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Finance Receivables and Loans, Net (Tables)
 9 Months Ended
Sep. 30, 2020
Financing Receivable, Credit Quality Indicator [Line Items]  
Schedule of Accounts, Notes, Loans and Financing Receivable
The composition of finance receivables and loans reported at amortized cost basis was as follows.
($ in millions)September 30, 2020December 31, 2019
Consumer automotive (a)$73,761 $72,390 
Consumer mortgage
Mortgage Finance (b)15,168 16,181 
Mortgage — Legacy (c)904 1,141 
Total consumer mortgage16,072 17,322 
Consumer other (d)327 212 
Total consumer90,160 89,924 
Commercial
Commercial and industrial
Automotive17,886 28,332 
Other5,131 5,014 
Commercial real estate4,851 4,961 
Total commercial27,868 38,307 
Total finance receivables and loans (e) (f)$118,028 $128,231 
(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 $8 million and $11 million at September 30, 2020, and December 31, 2019, respectively. All of these loans have exited the interest-only period.
(c)Includes loans originated as interest-only mortgage loans of $156 million and $212 million at September 30, 2020, and December 31, 2019, respectively, of which 99% have exited the interest-only period.
(d)Includes $8 million and $11 million of finance receivables at September 30, 2020, and December 31, 2019, respectively, 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 $2.1 billion at September 30, 2020.
(f)Totals do not include accrued interest receivable, which was $711 million and $488 million at September 30, 2020, and December 31, 2019, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
Allowance for Credit Losses on Financing Receivables
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three and nine months ended September 30, 2020, and includes the cumulative effect of adopting ASU 2016-13.
Three months ended September 30, 2020 ($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at July 1, 2020$2,963 $42 $49 $300 $3,354 
Charge-offs (b)(269)(4)(2)(4)(279)
Recoveries152 5 — — 157 
Net charge-offs(117)1 (2)(4)(122)
Provision for credit losses134 (3)20 (4)147 
Other2 (1)— (1)— 
Allowance at September 30, 2020$2,982 $39 $67 $291 $3,379 
(a)Excludes $8 million of finance receivables at September 30, 2020, for which we have elected the fair value option.
(b)Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.
Nine months ended September 30, 2020 ($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at December 31, 2019$1,075 $46 $9 $133 $1,263 
Cumulative effect of the adoption of Accounting Standards Update 2016-13
1,334 (6)16 2 1,346 
Allowance at January 1, 20202,409 40 25 135 2,609 
Charge-offs (b)(887)(9)(11)(47)(954)
Recoveries371 14 1 2 388 
Net charge-offs(516)5 (10)(45)(566)
Provision for credit losses1,088 (5)51 203 1,337 
Other1 (1)1 (2)(1)
Allowance at September 30, 2020$2,982 $39 $67 $291 $3,379 
(a)Excludes $8 million and $11 million of finance receivables at September 30, 2020, and December 31, 2019, respectively, for which we have elected the fair value option.
(b)Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 for more information regarding our charge-off policies.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three and nine months ended September 30, 2019, prior to the adoption of ASU 2016-13, as defined by the previous accounting guidance in effect at that time.
Three months ended September 30, 2019 ($ in millions)
Consumer automotiveConsumer mortgageCommercialTotal
Allowance at July 1, 2019$1,078 $49 $155 $1,282 
Charge-offs (a)(374)(3)(16)(393)
Recoveries121 5 — 126 
Net charge-offs(253)2 (16)(267)
Provision for loan losses264 (5)4 263 
Other1 (2)— (1)
Allowance at September 30, 2019$1,090 $44 $143 $1,277 
(a)Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K for more information regarding our charge-off policies.
Nine months ended September 30, 2019 ($ in millions)
Consumer automotiveConsumer mortgageCommercialTotal
Allowance at January 1, 2019$1,048 $53 $141 $1,242 
Charge-offs (a)(1,027)(11)(33)(1,071)
Recoveries368 17 — 385 
Net charge-offs(659)6 (33)(686)
Provision for credit losses701 (13)34 722 
Other— (2)1 (1)
Allowance at September 30, 2019$1,090 $44 $143 $1,277 
Allowance for loan losses at September 30, 2019
Individually evaluated for impairment$37 $18 $32 $87 
Collectively evaluated for impairment1,053 26 111 1,190 
Finance receivables and loans at gross carrying value
Ending balance$73,071 $17,010 $38,528 $128,609 
Individually evaluated for impairment514 213 179 906 
Collectively evaluated for impairment72,557 16,797 38,349 127,703 
(a)Represents the amount of the amortized cost basis directly written off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the amortized cost basis of a loan and the fair value of the collateral, less costs to sell. Refer to Note 1 to the Consolidated Financial Statements in our 2019 Annual Report on Form 10-K for more information regarding our charge-off policies.
Schedule Of Sales Of Financing Receivables And Loans
The following table presents information about significant sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.
Three months ended September 30,Nine months ended September 30,
($ in millions)2020201920202019
Consumer automotive$— $— $— $20 
Consumer mortgage128 940 128 940 
Total sales and transfers (a)$128 $940 $128 $960 
(a)During the nine months ended September 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 were transferred to held-for-sale during 2018, and transferred $79 million of finance receivables from held-for-sale to held-for-investment, both relating to equipment finance receivables from our commercial automotive business.
Schedule of Purchases of Financing Receivables and Loans
The following table presents information about significant purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.
Three months ended September 30,Nine months ended September 30,
($ in millions)2020201920202019
Consumer automotive$925 $92 $1,920 $409 
Consumer mortgage659 811 3,013 2,724 
Commercial3 13 4 16 
Total purchases of finance receivables and loans$1,587 $916 $4,937 $3,149 
Schedule of Financing Receivables, Non Accrual Status The following table presents the amortized cost of our finance receivables and loans on nonaccrual status as of the beginning or end of the three months and nine months ended September 30, 2020. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of September 30, 2020, and December 31, 2019.
September 30, 2020
($ in millions)Nonaccrual status at Jan. 1, 2020Nonaccrual status at July 1, 2020Nonaccrual statusNonaccrual with no allowance (a)
Consumer automotive$762 $1,250 $1,263 $627 
Consumer mortgage
Mortgage Finance17 27 43 8 
Mortgage — Legacy40 36 36 28 
Total consumer mortgage57 63 79 36 
Consumer other2 1 1 — 
Total consumer821 1,314 1,343 663 
Commercial
Commercial and industrial
Automotive73 80 30 10 
Other138 132 114 42 
Commercial real estate4 6 6 5 
Total commercial215 218 150 57 
Total consumer and commercial finance receivables and loans$1,036 $1,532 $1,493 $720 
(a)Represents a component of nonaccrual status at end of period.
Impaired Financing Receivables
The following table presents information about our impaired finance receivables and loans at December 31, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.
December 31, 2019 ($ in millions)
Unpaid principal balance (a)Gross carrying valueImpaired with no allowanceImpaired with an allowanceAllowance for impaired loans
Consumer automotive$553 $538 $113 $425 $38 
Consumer mortgage
Mortgage Finance14 14 6 8 — 
Mortgage — Legacy199 194 64 130 18 
Total consumer mortgage213 208 70 138 18 
Total consumer766 746 183 563 56 
Commercial
Commercial and industrial
Automotive73 73 1 72 12 
Other170 138 73 65 21 
Commercial real estate4 4 4 — — 
Total commercial247 215 78 137 33 
Total consumer and commercial finance receivables and loans
$1,013 $961 $261 $700 $89 
(a)Adjusted for charge-offs.
Schedule of Average Balance And Interest Income Of Impaired Finance Receivables
The following table presents average balance and interest income for our impaired finance receivables and loans for the three months and nine months ended September 30, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.
Three months ended September 30, 2019Nine months ended September 30, 2019
($ in millions)Average balanceInterest incomeAverage balanceInterest income
Consumer automotive$505 $9 $502 $26 
Consumer mortgage
Mortgage Finance14 — 15 — 
Mortgage — Legacy203 2 208 7 
Total consumer mortgage217 2 223 7 
Total consumer722 11 725 33 
Commercial
Commercial and industrial
Automotive76 — 124 1 
Other115 — 118 — 
Commercial real estate5 — 5 — 
Total commercial196 — 247 1 
Total consumer and commercial finance receivables and loans
$918 $11 $972 $34 
Credit Quality Indicators - Macroeconomic Impacts
In response to the impacts caused by the COVID-19 pandemic, we have taken significant actions to support our customers with industry-leading relief programs, while prudently managing our credit risk exposure.
In our consumer automotive loan portfolio, existing customers had the option to elect to defer their payments for up to 120 days without late fees being incurred, but with finance charges continuing to accrue. This program was made available to all consumer automotive loan customers beginning March 18, 2020. The length of the deferral offering was reduced incrementally, until on June 21, 2020, we eliminated the offering and migrated back to our standard extension process. Approximately 1.2 million consumer automotive loan customers enrolled in the program, of which 99% had reached their scheduled expiration as of September 30, 2020. For these deferrals that had exited the program and remain outstanding, the following provides certain credit quality indicators as of September 30, 2020.
•92% were current;
•8% were 30+ days past due.
In our mortgage-lending business, existing customers experiencing financial hardship due to an interruption of income related to the COVID-19 pandemic were afforded the opportunity to defer their loan payments for up to 120 days, with an option for an additional 60 days, without late fees being incurred but with interest continuing to accrue. This program was made available to mortgage-lending customers from March 18, 2020, through July 31, 2020. Approximately 2,350 of our mortgage-lending customers enrolled in the program, which represented 7% of our total held-for-investment portfolio as of September 30, 2020. Of these customers, 40% had cancelled their deferrals ahead of schedule or paid their balances in full, 30% remain in active forbearance, and 30% had reached their scheduled expiration and had exited the pandemic-relief program as of September 30, 2020. For accounts that had reached the scheduled expiration of their forbearance program and remain outstanding, the following provides certain credit quality indicators as of September 30, 2020.
•87% of the loans were current, in a repayment plan, or subject to a modification;
•13% were past due or undergoing other loss mitigation efforts.
In our personal-lending business, existing customers experiencing financial hardship due to the COVID-19 pandemic had the opportunity to elect to defer their loan payments for up to 120 days without late fees being incurred or finance charges continuing to accrue. In addition to this program, we temporarily suspended late fees for all customers with current accounts. The loan-deferral program was made available to personal-lending customers from March 23, 2020, through June 30, 2020. Approximately 6,300 of our personal-lending customers were enrolled in the program, and 84% of these enrolled customers were current on their loans at the time of enrollment. As of September 30, 2020, 84% of the enrolled customers had exited the program, and the remaining accounts in active forbearance represent less than 1% of the total portfolio.
Schedule Of Pass And Criticized Credit Quality Indicators Of Finance Receivables
The following table presents historical credit quality indicators for our commercial finance receivables and loans at December 31, 2019, prior to the date of adoption of the amendments to the credit loss standard and as defined by the previous accounting guidance in effect at that time.
December 31, 2019
($ in millions)PassCriticized (a)Total
Commercial and industrial
Automotive$25,235 $3,097 $28,332 
Other4,225 789 5,014 
Commercial real estate4,620 341 4,961 
Total commercial$34,080 $4,227 $38,307 
(a)Includes loans classified as special mention, substandard, or doubtful. These classifications are based on regulatory definitions and generally represent loans within our portfolio that have a higher default risk or have already defaulted.
Troubled Debt Restructurings on Financing Receivables
The following tables present information related to finance receivables and loans recorded at amortized cost modified in connection with a TDR during the period.
20202019
Three months ended September 30, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basisNumber of loansPre-modification amortized cost basisPost-modification amortized cost basis
Consumer automotive30,794 $540 $525 7,197 $124 $107 
Consumer mortgage
Mortgage Finance2 — — 1 — — 
Mortgage — Legacy (a)12 1 1 8 1 1 
Total consumer mortgage14 1 1 9 1 1 
Total consumer30,808 541 526 7,206 125 108 
Commercial
Commercial and industrial
Automotive2 7 7 1 5 5 
Other2 58 54 1 25 25 
Total commercial4 65 61 2 30 30 
Total consumer and commercial finance receivables and loans
30,812 $606 $587 7,208 $155 $138 
(a)Includes 3 loans modified as a result of entering into a COVID-19 deferral program with both a pre-modification and post-modification amount of $1 million at September 30, 2020.
20202019
Nine months ended September 30, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basisNumber of loansPre-modification amortized cost basisPost-modification amortized cost basis
Consumer automotive (a)74,887 $1,203 $1,140 20,222 $349 $303 
Consumer mortgage
Mortgage Finance (b)31 15 15 4 — — 
Mortgage — Legacy (c)67 8 8 46 7 7 
Total consumer mortgage98 23 23 50 7 7 
Total consumer74,985 1,226 1,163 20,272 356 310 
Commercial
Commercial and industrial
Automotive5 45 40 7 46 46 
Other3 81 61 2 47 31 
Total commercial8 126 101 9 93 77 
Total consumer and commercial finance receivables and loans
74,993 $1,352 $1,264 20,281 $449 $387 
(a)Includes 26,132 loans modified as a result of entering into a COVID-19 deferral program with both a pre-modification and post-modification amount of $369 million at September 30, 2020.
(b)Includes 27 loans modified as a result of entering into a COVID-19 deferral program with both a pre-modification and post-modification amount of $14 million at September 30, 2020.
(c)Includes 38 loans modified as a result of entering into a COVID-19 deferral program with both a pre-modification and post-modification amount of $5 million at September 30, 2020.
Finance receivables and loans redefaulted during the period
The following tables present information about finance receivables and loans recorded at amortized cost that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy (refer to Note 1 for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
20202019
Three months ended September 30, ($ in millions)
Number of loansAmortized costCharge-off amountNumber of loansAmortized costCharge-off amount
Consumer automotive5,195 $52 $37 1,713 $18 $13 
Total consumer finance receivables and loans
5,195 $52 $37 1,713 $18 $13 
20202019
Nine months ended September 30, ($ in millions)
Number of loansAmortized costCharge-off amountNumber of loansAmortized costCharge-off amount
Consumer automotive7,478 $76 $54 5,674 $64 $41 
Total consumer finance receivables and loans
7,478 $76 $54 5,674 $64 $41 
Consumer portfolio segment  
Financing Receivable, Credit Quality Indicator [Line Items]  
Financing Receivable Credit Quality Indicators
The following table presents the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status at September 30, 2020, and origination year.
Origination yearRevolving loans converted to term
September 30, 2020 ($ in millions)
202020192018201720162015 and priorRevolving loansTotal
Consumer automotive
Current$21,216 $21,433 $13,802 $8,233 $4,433 $2,327 $— $— $71,444 
30–59 days past due156 435 366 261 171 106 — — 1,495 
60–89 days past due34 131 111 77 47 30 — — 430 
90 or more days past due15 102 105 78 54 38 — — 392 
Total consumer automotive21,421 22,101 14,384 8,649 4,705 2,501 — — 73,761 
Consumer mortgage
Mortgage Finance
Current2,811 2,758 2,014 2,609 1,141 3,629 — 3 14,965 
30–59 days past due56 29 18 14 7 33 — — 157 
60–89 days past due5 1 5 4 — 3 — — 18 
90 or more days past due— 1 5 6 3 13 — — 28 
Total Mortgage Finance2,872 2,789 2,042 2,633 1,151 3,678 — 3 15,168 
Mortgage — Legacy
Current— — — — — 498 265 99 862 
30–59 days past due— — — — — 9 2 — 11 
60–89 days past due— — — — — 5 — — 5 
90 or more days past due— — — — — 19 5 2 26 
Total Mortgage — Legacy— — — — — 531 272 101 904 
Total consumer mortgage2,872 2,789 2,042 2,633 1,151 4,209 272 104 16,072 
Consumer other
Current216 73 17 5 1 — — — 312 
30–59 days past due2 2 — — — — — — 4 
60–89 days past due1 1 — — — — — — 2 
90 or more days past due1 — — — — — — — 1 
Total consumer other (a)220 76 17 5 1 — — — 319 
Total consumer$24,513 $24,966 $16,443 $11,287 $5,857 $6,710 $272 $104 $90,152 
(a)Excludes $8 million of finance receivables at September 30, 2020, for which we have elected the fair value option.
Past Due Financing Receivables
The following table presents an analysis of our past-due finance receivables and loans recorded at amortized cost basis at December 31, 2019.
($ in millions)30–59 days past due60–89 days past due90 days or more past dueTotal past dueCurrentTotal finance receivables and loans
December 31, 2019
Consumer automotive$2,185 $590 $367 $3,142 $69,248 $72,390 
Consumer mortgage
Mortgage Finance56 11 9 76 16,105 16,181 
Mortgage — Legacy25 8 28 61 1,080 1,141 
Total consumer mortgage81 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 
(a)Excludes $11 million of finance receivables at December 31, 2019, for which we have elected the fair value option.
Commercial portfolio segment  
Financing Receivable, Credit Quality Indicator [Line Items]  
Financing Receivable Credit Quality Indicators The following table presents the amortized cost basis of our commercial finance receivables and loans by credit quality indicator based on risk rating at September 30, 2020, and origination year.
Origination yearRevolving loans converted to term
September 30, 2020 ($ in millions)
202020192018201720162015 and priorRevolving loansTotal
Commercial and industrial
Automotive
Pass$865 $250 $70 $98 $66 $43 $14,083 $— $15,475 
Special mention63 27 65 67 32 19 2,070 — 2,343 
Substandard2 2 — — — — 57 — 61 
Doubtful— — — 2 — — 5 — 7 
Total automotive930 279 135 167 98 62 16,215 — 17,886 
Other
Pass412 658 288 276 116 52 1,721 79 3,602 
Special mention27 170 271 205 93 129 322 48 1,265 
Substandard33 — — 70 — 125 25 11 264 
Doubtful— — — — — — — — — 
Total other472 828 559 551 209 306 2,068 138 5,131 
Commercial real estate
Pass789 937 798 582 656 569 — 3 4,334 
Special mention32 143 121 69 84 55 — — 504 
Substandard— — — 3 — 7 — — 10 
Doubtful— — — — 2 1 — — 3 
Total commercial real estate821 1,080 919 654 742 632 — 3 4,851 
Total commercial$2,223 $2,187 $1,613 $1,372 $1,049 $1,000 $18,283 $141 $27,868 
Past Due Financing Receivables
The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.
($ in millions)30–59 days past due60–89 days past due90 days or more past dueTotal past dueCurrentTotal finance receivables and loans
September 30, 2020
Commercial
Commercial and industrial
Automotive$— $— $7 $7 $17,879 $17,886 
Other— — — — 5,131 5,131 
Commercial real estate— — 3 3 4,848 4,851 
Total commercial$— $— $10 $10 $27,858 $27,868 
December 31, 2019
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