Commitments

3 Months Ended

Mar. 31, 2020

Commitments and Guarantees [Abstract]

COMMITMENTS

In the normal course of business, we have various commitments outstanding, certain of which are not included on our Consolidated Balance Sheet. The following table presents our outstanding commitments to extend credit along with significant other commitments as of March 31, 2020 and December 31, 2019, respectively.

Table 59: Commitments to Extend Credit and Other Commitments



In millions	March 31 2020		December 31 2019
Commitments to extend credit
Total commercial lending	$	115,996	$	131,762
Home equity lines of credit	16,843		16,803
Credit card	32,065		30,862
Other	7,100		6,162
Total commitments to extend credit	172,004		185,589
Net outstanding standby letters of credit (a)	9,428		9,843
Reinsurance agreements (b)	110		1,393
Standby bond purchase agreements (c)	1,464		1,295
Other commitments (d)	1,530		1,498
Total commitments to extend credit and other commitments	$	184,536	$	199,618


(a)	Net outstanding standby letters of credit include $4.0 billion and $4.1 billion at March 31, 2020 and December 31, 2019, respectively, which support remarketing programs.

(b)

Represents aggregate maximum exposure up to the specified limits of the reinsurance contracts provided by our wholly-owned captive insurance subsidiary. These amounts reflect estimates based on availability of financial information from insurance carriers. As of March 31, 2020, the aggregate maximum exposure amount was zero for accidental death and dismemberment contracts, and $.1 billion for credit life, accident and health contracts. Comparable amounts at December 31, 2019 were $1.3 billion and $.1 billion, respectively.


(c)	We enter into standby bond purchase agreements to support municipal bond obligations.


(d)	Includes $.6 billion related to investments in qualified affordable housing projects at both March 31, 2020 and December 31, 2019.

Commitments to Extend Credit

Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions. These commitments generally have fixed expiration dates, may require payment of a fee, and generally contain termination clauses in the event the customer’s credit quality deteriorates.

Net Outstanding Standby Letters of Credit

We issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions, in each case to support obligations of our customers to third parties, such as insurance requirements and the facilitation of transactions involving capital markets product execution. Approximately 97% of our net outstanding standby letters of credit were rated as Pass as of March 31, 2020, with the remainder rated as Criticized. An internal credit rating of Pass indicates the expected risk of loss is currently low, while a rating of Criticized indicates a higher degree of risk.

If the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program, then upon a draw by a beneficiary, subject to the terms of the letter of credit, we would be obligated to make payment to them. The standby letters of credit outstanding on March 31, 2020 had terms ranging from less than one year to six years.

As of March 31, 2020, assets of $1.1 billion secured certain specifically identified standby letters of credit. In addition, a portion of the remaining standby letters of credit issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers’ other obligations to us. The carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $.2 billion at March 31, 2020 and is included in Other liabilities on our Consolidated Balance Sheet.