Commitments, Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2020

Commitments and Contingencies Disclosure [Abstract]

Summary of Significant Commitments

The following table reflects a summary of significant commitments as of:

($ in millions)	September 30, 2020		December 31, 2019
Commitments to extend credit	$	73,903	75,696
Forward contracts related to residential mortgage loans held for sale	3,087		2,901
Letters of credit	1,900		2,137
Purchase obligations	132		113
Capital commitments for private equity investments	86		75
Capital expenditures	80		84

Credit Risk Associated with Commitments

Risk ratings of outstanding commitments to extend credit under this risk rating system are summarized in the following table as of:

($ in millions)	September 30, 2020		December 31, 2019
Pass	$	70,735	74,654
Special mention	2,165		633
Substandard	1,003		408
Doubtful	—		1
Total commitments to extend credit	$	73,903	75,696

Standby and Commercial Letters of Credit, Conditional Commitments Issued to Guarantee the Performance of a Customer to a Third Party

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party and expire as summarized in the following table as of September 30, 2020:

($ in millions)
Less than 1 year(a)	$	1,014
1 - 5 years(a)	884
Over 5 years	2
Total letters of credit	$	1,900

(a)Includes $3 and $2 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than 1 year and between 1 -5 years, respectively.

Credit Risk Associated with Letters of Credit

Risk ratings of outstanding letters of credit under this risk rating system are summarized in the following table as of:

($ in millions)	September 30, 2020		December 31, 2019
Pass	$	1,663	2,005
Special mention	102		20
Substandard	135		111
Doubtful	—		1
Total letters of credit	$	1,900	2,137

Visa Funding and Bancorp Cash Payments

After the Bancorp’s sale of the Class B Shares, Visa has funded additional amounts into the litigation escrow account which have resulted in further dilutive adjustments to the conversion of Class B Shares into Class A Shares, and along with other terms of the total return swap, required the Bancorp to make cash payments in varying amounts to the swap counterparty as follows:

Period ($ in millions)	Visa Funding Amount		Bancorp Cash Payment Amount
Q2 2010	$	500	20
Q4 2010	800		35
Q2 2011	400		19
Q1 2012	1,565		75
Q3 2012	150		6
Q3 2014	450		18
Q2 2018	600		26
Q3 2019	300		12