Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 102

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 the three months ended June 30, 2025 and March 31, 2025.

The provision for credit losses is the amount recorded in earnings to adjust the allowance for credit losses to the level of expected losses estimated using the Corporation's current expected credit loss (CECL) model as of the end of the reporting period. As such, factors impacting the allowance for credit losses during the quarter indirectly determine the amount of provision expense recorded. The following is a summary of the changes to the major components of the allowance for credit losses during the three months ended June 30, 2025:

•Portfolio credit metrics continued to remain below historical levels as of June 30, 2025, with certain metrics improving marginally while others evidenced slight deterioration from March 31, 2025. Criticized loan balances and criticized loans as a percentage of total loans increased by 7% and 20 basis points, respectively, while nonperforming assets decreased by 11 basis points as a percentage of total loans and foreclosed property. 

•Economic forecasts as of June 30, 2025 were incrementally weaker compared to March 31, 2025, reflecting the impact of tariffs and the incorporation of weaker-than-expected actuals for first quarter Gross Domestic Product (GDP). There were modestly weaker projections for GDP growth, unemployment growth and bond spreads across the reasonable and supportable period as of June 30, 2025 compared to March 31, 2025.

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•The allowance for credit losses incorporates risks not captured in the underlying model, primarily forecast risk. In management's view, forecast risk at June 30, 2025 was lower than at March 31, 2025, as the impact of tariffs was incorporated into the economic forecasts captured in the underlying model. Uncertainties considered by management have broad implications for the overall economy and include the impacts of evolving tariff policies, potentially prolonged inflation and the fiscal deficit, amongst other risks.

Further analysis of the allowance for credit losses, economic forecasts, and a summary of nonperforming assets are presented under the "Credit Risk" subheading in the "Risk Management" section of this financial review. 

Noninterest Income

Three Months Ended(in millions)June 30, 2025March 31, 2025Card fees$59 $59 Fiduciary income57 52 Service charges on deposit accounts47 46 Capital markets income 42 31 Commercial lending fees 17 16 Broker