Company: CMA
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000028412-25-000235
Chunk: 108

Company: COMERICA INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 108
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 June 30, 2025, reflecting increases in Technology and Life Sciences and general Middle Market, partially offset by a decline in Corporate Banking. The provision for credit losses on lending-related commitments was $2 million for the three months ended September 30, 2025, compared to $1 million for the three months ended June 30, 2025.

The provision for credit losses is the amount recorded in earnings to adjust the allowance for credit losses to the level of expected losses estimated using the Corporation's current expected credit loss (CECL) model as of the end of the reporting period. As such, factors impacting the allowance for credit losses during the quarter indirectly determine the amount of provision expense recorded. The following is a summary of the changes to the major components of the allowance for credit losses during the three months ended September 30, 2025:

•Portfolio credit metrics were relatively stable as of September 30, 2025, with certain metrics improving marginally while others evidenced slight deterioration from June 30, 2025. Criticized loan balances and criticized loans as a percentage of total loans decreased by 3% and 14 basis points, respectively, while nonperforming assets increased by 2 basis points as a percentage of total loans and foreclosed property.  

•Economic forecasts as of September 30, 2025 were slightly improved compared to June 30, 2025, reflecting the incorporation of better-than-expected actuals for second quarter Gross Domestic Product (GDP) and slightly improved 

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projections for unemployment and bond spreads, offset by modestly weaker projections for GDP growth, across the reasonable and supportable period as of September 30, 2025 compared to June 30, 2025.

•The allowance for credit losses incorporates risks not captured in the underlying model, primarily forecast risk. In management's view, forecast risk at September 30, 2025 was relatively flat compared to June 30, 2025, as the impact of a government shutdown and judicial rulings related to evolving tariff policies led to continued uncertainty. These uncertainties considered by management have broad implications for the overall economy and also include the impacts of potentially prolonged inflation and the fiscal deficit, amongst other risks.

Further analysis of the allowance for credit losses, economic forecasts, and a summary of nonperforming assets are presented under the "Credit Risk" subheading in the "Risk Management" section of this financial review. 

Noninterest Income

Three Months Ended(in millions)September 30, 202