Commitments

12 Months Ended

Dec. 31, 2023

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 other commitments as of December 31, 2023 and 2022.

Table 71: Commitments to Extend Credit and Other Commitments


In millions	December 31, 2023		December 31, 2022
Commitments to extend credit
Commercial	$	203,080	$	198,542
Home equity	23,970		22,783
Credit card	33,978		33,066
Other	7,363		7,337
Total commitments to extend credit	268,391		261,728
Net outstanding standby letters of credit (a)	10,913		10,575
Standby bond purchase agreements (b)	1,078		1,208
Other commitments (c)	4,386		3,661
Total commitments to extend credit and other commitments	$	284,768	$	277,172

(a)Net outstanding standby letters of credit include $3.9 billion and $3.6 billion at December 31, 2023 and 2022, respectively, which support remarketing programs.

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

(c)Includes $2.1 billion and $2.2 billion related to investments in qualified affordable housing projects at December 31, 2023 and 2022, respectively.

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 at December 31, 2023, 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 December 31, 2023 had terms ranging from less than one year to seven years.

As of December 31, 2023, assets of $1.2 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 $0.2 billion at December 31, 2023 and is included in Other liabilities on our Consolidated Balance Sheet.