Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 179

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 179
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 making settlement payments. Price alignment income totaled $5 million and $17 million for the three-month periods ended June 30, 2025 and 2024, respectively, and $13 million and $30 million for the six-month periods ended June 30, 2025 and 2024.Customer-Initiated and OtherThe Corporation enters into derivative transactions at the request of customers and generally takes offsetting positions with dealer counterparties to help 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 monitored at least monthly. 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 Comprehensive Income. The net gains recognized in income on customer-initiated derivative instruments, net of the impact of offsetting positions included in capital markets income, were as follows:Three Months Ended June 30,Six Months Ended June 30,(in millions)2025202420252024Interest rate contracts$6 $3 $10 $8 Energy contracts7 5 10 8 Foreign exchange contracts14 13 25 24 Total$27 $21 $45 $40 

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Table of ContentsNotes to Consolidated Financial Statements (unaudited)Comerica Incorporated and Subsidiaries

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)June 30, 2025December 31, 2024Unused commitments to extend credit:Commercial and other$23,996 $24,342 Bankcard, revolving credit and home equity loan commitments4,117 4,055 Total unused commitments to extend credit$28,113 $28,397 Standby letters of credit$4,156 $4,138 Commercial letters of credit10 12 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