Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 150

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 150
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 presentation included an increase of $22 million in brokerage fees, with corresponding reductions of $24 million in other noninterest income, $21 million in salaries and benefits expense (commission expenses), $20 million in fiduciary income and $1 million in outside processing expense.

(b)The table below provides further details on certain categories included in other noninterest income.

Noninterest income decreased $24 million to $1.1 billion, which included a $19 million loss related to repositioning $827 million of the Corporation's securities portfolio, as well as decreases in card fees, other noninterest income, capital markets income and commercial lending fees, partially offset by an increase in risk management hedging income and smaller increases in other categories.

Card fees consist primarily of interchange and other fee income earned on government prepaid card, commercial card, debit/Automated Teller Machine (ATM) card and merchant payment processing services. Card fees decreased $24 million, or 9 percent, reflecting lower government card interchange income, a decline in commercial card sales volume and ATM network bonuses received in the 2023 period. 

Following the contract expiration on January 2, 2025, Comerica Bank (the Bank) was not selected to continue serving as financial agent supporting the Direct Express Debit MasterCard Program (Direct Express) for the U.S. Department of the Treasury, Bureau of the Fiscal Service (the Treasury); however, the Treasury elected to extend the contract term for up to three years past January 2, 2025 to facilitate an orderly transition. 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. 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. Refer to the "Direct Express Debit MasterCard Program" subheading in the "Market and Liquidity Risk" section of this financial review for further discussion of Direct Express.

F-7

Capital markets income consists of net gains and losses recognized on customer-initiated derivative instruments, net of the impact of offsetting positions, syndication agent fees, investment banking fees and merger and acquisition advisory fees. Capital markets income decreased $5 million, or