Finance Receivables and Loans, Net (Tables)

6 Months Ended

Jun. 30, 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)	June 30, 2019		December 31, 2018
Consumer automotive (a)	$	72,898	$	70,539
Consumer mortgage
Mortgage Finance (b)	16,485		15,155
Mortgage — Legacy (c)	1,315		1,546
Total consumer mortgage	17,800		16,701
Total consumer	90,698		87,240
Commercial
Commercial and industrial
Automotive	29,382		33,672
Other	4,353		4,205
Commercial real estate	4,777		4,809
Total commercial	38,512		42,686
Total finance receivables and loans (d)	$	129,210	$	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 $12 million and $18 million at June 30, 2019, and December 31, 2018, respectively, 34% of which are expected to start principal amortization in 2019, and 41% in 2020. The remainder of these loans have exited the interest-only period.

(c) Includes loans originated as interest-only mortgage loans of $263 million and $341 million at June 30, 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 $577 million and $587 million at June 30, 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 June 30, 2019 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at April 1, 2019	$	1,070		$	52		$	166		$	1,288
Charge-offs (a)	(301		)	(5		)	(12		)	(318		)
Recoveries	129			7			—			136
Net charge-offs	(172		)	2			(12		)	(182		)
Provision for loan losses	180			(5		)	2			177
Other	—			—			(1		)	(1		)
Allowance at June 30, 2019	$	1,078		$	49		$	155		$	1,282

(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.

Three months ended June 30, 2018 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at April 1, 2018	$	1,066		$	74		$	138		$	1,278
Charge-offs (a)	(296		)	(8		)	(2		)	(306		)
Recoveries	114			6			6			126
Net charge-offs	(182		)	(2		)	4			(180		)
Provision for loan losses	168			(4		)	(6		)	158
Other	1			(2		)	2			1
Allowance at June 30, 2018	$	1,053		$	66		$	138		$	1,257

(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.

Six months ended June 30, 2019 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at January 1, 2019	$	1,048		$	53		$	141		$	1,242
Charge-offs (a)	(653		)	(8		)	(17		)	(678		)
Recoveries	247			12			—			259
Net charge-offs	(406		)	4			(17		)	(419		)
Provision for loan losses	437			(8		)	30			459
Other	(1		)	—			1			—
Allowance at June 30, 2019	$	1,078		$	49		$	155		$	1,282
Allowance for loan losses at June 30, 2019
Individually evaluated for impairment	$	42		$	20		$	49		$	111
Collectively evaluated for impairment	1,036			29			106			1,171
Finance receivables and loans at gross carrying value
Ending balance	$	72,898		$	17,800		$	38,512		$	129,210
Individually evaluated for impairment	496			220			196			912
Collectively evaluated for impairment	72,402			17,580			38,316			128,298

(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.

Six months ended June 30, 2018 ($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at January 1, 2018	$	1,066		$	79		$	131		$	1,276
Charge-offs (a)	(661		)	(20		)	(2		)	(683		)
Recoveries	226			12			6			244
Net charge-offs	(435		)	(8		)	4			(439		)
Provision for loan losses	421			(3		)	1			419
Other	1			(2		)	2			1
Allowance at June 30, 2018	$	1,053		$	66		$	138		$	1,257
Allowance for loan losses at June 30, 2018
Individually evaluated for impairment	$	42		$	24		$	27		$	93
Collectively evaluated for impairment	1,011			42			111			1,164
Finance receivables and loans at gross carrying value
Ending balance	$	70,473		$	15,131		$	39,940		$	125,544
Individually evaluated for impairment	480			228			198			906
Collectively evaluated for impairment	69,993			14,903			39,742			124,638

(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 June 30,				Six months ended June 30,
($ in millions)	2019		2018		2019		2018
Consumer automotive	$	—	$	—	$	20	$	—
Consumer mortgage	—		4		—		5
Total sales and transfers (a)	$	—	$	4	$	20	$	5

(a)

During the six months ended June 30, 2019, we also sold $131 million of loans held-for-sale that were initially classified as finance receivables and loans held-for-investment, and transferred $79 million of finance receivables from held-for-sale to held-for-investment, 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 June 30,				Six months ended June 30,
($ in millions)	2019		2018		2019		2018
Consumer automotive	$	218	$	233	$	317	$	401
Consumer mortgage	678		852		1,913		2,147
Commercial	3		—		3		—
Total purchases of finance receivables and loans	$	899	$	1,085	$	2,233	$	2,548

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
June 30, 2019
Consumer automotive	$	1,802	$	444	$	273	$	2,519	$	70,379	$	72,898
Consumer mortgage
Mortgage Finance	77		9		9		95		16,390		16,485
Mortgage — Legacy	32		13		30		75		1,240		1,315
Total consumer mortgage	109		22		39		170		17,630		17,800
Total consumer	1,911		466		312		2,689		88,009		90,698
Commercial
Commercial and industrial
Automotive	3		—		67		70		29,312		29,382
Other	—		—		2		2		4,351		4,353
Commercial real estate	—		—		4		4		4,773		4,777
Total commercial	3		—		73		76		38,436		38,512
Total consumer and commercial	$	1,914	$	466	$	385	$	2,765	$	126,445	$	129,210
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)	June 30, 2019		December 31, 2018
Consumer automotive	$	642	$	664
Consumer mortgage
Mortgage Finance	12		9
Mortgage — Legacy	53		70
Total consumer mortgage	65		79
Total consumer	707		743
Commercial
Commercial and industrial
Automotive	89		203
Other	101		142
Commercial real estate	6		4
Total commercial	196		349
Total consumer and commercial finance receivables and loans	$	903	$	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.

	June 30, 2019						December 31, 2018
($ in millions)	Performing		Nonperforming		Total		Performing		Nonperforming		Total
Consumer automotive	$	72,256	$	642	$	72,898	$	69,875	$	664	$	70,539
Consumer mortgage
Mortgage Finance	16,473		12		16,485		15,146		9		15,155
Mortgage — Legacy	1,262		53		1,315		1,476		70		1,546
Total consumer mortgage	17,735		65		17,800		16,622		79		16,701
Total consumer	$	89,991	$	707	$	90,698	$	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.

	June 30, 2019						December 31, 2018
($ in millions)	Pass		Criticized (a)		Total		Pass		Criticized (a)		Total
Commercial and industrial
Automotive	$	26,629	$	2,753	$	29,382	$	30,799	$	2,873	$	33,672
Other	3,580		773		4,353		3,373		832		4,205
Commercial real estate	4,517		260		4,777		4,538		271		4,809
Total commercial	$	34,726	$	3,786	$	38,512	$	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
June 30, 2019
Consumer automotive	$	506	$	496	$	101	$	395	$	42
Consumer mortgage
Mortgage Finance	14		14		6		8		—
Mortgage — Legacy	211		206		65		141		20
Total consumer mortgage	225		220		71		149		20
Total consumer	731		716		172		544		62
Commercial
Commercial and industrial
Automotive	89		89		18		71		19
Other	122		101		55		46		30
Commercial real estate	6		6		6		—		—
Total commercial	217		196		79		117		49
Total consumer and commercial finance receivables and loans	$	948	$	912	$	251	$	661	$	111
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 tables present average balance and interest income for our impaired finance receivables and loans.

	2019				2018
Three months ended June 30, ($ in millions)	Average balance		Interest income		Average balance		Interest income
Consumer automotive	$	498	$	9	$	472	$	7
Consumer mortgage
Mortgage Finance	14		—		9		—
Mortgage — Legacy	209		2		219		3
Total consumer mortgage	223		2		228		3
Total consumer	721		11		700		10
Commercial
Commercial and industrial
Automotive	113		—		78		1
Other	108		—		82		—
Commercial real estate	6		—		5		—
Total commercial	227		—		165		1
Total consumer and commercial finance receivables and loans	$	948	$	11	$	865	$	11

	2019				2018
Six months ended June 30, ($ in millions)	Average balance		Interest income		Average balance		Interest income
Consumer automotive	$	498	$	17	$	462	$	14
Consumer mortgage
Mortgage Finance	15		—		9		—
Mortgage — Legacy	211		5		220		5
Total consumer mortgage	226		5		229		5
Total consumer	724		22		691		19
Commercial
Commercial and industrial
Automotive	143		1		61		2
Other	117		—		66		—
Commercial real estate	6		—		4		—
Total commercial	266		1		131		2
Total consumer and commercial finance receivables and loans	$	990	$	23	$	822	$	21

Troubled Debt Restructurings on Financing Receivables

The following tables present 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 June 30, ($ 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	5,598	$	96	$	85	5,898	$	107	$	93
Consumer mortgage
Mortgage Finance	2	—		—		7	2		2
Mortgage — Legacy	18	3		3		27	6		7
Total consumer mortgage	20	3		3		34	8		9
Total consumer	5,618	99		88		5,932	115		102
Commercial
Commercial and industrial
Automotive	—	—		—		3	4		4
Other	1	22		6		2	55		51
Total commercial	1	22		6		5	59		55
Total consumer and commercial finance receivables and loans	5,619	$	121	$	94	5,937	$	174	$	157

	2019					2018
Six months ended June 30, ($ 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	13,025	$	225	$	196	12,940	$	235	$	203
Consumer mortgage
Mortgage Finance	3	—		—		8	3		3
Mortgage — Legacy	38	6		6		89	16		16
Total consumer mortgage	41	6		6		97	19		19
Total consumer	13,066	231		202		13,037	254		222
Commercial
Commercial and industrial
Automotive	6	41		41		3	4		4
Other	1	22		6		2	55		51
Total commercial	7	63		47		5	59		55
Total consumer and commercial finance receivables and loans	13,073	$	294	$	249	13,042	$	313	$	277

Finance receivables and loans redefaulted during the period

The following tables present 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 June 30, ($ in millions)	Number of loans	Gross carrying value		Charge-off amount		Number of loans	Gross carrying value		Charge-off amount
Consumer automotive	1,752	$	20	$	12	2,425	$	29	$	17
Consumer mortgage
Mortgage — Legacy	—	—		—		1	—		—
Total consumer finance receivables and loans	1,752	$	20	$	12	2,426	$	29	$	17

	2019					2018
Six months ended June 30, ($ in millions)	Number of loans	Gross carrying value		Charge-off amount		Number of loans	Gross carrying value		Charge-off amount
Consumer automotive	3,961	$	46	$	28	4,751	$	57	$	35
Consumer mortgage
Mortgage — Legacy	—	—		—		1	—		—
Total consumer finance receivables and loans	3,961	$	46	$	28	4,752	$	57	$	35