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


Amortized cost

Gross unrealized

Fair value

Amortized cost

Gross unrealized

Fair
value
December 31, ($ in millions)

gains

losses

gains

losses

Available-for-sale securities
















Debt securities
















U.S. Treasury and federal agencies

$
1,680


$
—


$
(60
)

$
1,620


$
1,760


$
—


$
(19
)

$
1,741

U.S. States and political subdivisions

794


7


(19
)

782


693


24


(1
)

716

Foreign government

157


5


—


162


169


8


—


177

Agency mortgage-backed residential

10,473


29


(212
)

10,290


7,553


46


(55
)

7,544

Mortgage-backed residential
 
2,162

 
5

 
(70
)
 
2,097

 
2,906

 
6

 
(90
)
 
2,822

Mortgage-backed commercial

537


2


(2
)

537


486


—


(5
)

481

Asset-backed

1,396


6


(2
)

1,400


1,762


1


(8
)

1,755

Corporate debt

1,452


7


(16
)

1,443


1,213


8


(17
)

1,204

Total debt securities (a) (b)

18,651


61


(381
)

18,331


16,542


93


(195
)

16,440

Equity securities

642


7


(54
)

595


808


3


(94
)

717

Total available-for-sale securities

$
19,293


$
68


$
(435
)

$
18,926


$
17,350


$
96


$
(289
)

$
17,157

Total held-to-maturity securities (c) (d)

$
839


$
—


$
(50
)

$
789


$
—


$
—


$
—


$
—

(a)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $14 million at both December 31, 2016, and December 31, 2015.
(b)
Investment securities with a fair value of $4,881 million and $2,506 million at December 31, 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 $737 million and $745 million of the underlying investment securities at December 31, 2016, and December 31, 2015, respectively.
(c)
Held-to-maturity securities are recorded at amortized cost and consist of agency-backed residential mortgage-backed debt securities for liquidity purposes.
(d)
Held-to-maturity securities with a fair value of $87 million at December 31, 2016, were pledged to secure advances from the FHLB.
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
December 31, 2016




















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




















U.S. Treasury and federal agencies

$
1,620


1.7
%

$
2


4.6
%

$
60


1.6
%

$
1,558


1.7
%

$
—


—
%
U.S. States and political subdivisions

782


3.1


64


1.7


29


2.3


172


2.8


517


3.4

Foreign government

162


2.6


—


—


58


2.8


104


2.4


—


—

Agency mortgage-backed residential
 
10,290

 
2.9

 
—

 
—

 
—

 
—

 
29

 
2.6

 
10,261

 
2.9

Mortgage-backed residential

2,097


2.9


—


—


—


—


—


—


2,097


2.9

Mortgage-backed commercial

537


2.6


—


—


—


—


3


2.8


534


2.6

Asset-backed

1,400


2.8


—


—


1,059


2.8


143


3.2


198


2.6

Corporate debt

1,443


2.8


72


2.2


840


2.6


489


3.2


42


4.7

Total available-for-sale debt securities

$
18,331


2.8


$
138


2.0


$
2,046


2.7


$
2,498


2.2


$
13,649


2.9

Amortized cost of available-for-sale debt securities

$
18,651




$
138




$
2,040




$
2,563




$
13,910



Amortized cost of held-to-maturity securities

$
839


2.9
%

$
—


—
%

$
—


—
%

$
—


—
%

$
839


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


—


—

Agency mortgage-backed residential
 
7,544

 
2.9

 
—

 
—

 
32

 
2.0

 
36

 
2.5

 
7,476

 
2.9

Mortgage-backed residential

2,822


2.9


—


—


1


4.5


—


—


2,821


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 $291 million and $1.0 billion at December 31, 2016, and December 31, 2015, respectively, and were composed primarily of money market accounts and short-term securities, including U.S. Treasury bills.
The following table presents interest and dividends on investment securities.
Year ended December 31, ($ in millions)
2016
 
2015
 
2014
Taxable interest
$
375


$
340

 
$
336

Taxable dividends
17


23

 
20

Interest and dividends exempt from U.S. federal income tax
19


18

 
11

Interest and dividends on investment securities
$
411


$
381

 
$
367


The following table presents gross gains and losses realized upon the sales of available-for-sale securities and other-than-temporary impairment.
Year ended December 31, ($ in millions)
2016
 
2015
 
2014
Gross realized gains
$
187


$
184

 
$
209

Gross realized losses (a)
(2
)

(15
)
 
(14
)
Other-than-temporary impairment
—


(14
)
 
(14
)
Other gain on investments, net
$
185

 
$
155

 
$
181

(a)
In accordance with our risk management policies and practice, certain available-for-sale securities were sold at a loss in 2016, 2015, and 2014 as a result of changing conditions within these respective periods (e.g., a downgrade in the rating of a debt security) or events outside of our control (such as issuer calls).
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 December 31, 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 December 31, 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 December 31, 2016. Refer to Note 1 to the Consolidated Financial Statements for additional information related to investment securities and our methodology for evaluating potential other-than-temporary impairments.
 
 
2016
 
2015


Less than 12 months

12 months or longer

Less than 12 months

12 months or longer
December 31, ($ 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

$
1,612


$
(60
)

$
—


$
—


$
1,553


$
(17
)

$
173


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

524


(19
)

—


—


179


(1
)

—


—

Foreign government

38


—


—


—


2


—


—


—

Agency mortgage-backed residential
 
8,052

 
(196
)
 
587

 
(16
)
 
2,524

 
(21
)
 
1,132

 
(34
)
Mortgage-backed residential

813


(17
)

860


(53
)

1,231


(19
)

1,180


(71
)
Mortgage-backed commercial
 
47

 
(1
)
 
149

 
(1
)
 
341

 
(3
)
 
141

 
(2
)
Asset-backed

375


(2
)

127


—


1,402


(8
)

64


—

Corporate debt

744


(14
)

46


(2
)

745


(16
)

12


(1
)
Total temporarily impaired debt securities

12,205


(309
)

1,769


(72
)

7,977


(85
)

2,702


(110
)
Temporarily impaired equity securities

151


(8
)

269


(46
)

534


(54
)

96


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

$
12,356


$
(317
)

$
2,038


$
(118
)

$
8,511


$
(139
)

$
2,798


$
(150
)