Company: CMA
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000028412-25-000197
Chunk: 176

Company: COMERICA INC
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 176
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 59 Total customer-initiated and other activities42,307 780 810 39,126 663 791 Total gross derivatives$71,775 781 814 $69,729 666 794 Amounts offset in the Consolidated Balance Sheets:Netting adjustment - Offsetting derivative assets/liabilities(394)(394)(330)(330)Netting adjustment - Cash collateral received/posted(85)(22)(80)— Net derivatives included in the Consolidated Balance Sheets (b)302 398 256 464 Amounts not offset in the Consolidated Balance Sheets:Marketable securities pledged under bilateral collateral agreements(133)(20)(143)(2)Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets$169 $378 $113 $462 (a)Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the Consolidated Balance Sheets.(b)Net derivative assets are included in accrued income and other assets and net derivative liabilities are included in accrued expenses and other liabilities on the Consolidated Balance Sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and credit risk of the Corporation. The fair value of net derivative assets included credit valuation adjustments for counterparty credit risk of $2 million and $1 million at June 30, 2025 and December 31, 2024, respectively.

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Table of ContentsNotes to Consolidated Financial Statements (unaudited)Comerica Incorporated and Subsidiaries

Risk ManagementThe Corporation's derivative instruments used for managing interest rate risk include cash flow hedging strategies that convert variable-rate loans to fixed rates and fair value hedging strategies that convert fixed-rate medium- and long-term debt to variable rates. Interest and fees on loans included net expense from cash flow swaps of $83 million and $174 million for the three-month periods ended June 30, 2025 and 2024, respectively, and $161 million and $344 million of cash flow hedge losses for the six-month periods ended June 30, 2025 and 2024, respectively.The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income.Interest on Medium- and Long-Term Debt