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COMERICA REPORTS SOLID FIRST QUARTER EARNINGS

    DETROIT, April 20 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA) today reported net income of $81 million in the first quarter of 1993 compared to $74 million in the first quarter of 1992.  On a per share basis, net income increased 8 percent, to $.69 per share for the first quarter of 1993 compared to $.64 in the comparable 1992 quarter.  Return on assets was 1.25 percent for the first quarter and return on equity was 16.02 percent.
    Net interest income for the first quarter increased 1 percent over the year-earlier period.  Net interest margins were higher than the prior year; however, earning assets declined by $481 million.  Modest growth in average loans was offset by run-off of investment securities and interest-bearing deposits with banks.
    Noninterest income increased 8 percent in the first quarter of 1993 compared to the first quarter of 1992, from growth in service charges on deposit accounts and other fee income.  Noninterest expenses in the first quarter of 1993 increased 1 percent over the first quarter of 1992, excluding acquisitions.
    "We continue to make progress in our integration process," said Gerald V. MacDonald, chairman and chief executive officer.  "Computer conversions are moving ahead according to schedule.  We are working to achieve our targeted staff reductions by 1994, and as part of this effort we continue to review our organizational structure, seeking more efficient ways to deliver products and services to our customers."
    At the end of the first quarter, nonperforming assets were $271 million, equal to 1.53 percent of loans and other real estate, compared to $266 million at the end of 1992.  Included in the other real estate balances at March 31, 1993, were $6 million of excess bank premises from the merger which have been closed and are awaiting disposition.
    The allowance for loan losses increased to $301 million, or 1.70 percent of period-end loans at March 31, 1993, compared to $299 million, or 1.67 percent of 1992 year-end loans.  Net charge-offs for the first quarter were 0.45 percent of average total loans compared to 0.61 percent in the prior period.
    At March 31, 1993, assets totaled $26 billion, the same as the year earlier, and common shareholders' equity was $2.1 billion compared to $2.0 billion in 1992.
    On Feb. 25, 1993, Comerica completed the acquisition of the $206 million Sugar Creek National Bank in Sugar Land, Texas, for approximately $27 million of Comerica common stock in a transaction accounted for as a pooling-of-interests.  All financial information has been restated for the pooling with Sugar Creek National Bank, and all per share data have been restated for the two-for-one stock split, paid on Jan. 4, 1993.
    Comerica Incorporated is a bank holding company headquartered in Detroit that operates banks in Michigan, Illinois, Texas, California and Florida.
                    CONSOLIDATED STATEMENT OF INCOME
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                                 Three Months Ended
                                      March 31
                                  1993        1992
    Interest Income
    Interest and fees on
     loans                    $ 333,974  $ 368,813
    Interest on investment
      securities:
       Taxable                   78,009     93,378
       Exempt from federal income
        tax                      11,578     14,555
          Total interest on investment
            securities           89,587    107,933
    Trading account interest        278        757
    Interest on federal funds
      sold and securities purchased
      under agreements to resell  1,027      3,429
    Interest on time deposits
      with banks                  7,821     14,938
    Interest on mortgages held
      for sale                    3,423      3,225
        Total interest income   436,110    499,095
    Interest Expense
    Interest on deposits        136,725    197,435
    Interest on short-term
      borrowings:
      Federal funds purchased and
        securities sold under
        agreements to repurchase  8,738     16,121
      Other borrowed funds        9,332     15,205
    Interest on long-term debt   12,801      5,980
    Net interest rate swap
      income                     (6,539)    (6,943)
        Total interest expense  161,057    227,798
    Net interest income         275,053    271,297
    Provision for loan losses    22,000     29,647
        Net interest income after
          provision for loan
          losses                253,053    241,650
    Noninterest Income
    Income from fiduciary
      activities                 29,356     28,895
    Service charges on deposit
      accounts                   29,769     27,372
    Customhouse broker fees       9,140      9,113
    Revolving credit fees         7,862      7,962
    Securities gains                634      1,367
    Other noninterest income     31,063     25,489
        Total noninterest
        income                  107,824    100,198
    Noninterest Expense
    Salaries and employee
     benefits                   131,156    127,201
    Net occupancy expense        24,030     20,851
    Equipment expense            14,132     14,039
    FDIC insurance expense       11,597     10,728
    Other noninterest expenses   66,134     62,842
        Total noninterest
        expenses                247,049    235,661
    Income before income taxes  113,828    106,187
    Provision for income taxes   33,154     31,091
    Net income                $  80,674  $  75,096
    Net income applicable to
     common stock             $  80,632  $  74,192
    Net income per share:
      Primary                      $.69       $.64
      Fully diluted                $.68       $.64
    Primary average shares      117,336    116,124
    Cash dividends declared  $   29,677  $  25,040
    Dividends per share          $0.255     $0.235
                       CONSOLIDATED BALANCE SHEET
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                                March 31      Dec. 31
                                  1993         1992
    Assets
    Cash and due from banks $ 1,805,183  $ 1,495,464
    Interest-bearing deposits
      with banks                846,286    1,321,415
    Federal funds sold and
      securities purchased
      under agreements to
      resell                     18,682       81,632
    Trading account securities    2,859      109,379
    Mortgages held for sale     171,870      234,712
    U.S. Government and agency
      securities              3,942,202    3,543,805
    State and municipal
      securities                662,717      692,395
    Other securities            585,382      610,412
       Total investment
         securities (market
         value of $5,342,232 at
         3/31/93, $4,980,657 at
         12/31/92, and $5,301,105
         at 3/31/92)          5,190,301    4,846,612
    Commercial loans          8,057,544    8,030,158
    International loans         758,919      736,397
    Real estate construction
      loans                     432,120      470,831
    Commercial mortgage loans 2,553,369    2,572,981
    Residential mortgage
     loans                    2,028,760    2,117,420
    Consumer loans            3,672,817    3,775,892
    Lease financing             196,213      166,632
       Total loans           17,699,742   17,870,311
    Less allowance for loan
      losses                   (301,397)    (299,018)
       Net loans             17,398,345   17,571,293
    Premises and equipment      366,545      368,894
    Customers' liability on
      acceptances outstanding     36,126      23,531
    Accrued income and other
      assets                     590,520     742,232
       Total assets          $26,426,717 $26,795,164
    Liabilities and Shareholders'
     Equity
    Demand deposits
      (noninterest-bearing)  $ 4,187,636 $ 4,402,637
    Interest-bearing deposits 14,855,375  15,285,012
    Deposits in foreign
     offices                   1,243,089     897,945
       Total deposits         20,286,100  20,585,594
    Federal funds purchased and
      securities sold under
      agreements to repurchase 1,975,988   1,567,312
    Other borrowed funds         921,762   1,567,589
    Acceptances outstanding       36,126      23,531
    Accrued expenses and other
      liabilities                242,476     267,695
    Long-term debt               902,693     736,952
       Total liabilities      24,365,145  24,748,673
    Redeemable preferred stock-
      $50 stated value:
      Authorized - 10,000,000
        shares
      Issued - 835,688 shares at
        12/31/92 and 3/31/92           -      37,605
    Common stock - $5 par value:
      Authorized - 250,000,000
        shares
      Issued - 116,470,498 shares
        at 3/31/93, 57,930,368
        shares at 12/31/92 and
        57,117,737 shares
        at 3/31/92               582,352     289,652
    Capital surplus              517,736     518,363
    Retained earnings            963,246   1,205,788
    Less cost of common stock in
      treasury-55,914 shares at
      3/31/93 and 78,000 shares
      at 12/31/92                 (1,762)     (4,917)
       Total shareholders'
        equity                 2,061,572   2,046,491
       Total liabilities and
        shareholders' equity $26,426,717 $26,795,164
                       CONSOLIDATED BALANCE SHEET
                 Comerica Incorporated and Subsidiaries
                 (in thousands, except per share data)
                                 March 31
                                   1992
    Assets
    Cash and due from banks $ 1,582,626
    Interest-bearing deposits
      with banks              1,118,645
    Federal funds sold and
      securities purchased
      under agreements to
      resell                     57,347
    Trading account securities   84,273
    Mortgages held for sale     225,081
    U.S. Government and agency
      securities              3,207,467
    State and municipal
      securities                843,822
    Other securities          1,072,396
       Total investment
         securities (market
         value of $5,342,232
         at 3/31/93, $4,980,657
         at 12/31/92, and
         $5,301,105 at
         3/31/92              5,123,685
    Commercial loans          7,685,938
    International loans         761,047
    Real estate construction
      loans                     513,106
    Commercial mortgage loans 2,267,950
    Residential mortgage
     loans                    2,334,442
    Consumer loans            3,546,208
    Lease financing             197,326
       Total loans           17,306,017
    Less allowance for loan
      losses                   (271,955)
       Net loans             17,034,062
    Premises and equipment      359,758
    Customers' liability on
      acceptances outstanding    28,515
    Accrued income and other
      assets                    649,517
       Total assets         $26,263,509
    Liabilities and Shareholders'
     Equity
    Demand deposits
      (noninterest-bearing) $ 3,596,480
    Interest-bearing
     deposits                15,407,114
    Deposits in foreign
     offices                  1,883,061
       Total deposits        20,886,655
    Federal funds purchased and
      securities sold under
      agreements to
      repurchase              1,903,809
    Other borrowed funds        867,666
    Acceptances outstanding      28,515
    Accrued expenses and other
      liabilities               325,260
    Long-term debt              297,757
       Total liabilities     24,309,662
    Redeemable preferred stock-
      $50 stated value:
      Authorized - 10,000,000
        shares
      Issued - 835,688 shares at
        12/31/92 and 3/31/92     37,605
    Common stock - $5 par value:
      Authorized - 250,000,000
        shares
      Issued - 116,470,498 shares
        at 3/31/93, 57,930,368
        shares at 12/31/92 and
        57,117,737 shares
        at 3/31/92              285,589
    Capital surplus             493,125
    Retained earnings         1,137,528
    Less cost of common stock in
      treasury-55,914 shares at
      3/31/93 and 78,000 shares
      at 12/31/92                     -
       Total shareholders'
        equity                1,953,847
       Total liabilities and
        shareholders'
        equity              $26,263,509
                   CONSOLIDATED FINANCIAL HIGHLIGHTS
                 Comerica Incorporated and Subsidiaries
            (in thousands, except per share data and ratios)
                                 Three Months Ended
                                      March 31
                                  1993        1992
    Per Share and Common Stock
     Data
    Primary net income      $       .69 $       .64
    Fully diluted net income        .68         .64
    Cash dividends declared        .255        .235
    Shareholders' equity
     (at March 31)                17.71       16.77
    Primary average shares      117,336     116,124
    Fully diluted average
     shares                     117,886     116,946
    Fully diluted period end
     shares                     117,949     117,002
    Key Ratios (in percent)
    Return on average total
     equity                       16.01       15.67
    Return on average common
     equity                       16.02       15.79
    Return on average assets       1.25        1.15
    Average common equity as
     a percentage of average
     assets                        7.83        7.19
    Core capital ratio             8.96        8.58
    Total capital ratio           12.43       11.10
    Leverage ratio                 7.53        6.86
    Average Balances
    Total assets            $25,728,282 $26,151,286
    Total earning assets     23,733,764  24,215,200
    Loans                    17,440,500  17,133,235
    Interest-bearing
     deposits                16,194,856  17,015,495
    Noninterest-bearing
     deposits                 3,854,529   3,392,976
    Total interest-bearing
     liabilities             19,595,874  20,448,604
    Common shareholders'
     equity                   2,013,717   1,879,264
    Net Interest Income
    Net interest
     margin (in percent)           4.79        4.65
    Fully taxable equivalent
     adjustment             $     7,878  $    9,990
    Credit Quality
    Nonaccrual loans        $   217,941  $  211,320
    Reduced-rate loans            2,098         150
    Other real estate            51,186      34,175
    Total nonperforming assets  271,225     245,645
    Loans 90 days past due       64,996      66,365
    Gross charge-offs            27,165      29,174
    Recoveries                    7,504       3,270
    Net charge-offs              19,661      25,904
    Allowance for loan losses
     as a percentage of total
     loans (in percent)            1.70        1.57
    Nonperforming assets as a
     percentage of total
     loans and other real
     estate (in percent)           1.53        1.42
    Net loans charged off as
     a percentage of average
     total loans (in percent)       .45         .61
    Allowance for loan losses
     as a percentage of total
     nonperforming assets (in
     percent)                       111         111
    Additional Data
    Goodwill                $   134,243 $   134,306
    Mortgage servicing
     intangible                  27,673      30,379
    Core deposit intangible      31,891      38,834
    Other intangibles            10,136      11,355
    -0-                             4/20/93
    /CONTACT:  (Media) Sharon R. McMurray, 313-222-4881, or Kathleen A. Pitton, 313-222-4916, or (Investors) Leonard B. Carleton, 313-222-4940, or Judith V. Hicks, 313-222-6317, all of Comerica Incorporated/
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Apr 20, 1993
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