Comerica 2014 Annual Report Download - page 55

F-18
As of December 31, 2014, the Corporation's auction-rate securities portfolio was carried at an estimated fair value of
$136 million, compared to $159 million at December 31, 2013. During 2014, auction-rate securities with a par value of $34 million
were redeemed or sold, resulting in net securities gains of $2 million. As of December 31, 2014, approximately 89 percent of the
aggregate auction-rate securities par value had been redeemed or sold since acquired in 2008 for a cumulative net gain of $54
million.
Short-Term Investments
Short-term investments include federal funds sold, interest-bearing deposits with banks and other short-term investments.
Federal funds sold offer supplemental earnings opportunities and serve correspondent banks. Interest-bearing deposits with banks
primarily include deposits with the FRB and also include deposits with banks in developed countries or international banking
facilities of foreign banks located in the United States. These investments provide a range of maturities of less than one year and
are mostly used to manage liquidity requirements of the Corporation. Other short-term investments include trading securities and
loans held-for-sale. Loans held-for-sale typically represent residential mortgage loans originated with management's intention to
sell. Short-term investments decreased $279 million to $5.1 billion at December 31, 2014, compared to $5.4 billion at December 31,
2013. On an average basis, short-term investments increased $580 million to $5.6 billion in 2014, compared to $5.0 billion in
2013. Average interest-bearing deposits with banks increased $583 million to $5.5 billion in 2014, compared to 2013, primarily
reflecting a $596 million increase in average deposits with the FRB.
DEPOSITS AND BORROWED FUNDS
The Corporation's average deposits and borrowed funds balances are detailed in the following table.
(dollar amounts in millions) Percent
Change
Years Ended December 31 2014 2013 Change
Noninterest-bearing deposits $ 25,019 $ 22,379 $ 2,640 12 %
Money market and interest-bearing checking deposits 22,891 21,704 1,187 5
Savings deposits 1,744 1,657 87 5
Customer certificates of deposit 4,869 5,471 (602) (11)
Foreign office and other time deposits 261 500 (239) (48)
Total deposits $ 54,784 $ 51,711 $ 3,073 6 %
Short-term borrowings $ 200 $ 211 $ (11) (6)%
Medium- and long-term debt 2,965 3,972 (1,007) (25)
Total borrowed funds $ 3,165 $ 4,183 $ (1,018) (24)%
Average deposits increased $3.1 billion, or 6 percent, to $54.8 billion in 2014, compared to $51.7 billion in 2013. Average
deposits increased in almost all business lines from 2013 to 2014, with the largest increases in general Middle Market ($962
million), Technology and Life Sciences ($769 million), Retail Banking ($383 million), Commercial Real Estate ($369 million)
and Corporate Banking ($362 million). Average deposits increased in all geographic markets from 2013 to 2014, including increases
in California ($1.4 billion), Michigan ($677 million), Texas ($517 million) and Other Markets ($476 million). Average noninterest-
bearing deposits increased $2.6 billion, or 12 percent, to $25.0 billion in 2014, compared to $22.4 billion in 2013. At December 31,
2014, total deposits were $57.5 billion, an increase of $4.2 billion, or 8 percent, compared to $53.3 billion at December 31, 2013.
Noninterest-bearing deposits were $27.2 billion at December 31, 2014, an increase of $3.3 billion, or 14 percent, compared to
$23.9 billion at December 31, 2013.
Short-term borrowings primarily include federal funds purchased and securities sold under agreements to repurchase.
Average short-term borrowings decreased $11 million, to $200 million in 2014, compared to $211 million in 2013, primarily
reflecting a decrease in securities sold under agreements to repurchase. Total short-term borrowings at December 31, 2014 were
$116 million, a decrease of $137 million compared to $253 million at December 31, 2013.
Average medium- and long-term debt decreased $1.0 billion, or 25 percent, to $3.0 billion in 2014, compared to $4.0
billion in 2013. The Corporation uses medium- and long-term debt to provide funding to support earning assets. Total medium-
and long-term debt at December 31, 2014 decreased $864 million to $2.7 billion, compared to $3.5 billion at December 31, 2013.
The net decrease resulted from the maturity or redemption of $1.0 billion of FHLB advances and $400 million of subordinated
notes, partially offset by the issuances of $250 million of subordinated notes and $350 million of medium-term notes.
Further information on medium- and long-term debt is provided in Note 12 to the consolidated financial statements.