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Finance Receivables and Loans, Net
 3 Months Ended
Mar. 31, 2018
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.
($ in millions)
 
March 31, 2018
 
December 31, 2017
Consumer automotive (a)
 
$
69,318

 
$
68,071

Consumer mortgage
 
 
 
 
Mortgage Finance (b)
 
12,733

 
11,657

Mortgage — Legacy (c)
 
1,950

 
2,093

Total consumer mortgage
 
14,683

 
13,750

Total consumer
 
84,001

 
81,821

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
32,781

 
33,025

Other
 
4,184

 
3,887

Commercial real estate
 
4,361

 
4,160

Total commercial
 
41,326

 
41,072

Total finance receivables and loans (d)
 
$
125,327

 
$
122,893

(a)
Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 18 for additional information.
(b)
Includes loans originated as interest-only mortgage loans of $19 million and $20 million at March 31, 2018, and December 31, 2017, respectively, 34% of which are expected to start principal amortization in 2019, and 46% in 2020. The remainder of these loans have already exited the interest-only period.
(c)
Includes loans originated as interest-only mortgage loans of $459 million and $496 million at March 31, 2018, and December 31, 2017, respectively, 2% 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 unearned income, unamortized premiums and discounts, and deferred fees and costs of $586 million and $551 million at March 31, 2018, and December 31, 2017, respectively.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans.
Three months ended March 31, 2018 ($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2018

$
1,066


$
79


$
131


$
1,276

Charge-offs (a)

(365
)

(12
)

—


(377
)
Recoveries

112


6


—


118

Net charge-offs

(253
)

(6
)

—


(259
)
Provision for loan losses

253


1


7


261

Allowance at March 31, 2018

$
1,066

 
$
74

 
$
138


$
1,278

Allowance for loan losses at March 31, 2018








Individually evaluated for impairment

$
40


$
27


$
21


$
88

Collectively evaluated for impairment

1,026


47


117


1,190

Finance receivables and loans at gross carrying value

 
 
 
 
 
 
 
Ending balance

$
69,318


$
14,683


$
41,326


$
125,327

Individually evaluated for impairment

463


230


147


840

Collectively evaluated for impairment

68,855


14,453


41,179


124,487

(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 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K for more information regarding our charge-off policies.
Three months ended March 31, 2017 ($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2017
 
$
932

 
$
91

 
$
121

 
$
1,144

Charge-offs (a)
 
(341
)
 
(9
)
 
—

 
(350
)
Recoveries
 
90

 
7

 
—

 
97

Net charge-offs
 
(251
)
 
(2
)
 
—

 
(253
)
Provision for loan losses
 
267

 
(3
)
 
7

 
271

Other (b)
 
(7
)
 
—

 
—

 
(7
)
Allowance at March 31, 2017
 
$
941

 
$
86

 
$
128

 
$
1,155

Allowance for loan losses at March 31, 2017








Individually evaluated for impairment

$
32


$
33


$
24


$
89

Collectively evaluated for impairment

909


53


104


1,066

Finance receivables and loans at gross carrying value

 
 
 
 
 



Ending balance

$
65,663


$
10,937


$
42,402


$
119,002

Individually evaluated for impairment

388


249


120


757

Collectively evaluated for impairment

65,275


10,688


42,282


118,245

(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 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K 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 based on net carrying value.
 
 
Three months ended March 31,
($ in millions)

2018
 
2017
Consumer automotive

$
—

 
$
1,213

Consumer mortgage

1

 
3

Total sales and transfers

$
1

 
$
1,216


The following table presents information about significant purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.
 
 
Three months ended March 31,
($ in millions)
 
2018
 
2017
Consumer automotive
 
$
168

 
$
68

Consumer mortgage
 
1,295

 
327

Total purchases of finance receivables and loans
 
$
1,463

 
$
395


The following table presents an analysis of our past due finance receivables and loans recorded at gross carrying value.
($ 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
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,574

 
$
359

 
$
253

 
$
2,186

 
$
67,132

 
$
69,318

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
97

 
8

 
18

 
123

 
12,610

 
12,733

Mortgage — Legacy
 
40

 
19

 
61

 
120

 
1,830

 
1,950

Total consumer mortgage
 
137

 
27

 
79

 
243

 
14,440

 
14,683

Total consumer
 
1,711

 
386

 
332

 
2,429

 
81,572

 
84,001

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
23

 
6

 
4

 
33

 
32,748

 
32,781

Other
 
—

 
30

 
—

 
30

 
4,154

 
4,184

Commercial real estate
 
4

 
—

 
—

 
4

 
4,357

 
4,361

Total commercial
 
27


36


4


67


41,259


41,326

Total consumer and commercial
 
$
1,738


$
422


$
336


$
2,496


$
122,831


$
125,327

December 31, 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


The following table presents the gross carrying value of our finance receivables and loans on nonaccrual status.
($ in millions)
 
March 31, 2018
 
December 31, 2017
Consumer automotive
 
$
601

 
$
603

Consumer mortgage
 
 
 
 
Mortgage Finance
 
28

 
25

Mortgage — Legacy
 
87

 
92

Total consumer mortgage
 
115

 
117

Total consumer
 
716

 
720

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
68

 
27

Other
 
74

 
44

Commercial real estate
 
5

 
1

Total commercial
 
147

 
72

Total consumer and commercial finance receivables and loans
 
$
863


$
792


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 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K for additional information.
 
 
March 31, 2018
 
December 31, 2017
($ in millions)
 
Performing
 
Nonperforming
 
Total
 
Performing
 
Nonperforming
 
Total
Consumer automotive
 
$
68,717

 
$
601

 
$
69,318

 
$
67,468

 
$
603

 
$
68,071

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
12,705

 
28

 
12,733

 
11,632

 
25

 
11,657

Mortgage — Legacy
 
1,863

 
87

 
1,950

 
2,001

 
92

 
2,093

Total consumer mortgage
 
14,568

 
115

 
14,683

 
13,633

 
117

 
13,750

Total consumer
 
$
83,285

 
$
716

 
$
84,001

 
$
81,101

 
$
720

 
$
81,821


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.
 
 
March 31, 2018
 
December 31, 2017
($ in millions)
 
Pass
 
Criticized (a)
 
Total
 
Pass
 
Criticized (a)
 
Total
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
$
30,433

 
$
2,348

 
$
32,781

 
$
30,982

 
$
2,043

 
$
33,025

Other
 
3,284

 
900

 
4,184

 
2,986

 
901

 
3,887

Commercial real estate
 
4,151

 
210

 
4,361

 
4,023

 
137

 
4,160

Total commercial
 
$
37,868

 
$
3,458

 
$
41,326


$
37,991

 
$
3,081

 
$
41,072

(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 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K.
The following table presents information about our impaired finance receivables and loans.
($ in millions)
 
Unpaid principal balance (a)
 
Gross carrying value
 
Impaired with no allowance
 
Impaired with an allowance
 
Allowance for impaired loans
March 31, 2018
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
473

 
$
463

 
$
107

 
$
356

 
$
40

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
9

 
9

 
4

 
5

 
—

Mortgage — Legacy
 
226

 
221

 
61

 
160

 
27

Total consumer mortgage
 
235

 
230

 
65

 
165

 
27

Total consumer
 
708

 
693

 
172

 
521

 
67

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
68

 
68

 
15

 
53

 
9

Other
 
85

 
74

 
41

 
33

 
11

Commercial real estate
 
5

 
5

 
4

 
1

 
1

Total commercial
 
158

 
147

 
60

 
87

 
21

Total consumer and commercial finance receivables and loans
 
$
866


$
840


$
232


$
608


$
88

December 31, 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

(a)
Adjusted for charge-offs.
The following table presents average balance and interest income for our impaired finance receivables and loans.
 
 
2018
 
2017
Three months ended March 31, ($ in millions)
 
Average balance
 
Interest income
 
Average balance
 
Interest income
Consumer automotive
 
$
444

 
$
7

 
$
379

 
$
5

Consumer mortgage
 
 
 
 
 
 
 
 
Mortgage Finance
 
9

 
—

 
8

 
—

Mortgage — Legacy
 
221

 
2

 
241

 
2

Total consumer mortgage
 
230

 
2

 
249

 
2

Total consumer
 
674

 
9

 
628

 
7

Commercial
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
Automotive
 
47

 
1

 
33

 
—

Other
 
52

 
—

 
83

 
—

Commercial real estate
 
3

 
—

 
5

 
—

Total commercial
 
102

 
1

 
121

 
—

Total consumer and commercial finance receivables and loans
 
$
776


$
10


$
749


$
7


Troubled Debt Restructurings
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 $742 million and $712 million at March 31, 2018, and December 31, 2017, respectively.
Total commitments to lend additional funds to borrowers whose terms had been modified in a TDR were $6 million at both March 31, 2018, and December 31, 2017. Refer to Note 1 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K 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.
 
2018
 
2017
Three months ended March 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
7,042

 
$
128

 
$
110

 
6,447

 
$
115

 
$
99

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
1

 
1

 
1

 
1

 
—

 
—

Mortgage — Legacy
62

 
10

 
9

 
53

 
12

 
12

Total consumer mortgage
63

 
11

 
10

 
54

 
12

 
12

Total consumer
7,105

 
139

 
120

 
6,501

 
127

 
111

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
Other
—

 
—

 
—

 
1

 
23

 
23

Total commercial
—

 
—

 
—

 
1

 
23

 
23

Total consumer and commercial finance receivables and loans
7,105

 
$
139

 
$
120

 
6,502

 
$
150

 
$
134


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 to the Consolidated Financial Statements in our 2017 Annual Report on Form 10-K for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
 
 
2018
 
2017
Three months ended March 31, ($ in millions)
 
Number of loans
 
Gross carrying  value
 
Charge-off amount
 
Number of loans
 
Gross carrying value
 
Charge-off amount
Consumer automotive
 
2,326

 
$
28

 
$
18

 
1,989

 
$
24

 
$
16

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
—

 
—

 
—

 
1

 
1

 
—

Total consumer finance receivables and loans
 
2,326

 
$
28

 
$
18

 
1,990

 
$
25

 
$
16