Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 148

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 148
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 346 509 281 790 Federal funds purchased— (1)(1)1 (3)(2)Other short term borrowings23 (365)(342)5 371 376 Medium- and long-term debt38 47 85 138 153 291 Total interest expense274 (186)88 653 802 1,455 Net interest income$(179)$(145)$(324)$705 $(657)$48 

(a)Impact of additional days, other portfolio dynamics and interest rate swaps reflected as part of rate impact, rate/volume variances are allocated to variances due to volume.

Net interest income is the difference between interest earned on assets and interest paid on liabilities. The portion of gains and losses on risk management interest rate swaps that convert variable-rate loans to fixed rates through cash flow hedges that relate to the earnings effect of the hedged loans during the period are included in loan interest income. Additionally, gains and losses related to risk management interest rate swaps that convert fixed-rate debt to a floating rate and qualify as fair value hedges are included in interest expense on medium- and long-term debt. 

Refer to the Analysis of Net Interest Income and the Rate/Volume Analysis tables above for an analysis of net interest income for the years ended December 31, 2024, 2023 and 2022 and details regarding the components of the change in net interest income for 2024 compared to 2023 as well as 2023 compared to 2022.

For the year ended December 31, 2024, net interest income decreased $324 million to $2.2 billion and net interest margin decreased 18 basis points to 2.88 percent, reflecting a decline in loans, the net impact of higher rates, a change in deposit mix from noninterest-bearing to interest-bearing deposits and lower deposits held with the Federal Reserve Bank (FRB), partially offset by a decline in short-term FHLB advances. 

Average earning assets decreased $6.0 billion to $73.2 billion compared to the prior year, driven by decreases of $2.9 billion in loans, $1.6 billion in investment securities and $1.5 billion in interest-bearing deposits with banks. Average interest-bearing funding sources decreased $1.7 billion to $46.5 billion, reflecting a $6.4 billion decline in short-term borrowings, partially offset by increases of $3.7 billion in interest-bearing deposits and