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New words:
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acquisition, activated, adversely, affecting, agent, amend, annuity, assurance, bankruptcy, big, BTFP, California, captioned, care, categorized, China, client, collapse, compelling, competition, computed, concession, conditioning, conduct, confidence, confirmed, conflict, contact, contingency, create, created, creditor, deferral, depending, depository, disability, discharged, diversification, downgrade, downgraded, eliminated, expanding, experienced, expose, facing, fail, failure, fall, FCA, governing, gradual, granted, impairment, incentive, increasing, interrelated, Kingdom, lack, legacy, LIBOR, liquidated, lowered, macro, maximize, missed, monetized, Moody, move, negatively, newly, notch, occurred, original, par, permit, persuading, PPP, prospectively, pursuant, qualifying, recent, recognize, relation, renegotiated, restricted, retirement, returning, routine, routinely, run, shift, stop, strength, submit, subset, substantial, supported, sweep, syndication, TDR, trading, troubled, vesting, weakening
Financial report summary
?Risks
- Unfavorable developments concerning credit quality could adversely affect Comerica's financial results.
Management Discussion
- Total assets decreased $6.4 billion to $79.4 billion, reflecting a $3.6 billion decrease in interest-bearing deposits with banks (primarily with the Federal Reserve Bank) and a $1.3 billion decrease in total loans, which included decreases of $498 million in National Dealer Services, $464 million in Equity Fund Services, $239 million in Mortgage Banker Finance and $222 million in Wealth Management, partially offset by an increase of $336 million in Commercial Real Estate. These declines reflected strategic actions taken in 2023, including the substantially complete exit from the Mortgage Banker Finance business, as well as increased selectivity in other lines of business.
- Total liabilities decreased $6.0 billion to $73.4 billion, reflecting decreases of $3.6 billion in short-term borrowings, $2.0 billion in noninterest-bearing deposits and $1.2 billion in interest-bearing deposits, partially offset by an increase of $915 million in medium- and long-term debt due to the issuance of $1.0 billion in senior notes in January 2024. The decrease in short-term borrowings was primarily driven by paydowns on FHLB advances, while the decline in deposits reflected normal first quarter seasonality. For additional information regarding deposits, refer to "Deposit Concentrations and Uninsured Deposits" under the "Market Risk" subheading in the "Risk Management" section of this financial review. Total shareholders' equity decreased $356 million, primarily due to the net impact of unrealized losses on cash flow hedges and investment securities available-for-sale, partially offset by net income.
- The $1.4 billion decrease in loans was primarily driven by decreases of $484 million in general Middle Market, $473 million in Equity Fund Services and $321 million in National Dealer Services, partially offset by an increase of $450 million in Commercial Real Estate.