Comerica 2015 Annual Report Download - page 58

F-20
As of December 31, 2015, the Corporation's auction-rate securities portfolio was carried at an estimated fair value of $77
million, compared to $136 million at December 31, 2014. During 2015, auction-rate securities with a par value of $63 million
were redeemed or sold, resulting in net securities losses of $2 million. As of December 31, 2015, approximately 94 percent of the
aggregate auction-rate securities par value had been redeemed or sold since the portfolio was acquired in 2008, for a cumulative
net gain of $52 million.
Interest-Bearing Deposits with Banks and Other Short-Term Investments
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. Other short-term investments
include federal funds sold, trading securities and loans held-for-sale. Substantially all trading securities are deferred compensation
plan assets. Loans held-for-sale typically represent residential mortgage loans originated with management's intention to sell and,
from time to time, other loans that are transferred to held-for-sale. Federal funds sold offer supplemental earnings opportunities
and serve correspondent banks. Interest-bearing deposits with banks and federal funds sold provide a range of maturities of less
than one year and are mostly used to manage liquidity requirements of the Corporation. Interest-bearing deposits with banks
decreased $55 million to $5.0 billion at December 31, 2015. Other short-term investments increased $14 million to $113 million
at December 31, 2015. On an average basis, interest-bearing deposits increased $645 million to $6.2 billion in 2015, compared to
$5.5 billion in 2014, primarily reflecting a $622 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 2015 2014 Change
Noninterest-bearing deposits $ 28,087 $ 25,019 $ 3,068 12 %
Money market and interest-bearing checking deposits 24,073 22,891 1,182 5
Savings deposits 1,841 1,744 97 6
Customer certificates of deposit 4,209 4,869 (660) (14)
Foreign office and other time deposits 116 261 (145) (55)
Total deposits $ 58,326 $ 54,784 $ 3,542 6 %
Short-term borrowings $93 $ 200 $ (107) (53)%
Medium- and long-term debt 2,905 2,963 (58) (2)
Total borrowed funds $ 2,998 $ 3,163 $ (165) (5)%
Average deposits increased $3.5 billion, or 6 percent, to $58.3 billion in 2015, compared to $54.8 billion in 2014. Average
deposits increased in almost all business lines from 2014 to 2015, with the largest increases in general Middle Market ($1.0 billion),
Personal Banking ($645 million), Technology and Life Sciences ($494 million), Corporate Banking ($396 million), Private Banking
($315 million) and Small Business Banking ($264 million). Average deposits increased in all geographic markets from 2014 to
2015, including increases in California ($1.6 billion), Michigan ($849 million), Texas ($118 million) and Other Markets ($1.0
billion). Average noninterest-bearing deposits increased $3.1 billion, or 12 percent, to $28.1 billion in 2015, compared to $25.0
billion in 2014. At December 31, 2015, total deposits were $59.9 billion, an increase of $2.4 billion, or 4 percent, compared to
$57.5 billion at December 31, 2014. Noninterest-bearing deposits were $30.8 billion at December 31, 2015, an increase of $3.6
billion, or 13 percent, compared to $27.2 billion at December 31, 2014. The growth in deposits generally reflects the significant
liquidity of the Corporation's customers.
Short-term borrowings primarily include federal funds purchased and securities sold under agreements to repurchase.
Average short-term borrowings decreased $107 million, to $93 million in 2015, compared to $200 million in 2014, primarily
reflecting a decrease in securities sold under agreements to repurchase. Total short-term borrowings at December 31, 2015 were
$23 million, a decrease of $93 million compared to $116 million at December 31, 2014.
Average medium- and long-term debt decreased $58 million, or 2 percent, to $2.9 billion in 2015, compared to $3.0
billion in 2014. The Corporation uses medium- and long-term debt to provide funding to support earning assets, liquidity and
regulatory capital. Total medium- and long-term debt at December 31, 2015 increased $383 million to $3.1 billion, compared to
$2.7 billion at December 31, 2014. The net increase resulted from issuances of a total of $675 million of medium-term notes in
the second and third quarters and $350 million of subordinated notes in the third quarter, partially offset by the maturities of $300
million of subordinated notes in the second quarter and $300 million of medium-term notes in the third quarter.
Further information on medium- and long-term debt is provided in Note 12 to the consolidated financial statements.