Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 91

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 91
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. CET1 capital predominantly includes common shareholders' equity, less certain deductions for goodwill, intangible assets and deferred tax assets that arise from net operating losses and tax credit carry-forwards. Additionally, the Corporation has elected to permanently exclude capital in accumulated other comprehensive income (AOCI) related to debt classified as available-for-sale and cash flow hedges and defined benefit postretirement plans from CET1, an option available to standardized approach entities 

F-17

under Basel III. Tier 1 capital incrementally includes noncumulative perpetual preferred stock. Tier 2 capital includes Tier 1 capital as well as subordinated debt qualifying as Tier 2 and qualifying allowance for credit losses.

The Corporation computes RWA using the standardized approach. Under the standardized approach, RWA is generally based on supervisory risk-weightings which vary by counterparty type and asset class. Under the Basel III standardized approach, capital is required for credit risk RWA, to cover the risk of unexpected losses due to failure of a customer or counterparty to meet its financial obligations in accordance with contractual terms. If trading assets and liabilities exceed certain thresholds, capital is also required for market risk RWA to cover the risk of losses due to adverse market movements or from position-specific factors.

The following table presents the minimum ratios required under Basel III.

Common equity tier 1 capital to risk-weighted assets4.5 %Tier 1 capital to risk-weighted assets6.0 Total capital to risk-weighted assets8.0 Capital conservation buffer (a)2.5 Tier 1 capital to adjusted average assets (leverage ratio)4.0 

(a)In addition to the minimum risk-based capital requirements, the Corporation is required to maintain a minimum capital conservation buffer, in the form of common equity tier 1 capital, in order to avoid restrictions on capital distributions and discretionary bonuses. 

The Corporation's capital ratios exceeded minimum regulatory requirements for the periods presented as follows:

December 31, 2024December 31, 2023(dollar amounts in millions)Capital/AssetsRatioCapital/AssetsRatioCommon shareholders' equity$6,149 7.75 %$6,012 7.00 %Tangible common equity (a)5,508 7.00 5,369 6.30 Common equity tier 1 (a)8,667 11.89 8,414 11.09 Tier 1 risk-based (a)9,061 12.43 8,