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Commitments, Contingent Liabilities and Guarantees (Tables)

6 Months Ended

Jun. 30, 2013

Commitments, Contingent Liabilities and Guarantees

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:

		June 30,	December 31,
($ in millions)		2013	2012
Commitments to extend credit	$	56,151	53,403
Forward contracts to sell mortgage loans		7,298	5,322
Letters of credit		4,043	4,281
Noncancelable lease obligations		758	769
Capital commitments for private equity investments		107	121
Purchase obligations		77	87
Capital expenditures		33	29
Capital lease obligations		22	24

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table:

		June 30,	December 31,
($ in millions)		2013	2012
Pass	$	55,539	52,812
Special mention		311	370
Substandard		301	221
Total	$	56,151	53,403

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 as summarized in the following table expire as of:

		June 30,
($ in millions)		2013
Less than 1 year^(a)	$	1,703
1 - 5 years^(a)		2,291
Over 5 years		49
Total	$	4,043

Includes $65 and $3 issued on behalf of commercial customers to facilitate trade payments in U.S. dollars and foreign currencies which expire less than one year and between one and five years, respectively.

Credit Risk associated with Letters of Credit

Risk ratings under this risk rating system are summarized in the following table:

		June 30,	December 31,
($ in millions)		2013	2012
Pass	$	3,531	3,902
Special mention		209	129
Substandard		279	223
Doubtful		24	27
Total	$	4,043	4,281

Activity in Reserve for Representation and Warranty Provisions

The following table summarizes activity in the reserve for representation and warranty provisions:

		For the three months ended June 30,		For the six months ended June 30,
($ in millions)		2013	2012	2013	2012
Balance, beginning of period	$	112	55	110	55
Net additions to the reserve		18	15	37	29
Losses charged against the reserve		(13)	(13)	(30)	(27)
Balance, end of period	$	117	57	117	57

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table provides a rollforward of unresolved demands by claimant type for the six months ended June 30, 2013:

	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	294	$	48	124	$	19
New demands	954		129	153		2
Loan paydowns/payoffs	(7)		(2)	(7)		(1)
Resolved demands	(907)		(128)	(233)		(14)
Balance, end of period	334	$	47	37	$	6

The following table provides a rollforward of unresolved demands by claimant type for the six months ended June 30, 2012:

	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	328	$	47	109	$	19
New demands	1,546		207	119		3
Loan paydowns/payoffs	(22)		(3)	-		-
Resolved demands	(1,385)		(172)	(111)		(4)
Balance, end of period	467	$	79	117	$	18

- Definition

The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.

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- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

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