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Fair Value (Tables)
 3 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis
The following tables display the assets and liabilities measured at fair value on a recurring basis including financial instruments elected for the fair value option. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The tables below display the hedges separately from the hedged items; therefore, they do not directly display the impact of our risk-management activities.
Recurring fair value measurements
March 31, 2022 ($ in millions)
Level 1Level 2Level 3Total
Assets
Investment securities
Equity securities (a)$868 $— $1 $869 
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies
2,387 — — 2,387 
U.S. States and political subdivisions
— 831 11 842 
Foreign government28 125 — 153 
Agency mortgage-backed residential
— 18,934 — 18,934 
Mortgage-backed residential
— 4,839 — 4,839 
Agency mortgage-backed commercial— 3,950 — 3,950 
Asset-backed— 483 — 483 
Corporate debt
— 1,797 — 1,797 
Total available-for-sale securities2,415 30,959 11 33,385 
Mortgage loans held-for-sale (b)
— 95 — 95 
Finance receivables and loans, net
Consumer other (b)— — 7 7 
Other assets
Derivative contracts in a receivable position
Interest rate— 2 3 5 
Equity contracts3 — — 3 
Total derivative contracts in a receivable position3 2 3 8 
Total assets$3,286 $31,056 $22 $34,364 
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate$— $— $7 $7 
Foreign currency— 5 — 5 
Credit contracts— — 57 57 
Equity contracts4 — — 4 
Total derivative contracts in a payable position
4 5 64 73 
Total liabilities$4 $5 $64 $73 
(a)Our direct investment in any one industry did not exceed 14%.
(b)Carried at fair value due to fair value option elections.
Recurring fair value measurements
December 31, 2021 ($ in millions)
Level 1Level 2Level 3Total
Assets
Investment securities
Equity securities (a)$1,093 $— $9 $1,102 
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies
2,155 — — 2,155 
U.S. States and political subdivisions
— 855 9 864 
Foreign government19 138 — 157 
Agency mortgage-backed residential
— 19,039 — 19,039 
Mortgage-backed residential
— 4,425 — 4,425 
Agency mortgage-backed commercial— 4,526 — 4,526 
Asset-backed— 534 — 534 
Corporate debt
— 1,887 — 1,887 
Total available-for-sale securities2,174 31,404 9 33,587 
Mortgage loans held-for-sale (b)
— 80 — 80 
Finance receivables and loans, net
Consumer other (b)— — 7 7 
Other assets
Derivative contracts in a receivable position
Interest rate— 1 5 6 
Equity contracts1 — — 1 
Total derivative contracts in a receivable position1 1 5 7 
Total assets$3,268 $31,485 $30 $34,783 
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate$— $— $2 $2 
Foreign currency— 3 — 3 
Credit contracts— — 56 56 
Equity contracts1 — — 1 
Total derivative contracts in a payable position
1 3 58 62 
Total liabilities$1 $3 $58 $62 
(a)Our direct investment in any one industry did not exceed 8%.
(b)Carried at fair value due to fair value option elections.
Fair Value, Assets Measured on a Recurring Basis, Unobservable Input Reconciliation
The following tables present the reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The Level 3 items presented below may be hedged by derivatives and other financial instruments that are classified as Level 1 or Level 2. Thus, the following tables do not fully reflect the impact of our risk-management activities.
Equity securities (a)Available-for-sale securitiesMortgage loans held-for-sale (b) (c)Finance receivables and loans, net (b) (d)
($ in millions)20222021202220212022202120222021
Assets
Fair value at January 1,$9 $7 $9 $7 $— $91 $7 $8 
Net realized/unrealized gains (losses)
Included in earnings1 4 — — — 28 (1)2 
Included in OCI— — — — — — — — 
Purchases— — 2 — — 1,039 4 4 
Sales(9)— — — — (1,012)— — 
Issuances— — — — — — — — 
Settlements— — — — — — (3)(6)
Transfers into Level 3— — — — — — — — 
Transfers out of Level 3— — — — — — — — 
Fair value at March 31,$1 $11 $11 $7 $— $146 $7 $8 
Net unrealized gains (losses) still held at March 31,
Included in earnings$— $4 $— $— $— $1 $(1)$— 
Included in OCI— — — — — — — — 
(a)Net realized/unrealized gains (losses) are reported as other gain on investments, net, in the Condensed Consolidated Statement of Comprehensive Income.
(b)Carried at fair value due to fair value option elections.
(c)Net realized/unrealized gains (losses) are reported as gain on mortgage and automotive loans, net, in the Condensed Consolidated Statement of Comprehensive Income.
(d)Net realized/unrealized gains are reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.
Derivative liabilities, net of derivative assets (a)
($ in millions)20222021
Liabilities
Fair value at January 1,$53 $12 
Net realized/unrealized losses (gains)
Included in earnings8 15 
Included in OCI— — 
Purchases— — 
Sales— — 
Issuances— 1 
Settlements— — 
Transfers into Level 3— — 
Transfers out of Level 3— — 
Fair value at March 31,$61 $28 
Net unrealized losses (gains) still held at March 31,
Included in earnings$5 $15 
Included in OCI— — 
(a)Net realized/unrealized losses are reported as gain on mortgage and automotive loans, net, and other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income.
Fair Value Measurements - Nonrecurring Basis
The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at March 31, 2022, and December 31, 2021, respectively. The amounts are generally as of the end of each period presented, which approximate the fair value measurements that occurred during each period.
Nonrecurring fair value measurements
Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments
Total gain (loss) included in earnings
March 31, 2022 ($ in millions)
Level 1
Level 2
Level 3
Total
Assets
Loans held-for-sale, net$— $— $376 $376 $— n/m(a)
Commercial finance receivables and loans, net (b)
Automotive
— — 1 1 — n/m(a)
Other
— — 87 87 (85)n/m(a)
Total commercial finance receivables and loans, net
— — 88 88 (85)n/m(a)
Other assets
Nonmarketable equity investments— — 13 13 (2)n/m(a)
Repossessed and foreclosed assets (c)— — 4 4 — n/m(a)
Total assets
$— $— $481 $481 $(87)n/m
n/m = not meaningful
(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative impairment to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation reserve, loan loss allowance, or cumulative adjustment.
(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.
(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
Nonrecurring fair value measurementsLower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustmentsTotal gain (loss) included in earnings
December 31, 2021 ($ in millions)
Level 1Level 2Level 3Total
Assets
Loans held-for-sale, net$— $— $468 $468 $— n/m(a)
Commercial finance receivables and loans, net (b)
Automotive— — 4 4 — n/m(a)
Other— — 112 112 (65)n/m(a)
Total commercial finance receivables and loans, net— — 116 116 (65)n/m(a)
Other assets
Nonmarketable equity investments— — 7 7 (5)n/m(a)
Repossessed and foreclosed assets (c)— — 4 4 — n/m(a)
Total assets$— $— $595 $595 $(70)n/m
n/m = not meaningful
(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative impairment to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation reserve, loan loss allowance, or cumulative adjustment.
(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.
(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
Fair Value, by Balance Sheet Grouping
The following table presents the carrying and estimated fair value of financial instruments, except for those recorded at fair value on a recurring basis presented in the previous section of this note titled Recurring Fair Value. When possible, we use quoted market prices to determine fair value. Where quoted market prices are not available, the fair value is internally derived based on appropriate valuation methodologies with respect to the amount and timing of future cash flows and estimated discount rates. However, considerable judgment is required in interpreting current market data to develop the market assumptions and inputs necessary to estimate fair value. As such, the actual amount received to sell an asset or the amount paid to settle a liability could differ from our estimates. Fair value information presented herein was based on information available at March 31, 2022, and December 31, 2021.
Estimated fair value
($ in millions)
Carrying value
Level 1
Level 2
Level 3
Total
March 31, 2022
Financial assets
Held-to-maturity securities
$1,159 $— $1,106 $— $1,106 
Loans held-for-sale, net
376 — — 376 376 
Finance receivables and loans, net
122,057 — — 126,765 126,765 
FHLB/FRB stock (a)
856 — 856 — 856 
Financial liabilities
Deposit liabilities
$37,889 $— $— $37,793 $37,793 
Short-term borrowings
3,950 — — 3,950 3,950 
Long-term debt
15,885 — 10,991 6,514 17,505 
December 31, 2021
Financial assets
Held-to-maturity securities$1,170 $— $1,204 $— $1,204 
Loans held-for-sale, net469 — — 469 469 
Finance receivables and loans, net118,994 — — 126,044 126,044 
FHLB/FRB stock (a)738 — 738 — 738 
Financial liabilities
Deposit liabilities$40,953 $— $— $41,164 $41,164 
Long-term debt17,029 — 12,637 6,892 19,529 
(a)Included in other assets on our Condensed Consolidated Balance Sheet.