Commitments, Contingent Liabilities and Guarantees (Tables)

12 Months Ended

Dec. 31, 2017

Commitments, Contingent Liabilities and Guarantees

Summary of Significant Commitments

The Bancorp has certain commitments to make future payments under contracts. The following table reflects a summary of significant commitments as of December 31:
($ in millions)		2017	2016
Commitments to extend credit	$	68,106	67,909
Letters of credit		2,185	2,583
Forward contracts related to residential mortgage loans held for sale		1,284	1,823
Noncancelable operating lease obligations		568	576
Purchase obligations		144	57
Capital commitments for private equity investments		48	59
Capital expenditures		37	29
Capital lease obligations		26	19

Credit Risk Associated With Commitments

Risk ratings under this risk rating system are summarized in the following table as of December 31:
($ in millions)		2017	2016
Pass	$	67,254	66,802
Special mention		330	338
Substandard		522	753
Doubtful		-	16
Total commitments to extend credit	$	68,106	67,909

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

Letters of credit
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 December 31, 2017:
($ in millions)
Less than 1 year(a)	$	1,170
1 - 5 years(a)		999
Over 5 years		16
Total letters of credit	$	2,185

(a) Includes $7and $1 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 under this risk rating system are summarized in the following table as of December 31:
($ in millions)		2017	2016
Pass	$	1,830	2,134
Special mention		67	98
Substandard		218	290
Doubtful		70	61
Total letters of credit	$	2,185	2,583

Activity in Reserve for Representation and Warranty Provisions

The following table summarizes activity in the reserve for representation and warranty provisions for the years ended December 31:
($ in millions)		2017	2016
Balance, beginning of period	$	13	25
Net reductions to the reserve		(3)	(10)
Losses charged against the reserve		(1)	(2)
Balance, end of period	$	9	13

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following tables provide a rollforward of unresolved claims by claimant type for the years ended December 31:
	GSE			Private Label
2017 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	13	$	2	-	$	-
New demands	109		15	1		-
Loan paydowns/payoffs	(2)		-	-		-
Resolved demands	(114)		(16)	-		-
Balance, end of period	6	$	1	1	$	-

	GSE			Private Label
2016 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	16	$	4	2	$	-
New demands	309		22	4		-
Loan paydowns/payoffs	(8)		(1)	-		-
Resolved demands	(304)		(23)	(6)		-
Balance, end of period	13	$	2	-	$	-

Visa Funding and Bancorp Cash Payments

		Visa	Bancorp Cash
Period ($ in millions)		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