XML 37 R26.htm IDEA: XBRL DOCUMENT
v3.21.2

Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] |
Allowance for Credit Losses on Financing Receivables | The table below summarizes changes in the allowance for credit losses and reserve for unfunded lending commitments by portfolio segment for the three and nine months ended September 30, 2021 and 2020. Our allowance for credit losses decreased by $4.0 billion to $11.6 billion as of September 30, 2021 from December 31, 2020, primarily driven by strong credit performance and improved economic outlook. Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
|  | Three Months Ended September 30, 2021
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2021 |  | $ | 8,873 |  |  | $ | 2,203 |  |  | $ | 1,270 |  |  |  |  | $ | 12,346 |
Charge-offs |  | (735) |  |  | (264) |  |  | (20) |  |  |  |  | (1,019) |
Recoveries(1) |  | 369 |  |  | 213 |  |  | 11 |  |  |  |  | 593 |
Net charge-offs |  | (366) |  |  | (51) |  |  | (9) |  |  |  |  | (426) |
Provision (benefit) for credit losses |  | (198) |  |  | (91) |  |  | (55) |  |  |  |  | (344) |
Allowance build (release) for credit losses |  | (564) |  |  | (142) |  |  | (64) |  |  |  |  | (770) |
Other changes(4) |  | (3) |  |  | 0 |  |  | 0 |  |  |  |  | (3) |
Balance as of September 30, 2021 |  | 8,306 |  |  | 2,061 |  |  | 1,206 |  |  |  |  | 11,573 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2021 |  | 0 |  |  | 0 |  |  | 164 |  |  |  |  | 164 |
Provision (benefit) for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | 2 |  |  |  |  | 2 |
Balance as of September 30, 2021 |  | 0 |  |  | 0 |  |  | 166 |  |  |  |  | 166 |
Combined allowance and reserve as of September 30, 2021 |  | $ | 8,306 |  |  | $ | 2,061 |  |  | $ | 1,372 |  |  |  |  | $ | 11,739 |
|  | Nine Months Ended September 30, 2021
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2020 |  | $ | 11,191 |  |  | $ | 2,715 |  |  | $ | 1,658 |  |  |  |  | $ | 15,564 |
Charge-offs |  | (2,695) |  |  | (866) |  |  | (47) |  |  |  |  | (3,608) |
Recoveries(1) |  | 1,125 |  |  | 735 |  |  | 41 |  |  |  |  | 1,901 |
Net charge-offs |  | (1,570) |  |  | (131) |  |  | (6) |  |  |  |  | (1,707) |
Provision (benefit) for credit losses |  | (1,325) |  |  | (523) |  |  | (446) |  |  |  |  | (2,294) |
Allowance build (release) for credit losses |  | (2,895) |  |  | (654) |  |  | (452) |  |  |  |  | (4,001) |
Other changes(4) |  | 10 |  |  | 0 |  |  | 0 |  |  |  |  | 10 |
Balance as of September 30, 2021 |  | 8,306 |  |  | 2,061 |  |  | 1,206 |  |  |  |  | 11,573 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2020 |  | 0 |  |  | 0 |  |  | 195 |  |  |  |  | 195 |
Provision (benefit) for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | (29) |  |  |  |  | (29) |
Balance as of September 30, 2021 |  | 0 |  |  | 0 |  |  | 166 |  |  |  |  | 166 |
Combined allowance and reserve as of September 30, 2021 |  | $ | 8,306 |  |  | $ | 2,061 |  |  | $ | 1,372 |  |  |  |  | $ | 11,739 |
|  | Three Months Ended September 30, 2020
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2020 |  | $ | 12,091 |  |  | $ | 2,838 |  |  | $ | 1,903 |  |  |  |  | $ | 16,832 |
Charge-offs |  | (1,296) |  |  | (295) |  |  | (88) |  |  |  |  | (1,679) |
Recoveries(1) |  | 353 |  |  | 247 |  |  | 6 |  |  |  |  | 606 |
Net charge-offs |  | (943) |  |  | (48) |  |  | (82) |  |  |  |  | (1,073) |
Provision (benefit) for credit losses |  | 450 |  |  | (43) |  |  | (51) |  |  |  |  | 356 |
Allowance build (release) for credit losses |  | (493) |  |  | (91) |  |  | (133) |  |  |  |  | (717) |
Other changes(2) |  | 14 |  |  | 0 |  |  | 0 |  |  |  |  | 14 |
Balance as of September 30, 2020 |  | 11,612 |  |  | 2,747 |  |  | 1,770 |  |  |  |  | 16,129 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Balance as of June 30, 2020 |  | 0 |  |  | 0 |  |  | 218 |  |  |  |  | 218 |
Provision (benefit) for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | (23) |  |  |  |  | (23) |
Balance as of September 30, 2020 |  | 0 |  |  | 0 |  |  | 195 |  |  |  |  | 195 |
Combined allowance and reserve as of September 30, 2020 |  | $ | 11,612 |  |  | $ | 2,747 |  |  | $ | 1,965 |  |  |  |  | $ | 16,324 |
|  | Nine Months Ended September 30, 2020
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2019 |  | $ | 5,395 |  |  | $ | 1,038 |  |  | $ | 775 |  |  |  |  | $ | 7,208 |
Cumulative effects from adoption of the CECL standard |  | 2,241 |  |  | 502 |  |  | 102 |  |  |  |  | 2,845 |
Finance charge and fee reserve reclassification(3) |  | 462 |  |  | 0 |  |  | 0 |  |  |  |  | 462 |
Balance as of January 1, 2020 |  | 8,098 |  |  | 1,540 |  |  | 877 |  |  |  |  | 10,515 |
Charge-offs |  | (4,757) |  |  | (1,207) |  |  | (303) |  |  |  |  | (6,267) |
Recoveries(1) |  | 1,167 |  |  | 721 |  |  | 10 |  |  |  |  | 1,898 |
Net charge-offs |  | (3,590) |  |  | (486) |  |  | (293) |  |  |  |  | (4,369) |
Provision (benefit) for credit losses |  | 7,096 |  |  | 1,693 |  |  | 1,186 |  |  |  |  | 9,975 |
Allowance build (release) for credit losses |  | 3,506 |  |  | 1,207 |  |  | 893 |  |  |  |  | 5,606 |
Other changes(2) |  | 8 |  |  | 0 |  |  | 0 |  |  |  |  | 8 |
Balance as of September 30, 2020 |  | 11,612 |  |  | 2,747 |  |  | 1,770 |  |  |  |  | 16,129 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2019 |  | 0 |  |  | 5 |  |  | 130 |  |  |  |  | 135 |
Cumulative effects from adoption of the CECL standard |  | 0 |  |  | (5) |  |  | 42 |  |  |  |  | 37 |
Balance as of January 1, 2020 |  | 0 |  |  | 0 |  |  | 172 |  |  |  |  | 172 |
Provision (benefit) for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | 23 |  |  |  |  | 23 |
Balance as of September 30, 2020 |  | 0 |  |  | 0 |  |  | 195 |  |  |  |  | 195 |
Combined allowance and reserve as of September 30, 2020 |  | $ | 11,612 |  |  | $ | 2,747 |  |  | $ | 1,965 |  |  |  |  | $ | 16,324 |
__________ (1)The amount and timing of recoveries are impacted by our collection strategies, which are based on customer behavior and risk profile and include direct customer communications, repossession of collateral, the periodic sale of charged off loans as well as additional strategies, such as litigation. (2)Represents foreign currency translation adjustments. (3)Concurrent with our adoption of the CECL standard in the first quarter of 2020, we reclassified our finance charge and fee reserve to our allowance for credit losses, with a corresponding increase to credit card loans held for investment. (4)Represents foreign currency translation adjustments and an initial allowance for purchased credit-deteriorated loans of $6 million.
Schedule of Loss Sharing Arrangement Impact | The table below summarizes the changes in the estimated reimbursements from these partners for the three and nine months ended September 30, 2021 and 2020. Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
|  | Three Months Ended September 30, |  |
(Dollars in millions) |  | 2021 |  | 2020 |  |
Estimated reimbursements from partners, beginning of period |  | $ | 1,711 |  |  | $ | 2,433 |  |  |
Amounts due from partners which reduced net charge-offs |  | (80) |  |  | (212) |  |  |
Amounts estimated to be charged (from) to partners which reduced provision for credit losses |  | (181) |  |  | 121 |  |  |
Estimated reimbursements from partners, end of period |  | $ | 1,450 |  |  | $ | 2,342 |  |  |
|  | Nine Months Ended September 30, |  |
(Dollars in millions) |  | 2021 |  | 2020 |  |
Estimated reimbursements from partners, beginning of period |  | $ | 2,159 |  |  | $ | 2,166 |  |  |
Amounts due from partners which reduced net charge-offs |  | (349) |  |  | (807) |  |  |
Amounts estimated to be charged (from) to partners which reduced provision for credit losses |  | (360) |  |  | 983 |  |  |
Estimated reimbursements from partners, end of period |  | $ | 1,450 |  |  | $ | 2,342 |  |  |

X
- Definition Schedule of loss sharing arrangement impact + References No definition available. + Details
Name: | cof_ScheduleofLossSharingArrangementImpactTableTextBlock
Namespace Prefix: | cof_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_AccountsNotesLoansAndFinancingReceivableGrossAllowanceAndNetAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11B -URI http://asc.fasb.org/extlink&oid=123577603&loc=SL6953423-111524 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=124255953&loc=SL82919249-210447 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration