Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 323

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 323
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 Treasury elected to extend the contract term for up to three years past January 2, 2025 to facilitate an orderly transaction. 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.

For the years ended December 31, 2024 and 2023, average deposits related to the Direct Express program were $3.4 billion and $3.1 billion, respectively, all of which were noninterest-bearing. 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. The Corporation cannot currently predict the impact that the loss of this contract and the related deposits could have on its financial statements as it will be subject to many factors, including, but not limited to, the timing, costs and extent of securing any necessary alternative sources of funding. However, such impact could be material.

Potential Uses of Liquidity

Various financial obligations such as contractual obligations, unfunded commitments and deposit withdrawals may require future cash payments by the Corporation. Certain obligations are recognized on the Consolidated Balance Sheets, while others are off-balance sheet under U.S. GAAP.

The following table summarizes the Corporation's material noncancelable contractual obligations and future required minimum payments. Refer to Notes 10, 11, 12, and 25 to the consolidated financial statements for further information regarding these contractual obligations.

F-33

Selected Contractual Obligations

Minimum Payments Due by Period(in millions)December 31, 2024TotalLess than1 Year1-3Years4-5YearsMore than5 YearsDeposits without a stated maturity (a)$59,277 $59,277 Certificates of deposit and other deposits with a stated maturity (a)4,534 4,455 $68 $8 $3 Medium- and long-term debt (a)6,800 1,350 2,400 1,550 1,500 Operating leases423 67 123 84 149 Total contractual obligations$71,034 $65,149 $2,591 $1,642 $1,652 Medium- and long-term