Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 567

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 567
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. Price alignment income totaled $46 million for the year ended December 31, 2024, $51 million for the year ended December 31, 2023 and $8 million for the year ended December 31, 2022. Customer-Initiated and OtherThe Corporation enters into derivative transactions at the request of customers and generally takes offsetting positions with dealer counterparties to mitigate the inherent market risk. Income primarily results from the spread between the customer derivative and the offsetting dealer position.For customer-initiated foreign exchange contracts where offsetting positions have not been taken, the Corporation manages the remaining inherent market risk through individual foreign currency position limits and aggregate value-at-risk limits. These limits are established annually and reviewed quarterly.Fair values of customer-initiated and other derivative instruments represent the net unrealized gains or losses on such contracts and are recorded on the Consolidated Balance Sheets. Changes in fair value are recognized on the Consolidated Statements of Income. The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in derivative income, were as follows:Years Ended December 31,(in millions)202420232022Interest rate contracts$21 $22 $34 Energy contracts19 25 28 Foreign exchange contracts47 51 47 Total$87 $98 $109 Credit-Related Financial InstrumentsThe Corporation issues off-balance sheet financial instruments in connection with commercial and consumer lending activities. The Corporation’s credit risk associated with these instruments is represented by the contractual amounts indicated in the following table.(in millions)December 3120242023Unused commitments to extend credit:Commercial and other$24,342 $27,303 Bankcard, revolving credit and home equity loan commitments4,055 4,082 Total unused commitments to extend credit$28,397 $31,385 Standby letters of credit$4,138 $3,586 Commercial letters of credit12 48 The Corporation maintains an allowance to cover current expected credit losses inherent in lending-related commitments, including unused commitments to extend credit, letters of credit and financial guarantees. The allowance for credit losses on lending-related commitments, included in accrued expenses and other liabilities on the Consolidated Balance Sheets, was $35 million and $40 million at December 31, 2024 and 2023, respectively.

F-74

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTSComerica Incorporated and Subsidiaries

Unused Commitments to