* Bank to cut 5 percent of jobs

* Freezing salaries for higher-paid workers

* Credit losses increase

NEW YORK, Jan 22 (Reuters) - Comerica Inc (CMA.N: Quote, Profile, Research), a large U.S. regional bank, on Thursday said it barely broke even in the fourth quarter, plans to cut 5 percent of its workforce by the end of March and will freeze salaries for higher-paid employees.

Net income for shareholders of the Dallas-based lender fell to $3 million, or 2 cents per share, from $119 million, or 79 cents, a year earlier, Comerica said. Excluding preferred stock dividends, profit fell 81 percent to $20 million.

Results included a 12 cents-per-share charge for severance-related costs, and a 5 cents-per-share benefit tied to a settlement over the sale of auction-rate securities.

Analysts on average expected profit of 25 cents per share excluding items, according to Reuters Estimates.

Comerica said it expects to eliminate roughly 509 jobs this quarter, on top of nearly 600 cuts since the end of 2007.

It is also freezing salaries in 2009 for the top 20 percent of its workforce. Comerica also plans to slow branch growth.