July 21, 2009 / 11:10 AM / 8 years ago

UPDATE 2-Comerica has second straight loss, soured loans up

* Real estate losses, Florida hurt overall results

* Q3 charge-offs similar to Q2, loss reserves to grow

* No more direct exposure to Chrysler, GM

* Shares up premarket (Recasts, adds financial details throughout)

NEW YORK, July 21 (Reuters) - Comerica Inc CMA.N, a large U.S. regional bank, posted its second straight quarterly loss, hurt by credit problems tied to residential real estate developers.

“The key credit issue for us remains in our commercial real estate line of business, predominantly residential real estate development,” Chief Executive Ralph Babb said in a statement.

He said “the prolonged recession has recently taken a toll on our residential real estate development portfolio” in Florida. But California has shown signs of stabilization.

Comerica’s net loss attributable to common shareholders was $16 million, or 10 cents per share, compared with a year-earlier profit of $56 million, or 37 cents, the Dallas-based bank said on Tuesday. Before preferred stock dividends, net income totaled $18 million for the quarter.

Analysts, on average, looked for a loss of 44 cents per share, according to Reuters Estimates.

Results included a charge of 22 cents per share for preferred stock dividends, and a charge to support a federal deposit insurance program.

Comerica has taken $2.3 billion from the U.S. government’s Troubled Asset Relief Program.

The bank set aside $308 million for credit losses, up from $202 million in the first quarter, while net charge-offs rose to $248 million from the first quarter’s $157 million.

Comerica said that “based on no significant further deterioration of the economic environment,” the bank expects net charge-offs to be similar in the third quarter and fall “modestly” in the fourth quarter.

It said its provision for credit losses will continue to exceed net charge-offs.

The bank also operates in Arizona, Michigan and Texas.

Babb also said Comerica no longer has direct exposure to automakers Chrysler or General Motors.

Comerica shares rose 18 cents to $23 in premarket trading. Through Monday, the stock was up 15 percent this year, while the KBW Bank Index .BKX was down 16 percent. (Reporting by Jonathan Stempel; Editing by Lisa Von Ahn and Jeffrey Benkoe)

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