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Unfunded Loan Commitments (Tables) | 12 Months Ended
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Dec. 31, 2021
Credit Loss [Abstract] |
Allowance for credit losses and recorded investments in loans | Allowance for Credit Losses Metrics
Year Ended December 31, 2021 (dollars in thousands) |  | FFELP Loans |  | Private Education Loans |  |  |  | Credit Cards |  | Total
Allowance for Credit Losses |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 4,378 |  |  | $ | 1,355,844 |  |  |  |  | $ | 1,501 |  |  | $ | 1,361,723 |
Transfer from unfunded commitment liability(1) |  | — |  |  | 301,655 |  |  |  |  | — |  |  | 301,655 |
Provisions: |  |  |  |  |  |  |  |  |  |
Provision for current period |  | 20 |  |  | (233,852) |  |  |  |  | 1,124 |  |  | (232,708) |
Loan sale reduction to provision |  | — |  |  | (66,460) |  |  |  |  | — |  |  | (66,460) |
Loans transferred to held-for-sale |  | — |  |  | 1,887 |  |  |  |  | — |  |  | 1,887 |
Total provisions(2) |  | 20 |  |  | (298,425) |  |  |  |  | 1,124 |  |  | (297,281) |
Net charge-offs: |  |  |  |  |  |  |  |  |  |
Charge-offs |  | (321) |  |  | (229,591) |  |  |  |  | (356) |  |  | (230,268) |
Recoveries |  | — |  |  | 29,494 |  |  |  |  | 12 |  |  | 29,506 |
Net charge-offs |  | (321) |  |  | (200,097) |  |  |  |  | (344) |  |  | (200,762) |
Ending Balance |  | $ | 4,077 |  |  | $ | 1,158,977 |  |  |  |  | $ | 2,281 |  |  | $ | 1,165,335 |
Allowance: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 47,712 |  |  |  |  | $ | — |  |  | $ | 47,712 |
Ending balance: collectively evaluated for impairment |  | $ | 4,077 |  |  | $ | 1,111,265 |  |  |  |  | $ | 2,281 |  |  | $ | 1,117,623 |
Loans: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 1,057,665 |  |  |  |  | $ | — |  |  | $ | 1,057,665 |
Ending balance: collectively evaluated for impairment |  | $ | 695,216 |  |  | $ | 19,659,198 |  |  |  |  | $ | 25,014 |  |  | $ | 20,379,428 |
Net charge-offs as a percentage of average loans in repayment(3) |  | 0.06 | % |  | 1.33 | % |  |  |  | 2.24 | % |  |
Allowance as a percentage of the ending total loan balance |  | 0.59 | % |  | 5.59 | % |  |  |  | 9.12 | % |  |
Allowance as a percentage of the ending loans in repayment(3) |  | 0.74 | % |  | 7.47 | % |  |  |  | 9.12 | % |  |
Allowance coverage of net charge-offs |  | 12.70 |  |  | 5.79 |  |  |  |  | 6.63 |  |  |
Ending total loans, gross |  | $ | 695,216 |  |  | $ | 20,716,863 |  |  |  |  | $ | 25,014 |  |  |
Average loans in repayment(3) |  | $ | 545,689 |  |  | $ | 15,019,869 |  |  |  |  | $ | 15,343 |  |  |
Ending loans in repayment(3) |  | $ | 553,980 |  |  | $ | 15,511,212 |  |  |  |  | $ | 25,014 |  |  |
(1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.
Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Year Ended December 31, 2021 (dollars in thousands) |  |
Private Education Loan provisions for credit losses: |  |
Provisions for loan losses |  | $ | (298,425) |
Provisions for unfunded loan commitments |  | 264,324 |
Total Private Education Loan provisions for credit losses |  | (34,101) |
Other impacts to the provisions for credit losses: |  |
FFELP Loans |  | 20 |
Credit Cards |  | 1,124 |
Total |  | 1,144 |
Provisions for credit losses reported in consolidated statements of income |  | $ | (32,957) |
(3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
Year Ended December 31, 2020 (dollars in thousands) |  | FFELP Loans |  | Private Education Loans |  | Personal Loans |  | Credit Cards |  | Total
Allowance for Credit Losses |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 1,633 |  |  | $ | 374,300 |  |  | $ | 65,877 |  |  | $ | 102 |  |  | $ | 441,912 |
Day 1 adjustment for the adoption of CECL |  | 2,852 |  |  | 1,060,830 |  |  | 79,183 |  |  | 188 |  |  | 1,143,053 |
Balance at January 1, 2020 |  | 4,485 |  |  | 1,435,130 |  |  | 145,060 |  |  | 290 |  |  | 1,584,965 |
Transfer from unfunded commitment liability(1) |  | — |  |  | 320,808 |  |  | — |  |  | — |  |  | 320,808 |
Provisions: |  |  |  |  |  |  |  |  |  |
Provision for current period |  | 412 |  |  | 148,673 |  |  | 40,485 |  |  | 1,328 |  |  | 190,898 |
Loan sale reduction to provision |  | — |  |  | (161,793) |  |  | (42,916) |  |  | — |  |  | (204,709) |
Loans transferred to held-for-sale |  | — |  |  | (205,669) |  |  | — |  |  | — |  |  | (205,669) |
Total provisions(2) |  | 412 |  |  | (218,789) |  |  | (2,431) |  |  | 1,328 |  |  | (219,480) |
Net charge-offs: |  |  |  |  |  |  |  |  |  |
Charge-offs |  | (519) |  |  | (205,326) |  |  | (39,079) |  |  | (119) |  |  | (245,043) |
Recoveries |  | — |  |  | 24,021 |  |  | 4,984 |  |  | 2 |  |  | 29,007 |
Net charge-offs |  | (519) |  |  | (181,305) |  |  | (34,095) |  |  | (117) |  |  | (216,036) |
Loan sales |  | — |  |  | — |  |  | (108,534) |  |  | — |  |  | (108,534) |
Ending Balance |  | $ | 4,378 |  |  | $ | 1,355,844 |  |  | $ | — |  |  | $ | 1,501 |  |  | $ | 1,361,723 |
Allowance: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 104,265 |  |  | $ | — |  |  | $ | — |  |  | $ | 104,265 |
Ending balance: collectively evaluated for impairment |  | $ | 4,378 |  |  | $ | 1,251,579 |  |  | $ | — |  |  | $ | 1,501 |  |  | $ | 1,257,458 |
Loans: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 1,274,590 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,274,590 |
Ending balance: collectively evaluated for impairment |  | $ | 737,593 |  |  | $ | 18,454,747 |  |  | $ | — |  |  | $ | 12,238 |  |  | $ | 19,204,578 |
Net charge-offs as a percentage of average loans in repayment(3) |  | 0.09 | % |  | 1.17 | % |  | — | % |  | 1.26 | % |  |
Allowance as a percentage of the ending total loan balance |  | 0.59 | % |  | 6.87 | % |  | — | % |  | 12.27 | % |  |
Allowance as a percentage of the ending loans in repayment(3) |  | 0.76 | % |  | 9.48 | % |  | — | % |  | 12.27 | % |  |
Allowance coverage of net charge-offs |  | 8.44 |  |  | 7.48 |  |  | — |  |  | 12.83 |  |  |
Ending total loans, gross |  | $ | 737,593 |  |  | $ | 19,729,337 |  |  | $ | — |  |  | $ | 12,238 |  |  |
Average loans in repayment(3) |  | $ | 549,584 |  |  | $ | 15,518,851 |  |  | $ | — |  |  | $ | 9,286 |  |  |
Ending loans in repayment(3) |  | $ | 573,361 |  |  | $ | 14,304,821 |  |  | $ | — |  |  | $ | 12,238 |  |  |
(1) See Note 8, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.
Consolidated Statements of Income Provisions for Credit Losses Reconciliation
Year Ended December 31, 2020 (dollars in thousands) |  |
Private Education Loan provisions for credit losses: |  |
Provisions for loan losses |  | $ | (218,789) |
Provisions for unfunded loan commitments |  | 312,613 |
Total Private Education Loan provisions for credit losses |  | 93,824 |
Other impacts to the provisions for credit losses: |  |
Personal Loans |  | (2,431) |
FFELP Loans |  | 412 |
Credit Cards |  | 1,328 |
Total |  | (691) |
Provisions for credit losses reported in consolidated statements of income |  | $ | 93,133 |
(3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
Year Ended December 31, 2019 (dollars in thousands) |  | FFELP Loans |  | Private Education Loans |  | Personal Loans |  | Credit Cards |  | Total
Allowance for Credit Losses |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 977 |  |  | $ | 277,943 |  |  | $ | 62,201 |  |  | $ | — |  |  | $ | 341,121 |
Total provision |  | 1,478 |  |  | 279,570 |  |  | 72,783 |  |  | 103 |  |  | 353,934 |
Net charge-offs: |  |  |  |  |  |  |  |  |  |
Charge-offs |  | (822) |  |  | (208,978) |  |  | (74,313) |  |  | (1) |  |  | (284,114) |
Recoveries |  | — |  |  | 25,765 |  |  | 5,206 |  |  | — |  |  | 30,971 |
Net charge-offs |  | (822) |  |  | (183,213) |  |  | (69,107) |  |  | (1) |  |  | (253,143) |
Ending Balance |  | $ | 1,633 |  |  | $ | 374,300 |  |  | $ | 65,877 |  |  | $ | 102 |  |  | $ | 441,912 |
Allowance: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 186,697 |  |  | $ | — |  |  | $ | — |  |  | $ | 186,697 |
Ending balance: collectively evaluated for impairment |  | $ | 1,633 |  |  | $ | 187,603 |  |  | $ | 65,877 |  |  | $ | 102 |  |  | $ | 255,215 |
Loans: |  |  |  |  |  |  |  |  |  |
Ending balance: individually evaluated for impairment |  | $ | — |  |  | $ | 1,581,966 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,581,966 |
Ending balance: collectively evaluated for impairment |  | $ | 783,306 |  |  | $ | 21,607,625 |  |  | $ | 1,049,007 |  |  | $ | 3,884 |  |  | $ | 23,443,822 |
Net charge-offs as a percentage of average loans in repayment(1) |  | 0.13 | % |  | 1.17 | % |  | 6.07 | % |  | 0.13 | % |  |
Allowance as a percentage of the ending total loan balance |  | 0.21 | % |  | 1.61 | % |  | 6.28 | % |  | 2.63 | % |  |
Allowance as a percentage of the ending loans in repayment(1) |  | 0.26 | % |  | 2.23 | % |  | 6.28 | % |  | 2.63 | % |  |
Allowance coverage of net charge-offs |  | 1.99 |  |  | 2.04 |  |  | 0.95 |  |  | 102.00 |  |  |
Ending total loans, gross |  | $ | 783,306 |  |  | $ | 23,189,591 |  |  | $ | 1,049,007 |  |  | $ | 3,884 |  |  |
Average loans in repayment(1) |  | $ | 631,029 |  |  | $ | 15,605,927 |  |  | $ | 1,138,887 |  |  | $ | 786 |  |  |
Ending loans in repayment(1) |  | $ | 617,646 |  |  | $ | 16,787,670 |  |  | $ | 1,049,007 |  |  | $ | 3,884 |  |  |
(1)Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.
Years ended December 31, (dollars in thousands) | 2021 |  | 2020 |  | 2019
Allowance |  | Unfunded Commitments |  | Allowance |  | Unfunded Commitments |  | Allowance |  | Unfunded Commitments
Beginning Balance | $ | 110,044 |  |  | $ | 1,673,018 |  |  | $ | 2,481 |  |  | $ | 1,910,603 |  |  | $ | 2,165 |  |  | $ | 2,010,744 |
Day 1 adjustment for the adoption of CECL | — |  |  | — |  |  | 115,758 |  |  | — |  |  | — |  |  | — |
Balance at January 1 | 110,044 |  |  | 1,673,018 |  |  | 118,239 |  |  | 1,910,603 |  |  | 2,165 |  |  | 2,010,744 |
Provision/New commitments - net(1) | 232,822 |  |  | 5,512,841 |  |  | 311,659 |  |  | 5,070,175 |  |  | 5,937 |  |  | 5,513,790 |
Other provision items | 31,502 |  |  | — |  |  | 954 |  |  | — |  |  | 596 |  |  | — |
Transfer - funded loans(2) | (301,655) |  |  | (5,408,883) |  |  | (320,808) |  |  | (5,307,760) |  |  | (6,217) |  |  | (5,613,931) |
Ending Balance | $ | 72,713 |  |  | $ | 1,776,976 |  |  | $ | 110,044 |  |  | $ | 1,673,018 |  |  | $ | 2,481 |  |  | $ | 1,910,603 |
(1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.

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