Commitments, Contingent Liabilities and Guarantees (Tables)

12 Months Ended

Dec. 31, 2018

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)		2018	2017
Commitments to extend credit	$	70,415	68,106
Letters of credit		2,041	2,185
Forward contracts related to residential mortgage loans held for sale		926	1,284
Noncancelable operating lease obligations		603	568
Purchase obligations		126	144
Capital expenditures		45	37
Capital commitments for private equity investments		32	48
Capital lease obligations		20	26

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 December 31:
($ in millions)		2018	2017
Pass	$	69,928	67,254
Special mention		271	330
Substandard		216	522
Total commitments to extend credit	$	70,415	68,106

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, 2018:
($ in millions)
Less than 1 year(a)	$	1,044
1 - 5 years(a)		989
Over 5 years		8
Total letters of credit	$	2,041

(a) Includes $1and $18 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)		2018	2017
Pass	$	1,905	1,830
Special mention		10	67
Substandard		126	218
Doubtful		-	70
Total letters of credit	$	2,041	2,185

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)		2018	2017
Balance, beginning of period	$	9	13
Net reductions to the reserve		(3)	(3)
Losses charged against the reserve		-	(1)
Balance, end of period	$	6	9

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
2018 ($ in millions)	Units		Dollars	Units		Dollars
Balance, beginning of period	6	$	1	1	$	-
New demands	121		19	-		-
Resolved demands	(118)		(19)	-		-
Balance, end of period	9	$	1	1	$	-

	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	$	-

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
Q2 2018		600	26