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Finance Receivables and Loans, Net
 3 Months Ended
Mar. 31, 2023
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.
($ in millions)March 31, 2023December 31, 2022
Consumer automotive (a)$83,640 $83,286 
Consumer mortgage
Mortgage Finance (b)19,189 19,445 
Mortgage — Legacy (c)272 290 
Total consumer mortgage19,461 19,735 
Consumer other
Personal Lending (d)2,074 1,990 
Credit Card1,640 1,599 
Total consumer other3,714 3,589 
Total consumer106,815 106,610 
Commercial
Commercial and industrial
Automotive14,905 14,595 
Other9,075 9,154 
Commercial real estate5,509 5,389 
Total commercial29,489 29,138 
Total finance receivables and loans (e) (f)$136,304 $135,748 
(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 $2 million and $3 million at March 31, 2023, and December 31, 2022, respectively, of which all have exited the interest-only period.
(c)Includes loans originated as interest-only mortgage loans of $16 million and $17 million at March 31, 2023, and December 31, 2022, respectively, of which all have exited the interest-only period.
(d)Includes $2 million and $3 million of finance receivables at March 31, 2023, and December 31, 2022, 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 $2.3 billion at both March 31, 2023, and December 31, 2022.
(f)Totals do not include accrued interest receivable, which was $726 million and $707 million at March 31, 2023, and December 31, 2022, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet. Billed interest on our credit card loans is included within finance receivables and loans, net.
The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three months ended March 31, 2023, and 2022, respectively.
Three months ended March 31, 2023 ($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at January 1, 2023$3,020 $27 $426 $238 $3,711 
Charge-offs (b)(536)(1)(64)— (601)
Recoveries185 2 5 — 192 
Net charge-offs(351)1 (59)— (409)
Provision for credit losses (c)353 (4)88 12 449 
Other— (1)— 1 — 
Allowance at March 31, 2023$3,022 $23 $455 $251 $3,751 
(a)Excludes $3 million and $2 million of finance receivables and loans at January 1, 2023, and March 31, 2023, respectively, for which we have elected the fair value option and incorporate no allowance for loan losses.
(b)Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for information regarding our charge-off policies.
(c)Excludes $3 million of benefit for credit losses related to our reserve for unfunded commitments. The liability related to the reserve for unfunded commitments is included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheet.
Three months ended March 31, 2022 ($ in millions)
Consumer automotiveConsumer mortgageConsumer other (a)CommercialTotal
Allowance at January 1, 2022$2,769 $27 $221 $250 $3,267 
Charge-offs (b)(276)(1)(24)— (301)
Recoveries163 3 1 1 168 
Net charge-offs(113)2 (23)1 (133)
Provision for credit losses107 (3)59 4 167 
Other— — 1 (1)— 
Allowance at March 31, 2022$2,763 $26 $258 $254 $3,301 
(a)Excludes $7 million of finance receivables and loans at both January 1, 2022, and March 31, 2022, for which we have elected the fair value option and incorporate no allowance for loan losses.
(b)Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for information regarding our charge-off policies.
The following table presents sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.
Three months ended March 31,
($ in millions)20232022
Consumer mortgage$1 $— 
Total sales and transfers$1 $— 
The following table presents purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.
Three months ended March 31,
($ in millions)20232022
Consumer automotive$758 $493 
Consumer mortgage2 825 
Commercial7 — 
Total purchases of finance receivables and loans (a)$767 $1,318 
(a)Excludes $4 million of finance receivables and loans purchased during the three months ended March 31, 2022, for which we have elected the fair value option.
Nonaccrual Loans
The following tables present the amortized cost of our finance receivables and loans on nonaccrual status. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of March 31, 2023, and December 31, 2022. Refer to Note 1 for additional information on our accounting policy for finance receivables and loans on nonaccrual status.
March 31, 2023December 31, 2022
($ in millions)Nonaccrual status at Jan. 1, 2023Nonaccrual statusNonaccrual with no allowance (a)Nonaccrual status at Jan. 1, 2022Nonaccrual statusNonaccrual with no allowance (a)
Consumer automotive$1,187 $1,110 $473 $1,078 $1,187 $445 
Consumer mortgage
Mortgage Finance34 34 21 59 34 25 
Mortgage — Legacy15 15 13 26 15 14 
Total consumer mortgage49 49 34 85 49 39 
Consumer other
Personal Lending13 12 — 5 13 — 
Credit Card43 54 — 11 43 — 
Total consumer other56 66 — 16 56 — 
Total consumer1,292 1,225 507 1,179 1,292 484 
Commercial
Commercial and industrial
Automotive5 — — 33 5 2 
Other157 159 4 221 157 33 
Commercial real estate— — — 3 — — 
Total commercial162 159 4 257 162 35 
Total finance receivables and loans (b)$1,454 $1,384 $511 $1,436 $1,454 $519 
(a)Represents a component of nonaccrual status at end of period.
(b)We recorded interest income from cash payments associated with finance receivables and loans on nonaccrual status of $3 million for both the three months ended March 31, 2023, and 2022.
Credit Quality Indicators
We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is generally based upon borrower payment activity, relative to the contractual terms of the loan.
The following tables present the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status and origination year.
Origination yearRevolving loans converted to term
March 31, 2023 ($ in millions)
202320222021202020192018 and priorRevolving loansTotal
Consumer automotive
Current$7,801 $33,822 $20,093 $9,232 $5,604 $4,098 $— $— $80,650 
30–59 days past due23 769 756 308 226 210 — — 2,292 
60–89 days past due1 244 273 108 74 65 — — 765 
90 or more days past due— 88 96 38 31 35 — — 288 
Total consumer automotive (a)7,825 34,923 21,218 9,686 5,935 4,408 — — 83,995 
Consumer mortgage
Mortgage Finance
Current21 2,271 10,797 1,917 794 3,316 — — 19,116 
30–59 days past due— 5 9 4 4 16 — — 38 
60–89 days past due— 1 2 1 — 8 — — 12 
90 or more days past due— 2 4 — 1 16 — — 23 
Total Mortgage Finance21 2,279 10,812 1,922 799 3,356 — — 19,189 
Mortgage — Legacy
Current— — — — — 59 177 18 254 
30–59 days past due— — — — — 2 1 — 3 
60–89 days past due— — — — — 2 1 — 3 
90 or more days past due— — — — — 8 2 2 12 
Total Mortgage — Legacy— — — — — 71 181 20 272 
Total consumer mortgage21 2,279 10,812 1,922 799 3,427 181 20 19,461 
Consumer other
Personal Lending
Current384 1,272 327 39 4 1 — — 2,027 
30–59 days past due1 12 5 — — — — — 18 
60–89 days past due— 11 4 — — — — — 15 
90 or more days past due— 8 4 — — — — — 12 
Total Personal Lending (b)385 1,303 340 39 4 1 — — 2,072 
Credit Card
Current— — — — — — 1,548 — 1,548 
30–59 days past due— — — — — — 22 — 22 
60–89 days past due— — — — — — 19 — 19 
90 or more days past due— — — — — — 51 — 51 
Total Credit Card— — — — — — 1,640 — 1,640 
Total consumer other385 1,303 340 39 4 1 1,640 — 3,712 
Total consumer$8,231 $38,505 $32,370 $11,647 $6,738 $7,836 $1,821 $20 $107,168 
(a)Certain consumer automotive loans are included in fair value hedging relationships. The amortized cost excludes a liability of $355 million related to basis adjustments for loans in closed portfolios with active hedges under the portfolio layer method at March 31, 2023. These basis adjustments would be allocated to the amortized cost of specific loans within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.
(b)Excludes $2 million of finance receivables at March 31, 2023, for which we have elected the fair value option.
Origination yearRevolving loans converted to term
December 31, 2022 ($ 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 18 for additional information.
(b)Excludes $3 million of finance receivables at December 31, 2022, for which we have elected the fair value option.
The following table presents gross charge-offs of our finance receivables and loans for each portfolio class by origination year that occurred during the three months ended March 31, 2023. Refer to Note 1 to the Consolidated Financial Statements in our 2022 Annual Report on Form 10-K for additional information on our charge-off policy.
Origination yearRevolving loans converted to term
Three months ended March 31, 2023 ($ in millions)
202320222021202020192018 and priorRevolving loansTotal
Consumer automotive$2 $220 $178 $56 $42 $38 $— $— $536 
Consumer mortgage
Mortgage — Legacy— — — — — 1 — — 1 
Total consumer mortgage— — — — — 1 — — 1 
Consumer other
Personal Lending— 21 9 1 — — — — 31 
Credit Card— — — — — — 32 1 33 
Total consumer other— 21 9 1 — — 32 1 64 
Total consumer2 241 187 57 42 39 32 1 601 
Total finance receivables and loans$2 $241 $187 $57 $42 $39 $32 $1 $601 
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.
•Loss — Loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.
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
March 31, 2023 ($ in millions)
202320222021202020192018 and priorRevolving loansTotal
Commercial
Commercial and industrial
Automotive
Pass$129 $598 $198 $122 $72 $50 $12,654 $— $13,823 
Special mention1 22 46 — — 27 926 — 1,022 
Substandard— — — — — — 60 — 60 
Total automotive130 620 244 122 72 77 13,640 — 14,905 
Other
Pass82 640 436 329 319 170 5,513 93 7,582 
Special mention— 177 187 196 95 209 260 38 1,162 
Substandard— — — 4 50 118 55 13 240 
Doubtful— — — — 63 26 2 — 91 
Total other82 817 623 529 527 523 5,830 144 9,075 
Commercial real estate
Pass263 1,519 1,090 941 672 937 9 22 5,453 
Special mention— 2 32 2 19 1 — — 56 
Total commercial real estate263 1,521 1,122 943 691 938 9 22 5,509 
Total commercial$475 $2,958 $1,989 $1,594 $1,290 $1,538 $19,479 $166 $29,489 
Origination yearRevolving loans converted to term
December 31, 2022 ($ 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 $29,138 
The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.
($ in millions)30–59 days past due60–89 days past due90 days or more past dueTotal past dueCurrentTotal finance receivables and loans
March 31, 2023
Commercial
Commercial and industrial
Automotive$— $— $— $— $14,905 $14,905 
Other1 — 3 4 9,071 9,075 
Commercial real estate— — — — 5,509 5,509 
Total commercial$1 $— $3 $4 $29,485 $29,489 
December 31, 2022
Commercial
Commercial and industrial
Automotive$— $— $— $— $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 $29,138 
Loan Modifications
The following table presents the amortized cost basis of loans that were modified subsequent to origination during the three months ended March 31, 2023, for each portfolio segment, by modification type. For additional information on loan modification types in scope of this disclosure, refer to Note 1.
Payment extensions
March 31, 2023 ($ in millions)
Payment deferralsContractual maturity extensionsPrincipal forgivenessInterest rate concessionsCombinationTotal (a)
Consumer automotive$— $14 $2 $— $39 $55 
Consumer mortgage
Mortgage Finance— 2 — — 2 4 
Total consumer mortgage— 2 — — 2 4 
Consumer other
Credit Card— — — 3 — 3 
Total consumer other— — — 3 — 3 
Total consumer— 16 2 3 41 62 
Commercial
Commercial and industrial
Other62 7 — — — 69 
Total commercial62 7 — — — 69 
Total finance receivables and loans$62 $23 $2 $3 $41 $131 
(a)Represents 0.1% of total finance receivables and loans outstanding as of March 31, 2023.
The following table presents the financial effect of loan modifications that occurred during the three months ended March 31, 2023.
Payment extensions (a)Principal forgivenessInterest rate concessions (a)Combination (a) (b)
March 31, 2023 ($ in millions)
Number of months extended/deferredAmount forgivenInitial rateRevised rateRemaining termRevised remaining termInitial rateRevised rate
Consumer automotive26$1 — %— %748510.4 %9.7 %
Consumer mortgage
Mortgage Finance159— — — 3144674.9 3.9 
Total consumer mortgage159— — — 3144674.9 3.9 
Consumer other
Credit Card— — 29.6 10.6 — — — — 
Total consumer other— — 29.6 10.6 — — — — 
Commercial
Commercial and industrial
Other12— — — — — — — 
Total commercial12$— — — — — — — 
(a)Calculated using a weighted-average balance for each portfolio class.
(b)Term is presented in number of months.
The following tables present the subsequent performance of loans recorded at amortized cost, by portfolio segment and credit quality indicator, that have been modified during the three months ended March 31, 2023.
Three months ended March 31, 2023 ($ in millions)
Current30–59 days past due60–89 days past due90 or more days past dueTotal
Consumer automotive
Contractual maturity extensions$13 $1 $— $— $14 
Principal forgiveness— — — 2 2 
Combination37 2 — — 39 
Total consumer automotive (a)50 3 — 2 55 
Consumer mortgage
Mortgage Finance
Contractual maturity extensions2 — — — 2 
Combination— — 2 — 2 
Total Mortgage Finance2 — 2 — 4 
Total consumer mortgage2 — 2 — 4 
Consumer other
Credit Card
Interest rate concessions1 1 — 1 3 
Total consumer other1 1 — 1 3 
Total consumer$53 $4 $2 $3 $62 
(a)During the three months ended March 31, 2023, 12 consumer loans with a total amortized cost of $1 million have redefaulted.
Three months ended March 31, 2023 ($ in millions)
Special mentionSubstandardDoubtfulTotal
Commercial and industrial
Other
Payment deferrals$— $34 $28 $62 
Contractual maturity extensions7 — — 7 
Total commercial$7 $34 $28 $69 
Troubled Debt Restructuring Disclosures Prior to the Adoption of ASU 2022-02
The adoption of ASU 2022-02 eliminated TDR recognition and measurement guidance, as well as all TDR-related disclosures. Refer to Note 1 for additional information. TDRs were loan modifications where concessions were granted to borrowers experiencing financial difficulties. Total TDRs recorded at amortized cost were $2.4 billion at December 31, 2022.
The following table presents information related to finance receivables and loans recorded at amortized cost modified in connection with a TDR during the period.
2022
Three months ended March 31, ($ in millions)
Number of loansPre-modification amortized cost basisPost-modification amortized cost basis
Consumer automotive13,451 $231 $227 
Consumer mortgage
Mortgage Finance6 5 5 
Mortgage — Legacy4 1 1 
Total consumer mortgage10 6 6 
Consumer other
Credit Card351 1 1 
Total consumer other351 1 1 
Total consumer13,812 238 234 
Commercial
Commercial and industrial
Other1 34 34 
Total commercial1 34 34 
Total finance receivables and loans13,813 $272 $268 
The following table presents information about finance receivables and loans recorded at amortized cost that have redefaulted during the reporting period and were within 12 months or less of being modified as a TDR. Redefault is when finance receivables and loans meet the requirements for evaluation under our charge-off policy except for commercial finance receivables and loans, where redefault is defined as 90 days past due.
2022
Three months ended March 31, ($ in millions)
Number of loansAmortized costCharge-off amount
Consumer automotive2,111 $31 $13 
Consumer mortgage
Mortgage Finance2 2 — 
Total consumer mortgage2 2 — 
Total consumer finance receivables and loans
2,113 33 13 
Total finance receivables and loans2,113 $33 $13