Allowance for Credit Losses and Reserve for Unfunded Lending Commitments (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and 2021. Our allowance for credit losses was substantially flat at $11.3 billion as of March 31, 2022 compared to $11.4 billion as of December 31, 2021.

Table 4.1: Allowance for Credit Losses and Reserve for Unfunded Lending Commitments Activity

	Three Months Ended March 31, 2022
(Dollars in millions)	Credit Card		Consumer Banking		Commercial Banking		Total
Allowance for credit losses:
Balance as of December 31, 2021	$	8,345	$	1,918	$	1,167	$	11,430
Charge-offs	(955)		(349)		(17)		(1,321)
Recoveries(1)	348		203		3		554
Net charge-offs	(607)		(146)		(14)		(767)
Provision (benefit) for credit losses	545		130		(27)		648
Allowance build (release) for credit losses	(62)		(16)		(41)		(119)
Other changes(2)	(3)		0		0		(3)
Balance as of March 31, 2022	8,280		1,902		1,126		11,308
Reserve for unfunded lending commitments:
Balance as of December 31, 2021	0		0		165		165
Provision for losses on unfunded lending commitments	0		0		35		35
Balance as of March 31, 2022	0		0		200		200
Combined allowance and reserve as of March 31, 2022	$	8,280	$	1,902	$	1,326	$	11,508

	Three Months Ended March 31, 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	(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, 2021	10,072		2,498		1,447		14,017
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		(8)		(8)
Balance as of March 31, 2021	0		0		187		187
Combined allowance and reserve as of March 31, 2021	$	10,072	$	2,498	$	1,634	$	14,204

__________

(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.

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, 2022 and 2021.

Table 4.2: Summary of Credit Card Partnership Loss Sharing Arrangements Impacts

	Three Months Ended March 31,
(Dollars in millions)	2022		2021
Estimated reimbursements from partners, beginning of period	$	1,450	$	2,159
Amounts due from partners which reduced net charge-offs	(107)		(141)
Amounts expected to become due from (to) partners which reduced (increased) provision for credit losses	23		(13)
Estimated reimbursements from partners, end of period	$	1,366	$	2,005