Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 186

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 186
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1

(a)Years to maturity calculated from a starting date of December 31, 2024.

The analysis also includes interest rate swaps that convert $6.8 billion of fixed-rate medium- and long-term debt to variable rates through fair value hedges. Additionally, included in this analysis are $15.1 billion of loans that were subject to an average interest rate floor of 52 basis points at December 31, 2024. This base-case net interest income is then compared against interest rate scenarios in which short-term rates rise or decline 100 or 200 basis points (with a floor of zero percent) in a linear, non-parallel fashion from the base case over 12 months, resulting in an average change of 50 or 100 basis points over the period.

The table below, as of December 31, 2024 and 2023, displays the estimated impact on net interest income during the next 12 months by relating the base case scenario results to those from the rising and declining interest rate scenarios described above. 

Estimated Annual Change(dollar amounts in millions)20242023December 31Amount%Amount%Change in Interest Rates:Change in Interest Rates:Rising 100 basis points$(26)(1)%Rising 100 basis points$(36)(2)%(50 basis points on average)(50 basis points on average)Declining 100 basis points12 1 Declining 100 basis points23 1 (50 basis points on average)(50 basis points on average)Rising 200 basis points(67)(3)Rising 200 basis points(87)(4)(100 basis points on average)(100 basis points on average)Declining 200 basis points12 1 Declining 200 basis points33 1 (100 basis points on average)(100 basis points on average)

Sensitivity to both rising and declining interest rates decreased slightly from December 31, 2023 to December 31, 2024 due to changes in balance sheet mix dynamics.

At December 31, 2024, additional sensitivity scenarios applied the rising and declining 100 basis point scenario assumptions with a 60% incremental deposit beta relative to the base case scenario to assess the impact of the Corporation's deposit beta assumptions. In these rising and declining scenarios, net interest income decreased by $56 million and increased by $35 million, respectively, due to a more rapid repricing pace compared to the standard model assumptions.

F-29

Sensitivity of Economic Value of Equity