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Finance Receivables and Loans, Net (Tables)
 3 Months Ended
Mar. 31, 2019
Loans and Leases Receivable, Net Amount [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The composition of finance receivables and loans reported at gross carrying value was as follows.
($ in millions)
 
March 31, 2019
 
December 31, 2018
Consumer automotive (a)
 
$
71,553

 
$
70,539

Consumer mortgage
 
 
 
 
Mortgage Finance (b)
 
16,225

 
15,155

Mortgage — Legacy (c)
 
1,433

 
1,546

Total consumer mortgage
 
17,658

 
16,701

Total consumer
 
89,211

 
87,240

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
31,559

 
33,672

Other
 
4,516

 
4,205

Commercial real estate
 
4,769

 
4,809

Total commercial
 
40,844

 
42,686

Total finance receivables and loans (d)
 
$
130,055

 
$
129,926

(a)
Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 17 for additional information.
(b)
Includes loans originated as interest-only mortgage loans of $17 million and $18 million at March 31, 2019, and December 31, 2018, respectively, 33% of which are expected to start principal amortization in 2019, and 40% in 2020. The remainder of these loans have exited the interest-only period.
(c)
Includes loans originated as interest-only mortgage loans of $305 million and $341 million at March 31, 2019, and December 31, 2018, respectively, of which 99% have exited the interest-only period.
(d)
Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $584 million and $587 million at March 31, 2019, and December 31, 2018, respectively.
Allowance for Credit Losses on Financing Receivables
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans.
Three months ended March 31, 2019 ($ in millions)
 
Consumer automotive
 
Consumer mortgage
 
Commercial
 
Total
Allowance at January 1, 2019

$
1,048


$
53


$
141


$
1,242

Charge-offs (a)

(352
)

(3
)

(5
)

(360
)
Recoveries

118


5


—


123

Net charge-offs

(234
)

2


(5
)

(237
)
Provision for loan losses

257


(3
)

28


282

Other (b)

(1
)

—


2


1

Allowance at March 31, 2019

$
1,070

 
$
52

 
$
166


$
1,288

Allowance for loan losses at March 31, 2019








Individually evaluated for impairment

$
46


$
22


$
58


$
126

Collectively evaluated for impairment

1,024


30


108


1,162

Finance receivables and loans at gross carrying value

 
 
 
 
 
 
 
Ending balance

$
71,553


$
17,658


$
40,844


$
130,055

Individually evaluated for impairment

501


227


269


997

Collectively evaluated for impairment

71,052


17,431


40,575


129,058

(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 2018 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-sale to held-for-investment.
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 2018 Annual Report on Form 10-K for more information regarding our charge-off policies.
Schedule Of Sales Of Financing Receivables And Loans
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)

2019

2018
Consumer automotive

$
20


$
—

Consumer mortgage

—


1

Total sales and transfers (a)

$
20


$
1


(a)
During the three months ended March 31, 2019, we also sold $128 million of finance receivables that were classified as held-for-sale and transferred $63 million of finance receivables from held-for-sale to held-for-investment as of March 31, 2019, both relating to equipment finance receivables from our commercial automotive business.
Schedule of Purchases of Financing Receivables and Loans
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)
 
2019
 
2018
Consumer automotive

$
99


$
168

Consumer mortgage

1,235


1,295

Total purchases of finance receivables and loans

$
1,334

 
$
1,463
Past Due Financing Receivables

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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
1,575

 
$
379

 
$
260

 
$
2,214

 
$
69,339

 
$
71,553

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
52

 
8

 
9

 
69

 
16,156

 
16,225

Mortgage — Legacy
 
31

 
11

 
36

 
78

 
1,355

 
1,433

Total consumer mortgage
 
83

 
19

 
45

 
147

 
17,511

 
17,658

Total consumer
 
1,658

 
398

 
305

 
2,361

 
86,850

 
89,211

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
1

 
8

 
78

 
87

 
31,472

 
31,559

Other
 
—

 
—

 
2

 
2

 
4,514

 
4,516

Commercial real estate
 
—

 
—

 
2

 
2

 
4,767

 
4,769

Total commercial
 
1


8


82


91


40,753


40,844

Total consumer and commercial
 
$
1,659


$
406


$
387


$
2,452


$
127,603


$
130,055

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
2,107

 
$
537

 
$
296

 
$
2,940

 
$
67,599

 
$
70,539

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
67

 
5

 
4

 
76

 
15,079

 
15,155

Mortgage — Legacy
 
30

 
10

 
42

 
82

 
1,464

 
1,546

Total consumer mortgage
 
97

 
15

 
46

 
158

 
16,543

 
16,701

Total consumer
 
2,204

 
552

 
342

 
3,098

 
84,142

 
87,240

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
—

 
1

 
31

 
32

 
33,640

 
33,672

Other
 
—

 
4

 
16

 
20

 
4,185

 
4,205

Commercial real estate
 
—

 
—

 
1

 
1

 
4,808

 
4,809

Total commercial
 
—


5


48


53


42,633


42,686

Total consumer and commercial
 
$
2,204


$
557


$
390


$
3,151


$
126,775


$
129,926
Schedule of Financing Receivables, Non Accrual Status
The following table presents the gross carrying value of our finance receivables and loans on nonaccrual status.
($ in millions)
 
March 31, 2019
 
December 31, 2018
Consumer automotive
 
$
643

 
$
664

Consumer mortgage
 
 
 
 
Mortgage Finance
 
13

 
9

Mortgage — Legacy
 
62

 
70

Total consumer mortgage
 
75

 
79

Total consumer
 
718

 
743

Commercial
 
 
 
 
Commercial and industrial
 
 
 
 
Automotive
 
138

 
203

Other
 
125

 
142

Commercial real estate
 
6

 
4

Total commercial
 
269

 
349

Total consumer and commercial finance receivables and loans
 
$
987


$
1,092
Financing Receivable Credit Quality Indicators
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 more, or when full collection is not expected. Refer to Note 1 to the Consolidated Financial Statements in our 2018 Annual Report on Form 10-K for additional information.
 
 
March 31, 2019
 
December 31, 2018
($ in millions)
 
Performing
 
Nonperforming
 
Total
 
Performing
 
Nonperforming
 
Total
Consumer automotive
 
$
70,910

 
$
643

 
$
71,553

 
$
69,875

 
$
664

 
$
70,539

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
16,212

 
13

 
16,225

 
15,146

 
9

 
15,155

Mortgage — Legacy
 
1,371

 
62

 
1,433

 
1,476

 
70

 
1,546

Total consumer mortgage
 
17,583

 
75

 
17,658

 
16,622

 
79

 
16,701

Total consumer
 
$
88,493

 
$
718

 
$
89,211

 
$
86,497

 
$
743

 
$
87,240
Schedule Of Pass And Criticized Credit Quality Indicators Of Finance Receivables
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, 2019
 
December 31, 2018
($ in millions)
 
Pass
 
Criticized (a)
 
Total
 
Pass
 
Criticized (a)
 
Total
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
 
 
Automotive
 
$
28,774

 
$
2,785

 
$
31,559

 
$
30,799

 
$
2,873

 
$
33,672

Other
 
3,711

 
805

 
4,516

 
3,373

 
832

 
4,205

Commercial real estate
 
4,526

 
243

 
4,769

 
4,538

 
271

 
4,809

Total commercial
 
$
37,011

 
$
3,833

 
$
40,844


$
38,710

 
$
3,976

 
$
42,686

(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 Financing Receivables
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, 2019
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
509

 
$
501

 
$
99

 
$
402

 
$
46

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
15

 
15

 
6

 
9

 
1

Mortgage — Legacy
 
216

 
212

 
65

 
147

 
21

Total consumer mortgage
 
231

 
227

 
71

 
156

 
22

Total consumer
 
740

 
728

 
170

 
558

 
68

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
138

 
138

 
41

 
97

 
18

Other
 
144

 
125

 
56

 
69

 
40

Commercial real estate
 
6

 
6

 
3

 
3

 
—

Total commercial
 
288

 
269

 
100

 
169

 
58

Total consumer and commercial finance receivables and loans
 
$
1,028


$
997


$
270


$
727


$
126

December 31, 2018
 
 
 
 
 
 
 
 
 
 
Consumer automotive
 
$
503

 
$
495

 
$
105

 
$
390

 
$
44

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
 
15

 
15

 
6

 
9

 
1

Mortgage — Legacy
 
221

 
216

 
65

 
151

 
22

Total consumer mortgage
 
236

 
231

 
71

 
160

 
23

Total consumer
 
739

 
726

 
176

 
550

 
67

Commercial
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
Automotive
 
203

 
203

 
112

 
91

 
10

Other
 
159

 
142

 
40

 
102

 
46

Commercial real estate
 
4

 
4

 
4

 
—

 
—

Total commercial
 
366

 
349

 
156

 
193

 
56

Total consumer and commercial finance receivables and loans
 
$
1,105


$
1,075


$
332


$
743


$
123

(a)
Adjusted for charge-offs.
Schedule of Average Balance And Interest Income Of Impaired Finance Receivables
The following table presents average balance and interest income for our impaired finance receivables and loans.
 
 
2019
 
2018
Three months ended March 31, ($ in millions)
 
Average balance
 
Interest income
 
Average balance
 
Interest income
Consumer automotive
 
$
499

 
$
8

 
$
444

 
$
7

Consumer mortgage
 
 
 
 
 
 
 
 
Mortgage Finance
 
15

 
—

 
9

 
—

Mortgage — Legacy
 
214

 
3

 
221

 
2

Total consumer mortgage
 
229

 
3

 
230

 
2

Total consumer
 
728

 
11

 
674

 
9

Commercial
 
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
 
 
 
Automotive
 
170

 
1

 
47

 
1

Other
 
130

 
—

 
52

 
—

Commercial real estate
 
5

 
—

 
3

 
—

Total commercial
 
305

 
1

 
102

 
1

Total consumer and commercial finance receivables and loans
 
$
1,033


$
12


$
776


$
10
Troubled Debt Restructurings on Financing Receivables
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.
 
2019
 
2018
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
7,427

 
$
129

 
$
111

 
7,042

 
$
128

 
$
110

Consumer mortgage
 
 
 
 
 
 
 
 
 
 
 
Mortgage Finance
1

 
—

 
—

 
1

 
1

 
1

Mortgage — Legacy
20

 
3

 
3

 
62

 
10

 
9

Total consumer mortgage
21


3


3


63


11


10

Total consumer finance receivables and loans
7,448

 
132

 
114

 
7,105

 
139

 
120

Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial
 
 
 
 
 
 
 
 
 
 
 
Automotive
6

 
41

 
41

 
—

 
—

 
—

Total commercial
6

 
41

 
41


—


—


—

Total consumer and commercial finance receivables and loans
7,454


$
173


$
155


7,105


$
139


$
120
Finance receivables and loans redefaulted during the period
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 twelve 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 2018 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.
 
 
2019
 
2018
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
 
2,209

 
$
26

 
$
16

 
2,326

 
$
28

 
$
18

Total consumer finance receivables and loans
 
2,209

 
$
26

 
$
16

 
2,326

 
$
28

 
$
18