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COMERICA REPORTS STRONG SECOND QUARTER EARNINGS

    DETROIT, July 16 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported net income of $84 million in the second quarter of 1993 compared to a loss of $12 million in the second quarter of 1992.  On a per share basis, net income increased to $.70 per share for the second quarter of 1993 compared to a loss of $.11 in the comparable 1992 quarter.  Last year's net income included a $92 million after-tax ($.77 per share) restructuring charge associated with the merger with Manufacturers National Corporation.  Excluding the restructuring charge, second quarter net income in 1992 would have been $80 million, or $.66 per share.
    Net income for the first six months of 1993 was $167 million, or $1.39 per share, compared to $66 million, or $.54 per share for the same period in 1992.  Excluding the restructuring charge, earnings for the first six months of last year would have been $158 million or $1.31 per share.
    Net interest income for the second quarter of 1993 increased 1 percent over the similar period in 1992, due primarily to improved interest margins.  Earning assets remained relatively flat in the second quarter of 1993, as the $668 million increase in average loans over the similar period in 1992 was offset by a lower level of temporary investments.
    In comparison with the first quarter of 1993, average loans increased by $454 million, or 2.6 percent, as a result of strong growth in business loans.
    "We are pleased our business loan outstandings continue to expand during a period when loan demand has been weak in many parts of the country," said Eugene A. Miller, chairman and chief executive officer.
    Nonperforming assets decreased to $248 million, or 1.34 percent of loans and other real estate, at June 30, 1993, compared to $276 million, or 1.52 percent, at March 31, 1993, and $266 million, or 1.50 percent, at June 30, 1992.
    The provision for loan losses was $18 million in the second quarter of 1993, a decrease of $13 million from the same period in 1992.  The decrease was due to a lower level of charge-offs as well as the improved quality of the loan portfolio, as seen in the reduced level of nonperforming assets.  Net charge-offs for the quarter were $20 million or 0.45 percent of average total loans, compared with $20 million or 0.44 percent for the first quarter of 1993, and $25 million or 0.57 percent in the second quarter of 1992.
    The allowance for loan losses of $308 million represents 1.67  percent of the period-end loans at June 30, 1993, compared to $310 million or 1.72 percent of period-end loans at March 31, 1993 and $290 million or 1.64 percent of period-end loans at June 30, 1992.
    Noninterest income increased 11 percent in the second quarter of 1993 compared to the second quarter of 1992, as a result of growth in all noninterest income categories.
    Noninterest expenses increased 3 percent over the second quarter of 1992, excluding last year's restructuring charge and the expenses associated with the acquisition of Hibernia National Bank in Texas.
    At June 30, 1993, assets totaled $27.4 billion compared with $27.7 billion a year earlier, and shareholders' equity was $2.2 billion compared to $2.0 billion in 1992.
    On May 28, 1993, Comerica completed the acquisition of the $712 million NorthPark National Corporation in Dallas, Texas, for approximately $79 million of Comerica common stock in a transaction accounted for as a pooling-of-interests.  All financial information has been restated for the transaction.
    Comerica Incorporated is a bank holding company headquartered in Detroit that operates banks in Michigan, Texas, Illinois, California and Florida.
                    CONSOLIDATED STATEMENT OF INCOME
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                                           Three Months Ended
                                                 June 30
                                             1993       1992
    Interest Income
    Interest and fees on loans          $ 348,033  $ 369,620
    Interest on investment
     securities:
    Taxable                                77,140     87,279
    Exempt from federal income
     tax                                   10,324     14,289
    Total interest on investment
     securities                            87,464    101,568
    Trading account interest                   57        486
    Interest on federal funds
     sold and securities purchased
     under agreements to resell             1,132      4,607
    Interest on deposits with
     banks                                  5,764     11,810
    Interest on mortgages held
     for sale                               3,574      4,318
    Total interest income                 446,024    492,409
    Interest Expense
    Interest on deposits                  135,378    188,841
    Interest on short-term
     borrowings:
    Federal funds purchased and
     securities sold under
     agreements to repurchase               8,813     13,438
    Other borrowed funds                    8,983     11,398
    Interest on long-term debt             16,166      5,978
    Net interest rate swap
     income                                (6,900)    (7,023)
    Total interest expense                162,440    212,632
    Net interest income                   283,584    279,777
    Provision for loan losses              18,000     30,778
    Net interest income after
      provision for loan losses           265,584  248,999
    Noninterest Income
    Income from fiduciary
     activities                            32,074     29,116
    Service charges on deposit
     accounts                              30,302     27,399
    Customhouse broker fees                10,075      9,277
    Revolving credit fees                   8,906      8,186
    Securities gains                          407        134
    Other noninterest income               29,744     26,476
    Total noninterest income              111,508    100,588
    Noninterest Expenses
    Salaries and employee benefits         135,380   126,522
    Net occupancy expense                   24,220    20,423
    Equipment expense                       15,890    14,550
    FDIC insurance expense                  10,969    11,082
    Restructuring charge                        -    128,000
    Other noninterest expenses              68,833    67,283
    Total noninterest expenses             255,292   367,860
    Income (loss) before income
     taxes                                 121,800   (18,273)
    Provision for income
     taxes (credit)                         38,073    (5,817)
    Net income (loss)                    $  83,727 $ (12,456)
    Net income applicable to
     common stock                        $  83,727 $ (13,359)
    Net Income (Loss) Per Share:
    Primary                                   $.70     $(.11)
    Fully diluted                             $.70     $(.11)
    Primary average shares                 120,183   119,071
    Cash dividends declared              $  29,675 $  26,688
    Dividends per share                      $.255     $.235
                                            Six Months Ended
                                                 June 30
                                             1993        1992
    Interest Income
    Interest and fees on loans         $  688,677 $  744,783
    Interest on investment
     securities:
    Taxable                               159,315    187,079
    Exempt from federal income
     tax                                   21,930     28,881
    Total interest on investment
        securities                        181,245    215,960
    Trading account interest                  340      1,293
    Interest on federal funds
     sold and securities purchased
     under agreements to resell             2,326      8,273
    Interest on deposits with
     banks                                 13,586     26,749
    Interest on mortgages held
      for sale                              6,997      7,543
    Total interest income                 893,171  1,004,601
    Interest Expense
    Interest on deposits                  275,550    391,949
    Interest on short-term
     borrowings:
    Federal funds purchased and
     securities sold under
     agreements to repurchase              18,025    30,330
    Other borrowed funds                   18,367    26,701
    Interest on long-term debt             29,182    12,035
    Net interest rate swap
     income                               (13,439)  (13,966)
    Total interest expense                327,685   447,049
    Net interest income                   565,486   557,552
    Provision for loan losses              40,000    60,457
    Net interest income after
      provision for loan losses           525,486   497,095
    Noninterest Income
    Income from fiduciary
     activities                            61,864    58,344
    Service charges on deposit
     accounts                              60,795    55,458
    Customhouse broker fees                19,215    18,390
    Revolving credit fees                  16,808    16,207
    Securities gains                        1,041     2,487
    Other noninterest income               61,463    52,653
    Total noninterest income              221,186   203,539
    Noninterest Expenses
    Salaries and employee benefits        270,095   256,489
    Net occupancy expense                  48,579    41,764
    Equipment expense                      30,376    28,931
    FDIC insurance expense                 22,941    22,164
    Restructuring charge                       -    128,000
    Other noninterest expenses            135,736   131,640
    Total noninterest expenses            507,727   608,988
    Income before income taxes            238,945    91,646
    Provision for income taxes             72,093    25,581
    Net income                         $  166,852 $  66,065
    Net income applicable to
     common stock                      $  166,810 $  64,258
    Net Income Per Share:
    Primary                                 $1.39      $.54
    Fully diluted                           $1.39      $.54
    Primary average shares                120,100   118,943
    Cash dividends declared            $   59,352   $ 1,728
    Dividends per share                      $.51      $.47
                      CONSOLIDATED BALANCE SHEETS
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                               June 30     Dec. 31
                                 1993        1992
    Assets
    Cash and due from banks  $ 1,438,991 $ 1,579,742
    Interest-bearing deposits
      with banks                 727,687   1,321,515
    Federal funds sold and
     securities purchased
     under agreements to
     resell                      642,472      86,632
    Trading account securities    10,829    109,379
    Mortgages held for sale      234,062     234,712
    U.S. Government and agency
      securities               3,921,721   3,823,979
    State and municipal
      securities                 626,448     693,658
    Other securities             556,983     645,714
    Total investment
     securities (market
     value of $5,260,045 at
     6/30/93, $5,298,213 at
     12/31/92, and $5,214,401
     at 6/30/92)               5,105,152   5,163,351
    Commercial loans           8,757,235   8,213,241
    International loans          864,338     736,397
    Real estate construction
      loans                      421,068     470,831
    Commercial mortgage loans  2,631,798   2,665,884
    Residential mortgage loans 1,954,293   2,125,891
    Consumer loans             3,667,650   3,836,109
    Lease financing              198,400     166,632
    Total loans               18,494,782  18,214,985
    Less allowance for loan
      losses                    (308,114)   (308,007)
    Net loans                 18,186,668  17,906,978
    Premises and equipment       382,220     374,291
    Customers' liability on
      acceptances outstanding     52,612      25,664
    Accrued interest income and
      other assets               623,310     753,550
    Total assets             $27,404,003 $27,555,814
    Liabilities
    Demand deposits
      (noninterest-bearing)  $ 4,522,975 $ 4,567,593
    Interest-bearing deposits 15,003,855  15,733,980
    Deposits in foreign
     offices                   1,204,285     897,945
    Total deposits            20,731,115  21,199,518
    Federal funds purchased and
     securities sold under
     agreements to repurchase    412,959  1,646,291
    Other borrowed funds       2,725,908   1,575,418
    Acceptances outstanding       52,612      25,664
    Accrued expenses and other
      liabilities                220,776     272,594
    Long-term debt             1,103,274     741,192
    Total liabilities         25,246,644  25,460,677
    Shareholders' Equity
    Redeemable preferred stock-
     $50 stated value:
     Authorized - 10,000,000
     shares
     Issued - 835,688 shares
     at 12/31/92 and 6/30/92         -        37,605
     Common stock - $5 par value:
     Authorized - 250,000,000
     shares
     Issued - 119,946,342 shares
     at 6/30/93, 61,809,908
     shares at 12/31/92 and
     61,134,854 shares
     at 6/30/92                  599,732     309,049
    Capital surplus              540,293     538,267
    Retained earnings          1,050,616   1,239,078
    Less cost of common stock in
     treasury-1,124,664 shares
     at 6/30/93, 898,988 shares
     at 12/31/92 and 825,714
     shares at 6/30/92           (33,282)    (28,862)
    Total shareholders'
      equity                   2,157,359    2,095,137
    Total liabilities and
      shareholders' equity   $27,404,003  $27,555,814
                       CONSOLIDATED BALANCE SHEET
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                             June 30
                                1992
    Assets
    Cash and due from banks  $ 1,521,338
    Interest-bearing deposits
      with banks               1,015,283
    Federal funds sold and
     securities purchased
     under agreements to
     resell                    1,555,806
    Trading account securities    13,729
    Mortgages held for sale      173,954
    U.S. Government and agency
     securities                3,462,430
    State and municipal
     securities                  808,050
    Other securities             751,678
    Total investment
      securities (market
      value of $5,260,045
      at 6/30/93, $5,298,213
      at 12/31/92, and
      $5,214,401 at 6/30/92    5,022,158
    Commercial loans           7,877,062
    International loans          789,675
    Real estate construction
      loans                      473,798
    Commercial mortgage loans  2,376,152
    Residential mortgage loans 2,344,730
    Consumer loans             3,628,323
    Lease financing              190,129
    Total loans               17,679,869
    Less allowance for loan
      losses                    (289,538)
    Net loans                 17,390,331
    Premises and equipment       355,265
    Customers' liability on
      acceptances outstanding     37,737
    Accrued interest income and
      other assets               635,165
        Total assets         $27,720,766
    Liabilities
    Demand deposits
      (noninterest-bearing)  $ 3,938,659
    Interest-bearing deposits 15,827,671
    Deposits in foreign
     offices                   1,692,940
    Total deposits            21,459,270
    Federal funds purchased and
      securities sold under
      agreements to repurchase   861,005
    Other borrowed funds       2,734,045
    Acceptances outstanding       37,737
    Accrued expenses and other
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Date:Jul 16, 1993
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