Company: CMA
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000028412-25-000154
Chunk: 5

Company: COMERICA INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 5
---
 short-term investments— (1)(1)Total interest income(24)(19)(43)Interest expense:Interest-bearing deposits(26)(8)(34)Short-term borrowings— 1 1 Medium- and long-term debt(8)(2)(10)Total interest expense(34)(9)(43)Net interest income$10 $(10)$— 

(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 was $575 million for both the three months ended March 31, 2025 and December 31, 2024, while net interest margin increased 12 basis points to 3.18 percent for the same period, due to the net impact of lower rates and a decline in interest-bearing deposits, partially offset by an $894 million decrease in deposits held with the Federal Reserve Bank (FRB), lower nonaccrual interest and a $403 million decline in loans. Net interest income was also impacted by two fewer days in the first quarter. 

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 $20 million for the three months ended March 31, 2025, compared to $21 million for the three months ended December 31, 2024. The allowance for credit losses decreased $6 million to $719 million at March 31, 2025, compared to $725 million at December 31, 2024, reflecting the impact of changes in loan portfolio composition and relatively stable macroeconomic variables, as well as a rise in economic uncertainty. As a percentage of total loans, the allowance for credit losses was 1.44% at both March 31, 2025 and December 31, 2024. 

Net loan charge-offs were $26 million for the three months ended March 31, 2025, an increase of $10 million from $16 million for the three months ended December 31, 2024, reflecting increases in Commercial Real Estate, Entertainment and Corporate Banking, partially offset by a decline in general Middle Market charge-offs. The provision for credit losses on lending-related commitments was $1 million for both the three months ended March