Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 187

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 187
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 to Changes in Interest Rates

In addition to the simulation analysis on net interest income, an economic value of equity analysis provides an alternative view of the interest rate risk position. The economic value of equity is the difference between the estimate of the economic value of the Corporation's financial assets, liabilities and off-balance sheet instruments, derived through discounting cash flows based on actual rates at the end of the period, and the estimated economic value after applying 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.

The table below, as of December 31, 2024 and December 31, 2023, displays the estimated impact on the economic value of equity from the interest rate scenario described above.

(dollar amounts in millions)20242023December 31Amount%Amount%Change in Interest Rates:Change in Interest Rates:Rising 100 basis points$(503)(4)%Rising 100 basis points$(567)(4)%Declining 100 basis points598 5 Declining 100 basis points794 6 Rising 200 basis points(1,066)(9)Rising 200 basis points(1,254)(10)Declining 200 basis points1,097 9 Declining 200 basis points1,363 11     

The sensitivity of the economic value of equity to rising and declining rates decreased modestly from December 31, 2023 to December 31, 2024 due to a declining notional amount of cash flow swaps and a smaller securities portfolio, partially offset by updated deposit modeling assumptions.

Loans by Maturity and Interest Rate Sensitivity

The contractual maturity distribution of the loan portfolio is presented below.

Loans Maturing(in millions)December 31, 2024Within OneYear (a)After OneBut WithinFive YearsAfter Five But Within Fifteen YearsAfter Fifteen YearsTotalCommercial loans$9,873 $15,573 $894$152 $26,492 Real estate construction loans1,287 2,280 113— 3,680 Commercial mortgage loans4,213 7,629 2,63516 14,493 Lease financing137 266 319— 722 International loans463 458 31— 952 Residential mortgage loans20 6 186