Company: CMA
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000028412-25-000235
Chunk: 15

Company: COMERICA INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 15
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22 to the consolidated financial statements in the Corporation's 2024 Annual Report describes the Corporation's segment reporting methodology.

Net interest income for each segment reflects the interest income generated by earning assets less interest expense on interest-bearing liabilities plus the net impact from associated internal funds transfer pricing (FTP) funding credits and charges. The FTP methodology allocates credits to each business segment for deposits and other funds provided as well as charges for 

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loans and other assets being funded. FTP crediting rates on deposits and other funds provided reflect the long-term value of deposits and other funding sources based on the behavioral characteristics of deposit types and corresponding liquidity that is provided. FTP charge rates for funding loans and other assets reflect a matched cost of funds based on the pricing and duration characteristics of the assets. As a result of applying matched funding, interest revenue for each segment resulting from loans and other assets is generally not impacted by changes in interest rates. Therefore, net interest income for each segment primarily reflects the volume of loans and other earning assets at the spread over the matched cost of funds, as well as the volume of deposits at the associated FTP crediting rates. Generally, in periods of rising interest rates, FTP charge rates for funding loans and FTP crediting rates on deposits will increase, with FTP crediting rates for deposits typically repricing at a slower pace than FTP charge rates for funding loans. Conversely, in periods of declining interest rates, FTP charge rates for funding loans and FTP crediting rates on deposits will decrease, with FTP crediting rates for deposits typically repricing at a slower pace than FTP charge rates for funding loans. 

Business Segments

The following sections present a summary of the performance of each of the Corporation's business segments for the nine months ended September 30, 2025 compared to the same period in the prior year.

Commercial Bank

Nine Months Ended September 30,PercentChange(dollar amounts in millions)20252024ChangeEarnings summary:Net interest income$1,378 $1,406 $(28)(2)%Provision for credit losses93 22 71 n/mNoninterest income427 442 (15)(3)Noninterest expenses 794 777 17 2 Provision for income taxes202 225 (23)(10)Net income$716 $824 $(108)(13)%Net charge-offs$80 $32 $48 n/mSelected average balances:Loans $43,047 $43,693 $(646)(1) %Dep