Commitments, Contingent Liabilities and Guarantees (Tables)

9 Months Ended

Sep. 30, 2014

Commitments, Contingent Liabilities and Guarantees

Summary of Significant Commitments

Commitments
The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of:
		September 30,	December 31,
($ in millions)		2014	2013
Commitments to extend credit	$	63,379	62,050
Letters of credit		3,931	4,129
Forward contracts to sell mortgage loans		977	1,448
Noncancelable lease obligations		708	746
Capital commitments for private equity investments		85	90
Purchase obligations		79	84
Capital expenditures		34	33
Capital lease obligations		14	19

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of:
		September 30,	December 31,
($ in millions)		2014	2013
Pass	$	62,333	61,364
Special mention		603	369
Substandard		441	316
Doubtful		2	1
Total	$	63,379	62,050

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, 2014:
($ in millions)
Less than 1 year(a)	$	2,097
1 - 5 years(a)		1,748
Over 5 years		86
Total	$	3,931

• Includes $29and $18issued 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 as of:
		September 30,	December 31,
($ in millions)		2014	2013
Pass	$	3,452	3,651
Special mention		141	99
Substandard		308	355
Doubtful		30	24
Total	$	3,931	4,129

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 September 30,		For the nine months ended September 30,
($ in millions)		2014	2013	2014	2013
Balance, beginning of period	$	36	117	44	110
Net additions to the reserve		1	(3)	5	34
Losses charged against the reserve		(2)	(11)	(14)	(41)
Balance, end of period	$	35	103	35	103

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2014:
	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	264	$	41	33	$	5
New demands	643		84	11		-
Loan paydowns/payoffs	(33)		(4)	(2)		(1)
Resolved demands	(780)		(106)	(42)		(4)
Balance, end of period	94	$	15	-	$	-

The following table provides a rollforward of unresolved demands by claimant type for the nine months ended September 30, 2013:
	GSE			Private Label
($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	294	$	48	124	$	19
New demands	1,409		189	223		2
Loan paydowns/payoffs	(11)		(2)	(6)		(1)
Resolved demands	(1,397)		(190)	(311)		(16)
Balance, end of period	295	$	45	30	$	4

Visa Funding and Bancorp Cash Payments

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

($ in millions)
		Visa		Bancorp Cash
Period		Funding Amount		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	i(a)

• The settlement of the Bancorp cash payment for the third quarter of 2014 occurred on October 6, 2014.