Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 29

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 2
Chunk 29
---
, which are based on third-party appraisals that are performed at the time of origination in accordance with regulatory requirements as well as generally at the time of renewal. Per Interagency guidelines, the Corporation may also require an updated appraisal or valuation when economic, financial or market conditions may have resulted in deterioration of the prior appraisal's property value conclusions. Commercial real estate loans, consisting of real estate construction and commercial mortgage loans, totaled $18.3 billion at June 30, 2025. Commercial real estate loans made to borrowers in the Commercial Real Estate business line, which includes loans to real estate developers, totaled $9.5 billion, or 52% of total commercial real estate loans, an increase of $89 million compared to December 31, 2024. 

The Commercial Real Estate business line at June 30, 2025 was predominantly secured by multi-family and industrial properties, comprising 49% and 29% of the Corporation's portfolio, respectively, with only 4% secured by office properties. Commercial real estate loans in other business lines totaled $8.8 billion, or 48% of total commercial real estate loans, at June 30, 2025, an increase of $21 million compared to December 31, 2024. These loans consisted primarily of owner-occupied commercial mortgages, which bear credit characteristics similar to non-commercial real estate business loans. Generally, loans previously reported as real estate construction are classified as commercial mortgage loans upon receipt of a certificate of occupancy.

The real estate construction loan portfolio primarily contains loans made to long-tenured customers with satisfactory completion experience. Criticized real estate construction loans in the Commercial Real Estate business line totaled $93 million at June 30, 2025 compared to $36 million at December 31, 2024. In other business lines, there were no criticized real estate construction loans at June 30, 2025 compared to $2 million at December 31, 2024. There were no net charge-offs of real estate construction loans for the three months ended June 30, 2025, compared to $7 million at March 31, 2025. For the six months ended June 30, 2025, real estate construction loan net charge-offs were $7 million, compared to none for the six months ended June 30, 2024.

Commercial mortgage loans are loans where the primary collateral is a lien on any real property and are primarily loans secured by owner-occupied real estate. Real property