Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 202

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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Three Months EndedJune 30, 2025/March 31, 2025(in millions)Increase (Decrease) Due to Rate (a)Increase (Decrease) Due to Volume (a)Net Increase (Decrease)Interest income:Loans $4 $8 $12 Investment securities— (2)(2)Interest-bearing deposits with banks1 (4)(3)Total interest income5 2 7 Interest expense:Interest-bearing deposits8 (4)4 Short-term borrowings— 13 13 Medium- and long-term debt(1)(9)(10)Total interest expense7 — 7 Net interest income$(2)$2 $— 

(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 June 30, 2025 and March 31, 2025, while net interest margin decreased 2 basis points to 3.16% for the same period, primarily due to a $1.2 billion increase in short-term borrowings to fund loan growth (mostly FHLB advances) and the net impact of lower rates (including the impact of BSBY cessation), partially offset by a $748 million decline in medium- and long-term debt and a $451 million increase in average loans. Net interest income for the three months ended June 30, 2025 was positively impacted by one additional day in the quarter, compared to the three months ended March 31, 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 $44 million for the three months ended June 30, 2025, compared to $20 million for the three months ended March 31, 2025. The allowance for credit losses increased $16 million to $735 million at June 30, 2025, compared to $719 million at March 31, 2025, reflecting loan growth and continued economic uncertainty. As a percentage of total loans, the allowance for credit losses remained consistent at 1.44% at both June 30, 2025