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Finance Receivables And Loans, Net
 12 Months Ended
Dec. 31, 2015
Loans and Leases Receivable, Net Reported Amount, by Category Alternative [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Finance Receivables and Loans, Net
The composition of finance receivables and loans, net, reported at gross carrying value was as follows.
December 31, ($ in millions)
 
2015
 
2014
Consumer automotive (a)
 
$
64,292

 
$
56,570

Consumer mortgage (b) (c)
 
9,773

 
7,474

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
31,469

 
30,871

Other
 
2,640

 
1,882

Commercial real estate — Automotive
 
3,426

 
3,151

Total commercial
 
37,535

 
35,904

Total finance receivables and loans (d)
 
$
111,600

 
$
99,948

(a)
Includes $66 million and $35 million of fair value adjustment for loans in hedge accounting relationships at December 31, 2015, and December 31, 2014, respectively. Refer to Note 22 for additional information.
(b)
Includes loans originated as interest-only mortgage loans of $985 million and $1.2 billion at December 31, 2015, and December 31, 2014, respectively, 34% of which are expected to start principal amortization in 2016, 21% in 2017, 2% in 2018, 2% in 2019, and 3% thereafter.
(c)
Includes consumer mortgages at a fair value of $1 million at December 31, 2014, as a result of fair value option election.
(d)
Totals include a net increase of $110 million at December 31, 2015, compared to a net reduction of $266 million at December 31, 2014, for unearned income, unamortized premiums and discounts, and deferred fees and costs.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans.
($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2015
 
$
685

 
$
152

 
$
140

 
$
977

Charge-offs
 
(840
)
 
(48
)
 
(4
)
 
(892
)
Recoveries
 
262

 
17

 
4

 
283

Net charge-offs
 
(578
)
 
(31
)
 
—

 
(609
)
Provision for loan losses
 
739

 
1

 
(33
)
 
707

Other (a)
 
(12
)
 
(8
)
 
(1
)
 
(21
)
Allowance at December 31, 2015
 
$
834

 
$
114

 
$
106

 
$
1,054

Allowance for loan losses at December 31, 2015
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
22

 
$
44

 
$
20

 
$
86

Collectively evaluated for impairment
 
812

 
70

 
86

 
968

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

 
—

Finance receivables and loans at gross carrying value
 
 
 
 
 
 
 
 
Ending balance
 
64,292

 
9,773

 
37,535

 
111,600

Individually evaluated for impairment
 
315

 
266

 
77

 
658

Collectively evaluated for impairment
 
63,977

 
9,507

 
37,458

 
110,942

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

 
—


(a)
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2014
 
$
673

 
$
389

 
$
146

 
$
1,208

Charge-offs
 
(720
)
 
(51
)
 
(5
)
 
(776
)
Recoveries
 
219

 
8

 
12

 
239

Net charge-offs
 
(501
)
 
(43
)
 
7

 
(537
)
Provision for loan losses
 
540

 
(69
)
 
(14
)
 
457

Other (a)
 
(27
)
 
(125
)
 
1

 
(151
)
Allowance at December 31, 2014
 
$
685

 
$
152

 
$
140

 
$
977

Allowance for loan losses
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
23

 
$
62

 
$
21

 
$
106

Collectively evaluated for impairment
 
662

 
90

 
119

 
871

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

 
—

Finance receivables and loans at gross carrying value
 
 
 
 
 
 
 
 
Ending balance
 
56,570

 
7,473

 
35,904

 
99,947

Individually evaluated for impairment
 
282

 
336

 
82

 
700

Collectively evaluated for impairment
 
56,287

 
7,137

 
35,822

 
99,246

Loans acquired with deteriorated credit quality
 
1

 
—

 
—

 
1


(a)
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
The following table presents information about significant sales of finance receivables and loans recorded at gross carrying value and transfers of finance receivables and loans from held-for-investment to held-for-sale.
December 31, ($ in millions)
 
2015
 
2014
Consumer automotive
 
$
1,237

 
$
4,106

Consumer mortgage
 
78

 
489

Commercial
 
2

 
36

Total sales and transfers
 
$
1,317

 
$
4,631


The following table presents information about significant purchases of finance receivables and loans.
December 31, ($ in millions)
 
2015
 
2014
Consumer automotive
 
$
272

 
$
—

Consumer mortgage
 
4,125

 
857

Total purchases
 
$
4,397

 
$
857


The following table presents an analysis of our past due finance receivables and loans, net, recorded at gross carrying value.
December 31, ($ in millions)
 
30-59 days past due
 
60-89 days past due
 
90 days or more past due
 
Total past due
 
Current
 
Total finance receivables and loans
2015
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,618

 
$
369

 
$
222

 
$
2,209

 
$
62,083

 
$
64,292

Consumer mortgage
 
97

 
25

 
83

 
205

 
9,568

 
9,773

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
—

 
—

 
—

 
—

 
31,469

 
31,469

Other
 
—

 
—

 
—

 
—

 
2,640

 
2,640

Commercial real estate — Automotive
 
—

 
—

 
—

 
—

 
3,426

 
3,426

Total commercial
 
—

 
—

 
—

 
—

 
37,535

 
37,535

Total consumer and commercial
 
$
1,715

 
$
394

 
$
305

 
$
2,414

 
$
109,186

 
$
111,600

2014
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,340

 
$
293

 
$
164

 
$
1,797

 
$
54,773

 
$
56,570

Consumer mortgage
 
76

 
25

 
124

 
225

 
7,248

 
7,473

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
—

 
9

 
—

 
9

 
30,862

 
30,871

Other
 
—

 
—

 
—

 
—

 
1,882

 
1,882

Commercial real estate — Automotive
 
—

 
—

 
—

 
—

 
3,151

 
3,151

Total commercial
 
—

 
9

 
—

 
9

 
35,895

 
35,904

Total consumer and commercial
 
$
1,416

 
$
327

 
$
288

 
$
2,031

 
$
97,916

 
$
99,947


The following table presents the gross carrying value of our finance receivables and loans on nonaccrual status.
December 31, ($ in millions)
 
2015
 
2014
Consumer automotive
 
$
475

 
$
386

Consumer mortgage
 
128

 
177

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
25

 
32

Other
 
44

 
46

Commercial real estate — Automotive
 
8

 
4

Total commercial
 
77

 
82

Total consumer and commercial finance receivables and loans
 
$
680

 
$
645


Management performs a quarterly analysis of the consumer automotive, consumer mortgage, and commercial portfolios using a range of credit quality indicators to assess the adequacy of the allowance for loan losses based on historical and current trends. The following tables present the population of loans by quality indicators for our consumer automotive, consumer mortgage, and commercial portfolios.
The following table presents performing and nonperforming credit quality indicators in accordance with our internal accounting policies for our consumer finance receivables and loans recorded at gross carrying value. Nonperforming loans include finance receivables and loans on nonaccrual status when the principal or interest has been delinquent for 90 days or when full collection is not expected. Refer to Note 1 for additional information.
 
 
2015
 
2014
December 31, ($ in millions)
 
Performing
 
Nonperforming
 
Total
 
Performing
 
Nonperforming
 
Total
Consumer automotive
 
$
63,817

 
$
475

 
$
64,292

 
$
56,184

 
$
386

 
$
56,570

Consumer mortgage
 
9,645

 
128

 
9,773

 
7,296

 
177

 
7,473


The following table presents pass and criticized credit quality indicators based on regulatory definitions for our commercial finance receivables and loans recorded at gross carrying value.
 
 
2015
 
2014
December 31, ($ in millions)
 
Pass
 
Criticized (a)
 
Total
 
Pass
 
Criticized (a)
 
Total
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
$
29,613

 
$
1,856

 
$
31,469

 
$
29,150

 
$
1,721

 
$
30,871

Other
 
2,122

 
518

 
2,640

 
1,509

 
373

 
1,882

Commercial real estate — Automotive
 
3,265

 
161

 
3,426

 
3,015

 
136

 
3,151

Total commercial
 
$
35,000

 
$
2,535

 
$
37,535


$
33,674

 
$
2,230

 
$
35,904

(a)
Includes loans classified as special mention, substandard, or doubtful. These classifications are based on regulatory definitions and generally represent loans within our portfolio that have a higher default risk or have already defaulted.
Impaired Loans and Troubled Debt Restructurings
Impaired Loans
Loans are considered impaired when we determine it is probable that we will be unable to collect all amounts due according to the terms of the loan agreement. For more information on our impaired finance receivables and loans, refer to Note 1.
The following table presents information about our impaired finance receivables and loans recorded at gross carrying value.
December 31, ($ in millions)
 
Unpaid principal balance
 
Gross carrying value
 
Impaired with no allowance
 
Impaired with an allowance
 
Allowance for impaired loans
2015
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
315

 
$
315

 
$
—

 
$
315

 
$
22

Consumer mortgage
 
269

 
266

 
64

 
202

 
44

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
25

 
25

 
4

 
21

 
3

Other
 
44

 
44

 
—

 
44

 
15

Commercial real estate — Automotive
 
8

 
8

 
1

 
7

 
2

Total commercial
 
77

 
77

 
5

 
72

 
20

Total consumer and commercial finance receivables and loans
 
$
661

 
$
658

 
$
69

 
$
589

 
$
86

2014
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
282

 
$
282

 
$
—

 
$
282

 
$
23

Consumer mortgage
 
340

 
336

 
86

 
250

 
62

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
32

 
32

 
4

 
28

 
5

Other
 
46

 
46

 
—

 
46

 
15

Commercial real estate — Automotive
 
4

 
4

 
1

 
3

 
1

Total commercial
 
82

 
82

 
5

 
77

 
21

Total consumer and commercial finance receivables and loans
 
$
704

 
$
700

 
$
91

 
$
609

 
$
106


The following table presents average balance and interest income for our impaired finance receivables and loans.
 
 
2015
 
2014
 
2013
Year ended December 31, ($ in millions)
 
Average balance
 
Interest income
 
Average balance
 
Interest income
 
Average balance
 
Interest income
Consumer automotive
 
$
295

 
$
16

 
$
317

 
$
20

 
$
278

 
$
18

Consumer mortgage
 
280

 
9

 
873

 
12

 
908

 
29

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
33

 
1

 
61

 
2

 
152

 
6

Other
 
41

 
3

 
59

 
3

 
72

 
2

Commercial real estate — Automotive
 
5

 
—

 
6

 
—

 
29

 
1

Total commercial
 
79

 
4

 
126

 
5

 
253

 
9

Total consumer and commercial finance receivables and loans
 
$
654

 
$
29

 
$
1,316

 
$
37

 
$
1,439

 
$
56


Troubled Debt Restructurings
TDRs are loan modifications where concessions were granted to borrowers experiencing financial difficulties. Numerous initiatives are in place to provide support to our mortgage customers in financial distress, including principal forgiveness, maturity extensions, delinquent interest capitalization, and changes to contractual interest rates. Additionally for automotive loans, we may offer several types of assistance to aid our customers, including extension of the loan maturity date and rewriting the loan terms. Total TDRs recorded at gross carrying value were $625 million at December 31, 2015, reflecting a decrease of $56 million from December 31, 2014. Refer to Note 1 for additional information.
The following table presents information related to finance receivables and loans recorded at gross carrying value modified in connection with a TDR during the period.
 
 
2015
 
2014
Year ended December 31, ($ in millions)
 
Number of loans
 
Pre-modification gross carrying value
 
Post-modification gross carrying value
 
Number of loans
 
Pre-modification gross carrying value
 
Post-modification gross carrying value
Consumer automotive
 
17,222

 
$
278

 
$
237

 
17,511

 
$
211

 
$
187

Consumer mortgage
 
204

 
46

 
44

 
396

 
80

 
74

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
—

 
—

 
—

 
3

 
23

 
23

Other
 
1

 
21

 
21

 
3

 
48

 
48

Commercial real estate — Automotive
 
1

 
3

 
3

 
—

 
—

 
—

Total commercial
 
2

 
24

 
24

 
6

 
71

 
71

Total consumer and commercial finance receivables and loans
 
17,428

 
$
348

 
$
305

 
17,913

 
$
362

 
$
332


The following table presents information about finance receivables and loans recorded at gross carrying value that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy (Refer to Note 1 for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
 
 
2015
 
2014
Year ended December 31, ($ in millions)
 
Number of loans
 
Gross carrying value
 
Charge-off amount
 
Number of loans
 
Gross carrying value
 
Charge-off amount
Consumer automotive
 
6,836

 
$
82

 
$
47

 
7,117

 
$
90

 
$
47

Consumer mortgage
 
10

 
1

 
—

 
27

 
2

 
1

Total consumer finance receivables and loans
 
6,846

 
$
83

 
$
47

 
7,144

 
$
92

 
$
48


At December 31, 2015, and December 31, 2014, commercial commitments to lend additional funds to borrowers owing receivables whose terms had been modified in a TDR were $2 million and $4 million, respectively.
Concentration Risk
Consumer
We monitor our consumer loan portfolio for concentration risk across the geographies in which we lend. The highest concentrations of loans are in Texas and California, which represent an aggregate of 23.5% of our total outstanding consumer finance receivables and loans at December 31, 2015.
Concentrations in our mortgage portfolio are closely monitored given the volatility of the housing markets, with special attention given to states with greater declines in real estate values.
The following table shows the percentage of total consumer finance receivables and loans recorded at gross carrying value by state concentration.
 
2015 (a)
 
2014
December 31,
Automotive
 
Mortgage
 
Automotive
 
Mortgage
Texas
13.7
%
 
6.2
%
 
13.6
%
 
6.0
%
California
7.3

 
33.6

 
6.2

 
30.8

Florida
7.7

 
4.1

 
7.3

 
3.7

Pennsylvania
5.0

 
1.5

 
5.3

 
1.6

Illinois
4.4

 
4.1

 
4.4

 
4.2

Georgia
4.4

 
2.2

 
4.2

 
2.1

North Carolina
3.6

 
1.8

 
3.5

 
1.9

Ohio
3.7

 
0.6

 
3.9

 
0.6

New York
3.5

 
1.9

 
4.0

 
1.9

Michigan
3.1

 
2.4

 
3.8

 
3.1

Other United States
43.6

 
41.6

 
43.8

 
44.1

Total consumer loans
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
(a)
Presentation is in descending order as a percentage of total consumer finance receivables and loans at December 31, 2015.
Commercial Real Estate
The commercial real estate portfolio consists of loans issued primarily to automotive dealers. The following table shows the percentage of total commercial real estate finance receivables and loans reported at gross carrying value by state concentration.
December 31,
2015
 
2014
Texas
17.7
%
 
13.8
%
Florida
10.0

 
12.3

Michigan
8.9

 
9.9

California
8.7

 
9.0

North Carolina
3.8

 
3.9

Virginia
3.8

 
4.1

Georgia
3.6

 
3.7

Pennsylvania
3.4

 
3.8

New York
3.1

 
3.9

Illinois
2.9

 
2.7

Other United States
34.1

 
32.9

Total commercial real estate finance receivables and loans
100.0
%
 
100.0
%

Commercial Criticized Exposure
Finance receivables and loans classified as special mention, substandard, or doubtful are deemed as criticized. These classifications are based on regulatory definitions and generally represent finance receivables and loans within our portfolio that have a higher default risk or have already defaulted. The following table presents the percentage of total commercial criticized finance receivables and loans reported at gross carrying value by industry concentrations.
December 31,
2015
 
2014
Automotive
80.5
%
 
87.3
%
Manufacturing
7.8

 
0.9

Services
5.3

 
2.0

Other
6.4

 
9.8

Total commercial criticized finance receivables and loans
100.0
%
 
100.0
%