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Investment Securities
 3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [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.
 
 
March 31, 2017
 
December 31, 2016


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

$
2,276


$
1


$
(52
)

$
2,225


$
1,680


$
—


$
(60
)

$
1,620

U.S. States and political subdivisions

803


9


(17
)

795


794


7


(19
)

782

Foreign government

143


3


—


146


157


5


—


162

Agency mortgage-backed residential

12,054


31


(223
)

11,862


10,473


29


(212
)

10,290

Mortgage-backed residential
 
2,053

 
4

 
(61
)
 
1,996

 
2,162

 
5

 
(70
)
 
2,097

Mortgage-backed commercial

533


2


(1
)

534


537


2


(2
)

537

Asset-backed

1,046


6


(1
)

1,051


1,396


6


(2
)

1,400

Corporate debt

1,262


6


(13
)

1,255


1,452


7


(16
)

1,443

Total debt securities (a) (b)

20,170


62


(368
)

19,864


18,651


61


(381
)

18,331

Equity securities

481


9


(46
)

444


642


7


(54
)

595

Total available-for-sale securities

$
20,651


$
71


$
(414
)

$
20,308


$
19,293


$
68


$
(435
)

$
18,926

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential (c)
 
$
1,052

 
$
2

 
$
(43
)
 
$
1,011

 
$
839

 
$
—

 
$
(50
)
 
$
789

Asset-backed retained notes
 
52

 
—

 
—

 
52

 
—

 
—

 
—

 
—

Total held-to-maturity securities (d)

$
1,104


$
2


$
(43
)

$
1,063


$
839

 
$
—

 
$
(50
)
 
$
789

(a)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $12 million and $14 million at March 31, 2017, and December 31, 2016, respectively.
(b)
Investment securities with a fair value of $3,235 million and $4,881 million at March 31, 2017, and December 31, 2016, respectively, were pledged to secure advances from the Federal Home Loan Bank (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 $1,257 million and $737 million of the underlying investment securities at March 31, 2017, and December 31, 2016, respectively.
(c)
Agency-backed residential mortgage-backed debt securities are held for liquidity purposes.
(d)
Held-to-maturity securities are recorded at amortized cost. Held-to-maturity securities with a fair value of $0 million and $87 million at March 31, 2017, and December 31, 2016, respectively, 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
March 31, 2017




















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




















U.S. Treasury

$
2,225


1.8
%

$
—


—
%

$
262


1.8
%

$
1,963


1.8
%

$
—


—
%
U.S. States and political subdivisions

795


3.1


66


2.4


34


2.5


175


2.9


520


3.3

Foreign government

146


2.5


—


—


66


2.7


80


2.4


—


—

Agency mortgage-backed residential
 
11,862

 
3.0

 
—

 
—

 
—

 
—

 
3

 
2.9

 
11,859

 
3.0

Mortgage-backed residential

1,996


2.9


—


—


—


—


—


—


1,996


2.9

Mortgage-backed commercial

534


2.8


—


—


—


—


3


2.8


531


2.8

Asset-backed

1,051


2.9


—


—


829


2.9


59


3.2


163


2.6

Corporate debt

1,255


2.9


99


2.1


642


2.6


468


3.2


46


4.7

Total available-for-sale debt securities

$
19,864


2.8


$
165


2.2


$
1,833


2.6


$
2,751


2.2


$
15,115


3.0

Amortized cost of available-for-sale debt securities

$
20,170




$
165




$
1,826




$
2,806




$
15,373



Amortized cost of held-to-maturity securities
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential
 
1,052

 
3.0
%
 
—

 
—
%
 
—

 
—
%
 
—

 
—
%
 
1,052

 
3.0
%
Asset-backed retained notes
 
52

 
1.5

 
10

 
0.8

 
40

 
1.6

 
2

 
2.7

 
—

 
—

Total held-to-maturity securities
 
$
1,104

 
2.9

 
$
10

 
0.8

 
$
40

 
1.6

 
$
2

 
2.7

 
$
1,052

 
3.0

December 31, 2016




















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




















U.S. Treasury

$
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
%
(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 $1.1 billion and $291 million at March 31, 2017, and December 31, 2016, 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 March 31,
($ in millions)
2017
 
2016
Taxable interest
$
119


$
94

Taxable dividends
2


4

Interest and dividends exempt from U.S. federal income tax
5


4

Interest and dividends on investment securities
$
126


$
102


Gross gains realized upon the sales of available-for-sale securities were $27 million and $54 million for the three months ended March 31, 2017, and 2016, respectively. There were no gross realized losses or other-than-temporary impairments upon the sales of available-for-sale securities for either period.
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 March 31, 2017, 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 March 31, 2017, 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 March 31, 2017. Refer to Note 1 to the Consolidated Financial Statements in our 2016 Annual Report on Form 10-K for additional information related to investment securities and our methodology for evaluating potential other-than-temporary impairments.
 
 
March 31, 2017
 
December 31, 2016


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

$
2,070


$
(52
)

$
—


$
—


$
1,612


$
(60
)

$
—


$
—

U.S. States and political subdivisions

435


(16
)

26


(1
)

524


(19
)

—


—

Foreign government

13


—


—


—


38


—


—


—

Agency mortgage-backed residential
 
8,874

 
(209
)
 
531

 
(14
)
 
8,052

 
(196
)
 
587

 
(16
)
Mortgage-backed residential

768


(16
)

816


(45
)

813


(17
)

860


(53
)
Mortgage-backed commercial
 
79

 
(1
)
 
77

 
—

 
47

 
(1
)
 
149

 
(1
)
Asset-backed

175


—


134


(1
)

375


(2
)

127


—

Corporate debt

565


(11
)

46


(2
)

744


(14
)

46


(2
)
Total temporarily impaired debt securities

12,979


(305
)

1,630


(63
)

12,205


(309
)

1,769


(72
)
Temporarily impaired equity securities

72


(6
)

162


(40
)

151


(8
)

269


(46
)
Total temporarily impaired available-for-sale securities

$
13,051


$
(311
)

$
1,792


$
(103
)

$
12,356


$
(317
)

$
2,038


$
(118
)