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Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)
 3 Months Ended
Mar. 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 three months ended March 31, 2021 and 2020. Our allowance for credit losses decreased by $1.5 billion to $14.0 billion as of March 31, 2021 from December 31, 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
Three Months Ended March 31, 2021
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2020$11,191 $2,715 $1,658 $15,564 
Charge-offs
(993)(342)(19)(1,354)
Recoveries(1)
360 251 3 614 
Net charge-offs(633)(91)(16)(740)
Provision (benefit) for credit losses(492)(126)(195)(813)
Allowance build (release) for credit losses(1,125)(217)(211)(1,553)
Other changes(2)
6 0 0 6 
Balance as of March 31, 202110,072 2,498 1,447 14,017 
Reserve for unfunded lending commitments:
Balance as of December 31, 20200 0 195 195 
Provision (benefit) for losses on unfunded lending commitments0 0 (8)(8)
Balance as of March 31, 20210 0 187 187 
Combined allowance and reserve as of March 31, 2021$10,072 $2,498 $1,634 $14,204 
Three Months Ended March 31, 2020
(Dollars in millions)Credit CardConsumer BankingCommercial BankingTotal
Allowance for credit losses:
Balance as of December 31, 2019$5,395 $1,038 $775 $7,208 
Cumulative effects from adoption of the CECL standard2,241 502 102 2,845 
Finance charge and fee reserve reclassification(3)
462 0 0 462 
Balance as of January 1, 20208,098 1,540 877 10,515 
Charge-offs
(1,849)(496)(112)(2,457)
Recoveries(1)
413 250 3 666 
Net charge-offs(1,436)(246)(109)(1,791)
Provision (benefit) for credit losses3,702 860 805 5,367 
Allowance build (release) for credit losses2,266 614 696 3,576 
Other changes(2)
(18)0 0 (18)
Balance as of March 31, 202010,346 2,154 1,573 14,073 
Reserve for unfunded lending commitments:
Balance as of December 31, 20190 5 130 135 
Cumulative effects from adoption of the CECL standard0 (5)42 37 
Balance as of January 1, 20200 0 172 172 
Provision (benefit) for losses on unfunded lending commitments0 0 51 51 
Balance as of March 31, 20200 0 223 223 
Combined allowance and reserve as of March 31, 2020
$10,346 $2,154 $1,796 $14,296 
__________
(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.
Schedule of Loss Sharing Arrangement Impact
The table below summarizes the changes in the estimated reimbursements from these partners for the three months ended March 31, 2021 and 2020.
Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts
Three Months Ended March 31,
(Dollars in millions)20212020
Estimated reimbursements from partners, beginning of period$2,159 $2,166 
Amounts due from partners which reduced net charge-offs(141)(302)
Amounts estimated to be charged (from) to partners which reduced provision for credit losses(13)789 
Estimated reimbursements from partners, end of period$2,005 $2,653