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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables) | 12 Months Ended
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Dec. 31, 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 years ended December 31, 2021, 2020 and 2019. Our allowance for credit losses decreased by $4.1 billion to $11.4 billion as of December 31, 2021 from 2020, primarily driven by strong credit performance and an improved economic outlook.Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2018 |  | $ | 5,535 |  |  | $ | 1,048 |  |  | $ | 637 |  |  |  |  | $ | 7,220 |
Charge-offs |  | (6,711) |  |  | (1,917) |  |  | (181) |  |  |  |  | (8,809) |
Recoveries(1) |  | 1,562 |  |  | 970 |  |  | 25 |  |  |  |  | 2,557 |
Net charge-offs |  | (5,149) |  |  | (947) |  |  | (156) |  |  |  |  | (6,252) |
Provision for loan and lease losses |  | 4,992 |  |  | 937 |  |  | 294 |  |  |  |  | 6,223 |
Allowance build (release) for loan and lease losses |  | (157) |  |  | (10) |  |  | 138 |  |  |  |  | (29) |
Other changes(2) |  | 17 |  |  | 0 |  |  | 0 |  |  |  |  | 17 |
Balance as of December 31, 2019 |  | 5,395 |  |  | 1,038 |  |  | 775 |  |  |  |  | 7,208 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2018 |  | 0 |  |  | 4 |  |  | 118 |  |  |  |  | 122 |
Provision for losses on unfunded lending commitments |  | 0 |  |  | 1 |  |  | 12 |  |  |  |  | 13 |
Balance as of December 31, 2019 |  | 0 |  |  | 5 |  |  | 130 |  |  |  |  | 135 |
Combined allowance and reserve as of December 31, 2019 |  | $ | 5,395 |  |  | $ | 1,043 |  |  | $ | 905 |  |  |  |  | $ | 7,343 |
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 |  | (5,749) |  |  | (1,534) |  |  | (394) |  |  |  |  | (7,677) |
Recoveries(1) |  | 1,479 |  |  | 956 |  |  | 17 |  |  |  |  | 2,452 |
Net charge-offs |  | (4,270) |  |  | (578) |  |  | (377) |  |  |  |  | (5,225) |
Provision for credit losses |  | 7,327 |  |  | 1,753 |  |  | 1,158 |  |  |  |  | 10,238 |
Allowance build for credit losses(4) |  | 3,057 |  |  | 1,175 |  |  | 781 |  |  |  |  | 5,013 |
Other changes(2) |  | 36 |  |  | 0 |  |  | 0 |  |  |  |  | 36 |
Balance as of December 31, 2020 |  | $ | 11,191 |  |  | $ | 2,715 |  |  | $ | 1,658 |  |  |  |  | $ | 15,564 |
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 for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | 23 |  |  |  |  | 23 |
Balance as of December 31, 2020 |  | 0 |  |  | 0 |  |  | 195 |  |  |  |  | 195 |
Combined allowance and reserve as of December 31, 2020 |  | $ | 11,191 |  |  | $ | 2,715 |  |  | $ | 1,853 |  |  |  |  | $ | 15,759 |
Allowance for credit losses: |  |  |  |  |  |  |  |  |  |
Balance as of December 31, 2020 |  | $ | 11,191 |  |  | $ | 2,715 |  |  | $ | 1,658 |  |  |  |  | $ | 15,564 |
Charge-offs |  | (3,481) |  |  | (1,211) |  |  | (48) |  |  |  |  | (4,740) |
Recoveries(1) |  | 1,525 |  |  | 935 |  |  | 46 |  |  |  |  | 2,506 |
Net charge-offs |  | (1,956) |  |  | (276) |  |  | (2) |  |  |  |  | (2,234) |
Provision (benefit) for credit losses |  | (902) |  |  | (521) |  |  | (489) |  |  |  |  | (1,912) |
Allowance build (release) for credit losses |  | (2,858) |  |  | (797) |  |  | (491) |  |  |  |  | (4,146) |
Other changes(5) |  | 12 |  |  | 0 |  |  | 0 |  |  |  |  | 12 |
Balance as of December 31, 2021 |  | 8,345 |  |  | 1,918 |  |  | 1,167 |  |  |  |  | 11,430 |
Reserve for unfunded lending commitments: |  |  |  |  |  |  |  |  |  |
(Dollars in millions) |  | Credit Card |  | Consumer Banking |  | Commercial Banking |  |  |  | Total
Balance as of December 31, 2020 |  | 0 |  |  | 0 |  |  | 195 |  |  |  |  | 195 |
Provision (benefit) for losses on unfunded lending commitments |  | 0 |  |  | 0 |  |  | (30) |  |  |  |  | (30) |
Balance as of December 31, 2021 |  | 0 |  |  | 0 |  |  | 165 |  |  |  |  | 165 |
Combined allowance and reserve as of December 31, 2021 |  | $ | 8,345 |  |  | $ | 1,918 |  |  | $ | 1,332 |  |  |  |  | $ | 11,595 |
__________ (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)Includes an allowance release of $327 million for a partnership credit card loan portfolio transferred to held for sale in the third quarter of 2020. (5)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 years ended December 31, 2021, 2020 and 2019. Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
|  | Year Ended December 31,
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019
Estimated reimbursements from partners, beginning of period(1) |  | $ | 2,159 |  |  | $ | 2,166 |  |  | $ | 379 |
Amounts due from partners which reduced net charge-offs |  | (438) |  |  | (959) |  |  | (600) |
Amounts expected to become due from (to) partners which reduced (increased) provision for credit losses |  | (271) |  |  | 952 |  |  | 1,383 |
Estimated reimbursements from partners, end of period |  | $ | 1,450 |  |  | $ | 2,159 |  |  | $ | 1,162 |
__________ (1)Includes effects from adoption of the CECL standard in the first quarter of 2020.

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