Company: CMA
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000028412-25-000235
Chunk: 31

Company: COMERICA INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 31
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 decrease of $91 million compared to December 31, 2024. 

The Commercial Real Estate business line at September 30, 2025 was predominantly secured by multi-family and industrial properties, comprising 49% and 29% of the Corporation's portfolio, respectively, with only 4% secured by office properties. Commercial real estate loans in other business lines totaled $8.7 billion, or 48% of total commercial real estate loans, at September 30, 2025, a decrease of $43 million compared to December 31, 2024. These loans consisted primarily of owner-occupied commercial mortgages, which bear credit characteristics similar to non-commercial real estate business loans. Generally, loans previously reported as real estate construction are classified as commercial mortgage loans upon receipt of a certificate of occupancy.

The real estate construction loan portfolio primarily contains loans made to long-tenured customers with satisfactory completion experience. Criticized real estate construction loans in the Commercial Real Estate business line totaled $89 million at September 30, 2025 compared to $36 million at December 31, 2024. In other business lines, there were no criticized real estate construction loans at September 30, 2025 compared to $2 million at December 31, 2024. There were no net charge-offs of real estate construction loans for the three-month periods ended September 30, 2025 and June 30, 2025. For the nine months ended September 30, 2025, real estate construction loan net charge-offs were $7 million, compared to no net charge-offs for the nine months ended September 30, 2024.

Commercial mortgage loans are loans where the primary collateral is a lien on any real property and are primarily loans secured by owner-occupied real estate. Real property is generally considered primary collateral if the value of that collateral represents more than 50% of the commitment at loan approval. Loans in the commercial mortgage portfolio generally mature within three to five years. 

Criticized commercial mortgage loans in the Commercial Real Estate business line totaled $466 million and $379 million at September 30, 2025 and December 31, 2024, respectively. In other business lines, $530 million and $694 million of commercial mortgage loans were criticized at September 30, 2025 and December 31, 2024, respectively. There were no commercial mortgage net charge-offs for the three months ended September 30, 2025 compared to $2 million for the three