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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Comerica Incorporated and Subsidiaries
F-81
The following table presents information regarding the recorded balance at December 31, 2013 and 2012 of loans modified
by principal deferral during the years ended December 31, 2013 and 2012, and those principal deferrals which experienced a
subsequent default during the same periods. For principal deferrals, incremental deterioration in the credit quality of the loan,
represented by a downgrade in the risk rating of the loan, for example, due to missed interest payments or a reduction of collateral
value, is considered a subsequent default.
2013 2012
(in millions) Balance at
December 31
Subsequent
Default in the
Year Ended
December 31 Balance at
December 31
Subsequent
Default in the
Year Ended
December 31
Principal deferrals:
Business loans:
Commercial $ 21 $ 11 $ 18 $ 7
Real estate construction:
Commercial Real Estate business line (a) — — 1 1
Commercial mortgage:
Commercial Real Estate business line (a) 32 19 19 18
Other business lines (b) 8 5 20 15
Total commercial mortgage 40 24 39 33
Total business loans 61 35 58 41
Retail loans:
Residential mortgage 3 (c) — 8 (c) —
Consumer:
Home equity 7 (c) — 3 (c) —
Other consumer 2 (c) — 1 (c) —
Total consumer 9 — 4 —
Total retail loans 12 — 12 —
Total principal deferrals $ 73 $ 35 $ 70 $ 41
(a) Primarily loans to real estate developers.
(b) Primarily loans secured by owner-occupied real estate.
(c) Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt.
During the years ended December 31, 2013 and 2012, loans with a carrying value of $4 million at both December 31,
2013 and 2012 were modified by interest rate reduction and loans with a carrying value of $19 million and $18 million at
December 31, 2013 and 2012, respectively, were restructured into two notes (AB note restructures). For reduced-rate loans and
AB note restructures, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90
days past due. There were no subsequent payment defaults of reduced rate loans or AB note restructures during the years ended
December 31, 2013 and 2012.
Purchased Credit-Impaired Loans
Acquired loans are initially recorded at fair value with no carryover of any allowance for loan losses.
Loans acquired with evidence of credit quality deterioration at acquisition for which it was probable that the Corporation
would not be able to collect all contractual amounts due were accounted for as PCI loans. The Corporation aggregated the acquired
PCI loans into pools of loans based on common risk characteristics.
The carrying amount of acquired PCI loans included in the consolidated balance sheet and the related outstanding balance
at December 31, 2013 and 2012 were as follows. The outstanding balance represents the total amount owed as of December 31,
2013 and 2012, including accrued but unpaid interest and any amounts previously charged off. No allowance for loan losses was
required on the acquired PCI loan pools at both December 31, 2013 and 2012.
(in millions)
December 31 2013 2012
Acquired PCI loans:
Carrying amount $ 5 $ 36
Outstanding balance 46 138