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Finance Receivables and Loans, Net
 12 Months Ended
Dec. 31, 2017
Loans and Leases Receivable, Net Amount [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Finance Receivables and Loans, Net
The composition of finance receivables and loans reported at gross carrying value was as follows.
December 31, ($ in millions)
 
2017
 
2016
Consumer automotive (a)
 
$
68,071

 
$
65,793

Consumer mortgage
 
 
 
 
Mortgage Finance (b)
 
11,657

 
8,294

Mortgage — Legacy (c)
 
2,093

 
2,756

Total consumer mortgage
 
13,750

 
11,050

Total consumer
 
81,821

 
76,843

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
33,025

 
35,041

Other
 
3,887

 
3,248

Commercial real estate
 
4,160

 
3,812

Total commercial
 
41,072

 
42,101

Total finance receivables and loans (d)
 
$
122,893

 
$
118,944

(a)
Includes $18 million and $43 million of fair value adjustment for loans in hedge accounting relationships at December 31, 2017, and December 31, 2016, respectively. Refer to Note 22 for additional information.
(b)
Includes loans originated as interest-only mortgage loans of $20 million and $30 million at December 31, 2017, and December 31, 2016, respectively, 35% of which are expected to start principal amortization in 2019, and 45% in 2020. The remainder of these loans have already exited the interest-only period.
(c)
Includes loans originated as interest-only mortgage loans of $496 million and $714 million at December 31, 2017, and December 31, 2016, respectively, 3% of which are expected to start principal amortization in 2018. The remainder of these loans have already exited the interest-only period.
(d)
Totals include net increases of $551 million and $359 million at December 31, 2017, and December 31, 2016, respectively, for unearned income, unamortized premiums and discounts, and deferred fees and costs.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans.
($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2017

$
932


$
91


$
121


$
1,144

Charge-offs (a)

(1,344
)

(30
)

(18
)

(1,392
)
Recoveries

358


24


—


382

Net charge-offs

(986
)

(6
)

(18
)

(1,010
)
Provision for loan losses

1,127


(7
)

28


1,148

Other (b)

(7
)

1


—


(6
)
Allowance at December 31, 2017

$
1,066

 
$
79

 
$
131


$
1,276

Allowance for loan losses at December 31, 2017








Individually evaluated for impairment

$
36


$
27


$
14


$
77

Collectively evaluated for impairment

1,030


52


117


1,199

Finance receivables and loans at gross carrying value

 
 
 
 
 
 
 
Ending balance

$
68,071


$
13,750


$
41,072


$
122,893

Individually evaluated for impairment

430


231


72


733

Collectively evaluated for impairment

67,641


13,519


41,000


122,160

(a)
Represents the amount of the gross carrying value directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.
(b)
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, 2016
 
$
834

 
$
114

 
$
106

 
$
1,054

Charge-offs (a)
 
(1,102
)
 
(39
)
 
(1
)
 
(1,142
)
Recoveries
 
307

 
32

 
2

 
341

Net charge-offs
 
(795
)
 
(7
)
 
1

 
(801
)
Provision for loan losses
 
919

 
(16
)
 
14

 
917

Other (b)
 
(26
)
 
—

 
—

 
(26
)
Allowance at December 31, 2016
 
$
932

 
$
91

 
$
121

 
$
1,144

Allowance for loan losses at December 31, 2016








Individually evaluated for impairment

$
28


$
34


$
23


$
85

Collectively evaluated for impairment

904


57


98


1,059

Finance receivables and loans at gross carrying value

 
 
 
 
 



Ending balance

$
65,793


$
11,050


$
42,101


$
118,944

Individually evaluated for impairment

370


247


122


739

Collectively evaluated for impairment

65,423


10,803


41,979


118,205

(a)
Represents the amount of the gross carrying value directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.
(b)
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 and transfers of finance receivables and loans from held-for-investment to held-for-sale.
December 31, ($ in millions)
 
2017
 
2016
Consumer automotive

$
1,339

 
$
4,267

Consumer mortgage

9

 
15

Commercial

—

 
29

Total sales and transfers

$
1,348

 
$
4,311


The following table presents information about significant purchases of finance receivables and loans.
December 31, ($ in millions)
 
2017
 
2016
Consumer automotive
 
$
865

 
$
21

Consumer mortgage
 
4,481

 
3,747

Total purchases of finance receivables and loans
 
$
5,346

 
$
3,768


The following table presents an analysis of our past due finance receivables and loans 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
2017
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,994

 
$
478

 
$
268

 
$
2,740

 
$
65,331

 
$
68,071

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
60

 
11

 
18

 
89

 
11,568

 
11,657

Mortgage — Legacy
 
43

 
25

 
62

 
130

 
1,963

 
2,093

Total consumer mortgage
 
103

 
36

 
80

 
219

 
13,531

 
13,750

Total consumer
 
2,097

 
514

 
348

 
2,959

 
78,862

 
81,821

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
5

 
—

 
3

 
8

 
33,017

 
33,025

Other
 
—

 
—

 
—

 
—

 
3,887

 
3,887

Commercial real estate
 
—

 
—

 
—

 
—

 
4,160

 
4,160

Total commercial
 
5


—


3


8


41,064


41,072

Total consumer and commercial
 
$
2,102


$
514


$
351


$
2,967


$
119,926


$
122,893

2016
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,850

 
$
428

 
$
302

 
$
2,580

 
$
63,213

 
$
65,793

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
39

 
6

 
4

 
49

 
8,245

 
8,294

Mortgage — Legacy
 
45

 
18

 
57

 
120

 
2,636

 
2,756

Total consumer mortgage
 
84

 
24

 
61

 
169

 
10,881

 
11,050

Total consumer
 
1,934

 
452

 
363

 
2,749

 
74,094

 
76,843

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
3

 
—

 
7

 
10

 
35,031

 
35,041

Other
 
—

 
—

 
—

 
—

 
3,248

 
3,248

Commercial real estate
 
—

 
—

 
—

 
—

 
3,812

 
3,812

Total commercial
 
3


—


7


10


42,091


42,101

Total consumer and commercial
 
$
1,937


$
452


$
370


$
2,759


$
116,185


$
118,944


The following table presents the gross carrying value of our finance receivables and loans on nonaccrual status.
December 31, ($ in millions)
 
2017
 
2016
Consumer automotive
 
$
603

 
$
598

Consumer mortgage
 
 
 
 
Mortgage Finance
 
25

 
10

Mortgage — Legacy
 
92

 
89

Total consumer mortgage
 
117

 
99

Total consumer
 
720

 
697

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
27

 
33

Other
 
44

 
84

Commercial real estate
 
1

 
5

Total commercial
 
72

 
122

Total consumer and commercial finance receivables and loans
 
$
792


$
819


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.
 
 
2017
 
2016
December 31, ($ in millions)
 
Performing
 
Nonperforming
 
Total
 
Performing
 
Nonperforming
 
Total
Consumer automotive
 
$
67,468

 
$
603

 
$
68,071

 
$
65,195

 
$
598

 
$
65,793

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
11,632

 
25

 
11,657

 
8,284

 
10

 
8,294

Mortgage — Legacy
 
2,001

 
92

 
2,093

 
2,667

 
89

 
2,756

Total consumer mortgage
 
13,633

 
117

 
13,750

 
10,951

 
99

 
11,050

Total consumer
 
$
81,101

 
$
720

 
$
81,821

 
$
76,146

 
$
697

 
$
76,843


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.
 
 
2017
 
2016
December 31, ($ in millions)
 
Pass
 
Criticized (a)
 
Total
 
Pass
 
Criticized (a)
 
Total
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
$
30,982

 
$
2,043

 
$
33,025

 
$
33,160

 
$
1,881

 
$
35,041

Other
 
2,986

 
901

 
3,887

 
2,597

 
651

 
3,248

Commercial real estate
 
4,023

 
137

 
4,160

 
3,653

 
159

 
3,812

Total commercial
 
$
37,991

 
$
3,081

 
$
41,072


$
39,410

 
$
2,691

 
$
42,101

(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.
December 31, ($ in millions)
 
Unpaid principal balance (a)
 
Gross carrying value
 
Impaired with no allowance
 
Impaired with an allowance
 
Allowance for impaired loans
2017
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
438

 
$
430

 
$
91

 
$
339

 
$
36

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
8

 
8

 
4

 
4

 
—

Mortgage — Legacy
 
228

 
223

 
58

 
165

 
27

Total consumer mortgage
 
236

 
231

 
62

 
169

 
27

Total consumer
 
674

 
661

 
153

 
508

 
63

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
27

 
27

 
9

 
18

 
3

Other
 
54

 
44

 
10

 
34

 
11

Commercial real estate
 
1

 
1

 
—

 
1

 
—

Total commercial
 
82

 
72

 
19

 
53

 
14

Total consumer and commercial finance receivables and loans
 
$
756


$
733


$
172


$
561


$
77

2016
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
407

 
$
370

 
$
131

 
$
239

 
$
28

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
8

 
8

 
3

 
5

 
—

Mortgage — Legacy
 
243

 
239

 
56

 
183

 
34

Total consumer mortgage
 
251

 
247

 
59

 
188

 
34

Total consumer
 
658

 
617

 
190

 
427

 
62

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
33

 
33

 
7

 
26

 
3

Other
 
99

 
84

 
—

 
84

 
19

Commercial real estate
 
5

 
5

 
2

 
3

 
1

Total commercial
 
137

 
122

 
9

 
113

 
23

Total consumer and commercial finance receivables and loans
 
$
795


$
739


$
199


$
540


$
85

(a)
Adjusted for charge-offs.
The following table presents average balance and interest income for our impaired finance receivables and loans.
 
 
2017
 
2016
 
2015
Year ended December 31, ($ in millions)
 
Average balance
 
Interest income
 
Average balance
 
Interest income
 
Average balance
 
Interest income
Consumer automotive
 
$
391

 
$
21

 
$
344

 
$
17

 
$
295

 
$
16

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
8

 
—

 
8

 
—

 
8

 
—

Mortgage — Legacy
 
234

 
10

 
248

 
9

 
272

 
9

Total consumer mortgage
 
242

 
10

 
256

 
9

 
280

 
9

Total consumer
 
633

 
31

 
600

 
26

 
575

 
25

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
49

 
2

 
35

 
1

 
33

 
1

Other
 
69

 
9

 
60

 
1

 
41

 
3

Commercial real estate
 
5

 
—

 
6

 
—

 
5

 
—

Total commercial
 
123

 
11

 
101

 
2

 
79

 
4

Total consumer and commercial finance receivables and loans
 
$
756


$
42


$
701


$
28

 
$
654

 
$
29


Troubled Debt Restructurings
TDRs are loan modifications where concessions were granted to borrowers experiencing financial difficulties. 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. Additionally, for mortgage loans, as part of certain programs, we offer mortgage loan modifications to qualified borrowers. These programs 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. Total TDRs recorded at gross carrying value were $712 million and $663 million at December 31, 2017, and December 31, 2016, respectively.
Total commitments to lend additional funds to borrowers whose terms had been modified in a TDR were $6 million and $2 million at December 31, 2017, and December 31, 2016, respectively. 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.
 
2017
 
2016
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
26,156

 
$
380

 
$
333

 
20,227

 
$
347

 
$
293

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
4

 
1

 
1

 
7

 
3

 
3

Mortgage — Legacy
122

 
21

 
21

 
120

 
18

 
18

Total consumer mortgage
126

 
22

 
22

 
127

 
21

 
21

Total consumer
26,282

 
402

 
355

 
20,354

 
368

 
314

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Automotive
4

 
16

 
15

 
1

 
7

 
7

Other
—

 
44

 
44

 
—

 
—

 
—

Commercial real estate
2

 
3

 
3

 
—

 
—

 
—

Total commercial
6

 
63

 
62

 
1

 
7

 
7

Total consumer and commercial finance receivables and loans
26,288

 
$
465

 
$
417

 
20,355

 
$
375

 
$
321


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.
 
 
2017
 
2016
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
 
8,829

 
$
102

 
$
71

 
7,800

 
$
94

 
$
56

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
1

 
1

 
—

 
—

 
—

 
—

Mortgage — Legacy
 
2

 
—

 
—

 
4

 
—

 
—

Total consumer finance receivables and loans
 
8,832

 
$
103

 
$
71

 
7,804

 
$
94

 
$
56


Concentration Risk
Consumer
We monitor our consumer loan portfolio for concentration risk across the states in which we lend. The highest concentrations of loans are in California and Texas, which represent an aggregate of 24.7% and 24.2% of our total outstanding consumer finance receivables and loans at December 31, 2017, and December 31, 2016, respectively.
The following table shows the percentage of total consumer finance receivables and loans recorded at gross carrying value by state concentration.
 
2017 (a)
 
2016
December 31,
Consumer automotive
 
Consumer mortgage
 
Consumer automotive
 
Consumer mortgage
California
8.2
%
 
34.6
%
 
7.8
%
 
34.2
%
Texas
13.2

 
6.5

 
13.6

 
6.6

Florida
8.5

 
4.8

 
8.2

 
4.4

Pennsylvania
4.6

 
1.5

 
4.7

 
1.5

Illinois
4.2

 
3.2

 
4.3

 
3.4

Georgia
4.2

 
2.5

 
4.3

 
2.2

North Carolina
3.7

 
1.8

 
3.6

 
1.6

Ohio
3.4

 
0.5

 
3.5

 
0.5

New York
3.0

 
2.2

 
3.2

 
1.9

Missouri
2.9

 
0.9

 
2.8

 
1.2

Other United States
44.1

 
41.5

 
44.0

 
42.5

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, 2017.
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,
2017
 
2016
Texas
15.7
%
 
16.1
%
Florida
10.3

 
10.2

California
8.2

 
7.9

Michigan
7.7

 
7.6

Georgia
4.6

 
3.6

New Jersey
3.6

 
4.2

North Carolina
3.6

 
3.6

South Carolina
3.5

 
2.7

Pennsylvania
3.0

 
3.1

Missouri
2.4

 
2.5

Other United States
37.4

 
38.5

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 reported 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. These finance receivables and loans require additional monitoring and review including specific actions to mitigate our potential loss.
The following table presents the percentage of total commercial criticized finance receivables and loans reported at gross carrying value by industry concentrations.
December 31,
2017
 
2016
Automotive
76.3
%
 
81.2
%
Services
6.7

 
6.3

Health/Medical
4.9

 
2.3

Other
12.1

 
10.2

Total commercial criticized finance receivables and loans
100.0
%
 
100.0
%