Medium- And Long-Term Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Medium- And Long-Term Debt

MEDIUM- AND LONG-TERM DEBT

Medium- and long-term debt is summarized as follows:

(in millions)	September 30, 2014		December 31, 2013
Parent company
Subordinated notes:
4.80% subordinated notes due 2015 (a)	$	308	$	318
3.80% subordinated notes due 2026 (a)	249		—
Medium-term notes:
3.00% notes due 2015	299		299
2.125% notes due 2019 (a)	346		—
Total parent company	1,202		617
Subsidiaries
Subordinated notes:
5.70% subordinated notes due 2014 (a)	—		255
8.375% subordinated notes called 2014	—		183
5.75% subordinated notes due 2016 (a)	672		681
5.20% subordinated notes due 2017 (a)	551		566
7.875% subordinated notes due 2026 (a)	221		213
Total subordinated notes	1,444		1,898
Federal Home Loan Bank advance:
Floating-rate based on LIBOR indices due 2014	—		1,000
Other notes:
6.0% - 6.4% fixed-rate notes due 2020	23		28
Total subsidiaries	1,467		2,926
Total medium- and long-term debt	$	2,669	$	3,543

(a) The carrying value of medium- and long-term debt has been adjusted to reflect the gain or loss attributable to the risk hedged with interest rate swaps.

Subordinated notes with remaining maturities greater than one year qualify as Tier 2 capital.

Comerica Bank (the Bank) is a member of the FHLB, which provides short- and long-term funding to its members through advances collateralized by real estate-related assets. Actual borrowing capacity is contingent on the amount of collateral available to be pledged to the FHLB. At September 30, 2014, $14 billion of real estate-related loans were pledged to the FHLB as blanket collateral for potential future borrowings.

In the second quarter 2014, the Corporation issued $350 million of 2.125% senior notes due 2019, which were swapped to a floating rate based on six-month LIBOR. Proceeds were used for general corporate purposes.

In the third quarter 2014, the Corporation issued $250 million of 3.80% subordinated notes due 2026, which were swapped to a floating rate based on six-month LIBOR. Proceeds were used for general corporate purposes. Also in the third quarter 2014, the Corporation exercised its option to redeem, at par, $150 million of 8.375% subordinated notes, originally due in 2024. A gain of $32 million was recognized on the early redemption, primarily from the recognition of the unamortized value of a related, previously terminated interest rate swap.