Company: CMA
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0000028412-25-000108
Chunk: 564

Company: COMERICA INC
Filing Date: 2025-02-24
Form: 10-K
Item: Item 16
Chunk 564
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)Netting adjustment - Cash collateral received/posted(80)— (143)(13)Net derivatives included in the Consolidated Balance Sheets (c)256 464 565 882 Amounts not offset in the Consolidated Balance Sheets:Marketable securities pledged under bilateral collateral agreements(143)(2)(501)(4)Net derivatives after deducting amounts not offset in the Consolidated Balance Sheets$113 $462 $64 $878 (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 on the Consolidated Balance Sheets.(b)December 31, 2023 included $2 billion of forward starting swaps that became effective on their contractual start dates in 2024. There were no forward starting swaps at December 31, 2024.(c)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 $1 million and $3 million at December 31, 2024 and 2023, respectively.

F-72

Table of ContentsNOTES TO CONSOLIDATED FINANCIAL STATEMENTSComerica 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 $637 million, $602 million and $25 million for the years ended December 31, 2024, 2023 and 2022, respectively.The following table details the effects of fair value hedging on the Consolidated Statements of Comprehensive Income.(in millions)Interest on Medium- and Long-Term DebtYears Ended December 31202420232022Total interest on medium-and long-term debt (a)$463 $378 $87 Fair value hedging relationships:Interest rate contracts:Hedged items335 265 112 Derivatives designated as hedging instruments128 113