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Comerica Inc/New · 10-Q · For 9/30/94

Filed On 11/14/94 · SEC File 1-10706 · Accession Number 28412-94-25

  As Of               Filer                 Filing     On/For/As Docs:Pgs

11/14/94  Comerica Inc/New                  10-Q        9/30/94    3:32

Quarterly Report · Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      28    107K 
 2: EX-11       Statement re: Computation of Earnings Per Share        2±     7K 
 3: EX-27       Financial Data Schedule                                2±     9K

10-Q · Quarterly Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (RTF, XML, et al.) Exhibits Financial Condition Management's Discussion and Analysis of Results of Operations and Financial Condition
1	1st Page
15	Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition
22	Financial Condition
27	Item 6. Exhibits

10-Q 1st Page of 28 TOC Top Previous Next Bottom Just 1st
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FORM 10-Q       

SECURITIES AND EXCHANGE COMMISSION        
Washington, D.C.  20549       

(Mark One)                                                                      

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                     
SECURITIES EXCHANGE ACT OF 1934                 

For the quarterly period ended     September 30, 1994                           

OR        

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                    
SECURITIES EXCHANGE ACT OF 1934                 

For the transition period from               to                                 

Commission file number                1-10706                                   

Comerica Incorporated     
(Exact name of registrant as specified in its charter)  

Delaware                              38-1998421        
(State or other jurisdiction of                (I.R.S. Employer                 
incorporation or organization)               Identification No.)              

Comerica Tower at Detroit Center        
Detroit, Michigan       
48226       
(Address of principal executive offices)        
(Zip Code)        

(313) 222-3300        
(Registrant's telephone number, including area code)        

Indicate by check mark whether the registrant (1) has filed all     
reports required to be filed by Section 13 or 15(d) of the Securities           
Exchange Act of 1934 during the preceding 12 months (or for such shorter        
period that the registrant was required to file such reports), and (2) has      
been subject to such filing requirements for the past 90 days.                  

Yes    X      No                

Indicate the number of shares outstanding of each of the issuer's   
classes of common stock, as of the latest practicable date.                     

$5 par value common stock:                                          
outstanding as of October 31, 1994:  117,596,000 shares     

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PART I.  FINANCIAL INFORMATION                                                  

                                                                · Download Table
CONSOLIDATED BALANCE SHEETS                                                    
Comerica Incorporated and Subsidiaries                                         


                                         Sept. 30,       Dec. 31,    Sept. 30, 
(In thousands, except per share data)         1994           1993         1993 
                                       -----------   ------------  ----------- 
                                                                               
ASSETS                                                                         
Cash and due from banks                $ 1,410,911   $ 1,600,695   $ 1,407,581 
Interest-bearing deposits with banks       275,361     1,026,473       905,408 
Federal funds sold and securities                                              
  purchased under agreements to                                                
  resell                                    50,499     1,091,789        40,830 
Trading account securities                   8,473         3,600        10,413 
Mortgages held for sale                    108,565       330,667       230,470 

Investment securities available                                                
  for sale                               3,047,713     2,322,101             - 
Investment securities held to                                                  
  maturity (estimated fair value                                               
  of $4,864,287 at 9/30/94,                                                    
  $4,030,492 at 12/31/93 and                                                   
  $6,464,853 at 9/30/93)                 5,081,797     3,977,450     6,320,251 
                                       -----------   -----------   ----------- 
     Total investment securities         8,129,510     6,299,551     6,320,251 
Commercial loans                         9,787,241     9,086,757     8,828,146 
International loans                      1,167,371     1,135,585     1,056,125 
Real estate construction loans             398,557       437,481       442,502 
Commercial mortgage loans                3,008,809     2,699,861     2,629,013 
Residential mortgage loans               2,289,889     1,856,822     1,937,542 
Consumer loans                           3,942,077     3,674,256     3,660,334 
Lease financing                            222,807       209,185       198,261 
                                       -----------   -----------   ----------- 
     Total loans                        20,816,751    19,099,947    18,751,923 
Less allowance for loan losses            (327,962)     (298,685)     (305,892)
                                       -----------   -----------   ----------- 
     Net loans                          20,488,789    18,801,262    18,446,031 
Premises and equipment                     440,254       399,123       384,686 
Customers' liability on acceptances                                            
  outstanding                               38,502        38,212        41,807 
Accrued income and other assets            852,725       703,501       682,459 
                                       -----------   -----------   ----------- 
     TOTAL ASSETS                      $31,803,589   $30,294,873   $28,469,936 
                                       ===========   ===========   =========== 
LIABILITIES AND SHAREHOLDERS' EQUITY                                           
Demand deposits (noninterest-                                                  
  bearing)                             $ 4,617,674   $ 4,939,234   $ 4,501,769 
Interest-bearing deposits               14,886,757    14,642,834    14,661,764 
Deposits in foreign offices                820,265     1,367,811     1,030,869 
                                       -----------   -----------   ----------- 
     Total deposits                     20,324,696    20,949,879    20,194,402 
Federal funds purchased and                                                    
  securities sold under                                                        
  agreements to repurchase               1,655,471       450,092       841,021 
Other borrowed funds                     3,528,471     4,950,507     3,681,190 
Acceptances outstanding                     38,502        38,212        41,807 
Accrued expenses and other                                                     
  liabilities                              268,353       263,969       234,919 
Long-term debt                           3,602,381     1,460,556     1,267,309 
                                       -----------   -----------   ----------- 
     Total liabilities                  29,417,874    28,113,215    26,260,648 
Common stock - $5 par value:                                                   
  Authorized - 250,000,000 shares                                              
  Issued-119,294,531 shares at                                                 
    9/30/94, 119,294,531 shares                                                
    at 12/31/93, and 120,081,660                                               
    shares at 9/30/93                      596,473       596,473       600,408 
Capital surplus                            524,915       524,186       541,449 
Unrealized gains/(losses) on investment                                        
  securities available for sale            (33,772)       27,473             - 
Retained earnings                        1,331,379     1,155,280     1,097,941 
Less cost of common stock in                                                   
  treasury-1,193,179 shares at 9/30/94,                                        
  4,423,603 shares at 12/31/93 and                                             
  1,033,466 shares at 9/30/93              (33,280)     (121,754)      (30,510)
                                       -----------   -----------   ----------- 
     Total shareholders' equity          2,385,715     2,181,658     2,209,288 
                                       -----------   -----------   ----------- 
     TOTAL LIABILITIES AND                                                     
       SHAREHOLDERS' EQUITY            $31,803,589   $30,294,873   $28,469,936 
                                       ===========   ===========   =========== 

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                                                        · Enlarge/Download Table
CONSOLIDATED STATEMENTS OF INCOME                                                         
Comerica Incorporated and Subsidiaries                                                    

                                           Three Months Ended      Nine Months Ended      
                                              September 30           September 30         
                                          --------------------   ------------------------ 
(In thousands, except per share data)         1994        1993         1994          1993 
                                          --------    --------   ----------    ---------- 
                                                                                          
INTEREST INCOME                                                                           
Interest and fees on loans                $408,709    $349,516   $1,129,270    $1,038,193 
Interest on investment securities:                                                        
  Taxable                                  117,805      68,229      327,425       227,544 
  Exempt from federal income tax             7,358       9,724       23,445        31,654 
                                          --------    --------   ----------    ---------- 
       Total interest on investment                                                       
         securities                        125,163      77,953      350,870       259,198 

Trading account interest                        52          72          (18)          412 
Interest on federal funds sold and                                                        
  securities purchased under agreements                                                   
  to resell                                    642       1,077        4,095         3,403 
Interest on time deposits with banks         3,646       6,402       17,204        19,988 
Interest on mortgages held for sale          2,722       3,068        8,965        10,065 
                                          --------    --------   ----------    ---------- 
       Total interest income               540,934     438,088    1,510,386     1,331,259 

INTEREST EXPENSE                                                                          
Interest on deposits                       141,129     128,469      389,231       404,019 
Interest on short-term borrowings:                                                        
  Federal funds purchased and securities                                                  
     sold under agreements to repurchase    33,241       8,354       81,092        26,379 
  Other borrowed funds                      16,880      13,276       60,894        31,643 
Interest on long-term debt                  41,741      15,613       89,418        44,795 
Net interest rate swap income               (5,056)     (7,539)     (28,093)      (20,978)
                                          --------    --------   ----------    ---------- 
       Total interest expense              227,935     158,173      592,542       485,858 
                                          --------    --------   ----------    ---------- 
       Net interest income                 312,999     279,915      917,844       845,401 
Provision for loan losses                   14,000      15,000       44,000        55,000 
                                          --------    --------   ----------    ---------- 
       Net interest income after                                                          
         provision for loan losses         298,999     264,915      873,844       790,401 

NONINTEREST INCOME                                                                        
Income from fiduciary activities            29,019      29,311       91,738        91,175 
Service charges on deposit accounts         32,029      30,325       91,456        91,120 
Customhouse broker fees                     10,201      10,134       30,481        29,349 
Revolving credit fees                       10,200       9,195       28,557        26,003 
Securities gains                             1,581         526        2,363         1,567 
Other noninterest income                    33,608      30,523       99,415        91,986 
                                          --------    --------   ----------    ---------- 
       Total noninterest income            116,638     110,014      344,010       331,200 

NONINTEREST EXPENSES                                                                      
Salaries and employee benefits             138,456     133,118      406,407       403,213 
Net occupancy expense                       25,188      24,135       74,881        72,714 
Equipment expense                           16,313      15,714       49,570        46,090 
FDIC insurance expense                      11,106      10,758       33,129        33,699 
Other noninterest expenses                  72,052      70,096      215,711       205,832 
                                          --------    --------   ----------    ---------- 
       Total noninterest expenses          263,115     253,821      779,698       761,548 
                                          --------    --------   ----------    ---------- 
Income before income taxes                 152,522     121,108      438,156       360,053 
Provision for income taxes                  51,918      37,412      147,511       109,505 
                                          --------    --------   ----------    ---------- 
NET INCOME                                $100,604    $ 83,696   $  290,645    $  250,548 
                                          ========    ========   ==========    ========== 

Net income applicable to common stock     $100,604    $ 83,696   $  290,645    $  250,506 
                                          ========    ========   ==========    ========== 

NET INCOME PER SHARE:                                                                     
  Primary                                     $.84        $.70        $2.46         $2.09 
  Fully diluted                               $.84        $.70        $2.46         $2.08 
Primary average shares                     119,436     120,080      118,148       120,079 

Cash dividends declared                    $37,897     $33,291     $107,724       $93,284 
Dividends per share                           $.32        $.28         $.92          $.79 


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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY                       
Comerica Incorporated and Subsidiaries                                          

                                                        · Enlarge/Download Table

               Redeemable                       Unrealized                          Total        
               Preferred  Common     Capital    Gains/      Retained     Treasury   Shareholders'
(in thousands) Stock      Stock      Surplus    (Losses)    Earnings     Stock      Equity       
               ---------  ---------  ---------  ----------  -----------  --------   ------------ 
                                                                                                 
BALANCES AT                                                                                      
 JANUARY 1,                                                                                      
  1993         $ 37,605   $ 309,219  $ 538,097  $        -  $ 1,239,078  $ (28,862) $ 2,095,137  
Net income for                                                                                   
  1993                -           -          -           -      250,548          -      250,548  
Cash dividends                                                                                   
 declared:                                                                                       
  Preferred                                                                                      
   stock              -           -          -           -          (42)         -          (42) 
  Common stock        -           -          -           -      (93,284)         -      (93,284) 
Purchase of                                                                                      
 500,317 shares                                                                                  
 of common stock      -           -          -           -            -    (14,717)     (14,717) 
Retirement of                                                                                    
 treasury                                                                                        
 stock                -        (170)         -           -         (505)       675            -  
Issuance of                                                                                      
 common stock                                                                                    
 under employee                                                                                  
 stock plans                                                                                     
 and for                                                                                         
 conversion of                                                                                   
 debentures           -       3,780      2,846           -       (6,101)    12,394       12,919  
Stock split           -     287,579          -           -     (287,579)         -            -  
Amortization of                                                                                  
 deferred                                                                                        
 compensation         -           -        506           -            -          -          506  
Redemption of                                                                                    
 preferred                                                                                       
 stock          (37,605)          -          -           -       (4,174)         -      (41,779) 
               --------   ---------  ---------  ----------  -----------  ---------  -----------  
BALANCES AT                                                                                      
 SEPT. 30,                                                                                       
1993           $      -   $ 600,408  $ 541,449  $        -  $ 1,097,941  $ (30,510) $ 2,209,288  
               ========   =========  =========  ==========  ===========  ========== ===========  
BALANCES AT                                                                                      
 JANUARY 1,                                                                                      
  1994         $      -   $ 596,473  $ 524,186  $   27,473  $ 1,155,280  $(121,754) $ 2,181,658  
Net income for                                                                                   
 1994                 -           -          -           -      290,645          -      290,645  
Cash dividends                                                                                   
 declared on                                                                                     
 common stock         -           -          -           -     (107,724)         -     (107,724) 
Purchase of                                                                                      
 1,601,164                                                                                       
 shares of                                                                                       
 common stock         -           -          -           -            -    (43,892)     (43,892) 
Issuance of                                                                                      
 common stock:                                                                                   
  Employee                                                                                       
   stock plans        -           -        318           -       (2,964)     7,145        4,499  
  Acquisition                                                                                    
   of Pacific                                                                                    
   Western            -           -          -           -       (3,858)   125,221      121,363  
Amortization of                                                                                  
 deferred                                                                                        
 compensation         -           -        411           -            -          -          411  
Change in                                                                                        
 unrealized                                                                                      
 gains/(losses)                                                                                  
 on investment                                                                                   
 securities                                                                                      
 available for                                                                                   
 sale                 -           -          -     (61,245)           -          -      (61,245) 
               --------   ---------  ---------  ----------  -----------  ---------  -----------  
BALANCES AT                                                                                      
 SEPT. 30,                                                                                       
 1994          $      -   $ 596,473  $ 524,915  $  (33,772) $ 1,331,379  $ (33,280) $ 2,385,715  
               ========   =========  =========  ==========  ===========  ========== ===========  

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                                                                · Download Table
CONSOLIDATED STATEMENTS OF CASH FLOWS                                          
Comerica Incorporated and Subsidiaries                                         

                                                        Nine Months Ended      
                                                          September 30         
                                                   --------------------------- 
(in thousands)                                             1994           1993 
                                                   ------------   ------------ 
                                                                               
OPERATING ACTIVITIES:                                                          
  Net income                                       $    290,645   $    250,548 
  Adjustments to reconcile net income to net                                   
    cash provided by operating activities:                                     
      Provision for loan losses                          44,000         55,000 
      Depreciation                                       44,320         41,016 
      Net (increase) decrease in trading                                       
        account securities                               (4,873)        98,966 
      Net decrease in mortgages held for sale           222,102          4,242 
      Net increase in accrued income receivable         (26,289)        (1,540)
      Net increase (decrease) in accrued expenses       (20,113)        15,468 
      Net amortization of intangibles                    21,277         28,470 
      Other, net                                        (27,893)       (92,405)
                                                   ------------   ------------ 
         Total adjustments                              252,531        149,217 
                                                   ------------   ------------ 
           Net cash provided by operating                                      
             activities                                 543,176        399,765 
INVESTING ACTIVITIES:                                                          
  Net decrease in interest-bearing deposits                                    
    with banks                                          751,112        416,107 
  Net decrease in federal funds sold and                                       
    securities purchased under agreements                                      
    to resell                                         1,041,290         45,802 
  Proceeds from sale of investment securities                                  
    available for sale                                    1,509              - 
  Proceeds from maturity of investment                                         
    securities available for sale                       455,785              - 
  Purchases of investment securities                                           
    available for sale                               (1,147,791)             - 
  Proceeds from maturity of investment                                         
    securities held to maturity                       1,249,296      2,246,289 
  Purchases of investment securities                                           
    held to maturity                                 (2,125,409)    (3,332,236)
  Net increase in loans (other                                                 
    than purchased loans)                              (844,671)      (563,591)
  Purchase of loans                                    (227,192)       (20,226)
  Fixed assets, net                                     (65,452)       (51,411)
  Net increase in customers' liability                                         
    on acceptances outstanding                             (290)       (16,143)
  Net cash provided by acquisitions                      58,626              - 
                                                   ------------   ------------ 
           Net cash used in investing                                          
             activities                                (853,187)    (1,275,409)
FINANCING ACTIVITIES:                                                          
  Net decrease in deposits                           (1,802,852)    (1,005,116)
  Net increase (decrease) in short-term                                        
    borrowings                                          (77,988)     1,300,502 
  Net decrease in acceptances outstanding                   290         16,143 
  Proceeds from issuance of long-term debt            2,750,000        705,000 
  Repayments and purchases of long-term                                        
    debt                                               (608,175)      (173,788)
  Proceeds from issuance of common stock                                       
    and other capital transactions                        4,910          8,329 
  Purchase of common stock for treasury                 (43,892)       (14,717)
  Redemption of preferred stock                               -        (41,779)
  Dividends paid                                       (102,066)       (91,091)
                                                   ------------   ------------ 
           Net cash provided by financing                                      
             activities                                 120,227        703,483 
                                                   ------------   ------------ 
Net decrease in cash and due from banks                (189,784)      (172,161)
Cash and due from banks at beginning of year          1,600,695      1,579,742 
                                                   ------------   ------------ 
Cash and due from banks at end of period           $  1,410,911   $  1,407,581 
                                                   ============   ============ 
Interest paid                                      $    597,862   $    485,360 
                                                   ============   ============ 
Income taxes paid                                  $    127,851   $     85,512 
                                                   ============   ============ 
Noncash investing and financing activities:                                    
  Loan transfers to other real estate              $     12,241   $     27,086 
                                                   ============   ============ 
  Conversion of debentures to equity               $          -   $      5,095 
                                                   ============   ============ 
  Treasury stock issued for acquisition            $    121,363   $          - 
                                                   ============   ============ 
  Loan transfer to investment securities           $     91,538   $          - 
                                                   ============   ============ 

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 1 - Basis of Presentation                                                  
The accompanying unaudited financial statements have been prepared  
in accordance with generally accepted accounting principles for interim         
financial information and with the instructions to Form 10-Q and Article        
10 of Regulation S-X.  Accordingly, they do not include all of the              
information and footnotes required by generally accepted accounting             
principles for complete financial statements.  In the opinion of                
management, all adjustments (consisting of normal recurring accruals)           
considered necessary for a fair presentation have been included.                
Operating results for the nine months ended September 30, 1994 are not          
necessarily indicative of the results that may be expected for the year         
ended December 31, 1994.  For further information, refer to the                 
consolidated financial statements and footnotes thereto included in the         
Comerica Incorporated and Subsidiaries' annual report on Form 10-K for the      
year ended December 31, 1993.                                                   

Note 2 - Investment Securities                                                  
At September 30, 1994 investment securities having a carrying value 
of $6,175,807,000 were pledged where permitted or required by law to            
secure liabilities and public and other deposits including deposits of the      
State of Michigan of $34,738,000.                                               

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 3 - Allowance for Loan Losses                                              
The following analyzes the changes in the allowance for loan losses 
included in the consolidated balance sheets:                                    

                                                                · Download Table

                                     1994         1993 
(in thousands)                  ---------    --------- 
                                                       
Balance at January 1            $ 298,685    $ 308,007 
Allowance acquired                 19,467            - 
Loans charged off                 (60,863)     (81,193)
Recoveries on loans previously                         
  charged off                      26,673       24,078 
                                ---------    --------- 
  Net loans charged off           (34,190)     (57,115)
Provision for loan losses          44,000       55,000 
                                ---------    --------- 
Balance at September 30         $ 327,962    $ 305,892 
                                =========    ========= 

Note 4 - Long-term Debt                                                         

Long-term debt consisted of the following at September 30, 1994 and 
December 31, 1993:                                                              

                                                                · Download Table


(in thousands)                       Sept. 30, 1994      Dec. 31, 1993  
                                     --------------    -----------------
                                                                        
9.75% subordinated notes                                                
  due 1999                           $   74,579        $   74,511       
10.125% subordinated debentures                                         
  due 1998                               74,701            74,641       
                                     ----------        ----------       
      Total Parent Company              149,280           149,152       

8.375% subordinated notes due 2024      147,690                 -       
7.25% subordinated notes due 2002       148,738           148,619       
Medium-term fixed rate notes bearing                                    
  interest at rates ranging from 3.35%                                  
  to 5.95% and maturing on dates                                        
  ranging from 1994 through 1997      2,898,785           904,285       
6.875% subordinated notes due 2008       98,970            98,913       
7.125% subordinated notes due 2013      147,862           147,779       
FDIC subordinated note due 1994                                         
  to 1995                                 9,000             8,941       
Notes payable bearing interest at                                       
  rates ranging from 6.29% to 13%                                       
  and maturing on dates ranging from                                    
  1994 through 1996                       2,056             2,867       
                                     ----------        ----------       
      Total Subsidiaries              3,453,101         1,311,404       
                                     ----------        ----------       
Total Comerica Incorporated          $3,602,381        $1,460,556       
                                     ==========        ==========       

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 5 - Income Taxes                                                           

The provision for income taxes is computed by applying statutory    
federal income tax rates to income before income taxes as reported in the       
financial statements after deducting non-taxable items, principally             
interest income on state and municipal securities.                              

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives                                                            
The Corporation utilizes various types of derivative products,      
primarily interest rate swaps, to manage the interest rate, currency and        
other market risks associated with assets and liabilities.  The                 
Corporation's use of derivatives takes place predominately in the interest      
rate markets and involves the use of forwards, futures, swaps, caps,            
floors and options.   Corporate Policy allows only diminutive authority         
limits for trading derivatives and, therefore, related notional values and      
gains and losses are insignificant.                                             
The notional, or contractual, amounts of the Corporation's off-     
balance-sheet derivative instrument portfolio are not indicative of the         
potential for gain or loss on such positions.  Likewise, notional amounts       
do not represent the credit or market risks of the positions held.  Credit      
risk is measured as the cost of replacing, at current market rates,             
contracts in an unrealized gain position.  In order to minimize credit          
risk exposure, the Corporation evaluates the creditworthiness of all off-       
balance-sheet counterparties adhering to the same standards used in other       
credit transactions.  In addition, Bilateral Collateral Agreements are in       
place with a substantial number of counterparties in order to minimize          
credit risk exposure and secure amounts due.  At September 30, 1994 and         
December 31, 1993, the replacement cost of uncollaterized off-balance-          
sheet derivatives in an unrealized gain position approximated $12 million       
and $66 million, respectively.                                                  
All of the Corporation's derivative contracts, excluding futures    
contracts which are exchange-traded, have been transacted with either           
major investment banks or commercial banks, resulting in some degree of         
liquidity.  Since the Corporation uses derivatives to alter the interest        
and foreign exchange rate characteristics of underlying assets and              
liabilities, termination of a contract would be an unlikely event, and the      
Corporation always has the option of offsetting a contract with an              
opposite effect derivative product.                                             

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives (Continued)                                                
Summary information with respect to the Corporation's off-balance-  
sheet derivative activity follows:                                              

                                                                · Download Table

                                  Nine Months                 
                                     Ended        Year Ended  
                                 September 30,    December 31,
(in millions)                         1994            1993    
                                 ------------     ------------
                                                              
Notional balance at                                           
  beginning of period              $  4,414         $  3,025  
Additions                            35,816           51,622  
Maturities/Amortizations            (35,138)         (50,233) 
Terminations                              -                -  
                                   --------         --------  
Notional balance at end of period  $  5,092         $  4,414  
                                   ========         ========  

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Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives (Continued)                                                
The notional and fair values of the Corporation's off-balance-sheet 
derivatives instrument portfolio are shown below:                               

                                                                · Download Table

                               September 30, 1994    December 31, 1993  
                               -------------------  ------------------- 
                               Notional       Fair  Notional       Fair 
(in millions)                     Value      Value     Value      Value 
                               --------     ------  --------     ------ 
                                                                        
Interest rate contracts                                                 
  Swaps:                                                                
    Variable rate asset                                                 
     designation:                                                       
       Generic receive fixed   $   50       $    1  $  550       $   18 
       Amortized receive                                                
         fixed                    328          (23)      -            - 
       Index amortized                                                  
         receive fixed          2,008         (116)  1,883           24 

    Fixed rate asset                                                    
     designation:                                                       
       Generic receive fixed       21            -     121            - 
       Generic pay fixed          195            -     600          (13)
       Amortized receive fixed     17            -      21            - 
       Amortized pay fixed          8            -       9            - 

    Long-term debt designation:                                         
       Generic receive fixed      675          (36)    375           14 
       Generic pay fixed           25           (1)     25           (2)
       Floating/Floating          675           (1)     50            - 

  Futures and forwards              -            -      65           63 

  Caps written and purchased      355            3     339            1 
                               ------       ------  ------       ------ 
    Total interest rate                                                 
      contracts                $4,357       $ (173) $4,038       $  105 

Foreign exchange rate                                                   
  contracts                                                             
    Generic receive variable                                            
      swap                         15            1      20            - 
    Spot, forwards, and                                                 
      futures                     708            2     356            1 
                               ------       ------  ------       ------ 
    Total exchange rate                                                 
      contracts                   735            3     376            1 
                               ------       ------  ------       ------ 
Total derivatives contracts    $5,092       $ (170) $4,414       $  106 
                               ======       ======  ======       ====== 

10-Q 12th Page of 28 TOC 1st Previous Next Bottom Just 12th

Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives (Continued)                                                
The Corporation uses off-balance-sheet derivative products to manage
on-balance-sheet exposure to changes in interest and foreign exchange rate      
risks; therefore, the unrealized gains or losses on derivatives are offset      
by the opposite effect to on-balance-sheet items.  Unrealized gains and         
losses on off-balance-sheet derivative products at September 30, 1994 and       
December 31, 1993, are summarized as follows:                                   

                                                                · Download Table

                                      September 30,    December 31, 
(in millions)                                1994           1993    
                                      -------------     ------------
                                                                    
  Off-Balance-Sheet Derivatives:                                    
      Unrealized gains                    $  15             $ 69    
      Unrealized losses                    (188)             (23)   
                                          -----             ----    
      Net unrealized gain (loss)          $(173)            $ 46    
                                          =====             ====    

Interest rate swap agreements involve the exchange of fixed and     
floating rate interest payments based on an underlying notional amount,         
and constitute a major portion of the Corporation's derivative portfolio.       
The Corporation utilizes swaps as an end-user to manage risk; therefore,        
net interest income is recognized as it accrues.  For the nine months           
ended September 30, 1994, interest rate swaps generated $28 million of net      
interest income, compared to $21 million for the same period in 1993, and       
$32 million for the year ended December 31, 1993.                               

10-Q 13th Page of 28 TOC 1st Previous Next Bottom Just 13th

Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives (Continued)                                                
The table below summarizes the expected maturities and weighted     
average interest rates to be paid and received on the Corporation's             
interest rate swap portfolio as of September 30, 1994.  A key assumption        
in the calculation of the table is that rates remain constant at September      
30, 1994 levels.                                                                

                                                                · Download Table


                                                            1999-        
(in millions)            1994   1995   1996   1997   1998   2013   Total 
                        -----  -----  -----  -----  -----  -----  ------ 
Remaining Expected Maturity of Interest Rate Swaps:                      

                                                                         

Generic Receive Fixed                                                    
---------------------                                                    
Notional Amount           $21    $75    $50    $50     $-   $550    $746 
Weighted Average:                                                        
  Receive Rate           5.85%  3.71%  8.00%  9.35%     -%  7.69%   7.37%
  Pay Rate               4.81   4.81   5.13   4.88      -   5.29    5.19 

Generic Pay Fixed                                                        
-----------------                                                        
Notional Amount           $10   $148    $60     $-     $-     $2    $220 
Weighted Average:                                                        
  Receive Rate           4.88%  5.03%  5.10%     -%     -%  5.00%   5.04%
  Pay Rate               6.68   7.49   7.56      -      -   8.73    7.48 

Amortizing Receive                                                       
Fixed-Generic                                                            
-------------                                                            
Notional Amount           $31    $98    $24    $84   $100     $8    $345 
Weighted Average:                                                        
  Receive Rate           4.75%  4.75%  4.58%  4.75%  4.75%  6.29%   4.77%
  Pay Rate               4.88   4.88   4.88   4.88   4.88   4.81    4.88 

Amortizing Receive                                                       
Fixed-Index                                                              
-----------                                                              
Notional Amount          $129   $384   $352   $774    $94   $275  $2,008 
Weighted Average:                                                        
  Receive Rate           5.43%  5.49%  5.46%  5.19%  5.78%  5.70%   5.41%
  Pay Rate               4.97   4.96   4.95   4.89   5.04   5.06    4.95 

Amortizing Pay Fixed                                                     
--------------------                                                     
Notional Amount            $-     $-     $-     $-     $-     $8      $8 
Weighted Average:                                                        
  Receive Rate              -%     -%     -%     -%     -%  4.81%   4.81%
  Pay Rate                  -      -      -      -      -   6.19    6.19 

Floating/Floating                                                        
-----------------                                                        
Notional Amount          $200   $475     $-     $-     $-     $-    $675 
Weighted Average:                                                        
  Receive Rate           1.75%  4.74%     -%     -%     -%     -%   3.85%
  Pay Rate               4.86   5.27      -      -      -      -    5.15 

10-Q 14th Page of 28 TOC 1st Previous Next Bottom Just 14th

Notes to Consolidated Financial Statements                                      
Comerica Incorporated and Subsidiaries                                          

Note 6 - Derivatives (Continued)                                                
The Corporation's index amortizing swaps are interest rate swaps    
whose notional principal amortizes, or decreases, at a rate that varies         
with the level of a specified index according to a predetermined schedule.      
The majority of these swaps are indexed to short-term interest rates.           
Currently, the expected average life of all index amortizing swaps is           
approximately 2 years with a stated maturity that averages 3 years.             
LIBOR is the basis of the variable rate portion of all the          
Corporation's interest rate swaps.  The Corporation's basis swaps               
(receiving floating/paying floating) convert variable rate debt based on        
prime and Treasury bills as well as range-based floating rate debt into         
variable rate debt based on LIBOR.                                              

10-Q 15th Page of 28 TOC 1st Previous Next Bottom Just 15th


ITEM 2.  Management's Discussion and Analysis of Results of Operations and      
Financial Condition                                           

Results of Operations                                                           

Comerica Incorporated reported net income of $101 million for the   
third quarter of 1994, an increase of 20 percent compared to $84 million        
reported for the comparable period in 1993.  Net income was $0.84 per           
share for the third quarter of 1994, compared to $0.70 per share a year         
ago.  Return on average common shareholders' equity was 17.11 percent and       
return on average assets was 1.27 percent for the third quarter, compared       
to 15.44 percent and 1.25 percent, respectively, for the same period in         
1993.                                                                           
Net income for the nine months ended September 30, 1994, was $2.46  
per share, or $291 million, representing an 18 percent increase per share       
from net income of $2.09 per share, or $251 million, for the corresponding      
period in 1993.  Return on equity was 16.94 percent and return on assets        
was 1.24 percent, compared to 15.73 percent and 1.25 percent,                   
respectively, for the first nine months in 1993.                                

Acquisitions                                                                    

On March 31, 1994, the Corporation completed the acquisition of the 
$1 billion Pacific Western Bancshares (Pacific Western) in San Jose,            
California, for $121 million of common stock, in a transaction accounted        
for as a purchase.  The second quarter was the first to include the             
operating results of Pacific Western.                                           
On August 4, 1994, the Corporation completed the acquisition of     
Lockwood Banc Group (Lockwood), in Houston, Texas, for $44 million in           
cash.  The transaction was accounted for as a purchase.  The financial          
condition of the corporation at September 30, 1994, reflects Lockwood's         
contribution of $324 million in assets, $179 million in loans, and $273         
million in deposits.                                                            

10-Q 16th Page of 28 TOC 1st Previous Next Bottom Just 16th

Net Interest Income                                                             
Net interest income for the third quarter of 1994, on a fully       
taxable equivalent (FTE) basis, rose to $319 million, an increase of $31        
million, or 11 percent, versus the comparable period a year earlier.  The       
rise in net interest income, primarily caused by acquisitions and strong        
growth in earning assets, was partially offset by a decline in the net          
interest margin.  Total average earning assets increased $5 billion, or 19      
percent, compared to last year's third quarter, due to acquisitions and         
growth in the commercial, residential mortgage, and international loan          
portfolios as well as the investment securities portfolio.  Average loans       
were up $2 billion, or 11 percent, while average investment securities          
rose $3 billion, or 61 percent.  The net interest margin fell 31 basis          
points to 4.35 percent from 4.66 percent a year ago, because growth in          
earning assets was funded by short-term liabilities.  These funding             
sources yield a lower rate spread than deposit funding sources.                 
For the first nine months of 1994, net interest income on an FTE    
basis totaled $936 million, an increase of $68 million, or 8 percent,           
compared to the same period in 1993.  Average investment securities for         
the nine months ended September 30, 1994, increased $3 billion, or 53           
percent, over the comparable period in 1993, while total average earning        
assets increased $4 billion, or 17 percent, resulting in a more desirable       
mix of earning assets.  Average loans increased $2 billion, or 9 percent,       
due primarily to acquisitions and greater consumer demand.  The net             
interest margin decreased 38 basis points to 4.34 percent for the first         
nine months of 1994 from 4.72 percent for the same period in 1993, because      
earning asset growth was funded by short-term liabilities which produce a       
lower rate spread than deposits.                                                
The Corporation, which was asset sensitive by approximately $50     
million (after elasticity adjustments) as of September 30, 1994, expects        
to become more asset sensitive during the fourth quarter of 1994 as             
investment securities continue to runoff and the mix of earning assets          
moves toward a greater concentration of higher-yielding loans.                  

10-Q 17th Page of 28 TOC 1st Previous Next Bottom Just 17th

The Rate-Volume Analyses, in Tables I and II, indicate the          
components of the change in net interest income (FTE), quarterly and year-      
to-date.                                                                        

Provision for Loan Losses                                                       
The provision for loan losses was $14 million in the third quarter  
of 1994 versus $15 million in the third quarter of 1993.  For the nine          
months ended September 30, 1994, the provision was $44 million compared to      
$55 million in the same period last year.  The provision is predicated          
upon maintaining an adequate allowance for loan losses, which is further        
discussed in the section entitled "Financial Condition."  The reduction in      
the provision from prior year is due to a lower level of charge-offs as         
well as continued improvement in the quality of the loan portfolio.             

10-Q 18th Page of 28 TOC 1st Previous Next Bottom Just 18th

                                                        · Enlarge/Download Table
TABLE I - QUARTERLY ANALYSIS OF NET INTEREST INCOME & RATE/VOLUME (FTE)                       

                                                      Three Months Ended                      
                                 -------------------------------------------------------------
                                       September 30, 1994             September 30, 1993      
                                 -----------------------------   -----------------------------
                                 Average              Average    Average              Average 
(in millions)                    Balance   Interest      Rate    Balance   Interest      Rate 
----------------------------------------------------------------------------------------------
                                                                                              
Loans                            $20,463     $  411      7.99%   $18,394     $  351      7.60%
Investment securities              8,228        129      6.24      5,114         84      6.55 
Other earning assets                 479          7      5.92      1,086         11      3.94 
----------------------------------------------------------------------------------------------
   Total earning assets           29,170        547      7.45     24,594        446      7.22 

Interest-bearing deposits         16,743        136      3.34     15,967        121      3.19 
Short-term borrowings              4,361         50      4.61      2,890         21      3.00 
Long-term debt                     3,185         42      5.24      1,090         16      5.74 
----------------------------------------------------------------------------------------------
   Total interest-bearing                                                                     
     sources                     $24,289        228      3.73    $19,947        158      3.15 
                                             -----------------               -----------------

Net interest income/                                                                          
  Rate spread (FTE)                          $  319      3.72                $  288      4.07 
                                             ======                          ======           

FTE adjustment                               $    6                          $    8           
                                             ======                          ======           
Impact of net noninterest-                                                                    
  bearing sources of funds                               0.63                            0.59 
----------------------------------------------------------------------------------------------
Net interest margin as a percent                                                              
  of average earning assets (FTE)                        4.35%                           4.66%
==============================================================================================

                                            Increase   Increase                               
                                           (Decrease) (Decrease)     Net                      
                                             Due to     Due to    Increase                    
                                              Rate      Volume*  (Decrease)                   
                                           ---------- ---------- ----------                   
(in millions)                                                                                 

Loans                                        $   19     $   41   $    60                      
Investment securities                             2         43        45                      
Other earning assets                              5         (9)       (4)                     
                                             ------------------------------                   
   Total earning assets                          26         75       101                      

Interest-bearing deposits                         8          7        15                      
Short-term borrowings                            12         17        29                      
Long-term debt                                   (1)        27        26                      
                                             ------------------------------                   
   Total interest-bearing sources                19         51        70                      
                                             ------------------------------                   

Net interest income/Rate spread (FTE)        $    7     $   24   $    31                      
                                             ==============================                   

* Rate/Volume variances are allocated to variances due to volume.                             


10-Q 19th Page of 28 TOC 1st Previous Next Bottom Just 19th

                                                        · Enlarge/Download Table
TABLE II - YEAR-TO-DATE ANALYSIS OF NET INTEREST INCOME & RATE/VOLUME (FTE)                    

                                                      Nine Months Ended                        
                                 ------------------------------------------------------------- 
                                      September 30, 1994              September 30, 1993       
                                 -----------------------------   ----------------------------- 
                                 Average              Average    Average              Average  
(in millions)                    Balance   Interest      Rate    Balance   Interest      Rate  
---------------------------------------------------------------------------------------------- 
                                                                                               
Loans                            $19,825     $1,135      7.65%   $18,143     $1,044      7.69% 
Investment securities              7,996        363      6.06      5,239        276      7.03  
Other earning assets                 931         30      4.34      1,161         34      3.91  
---------------------------------------------------------------------------------------------- 
   Total earning assets           28,752      1,528      7.10     24,543      1,354      7.37  

Interest-bearing deposits         16,641        361      3.13     16,384        383      3.30  
Short-term borrowings              4,948        142      3.84      2,655         58      2.92  
Long-term debt                     2,298         89      5.19      1,004         45      5.95  
---------------------------------------------------------------------------------------------- 
   Total interest-bearing                                                                      
     sources                     $23,887        592      3.32    $20,043        486      3.24  
                                             -----------------               ------------------

Net interest income/                                                                           
  Rate spread (FTE)                          $  936      3.78                $  868      4.13  
                                             ======                          ======            

FTE adjustment                               $   18                          $   23            
                                             ======                          ======            
Impact of net noninterest-bearing                                                              
  sources of funds                                       0.56                            0.59  
---------------------------------------------------------------------------------------------- 
Net interest margin as a percent of                                                            
  average earning assets (FTE)                           4.34%                           4.72% 
============================================================================================== 

                                            Increase   Increase                                
                                           (Decrease) (Decrease)     Net                       
                                             Due to     Due to    Increase                     
                                              Rate      Volume*  (Decrease)                    
                                           ---------- ---------- ----------                    
(in millions)                                                                                  

Loans                                        $    3     $   88    $   91                       
Investment securities                           (22)       109        87                       
Other earning assets                              3         (7)       (4)                      
                                             ------------------------------                    
   Total earning assets                         (16)       190       174                       

Interest-bearing deposits                       (25)         3       (22)                      
Short-term borrowings                            18         66        84                       
Long-term debt                                   (6)        50        44                       
                                             ------------------------------                    
   Total interest-bearing sources               (13)       119       106                       
                                             ------------------------------                    

Net interest income/Rate spread (FTE)        $   (3)    $   71    $   68                       
                                             ==============================                    

* Rate/Volume variances are allocated to variances due to volume.                              


10-Q 20th Page of 28 TOC 1st Previous Next Bottom Just 20th

Noninterest Income                                                              
Noninterest income rose $2 million, after adjusting for the         
acquisitions of Pacific Western and Lockwood, to $112 million in the            
third quarter of 1994, a 2 percent increase versus the comparable period        
in 1993.                                                                        
The sale of international assets generated $1.5 million in gains    
during the third quarter of 1994.  Other noninterest income increased $2        
million, or 8 percent, primarily due to a $3.7 million gain on the sale         
of originated mortgage servicing rights (OMSRs).  These increases were          
offset by a $1.5 million decline in fee income from fiduciary                   
activities, service charges on deposits, and bank cards.                        
On a year-to-date basis, noninterest income rose $4 million, or     
one percent, to $335 million, excluding the income associated with the          
acquisitions of Pacific Western and Lockwood.  Increases in gains on the        
sale of securities and income from mortgage-related activities were the         
primary contributors to this growth.                                            
Gains realized on the sale of securities increased over the prior   
year nine-month period due to the sale of international assets as               
previously discussed.  Other noninterest income increased $6 million, or        
6 percent, over the corresponding period in 1993, benefiting from higher        
levels of mortgage-related income due to a $7 million gain on the sale          
of OMSRs.  However, these increases were offset by a $3.7 million               
decrease in income generated from trust fees and service charges on             
deposits.                                                                       

Noninterest Expenses                                                            
Exclusive of the Pacific Western and Lockwood acquisitions,         
noninterest expenses decreased $5 million to $249 million for the third         
quarter of 1994, a 2 percent reduction from the same period in 1993, led        
by decreases in staff expenses and other noninterest expenses.                  
Salaries and employee benefits expenses declined $0.8 million,      
excluding acquisitions, compared to the third quarter of 1993,                  
benefiting from decreases in temporary staffing requirements as merger-         
related systems conversions are completed.                                      

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Other noninterest expenses decreased $4 million, or 6 percent, on   
a quarter-to-quarter basis after adjusting for acquisitions, primarily          
due to a $2.3 million decrease in consultants fees as the need for              
merger-related consultation diminishes, and a $1.3 million reduction in         
legal fees caused mainly by a recovery in the third quarter of 1994 of          
fees expensed in prior years.                                                   
Excluding the expenses associated with the acquisitions of Pacific  
Western and Lockwood, noninterest expenses decreased $8 million, or one         
percent, to $754 million for the nine months ended September 30, 1994,          
versus the comparable period a year ago.  This decrease was primarily           
the result of reductions in salaries and employee benefits and other            
noninterest expenses.  These reductions, however, were offset by an             
increase in equipment expense.                                                  
Salaries and employee benefits expenses, on a year-to-date basis    
and excluding acquisitions, fell $8 million, or 2 percent, versus the           
first nine months of 1993, benefiting from a significant reduction in           
temporary staffing requirements related to the merger and $4 million of         
income received in connection with company-owned life insurance policies        
which have been in effect for approximately one year.                           
The year-to-date increase in equipment expense of $3 million, or 6  
percent, after adjusting for acquisitions, was a result of higher levels        
of depreciation expense related to newly acquired computer systems.             
Other noninterest expenses through September 30, 1994, decreased    
$1 million from the comparable period in 1993, excluding the impact of          
acquisitions, led by reductions in consultants fees and legal fees as           
previously discussed.                                                           

10-Q 22nd Page of 28 TOC 1st Previous Next Bottom Just 22nd

Provision for Income Taxes                                                      
The provision for income taxes in the first nine months of 1994     
and 1993 totaled $148 million and $110 million, respectively, an                
increase of $38 million, or 35 percent.  The provision for income taxes         
differs from taxes calculated at the statutory rate, predominately due          
to tax-exempt income earned on state and municipal securities.                  

Financial Condition                                                             
Total assets at September 30, 1994, rose $1.5 billion to $31.8      
billion, a 5 percent increase since December 31, 1993.                          
Earning assets grew 6 percent, or $1.5 billion, since year-end      
1993, led by increases in the loan and investment securities portfolios,        
and partially offset by declines in interest-bearing deposits with banks        
and federal funds sold.                                                         
Investment securities increased $1.1 billion, or 28 percent, since  
year-end 1993, largely as a result of increased purchases of U.S.               
Government Agency securities, which offer superior credit quality and           
relatively attractive yields.                                                   
The $1.7 billion, or 9 percent, increase in the loan portfolio      
since December 31, 1993, was concentrated in commercial loans, which            
increased $700 million; commercial and residential mortgage loans, which        
increased $742 million; and consumer loans, which increased $267                
million.  The increases were attributable to acquisitions, strong demand        
for commercial loans, the purchase of two residential mortgage loan             
portfolios since year-end 1993, and growth in consumer demand for bank          
card and home equity loans.                                                     
Liabilities increased $1.3 billion, or 5 percent, to $29.4 billion  
since December 31, 1993, mainly due to acquisitions.  Increases in              
federal funds purchased and long-term debt occurred to provide an               
alternate source of funding in light of declines in the deposit base.           
These increases were partially offset by decreases in other borrowed            
funds and noninterest-bearing and foreign office deposits.                      

10-Q 23rd Page of 28 TOC 1st Previous Next Bottom Just 23rd

Despite a $1.2 billion increase in federal funds purchased and      
securities sold under agreements to repurchase, short-term borrowings           
declined $217 million, or 4 percent, since December 31, 1993, due               
primarily to a decrease in the purchase of treasury, tax and loan funds         
within other borrowed funds totaling $1.6 billion.                              
The Corporation's long-term debt increased $2.1 billion since       
year-end 1993, primarily because of the issuance of $2.6 billion of             
medium-term notes and $150 million of subordinated notes.  This increase        
was partially offset by the maturity of $605 million of medium-term             
notes.  An analysis of long-term debt is contained in the notes to the          
consolidated financial statements.                                              

Allowance for Loan Losses and Nonperforming Assets                              
The allowance for loan losses was $328 million at September 30,     
1994, an increase of $29 million, or 10 percent, since December 31,             
1993.  As a percentage of total loans, the allowance was 1.58 percent at        
September 30, 1994, compared to 1.56 percent at December 31, 1993.  Net         
charge-offs were $11 million for the third quarter of 1994, and $17             
million for the comparable period a year ago.  For the nine months ended        
September 30, 1994 and 1993, net charge-offs totaled $34 million and $57        
million, respectively.  An analysis of the allowance for loan losses is         
contained in the notes to the consolidated financial statements.                
Management determines the adequacy of the allowance for loan        
losses by applying projected loss ratios to the risk-ratings of loans,          
both individually and by category.  The projected loss ratios                   
incorporate a variety of factors such as recent loss experience, current        
economic conditions, trends in past due and nonaccrual amounts, risk            
characteristics of the various categories and concentrations of loans,          
and other factors.                                                              

10-Q 24th Page of 28 TOC 1st Previous Next Bottom Just 24th

Nonperforming assets increased $5 million compared to December 31,  
1993, and were categorized as follows:                                          

                                                                · Download Table


(in thousands)                   Sept. 30, 1994    Dec. 31, 1993
                                 --------------    -------------
                                                                
Nonaccrual loans:                                               
  Commercial                     $  67,865         $  71,268    
  International                          -               215    
  Real estate construction           3,476            18,748    
  Real estate mortgage                                          
    (principally commercial)        88,240            63,688    
                                 ---------         ---------    
       Total nonaccrual loans      159,581           153,919    
Reduced-rate loans                   2,477             5,057    
                                 ---------         ---------    
       Total nonperforming loans   162,058           158,976    
Other real estate                   51,659            50,174    
                                 ---------         ---------    
  Total nonperforming assets     $ 213,717         $ 209,150    
                                 =========         =========    
Loans past due 90 days           $  46,607         $  45,880    
                                 =========         =========    

Nonperforming assets as a percentage of total loans and other real  
estate at September 30, 1994 and December 31, 1993, were 1.02 percent           
and 1.09 percent, respectively.                                                 

Capital                                                                         
Shareholders' equity increased $204 million from December 31, 1993  
to September 30, 1994, principally through retention of earnings and the        
issuance of $126 million of common stock in connection with employee            
stock plans and the acquisition of Pacific Western in the first quarter         
of 1994.  The increase was partially offset by the repurchase of $44            
million of common stock (1,601,164 shares) and a $61 million decrease in        
unrealized gains (losses) on investment securities available for sale.          

10-Q 25th Page of 28 TOC 1st Previous Next Bottom Just 25th

Capital ratios continue to comfortably exceed minimum regulatory    
requirements and were as follows:                                               

                                                                · Download Table

                                         September 30,   December 31  
                                             1994            1993     
                                         -------------    ------------
                                                                      
Minimum leverage ratio (3.00 - minimum)       7.01%            7.04%  
Tier 1 risk-based capital                                             
  ratio (4.0 - minimum)                       8.40             8.21   
Total risk-based capital                                              
  ratio (8.0 - minimum)                      12.13            11.58   

At September 30, 1994, the capital ratios of all of the             
Corporation's banking subsidiaries exceeded the minimum ratios required         
of a "well capitalized" institution as defined in the final rule under          
FDICIA.                                                                         

Other Matters                                                                   
As disclosed in Part I, Item 3 of Form 10-K for the year ended      
December 31, 1993, a lawsuit was filed on July 24, 1990, by the State of        
Michigan against Manufacturers Bank, N.A. (which was merged with and            
into Comerica Bank in September 1992) seeking to impose strict, joint,          
and several liabilities upon Manufacturers Bank pursuant to the                 
Comprehensive Environmental Response, Compensation, and Liability Act           
("CERCLA"), the Resource Conservation and Recovery Act, and the Michigan        
Water Resources Commission Act.  Plaintiff alleged that Manufacturers           
Bank was an operator of certain facilities which have environmental             
problems and that Manufacturers Bank had indicia of ownership under             
CERCLA.  The facilities involved were actually owned and operated by            
Auto Specialties Manufacturing Company ("AUSCO"), now in bankruptcy.            
Plaintiff seeks cleanup costs and damages and has expressed the     
opinion that the claim will be well in excess of $30,000,000.  On               
January 12, 1993, the United States District Court for the Western              
District of Michigan granted Comerica Bank its motion for summary               
judgment.  The Attorney General has appealed the Court's order for              
summary judgment.  Comerica's management believes that this action will         

10-Q 26th Page of 28 TOC 1st Previous Next Bottom Just 26th

not have a materially adverse effect on the Corporation's consolidated          
financial position, although it may, depending upon the amount of               
ultimate liability, if any, and the consolidated results of operations          
in the year of final resolution, have a materially adverse effect on the        
consolidated results of operations in that year.                                
The Corporation entered into an Agreement and Plan of Merger on     
October 4, 1994, with the $422 million University Bank & Trust Company          
in Palo Alto, California, for the acquisition by Comerica of University         
Bank & Trust for approximately $73 million of Comerica common stock.            
Consummation of the transaction, subject to regulatory and shareholder          
approval, is expected in the second quarter of 1995, and is anticipated         
to be accounted for as a purchase.                                              
On November 4, 1994, the Corporation and Munder Capital Management  
announced a merger of the Corporation's investment advisory business            
with Munder Capital Management, Michigan's largest independent                  
investment advisor with assets under management totaling $8 billion.            
The merger will combine the Corporation's Woodbridge Capital Management         
and World Asset Management subsidiaries and Munder Capital Management,          
forming a money management firm with $30 billion in assets under                
management.  Munder Capital Management will hold a majority interest in         
the resulting partnership, which will retain the Munder Capital                 
Management name, and Comerica will hold a minority interest.   The              
merger is subject to regulatory approval, which is expected by year-end.        

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PART II                                                                         

ITEM 6.  Exhibits                                                               

(a)  Exhibits                                                                   

11.  Statements re:  computation of earnings per share                

(b)  Reports on Form 8-K                                                        

None                                                                  

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                           SIGNATURE

  Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the        
undersigned thereunto duly authorized.                                          

COMERICA INCORPORATED   
              --------------------------------------
(Registrant)            

/s/Paul H. Martzowka    
              --------------------------------------
Paul H. Martzowka       
    Executive Vice President and
Chief Financial Officer 
     (Principal Financial Officer)

/s/Arthur W. Hermann    
              --------------------------------------
Arthur W. Hermann       
            Senior Vice President and Controller
      (Principal Accounting Officer)

Date:  November 8, 1994

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Dates Referenced Herein and Documents Incorporated By Reference

		Referenced-On Page
This 10-Q Filing	Date	First	Last	Other Filings

	1/1/93	4
	1/12/93	25
	9/30/93	4	23
	12/31/93	6	25	10-K, 11-K
	1/1/94	4
	3/31/94	15		10-Q
	8/4/94	15
For The Period Ended	9/30/94	1	25
	10/4/94	26
	10/31/94	1
	11/4/94	26
	11/8/94	28
Filed On / Filed As Of	11/14/94
	12/31/94	6		10-K

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Filing Submission - Alternative Formats (Word / Rich Text, HTML, Plain Text, SGML, XML, et al.)

Comerica Inc/New · 10-Q · For 9/30/94

Filed On 11/14/94 · SEC File 1-10706 · Accession Number 28412-94-25

Quarterly Report · Form 10-QFiling Table of Contents

10-Q · Quarterly ReportDocument Table of Contents

Dates Referenced Herein and Documents Incorporated By Reference

Quarterly Report · Form 10-Q
Filing Table of Contents

10-Q · Quarterly Report
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