Medium- And Long-Term Debt

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Medium- And Long-Term Debt

MEDIUM- AND LONG-TERM DEBT

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

(in millions)	March 31, 2023		December 31, 2022
Parent company
Subordinated notes:
3.80% subordinated notes due 2026 (a)	$	240	$	237
Medium- and long-term notes:
3.70% notes due 2023 (a)	845		841
4.00% notes due 2029 (a)	526		515
Total medium- and long-term notes	1,371		1,356
Total parent company	1,611		1,593
Subsidiaries
Subordinated notes:
4.00% subordinated notes due 2025 (a)	334		331
7.875% subordinated notes due 2026 (a)	166		165
5.332% subordinated notes due 2033 (a)	476		459
Total subordinated notes	976		955
Medium- and long-term notes:
2.50% notes due 2024 (a)	480		476
Total medium- and long-term notes	480		476
Federal Home Loan Bank advances:
5.07% advance due 2025 (a)	1,000		—
4.79% advance due 2026 (a)	1,003		—
4.49% advance due 2027 (a)	1,007		—
4.49% advance due 2028 (a)	1,007		—
Total Federal Home Loan Bank advances:	4,017		—
Total subsidiaries	5,473		1,431
Total medium- and long-term debt	$	7,084	$	3,024

(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. In first quarter 2023, the Bank borrowed $4.0 billion of fixed-rate FHLB advances due between 2025 and 2028. Interest is due monthly, with principal due at maturity. Additionally, the Bank entered into fair value fixed-to-floating rate swaps in which the Bank received a weighted-average fixed rate of 3.79% and will pay a floating rate based on SOFR.

Borrowing capacity is contingent on the amount of collateral available to be pledged to the FHLB. Total FHLB borrowings were $15.0 billion at March 31, 2023, which included $11.0 billion in short-term advances. Remaining capacity for future FHLB borrowings was $987 million at March 31, 2023, which was secured by available real estate-related loans and investment securities collateral.

Unamortized debt issuance costs deducted from the carrying amount of medium- and long-term debt totaled $8 million and $9 million at March 31, 2023 and December 31, 2022, respectively.