Comerica 2010 Annual Report Download - page 49

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At December 31, 2010, foreclosed property totaled $112 million and consisted of approximately 230
properties, compared to $111 million and approximately 210 properties at December 31, 2009. The following
table presents a summary of changes in foreclosed property.
(in millions) 2010 2009
Balance at January 1 $ 111 $66
Acquired in foreclosure 104 114
Write-downs (23) (34)
Foreclosed property sold (a) (81) (37)
Capitalized expenditures 12
Balance at December 31 $ 112 $ 111
(a) Net gain (loss) on foreclosed property sold $7$ (2)
At December 31, 2010, there were 10 foreclosed properties each with a carrying value greater than $2
million, totaling $61 million, compared to 13 foreclosed properties totaling $61 million at December 31, 2009.
Of the foreclosed properties with balances greater than $2 million at December 31, 2010, $46 million were from
the Commercial Real Estate business line and $15 million were from the Middle Market business line. At
December 31, 2010, there were two foreclosed properties with carrying values greater than $10 million, totaling
$29 million, both in the Commercial Real Estate business line. There were no foreclosed properties with carrying
values greater than $10 million at December 31, 2009.
Concentration of Credit Risk
Concentrations of credit risk may exist when a number of borrowers are engaged in similar activities, or
activities in the same geographic region, and have similar economic characteristics that would cause them to be
similarly impacted by changes in economic or other conditions. The Corporation has a concentration of credit
risk with the automotive industry. Loans to automotive dealers and to borrowers involved with automotive
production are reported as automotive, as management believes these loans have similar economic characteristics
that might cause them to react similarly to changes in economic conditions. This aggregation involves the
exercise of judgment. Included in automotive production are: (a) original equipment manufacturers and Tier 1
and Tier 2 suppliers that produce components used in vehicles and whose primary revenue source is automotive-
related (“primary” defined as greater than 50%) and (b) other manufacturers that produce components used in
vehicles and whose primary revenue source is automotive-related. Loans less than $1 million and loans recorded
in the Small Business business line are excluded from the definition. Foreign ownership consists of North
American affiliates of foreign automakers and suppliers.
The following table presents a summary of loans outstanding to companies related to the automotive
industry.
(in millions)
December 31 2010 2009
Loans
Outstanding
Percent of
Total Loans
Loans
Outstanding
Percent of
Total Loans
Production:
Domestic $ 609 $ 760
Foreign 222 181
Total production 831 2.1 % 941 2.2 %
Dealer:
Floor plan 1,961 1,324
Other 2,050 2,106
Total dealer 4,011 9.9 % 3,430 8.2 %
Total automotive $ 4,842 12.0 % $ 4,371 10.4 %
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