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Investment Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure Investment Securities
Our investment portfolio includes various debt and equity securities. Our debt securities, which are classified as available-for-sale or held-to-maturity, include government securities, corporate bonds, asset-backed securities, and mortgage-backed securities. The cost, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity debt securities were as follows.
 
 
2019
 
2018


Amortized cost

Gross unrealized

Fair value

Amortized cost

Gross unrealized

Fair value
December 31, ($ in millions)

gains

losses

gains

losses

Available-for-sale securities
















Debt securities
















U.S. Treasury and federal agencies

$
2,059


$
6


$
(17
)

$
2,048


$
1,911


$
—


$
(60
)

$
1,851

U.S. States and political subdivisions

623


19


(1
)

641


816


3


(17
)

802

Foreign government

184


3


(1
)

186


145


1


(1
)

145

Agency mortgage-backed residential (a)

21,183


257


(36
)

21,404


17,486


47


(395
)

17,138

Mortgage-backed residential
 
2,841

 
20

 
(11
)
 
2,850

 
2,796

 
1

 
(111
)
 
2,686

Agency mortgage-backed commercial
 
1,344

 
44

 
(6
)
 
1,382

 
3

 
—

 
—

 
3

Mortgage-backed commercial

41


1


—


42


715


1


(2
)

714

Asset-backed

365


3


—


368


723


2


(2
)

723

Corporate debt

1,327


37


(1
)

1,363


1,286


1


(46
)

1,241

Total available-for-sale securities (b) (c) (d)

$
29,967


$
390


$
(73
)

$
30,284


$
25,881


$
56


$
(634
)

$
25,303

Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential (a) (e)
 
$
1,547

 
$
38

 
$
(6
)
 
$
1,579

 
$
2,319

 
$
6

 
$
(61
)
 
$
2,264

Asset-backed retained notes
 
21

 
—

 
—

 
21

 
43

 
—

 
—

 
43

Total held-to-maturity securities

$
1,568


$
38


$
(6
)

$
1,600


$
2,362

 
$
6

 
$
(61
)
 
$
2,307

(a)
During the year ended December 31, 2019, agency mortgage-backed residential securities with an amortized cost of $943 million and a fair value of $945 million were transferred from held-to-maturity to available-for-sale, which resulted in the establishment of a $2 million net unrealized gain at the time of transfer. The transfer was made following the issuance of the final rules by banking agencies implementing provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCP Act) as further described in the section titled Regulation and Supervision in Part I, Item 1, of this report. Under the final rules, Ally is no longer subject to liquidity coverage ratio requirements.
(b)
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $12 million at both December 31, 2019, and December 31, 2018.
(c)
Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 21 for additional information.
(d)
Available-for-sale securities with a fair value of $1.9 billion and $9.2 billion at December 31, 2019, and December 31, 2018, respectively, were pledged to secure advances from the FHLB, short-term borrowings or repurchase agreements, or for other purposes as required by contractual obligation or law. Under these agreements, we granted the counterparty the right to sell or pledge $118 million and $821 million of the underlying investment securities at December 31, 2019, and December 31, 2018, respectively.
(e)
Held-to-maturity securities with a fair value of $915 million and $1.2 billion at December 31, 2019, and December 31, 2018, respectively, were pledged to secure advances from the FHLB.
The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. 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
December 31, 2019




















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




















U.S. Treasury and federal agencies

$
2,048


1.5
%

$
65


2.1
%

$
1,590


1.4
%

$
393


1.7
%

$
—


—
%
U.S. States and political subdivisions

641


3.1


22


2.7


75


2.3


159


2.8


385


3.4

Foreign government

186


1.9


35


0.4


65


2.3


86


2.3


—


—

Agency mortgage-backed residential
 
21,404

 
3.2

 
—

 
—

 
—

 
—

 
47

 
2.0

 
21,357

 
3.2

Mortgage-backed residential
 
2,850

 
3.2

 
—

 
—

 
—

 
—

 
—

 
—

 
2,850

 
3.2

Agency mortgage-backed commercial
 
1,382

 
2.9

 
—

 
—

 
3

 
3.2

 
1,109

 
3.0

 
270

 
2.4

Mortgage-backed commercial

42


3.5


—


—


—


—


—


—


42


3.5

Asset-backed

368


3.5


—


—


317


3.6


5


2.7


46


3.0

Corporate debt

1,363


3.2


125


2.9


580


3.0


649


3.4


9


3.3

Total available-for-sale securities

$
30,284


3.1


$
247


2.3


$
2,630


2.1


$
2,448


2.8


$
24,959


3.2

Amortized cost of available-for-sale securities

$
29,967




$
246




$
2,624




$
2,378




$
24,719



Amortized cost of held-to-maturity securities
 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential
 
$
1,547

 
3.2
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
1,547

 
3.2
%
Asset-backed retained notes
 
21

 
2.2

 
—

 
—

 
21

 
2.2

 
—

 
—

 
—

 
—

Total held-to-maturity securities
 
$
1,568

 
3.2

 
$
—

 
—

 
$
21

 
2.2

 
$
—

 
—

 
$
1,547

 
3.2

December 31, 2018




















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




















U.S. Treasury and federal agencies

$
1,851


1.9
%

$
12


1.0
%

$
1,277


1.8
%

$
562


2.0
%

$
—


—
%
U.S. States and political subdivisions

802


3.0


49


1.9


43


2.3


252


2.6


458


3.4

Foreign government

145


2.4


18


3.1


60


2.3


67


2.4


—


—

Agency mortgage-backed residential
 
17,138

 
3.3

 
—

 
—

 
—

 
—

 
54

 
1.9

 
17,084

 
3.3

Mortgage-backed residential

2,686

 
3.3

 
—

 
—

 
—

 
—

 
—

 
—

 
2,686

 
3.3

Agency mortgage-backed commercial
 
3

 
3.1

 
—

 
—

 
3

 
3.1

 
—

 
—

 
—

 
—

Mortgage-backed commercial

714


3.8


—


—


—


—


46


3.9


668


3.8

Asset-backed

723


3.5


—


—


478


3.4


121


4.0


124


3.3

Corporate debt

1,241


3.1


144


2.8


496


2.9


581


3.3


20


5.5

Total available-for-sale securities

$
25,303


3.2


$
223


2.6


$
2,357


2.4


$
1,683


2.8


$
21,040


3.3

Amortized cost of available-for-sale securities

$
25,881





$
224





$
2,405





$
1,743





$
21,509




Amortized cost of held-to-maturity securities

 






















Agency mortgage-backed residential
 
$
2,319

 
3.2
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
—

 
—
%
 
$
2,319

 
3.2
%
Asset-backed retained notes
 
43

 
2.0

 
—

 
—

 
42

 
2.0

 
1

 
3.3

 
—

 
—

Total held-to-maturity securities
 
$
2,362

 
3.2

 
$
—

 
—

 
$
42

 
2.0

 
$
1

 
3.3

 
$
2,319

 
3.2

(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 $73 million and $35 million at December 31, 2019, and December 31, 2018, respectively, and were composed primarily of money-market accounts and short-term securities, including U.S. Treasury bills.
The following table presents interest and dividends on investment securities.
Year ended December 31, ($ in millions)
2019
 
2018
 
2017
Taxable interest
$
858

 
$
690

 
$
534

Taxable dividends
14

 
14

 
12

Interest and dividends exempt from U.S. federal income tax
15

 
25

 
22

Interest and dividends on investment securities
$
887

 
$
729

 
$
568


The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period. There were no other-than-temporary impairments of available-for-sale securities for the periods presented.
Year ended December 31, ($ in millions)
2019
 
2018
 
2017
Available-for-sale securities
 
 
 
 
 
Gross realized gains
$
82

 
$
12

 
$
106

Gross realized losses (a)
(4
)
 
(1
)
 
(4
)
Net realized gains on available-for-sale securities
78

 
11

 
102

Net realized gain on equity securities
73

 
60

 
 
Net unrealized gain (loss) on equity securities
92

 
(121
)
 
 
Other gain (loss) on investments, net
$
243

 
$
(50
)
 
$
102


(a)
Certain available-for-sale securities were sold at a loss in 2019, 2018, and 2017 as a result of identifiable market or credit events, or a loss was realized based on corporate actions outside of our control (such as a call by the issuer). Any such sales were made in accordance with our risk-management policies and practices.
The table below summarizes available-for-sale and held-to-maturity securities in an unrealized loss position, which we evaluated for other than temporary impairment. For additional information on our methodology, refer to Note 1. As of December 31, 2019, we did not have the intent to sell the available-for-sale or held-to-maturity securities with an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. As a result of this evaluation, we believe that the securities with an unrealized loss position are not considered to be other-than-temporarily impaired at December 31, 2019.
 
 
2019
 
2018


Less than 12 months

12 months or longer

Less than 12 months

12 months or longer
December 31, ($ 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 and federal agencies

$
1,267


$
(11
)

$
279


$
(6
)

$
31


$
—


$
1,758


$
(60
)
U.S. States and political subdivisions

72


(1
)

5


—


259


(3
)

317


(14
)
Foreign government

40


(1
)

3


—


6


—


74


(1
)
Agency mortgage-backed residential
 
4,606

 
(23
)
 
908

 
(13
)
 
5,537

 
(94
)
 
7,808

 
(301
)
Mortgage-backed residential
 
613

 
(4
)
 
203

 
(7
)
 
1,024

 
(20
)
 
1,360

 
(91
)
Agency mortgage-backed commercial
 
335

 
(6
)
 
—

 
—

 
—

 
—

 
—

 
—

Mortgage-backed commercial
 
—

 
—

 
—

 
—

 
347

 
(1
)
 
36

 
(1
)
Asset-backed

8


—


11


—


294


(1
)

124


(1
)
Corporate debt

71


—


41


(1
)

576


(19
)

569


(27
)
Total temporarily impaired available-for-sale securities

$
7,012


$
(46
)

$
1,450


$
(27
)

$
8,074


$
(138
)

$
12,046


$
(496
)
Held-to-maturity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed residential
 
$
283

 
$
(6
)
 
$
—

 
$
—

 
$
457

 
$
(6
)
 
$
1,376

 
$
(55
)
Asset-backed retained notes
 
—

 
—

 
3

 
—

 
16

 
—

 
19

 
—

Total held-to-maturity debt securities
 
$
283

 
$
(6
)
 
$
3

 
$
—

 
$
473

 
$
(6
)
 
$
1,395

 
$
(55
)