Company: CMA
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000028412-25-000154
Chunk: 32

Company: COMERICA INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 2
Chunk 32
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 to $100 million shared by three or more federally supervised institutions, reflecting the Corporation's focus on larger middle market companies that have financing needs that generally exceed internal individual borrower credit risk limits. The Corporation seeks to develop full relationships with SNC borrowers. 

The following table summarizes information about loans in the Corporation's Energy business line.

March 31, 2025December 31, 2024(dollar amounts in millions)OutstandingsNonaccrualCriticized (a)OutstandingsNonaccrualCriticized (a)Exploration and production (E&P)$1,098 81 %$— $— $1,188 80 %$— $— Midstream266 19 — — 298 20 — — Total Energy business line$1,364 100 %$— $— $1,486 100 %$— $— 

(a)    Includes nonaccrual loans.

Loans in the Energy business line totaled $1.4 billion, or less than 3 percent of total loans, at March 31, 2025, a decrease of $122 million compared to December 31, 2024. Total exposure, including unused commitments to extend credit and letters of credit, was $3.4 billion at March 31, 2025 (a utilization rate of 38 percent) and $3.3 billion at December 31, 2024 (a utilization rate of 42 percent). There were no nonaccrual or criticized Energy loans at both March 31, 2025 and December 31, 2024. There were no Energy net charge-offs for the three month periods ended March 31, 2025 and March 31, 2024, compared to net recoveries of $1 million for the three months ended December 31, 2024.

Leveraged Loans

Certain loans in the Corporation's commercial portfolio are considered leveraged transactions. These loans are typically used for mergers, acquisitions, business recapitalizations, refinancing and equity buyouts. To help mitigate the risk associated with these loans, the Corporation focuses on middle market companies with highly capable management teams, strong sponsors and solid track records of financial performance. Industries prone to cyclical downturns and acquisitions with a high degree of integration risk are generally avoided. Other considerations include the sufficiency of collateral, the level of balance sheet leverage and the adequacy of