Medium- And Long-Term Debt

3 Months Ended

Mar. 31, 2020

MEDIUM- AND LONG-TERM DEBT

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



(in millions)	March 31, 2020		December 31, 2019
Parent company
Subordinated notes:
3.80% subordinated notes due 2026 (a)	$	282	$	264
Medium- and long-term notes:
3.70% notes due 2023 (a)	917		884
4.00% notes due 2029 (a)	642		587
Total medium- and long-term notes	1,559		1,471
Total parent company	1,841		1,735
Subsidiaries
Subordinated notes:
4.00% subordinated notes due 2025 (a)	381		360
7.875% subordinated notes due 2026 (a)	213		202
Total subordinated notes	594		562
Medium- and long-term notes:
2.50% notes due 2020 (a) (b)	675		674
2.50% notes due 2024 (a)	524		498
Total medium- and long-term notes	1,199		1,172
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	5,593		5,534
Total medium- and long-term debt	$	7,434	$	7,269


(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.


(b)	Due on June 2, 2020.

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 rates on the FHLB advances resets between four and eight weeks, based on the FHLB auction rate. At March 31, 2020, the weighted-average rate on the FHLB advances was 0.92%. 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 March 31, 2020, $17.6 billion of real estate-related loans and $5.5 billion of investment securities were pledged to the FHLB as collateral for outstanding short- and long-term advances of $750 million and $3.8 billion, respectively, with an additional capacity for potential future borrowings of approximately $9.9 billion.

Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $11 million at March 31, 2020 and $12 million at December 31, 2019.