average total loans 0.90 0.86 0.32 Net credit-related charge-offs as a percentage of average total loans 0.90 0.86 0.32 Nonperforming assets as a percentage of total loans and foreclosed property 1.71 1.44 0.59 Allowance for loan losses as a percentage of total nonperforming loans 82 91 188 Nine Months Ended September 30, (in millions, except per share data) 2008 2007 PER SHARE AND COMMON STOCK DATA Diluted income from continuing operations $1.28 $3.61 Diluted net income 1.28 3.63 Cash dividends declared 1.98 1.92 Common shareholders' equity (at period end) Average diluted shares (in thousands) 150,783 156,202 KEY RATIOS Return on average common shareholders' equity from continuing operations 4.98% 14.86% Return on average common shareholders' equity 5.00 14.92 Return on average assets from continuing operations 0.40 1.30 Return on average assets 0.40 1.30 Average common shareholders' equity as a percentage of average assets 7.94 8.74 Tier 1 common capital ratio * Tier 1 risk-based capital ratio * Total risk-based capital ratio * Leverage ratio * AVERAGE BALANCES Commercial loans $28,992 $28,046 Real estate construction loans 4,776 4,454 Commercial mortgage loans 10,343 9,713 Residential mortgage loans 1,898 1,788 Consumer loans 2,532 2,351 Lease financing 1,354 1,293 International loans 2,013 1,880 Total loans 51,908 49,525 Earning assets 60,183 54,036 Total assets 64,917 57,923 Interest-bearing deposits 31,931 30,247 Total interest-bearing liabilities 47,612 40,031 Noninterest-bearing deposits 10,638 11,540 Common shareholders' equity 5,153 5,065 NET INTEREST INCOME Net interest income (fully taxable equivalent basis)** $1,387 $1,517 Fully taxable equivalent adjustment 3 3 Net interest margin** 3.08% 3.75% CREDIT QUALITY Nonaccrual loans Reduced-rate loans Total nonperforming loans Foreclosed property Total nonperforming assets Loans past due 90 days or more and still accruing Gross loan charge-offs $356 $124 Loan recoveries 18 38 Net loan charge-offs 338 86 Lending-related commitment charge-offs 1 3 Total net credit-related charge-offs 339 89 Allowance for loan losses Allowance for credit losses on lending-related commitments Total allowance for credit losses Allowance for loan losses as a percentage of total loans Net loan charge-offs as a percentage of average total loans 0.87% 0.23% Net credit-related charge-offs as a percentage of average total loans 0.87 0.24 Nonperforming assets as a percentage of total loans and foreclosed property Allowance for loan losses as a percentage of total nonperforming loans * September 30, 2008 ratios are estimated ** Third quarter 2008 and second quarter 2008 net interest income declined $8 million and $30 million, respectively, due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.17% and 3.10% for the three-month periods ended September 30, 2008, and June 30, 2008, respectively, and 3.16% for the nine-month period ended September 30, 2008. CONSOLIDATED BALANCE SHEETS Comerica Incorporated and Subsidiaries September June December September (in millions, except share data) 30, 2008 30, 2008 31, 2007 30, 2007 ASSETS Cash and due from banks $1,404 $1,698 $1,440 $1,271 Federal funds sold and securities purchased under agreements to resell 3 77 36 129 Other short-term investments 247 249 373 293 Investment securities available-for-sale 8,158 8,243 6,296 4,942 - Commercial loans 28,604 28,763 28,223 27,392 Real estate construction loans 4,565 4,684 4,816 4,759 Commercial mortgage loans 10,588 10,504 10,048 9,994 Residential mortgage loans 1,863 1,879 1,915 1,892 Consumer loans 2,644 2,594 2,464 2,397 Lease financing 1,360 1,351 1,351 1,319 International loans 1,931 1,976 1,926 1,843 Total loans 51,555 51,751 50,743 49,596 Less allowance for loan losses (712) (663) (557) (512) Net loans 50,843 51,088 50,186 49,084 Premises and equipment 668 674 650 635 Customers' liability on acceptances outstanding 21 15 48 39 Accrued income and other assets 3,809 3,959 3,302 3,629 Total assets $65,153 $66,003 $62,331 $60,022 LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest-bearing deposits $12,094 $11,860 $11,920 $11,290 Money market and NOW deposits 13,553 14,506 15,261 14,814 Savings deposits 1,279 1,391 1,325 1,402 Customer certificates of deposit 8,147 7,746 8,357 8,010 Institutional certificates of deposit 3,670 5,940 6,147 5,049 Foreign office time deposits 802 879 1,268 1,355 Total interest-bearing deposits 27,451 30,462 32,358 30,630 Total deposits 39,545 42,322 44,278 41,920 Short-term borrowings 3,625 4,075 2,807 2,813 Acceptances outstanding 21 15 48 39 Accrued expenses and other liabilities 1,486 1,651 1,260 1,276 Medium- and long-term debt 15,376 12,858 8,821 8,906 Total liabilities 60,053 60,921 57,214 54,954 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 178,735,252 shares at 9/30/08, 6/30/08, 12/31/07 and 9/30/07 894 894 894 894 Capital surplus 586 576 564 551 Accumulated other comprehensive loss (129) (207) (177) (238) Retained earnings 5,379 5,451 5,497 5,475 Less cost of common stock in treasury - 28,249,360 shares at 9/30/08, 28,281,490 shares at 6/30/08, 28,747,097 shares at 12/31/07 and 27,725,572 shares at 9/30/07 (1,630) (1,632) (1,661) (1,614) Total shareholders' equity 5,100 5,082 5,117 5,068 Total liabilities and shareholders' equity $65,153 $66,003 $62,331 $60,022 CONSOLIDATED STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Three Months Nine Months Ended Ended September 30, September 30, (in millions, except per share data) 2008 2007 2008 2007 INTEREST INCOME Interest and fees on loans $634 $895 $2,037 $2,628 Interest on investment securities 99 52 288 140 Interest on short-term investments 2 5 10 18 Total interest income 735 952 2,335 2,786 INTEREST EXPENSE Interest on deposits 141 294 576 864 Interest on short-term borrowings 30 29 78 75 Interest on medium- and long-term debt 98 126 297 333 Total interest expense 269 449 951 1,272 Net interest income 466 503 1,384 1,514 Provision for loan losses 165 45 494 104 Net interest income after provision for loan losses 301 458 890 1,410 NONINTEREST INCOME Service charges on deposit accounts 57 55 174 164 Fiduciary income 49 49 152 147 Commercial lending fees 17 19 53 52 Letter of credit fees 19 16 52 47 Foreign exchange income 11 11 33 30 Brokerage fees 10 11 30 32 Card fees 15 14 45 40 Bank-owned life insurance 11 8 29 27 Net securities gains 27 4 63 4 Net gain on sales of businesses - - - 3 Other noninterest income 24 43 88 112 Total noninterest income 240 230 719 658 NONINTEREST EXPENSES Salaries 192 207 594 628 Employee benefits 46 49 141 145 Total salaries and employee benefits 238 256 735 773 Net occupancy expense 40 34 114 102 Equipment expense 15 15 46 45 Outside processing fee expense 26 23 77 67 Software expense 18 16 57 46 Customer services 2 11 11 36 Litigation and operational losses 105 6 100 - Provision for credit losses on lending-related commitments 9 - 20 (4) Other noninterest expenses 61 62 180 176 Total noninterest expenses 514 423 1,340 1,241 Income from continuing operations before income taxes 27 265 269 827 Provision for income taxes - 85 76 262 Income from continuing operations 27 180 193 565 Income (loss) from discontinued operations, net of tax 1 1 - 2 NET INCOME $28 $181 $193 $567 Basic earnings per common share: Income from continuing operations $0.18 $1.18 $1.29 $3.67 Net income 0.19 1.20 1.29 3.69 Diluted earnings per common share: Income from continuing operations 0.18 1.17 1.28 3.61 Net income 0.19 1.18 1.28 3.63 Cash dividends declared on common stock 99 97 298 296 Dividends per common share 0.66 0.64 1.98 1.92 CONSOLIDATED QUARTERLY STATEMENTS OF INCOME Comerica Incorporated and Subsidiaries Third Second First Fourth Third (in millions, except per Quarter Quarter Quarter Quarter Quarter share data) 2008 2008 2008 2007 2007 INTEREST INCOME Interest and fees on loans $634 $633 $770 $873 $895 Interest on investment securities 99 101 88 66 52 Interest on short-term investments 2 3 5 5 5 Total interest income 735 737 863 944 952 INTEREST EXPENSE Interest on deposits 141 182 253 303 294 Interest on short-term borrowings 30 19 29 30 29 Interest on medium- and long-term debt 98 94 105 122 126 Total interest expense 269 295 387 455 449 Net interest income 466 442 476 489 503 Provision for loan losses 165 170 159 108 45 Net interest income after provision for loan losses 301 272 317 381 458 NONINTEREST INCOME Service charges on deposit accounts 57 59 58 57 55 Fiduciary income 49 51 52 52 49 Commercial lending fees 17 20 16 23 19 Letter of credit fees 19 18 15 16 16 Foreign exchange income 11 12 10 10 11 Brokerage fees 10 10 10 11 11 Card fees 15 16 14 14 14 Bank-owned life insurance 11 8 10 9 8 Net securities gains 27 14 22 3 4 Other noninterest income 24 34 30 35 43 Total noninterest income 240 242 237 230 230 NONINTEREST EXPENSES Salaries 192 202 200 216 207 Employee benefits 46 48 47 48 49 Total salaries and employee benefits 238 250 247 264 256 Net occupancy expense 40 36 38 36 34 Equipment expense 15 16 15 15 15 Outside processing fee expense 26 28 23 24 23 Software expense 18 20 19 17 16 Customer services 2 3 6 7 11 Litigation and operational losses (recoveries) 105 3 (8) 18 6 Provision for credit losses on lending-related commitments 9 7 4 3 - Other noninterest expenses 61 60 59 66 62 Total noninterest expenses 514 423 403 450 423 Income from continuing operations before income taxes 27 91 151 161 265 Provision for income taxes - 35 41 44 85 Income from continuing operations 27 56 110 117 180 Income (loss) from discontinued operations, net of tax 1 - (1) 2 1 NET INCOME $28 $56 $109 $119 $181 Basic earnings per common share: Income from continuing operations $0.18 $0.37 $0.74 $0.78 $1.18 Net income 0.19 0.37 0.73 0.80 1.20 Diluted earnings per common share: Income from continuing operations 0.18 0.37 0.73 0.77 1.17 Net income 0.19 0.37 0.73 0.79 1.18 Cash dividends declared on common stock 99 100 99 97 97 Dividends per common share 0.66 0.66 0.66 0.64 0.64 N/M - Not meaningful Third Quarter 2008 Compared To: Second Quarter Third Quarter 2008 2007 (in millions, except per share data) Amount Percent Amount Percent INTEREST INCOME Interest and fees on loans $1 - % $(261) (29)% Interest on investment securities (2) (1) 47 92 Interest on short-term investments (1) (32) (3) (53) Total interest income (2) - (217) (23) INTEREST EXPENSE Interest on deposits (41) (22) (153) (52) Interest on short-term borrowings 11 55 1 1 Interest on medium- and long-term debt 4 4 (28) (22) Total interest expense (26) (9) (180) (40) Net interest income 24 6 (37) (7) Provision for loan losses (5) (3) 120 N/M Net interest income after provision for loan losses 29 11 (157) (34) NONINTEREST INCOME Service charges on deposit accounts (2) (1) 2 4 Fiduciary income (2) (2) - 1 Commercial lending fees (3) (16) (2) (9) Letter of credit fees 1 2 3 18 Foreign exchange income (1) (13) - 2 Brokerage fees - (3) (1) (13) Card fees (1) (9) 1 7 Bank-owned life insurance 3 31 3 30 Net securities gains 13 87 23 N/M Other noninterest income (10) (28) (19) (44) Total noninterest income (2) (1) 10 4 NONINTEREST EXPENSES Salaries (10) (5) (15) (7) Employee benefits (2) (2) (3) (5) Total salaries and employee benefits (12) (5) (18) (7) Net occupancy expense 4 9 6 15 Equipment expense (1) (4) - (2) Outside processing fee expense (2) (8) 3 10 Software expense (2) (5) 2 16 Customer services (1) (1) (9) (74) Litigation and operational losses (recoveries) 102 N/M 99 N/M Provision for credit losses on lending-related commitments 2 38 9 N/M Other noninterest expenses 1 1 (1) (3) Total noninterest expenses 91 22 91 21 Income from continuing operations before income taxes (64) (70) (238) (90) Provision for income taxes (35) N/M (85) N/M Income from continuing operations (29) (51) (153) (85) Income (loss) from discontinued operations, net of tax 1 N/M - N/M NET INCOME $(28) (48)% $(153) (84)% Basic earnings per common share: Income from continuing operations $(0.19) (51)% $(1.00) (85)% Net income (0.18) (49) (1.01) (84) Diluted earnings per common share: Income from continuing operations (0.19) (51) (0.99) (85) Net income (0.18) (49) (0.99) (84) Cash dividends declared on common stock (1) - 2 3 Dividends per common share - - 0.02 3 N/M - Not meaningful ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES Comerica Incorporated and Subsidiaries 2008 2007 (in millions) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr Balance at beginning of period $663 $605 $557 $512 $507 Loan charge-offs: Commercial 48 36 33 27 30 Real estate construction: Commercial Real Estate business line 40 57 52 24 6 Other business lines - - 1 1 2 Total real estate construction 40 57 53 25 8 Commercial mortgage: Commercial Real Estate business line 17 14 20 7 2 Other business lines 11 7 2 9 4 Total commercial mortgage 28 21 22 16 6 Residential mortgage 1 1 - - - Consumer 5 3 7 4 3 Lease financing - - - - - International - - 1 - - Total loan charge-offs 122 118 116 72 47 Recoveries on loans previously charged-off: Commercial 3 5 3 7 5 Real estate construction 1 - 1 - - Commercial mortgage - 1 1 1 1 Residential mortgage - - - - - Consumer 1 - 1 1 1 Lease financing 1 - - - - International - - - - - Total recoveries 6 6 6 9 7 Net loan charge-offs 116 112 110 63 40 Provision for loan losses 165 170 159 108 45 Foreign currency translation adjustment - - (1) - - Balance at end of period $712 $663 $605 $557 $512 Allowance for loan losses as a percentage of total loans 1.38% 1.28% 1.16% 1.10% 1.03% Net loan charge-offs as a percentage of average total loans 0.90 0.86 0.85 0.50 0.32 Net credit-related charge-offs as a percentage of average total loans 0.90 0.86 0.85 0.50 0.32 ANALYSIS OF THE ALLOWANCE FOR CREDIT LOSSES ON LENDING-RELATED COMMITMENTS Comerica Incorporated and Subsidiaries 2008 2007 3rd 2nd 1st 4th 3rd (in millions) Qtr Qtr Qtr Qtr Qtr Balance at beginning of period $31 $25 $21 $19 $19 Less: Charge-offs on lending-related commitments (1) - 1 - 1 - Add: Provision for credit losses on lending-related commitments 9 7 4 3 - Balance at end of period $40 $31 $25 $21 $19 Unfunded lending-related commitments sold $- $2 $3 $22 $- (1) Charge-offs result from the sale of unfunded lending-related commitments. NONPERFORMING ASSETS Comerica Incorporated and Subsidiaries 2008 2007 (in millions) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr SUMMARY OF NONPERFORMING ASSETS AND PAST DUE LOANS Nonaccrual loans: Commercial $206 $155 $87 $75 $64 Real estate construction: Commercial Real Estate business line 386 322 271 161 55 Other business lines 5 4 4 6 4 Total real estate construction 391 326 275 167 59 Commercial mortgage: Commercial Real Estate business line 137 143 105 66 63 Other business lines 114 95 64 75 77 Total commercial mortgage 251 238 169 141 140 Residential mortgage 8 4 1 1 1 Consumer 4 5 3 3 4 Lease financing - - - - - International 3 3 3 4 4 Total nonaccrual loans 863 731 538 391 272 Reduced-rate loans - - - 13 - Total nonperforming loans 863 731 538 404 272 Foreclosed property 18 17 22 19 19 Total nonperforming assets $881 $748 $560 $423 $291 Nonperforming loans as a percentage of total loans 1.67% 1.41% 1.03% 0.80% 0.55% Nonperforming assets as a percentage of total loans and foreclosed property 1.71 1.44 1.07 0.83 0.59 Allowance for loan losses as a percentage of total nonperforming loans 82 91 112 138 188 Loans past due 90 days or more and still accruing $97 $112 $80 $54 $56 ANALYSIS OF NONACCRUAL LOANS Nonaccrual loans at beginning of period $731 $538 $391 $272 $244 Loans transferred to nonaccrual (1) 280 304 281 185 94 Nonaccrual business loan gross charge-offs (2) (116) (113) (108) (68) (44) Loans transferred to accrual status (1) - - - - (5) Nonaccrual business loans sold (3) (19) - (15) - (11) Payments/Other (4) (13) 2 (11) 2 (6) Nonaccrual loans at end of period $863 $731 $538 $391 $272 (1) Based on an analysis of nonaccrual loans with book balances greater than $2 million. (2) Analysis of gross loan charge-offs: Nonaccrual business loans $116 $113 $108 $68 $44 Performing watch list loans - 1 1 - - Consumer and residential mortgage loans 6 4 7 4 3 Total gross loan charge-offs $122 $118 $116 $72 $47 (3) Analysis of loans sold: Nonaccrual business loans $19 $- $15 $- $11 Performing watch list loans 3 7 6 13 - Total loans sold $22 $7 $21 $13 $11 (4) Includes net changes related to nonaccrual loans with balances less than $2 million, other than business loan gross charge-offs and nonaccrual loans sold, and payments on nonaccrual loans with book balances greater than $2 million. ANALYSIS OF NET INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Nine Months Ended September 30, 2008 Average Average (dollar amounts in millions) Balance Interest Rate Commercial loans (1) (2) $28,992 $1,135 5.23% Real estate construction loans 4,776 184 5.16 Commercial mortgage loans 10,343 442 5.71 Residential mortgage loans 1,898 85 5.99 Consumer loans 2,532 100 5.29 Lease financing (3) 1,354 (4) N/M International loans 2,013 79 5.24 Business loan swap income (expense) - 19 - Total loans (2) 51,908 2,040 5.25 Investment securities available-for-sale 7,889 288 4.88 Federal funds sold and securities purchased under agreements to resell 100 2 2.40 Other short-term investments 286 8 3.93 Total earning assets 60,183 2,338 5.19 Cash and due from banks 1,228 Allowance for loan losses (661) Accrued income and other assets 4,167 Total assets $64,917 Money market and NOW deposits (1) $14,774 170 1.54 Savings deposits 1,371 5 0.50 Customer certificates of deposit 8,003 200 3.35 Institutional certificates of deposit 6,719 176 3.49 Foreign office time deposits 1,064 25 3.09 Total interest-bearing deposits 31,931 576 2.41 Short-term borrowings 4,084 78 2.54 Medium- and long-term debt 11,597 297 3.42 Total interest-bearing sources 47,612 951 2.67 Noninterest-bearing deposits (1) 10,638 Accrued expenses and other liabilities 1,514 Shareholders' equity 5,153 Total liabilities and shareholders' equity $64,917 Net interest income/rate spread (FTE) $1,387 2.52 FTE adjustment $3 Impact of net noninterest-bearing sources of funds 0.56 Net interest margin (as a percentage of average earning assets) (FTE) (2) (3) 3.08% N/M - Not meaningful (1) FSD balances included above: Loans (primarily low-rate) $557 $6 1.36 % Interest-bearing deposits 998 16 2.11 Noninterest-bearing deposits 1,752 (2) Impact of FSD loans (primarily low-rate) on the following: Commercial loans (0.07) % Total loans (0.04) Net interest margin (FTE) (assuming loans were funded by noninterest-bearing deposits) (0.02) (3) Year-to-date 2008 net interest income declined $38 million and the net interest margin declined eight basis points due to tax-related non- cash lease income charges. Excluding these charges, the net interest margin would have been 3.16%. September 30, 2007 Average Average (dollar amounts in millions) Balance Interest Rate Commercial loans (1) (2) $28,046 $1,538 7.33% Real estate construction loans 4,454 282 8.47 Commercial mortgage loans 9,713 534 7.35 Residential mortgage loans 1,788 82 6.12 Consumer loans 2,351 125 7.12 Lease financing (3) 1,293 32 3.26 International loans 1,880 99 7.07 Business loan swap income (expense) - (61) - Total loans (2) 49,525 2,631 7.10 Investment securities available-for-sale 4,080 140 4.47 Federal funds sold and securities purchased under agreements to resell 189 8 5.36 Other short-term investments 242 10 5.73 Total earning assets 54,036 2,789 6.89 Cash and due from banks 1,390 Allowance for loan losses (513) Accrued income and other assets 3,010 Total assets $57,923 Money market and NOW deposits (1) $14,858 344 3.09 Savings deposits 1,393 9 0.91 Customer certificates of deposit 7,505 250 4.46 Institutional certificates of deposit 5,490 224 5.45 Foreign office time deposits 1,001 37 4.92 Total interest-bearing deposits 30,247 864 3.82 Short-term borrowings 1,919 75 5.24 Medium- and long-term debt 7,865 333 5.65 Total interest-bearing sources 40,031 1,272 4.25 Noninterest-bearing deposits (1) 11,540 Accrued expenses and other liabilities 1,287 Shareholders' equity 5,065 Total liabilities and shareholders' equity $57,923 Net interest income/rate spread (FTE) $1,517 2.64 FTE adjustment $3 Impact of net noninterest-bearing sources of funds 1.11 Net interest margin (as a percentage of average earning assets) (FTE) (2) (3) 3.75% N/M - Not meaningful (1) FSD balances included above: Loans (primarily low-rate) $1,445 $7 0.63 % Interest-bearing deposits 1,230 36 3.95 Noninterest-bearing deposits 3,097 (2) Impact of FSD loans (primarily low-rate) on the following: Commercial loans (0.36)% Total loans (0.20) Net interest margin (FTE) (assuming loans were funded by noninterest-bearing deposits) (0.09) (3) Year-to-date 2008 net interest income declined $38 million and the net interest margin declined eight basis points due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.16%. ANALYSIS OF NET INTEREST INCOME (FTE) Comerica Incorporated and Subsidiaries Three Months Ended September 30, 2008 Average Average (dollar amounts in millions) Balance Interest Rate Commercial loans (1) (2) $28,521 $347 4.85% Real estate construction loans 4,675 55 4.65 Commercial mortgage loans 10,511 142 5.38 Residential mortgage loans 1,870 28 5.92 Consumer loans 2,599 31 4.83 Lease financing (3) 1,365 4 1.07 International loans 1,967 24 4.85 Business loan swap income (expense) - 4 - Total loans (2) 51,508 635 4.91 Investment securities available-for-sale 8,146 99 4.85 Federal funds sold and securities purchased under agreements to resell 70 - 1.87 Other short-term investments 222 2 3.49 Total earning assets 59,946 736 4.89 Cash and due from banks 1,228 Allowance for loan losses (723) Accrued income and other assets 4,412 Total assets $64,863 Money market and NOW deposits (1) $14,204 45 1.26 Savings deposits 1,350 1 0.42 Customer certificates of deposit 7,690 53 2.73 Institutional certificates of deposit 5,209 37 2.81 Foreign office time deposits 814 5 2.51 Total interest-bearing deposits 29,267 141 1.92 Short-term borrowings 5,413 30 2.20 Medium- and long-term debt 12,880 98 3.02 Total interest-bearing sources 47,560 269 2.25 Noninterest-bearing deposits (1) 10,646 Accrued expenses and other liabilities 1,582 Shareholders' equity 5,075 Total liabilities and shareholders' equity $64,863 Net interest income/rate spread (FTE) $467 2.64 FTE adjustment $1 Impact of net noninterest-bearing sources of funds 0.47 Net interest margin (as a percentage of average earning assets) (FTE) (2) (3) 3.11% N/M - Not meaningful (1) FSD balances included above: Loans (primarily low-rate) $401 $2 1.74% Interest-bearing deposits 907 4 1.65 Noninterest-bearing deposits 1,542 (2) Impact of FSD loans (primarily low-rate) on the following: Commercial loans (0.05)% Total loans (0.02) Net interest margin (FTE) (assuming loans were funded by noninterest- bearing deposits) (0.01) (3) Third quarter 2008 and second quarter 2008 net interest income declined $8 million and $30 million, respectively, and the net interest margin declined six basis points and 19 basis points, respectively, due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.17% in the third quarter 2008 and 3.10% in the second quarter 2008. Three Months Ended June 30, 2008 Average Average (dollar amounts in millions) Balance Interest Rate Commercial loans (1) (2) $29,280 $357 4.90% Real estate construction loans 4,843 59 4.89 Commercial mortgage loans 10,374 141 5.47 Residential mortgage loans 1,906 29 6.03 Consumer loans 2,549 32 5.06 Lease financing (3) 1,352 (19) N/M International loans 2,063 25 4.86 Business loan swap income (expense) - 10 - Total loans (2) 52,367 634 4.87 Investment securities available-for-sale 8,296 101 4.89 Federal funds sold and securities purchased under agreements to resell 150 1 2.17 Other short-term investments 275 2 3.73 Total earning assets 61,088 738 4.86 Cash and due from banks 1,217 Allowance for loan losses (664) Accrued income and other assets 4,322 Total assets $65,963 Money market and NOW deposits (1) $14,784 46 1.26 Savings deposits 1,405 2 0.45 Customer certificates of deposit 8,037 64 3.20 Institutional certificates of deposit 7,707 61 3.21 Foreign office time deposits 1,183 8 2.77 Total interest-bearing deposits 33,116 181 2.20 Short-term borrowings 3,326 19 2.33 Medium- and long-term debt 12,041 95 3.15 Total interest-bearing sources 48,483 295 2.45 Noninterest-bearing deposits (1) 10,648 Accrued expenses and other liabilities 1,639 Shareholders' equity 5,193 Total liabilities and shareholders' equity $65,963 Net interest income/rate spread (FTE) $443 2.41 FTE adjustment $1 Impact of net noninterest-bearing sources of funds 0.50 Net interest margin (as a percentage of average earning assets) (FTE) (2) (3) 2.91% N/M - Not meaningful (1) FSD balances included above: Loans (primarily low-rate) $469 $2 1.42% Interest-bearing deposits 994 4 1.81 Noninterest-bearing deposits 1,823 (2) Impact of FSD loans (primarily low-rate) on the following: Commercial loans (0.06)% Total loans (0.03) Net interest margin (FTE) (assuming loans were funded by noninterest- bearing deposits) (0.01) (3) Third quarter 2008 and second quarter 2008 net interest income declined $8 million and $30 million, respectively, and the net interest margin declined six basis points and 19 basis points, respectively, due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.17% in the third quarter 2008 and 3.10% in the second quarter 2008. Three Months Ended September 30, 2007 Average Average (dollar amounts in millions) Balance Interest Rate Commercial loans (1) (2) $28,052 $520 7.37% Real estate construction loans 4,607 97 8.33 Commercial mortgage loans 9,829 181 7.30 Residential mortgage loans 1,865 29 6.12 Consumer loans 2,320 41 7.06 Lease financing (3) 1,319 11 3.25 International loans 1,882 33 6.98 Business loan swap income (expense) - (16) - Total loans (2) 49,874 896 7.13 Investment securities available-for-sale 4,405 52 4.60 Federal funds sold and securities purchased under agreements to resell 99 1 5.25 Other short-term investments 263 4 5.27 Total earning assets 54,641 953 6.91 Cash and due from banks 1,351 Allowance for loan losses (521) Accrued income and other assets 3,075 Total assets $58,546 Money market and NOW deposits (1) $14,996 119 3.14 Savings deposits 1,380 3 0.97 Customer certificates of deposit 7,702 87 4.48 Institutional certificates of deposit 5,170 72 5.49 Foreign office time deposits 1,028 13 4.96 Total interest-bearing deposits 30,276 294 3.85 Short-term borrowings 2,278 29 5.15 Medium- and long-term debt 8,852 126 5.61 Total interest-bearing sources 41,406 449 4.29 Noninterest-bearing deposits (1) 10,840 Accrued expenses and other liabilities 1,285 Shareholders' equity 5,015 Total liabilities and shareholders' equity $58,546 Net interest income/rate spread (FTE) $504 2.62 FTE adjustment $1 Impact of net noninterest-bearing sources of funds 1.04 Net interest margin (as a percentage of average earning assets) (FTE) (2) (3) 3.66% N/M - Not meaningful (1) FSD balances included above: Loans (primarily low-rate) $1,191 $2 0.71% Interest-bearing deposits 1,214 12 4.06 Noninterest-bearing deposits 2,575 (2) Impact of FSD loans (primarily low-rate) on the following: Commercial loans (0.30)% Total loans (0.16) Net interest margin (FTE) (assuming loans were funded by noninterest- bearing deposits) (0.07) (3) Third quarter 2008 and second quarter 2008 net interest income declined $8 million and $30 million, respectively, and the net interest margin declined six basis points and 19 basis points, respectively, due to tax-related non-cash lease income charges. Excluding these charges, the net interest margin would have been 3.17% in the third quarter 2008 and 3.10% in the second quarter 2008. CONSOLIDATED STATISTICAL DATA Comerica Incorporated and Subsidiaries September 30, June 30, March 31, (in millions, except per share data) 2008 2008 2008 Commercial loans: Floor plan $2,151 $2,645 $2,913 Other 26,453 26,118 26,562 Total commercial loans 28,604 28,763 29,475 Real estate construction loans: Commercial Real Estate business line 3,937 4,013 3,990 Other business lines 628 671 656 Total real estate construction loans 4,565 4,684 4,646 Commercial mortgage loans: Commercial Real Estate business line 1,668 1,620 1,541 Other business lines 8,920 8,884 8,941 Total commercial mortgage loans 10,588 10,504 10,482 Residential mortgage loans 1,863 1,879 1,926 Consumer loans: Home equity 1,693 1,649 1,619 Other consumer 951 945 829 Total consumer loans 2,644 2,594 2,448 Lease financing 1,360 1,351 1,341 International loans 1,931 1,976 2,034 Total loans $51,555 $51,751 $52,352 Goodwill $150 $150 $150 Loan servicing rights 12 12 12 Tier 1 common capital ratio* 6.69% 6.79% 6.75% Tier 1 risk-based capital ratio* 7.35 7.45 7.40 Total risk-based capital ratio * 11.22 11.21 11.06 Leverage ratio* 8.59 8.53 8.82 Book value per share $33.89 $33.78 $34.93 Market value per share for the quarter: High $54.00 $40.62 $45.19 Low 19.31 25.61 34.51 Close 32.79 25.63 35.08 Quarterly ratios: Return on average common shareholders' equity from continuing operations 2.12% 4.26% 8.51% Return on average common shareholders' equity 2.25 4.25 8.42 Return on average assets from continuing operations 0.17 0.34 0.69 Return on average assets 0.18 0.33 0.68 Efficiency ratio 75.53 63.02 58.25 Number of banking centers 424 416 420 Number of employees - full time equivalent 10,347 10,530 10,643 * September 30, 2008 ratios are estimated December 31, September 30, (in millions, except per share data) 2007 2007 Commercial loans: Floor plan $2,878 $2,601 Other 25,345 24,791 Total commercial loans 28,223 27,392 Real estate construction loans: Commercial Real Estate business line 4,089 4,007 Other business lines 727 752 Total real estate construction loans 4,816 4,759 Commercial mortgage loans: Commercial Real Estate business line 1,377 1,467 Other business lines 8,671 8,527 Total commercial mortgage loans 10,048 9,994 Residential mortgage loans 1,915 1,892 Consumer loans: Home equity 1,616 1,582 Other consumer 848 815 Total consumer loans 2,464 2,397 Lease financing 1,351 1,319 International loans 1,926 1,843 Total loans $50,743 $49,596 Goodwill $150 $150 Loan servicing rights 12 13 Tier 1 common capital ratio* 6.85% 7.01% Tier 1 risk-based capital ratio* 7.51 7.68 Total risk-based capital ratio * 11.20 11.44 Leverage ratio* 9.26 9.60 Book value per share $34.12 $33.56 Market value per share for the quarter: High $54.88 $61.34 Low 39.62 50.26 Close 43.53 51.28 Quarterly ratios: Return on average common shareholders' equity from continuing operations 9.20% 14.27% Return on average common shareholders' equity 9.35 14.41 Return on average assets from continuing operations 0.77 1.22 Return on average assets 0.79 1.23 Efficiency ratio 62.76 58.00 Number of banking centers 417 403 Number of employees - full time equivalent 10,782 10,683 * September 30, 2008 ratios are estimated PARENT COMPANY ONLY BALANCE SHEETS Comerica Incorporated September 30, December 31, September 30, (in millions, except share data) 2008 2007 2007 ASSETS Cash and due from subsidiary bank $16 $1 $5 Short-term investments with subsidiary bank 158 224 222 Other short-term investments 99 102 101 Investment in subsidiaries, principally banks 5,849 5,840 5,799 Premises and equipment 5 4 4 Other assets 163 166 152 Total assets $6,290 $6,337 $6,283 LIABILITIES AND SHAREHOLDERS' EQUITY Medium- and long-term debt $969 $968 $956 Other liabilities 221 252 259 Total liabilities 1,190 1,220 1,215 Common stock - $5 par value: Authorized - 325,000,000 shares Issued - 178,735,252 shares at 9/30/08, 12/31/07, and 9/30/07 894 894 894 Capital surplus 586 564 551 Accumulated other comprehensive loss (129) (177) (238) Retained earnings 5,379 5,497 5,475 Less cost of common stock in treasury - 28,249,360 shares at 9/30/08, 28,747,097 shares at 12/31/07 and 27,725,572 shares at 9/30/07 (1,630) (1,661) (1,614) Total shareholders' equity 5,100 5,117 5,068 Total liabilities and shareholders' equity $6,290 $6,337 $6,283 CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY Comerica Incorporated and Subsidiaries Accumulated Common Stock Other Total Compreh- Treas- Share- (in millions, except In Capital ensive Retained ury holders' per share data) Shares Amount Surplus Loss Earnings Stock Equity BALANCE AT JANUARY 1, 2007 157.6 $894 $520 $(324) $5,230 $(1,219) $5,101 Net income - - - - 567 - 567 Other comprehensive income, net of tax - - - 86 - - 86 Total comprehensive income 653 Cash dividends declared on common stock ($1.92 per share) - - - - (296) - (296) Purchase of common stock (9.0) - - - - (533) (533) Net issuance of common stock under employee stock plans 2.4 - (16) - (26) 139 97 Recognition of share- based compensation expense - - 46 - - - 46 Employee deferred compensation obligations - - 1 - - (1) - BALANCE AT SEPTEMBER 30, 2007 151.0 $894 $551 $(238) $5,475 $(1,614) $5,068 BALANCE AT JANUARY 1, 2008 150.0 $894 $564 $(177) $5,497 $(1,661) $5,117 Net income - - - - 193 - 193 Other comprehensive loss, net of tax - - - 48 - - 48 Total comprehensive income 241 Cash dividends declared on common stock ($1.98 per share) - - - - (298) - (298) Purchase of common stock - - - - - (1) (1) Net issuance of common stock under employee stock plans 0.5 - (19) - (13) 32 - Recognition of share- based compensation expense - - 41 - - - 41 BALANCE AT SEPTEMBER 30, 2008 150.5 $894 $586 $(129) $5,379 $(1,630) $5,100 BUSINESS SEGMENT FINANCIAL RESULTS Comerica Incorporated and Subsidiaries Wealth & (dollar amounts in millions) Business Retail Institutional Three Months Ended September 30, 2008 Bank Bank Management Earnings summary: Net interest income (expense) (FTE) $323 $142 $37 Provision for loan losses 135 33 7 Noninterest income 75 80 71 Noninterest expenses 175 161 180 Provision (benefit) for income taxes (FTE) 23 7 (28) Income from discontinued operations, net of tax - - - Net income (loss) $65 $21 $(51) Net credit-related charge-offs $95 $17 $4 Selected average balances: Assets $41,357 $7,046 $4,759 Loans 40,506 6,362 4,624 Deposits 14,933 16,596 2,351 Liabilities 15,633 16,583 2,359 Attributed equity 3,318 656 340 Statistical data: Return on average assets (1) 0.64% 0.48% (4.29)% Return on average attributed equity 7.98 12.53 (60.04) Net interest margin (2) 3.17 3.40 3.17 Efficiency ratio 43.92 82.39 N/M Wealth & Business Retail Institutional Three Months Ended June 30, 2008 Bank Bank Management Earnings summary: Net interest income (expense) (FTE) $296 $146 $37 Provision for loan losses 123 29 5 Noninterest income 92 54 74 Noninterest expenses 185 161 83 Provision (benefit) for income taxes (FTE) 23 3 9 Income from discontinued operations, net of tax - - - Net income (loss) $57 $7 $14 Net credit-related charge-offs $96 $14 $3 Selected average balances: Assets $42,335 $7,100 $4,646 Loans 41,510 6,348 4,502 Deposits 15,384 17,043 2,493 Liabilities 16,156 17,041 2,501 Attributed equity 3,277 657 333 Statistical data: Return on average assets (1) 0.53% 0.15% 1.19% Return on average attributed equity 6.86 4.13 16.57 Net interest margin (2) 2.85 3.44 3.28 Efficiency ratio 49.26 80.61 75.20 Wealth & Business Retail Institutional Three Months Ended September 30, 2007 Bank Bank Management Earnings summary: Net interest income (expense) (FTE) $337 $169 $37 Provision for loan losses 43 7 (5) Noninterest income 82 56 70 Noninterest expenses 177 160 81 Provision (benefit) for income taxes (FTE) 62 19 11 Income from discontinued operations, net of tax - - - Net income (loss) $137 $39 $20 Net credit-related charge-offs $30 $9 $1 Selected average balances: Assets $40,796 $6,854 $4,152 Loans 39,745 6,111 3,990 Deposits 15,947 17,145 2,378 Liabilities 16,783 17,159 2,385 Attributed equity 2,903 848 338 Statistical data: Return on average assets (1) 1.35% 0.86% 1.90% Return on average attributed equity 18.96 18.23 23.42 Net interest margin (2) 3.36 3.91 3.59 Efficiency ratio 42.90 70.90 75.92 (1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (2) 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 BUSINESS SEGMENT FINANCIAL RESULTS Comerica Incorporated and Subsidiaries (dollar amounts in millions) Three Months Ended September 30, 2008 Finance Other Total Earnings summary: Net interest income (expense) (FTE) $(26) $(9) $467 Provision for loan losses - (10) 165 Noninterest income 20 (6) 240 Noninterest expenses 3 (5) 514 Provision (benefit) for income taxes (FTE) (7) 6 1 Income from discontinued operations, net of tax - 1 1 Net income (loss) $(2) $(5) $28 Net credit-related charge-offs $- $- $116 Selected average balances: Assets $10,096 $1,605 $64,863 Loans (3) 19 51,508 Deposits 5,588 445 39,913 Liabilities 24,359 854 59,788 Attributed equity 878 (117) 5,075 Statistical data: Return on average assets (1) N/M N/M 0.18% Return on average attributed equity N/M N/M 2.25 Net interest margin (2) N/M N/M 3.11 Efficiency ratio N/M N/M 75.53 Three Months Ended June 30, 2008 Finance Other Total Earnings summary: Net interest income (expense) (FTE) $(28) $(8) $443 Provision for loan losses - 13 170 Noninterest income 18 4 242 Noninterest expenses 2 (8) 423 Provision (benefit) for income taxes (FTE) (7) 8 36 Income from discontinued operations, net of tax - - - Net income (loss) $(5) $(17) $56 Net credit-related charge-offs $- $- $113 Selected average balances: Assets $10,333 $1,549 $65,963 Loans 5 2 52,367 Deposits 8,409 435 43,764 Liabilities 24,334 738 60,770 Attributed equity 949 (23) 5,193 Statistical data: Return on average assets (1) N/M N/M 0.33% Return on average attributed equity N/M N/M 4.25 Net interest margin (2) N/M N/M 2.91 Efficiency ratio N/M N/M 63.02 Three Months Ended September 30, 2007 Finance Other Total Earnings summary: Net interest income (expense) (FTE) $(32) $(7) $504 Provision for loan losses - - 45 Noninterest income 17 5 230 Noninterest expenses 2 3 423 Provision (benefit) for income taxes (FTE) (9) 3 86 Income from discontinued operations, net of tax - 1 1 Net income (loss) $(8) $(7) $181 Net credit-related charge-offs $- $- $40 Selected average balances: Assets $5,564 $1,180 $58,546 Loans 2 26 49,874 Deposits 5,748 (102) 41,116 Liabilities 16,970 234 53,531 Attributed equity 614 312 5,015 Statistical data: Return on average assets (1) N/M N/M 1.23% Return on average attributed equity N/M N/M 14.41 Net interest margin (2) N/M N/M 3.66 Efficiency ratio N/M N/M 58.00 (1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (2) 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 MARKET SEGMENT FINANCIAL RESULTS Comerica Incorporated and Subsidiaries (dollar amounts in millions) Three Months Ended September 30, 2008 Midwest Western Texas Florida Earnings summary: Net interest income (expense) (FTE) $197 $169 $73 $12 Provision for loan losses 52 82 18 7 Noninterest income 142 38 27 4 Noninterest expenses 205 112 61 10 Provision (benefit) for income taxes (FTE) 31 4 8 - Income from discontinued operations, net of tax - - - - Net income (loss) $51 $9 $13 $(1) Net credit-related charge-offs $44 $51 $9 $3 Selected average balances: Assets $19,820 $16,627 $7,945 $1,900 Loans 19,125 16,381 7,691 1,900 Deposits 15,926 11,729 3,956 262 Liabilities 16,541 11,698 3,973 258 Attributed equity 1,631 1,367 623 131 Statistical data: Return on average assets (1) 1.05% 0.21% 0.65% (0.25)% Return on average attributed equity 12.70 2.61 8.22 (3.62) Net interest margin (2) 4.08 4.09 3.75 2.53 Efficiency ratio 64.48 54.68 63.16 67.40 Three Months Ended June 30, 2008 Midwest Western Texas Florida Earnings summary: Net interest income (expense) (FTE) $172 $171 $74 $12 Provision for loan losses 24 113 6 7 Noninterest income 136 34 22 4 Noninterest expenses 205 115 63 11 Provision (benefit) for income taxes (FTE) 27 (3) 10 (1) Income from discontinued operations, net of tax - - - - Net income (loss) $52 $(20) $17 $(1) Net credit-related charge-offs $42 $59 $3 $8 Selected average balances: Assets $19,891 $17,241 $8,063 $1,854 Loans 19,255 16,918 7,795 1,851 Deposits 16,056 12,345 4,061 306 Liabilities 16,750 12,326 4,076 302 Attributed equity 1,649 1,336 614 118 Statistical data: Return on average assets (1) 1.05 % (0.46)% 0.81 % (0.37)% Return on average attributed equity 12.67 (5.97) 10.66 (5.84) Net interest margin (2) 3.58 4.04 3.78 2.50 Efficiency ratio 69.48 56.09 65.55 72.21 Three Months Ended September 30, 2007 Midwest Western Texas Florida Earnings summary: Net interest income (expense) (FTE) $222 $185 $73 $12 Provision for loan losses 15 23 (2) 3 Noninterest income 119 36 24 4 Noninterest expenses 206 110 58 10 Provision (benefit) for income taxes (FTE) 41 33 14 1 Income from discontinued operations, net of tax - - - - Net income (loss) $79 $55 $27 $2 Net credit-related charge-offs (recoveries) $23 $7 $1 $1 Selected average balances: Assets $19,131 $17,095 $7,172 $1,706 Loans 18,526 16,543 6,902 1,692 Deposits 15,636 13,009 3,920 271 Liabilities 16,307 13,045 3,937 273 Attributed equity 1,700 1,201 597 97 Statistical data: Return on average assets (1) 1.64 % 1.29 % 1.51 % 0.56 % Return on average attributed equity 18.50 18.34 18.09 9.78 Net interest margin (2) 4.73 4.43 4.17 2.94 Efficiency ratio 60.88 49.96 59.83 59.15 (1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (2) 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 MARKET SEGMENT FINANCIAL RESULTS Comerica Incorporated and Subsidiaries (dollar amounts in millions) Finance Other Internat- & Other Three Months Ended September 30, 2008 Markets ional Businesses Total Earnings summary: Net interest income (expense) (FTE) $36 $15 $(35) $467 Provision for loan losses 15 1 (10) 165 Noninterest income 7 8 14 240 Noninterest expenses 117 11 (2) 514 Provision (benefit) for income taxes (FTE) (45) 4 (1) 1 Income from discontinued operations, net of tax - - 1 1 Net income (loss) $(44) $7 $(7) $28 Net credit-related charge-offs $9 $- $- $116 Selected average balances: Assets $4,493 $2,377 $11,701 $64,863 Loans 4,134 2,261 16 51,508 Deposits 1,231 776 6,033 39,913 Liabilities 1,330 775 25,213 59,788 Attributed equity 406 156 761 5,075 Statistical data: Return on average assets (1) (3.91)% 1.24 % N/M 0.18% Return on average attributed equity (43.35) 18.83 N/M 2.25 Net interest margin (2) 3.49 2.64 N/M 3.11 Efficiency ratio N/M 44.21 N/M 75.53 Finance Three Months Ended June 30, 2008 Other Internat- & Other Markets ional Businesses Total Earnings summary: Net interest income (expense) (FTE) $36 $14 $(36) $443 Provision for loan losses 7 - 13 170 Noninterest income 16 8 22 242 Noninterest expenses 25 10 (6) 423 Provision (benefit) for income taxes (FTE) (3) 5 1 36 Income from discontinued operations, net of tax - - - - Net income (loss) $23 $7 $(22) $56 Net credit-related charge-offs $1 $- $- $113 Selected average balances: Assets $4,589 $2,443 $11,882 $65,963 Loans 4,212 2,329 7 52,367 Deposits 1,375 777 8,844 43,764 Liabilities 1,466 778 25,072 60,770 Attributed equity 389 161 926 5,193 Statistical data: Return on average assets (1) 1.96% 1.21% N/M 0.33% Return on average attributed equity 23.17 18.31 N/M 4.25 Net interest margin (2) 3.41 2.42 N/M 2.91 Efficiency ratio 48.61 45.61 N/M 63.02 Finance Three Months Ended September 30, 2007 Other Internat- & Other Markets ional Businesses Total Earnings summary: Net interest income (expense) (FTE) $34 $17 $(39) $504 Provision for loan losses 12 (6) - 45 Noninterest income 14 11 22 230 Noninterest expenses 23 11 5 423 Provision (benefit) for income taxes (FTE) (5) 8 (6) 86 Income from discontinued operations, net of tax - - 1 1 Net income (loss) $18 $15 $(15) $181 Net credit-related charge-offs (recoveries) $9 $(1) $- $40 Selected average balances: Assets $4,428 $2,270 $6,744 $58,546 Loans 4,047 2,136 28 49,874 Deposits 1,475 1,159 5,646 41,116 Liabilities 1,591 1,174 17,204 53,531 Attributed equity 343 151 926 5,015 Statistical data: Return on average assets (1) 1.60% 2.68% N/M 1.23% Return on average attributed equity 20.67 40.33 N/M 14.41 Net interest margin (2) 3.35 3.05 N/M 3.66 Efficiency ratio 48.71 42.95 N/M 58.00 (1) Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity. (2) 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 http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO http://photoarchive.ap.org/ DATASOURCE: Comerica Incorporated Web site: http://www.comerica.com/

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