Company: CMA
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000028412-25-000154
Chunk: 213

Company: COMERICA INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 213
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2024. 

The Commercial Real Estate business line at March 31, 2025 was predominantly secured by multi-family and industrial properties, comprising 50% and 28% 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 percent of total commercial real estate loans, at March 31, 2025, an increase of $15 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 $117 million at March 31, 2025 compared to $36 million at December 31, 2024. In other business lines, there were no criticized real estate construction loans at March 31, 2025 compared to $2 million at December 31, 2024. Real estate construction loan net charge-offs for the three months ended March 31, 2025 totaled $7 million, compared to no net charge-offs for the three month periods ended December 31, 2024 and March 31, 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 is generally considered primary collateral if the value of that collateral represents more than 50 percent of the commitment at loan approval. Loans in the commercial mortgage portfolio generally mature within three to five years. Criticized commercial mortgage loans in the Commercial Real Estate business line totaled $402 million and $379 million at March 31, 2025 and December 31, 2024, respectively. In other business lines, $669 million and $694 million of commercial mortgage loans were criticized at March 31, 2025 and December 31, 2024, respectively. Commercial mortgage net charge-offs were $6 million for the three months ended March 31, 2025, compared to $1 million of net recoveries for the three months ended December 31, 2024 and no net charge-offs for the three months ended March 31, 2024.

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