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COMERICA REPORTS FIRST QUARTER 2009 RESULTS

First Quarter 2009 Compared to Fourth Quarter 2008

·                  Average earning assets increased $618 million, reflecting a $1.4 billion increase in investment securities, from purchases of mortgage-backed government agency securities in the first quarter 2009 and auction-rate securities repurchased from customers in the fourth quarter 2008, partially offset by a decrease in average loans.

·                  Average loans, excluding Financial Services Division (FSD) loans, were down $1.7 billion from the fourth quarter 2008. National Dealer Services average loans declined $461 million and Middle Market  average loans declined in all markets. The declines reflected reduced demand from customers in a rapidly contracting economic environment.

·                  Average core deposits, excluding the Financial Services Division, increased $1.0 billion in the first quarter 2009, reflecting an $840 million increase in noninterest-bearing deposits.

·                  The net interest margin of 2.53 percent decreased 29 basis points, from 2.82 percent in the fourth quarter 2008, primarily reflecting the limited opportunity to reduce deposit rates and the decreased contribution of noninterest-bearing funds in a significantly lower rate environment, partially offset by increasing loan spreads.

·                  Net credit-related charge-offs were $157 million, or 1.26 percent of average total loans, for the first quarter 2009, compared to $133 million, or 1.04 percent of average total loans, for the fourth quarter 2008.  The provision for loan losses was $203 million for the first quarter 2009, compared to $192 million for the fourth quarter 2008, and the period-end allowance to total loans ratio increased to 1.68 percent from 1.52 percent at December 31, 2008.

·                  Noninterest income increased $49 million, and included a $24 million pre-tax gain on the termination of certain structured lease transactions, $13 million of net securities gains (including gains of $5 million from redemptions of auction-rate securities) and $5 million in deferred compensation asset losses, a decrease in losses of $13 million when compared to the fourth quarter 2008 (offset by an increase in deferred compensation plan costs in noninterest expenses).

·                  Noninterest expenses decreased $14 million from the fourth quarter, primarily due to a $16 million decrease in salaries expense and targeted decreases across discretionary categories of noninterest expenses, partially offset by  increases in pension expense ($11 million) and FDIC insurance expense ($8 million). Total severance-related expenses were $6 million in the first quarter, down from $29 million in the fourth quarter of 2008.  Annualized first quarter noninterest expenses were nearly 10 percent lower than noninterest expenses for the full-year 2008.

·                  The estimated Tier 1 common and Tier 1 capital ratios were 7.33 percent and 11.08 percent, respectively.

COMERICA REPORTS FIRST QUARTER 2009 RESULTS

Net Interest Income and Net Interest Margin

·                 The $47 million decrease in net interest income in the first quarter 2009, when compared to fourth quarter 2008, resulted primarily from a reduction in the net interest margin, a decline in loans and the impact of two less days ($9 million).

·                 First quarter 2009 average core deposits, excluding the Financial Services Division, increased $1.0 billion compared to fourth quarter 2008, reflecting an $840 million increase in noninterest-bearing deposits. The increase in noninterest-bearing deposits occurred across all business segments from both commercial and consumer customers.

·                 The net interest margin of 2.53 percent declined 29 basis points, compared to fourth quarter 2008, primarily reflecting the limited opportunity to reduce deposit rates at the same pace as the decline in loan yields and the decreased contribution of noninterest-bearing funds in a significantly lower rate environment, partially offset by increasing loan spreads. Variable rate loan yields generally move with the average target federal funds and one-month LIBOR rates, which declined 82 basis points and 171 basis points, respectively, from the fourth quarter 2008. In addition, the net interest margin was reduced by approximately seven basis points from $1.8 billion of average balances deposited with the Federal Reserve Bank in the first quarter 2009, compared to a reduction of approximately two basis points from $778 million of average balances in the fourth quarter 2008.

·                 Total average Financial Services Division deposits decreased $268 million from the fourth quarter 2008. This division serves title and escrow companies that facilitate residential mortgage transactions and benefits from customer deposits related to mortgage escrow balances. Deposits continued to decline primarily due to reduced home prices.

Noninterest Income

Noninterest income was $223 million for the first quarter 2009, compared to $174 million for the fourth quarter 2008 and $237 million for the first quarter 2008. Noninterest income in the first quarter 2009, compared to the fourth quarter 2008, included a $24 million pre-tax gain on the termination of certain structured lease transactions (included in “other noninterest income”) and $13 million of net securities gains, which included gains of $8 million from sales of mortgage-backed securities and $5 million from redemptions of auction-rate securities. In addition, deferred compensation asset losses were $5 million in the first quarter 2009, a decrease in losses of $13 million when compared to the fourth quarter 2008 (offset by an increase in deferred compensation plan costs in noninterest expenses). Certain categories of noninterest income are highlighted in the following table.

COMERICA REPORTS FIRST QUARTER 2009 RESULTS

Noninterest Expenses

Noninterest expenses were $397 million for the first quarter 2009, compared to $411 million for the fourth quarter 2008 and $403 million for the first quarter 2008. The $14 million decrease in noninterest expenses in the first quarter 2009, compared to the fourth quarter 2008, reflected a decrease of $16 million in salaries expense and targeted decreases across discretionary categories of noninterest expenses, partially offset by increases of $11 million in pension expense and $8 million in FDIC insurance expense. The decrease in salaries expense was primarily due to decreases of $19 million in severance expense and $6 million in incentives, partially offset by a $13 million increase in deferred compensation plan costs (offset by a decrease in deferred compensation asset losses in noninterest income). Regular salaries expense was also impacted by reductions in full-time equivalent staff of approximately 490 and 160 in the first quarter 2009 and fourth quarter 2008, respectively.  Total severance-related expenses were $6 million in the first quarter, down from $29 million in the fourth quarter of 2008. Certain categories of noninterest expenses are highlighted in the table below.

·                  The allowance to total loans ratio increased to 1.68 percent at March 31, 2009, from 1.52 percent at December 31, 2008 and 1.16 percent at March 31, 2008.

·                  The provision for loan losses and loan quality reflected challenges in the Midwest, Western and Florida markets and the contracting domestic economy.

·                  Net credit-related charge-offs in the Commercial Real Estate business line in the first quarter 2009 were $73 million, of which $47 million were from residential real estate developers in the Western market. Comparable numbers for the fourth quarter 2008 were $59 million in total, of which $37 million were from residential real estate developers in the Western market.

·                  Net loan charge-offs excluding the Commercial Real Estate business line were $84 million in the first quarter 2009, or 76 basis points of average non-Commercial Real Estate loans, compared to $74 million, or 66 basis points, in the fourth quarter 2008.

·                  Nonperforming assets increased to 2.20 percent of total loans and foreclosed property at March 31, 2009. During the first quarter 2009, $241 million of loan relationships greater than $2 million were transferred to nonaccrual status, a decrease of $17 million from the fourth quarter 2008.  Of the transfers of loan relationships greater than $2 million to nonaccrual in the first quarter 2009, $112 million were in the Commercial Real Estate business line and $89 million were in Middle Market, a decrease of $51 million and an increase of $28 million from the fourth quarter 2008, respectively.

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 March 31, 2009 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2009 results compared to fourth quarter 2008.

The following table presents net income (loss) by business segment.

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.  The financial results below are based on methodologies in effect at March 31, 2009 and are presented on a fully taxable equivalent (FTE) basis. The accompanying narrative addresses first quarter 2009 results compared to fourth quarter 2008.

·                 Average loans decreased $64 million, primarily due to declines in Middle Market and National Dealer Services.

·                 Average deposits increased $31 million, due to increases in Commercial Real Estate and Private Banking.

·                 The net interest margin of 2.31 percent increased five basis points, primarily due to an increase in deposit spreads, partially offset by a decline in loan spreads.

Comerica will host a conference call to review first quarter 2009 financial results at 7 a.m. CT Tuesday, April 21, 2009. Interested parties may access the conference call by calling (800) 309-2262 or (706) 679-5261 (event ID No. 90513349). The call and supplemental financial information can also be accessed on the Internet at www.comerica.com.  A replay will be available approximately two hours following the conference call through April 30, 2009. The conference call replay can be accessed by calling (800) 642-1687 or (706) 645-9291 (event ID No. 90513349). A replay of the Webcast can also be accessed via Comerica’s “Investor Relations” page at www.comerica.com.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by 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. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada, China and Mexico.

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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 further economic downturns, changes in the pace of an economic recovery and related changes in employment levels, changes in real estate values, fuel prices, energy costs or other events that could affect customer income levels or general economic conditions, changes related to the headquarters relocation or to its underlying assumptions, the effects of recently enacted legislation, such as the Emergency Economic Stabilization Act of 2008 and the American Recovery and Reinvestment Act of 2009, and actions taken by the U.S. Department of Treasury, the Board of Governors of the Federal Reserve System, the Texas Department of Banking  and the Federal Deposit Insurance Corporation, 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, fires, droughts  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, the interdependence of financial service companies and adverse conditions in the stock market. Comerica cautions that the foregoing list of factors is not exclusive. For discussion of factors that may cause actual results to differ from expectations, please refer to our filings with the Securities and Exchange Commission. 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.