Comerica is still looking for acquisitions despite the fact that it's going through a major restructuring.
Its chairman and chief executive, Eugene A. Miller, said in a recent interview that Comerica wants to expand in Michigan, its home, where it could boost its consumer and business banking operations.
The $34 billion-asset company is also interested in California and Texas, where it might buy small-business banks, he added.
Comerica is eliminating 16% of its work force in an effort to become more efficient and add $110 million in pretax savings by the end of this year. But Mr. Miller said the company is also focused on revenue growth. Part of its strategy is to expand in existing markets, particularly those in which it has a strong business banking presence, he said.
"We're always looking, but you have to make sure acquisitions make economic sense. You have to be selective, and you've got to have the currency to do it," Mr. Miller said.
Analysts said Comerica doesn't need to make an acquisition, but they are split on whether Mr. Miller is preparing his company to do a big deal.
Michael Moran, an analyst with Roney & Co., said he wouldn't be surprised if Comerica did a major deal by yearend.
He said the most compelling merger is between Comerica and $22 billion- asset First of America Bank Corp. of Kalamazoo, Mich. Mr. Moran said there could be significant cost savings, and Comerica would become a dominant retail and business bank throughout Michigan.
First of America officials declined to comment on the idea. Mr. Miller refused to talk about specific companies, but he acknowledged there could be opportunities in Michigan, despite all the consolidation there in the last 10 years.
Anthony Polini, an analyst with Advest Group, said he believes the company won't do a deal anytime soon. "I don't think they're looking for a major acquisition right now," he said. However, he said small companies- under $1 billion of assets-in Texas and California could make sense as fill-in acquisitions.
Mr. Miller said Comerica would be interested in buying small-business- oriented banks in California and Texas. About half of Comerica's business loans now come from those two states, he noted.
Mr. Miller said he is most interested in Dallas, Houston, and Austin, Tex., and in the Los Angeles or San Francisco areas.
Comerica is best known as a middle-market lender, but Mr. Miller said the company is also interested in small-business lending. Historically, Comerica has been a lender to small and midsize manufacturers, particularly those in businesses related to the auto industry.
