Company: CMA
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000028412-25-000154
Chunk: 125

Company: COMERICA INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 125
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 the estimated impact of rate movements. The Corporation primarily monitors the percentage change on the base-case economic value of equity. The economic value of equity analysis is based on an immediate parallel 100 or 200 basis point shock with a floor of zero percent.

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The table below, as of March 31, 2025 and December 31, 2024, displays the estimated impact on the economic value of equity from the interest rate scenario described above.

March 31, 2025December 31, 2024(dollar amounts in millions)Amount%Amount%Change in Interest Rates:Change in Interest Rates:Rising 100 basis points$(479)(4) %Rising 100 basis points$(503)(4) %Declining 100 basis points578 4 Declining 100 basis points598 5 Rising 200 basis points(1,025)(8)Rising 200 basis points(1,066)(9)Declining 200 basis points1,032 8 Declining 200 basis points1,097 9 

The sensitivity of the economic value of equity to rising and declining rates decreased modestly from December 31, 2024 to March 31, 2025 due to a declining notional amount of cash flow swaps and a smaller securities portfolio.

BSBY Cessation

The Bloomberg Index Services Limited (Bloomberg) discontinued publishing BSBY on November 15, 2024. As a result, the Corporation was required to “de-designate” $7.0 billion of interest rate swaps used in cash flow hedges of certain BSBY-indexed loans and reclassify amounts recognized in accumulated other comprehensive income into earnings. For each de-designated swap, settlement of interest payments and changes in fair value were recorded as risk management hedging losses within other noninterest income instead of net interest income until re-designation. All impacted swaps were re-designated as of April 1, 2024.

BSBY cessation positively impacted interest income on commercial loans by $28 million for the three months ended March 31, 2025, compared to $16 million for the three months ended December 31, 2024. Refer to Note 6 to the consolidated financial statements for further discussion of re-designated interest rate hedges.

The Corporation has substantially completed its BSBY transition efforts and effectively all BSBY-based contracts have transitioned to other reference rates. Any BSBY-based contract that did not