Company: CMA
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000028412-25-000235
Chunk: 217

Company: COMERICA INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 217
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5 and June 30, 2025, respectively; rates calculated gross of derivative netting amounts.

42

Rate/Volume Analysis

Three Months EndedSeptember 30, 2025/June 30, 2025(in millions)Increase (Decrease) Due to Rate (a)Increase (Decrease) Due to Volume (a)Net Increase (Decrease)Interest income:Loans $7 $1 $8 Investment securities— (2)(2)Interest-bearing deposits with banks— 10 10 Other short-term investments(1)— (1)Total interest income6 9 15 Interest expense:Interest-bearing deposits15 9 24 Short-term borrowings— (4)(4)Medium- and long-term debt— (4)(4)Total interest expense15 1 16 Net interest income$(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