Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 193

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 193
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 %Less: affiliate deposits(3,876)(4,064)Total uninsured deposits, excluding affiliate deposits$29,511 46 %$27,421 41 %

The $1.9 billion increase in uninsured deposits (as calculated per regulatory guidelines) was primarily due to an increase in uninsured commercial interest-bearing deposits, partially offset by a decline in uninsured noninterest-bearing deposits. Time deposits otherwise uninsured, which consist of foreign office time deposits, totaled $32 million at December 31, 2024 and all mature in three months or less. Collateralized deposits, consisting of trust deposits as well as deposits of public entities and state and local government agencies, totaled $348 million at December 31, 2024, compared to $687 million at December 31, 2023.

Direct Express Debit MasterCard Program

In July 2024, the Bank received preliminary notification that, following the contract expiration on January 2, 2025, it was not selected to continue serving as financial agent supporting the Direct Express Program; however, the Treasury elected to extend the contract term for up to three years past January 2, 2025 to facilitate an orderly transaction. While the length of the transition is currently unknown, the Corporation believes it may take some time given the scale and complexity of the program as well as its own transition experience.

For the years ended December 31, 2024 and 2023, average deposits related to the Direct Express program were $3.4 billion and $3.1 billion, respectively, all of which were noninterest-bearing. Card fee income related to the Direct Express program was $121 million and $137 million for the years ended December 31, 2024 and 2023, respectively. Noninterest expenses related to the Direct Express program were $119 million and $138 million, respectively, for the same periods, consisting primarily of outside processing fee expense and other noninterest expenses. The Corporation cannot currently predict the impact that the loss of this contract and the related deposits could have on its financial statements as it will be subject to many factors, including, but not limited to, the timing, costs and extent of securing any necessary alternative sources of funding. However, such impact could be material.

Potential Uses of Liquidity

Various financial obligations such as contractual obligations, unfunded commitments and deposit withdrawals may require future cash payments by the Corporation. Certain obligations are recognized on the Consolidated Balance Sheets, while others are off-balance sheet under U.S. GA