Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 76

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 76
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 2023 period. 

Following the contract expiration on January 2, 2025, Comerica Bank (the Bank) was not selected to continue serving as financial agent supporting the Direct Express Debit MasterCard Program (Direct Express) for the U.S. Department of the Treasury, Bureau of the Fiscal Service (the Treasury); however, the Treasury elected to extend the contract term for up to three years past January 2, 2025 to facilitate an orderly transition. While the length of the transition is currently unknown, the Corporation believes it may take some time given the scale and complexity of the program, as well as its own transition experience. Card fee income related to the Direct Express program was $121 million and $137 million for the years ended December 31, 2024 and 2023, respectively. Noninterest expenses related to the Direct Express program were $119 million and $138 million, respectively, for the same periods, consisting primarily of outside processing fee expense and other noninterest expenses. Refer to the "Direct Express Debit MasterCard Program" subheading in the "Market and Liquidity Risk" section of this financial review for further discussion of Direct Express.

F-7

Capital markets income consists of net gains and losses recognized on customer-initiated derivative instruments, net of the impact of offsetting positions, syndication agent fees, investment banking fees and merger and acquisition advisory fees. Capital markets income decreased $5 million, or 3 percent, reflecting lower derivative income, partially offset by an increase in advisory and investment banking fees.

Commercial lending fees include fees assessed on the unused portion of lines of credit (unused commitment fees) and loan servicing fees. These fees decreased $4 million, or 6 percent, driven by lower commitment fees due to a decline in loan commitments.

Risk management hedging income increased $50 million, reflecting a decline in losses related to BSBY cessation, partially offset by a decline in price alignment income received on collateral posted for centrally-cleared risk management positions. Refer to the "BSBY Cessation" subheading in the "Market and Liquidity Risk" section of this financial review, as well as Note 8 to the consolidated financial statements, for further discussion of de-designated interest rate hedges.

Brokerage fees are commissions earned for facilitating securities transactions for customers as well as other brokerage services provided. In November 2023, the Corporation transitioned the support of its retail brokerage business, including specific insurance, brokerage and investment advisory activities previously conducted by the Corporation's broker