Company: CMA
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000028412-25-000235
Chunk: 107

Company: COMERICA INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 107
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Interest-bearing deposits15 9 24 Short-term borrowings— (4)(4)Medium- and long-term debt— (4)(4)Total interest expense15 1 16 Net interest income$(9)$8 $(1)

(a)Impact of additional days, other portfolio dynamics and interest rate swaps reflected as part of rate impact; rate/volume variances are allocated to variances due to volume.

Net interest income remained relatively stable at $574 million for the three months ended September 30, 2025, compared to $575 million for the three months ended June 30, 2025, while net interest margin decreased 7 basis points to 3.09% for the same period. The decrease in net interest margin was driven by a $1.7 billion increase in interest-bearing deposit accounts and relationship-focused deposit pricing, as well as a reduction in the benefit from BSBY cessation, partially offset by a $334 million decrease in short-term borrowings and a $228 million decrease in medium- and long-term debt. Net interest income for the three months ended September 30, 2025 was positively impacted by one additional day in the quarter, compared to the three months ended June 30, 2025.

For further discussion of the effects of market rates on net interest income, refer to the "Market and Liquidity Risk" section of this financial review.

Provision for Credit Losses

The provision for credit losses, which includes the provision for loan losses and the provision for credit losses on lending-related commitments, was $22 million for the three months ended September 30, 2025, compared to $44 million for the three months ended June 30, 2025. The allowance for credit losses decreased $10 million to $725 million at September 30, 2025, compared to $735 million at June 30, 2025, reflecting the impact of a slightly improved economic forecast, relatively stable credit performance and continued uncertainty. As a percentage of total loans, the allowance for credit losses was 1.43% at September 30, 2025, compared to 1.44% at June 30, 2025.

Net loan charge-offs were $32 million, or 25 basis points as a percentage of average loans, for the three months ended September 30, 2025, an increase of $4 million from $28 million, or 22 basis points as a percentage of average loans, for the three months ended