Printer Friendly

COMERICA REPORTS THIRD QUARTER EARNINGS

 COMERICA REPORTS THIRD QUARTER EARNINGS
 DETROIT, Oct. 15 /PRNewswire/ -- Comerica Incorporated (NYSE: CMA)


today reported net income of $83 million in the third quarter of 1992, compared to $69 million in the third quarter of 1991. On a per share basis, net income increased 19 percent to $1.42 per share for the third quarter of 1992, compared to $1.19 in the third quarter of 1991. "I am pleased with these financial results. They are in keeping with our expectations and indicative of the progress of our merger and the cost savings associated with it," said Gerald V. MacDonald, chairman.
 Net income for the first nine months of 1992 was $142 million, or $2.41 per share, compared to $199 million, or $3.60 per share, for the same period in 1991. The 1992 net income includes an after-tax $92 million ($1.59 per share) restructuring charge associated with Comerica's merger with Manufacturers National Corporation in the second quarter. Excluding the restructuring charge, earnings per share were 11 percent higher for the first nine months of 1992 compared to 1991.
 Net interest income for the third quarter increased 6 percent over the year-earlier period, primarily due to improved interest margins. Noninterest income increased 9 percent in third quarter 1992 compared to third quarter 1991, and all major components contributed in this increase. Noninterest expenses were held to the same level as the prior year.
 Net charge-offs for the quarter were $23 million, compared with $25 million for both the second quarter of 1992 and the third quarter of 1991. The provision for loan losses was $27 million in the third quarter of 1992, a $2 million increase from the similar period in 1991.
 Nonperforming assets were $241 million, 1.40 percent of loans and other real estate, at September 30, 1992, compared to $238 million at December 31, 1991, and $247 million at September 30, 1991. The allowance for loan losses of $281 million represents 1.64 percent of period-end loans at September 30, 1992, compared to $267 million, or 1.58 percent of period-end loans, at December 31, 1991.
 At September 30, 1992, assets totaled $26.7 billion compared with $26.8 billion one year earlier, and common shareholders' equity was $1.96 billion at September 30, 1992, compared to $1.83 billion in 1991.
 Comerica merged with Manufacturers National Corporation on June 18, 1992. The merger was accounted for as a pooling-of-interests combination and, accordingly, the historical data presented has been restated to reflect this combination.
 CONSOLIDATED STATEMENT OF INCOME
 COMERICA INCORPORATED AND SUBSIDIARIES
 (in thousands, except per share data)
 Three Months Ended
 September 30
 1992 1991
 Interest Income
 Interest and fees on loans $ 345,794 $ 399,205
 Interest on investment
 securities:
 Taxable 80,116 99,834
 Exempt from federal income
 taxes 12,905 15,053
 Total interest on investment
 securities 93,021 114,887
 Trading account interest 225 748
 Interest on federal funds
 sold and securities purchased
 under agreements to resell 4,043 3,356
 Interest on time deposits
 with banks 8,899 22,932
 Interest on mortgages held
 for sale 2,986 1,961
 Total interest income 454,968 543,089
 Interest Expense
 Interest on deposits 160,860 245,948
 Interest on short-term
 borrowings:
 Federal funds borrowed and
 securities sold under
 agreements to repurchase 10,223 20,143
 Other borrowed funds 12,112 17,848
 Interest on long-term debt 6,045 6,792
 Net interest rate swap
 (income) (5,730) (4,115)
 Total interest expense 183,510 286,616
 Net interest income 271,458 256,473
 Provision for loan losses 27,000 25,181
 Net interest income after
 provision for loan losses 244,458 231,292
 Noninterest Income
 Income from fiduciary
 activities 26,623 24,204
 Service charges on deposit
 accounts 27,903 25,412
 Customhouse broker fees 9,891 8,922
 Revolving credit fees 8,339 8,257
 Securities gains 376 700
 Other noninterest income 28,299 25,537
 Total noninterest income 101,431 93,032
 Noninterest Expense
 Salaries and employee benefits 126,090 123,555
 Net occupancy expense 20,579 19,792
 Equipment expense 12,973 13,241
 FDIC insurance expense 10,519 10,172
 Restructuring charge - -
 Other noninterest expense 58,760 62,406
 Total noninterest expense 228,921 229,166
 Income before income taxes 116,968 95,158
 Provision for income taxes 33,902 26,180
 Net income $ 83,066 $ 68,978
 Net income applicable to
 common stock $ 82,163 $ 68,074
 Earnings Per Common Share
 Net income:
 Primary $1.42 $1.19
 Fully diluted $1.41 $1.18
 Primary average shares 57,851 57,075
 Cash dividends declared $ 26,744 $ 24,904
 Dividends per share $.47 $.47
 CONSOLIDATED STATEMENT OF INCOME
 CONTINUED
 Year to Date
 September 30
 1992 1991
 Interest Income
 Interest and fees on loans $1,074,487 $1,208,212
 Interest on investment
 securities:
 Taxable 251,822 311,635
 Exempt from federal income
 taxes 41,426 46,197
 Total interest on investment
 securities 293,248 357,832
 Trading account interest 1,416 2,669
 Interest on federal funds
 sold and securities purchased
 under agreements to resell 11,647 12,811
 Interest on time deposits
 with banks 35,332 74,709
 Interest on mortgages held
 for sale 10,529 5,674
 Total interest income 1,426,659 1,661,907
 Interest Expense
 Interest on deposits 538,978 764,932
 Interest on short-term
 borrowings:
 Federal funds borrowed and
 securities sold under
 agreements to repurchase 39,103 64,585
 Other borrowed funds 38,634 64,577
 Interest on long-term debt 17,926 21,014
 Net interest rate swap
 (income) (19,696) (9,645)
 Total interest expense 614,945 905,463
 Net interest income 811,714 756,444
 Provision for loan losses 87,350 74,039
 Net interest income after
 provision for loan losses 724,364 682,405
 Noninterest Income
 Income from fiduciary
 activities 83,384 79,101
 Service charges on deposit
 accounts 81,426 73,375
 Customhouse broker fees 28,281 26,062
 Revolving credit fees 24,439 23,122
 Securities gains 1,933 1,270
 Other noninterest income 80,047 68,801
 Total noninterest income 299,510 271,731
 Noninterest Expense
 Salaries and employee benefits 375,840 362,721
 Net occupancy expense 60,931 59,574
 Equipment expense 41,107 39,875
 FDIC insurance expense 31,771 29,327
 Restructuring charge 128,000 -
 Other noninterest expense 185,820 187,968
 Total noninterest expense 823,469 679,465
 Income before income taxes 200,405 274,671
 Provision for income taxes 58,375 75,174
 Net income $ 142,030 $ 199,497
 Net income applicable to
 common stock $ 139,320 $ 196,786
 Earnings Per Common Share
 Net income:
 Primary $2.41 $3.60
 Fully diluted $2.40 $3.57
 Primary average shares 57,776 54,699
 Cash dividends declared $ 78,472 $ 68,284
 Dividends per share $1.41 $1.37
 CONSOLIDATED BALANCE SHEET
 COMERICA INCORPORATED AND SUBSIDIARIES
 (in thousands, except per share data)
 Sept. 30 Dec. 31
 1992 1991
 Assets
 Cash and due from banks $ 1,613,034 $ 1,449,467
 Interest-bearing deposits
 with banks 828,443 1,429,728
 Federal funds sold and
 securities purchased
 under agreements to
 resell 1,272,467 1,923,714
 Trading account securities 72,943 14,284
 Mortgages held for sale 164,764 159,597
 U.S. Government and agency
 securities 3,347,699 3,222,948
 State and municipal
 securities 753,222 878,784
 Other securities 708,035 1,172,856
 Total investment
 securities (market
 value of $4,998,000 at
 9/30/92, $5,519,000 at
 12/31/91, and $5,407,000
 at 9/30/91) 4,808,956 5,274,588
 Commercial loans 7,676,077 7,407,270
 International loans 662,998 549,072
 Real estate construction
 loans 490,011 520,535
 Commercial mortgage loans 2,365,708 2,228,413
 Residential mortgage loans 2,229,315 2,421,219
 Consumer loans 3,556,513 3,582,412
 Lease financing 195,591 199,892
 Total loans 17,176,213 16,908,813
 Less allowance for loan
 losses (281,230) (266,536)
 Net loans 16,894,983 16,642,277
 Premises and equipment 339,308 359,307
 Customers' liability on
 acceptances outstanding 28,684 26,541
 Accrued interest income and
 other assets 640,634 715,488
 Total assets $26,664,216 $27,994,991
 Liabilities
 Demand deposits
 (noninterest-bearing) $ 3,758,218 $ 3,644,431
 Interest-bearing deposits 14,773,873 15,428,127
 Deposits in foreign offices 1,366,513 1,222,264
 Total deposits 19,898,604 20,294,822
 Federal funds purchased and
 securities sold under
 agreements to repurchase 670,372 1,800,529
 Other borrowed funds 3,281,347 3,333,359
 Acceptances outstanding 28,684 26,541
 Accrued expenses and other
 liabilities 331,485 353,529
 Long-term debt 495,712 301,224
 Total liabilities 24,706,204 26,110,004
 Shareholders' Equity
 Redeemable preferred stock-
 $50 stated value:
 Authorized - 10,000,000
 shares
 Issued - 835,688 shares 37,605 37,605
 Common stock - $5 par value:
 Authorized - 250,000,000
 shares
 Issued - 56,968,620 shares
 at 9/30/92, 56,550,758
 shares at 12/31/91 and
 56,525,944 shares
 at 9/30/91 284,843 282,754
 Capital surplus 499,922 490,099
 Retained earnings 1,136,706 1,075,858
 Less cost of common stock in
 treasury-18,000 shares at
 9/30/92 and 47,341 shares
 at 12/31/91 and 80,027
 shares at 9/30/91 (1,064) (1,329)
 Total shareholders'
 equity 1,958,012 1,884,987
 Total liabilities and
 shareholders' equity $26,664,216 $27,994,991
 CONSOLIDATED BALANCE SHEET
 CONTINUED
 Sept. 30
 1991
 Assets
 Cash and due from banks $ 1,514,182
 Interest-bearing deposits
 with banks 1,764,549
 Federal funds sold and
 securities purchased
 under agreements to
 resell 862,650
 Trading account securities 33,159
 Mortgages held for sale 77,827
 U.S. Government and agency
 securities 3,156,568
 State and municipal
 securities 867,117
 Other securities 1,187,314
 Total investment
 securities (market
 value of $4,998,000
 at 9/30/92, $5,519,000
 at 12/31/91, and
 $5,407,000 at 9/30/91 5,210,999
 Commercial loans 7,221,696
 International loans 534,950
 Real estate construction
 loans 524,178
 Commercial mortgage loans 2,170,326
 Residential mortgage loans 2,451,374
 Consumer loans 3,426,687
 Lease financing 196,071
 Total loans 16,525,282
 Less allowance for loan
 losses (259,942)
 Net loans 16,265,340
 Premises and equipment 351,516
 Customers' liability on
 acceptances outstanding 57,918
 Accrued interest income and
 other assets 711,178
 Total assets $26,849,318
 Liabilities
 Demand deposits
 (noninterest-bearing) $ 3,515,915
 Interest-bearing deposits 15,484,084
 Deposits in foreign offices 1,458,499
 Total deposits 20,458,498
 Federal funds purchased and
 securities sold under
 agreements to repurchase 1,149,968
 Other borrowed funds 2,676,876
 Acceptances outstanding 57,918
 Accrued expenses and other
 liabilities 350,805
 Long-term debt 320,326
 Total liabilities 25,014,391
 Shareholders' Equity
 Redeemable preferred stock-
 $50 stated value:
 Authorized - 10,000,000
 shares
 Issued - 835,688 shares 37,605
 Common stock - $5 par value:
 Authorized - 250,000,000
 shares
 Issued - 56,968,620 shares
 at 9/30/92, 56,550,758
 shares at 12/31/91 and
 56,525,944 shares
 at 9/30/91 282,630
 Capital surplus 489,240
 Retained earnings 1,027,580
 Less cost of common stock in
 treasury-18,000 shares at
 9/30/92 and 47,341 shares
 at 12/31/91 and 80,027
 shares at 9/30/91 (2,128)
 Total shareholders'
 equity 1,834,927
 Total liabilities and
 shareholders' equity $26,849,318
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 COMERICA INCORPORATED AND SUBSIDIARIES
 (in thousands, except per share data and ratios)
 Three Months Ended
 September 30
 1992 1991
 Per Share and Common Stock
 Data
 Primary net income $ 1.42 $ 1.19
 Fully diluted net income 1.41 1.18
 Cash dividends declared .47 .47
 Shareholders' equity
 (at September 30) 33.72 31.84
 Primary average shares 57,851 57,075
 Fully diluted average shares 58,243 57,596
 Fully diluted period end
 shares 58,255 57,688
 Key Ratios (in percent)
 Return on average total
 equity 17.48 15.28
 Return on average common
 equity 17.64 15.40
 Return on average assets 1.31 1.09
 Average common equity to
 average assets 7.36 7.01
 Core capital ratio 8.79 8.16
 Total capital ratio 11.24 10.86
 Minimum leverage ratio 7.27 6.61
 Average Balances
 Total assets $25,306,705 $25,230,178
 Total earning assets 23,317,974 23,343,191
 Loans 16,918,818 16,282,277
 Interest-bearing deposits 16,256,344 16,783,327
 Noninterest-bearing deposits 3,774,188 3,259,809
 Total interest-bearing
 liabilities 19,299,721 19,783,623
 Common shareholders' equity 1,863,225 1,768,030
 Net Interest Income
 Net interest
 margin (in percent) 4.78 4.58
 Fully taxable equivalent
 adjustment $ 8,396 $ 10,681
 Credit Quality
 Nonaccrual loans $ 211,206 $ 204,798
 Renegotiated loans 262 231
 Other real estate 29,319 41,494
 Total nonperforming assets 240,787 246,523
 Loans 90 days past due 73,041 79,166
 Gross charge-offs 27,856 30,743
 Recoveries 5,033 5,977
 Net charge-offs 22,823 24,766
 Reserve to ending
 loans (in percent) 1.64 1.57
 Nonperforming assets to ending
 loans (in percent) 1.40 1.49
 Net charge-offs to average
 loans (in percent) .54 .61
 Reserve to total nonperforming
 assets (in percent) 117 105
 Additional Data
 Goodwill $ 128,716 $ 137,371
 Mortgage servicing
 intangible 25,795 31,371
 Core deposit intangible 35,326 44,183
 Other intangibles 10,713 8,306
 CONSOLIDATED FINANCIAL HIGHLIGHTS
 CONTINUED
 Nine Months Ended
 September 30
 1992 1991
 Per Share and Common Stock
 Data
 Primary net income $ 2.41 $ 3.60
 Fully diluted net income 2.40 3.57
 Cash dividends declared 1.41 1.37
 Shareholders' equity
 (at September 30)
 Primary average shares 57,776 54,699
 Fully diluted average shares 58,186 55,280
 Fully diluted period end
 shares - -
 Key Ratios (in percent)
 Return on average total
 equity 9.87 15.75
 Return on average common
 equity 9.88 15.89
 Return on average assets .74 1.06
 Average common equity to
 average assets - -
 Core capital ratio - -
 Total capital ratio - -
 Minimum leverage ratio - -
 Average Balances
 Total assets $25,657,182 $25,197,173
 Total earning assets 23,714,801 23,321,661
 Loans 17,057,431 16,132,055
 Interest-bearing deposits 16,668,226 16,685,632
 Noninterest bearing deposits 3,580,038 3,220,406
 Total interest-bearing
 liabilities 19,799,608 19,882,058
 Common shareholders' equity 1,881,047 1,651,070
 Net Interest Income
 Net interest
 margin (in percent) 4.72 4.52
 Fully taxable equivalent
 adjustment $27,664 $32,845
 Credit Quality
 Nonaccrual loans - -
 Renegotiated loans - -
 Other real estate - -
 Total nonperforming assets - -
 Loans 90 days past due - -
 Gross charge-offs $ 87,315 $ 88,602
 Recoveries 13,812 19,032
 Net charge-offs 73,503 69,570
 Reserve to ending
 loans (in percent) - -
 Nonperforming assets to ending
 loans (in percent) - -
 Net charge-offs to average
 loans (in percent) .57% .58%
 Reserve to total nonperforming
 assets (in percent) - -
 Additional Data
 Goodwill - -
 Mortgage servicing
 intangible - -
 Core deposit intangible - -
 Other intangibles - -
 -0- 10/15/92
 /CONTACT: (Media) Sharon McMurray, 313-222-4881, or Michael Maurer, 313-222-4732, or (Investors) Leonard Carleton, 313-222-4940, or Judith Hicks, 313-222-6317, all of Comerica Incorporated/
 (CMA) CO: Comerica Incorporated ST: Michigan IN: FIN SU: ERN


JG -- DE020 -- 0536 10/15/92 15:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 15, 1992
Words:2595
Previous Article:MONEY TALKS...INSTITUTIONAL INVESTORS PREDICT CLINTON VICTORY -- BUT PREFER BUSH
Next Article:NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY ISSUES ITS FIRST VARIABLE RATE BOND ISSUE
Topics:


Related Articles
COMERICA REPORTS THIRD-QUARTER EARNINGS
COMERICA REPORTS THIRD-QUARTER EARNINGS
COMERICA INCORPORATED TO ACQUIRE LOCKWOOD BANC GROUP INC.
COMERICA DIRECTORS INCREASE DIVIDEND
COMERICA REPORTS RECORD THIRD QUARTER EARNINGS
COMERICA DIRECTORS INCREASE DIVIDEND
COMERICA TO SELL ILLINOIS SUBSIDIARY TO ABN AMRO NORTH AMERICA, INC.
COMERICA DIRECTORS INCREASE DIVIDEND
COMERICA REPORTS RECORD SECOND QUARTER EARNINGS
Comerica Reports Record Third Quarter Earnings

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters