Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 74

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 74
---
 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 $1.0 billion in medium- and long-term debt.

F-6

The Corporation utilizes various asset and liability management strategies to manage net interest income exposure to interest rate risk. Refer to the “Market and Liquidity Risk” section of this financial review for additional information regarding the Corporation's asset and liability management policies and the “Balance Sheet and Capital Funds Analysis” section for further discussion on changes in earning assets and interest-bearing liabilities.

Provision for Credit Losses

The provision for credit losses decreased $40 million to $49 million, reflecting changes in portfolio composition, lower loan balances and an improved economic outlook. Net loan charge-offs increased $30 million to $52 million, or 0.10 percent of average total loans for the year ended December 31, 2024, compared to $22 million, or 0.04 percent of average total loans for the year ended December 31, 2023, primarily driven by general Middle Market, partially offset by Technology and Life Sciences, Energy and Corporate Banking. The provision for credit losses on lending-related commitments was a