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Finance Receivables and Loans, Net
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Finance Receivables and Loans, Net Finance Receivables and Loans, Net
The composition of finance receivables and loans reported at amortized cost basis was as follows.
December 31, ($ in millions)
20212020
Consumer automotive (a)$78,252 $73,668 
Consumer mortgage
Mortgage Finance (b)17,644 14,632 
Mortgage — Legacy (c)368 495 
Total consumer mortgage18,012 15,127 
Consumer other
Personal Lending (d)1,009 407 
Credit Card (e)953 — 
Total consumer other1,962 407 
Total consumer98,226 89,202 
Commercial
Commercial and industrial
Automotive12,229 19,082 
Other6,874 5,242 
Commercial real estate4,939 5,008 
Total commercial24,042 29,332 
Total finance receivables and loans (f) (g)$122,268 $118,534 
(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 $5 million and $8 million at December 31, 2021, and December 31, 2020, respectively. All of these loans have exited the interest-only period.
(c)Includes loans originated as interest-only mortgage loans of $21 million and $30 million at December 31, 2021, and December 31, 2020, respectively, of which all have exited the interest-only period.
(d)Includes $7 million and $8 million of finance receivables at December 31, 2021, and December 31, 2020, respectively, for which we have elected the fair value option.
(e)Refer to Note 2 for information regarding our acquisition of Fair Square.
(f)Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $2.3 billion and $2.0 billion at December 31, 2021, and December 31, 2020, respectively.
(g)With the exception of credit card loans, totals do not include accrued interest receivable, which was $514 million and $587 million at December 31, 2021, and December 31, 2020, respectively. Accrued interest receivable is included in other assets on our Consolidated Balance Sheet. Billed interest on our credit card loans is included within finance receivables and loans, net.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the years ended December 31, 2021, and December 31, 2020.
($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at January 1, 2021$2,902 $33 $73 $275 $3,283 
Charge-offs (b)(923)(6)(30)(22)(981)
Recoveries686 13 2 11 712 
Net charge-offs(237)7 (28)(11)(269)
Provision for credit losses (c)104 (14)163 (12)241 
Other (d)— 1 13 (2)12 
Allowance at December 31, 2021$2,769 $27 $221 $250 $3,267 
(a)Excludes $7 million and $8 million of finance receivables at December 31, 2021, and December 31, 2020, respectively, for which we have elected the fair value option and incorporate no allowance for loan losses.
(b)Refer to Note 1 for information regarding our charge-off policies.
(c)Consumer other includes $97 million of provision for credit losses recorded to establish an initial reserve on loans acquired in the Fair Square acquisition.
(d)Consumer other includes $12 million of allowance for credit losses recognized on PCD loans acquired in the Fair Square acquisition. Refer to Note 2 for additional details.
($ 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)(1,244)(13)(15)(54)(1,326)
Recoveries542 16 1 3 562 
Net charge-offs(702)3 (14)(51)(764)
Provision for credit losses1,194 (10)62 193 1,439 
Other1 — — (2)(1)
Allowance at December 31, 2020$2,902 $33 $73 $275 $3,283 
(a)Excludes $8 million and $11 million of finance receivables at December 31, 2020, and December 31, 2019, respectively, for which we have elected the fair value option and incorporate no allowance for loan losses.
(b)Refer to Note 1 for information regarding our charge-off policies.
The following table presents information about significant sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.
Year ended December 31, ($ in millions)
20212020
Consumer mortgage$414 $464 
Total sales and transfers$414 $464 
The following table presents information about significant purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.
Year ended December 31, ($ in millions)
20212020
Consumer automotive$2,506 $2,355 
Consumer mortgage3,853 4,230 
Consumer other (a)882 — 
Commercial6 5 
Total purchases of finance receivables and loans (a)$7,247 $6,590 
(a)During the year ended December 31, 2021, we obtained $882 million of finance receivables and loans from our acquisition of Fair Square. For additional information on our acquisition, refer to Note 2.
Nonaccrual Loans
The following tables present the amortized cost of our finance receivables and loans on nonaccrual status. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of December 31, 2021, and December 31, 2020.
December 31, 2021
($ in millions)Nonaccrual status at Jan. 1, 2021Nonaccrual statusNonaccrual with no allowance (a)
Consumer automotive$1,256 $1,078 $423 
Consumer mortgage
Mortgage Finance67 59 39 
Mortgage — Legacy35 26 23 
Total consumer mortgage102 85 62 
Consumer other
Personal Lending3 5 — 
Credit Card— 11 — 
Total consumer other3 16 — 
Total consumer1,361 1,179 485 
Commercial
Commercial and industrial
Automotive40 33 32 
Other116 221 48 
Commercial real estate5 3 3 
Total commercial161 257 83 
Total finance receivables and loans$1,522 $1,436 $568 
(a)Represents a component of nonaccrual status at end of period.
December 31, 2020
($ in millions)Nonaccrual status at Jan. 1, 2020Nonaccrual statusNonaccrual with no allowance (a)
Consumer automotive$762 $1,256 $604 
Consumer mortgage
Mortgage Finance17 67 18 
Mortgage — Legacy40 35 28 
Total consumer mortgage57 102 46 
Consumer other2 3 — 
Total consumer821 1,361 650 
Commercial
Commercial and industrial
Automotive73 40 10 
Other138 116 41 
Commercial real estate4 5 5 
Total commercial215 161 56 
Total finance receivables and loans$1,036 $1,522 $706 
(a)Represents a component of nonaccrual status at end of period.
We recorded interest income from cash payments associated with finance receivables and loans in nonaccrual status of $13 million for the year ended December 31, 2021, compared to $8 million for the year ended December 31, 2020.
Credit Quality Indicators
We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is generally based upon borrower payment activity, relative to the contractual terms of the loan. During the year ended December 31, 2020, we offered broad-based deferral programs in response to the COVID-19 pandemic. In accordance with regulatory guidance, if borrowers were less than 30 days past due on their loans and enter into loan modifications offered as a result of COVID-19, their loans generally continued to be considered performing loans and continued to accrue interest during the period of the loan modification. For borrowers who were 30 days or more past due when entering into loan modifications offered as a result of COVID-19, we evaluated the loan modifications under our existing troubled debt restructuring framework, and where such a loan modification would result in a concession to a borrower experiencing financial difficulty, the loan was accounted for as a TDR and generally did not accrue interest.
The following tables present the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status at December 31, 2021, December 31, 2020, and origination year.
Origination yearRevolving loans converted to term
December 31, 2021 ($ in millions)
202120202019201820172016 and priorRevolving loansTotal
Consumer automotive
Current$35,222 $17,218 $11,512 $6,692 $3,403 $1,911 $— $— $75,958 
30–59 days past due424 353 334 226 139 101 — — 1,577 
60–89 days past due115 114 108 70 41 28 — — 476 
90 or more days past due41 51 56 40 27 26 — — 241 
Total consumer automotive35,802 17,736 12,010 7,028 3,610 2,066 — — 78,252 
Consumer mortgage
Mortgage Finance
Current10,169 2,212 977 744 1,041 2,363 — — 17,506 
30–59 days past due50 3 3 7 2 12 — — 77 
60–89 days past due8 — 1 — — 5 — — 14 
90 or more days past due— — 5 16 7 19 — — 47 
Total Mortgage Finance10,227 2,215 986 767 1,050 2,399 — — 17,644 
Mortgage — Legacy
Current— — — — — 79 238 23 340 
30–59 days past due— — — — — 2 1 — 3 
60–89 days past due— — — — — 1 — 1 2 
90 or more days past due— — — — — 15 5 3 23 
Total Mortgage — Legacy— — — — — 97 244 27 368 
Total consumer mortgage10,227 2,215 986 767 1,050 2,496 244 27 18,012 
Consumer other
Personal Lending
Current821 133 18 5 1 — — — 978 
30–59 days past due9 2 — — — — — — 11 
60–89 days past due6 1 1 — — — — — 8 
90 or more days past due4 1 — — — — — — 5 
Total Personal Lending (a)840 137 19 5 1 — — — 1,002 
Credit Card
Current— — — — — — 932 — 932 
30–59 days past due— — — — — — 6 — 6 
60–89 days past due— — — — — — 5 — 5 
90 or more days past due— — — — — — 10 — 10 
Total Credit Card— — — — — — 953 — 953 
Total consumer other840 137 19 5 1 — 953 — 1,955 
Total consumer$46,869 $20,088 $13,015 $7,800 $4,661 $4,562 $1,197 $27 $98,219 
(a)Excludes $7 million of finance receivables at December 31, 2021, for which we have elected the fair value option.
Origination yearRevolving loans converted to term
December 31, 2020 ($ in millions)
202020192018201720162015 and priorRevolving loansTotal
Consumer automotive
Current$27,255 $19,204 $12,129 $7,060 $3,678 $1,766 $— $— $71,092 
30–59 days past due281 466 376 264 174 97 — — 1,658 
60–89 days past due66 165 129 88 55 32 — — 535 
90 or more days past due32 108 96 71 46 30 — — 383 
Total consumer automotive27,634 19,943 12,730 7,483 3,953 1,925 — — 73,668 
Consumer mortgage
Mortgage Finance
Current3,432 2,410 1,744 2,254 1,177 3,492 — — 14,509 
30–59 days past due10 9 10 11 7 16 — — 63 
60–89 days past due1 1 3 2 1 3 — — 11 
90 or more days past due1 5 8 10 4 21 — — 49 
Total Mortgage Finance3,444 2,425 1,765 2,277 1,189 3,532 — — 14,632 
Mortgage — Legacy
Current— — — — — 121 303 36 460 
30–59 days past due— — — — — 4 2 — 6 
60–89 days past due— — — — — 2 — — 2 
90 or more days past due— — — — — 20 5 2 27 
Total Mortgage — Legacy— — — — — 147 310 38 495 
Total consumer mortgage3,444 2,425 1,765 2,277 1,189 3,679 310 38 15,127 
Consumer other
Current306 53 13 4 1 — — — 377 
30–59 days past due9 3 1 — — — — — 13 
60–89 days past due4 1 — 1 — — — — 6 
90 or more days past due2 1 — — — — — — 3 
Total consumer other (a)321 58 14 5 1 — — — 399 
Total consumer$31,399 $22,426 $14,509 $9,765 $5,143 $5,604 $310 $38 $89,194 
(a)Excludes $8 million of finance receivables at December 31, 2020, for which we have elected the fair value option.
We evaluate the credit quality of our commercial loan portfolio using regulatory risk ratings, which are based on relevant information about the borrower’s financial condition, including current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. We use the following definitions for risk rankings below Pass.
•Special mention — Loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.
•Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weakness that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
•Doubtful — Loans that have all the weaknesses inherent in those classified as substandard, with the additional characteristic that the weaknesses make collection or liquidation in full, based on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
The regulatory risk classification utilized is influenced by internal credit risk ratings, which are based on a variety of factors. A borrower’s internal credit risk rating is updated at least annually, and more frequently when a borrower’s credit profile changes, including when we become aware of potential credit deterioration. The following tables present the amortized cost basis of our commercial finance receivables and loans by credit quality indicator based on risk rating and origination year.
Origination yearRevolving loans converted to term
December 31, 2021 ($ in millions)
202120202019201820172016 and priorRevolving loansTotal
Commercial and industrial
Automotive
Pass$347 $190 $112 $49 $23 $56 $10,741 $— $11,518 
Special mention7 1 7 15 31 18 589 — 668 
Substandard— 1 — 1 — — 41 — 43 
Total automotive354 192 119 65 54 74 11,371 — 12,229 
Other
Pass739 448 374 86 99 68 4,032 83 5,929 
Special mention15 169 96 21 10 122 93 17 543 
Substandard— 22 95 — 140 83 13 23 376 
Doubtful— — — — — 26 — — 26 
Total other754 639 565 107 249 299 4,138 123 6,874 
Commercial real estate
Pass1,298 1,060 873 604 342 653 3 8 4,841 
Special mention13 5 29 7 18 19 — — 91 
Substandard— — — — — 7 — — 7 
Total commercial real estate1,311 1,065 902 611 360 679 3 8 4,939 
Total commercial$2,419 $1,896 $1,586 $783 $663 $1,052 $15,512 $131 $24,042 
Origination yearRevolving loans converted to term
December 31, 2020 ($ in millions)
202020192018201720162015 and priorRevolving loansTotal
Commercial and industrial
Automotive
Pass$869 $220 $58 $91 $76 $34 $15,433 $— $16,781 
Special mention48 23 59 52 9 18 2,013 — 2,222 
Substandard3 2 — — 1 — 72 — 78 
Doubtful— — — — — — 1 — 1 
Total automotive920 245 117 143 86 52 17,519 — 19,082 
Other
Pass536 622 244 210 81 69 2,142 76 3,980 
Special mention76 169 123 190 102 115 123 43 941 
Substandard33 26 — 108 — 77 21 20 285 
Doubtful— — — 6 — 27 2 1 36 
Total other645 817 367 514 183 288 2,288 140 5,242 
Commercial real estate
Pass1,108 928 799 580 651 512 — 2 4,580 
Special mention38 132 116 32 49 43 — — 410 
Substandard— — — 3 6 7 — — 16 
Doubtful— — — — 2 — — — 2 
Total commercial real estate1,146 1,060 915 615 708 562 — 2 5,008 
Total commercial$2,711 $2,122 $1,399 $1,272 $977 $902 $19,807 $142 $29,332 
The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.
($ in millions)30–59 days past due60–89 days past due90 days or more past dueTotal past dueCurrentTotal finance receivables and loans
December 31, 2021
Commercial
Commercial and industrial
Automotive$— $— $— $— $12,229 $12,229 
Other— — 1 1 6,873 6,874 
Commercial real estate— — — — 4,939 4,939 
Total commercial$— $— $1 $1 $24,041 $24,042 
December 31, 2020
Commercial
Commercial and industrial
Automotive$— $— $— $— $19,082 $19,082 
Other— — — — 5,242 5,242 
Commercial real estate— — 2 2 5,006 5,008 
Total commercial$— $— $2 $2 $29,330 $29,332 
Troubled Debt Restructurings
TDRs are loan modifications where concessions were granted to borrowers experiencing financial difficulties. For consumer automotive loans, we may offer several types of assistance to aid our customers, including payment extensions and rewrites of the loan terms. Additionally, for mortgage loans, as part of certain programs, we offer mortgage loan modifications to qualified borrowers. These programs are in place to provide support to our mortgage customers in financial distress, including principal forgiveness, maturity extensions,
delinquent interest capitalization, and changes to contractual interest rates. Total TDRs recorded at amortized cost were $2.4 billion, $2.2 billion, and $867 million at December 31, 2021, 2020, and 2019, respectively.
Our consumer automotive portfolio accounts for the majority of the year-over-year increase in TDR balances. TDRs in our consumer automotive portfolio increased as a result of the COVID-19 loan modification program offered to customers. Additionally, following the expiration of that program, we have continued to support impacted borrowers pursuant to our established risk management policies and practices.
Total commitments to lend additional funds to borrowers whose terms had been modified in a TDR were $18 million, $14 million, and $17 million December 31, 2021, 2020, and 2019, respectively. Refer to Note 1 for additional information.
The following tables present information related to finance receivables and loans recorded at amortized cost modified in connection with a TDR during the period.
Year ended December 31, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basis
2021
Consumer automotive77,991 $1,395 $1,371 
Consumer mortgage
Mortgage Finance38 22 22 
Mortgage — Legacy16 2 2 
Total consumer mortgage54 24 24 
Consumer other
Personal Lending— — — 
Credit Card113 — — 
Total consumer other113 — — 
Total consumer78,158 1,419 1,395 
Commercial
Commercial and industrial
Automotive1 2 2 
Other1 33 33 
Commercial real estate2 4 4 
Total commercial4 39 39 
Total finance receivables and loans78,162 $1,458 $1,434 
Year ended December 31, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basis
2020
Consumer automotive114,595 $1,908 $1,835 
Consumer mortgage
Mortgage Finance41 20 20 
Mortgage — Legacy74 9 9 
Total consumer mortgage115 29 29 
Total consumer114,710 1,937 1,864 
Commercial
Commercial and industrial
Automotive5 45 40 
Other3 81 61 
Total commercial8 126 101 
Total consumer and commercial finance receivables and loans114,718 $2,063 $1,965 
Year ended December 31, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basis
2019
Consumer automotive27,623 $476 $413 
Consumer mortgage
Mortgage Finance8 1 1 
Mortgage — Legacy61 8 8 
Total consumer mortgage69 9 9 
Total consumer27,692 485 422
Commercial
Commercial and industrial
Automotive7 46 46 
Other3 82 46 
Total commercial10 12892
Total consumer and commercial finance receivables and loans27,702 $613 $514 
The following table presents information about finance receivables and loans recorded at amortized cost that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy (refer to Note 1 for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
Year ended December 31, ($ in millions)
Number of loansAmortized costCharge-off amount
2021
Consumer automotive9,295 $119 $61 
Consumer mortgage
Mortgage Finance1——
Mortgage — Legacy4——
Total consumer mortgage5 — — 
Total consumer finance receivables and loans9,300 $119 $61 
2020
Consumer automotive10,070 $104 $71 
Consumer mortgage
Mortgage Finance1 — — 
Mortgage — Legacy1 — — 
Total consumer finance receivables and loans
10,072 $104 $71 
2019
Consumer automotive7,215 $81 $52 
Total consumer finance receivables and loans
7,215$81 $52 
Concentration Risk
Consumer
We monitor our consumer loan portfolio for concentration risk across the states in which we lend. The highest concentrations of consumer loans are in California and Texas, which represented an aggregate of 26.4% and 24.7% of our total consumer automotive and consumer mortgage outstanding finance receivables and loans at December 31, 2021, and December 31, 2020, respectively.
The following table shows the percentage of consumer automotive and consumer mortgage finance receivables and loans by state concentration based on amortized cost.
2021 (a)2020
December 31,Consumer automotiveConsumer mortgageConsumer automotiveConsumer mortgage
California8.7 %39.6 %8.6 %34.3 %
Texas13.0 7.3 12.5 8.0 
Florida9.3 6.3 8.8 5.5 
Pennsylvania4.4 2.3 4.5 2.0 
Georgia4.0 3.0 3.9 3.1 
North Carolina4.1 1.6 4.1 2.3 
Illinois3.7 3.1 4.0 3.0 
New York3.3 2.1 3.2 3.4 
New Jersey3.0 2.5 2.9 2.2 
Ohio3.4 0.5 3.5 0.5 
Other United States43.1 31.7 44.0 35.7 
Total consumer loans100.0 %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, 2021.
Commercial Real Estate
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 amortized cost.
December 31,20212020
Florida16.4 %13.3 %
Texas13.9 13.0 
California8.3 7.9 
Michigan5.8 7.7 
North Carolina5.8 5.5 
New York3.8 5.6 
Ohio3.4 1.3 
Georgia3.3 3.6 
Utah3.0 3.0 
Illinois2.9 2.8 
Other United States33.4 36.3 
Total commercial real estate finance receivables and loans100.0 %100.0 %
Commercial Criticized Exposure
Finance receivables and loans classified as special mention, substandard, or doubtful are reported as criticized. These classifications are based on regulatory definitions and generally represent finance receivables and loans within our portfolio that have a higher default risk or have already defaulted. These finance receivables and loans require additional monitoring and review including specific actions to mitigate our potential loss.
The following table presents the percentage of total commercial criticized finance receivables and loans by industry concentration based on amortized cost.
December 31,20212020
Industry
Automotive50.8 %67.7 %
Chemicals14.4 4.4 
Services11.0 5.8 
Other23.8 22.1 
Total commercial criticized finance receivables and loans100.0 %100.0 %