Medium- And Long-Term Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Medium- And Long-Term Debt

MEDIUM- AND LONG-TERM DEBT

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

(in millions)	June 30, 2019		December 31, 2018
Parent company
Subordinated notes:
3.80% subordinated notes due 2026 (a)	$	264	$	250
Medium- and long-term notes:
2.125% notes due 2019 (a)	—		348
3.70% notes due 2023 (a)	887		861
4.00% notes due 2029 (a)	372		—
Total medium- and long-term notes	1,259		1,209
Total parent company	1,523		1,459
Subsidiaries
Subordinated notes:
4.00% subordinated notes due 2025 (a)	359		343
7.875% subordinated notes due 2026 (a)	205		198
Total subordinated notes	564		541
Medium-term notes:
2.50% notes due 2020 (a)	671		663
Federal Home Loan Bank (FHLB) advances:
Floating-rate based on FHLB auction rate due 2026	2,800		2,800
Floating-rate based on FHLB auction rate due 2028	1,000		1,000
Total FHLB advances	3,800		3,800
Total subsidiaries	5,035		5,004
Total medium- and long-term debt	$	6,558	$	6,463

(a) The fixed interest rates on these notes have been swapped to a variable rate and designated in a hedging relationship. Accordingly, carrying value has been adjusted to reflect the change in the fair value of the debt as a result of changes in the benchmark rate.

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

Comerica Bank (the Bank), a wholly-owned subsidiary of the Corporation, is a member of the FHLB, which provides short- and long-term funding to its members through advances collateralized by real estate-related assets. The interest rate on the FHLB advances resets between four and eight weeks, based on the FHLB auction rate. At June 30, 2019, the weighted-average rate on the FHLB advances was 2.46%. Each note may be prepaid in full, without penalty, at each scheduled reset date. Borrowing capacity is contingent on the amount of collateral available to be pledged to the FHLB. At June 30, 2019, $17.0 billion of real estate-related loans were pledged to the FHLB as collateral for current and potential future borrowings of approximately $4.1 billion.

In the first quarter 2019, the Corporation issued $350 million of 4.00% senior notes maturing in 2029, swapped to a floating rate at 30-day LIBOR plus 129 basis points.

Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $9 million at June 30, 2019 and $8 million at December 31, 2018.