Comerica Reports Fourth Quarter and 2007 Earnings

DALLAS, Jan. 17 /PRNewswire-FirstCall/ -- Comerica Incorporated today reported fourth quarter 2007 income from continuing operations of $117 million, or $0.77 per diluted share, compared to $180 million, or $1.17 per diluted share, for the third quarter 2007 and $185 million, or $1.16 per diluted share, for the fourth quarter 2006. Fourth quarter 2007 included a $108 million provision for loan losses, compared to $45 million for the third quarter 2007 and $22 million for the fourth quarter 2006. Fourth quarter 2007 also included $13 million of noninterest expense related to Comerica's membership in Visa, Inc. (Visa) and fourth quarter 2006 included $47 million of noninterest income from a lawsuit settlement.

(Logo: http://www.newscom.com/cgi-bin/prnh/20010807/CMALOGO ) (dollar amounts in millions, except per share data) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income $489 $503 $502 Provision for loan losses 108 45 22 Noninterest income 230 230 262 Noninterest expenses 450 423 457 Income from continuing operations, net of tax 117 180 185 Net income 119 181 299 Diluted EPS from continuing operations 0.77 1.17 1.16 Diluted EPS from discontinued operations* 0.02 0.01 0.71 Diluted EPS 0.79 1.18 1.87 Return on average common shareholders' equity from continuing operations 9.18% 14.24% 14.03% Return on average common shareholders' equity 9.34 14.38 22.63 Net interest margin 3.43 3.66 3.75 * In the fourth quarter 2006, Comerica sold its stake in Munder Capital Management (Munder) and reports Munder as a discontinued operation in all periods presented.

Income from continuing operations for 2007 was $682 million, or $4.40 per diluted share, compared to $782 million, or $4.81 per diluted share, for 2006. The provision for loan losses was $212 million for 2007, compared to $37 million for 2006. Return on average common shareholders' equity from continuing operations was 13.41 percent for 2007 and 15.11 percent for 2006.

"2007 was a challenging year for the banking industry, including Comerica," said Ralph W. Babb Jr., chairman and chief executive officer. "While we continued to execute our strategy, reflected by strong loan growth, particularly in our high growth markets, challenges in the residential real estate development portfolio affected our performance. Our fourth quarter earnings were largely impacted by an increase in the provision for loan losses and a decline in the net interest margin, driven in part by a decision to increase the securities portfolio and a competitive funding environment. Our fourth quarter expenses were impacted by a $13 million charge related to Visa and $2 million of moving costs related to our previously announced headquarters relocation.

"We opened 30 new banking centers in 2007, 28 of them in our high-growth markets of Texas, California and Arizona. We also relocated our corporate headquarters from Detroit to Dallas, positioning our company in a more central location with greater accessibility to all of our markets. Our capital position remains solid and provides us with a cushion to weather continued challenges in the economic environment and the flexibility to continue to invest in our growth markets."

Fourth Quarter and Full Year 2007 Highlights Fourth Quarter 2007 Compared to Third Quarter 2007 -- On an annualized basis, excluding Financial Services Division (FSD) loans, average loans increased nine percent, led by growth of 28 percent in the Texas market, eight percent in the Western market, six percent in the Florida market and two percent in the Midwest market -- The net interest margin was 3.43 percent in the fourth quarter 2007, a decrease of 23 basis points from 3.66 percent in the third quarter 2007, largely due to securities purchases, competitive loan pricing, interest reversals on new nonaccrual loans, a competitive deposit pricing environment that had a muted reaction to recent Federal Reserve rate cuts and an increase in borrowings at higher market-driven costs due to disruptions in financial markets -- Net credit-related charge-offs were $64 million, or 50 basis points as a percent of average total loans, for the fourth quarter 2007, compared to $40 million, or 32 basis points as a percent of average total loans, for the third quarter 2007 -- Noninterest income remained flat at $230 million and included positive trends in fiduciary income, service charges on deposit accounts and commercial lending fees, offset by a decrease in net income from principal investing and warrants -- Noninterest expenses increased $27 million from the third quarter 2007, mostly due to the recording of a $13 million estimated liability related to membership in Visa and a $9 million increase in salaries expense, primarily due to increases in severance and deferred compensation plan costs (offset by an increase in deferred compensation asset returns in noninterest income) -- Open market share repurchases in the fourth quarter 2007 totaled 1.0 million shares, or one percent of total shares outstanding at September 30, 2007 Full Year 2007 Compared to Full Year 2006 -- Excluding Financial Services Division loans, average loan growth was seven percent, with 16 percent growth in the Texas market, 13 percent in the Western market and 11 percent in the Florida market, with the Midwest market down one percent -- The net interest margin was 3.66 percent -- Total revenue increased two percent, including four percent growth in noninterest income. Excluding a $47 million Financial Services Division-related lawsuit settlement and the $12 million loss on the sale of the Mexican bank charter in 2006, total revenue growth was three percent, and noninterest income growth was eight percent -- Net credit-related charge-offs were 31 basis points as a percent of average total loans for 2007, compared to 15 basis points for 2006 -- Noninterest expenses increased $17 million, or one percent, from 2006. 2007 included incremental expenses related to new banking centers ($23 million), the Visa charge discussed above ($13 million) and costs associated with the previously announced headquarters move to Dallas, Texas ($6 million). 2006 included interest on tax liabilities ($38 million), which was classified in the "provision for income taxes" in 2007 (see "Tax-related items" below). Full time equivalent employees increased less than one percent from December 31, 2006, to December 31, 2007, even with the addition of 30 new banking centers during the period -- Open market share repurchases in 2007 totaled 10.0 million shares, or six percent of total shares outstanding at December 31, 2006 Net Interest Income and Net Interest Margin (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income $489 $503 $502 Net interest margin 3.43% 3.66% 3.75% Selected average balances: Total earning assets $56,621 $54,641 $53,289 Total loans 50,699 49,874 48,568 Total loans, excluding FSD loans (primarily low-rate) 49,758 48,683 46,659 Total interest-bearing deposits 31,834 30,276 30,554 Total noninterest-bearing deposits 10,533 10,840 12,649 Total noninterest-bearing deposits, excluding FSD 8,473 8,265 8,696 -- The $14 million decrease in net interest income in the fourth quarter 2007, when compared to third quarter 2007, resulted primarily from competitive loan pricing and a competitive deposit pricing environment that had a muted reaction to recent Federal Reserve rate cuts, partially offset by growth in earning assets. -- The net interest margin of 3.43 percent declined 23 basis points, reflecting securities purchases, competitive loan pricing, a competitive deposit pricing environment, interest reversals on new nonaccrual loans and an increase in borrowings at higher market-driven costs due to disruptions in financial markets. The impact of a decline in average Financial Services Division noninterest bearing deposits was largely offset by a decline in average Financial Services Division loans (primarily low-rate). Noninterest Income

Noninterest income was $230 million for the fourth quarter 2007, compared to $230 million for the third quarter 2007 and $262 million for the fourth quarter 2006. Noninterest income in the fourth quarter 2007, compared to the third quarter 2007, included positive trends in fiduciary income, service charges on deposit accounts, commercial lending fees and an increase in deferred compensation asset returns, offset by a decrease in net income from principal investing and warrants. Fourth quarter 2006 noninterest income included $47 million from the settlement of a Financial Services Division- related lawsuit. Certain categories of noninterest income are highlighted in the table below.

(in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net income from principal investing and warrants $6 $11 $3 Net securities gains 3 4 1 Income from lawsuit settlement - - 47 Other noninterest income Deferred compensation asset returns* 2 (2) 3 Investment banking fees 3 4 10 * Compensation deferred by Comerica officers is invested in stocks and bonds to reflect the investment selections of the officers. Income (loss) earned on these assets is reported in noninterest income and the offsetting increase (decrease) in the liability is reported in salaries expense. Noninterest Expenses

Noninterest expenses were $450 million for the fourth quarter 2007, compared to $423 million for the third quarter 2007 and $457 million for the fourth quarter 2006. The $27 million increase in noninterest expenses in the fourth quarter 2007, compared to the third quarter 2007, reflected $13 million to record an estimated liability related to membership in Visa (discussed below), a $9 million increase in salaries expense and a $3 million increase in the provision for credit losses on lending-related commitments, partially offset by a $4 million decrease in customer services expense. The increase in salaries expense was primarily due to increases in severance and deferred compensation plan costs (offset by an increase in deferred compensation asset returns in noninterest income). Customer services expense varies from period to period as a result of changes in the level of noninterest-bearing deposits in the Corporation's Financial Services Division, the earnings credit allowance provided on these deposits and a competitive environment. In addition, noninterest expenses included approximately $2 million of costs related to the previously announced relocation of Comerica's headquarters to Dallas, Texas, in both the fourth quarter and third quarters of 2007, reflected in salaries and other noninterest expenses.

Members of the Visa card association participate in a loss sharing arrangement to allocate financial responsibilities arising from any potential adverse resolution of certain antitrust lawsuits challenging the practices of the association. Comerica recorded a $13 million expense in the fourth quarter 2007 (in "litigation and operational losses") related to this loss sharing arrangement. Comerica believes that its share of the proceeds from the expected initial public offering of Visa, anticipated in the first quarter 2008, will exceed its share of recorded losses.

Certain categories of noninterest expenses are highlighted in the table below.

4th Qtr '07 3rd Qtr '07 4th Qtr '06 Salaries Regular salaries $163 $162 $162 Severance 3 - 5 Incentives 36 35 48 Deferred compensation plan costs 2 (2) 4 Share-based compensation 12 12 12 Total salaries 216 207 231 Employee benefits 48 49 42 Customer services 7 11 14 Litigation and operational losses 18 6 4 Provision for credit losses on lending-related commitments 3 - (4) Other noninterest expenses Interest on tax liabilities* n/a n/a 15 Charitable Foundation contribution 2 - 10 Other real estate expense 3 3 (2) Redemption premium on trust preferred securities - - 3 * Effective with the adoption of FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109," Comerica changed its accounting policy and prospectively began to classify interest on tax liabilities in the "provision for income taxes." Prior to January 1, 2007, interest on tax liabilities was classified in "other noninterest expenses." n/a - not applicable Tax-related Items

Interest on tax liabilities was classified in the "provision for income taxes" in 2007 and in "other noninterest expenses" in 2006. Fourth quarter 2007 interest on tax liabilities reflected a $9 million reduction ($6 million after-tax) of interest resulting from a settlement with the Internal Revenue Service on asset depreciation.

Fourth quarter 2006 reflected a charge of $31 million after-tax to Comerica's combined tax and related interest reserves for disallowed loan benefits related to a series of loans to foreign borrowers based on settlements discussed with the Internal Revenue Service. Of the total, $22 million was included in the provision for income taxes and $14 million ($9 million after-tax) was for tax-related interest included in other noninterest expenses.

Credit Quality

"We increased the provision for loan losses by $63 million from the third quarter, due to the continued residential real estate development challenges in Michigan and California," said Babb.

-- The allowance to loan ratio increased to 1.10 percent at December 31, 2007, from 1.03 percent at September 30, 2007 -- The provision for loan losses and loan quality reflected ongoing challenges to the residential real estate development industry located in Michigan (Midwest market) and both northern and southern California (Western market) -- Nonperforming assets increased to 83 basis points of total loans and foreclosed property for the fourth quarter 2007. During the fourth quarter 2007, $185 million of loan relationships greater than $2 million were transferred to nonaccrual status, an increase of $91 million from the third quarter 2007. Of the transfers of loan relationships greater than $2 million to nonaccrual in the fourth quarter 2007, $143 million were in the real estate industry, $60 million were from the Midwest market and $103 million were from the Western market (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net loan charge-offs $63 $40 $22 Net lending-related commitment charge-offs 1 - 1 Total net credit-related charge-offs 64 40 23 Net loan charge-offs/Average total loans 0.50% 0.32% 0.18% Net credit-related charge- offs/Average total loans 0.50 0.32 0.19 Provision for loan losses $108 $45 $22 Provision for credit losses on lending-related commitments 3 - (4) Total provision for credit losses 111 45 18 Nonperforming assets (NPAs) 423 291 232 NPAs/Total loans and foreclosed property 0.83% 0.59% 0.49% Allowance for loan losses $557 $512 $493 Allowance for credit losses on lending-related commitments* 21 19 26 Total allowance for credit losses 578 531 519 Allowance for loan losses/Total loans 1.10% 1.03% 1.04% Allowance for loan losses/Nonperforming loans 138 188 231 *Included in "Accrued expenses and other liabilities" on the consolidated balance sheets. Balance Sheet and Capital Management

Total assets and common shareholders' equity were $62.3 billion and $5.1 billion, respectively, at December 31, 2007, compared to $60.0 billion and $5.1 billion, respectively, at September 30, 2007. There were approximately 150 million shares outstanding at December 31, 2007, compared to 151 million shares outstanding at September 30, 2007. Open market share repurchases for the current and prior quarter and full year 2007 are shown in the following table:

4th Qtr '07 3rd Qtr '07 Full Year 2007 Number Number Number (in millions) of Shares Amount of Shares Amount of Shares Amount Open market share repurchases 1.0 $47 2.0 $109 10.0 $580

Comerica's fourth quarter 2007 estimated Tier 1 common, Tier 1 and total risk-based capital ratios were 6.80 percent, 7.46 percent and 11.11 percent, respectively.

Full Year 2008 Outlook Compared to Full Year 2007 from Continuing Operations

-- Mid to high single-digit average loan growth, excluding Financial Services Division loans, with flat growth in the Midwest market, high single-digit growth in the Western market and low double-digit growth in the Texas market -- Average earning asset growth in excess of average loan growth -- Average Financial Services Division noninterest-bearing deposits of $1.2 to $1.4 billion. Financial Services Division loans will fluctuate in tandem with the level of noninterest-bearing deposits -- Based on a 50 basis point Federal Reserve rate cut in January and a 25 basis point cut in March 2008, average full year net interest margin between 3.20 and 3.25 percent, including the effects of higher levels of securities, lower value of noninterest-bearing deposits, absence of the benefit of maturing swaps with negative spreads (10 basis points in 2007) and the 2008 FAS 91 impact discussed below -- Average net credit-related charge-offs between 40 and 50 basis points of average loans, with a provision for credit losses exceeding net charge-offs -- Low single-digit growth in noninterest income -- Low single-digit decline in noninterest expenses, excluding the provision for credit losses on lending-related commitments and including the 2008 FAS 91 impact discussed below -- Effective tax rate of about 32 percent -- Maintain a Tier one common capital ratio similar to year-end 2007 -- Statement of Financial Accounting Standards No. 91 (FAS 91) - Accounting for Loan Origination Fees and Costs. Beginning in 2008, a change in the application of FAS 91 will result in deferral and amortization (over the loan life) to net interest income of more fees and costs. Based on assumptions for loan growth, loan fees and average loan life, the estimated impact on 2008, compared to 2007, will be to lower the net interest margin by about 3-4 basis points (approximately $20 million), lower noninterest expenses by about 3-4 percent (approximately $60 million) and increase earnings per share by about four cents per quarter Business Segments

Comerica's continuing operations are strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. The Finance Division also is included as a segment. The financial results below are based on the internal business unit structure of the Corporation and methodologies in effect at December 31, 2007 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2007 results compared to third quarter 2007.

The following table presents net income (loss) by business segment. (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Business Bank $90 88% $134 72% $154 80% Retail Bank (1) (1) 32 17 27 14 Wealth & Institutional Management 13 13 20 11 11 6 102 100% 186 100% 192 100% Finance 1 2 (4) Other* 16 (7) 111 Total $119 $181 $299 * Includes discontinued operations and items not directly associated with the three major business segments or the Finance Division. Business Bank (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $327 $332 $335 Provision for loan losses 88 43 15 Noninterest income 80 82 116 Noninterest expenses 186 177 194 Net income 90 134 154 Net credit-related charge-offs 50 30 6 Selected average balances: Assets 41,327 40,796 39,872 Loans 40,285 39,746 38,766 FSD loans 941 1,191 1,909 Deposits 15,931 15,948 17,110 FSD deposits 3,181 3,789 5,291 Net interest margin 3.22% 3.31% 3.43% -- Average loans, excluding the Financial Services Division, increased $789 million, or eight percent on an annualized basis, with strong growth in Energy, Middle Market and Technology and Life Sciences -- Average deposits increased $591 million, excluding the $608 million decline in the Financial Services Division, primarily due to growth in Technology and Life Sciences, Global Corporate and Middle Market, partially offset by a decrease in Commercial Real Estate -- The net interest margin of 3.22 percent decreased nine basis points, primarily due to narrowing loan and deposit spreads resulting from competitive loan and deposit pricing -- The provision for loan losses increased $45 million, primarily due to declining credit quality in Commercial Real Estate (residential real estate developers) and increased reserves in Technology and Life Sciences primarily related to a single customer, partially offset by a decline in reserves related to the automotive supplier portfolio, which continued to reduce in size and exhibited stable credit quality metrics -- Noninterest expenses increased $9 million, primarily due to an increase in net corporate overhead expenses resulting from year end adjustments to allocation rates Retail Bank (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $151 $159 $159 Provision for loan losses 26 7 6 Noninterest income 55 56 53 Noninterest expenses 182 160 164 Net income (1) 32 27 Net credit-related charge-offs 14 9 16 Selected average balances: Assets 6,998 6,854 6,810 Loans 6,229 6,111 6,100 Deposits 17,254 17,144 16,969 Net interest margin 3.47% 3.68% 3.71% -- Average loans increased $118 million, or eight percent on an annualized basis, primarily due to growth in the Small Business Banking portfolio in the Texas and Western markets -- Average deposits increased $110 million, primarily due to growth in the Western and Texas markets -- The net interest margin of 3.47 percent decreased 21 basis points, primarily due to a decline in deposit spreads resulting from competitive pricing -- The provision for loan losses increased $19 million, primarily due to a modest increase in charge-offs related to Small Business Banking -- Noninterest expenses increased $22 million, primarily due to the Visa- related expense discussed above, an increase in net corporate overhead expenses for the same reason noted in the Business Bank and an increase in expenses related to the opening of 17 new banking centers in the fourth quarter Wealth and Institutional Management (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $36 $36 $36 Provision for loan losses 1 (5) 2 Noninterest income 72 70 67 Noninterest expenses 86 81 86 Net income 13 20 11 Net credit-related charge-offs - 1 1 Selected average balances: Assets 4,321 4,152 3,794 Loans 4,146 3,989 3,646 Deposits 2,552 2,378 2,351 Net interest margin 3.41% 3.58% 3.90% -- Average loans increased $157 million, or 16 percent on an annualized basis -- Average deposits increased $174 million, primarily due to an increase money market investment deposits in the Western market -- The net interest margin of 3.41 percent declined 17 basis points, primarily due to lower loan and deposit spreads resulting from competitive pricing -- The provision for loan losses increased $6 million. The third quarter negative provision included a large improvement related to a single customer in the Midwest market -- Noninterest income increased $2 million, primarily in fiduciary income -- Noninterest expenses increased $5 million, partially due to an increase in net corporate overhead expenses, for the same reason noted in the Business Bank Geographic Market Segments

Comerica also provides market segment results for four primary geographic markets: Midwest, Western, Texas and Florida. In addition to the four primary geographic markets, Other Markets and International are also reported as market segments. In the fourth quarter 2007, Comerica revised the definition of Other Markets to include businesses with a national perspective, which were previously included primarily in the Midwest market. The financial results below are based on methodologies in effect at December 31, 2007 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses fourth quarter 2007 results compared to third quarter 2007.

The following table presents net income (loss) by market segment. (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Midwest $55 55% $75 41% $58 30% Western (5) (5) 50 27 83 44 Texas 12 12 26 14 17 9 Florida (1) (1) 3 1 3 1 Other Markets 30 29 17 9 24 12 International 11 10 15 8 7 4 102 100% 186 100% 192 100% Finance & Other* 17 (5) 107 Total $119 $181 $299

* Includes discontinued operations and items not directly associated with the geographic markets.

Midwest (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $206 $216 $224 Provision for loan losses 20 15 40 Noninterest income 120 119 116 Noninterest expenses 218 206 215 Net income 55 75 58 Net credit-related charge-offs 38 23 12 Selected average balances: Assets 19,228 19,131 19,297 Loans 18,602 18,526 18,671 Deposits 16,117 15,636 15,860 Net interest margin 4.38% 4.60% 4.74% -- Average loans increased $76 million, or two percent on an annualized basis, primarily due to increases in the Global Corporate, Private Banking, National Dealer Services and Small Business Banking lines of business, partially offset by a decrease in Middle Market Banking -- Average deposits increased $481 million, primarily in the Global Corporate and Small Business Banking lines of business -- The net interest margin of 4.38 percent declined 22 basis points, primarily due to a decline in loan and deposit spreads resulting from competitive loan and deposit pricing -- The provision for loan losses increased $5 million, primarily due to an increase in credit risk in the Commercial Real Estate line of business (residential real estate developers) and a modest increase in charge- offs related to Small Business Banking, partially offset by a decline in reserves related to the automotive supplier portfolio, which continued to reduce in size and exhibited stable credit quality metrics -- Noninterest expenses increased $12 million, partially due to the Visa- related expense as discussed above, the provision for credit losses on lending-related commitments and net corporate overhead expenses, for the same reason noted in the Business Bank Western Market (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $173 $177 $178 Provision for loan losses 92 23 (15) Noninterest income 35 36 74 Noninterest expenses 121 110 122 Net income (5) 50 83 Net credit-related charge-offs 22 7 (2) Selected average balances: Assets 17,137 17,095 16,572 Loans 16,615 16,543 16,037 FSD loans 941 1,191 1,909 Deposits 13,012 13,009 14,145 FSD deposits 3,045 3,607 5,130 Net interest margin 4.13% 4.24% 4.40% -- Excluding the Financial Services Division, average loans increased $322 million, or eight percent on an annualized basis, primarily due to growth in the Middle Market Banking, Technology and Life Sciences and Private Banking lines of business -- Excluding the Financial Services Division, average deposits increased $565 million, primarily due to growth in the Middle Market Banking, Private Banking, Retail Banking, Technology and Life Sciences and Entertainment Lending lines of business -- The net interest margin of 4.13 percent declined 11 basis points due to a decline in deposits spreads resulting from competitive pricing -- The provision for loan losses increased $69 million, primarily due to a decline in credit quality in Commercial Real Estate (residential real estate developers), a modestly higher level of charge-offs related to Small Business Banking and increased reserves in Technology and Life Sciences primarily related to a single customer -- Noninterest expenses increased $11 million, primarily due to banking center expansion, the Visa-related expense discussed above, advertising expenses and net corporate overhead expenses, for the same reason noted in the Business Bank, partially offset by a decrease in customer service expenses -- Eleven new banking centers were opened in the fourth quarter, eight in California and three in Arizona. In 2007, a total of 13 new banking centers were opened in California and three in Arizona Texas Market (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $72 $71 $69 Provision for loan losses 8 (2) 3 Noninterest income 23 24 20 Noninterest expenses 67 58 59 Net income 12 26 17 Total net credit-related charge- offs 3 1 2 Selected average balances: Assets 7,678 7,172 6,631 Loans 7,382 6,902 6,360 Deposits 3,935 3,920 3,794 Net interest margin 3.85% 4.08% 4.27% -- Average loans increased $480 million, or 28 percent on an annualized basis, primarily in Energy, Small Business Banking and Global Corporate -- Average deposits increased $15 million -- The net interest margin of 3.85 percent decreased 23 basis points, primarily due to narrowing deposit spreads resulting from competitive pricing -- The provision for loan losses increased $10 million, primarily due to a modestly higher level of charge-offs related to Small Business Banking -- Noninterest expenses increased $9 million, primarily due to an increase in advertising expenses, the Visa-related expense discussed above and an increase in net corporate overhead expenses, for the same reason noted in the Business Bank -- Six new banking centers were opened in the fourth quarter, and a total of 12 new banking centers were opened in 2007 Florida Market (dollar amounts in millions) 4th Qtr '07 3rd Qtr '07 4th Qtr '06 Net interest income (FTE) $12 $13 $11 Provision for loan losses 5 3 1 Noninterest income 4 4 4 Noninterest expenses 12 10 10 Net income (1) 3 3 Net credit-related charge-offs - 1 - Selected average balances: Assets 1,731 1,706 1,631 Loans 1,717 1,692 1,611 Deposits 299 271 292 Net interest margin 2.70% 2.97% 2.80% -- Average loans increased $25 million, or six percent on an annualized basis -- Average deposits increased $28 million -- The net interest margin of 2.70 percent decreased 27 basis points, primarily due to a decrease in loan spreads resulting from competitive pricing -- The provision for loan losses increased $2 million, primarily due to a decline in credit quality in the Commercial Real Estate line of business Conference Call and Webcast

Comerica will host a conference call to review fourth quarter 2007 financial results at 7 a.m. CT Thursday, January 17, 2008. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 28504995). The call and supplemental financial information can also be accessed on the Internet at http://www.comerica.com/. A replay will be available approximately two hours following the conference call until January 31, 2008. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 28504995). A replay of the Webcast can also be accessed via Comerica's "Investor Relations" page at http://www.comerica.com/.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping people and businesses be successful. Comerica Bank locations can be found in Michigan, California, Texas, Arizona and Florida, with select businesses operating in several other states, and Canada and Mexico

Forward-looking Statements

Any statements in this news release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "anticipates," "believes," "feels," "expects," "estimates," "seeks," "strives," "plans," "intends," "outlook," "forecast," "position," "target," "mission," "assume," "achievable," "potential," "strategy," "goal," "aspiration," "outcome," "continue," "remain," "maintain," "trend," "objective" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "might," "can," "may" or similar expressions, as they relate to Comerica or its management, are intended to identify forward-looking statements. These forward-looking statements are predicated on the beliefs and assumptions of Comerica's management based on information known to Comerica's management as of the date of this news release and do not purport to speak as of any other date. Forward-looking statements may include descriptions of plans and objectives of Comerica's management for future or past operations, products or services, and forecasts of Comerica's revenue, earnings or other measures of economic performance, including statements of profitability, business segments and subsidiaries, estimates of credit trends and global stability. Such statements reflect the view of Comerica's management as of this date with respect to future events and are subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, Comerica's actual results could differ materially from those discussed. Factors that could cause or contribute to such differences are changes in the pace of an economic recovery and related changes in employment levels, changes related to the headquarters relocation or to its underlying assumptions, the effects of war and other armed conflicts or acts of terrorism, the effects of natural disasters including, but not limited to, hurricanes, tornadoes, earthquakes and floods, the disruption of private or public utilities, the implementation of Comerica's strategies and business models, management's ability to maintain and expand customer relationships, changes in customer borrowing, repayment, investment and deposit practices, management's ability to retain key officers and employees, changes in the accounting treatment of any particular item, the impact of regulatory examinations, declines or other changes in the businesses or industries in which Comerica has a concentration of loans, including, but not limited to, the automotive production industry and the real estate business lines, the anticipated performance of any new banking centers, the entry of new competitors in Comerica's markets, changes in the level of fee income, changes in applicable laws and regulations, including those concerning taxes, banking, securities and insurance, changes in trade, monetary and fiscal policies, including the interest rate policies of the Board of Governors of the Federal Reserve System, fluctuations in inflation or interest rates, changes in general economic, political or industry conditions and related credit and market conditions, and adverse conditions in the stock market. Comerica cautions that the foregoing list of factors is not exclusive. Forward-looking statements speak only as of the date they are made. Comerica does not undertake to update forward-looking statements to reflect facts, circumstances, assumptions or events that occur after the date the forward- looking statements are made. For any forward-looking statements made in this news release or in any documents, Comerica claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.