Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 33

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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 that generally exceed internal individual borrower credit risk limits. The Corporation seeks to develop full relationships with SNC borrowers. 

The following table summarizes information about loans in the Corporation's Energy business line.

June 30, 2025December 31, 2024(dollar amounts in millions)OutstandingsNonaccrualCriticized (a)OutstandingsNonaccrualCriticized (a)Exploration and production (E&P)$1,213 80  %$— $— $1,188 80  %$— $— Midstream305 20 — — 298 20 — — Total Energy business line$1,518 100  %$— $— $1,486 100  %$— $— 

(a)    Includes nonaccrual loans.

Loans in the Energy business line totaled $1.5 billion, or 3% of total loans, at June 30, 2025, an increase of $32 million compared to December 31, 2024. Total exposure, including unused commitments to extend credit and letters of credit, was $3.5 billion at June 30, 2025 (a utilization rate of 41%) and $3.5 billion at December 31, 2024 (a utilization rate of 41%). There were no nonaccrual or criticized Energy loans at both June 30, 2025 and December 31, 2024. There were no Energy net charge-offs for the three-month periods ended June 30, 2025 and March 31, 2025, nor the six months ended June 30, 2025, compared to net recoveries of $9 million for the six months ended June 30, 2024.

Leveraged Loans

Certain loans in the Corporation's commercial portfolio are considered leveraged transactions. These loans are typically used for mergers, acquisitions, business recapitalizations, refinancings and equity buyouts. To help mitigate the risk associated with these loans, the Corporation focuses on middle market companies with highly capable management teams, strong sponsors and solid track records of financial performance. Industries prone to cyclical downturns and acquisitions with a high degree of integration risk are generally avoided. Other considerations include the sufficiency of collateral, the level of balance sheet leverage and the adequacy of financial covenants. During the underwriting process, cash flows