Finance Receivables and Loans, Net (Tables)

12 Months Ended

Dec. 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.

December 31, ($ in millions)	2019		2018
Consumer automotive (a)	$	72,390	$	70,539
Consumer mortgage
Mortgage Finance (b)	16,181		15,155
Mortgage — Legacy (c)	1,141		1,546
Total consumer mortgage	17,322		16,701
Consumer other (d)	212		—
Total consumer	89,924		87,240
Commercial
Commercial and industrial
Automotive	28,332		33,672
Other	5,014		4,205
Commercial real estate	4,961		4,809
Total commercial	38,307		42,686
Total finance receivables and loans (e)	$	128,231	$	129,926

(a) Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 21 for additional information.

(b) Includes loans originated as interest-only mortgage loans of $11 million and $18 million at December 31, 2019, and December 31, 2018, respectively, 47% of which are expected to start principal amortization in 2020. The remainder of these loans have exited the interest-only period.

(c) Includes loans originated as interest-only mortgage loans of $212 million and $341 million at December 31, 2019, and December 31, 2018, respectively, of which 99% have exited the interest-only period.

(d) Includes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.

(e)

Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $503 million and $587 million at December 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.

($ in millions)	Consumer automotive			Consumer mortgage			Consumer other (a)			Commercial			Total
Allowance at January 1, 2019	$	1,048		$	53		$	—		$	141		$	1,242
Charge-offs (b)	(1,423		)	(13		)	(5		)	(49		)	(1,490		)
Recoveries	493			21			—			—			514
Net charge-offs	(930		)	8			(5		)	(49		)	(976		)
Provision for loan losses	957			(13		)	14			40			998
Other	—			(2		)	—			1			(1		)
Allowance at December 31, 2019	$	1,075		$	46		$	9		$	133		$	1,263
Allowance for loan losses at December 31, 2019
Individually evaluated for impairment	$	38		$	18		$	—		$	33		$	89
Collectively evaluated for impairment	1,037			28			9			100			1,174
Finance receivables and loans at gross carrying value
Ending balance	$	72,390		$	17,322		$	201		$	38,307		$	128,220
Individually evaluated for impairment	538			208			—			215			961
Collectively evaluated for impairment	71,852			17,114			201			38,092			127,259

(a) Excludes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.

(b) 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.

($ in millions)	Consumer automotive			Consumer mortgage			Commercial			Total
Allowance at January 1, 2018	$	1,066		$	79		$	131		$	1,276
Charge-offs (a)	(1,383		)	(35		)	(15		)	(1,433		)
Recoveries	456			25			7			488
Net charge-offs	(927		)	(10		)	(8		)	(945		)
Provision for loan losses	911			(15		)	22			918
Other (b)	(2		)	(1		)	(4		)	(7		)
Allowance at December 31, 2018	$	1,048		$	53		$	141		$	1,242
Allowance for loan losses at December 31, 2018
Individually evaluated for impairment	$	44		$	23		$	56		$	123
Collectively evaluated for impairment	1,004			30			85			1,119
Finance receivables and loans at gross carrying value
Ending balance	$	70,539		$	16,701		$	42,686		$	129,926
Individually evaluated for impairment	495			231			349			1,075
Collectively evaluated for impairment	70,044			16,470			42,337			128,851

(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.

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.

Year ended December 31, ($ in millions)	2019		2018
Consumer automotive	$	20	$	578
Consumer mortgage	940		10
Commercial	—		238
Total sales and transfers (a)	$	960	$	826

(a)

During the year ended December 31, 2019, we also sold $131 million of loans held-for-sale that were initially classified as finance receivables and loans held-for-investment and were transferred to held-for-sale during 2018, 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.

Year ended December 31, ($ in millions)	2019		2018
Consumer automotive	$	531	$	896
Consumer mortgage	3,451		4,446
Consumer other (a)	117		—
Commercial	46		15
Total purchases of finance receivables and loans	$	4,145	$	5,357

(a)

During the year ended December 31, 2019, we also obtained $75 million of finance receivables and loans from our acquisition of Health Credit Services. For additional information on our acquisition, refer to Note 2.

Past Due Financing Receivables

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
2019
Consumer automotive	$	2,185	$	590	$	367	$	3,142	$	69,248	$	72,390
Consumer mortgage
Mortgage Finance	56		11		9		76		16,105		16,181
Mortgage — Legacy	25		8		28		61		1,080		1,141
Total consumer mortgage	81		19		37		137		17,185		17,322
Consumer other (a)	3		2		2		7		194		201
Total consumer	2,269		611		406		3,286		86,627		89,913
Commercial
Commercial and industrial
Automotive	34		—		28		62		28,270		28,332
Other	—		—		17		17		4,997		5,014
Commercial real estate	—		—		4		4		4,957		4,961
Total commercial	34		—		49		83		38,224		38,307
Total consumer and commercial	$	2,303	$	611	$	455	$	3,369	$	124,851	$	128,220
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

(a)

Excludes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.

Schedule of Financing Receivables, Non Accrual Status

The following table presents the gross carrying value of our finance receivables and loans on nonaccrual status.

December 31, ($ in millions)	2019		2018
Consumer automotive	$	762	$	664
Consumer mortgage
Mortgage Finance	17		9
Mortgage — Legacy	40		70
Total consumer mortgage	57		79
Consumer other	2		—
Total consumer	821		743
Commercial
Commercial and industrial
Automotive	73		203
Other	138		142
Commercial real estate	4		4
Total commercial	215		349
Total consumer and commercial finance receivables and loans	$	1,036	$	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 for additional information.

	2019						2018
December 31, ($ in millions)	Performing		Nonperforming		Total		Performing		Nonperforming		Total
Consumer automotive	$	71,628	$	762	$	72,390	$	69,875	$	664	$	70,539
Consumer mortgage
Mortgage Finance	16,164		17		16,181		15,146		9		15,155
Mortgage — Legacy	1,101		40		1,141		1,476		70		1,546
Total consumer mortgage	17,265		57		17,322		16,622		79		16,701
Consumer other (a)	199		2		201		—		—		—
Total consumer	$	89,092	$	821	$	89,913	$	86,497	$	743	$	87,240

(a)

Excludes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.

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.

	2019						2018
December 31, ($ in millions)	Pass		Criticized (a)		Total		Pass		Criticized (a)		Total
Commercial and industrial
Automotive	$	25,235	$	3,097	$	28,332	$	30,799	$	2,873	$	33,672
Other	4,225		789		5,014		3,373		832		4,205
Commercial real estate	4,620		341		4,961		4,538		271		4,809
Total commercial	$	34,080	$	4,227	$	38,307	$	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.

December 31, ($ in millions)	Unpaid principal balance (a)		Gross carrying value		Impaired with no allowance		Impaired with an allowance		Allowance for impaired loans
2019
Consumer automotive	$	553	$	538	$	113	$	425	$	38
Consumer mortgage
Mortgage Finance	14		14		6		8		—
Mortgage — Legacy	199		194		64		130		18
Total consumer mortgage	213		208		70		138		18
Total consumer	766		746		183		563		56
Commercial
Commercial and industrial
Automotive	73		73		1		72		12
Other	170		138		73		65		21
Commercial real estate	4		4		4		—		—
Total commercial	247		215		78		137		33
Total consumer and commercial finance receivables and loans	$	1,013	$	961	$	261	$	700	$	89
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				2017
Year ended December 31, ($ in millions)	Average balance		Interest income		Average balance		Interest income		Average balance		Interest income
Consumer automotive	$	510	$	35	$	478	$	28	$	391	$	21
Consumer mortgage
Mortgage Finance	14		1		11		1		8		—
Mortgage — Legacy	206		9		218		10		234		10
Total consumer mortgage	220		10		229		11		242		10
Total consumer	730		45		707		39		633		31
Commercial
Commercial and industrial
Automotive	113		2		93		4		49		2
Other	121		—		84		—		69		9
Commercial real estate	5		—		5		1		5		—
Total commercial	239		2		182		5		123		11
Total consumer and commercial finance receivables and loans	$	969	$	47	$	889	$	44	$	756	$	42

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.

Year ended December 31, ($ in millions)	Number of loans	Pre-modification gross carrying value		Post-modification gross carrying value
2019
Consumer automotive	27,623	$	476	$	413
Consumer mortgage
Mortgage Finance	8	1		1
Mortgage — Legacy	61	8		8
Total consumer mortgage	69	9		9
Total consumer finance receivables and loans	27,692	$	485	$	422
2018
Consumer automotive	26,748	$	426	$	378
Consumer mortgage
Mortgage Finance	23	9		9
Mortgage — Legacy	204	30		29
Total consumer mortgage	227	39		38
Total consumer finance receivables and loans	26,975	$	465	$	416
2017
Consumer automotive	26,156	$	380	$	333
Consumer mortgage
Mortgage Finance	4	1		1
Mortgage — Legacy	122	21		21
Total consumer mortgage	126	22		22
Total consumer finance receivables and loans	26,282	$	402	$	355

Year ended December 31, ($ in millions)	Number of loans	Pre-modification gross carrying value		Post-modification gross carrying value
2019
Commercial and industrial
Automotive	7	$	46	$	46
Other	3	82		46
Total commercial finance receivables and loans	10	$	128	$	92
2018
Commercial and industrial
Automotive	3	$	4	$	4
Other	3	85		82
Total commercial finance receivables and loans	6	$	89	$	86
2017
Commercial and industrial
Automotive	4	$	16	$	15
Other	—	44		44
Commercial real estate	2	3		3
Total commercial finance receivables and loans	6	$	63	$	62

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 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.

Year ended December 31, ($ in millions)	Number of loans	Gross carrying value		Charge-off amount
2019
Consumer automotive	7,215	$	81	$	52
Total consumer finance receivables and loans	7,215	$	81	$	52
2018
Consumer automotive	9,711	$	111	$	73
Consumer mortgage
Mortgage — Legacy	2	—		—
Total consumer finance receivables and loans	9,713	$	111	$	73
2017
Consumer automotive	8,829	$	102	$	71
Consumer mortgage
Mortgage Finance	1	1		—
Mortgage — Legacy	2	—		—
Total consumer finance receivables and loans	8,832	$	103	$	71

Consumer concentration risk

The following table shows the percentage of consumer automotive and consumer mortgage finance receivables and loans by state concentration based on gross carrying value.

	2019 (a)				2018
December 31,	Consumer automotive		Consumer mortgage		Consumer automotive		Consumer mortgage
California	8.5	%	35.1	%	8.4	%	36.9	%
Texas	12.4		6.5		12.8		6.2
Florida	8.8		5.1		8.8		4.7
Pennsylvania	4.6		1.9		4.5		1.4
Illinois	4.1		2.6		4.1		3.0
Georgia	3.9		2.8		4.1		2.8
North Carolina	4.0		2.0		3.9		1.7
New York	3.1		3.0		3.1		2.4
Ohio	3.6		0.5		3.5		0.4
New Jersey	2.8		2.3		2.7		2.1
Other United States	44.2		38.2		44.1		38.4
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, 2019.

Commercial concentration risk

The commercial real estate portfolio consists of finance receivables and loans issued primarily to automotive dealers. The following table presents the percentage of total commercial real estate finance receivables and loans by state concentration based on gross carrying value.

December 31,	2019		2018
Texas	15.0	%	15.5	%
Florida	11.6		11.6
Michigan	8.2		6.8
California	7.2		8.3
New York	5.9		4.8
North Carolina	4.6		3.6
Georgia	3.5		4.0
New Jersey	2.9		3.1
South Carolina	2.8		3.4
Illinois	2.4		2.0
Other United States	35.9		36.9
Total commercial real estate finance receivables and loans	100.0	%	100.0	%

Commercial criticized risk exposure

The following table presents the percentage of total commercial criticized finance receivables and loans by industry concentration based on gross carrying value.

December 31,	2019		2018
Automotive	81.7	%	80.6	%
Services	5.4		5.0
Electronics	3.7		2.3
Other	9.2		12.1
Total commercial criticized finance receivables and loans	100.0	%	100.0	%