Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 22

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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.6 billion and 11.35%, respectively, compared to $6.3 billion and 10.27%, respectively, for the three months ended December 31, 2024.

Basel III Endgame Framework

On July 27, 2023, the federal banking agencies issued a notice of proposed rulemaking, commonly referred to as Basel III Endgame (the Capital Proposal) that would significantly increase the capital requirements applicable to large banking organizations with total assets of $100 billion or more. The Capital Proposal would align the regulatory capital calculation and the calculation of risk-weighted assets across large banking organizations subject to the Capital Proposal and require Category III and IV banking organizations to include most components of accumulated other comprehensive income (AOCI), including net unrealized gains and losses on available-for-sale securities, in their regulatory capital ratios. 

As of June 30, 2025, the Corporation had total assets of $78.0 billion; therefore, the Capital Proposal would not apply to the Corporation as currently proposed. There remains significant uncertainty regarding the finalization and implementation of the Capital Proposal, and the Corporation will continue to monitor developments related thereto. If the Corporation becomes subject to the requirements of the Capital Proposal in the future or becomes subject to any other new laws or regulations related to capital and liquidity, such requirements could limit the Corporation’s ability to pay dividends or make share repurchases or require the Corporation to reduce business levels or to raise capital, which would have a material adverse effect on the Corporation’s financial condition and results of operations. If subject to the Capital Proposal, the estimated impact related to proposed inclusion of most components of AOCI would be an approximate 300 basis point decrease to CET1 as of June 30, 2025. 

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RISK MANAGEMENT

The following updated information should be read in conjunction with the "Risk Management" section on pages F-19 through F-35 in the Corporation's 2024 Annual Report.

Credit Risk

Allowance for Credit Losses

The allowance for credit losses includes both the allowance for loan losses and the allowance for credit losses on lending-related commitments. The following table presents metrics of the allowance for credit losses and nonperforming loans.

June 30, 2025December 31, 2024Allowance for credit losses as a percentage of total loans1.44%1.44%Allowance for credit losses as a multiple of total nonperforming loans3.0x2.4x

Stable credit metrics offset by elevated levels of uncertainty incorporated