Commitments, Contingent Liabilities and Guarantees (Tables)

3 Months Ended

Mar. 31, 2020

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:

($ in millions)	March 31,     2020		December 31,     2019
Commitments to extend credit	$	66,790		75,696
Forward contracts related to residential mortgage loans held for sale		3,987		2,901
Letters of credit		2,190		2,137
Purchase obligations		136		113
Capital expenditures		101		84
Capital commitments for private equity investments		72		75

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)	March 31,     2020		December 31,     2019
Pass	$	65,578		74,654
Special mention		737		633
Substandard		475		408
Doubtful		-		1
Total commitments to extend credit	$	66,790		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 March 31, 2020:

($ in millions)
Less than 1 year(a)	$	1,137
1 - 5 years(a)		1,047
Over 5 years		6
Total letters of credit	$	2,190

(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)	March 31,     2020		December 31, 2019
Pass	$	2,045		2,005
Special mention		30		20
Substandard		115		111
Doubtful		-		1
Total letters of credit	$	2,190		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