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Investment Securities
 9 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
Investment Securities [Text Block]
Investment Securities
Our portfolio of securities includes bonds, equity securities, asset- and mortgage-backed securities, and other investments. The cost, fair value, and gross unrealized gains and losses on investment securities were as follows.
 
 
September 30, 2016
 
December 31, 2015


Amortized cost

Gross unrealized

Fair value

Amortized cost

Gross unrealized

Fair value
($ in millions)

gains

losses

gains

losses

Available-for-sale securities
















Debt securities
















U.S. Treasury and federal agencies

$
316


$
5


$
—


$
321


$
1,760


$
—


$
(19
)

$
1,741

U.S. States and political subdivisions

740


26


(3
)

763


693


24


(1
)

716

Foreign government

170


10


—


180


169


8


—


177

Mortgage-backed residential (a)

11,992


180


(29
)

12,143


10,459


52


(145
)

10,366

Mortgage-backed commercial

526


1


(3
)

524


486


—


(5
)

481

Asset-backed

1,563


8


(1
)

1,570


1,762


1


(8
)

1,755

Corporate debt

1,597


36


(3
)

1,630


1,213


8


(17
)

1,204

Total debt securities (b) (c)

16,904


266


(39
)

17,131


16,542


93


(195
)

16,440

Equity securities

631


2


(63
)

570


808


3


(94
)

717

Total available-for-sale securities 

$
17,535


$
268


$
(102
)

$
17,701


$
17,350


$
96


$
(289
)

$
17,157

Total held-to-maturity securities (d)

$
649


$
10


$
(1
)

$
658


$
—


$
—


$
—


$
—

(a)
Residential mortgage-backed securities include agency-backed bonds totaling $9,772 million and $7,544 million at September 30, 2016, and December 31, 2015, respectively.
(b)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $15 million and $14 million at September 30, 2016, and December 31, 2015.
(c)
Investment securities with a fair value of $635 million and $2,506 million at September 30, 2016, and December 31, 2015, were pledged to secure advances from the FHLB, short-term borrowings or repurchase agreements and for other purposes as required by contractual obligation or law. Under these agreements, Ally has granted the counterparty the right to sell or pledge $635 million and $745 million of the underlying investment securities at September 30, 2016, and December 31, 2015, respectively.
(d)
Held-to-maturity securities are recorded at amortized cost and consist of agency-backed residential mortgage-backed debt securities for liquidity purposes.
The maturity distribution of investment securities outstanding is summarized in the following tables. Call or prepayment options may cause actual maturities to differ from contractual maturities.


Total

Due in one year or less

Due after one year through five years

Due after five years through ten years

Due after ten years
($ in millions)

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield
September 30, 2016




















Fair value of available-for-sale debt securities (a) 




















U.S. Treasury and federal agencies

$
321


1.7
%

$
2


4.3
%

$
10


1.7
%

$
309


1.7
%

$
—


—
%
U.S. States and political subdivisions

763


3.1


115


2.4


24


2.4


143


3.0


481


3.4

Foreign government

180


2.6


—


—


73


2.9


107


2.5


—


—

Mortgage-backed residential

12,143


2.9


—


—


—


—


34


2.5


12,109


2.9

Mortgage-backed commercial

524


2.4


—


—


—


—


3


2.8


521


2.4

Asset-backed

1,570


2.7


—


—


1,059


2.6


300


3.3


211


2.5

Corporate debt

1,630


2.9


50


2.3


949


2.6


591


3.2


40


4.7

Total available-for-sale debt securities

$
17,131


2.9


$
167


2.4


$
2,115


2.6


$
1,487


2.8


$
13,362


2.9

Amortized cost of available-for-sale debt securities

$
16,904




$
168




$
2,093




$
1,449




$
13,194



Amortized cost of held-to-maturity securities

$
649


2.9
%

$
—


—
%

$
—


—
%

$
—


—
%

$
649


2.9
%
December 31, 2015




















Fair value of available-for-sale debt securities (a) 




















U.S. Treasury and federal agencies

$
1,741


1.8
%

$
6


5.1
%

$
510


1.2
%

$
1,225


2.1
%

$
—


—
%
U.S. States and political subdivisions

716


3.2


86


1.3


37


2.2


141


2.8


452


3.7

Foreign government

177


2.6


9


1.9


77


2.8


91


2.6


—


—

Mortgage-backed residential

10,366


2.9


—


—


33


2.1


36


2.5


10,297


2.9

Mortgage-backed commercial

481


2.0


—


—


—


—


3


2.7


478


2.0

Asset-backed

1,755


2.3


6


1.4


1,027


2.1


518


2.6


204


2.2

Corporate debt

1,204


2.9


50


3.0


713


2.5


410


3.4


31


5.4

Total available-for-sale debt securities

$
16,440


2.7


$
157


2.0


$
2,397


2.1


$
2,424


2.5


$
11,462


2.9

Amortized cost of available-for-sale debt securities

$
16,542





$
156





$
2,404





$
2,436





$
11,546




(a)
Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
The balances of cash equivalents were $0.8 billion and $1.0 billion at September 30, 2016, and December 31, 2015, respectively, and were composed primarily of money market accounts and short-term securities, including U.S. Treasury bills.
The following table presents interest and dividends on investment securities.
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
2016
 
2015
 
2016
 
2015
Taxable interest
$
93


$
90

 
$
276

 
$
252

Taxable dividends
4


7

 
13

 
18

Interest and dividends exempt from U.S. federal income tax
4


5

 
13

 
13

Interest and dividends on investment securities
$
101


$
102

 
$
302

 
$
283


The following table presents gross gains and losses realized upon the sales of available-for-sale securities and other-than-temporary impairment.
 
Three months ended September 30,
 
Nine months ended September 30,
($ in millions)
2016
 
2015
 
2016
 
2015
Gross realized gains
$
52


$
28

 
$
146

 
$
134

Gross realized losses (a)
—


(11
)
 
(1
)
 
(14
)
Other-than-temporary impairment
—


(11
)
 
—

 
(14
)
Other gain on investments, net
$
52

 
$
6

 
$
145

 
$
106

(a)
Certain available-for-sale securities were sold at a loss in 2016 and 2015 as a result of changing conditions within these respective periods (e.g., a downgrade in the rating of a debt security). Any such sales were made in accordance with our risk management policies and practices.
The table below summarizes available-for-sale securities in an unrealized loss position in accumulated other comprehensive income. Based on the assessment of whether such losses were deemed to be other-than-temporary, we believe that the unrealized losses are not indicative of an other-than-temporary impairment of these securities. As of September 30, 2016, we did not have the intent to sell the debt securities with an unrealized loss position in accumulated other comprehensive income, it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis, and we expect to recover the entire amortized cost basis of the securities. As of September 30, 2016, we had the ability and intent to hold equity securities with an unrealized loss position in accumulated other comprehensive income, and it is not more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. As a result, we believe that the securities with an unrealized loss position in accumulated other comprehensive income are not considered to be other-than-temporarily impaired at September 30, 2016. Refer to Note 1 for additional information related to investment securities and our methodology for evaluating potential other-than-temporary impairments.
 
 
September 30, 2016
 
December 31, 2015


Less than 12 months

12 months or longer

Less than 12 months

12 months or longer
($ in millions)

Fair value

Unrealized loss

Fair value

Unrealized loss

Fair value

Unrealized loss

Fair value

Unrealized loss
Available-for-sale securities
















Debt securities
















U.S. Treasury and federal agencies

$
—


$
—


$
—


$
—


$
1,553


$
(17
)

$
173


$
(2
)
U.S. States and political subdivisions

254


(2
)

11


(1
)

179


(1
)

—


—

Foreign government

—


—


—


—


2


—


—


—

Mortgage-backed

948


(4
)

1,786


(28
)

4,096


(43
)

2,453


(107
)
Asset-backed

406


(1
)

140


—


1,402


(8
)

64


—

Corporate debt

134


(1
)

50


(2
)

745


(16
)

12


(1
)
Total temporarily impaired debt securities

1,742


(8
)

1,987


(31
)

7,977


(85
)

2,702


(110
)
Temporarily impaired equity securities

148


(12
)

329


(51
)

534


(54
)

96


(40
)
Total temporarily impaired available-for-sale securities

$
1,890


$
(20
)

$
2,316


$
(82
)

$
8,511


$
(139
)

$
2,798


$
(150
)