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Finance Receivables and Loans, Net
 12 Months Ended
Dec. 31, 2022
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)
20222021
Consumer automotive (a)$83,286 $78,252 
Consumer mortgage
Mortgage Finance (b)19,445 17,644 
Mortgage — Legacy (c)290 368 
Total consumer mortgage19,735 18,012 
Consumer other
Personal Lending (d)1,990 1,009 
Credit Card (e)1,599 953 
Total consumer other3,589 1,962 
Total consumer106,610 98,226 
Commercial
Commercial and industrial
Automotive14,595 12,229 
Other9,154 6,874 
Commercial real estate5,389 4,939 
Total commercial29,138 24,042 
Total finance receivables and loans (f) (g)$135,748 $122,268 
(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 $3 million and $5 million at December 31, 2022, and December 31, 2021, respectively, of which all have exited the interest-only period.
(c)Includes loans originated as interest-only mortgage loans of $17 million and $21 million at December 31, 2022, and December 31, 2021, respectively, of which all have exited the interest-only period.
(d)Includes $3 million and $7 million of finance receivables at December 31, 2022, and December 31, 2021, respectively, for which we have elected the fair value option.
(e)Refer to Note 2 for information regarding our acquisition of Ally Credit Card.
(f)Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $2.3 billion at both December 31, 2022, and December 31, 2021.
(g)Totals do not include accrued interest receivable, which was $707 million and $514 million at December 31, 2022, and December 31, 2021, respectively. Accrued interest receivable is included in other assets on our Consolidated Balance Sheet. Billed interest on our credit card loans is included within finance receivables and loans, net.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the years ended December 31, 2022, and 2021, respectively.
($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at January 1, 2022$2,769 $27 $221 $250 $3,267 
Charge-offs (b)(1,434)(3)(133)(58)(1,628)
Recoveries649 12 12 3 676 
Net charge-offs(785)9 (121)(55)(952)
Provision for credit losses (c)1,036 (8)326 42 1,396 
Other— (1)— 1 — 
Allowance at December 31, 2022$3,020 $27 $426 $238 $3,711 
(a)Excludes $7 million and $3 million of finance receivables and loans at January 1, 2022, and December 31, 2022, 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)Excludes $3 million of provision for credit losses related to our reserve for unfunded commitments. The liability related to the reserve for unfunded commitments is included in accrued expenses and other liabilities on our Consolidated Balance Sheet.
($ 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 $8 million and $7 million of finance receivables and loans at January 1, 2021, and December 31, 2021, 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 Ally Credit Card acquisition.
(d)Consumer other includes $12 million of allowance for credit losses recognized on PCD loans acquired in the Ally Credit Card acquisition. Refer to Note 2 for additional details.
The following table presents information about sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.
Year ended December 31, ($ in millions)
20222021
Consumer automotive$23 $— 
Consumer mortgage4 414 
Total sales and transfers$27 $414 
The following table presents information about purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.
Year ended December 31, ($ in millions)
20222021
Consumer automotive$4,092 $2,506 
Consumer mortgage2,781 3,853 
Consumer other (a)— 882 
Commercial18 6 
Total purchases of finance receivables and loans (b)$6,891 $7,247 
(a)During the year ended December 31, 2021, we obtained $882 million of finance receivables and loans from our acquisition of Ally Credit Card. For additional information on our acquisition, refer to Note 2.
(b)Excludes $12 million and $14 million of finance receivables and loans purchased during the years ended December 31, 2022, and December 31, 2021, respectively, for which we have elected the fair value option.
Nonaccrual Loans
The following tables present the amortized cost of our finance receivables and loans on nonaccrual status. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of December 31, 2022, and December 31, 2021.
December 31, 2022
($ in millions)Nonaccrual status at Jan. 1, 2022Nonaccrual statusNonaccrual with no allowance (a)
Consumer automotive$1,078 $1,187 $445 
Consumer mortgage
Mortgage Finance59 34 25 
Mortgage — Legacy26 15 14 
Total consumer mortgage85 49 39 
Consumer other
Personal Lending5 13 — 
Credit Card11 43 — 
Total consumer other16 56 — 
Total consumer1,179 1,292 484 
Commercial
Commercial and industrial
Automotive33 5 2 
Other221 157 33 
Commercial real estate3 — — 
Total commercial257 162 35 
Total finance receivables and loans$1,436 $1,454 $519 
(a)Represents a component of nonaccrual status at end of period.
December 31, 2021
($ 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.
We recorded interest income from cash payments associated with finance receivables and loans on nonaccrual status of $13 million for both the years ended December 31, 2022, and 2021.
Credit Quality Indicators
We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is generally based upon borrower payment activity, relative to the contractual terms of the loan.
The following tables present the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status and origination year.
Origination yearRevolving loans converted to term
December 31, 2022 ($ in millions)
202220212020201920182017 and priorRevolving loansTotal
Consumer automotive
Current$36,127 $22,102 $10,341 $6,451 $3,237 $1,890 $— $— $80,148 
30–59 days past due707 878 370 284 165 120 — — 2,524 
60–89 days past due207 324 135 99 55 38 — — 858 
90 or more days past due73 111 47 38 23 24 — — 316 
Total consumer automotive (a)37,114 23,415 10,893 6,872 3,480 2,072 — — 83,846 
Consumer mortgage
Mortgage Finance
Current2,292 10,893 1,946 815 577 2,805 — — 19,328 
30–59 days past due15 29 4 3 4 26 — — 81 
60–89 days past due2 4 — 1 1 3 — — 11 
90 or more days past due— 1 — 2 8 14 — — 25 
Total Mortgage Finance2,309 10,927 1,950 821 590 2,848 — — 19,445 
Mortgage — Legacy
Current— — — — — 62 191 18 271 
30–59 days past due— — — — — 4 1 — 5 
60–89 days past due— — — — — — — 1 1 
90 or more days past due— — — — — 8 3 2 13 
Total Mortgage — Legacy— — — — — 74 195 21 290 
Total consumer mortgage2,309 10,927 1,950 821 590 2,922 195 21 19,735 
Consumer other
Personal Lending
Current1,492 392 48 5 1 — — — 1,938 
30–59 days past due14 6 1 — — — — — 21 
60–89 days past due9 5 1 — — — — — 15 
90 or more days past due8 5 — — — — — — 13 
Total Personal Lending (b)1,523 408 50 5 1 — — — 1,987 
Credit Card
Current— — — — — — 1,518 — 1,518 
30–59 days past due— — — — — — 22 — 22 
60–89 days past due— — — — — — 18 — 18 
90 or more days past due— — — — — — 41 — 41 
Total Credit Card— — — — — — 1,599 — 1,599 
Total consumer other1,523 408 50 5 1 — 1,599 — 3,586 
Total consumer$40,946 $34,750 $12,893 $7,698 $4,071 $4,994 $1,794 $21 $107,167 
(a)Certain consumer automotive loans are included in fair value hedging relationships. The amortized cost excludes a liability of $560 million related to basis adjustments for loans in closed portfolios with active hedges under the portfolio layer method at December 31, 2022. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was dedesignated. Refer to Note 21 for additional information.
(b)Excludes $3 million of finance receivables at December 31, 2022, for which we have elected the fair value option.
Origination yearRevolving loans converted to term
December 31, 2021 ($ 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.
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, 2022 ($ in millions)
202220212020201920182017 and priorRevolving loansTotal
Commercial
Commercial and industrial
Automotive
Pass$640 $211 $132 $78 $28 $34 $12,327 $— $13,450 
Special mention23 47 — — 10 21 1,016 — 1,117 
Substandard— — — 1 — — 27 — 28 
Total automotive663 258 132 79 38 55 13,370 — 14,595 
Other
Pass594 469 607 419 54 133 5,344 89 7,709 
Special mention177 158 175 95 47 128 278 35 1,093 
Substandard— — 4 51 — 139 55 13 262 
Doubtful— — — 64 — 25 — — 89 
Loss— — — — — — 1 — 1 
Total other771 627 786 629 101 425 5,678 137 9,154 
Commercial real estate
Pass1,481 1,118 951 679 369 716 9 13 5,336 
Special mention— 32 2 19 — — — — 53 
Total commercial real estate1,481 1,150 953 698 369 716 9 13 5,389 
Total commercial$2,915 $2,035 $1,871 $1,406 $508 $1,196 $19,057 $150 $29,138 
Origination yearRevolving loans converted to term
December 31, 2021 ($ in millions)
202120202019201820172016 and priorRevolving loansTotal
Commercial
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 $24,042 
The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.
($ in millions)30–59 days past due60–89 days past due90 days or more past dueTotal past dueCurrentTotal finance receivables and loans
December 31, 2022
Commercial
Commercial and industrial
Automotive$— $— $— $— $14,595 $14,595 
Other— 1 2 3 9,151 9,154 
Commercial real estate— — — — 5,389 5,389 
Total commercial$— $1 $2 $3 $29,135 $29,138 
December 31, 2021
Commercial
Commercial and industrial
Automotive$— $— $— $— $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 
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 at both December 31, 2022, and 2021, and $2.2 billion at December 31, 2020.
Total commitments to lend additional funds to borrowers whose terms had been modified in a TDR were $61 million, $18 million, and $14 million at December 31, 2022, 2021, and 2020, respectively. Refer to Note 1 for additional information.
The following tables present information related to finance receivables and loans recorded at amortized cost modified in connection with a TDR during the period.
Year ended December 31, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basis
2022
Consumer automotive49,773 $831 $805 
Consumer mortgage
Mortgage Finance18 12 12 
Mortgage — Legacy13 1 1 
Total consumer mortgage31 13 13 
Consumer other
Credit Card2,853 5 5 
Total consumer other2,853 5 5 
Total consumer52,657 849 823 
Commercial
Commercial and industrial
Other5 461 466 
Total commercial5 461 466 
Total finance receivables and loans52,662 $1,310 $1,289 
Year ended December 31, ($ 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
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 finance receivables and loans114,718 $2,063 $1,965 
The following table presents information about finance receivables and loans recorded at amortized cost that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy (refer to Note 1 for additional information) except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
Year ended December 31, ($ in millions)
Number of loansAmortized costCharge-off amount
2022
Consumer automotive9,227 $143 $64 
Consumer mortgage
Mortgage Finance4 2 — 
Total consumer mortgage4 2 — 
Consumer other
Credit Card457 — — 
Total consumer other457 — — 
Total consumer9,688 $145 $64 
Commercial
Commercial and industrial
Other1 1 31 
Total commercial1 1 31 
Total finance receivables and loans9,689 $146 $95 
2021
Consumer automotive9,295 $119 $61 
Consumer mortgage
Mortgage Finance1 — — 
Mortgage — Legacy4 — — 
Total consumer mortgage5 — — 
Total consumer finance receivables and loans
9,300 119 61 
Total finance receivables and loans9,300 $119 $61 
2020
Consumer automotive10,070 $104 $71 
Consumer mortgage
Mortgage Finance1 — — 
Mortgage — Legacy1 — — 
Total consumer mortgage2 — — 
Total consumer finance receivables and loans
10,072 104 71 
Total finance receivables and loans10,072 $104 $71 
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 26.5% and 26.4% of our total consumer finance receivables and loans at December 31, 2022, and December 31, 2021, respectively.
The following table shows the percentage of consumer automotive, consumer mortgage, and consumer other finance receivables and loans by state concentration based on amortized cost.
2022 (a)2021
December 31,Consumer automotiveConsumer mortgageConsumer other (b)Consumer automotiveConsumer mortgageConsumer other (b)
California8.7 %38.8 %8.4 %8.7 %39.6 %9.4 %
Texas13.6 7.3 7.7 13.0 7.3 7.4 
Florida9.5 6.6 7.8 9.3 6.3 8.4 
Pennsylvania4.5 2.1 4.6 4.4 2.3 4.5 
Georgia4.1 2.9 3.5 4.0 3.0 3.4 
North Carolina4.1 1.9 4.6 4.1 1.6 3.4 
Illinois3.5 2.8 4.3 3.7 3.1 4.4 
New York3.6 1.9 4.8 3.3 2.1 5.5 
New Jersey3.2 2.4 3.6 3.0 2.5 3.4 
Ohio3.4 0.4 3.6 3.4 0.5 3.9 
Other United States41.8 32.9 47.1 43.1 31.7 46.3 
Total consumer loans100.0 %100.0 %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, 2022.
(b)Excludes $3 million and $7 million of finance receivables at December 31, 2022, and December 31, 2021, respectively, for which we have elected the fair value option.
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 31,20222021
Florida17.9 %16.4 %
Texas14.9 13.9 
California8.4 8.3 
New York6.3 3.8 
North Carolina5.3 5.8 
Michigan4.2 5.8 
Ohio4.2 3.4 
Georgia3.1 3.3 
Utah2.9 3.0 
Illinois2.7 2.9 
Other United States30.1 33.4 
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 31,20222021
Industry
Automotive53.4 %50.8 %
Chemicals14.7 14.4 
Electronics11.9 3.6 
Other20.0 31.2 
Total commercial criticized finance receivables and loans100.0 %100.0 %