Comerica 2011 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Comerica Incorporated and Subsidiaries
F-69
Deposit liabilities
The estimated fair value of checking, savings and certain money market deposit accounts is represented by the amounts
payable on demand. The estimated fair value of term deposits is calculated by discounting the scheduled cash flows using the
period-end rates offered on these instruments.
Short-term borrowings
The carrying amount of federal funds purchased, securities sold under agreements to repurchase and other short-term
borrowings approximates the estimated fair value.
Medium- and long-term debt
The carrying value of variable-rate FHLB advances approximates the estimated fair value. The estimated fair value of
the Corporation’s remaining variable- and fixed-rate medium- and long-term debt is based on quoted market values. If quoted
market values are not available, the estimated fair value is based on the market values of debt with similar characteristics.
Credit-related financial instruments
The estimated fair value of unused commitments to extend credit and standby and commercial letters of credit is
represented by the estimated cost to terminate or otherwise settle the obligations with the counterparties. This amount is
approximated by the fees currently charged to enter into similar arrangements, considering the remaining terms of the agreements
and any changes in the credit quality of counterparties since the agreements were executed. This estimate of fair value does not
take into account the significant value of the customer relationships and the future earnings potential involved in such arrangements
as the Corporation does not believe that it would be practicable to estimate a representational fair value for these items.