þ
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 31, 2016 or
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to
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Delaware
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38-0572512
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(State or other jurisdiction of
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(I.R.S. Employer
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incorporation or organization)
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Identification No.)
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Title of each class
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Common Stock, par value $0.01 per share
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8.125% Fixed Rate/Floating Rate Trust Preferred Securities, Series 2 of GMAC Capital Trust I
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Large accelerated filer
þ
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Accelerated filer
o
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Non-accelerated filer
o
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Smaller reporting company
o
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(Do not check if a smaller reporting)
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Page
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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Item 15.
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Item 16.
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•
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Permitted Activities
— The GLB Act amended the BHC Act by providing a regulatory framework applicable to “financial holding companies,” which are bank holding companies that meet certain qualifications and elect FHC status. FHCs are generally permitted to engage in a broader range of financial and related activities than those that are permissible for BHCs, in particular, securities, insurance, and merchant banking activities. The FRB supervises, examines, and regulates FHCs, as it does all BHCs. However, insurance and securities activities conducted by a FHC or its nonbank subsidiaries are also regulated by functional regulators. Our election to become a FHC under the BHC Act was approved by the FRB and became effective on December 20, 2013. Ally's status as a FHC allows us to continue all existing insurance activities, as well as our SmartAuction vehicle remarketing services for third parties. To maintain its status as a FHC, Ally and its bank subsidiary, Ally Bank, must remain “well-capitalized” and “well-managed,” as defined under applicable law. Refer to
Note 21
to the Consolidated Financial Statements for additional information. See also “Basel Capital Frameworks” below. Under the BHC Act, Ally generally may not, directly or indirectly, acquire more than 5% of any class of voting shares of any nonaffiliated bank or BHC without first obtaining FRB approval.
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•
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Dodd-Frank Wall Street Reform and Consumer Protection Act
— The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010 significantly overhauled many aspects of the regulation of the financial services industry, addressing, among other things, systemic risk, capital adequacy, deposit insurance assessments, consumer financial protection, derivatives, restrictions on an insured bank’s transactions with its affiliates, lending limits, and mortgage-lending practices. A number of provisions in the Dodd-Frank Act have entered into effect while others will become effective at a later date after a rulemaking process is completed. While U.S. regulators have finalized many regulations to implement various provisions of the Dodd-Frank Act, they plan to propose or finalize additional implementing regulations in the future.
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•
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subject Ally to enhanced prudential standards, oversight, and scrutiny as a result of being a BHC with $50 billion or more in total consolidated assets (a large BHC);
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•
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have increased the levels of capital and liquidity with which Ally must operate and affect how it plans capital and liquidity levels;
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•
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subject Ally to new and/or higher fees paid to various regulatory entities, including but not limited to deposit insurance fees paid by Ally Bank to the FDIC;
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•
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require Ally to provide to the FRB and FDIC an annual plan for its rapid and orderly resolution in the event of material financial distress;
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•
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subject Ally to regulation and examination by the CFPB, which has very broad rule-making, examination, and enforcement authorities; and
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•
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subject derivatives that Ally enters into for hedging, risk management, and other purposes to a comprehensive regulatory regime that requires central clearing and execution on designated markets or execution facilities for certain standardized derivatives and imposes margin, documentation, trade reporting, and other new requirements.
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•
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Enhanced Prudential Standards
— In January 2015, Ally became subject to the requirements of an FRB rule implementing for large BHCs such as Ally certain enhanced prudential standards under the Dodd-Frank Act. Among other things, the final rule requires Ally to maintain a buffer of unencumbered highly liquid assets to meet projected net cash outflows for 30 days over the range of liquidity stress scenarios used in internal stress tests and to comply with a number of risk management and governance requirements, including liquidity risk management standards. Other enhanced prudential standards for large BHCs under the Dodd-Frank Act include single counterparty credit limits and an early remediation framework. The FRB has either proposed but not yet finalized, or has yet to propose, rules implementing such standards.
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•
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Liquidity Coverage Ratio Requirements
— The FRB and other U.S. federal banking agencies have implemented requirements related to the liquidity coverage ratio (LCR) consistent with international standards developed by the Basel Committee on Banking Supervision (Basel Committee). In short, the LCR rules establish a mandatory ratio of high-quality liquid assets to total net cash outflows over a prospective 30 calendar-day period. LCR rules that apply to Ally are those that apply to depository institution holding companies with $50 billion or more but less than $250 billion in total consolidated assets and less than $10 billion of foreign exposures. The applicable LCR requires depository institution holding companies, including Ally, to calculate their LCR on a monthly basis beginning January 1, 2016, subject to a transition period. In 2017, Ally will be required to maintain an LCR of 100%.
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•
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Capital Adequacy Requirements
— Ally and Ally Bank are subject to various capital adequacy requirements as established under FRB and FDIC regulations.
Refer to
Note 21
to the Consolidated Financial Statements for additional information. See also “Basel Capital Frameworks” below.
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•
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Capital Planning and Stress Tests
— Pursuant to the Dodd-Frank Act, the FRB has adopted capital planning and stress test requirements for large BHCs, including Ally, which form part of the FRB's Comprehensive Capital Analysis and Review (CCAR) process. Under the FRB's capital plan rule, Ally must submit an annual capital plan to the FRB, taking into account the results of stress tests conducted by Ally based on scenarios prescribed by the FRB. The capital plan must include a description of all planned capital actions over a nine-quarter planning horizon, including any issuance of a debt or equity capital instrument, any capital distribution, and any similar action that the FRB determines could have an impact on Ally's consolidated capital. The capital plan must also include a discussion of how Ally will maintain capital above the U.S. Basel III minimum regulatory capital ratios for each period over the nine-quarter planning horizon, and serve as a source of strength to Ally Bank. The FRB will either object to Ally's capital plan, in whole or in part, or provide a notice of non-objection. If the FRB objects to the capital plan, or if certain material events occur after approval of the plan, Ally must submit a revised capital plan within 30 days. In addition, even with an approved capital plan, Ally must seek the approval of the FRB before making a capital distribution if, among other factors, Ally would not meet its regulatory capital requirements after making the proposed capital distribution.
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Limitations on Bank and Bank Holding Company Dividends and Capital Distributions
— Utah law (and, in certain instances, federal law) places restrictions and limitations on dividends or other distributions payable by our banking subsidiary, Ally Bank, to Ally. Under the FRB’s capital plan rule, an objection to a large BHC's capital plan generally prohibits it from paying dividends or making certain other capital distributions without specific FRB non-objection to such action. Even if a large BHC receives a non-objection to its capital plan, it may not pay a dividend or make certain other capital distributions without FRB approval under certain circumstances (e.g., where the BHC would not meet certain minimum regulatory capital ratios after giving effect to the
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•
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Transactions with Affiliates
— Certain transactions between Ally Bank and any of its nonbank “affiliates,” including but not limited to Ally, are subject to federal statutory and regulatory restrictions. Pursuant to these restrictions, unless otherwise exempted, “covered transactions” including Ally Bank's extensions of credit to and asset purchases from its nonbank affiliates, generally (1) are limited to 10% of Ally Bank's capital stock and surplus with respect to transactions with any individual affiliate, with an aggregate limit of 20% of Ally Bank's capital stock and surplus for all affiliates and all such transactions; (2) certain credit transactions are subject to stringent collateralization requirements; (3) asset purchases by Ally Bank may not involve the purchase of any asset deemed to be a “low quality asset” under federal banking guidelines; and (4) must be conducted in accordance with safe-and-sound banking practices (collectively, the Affiliate Transaction Restrictions). In addition, transactions between Ally Bank and a nonbank affiliate must be on market terms and conditions.
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Source of Strength
— Pursuant to the Federal Deposit Insurance Act, as amended by the Dodd-Frank Act, FRB policy and regulations, and commitments made to the FRB in connection with Ally Bank's application for membership in the Federal Reserve System, as described in
Note 21
to the Consolidated Financial Statements,
Ally is required to act as a source of financial and managerial strength to Ally Bank and is required to commit necessary capital and liquidity to support Ally Bank. This support may be required at inopportune times for Ally.
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•
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Single Point of Entry Resolution Authority
— Under the Dodd-Frank Act, certain financial institutions, including a BHC such as Ally where a determination is made that the BHC’s failure would have serious adverse effects on the financial stability of the United States, are eligible to be subjected to a new FDIC-administered resolution regime called orderly liquidation authority, an alternative to bankruptcy. The FDIC’s orderly liquidation authority became effective in July 2010, with implementing regulations adopted thereafter in stages, with some rulemakings still to come. If Ally were to become insolvent and be placed into receivership under the orderly liquidation authority, the FDIC would be appointed as receiver, giving the FDIC considerable rights and powers that it must exercise with the goal of liquidating and winding up Ally, including the ability to assign assets and liabilities without the need for creditor consent or prior court review and the ability of the FDIC to differentiate and determine priority among creditors. In December 2013, the FDIC released its proposed Single Point of Entry strategy for resolution of a systemically important financial institution under the orderly liquidation authority. The FDIC’s release outlines how it would use its powers under the orderly liquidation authority to resolve a systemically important financial institution by placing its top-tier U.S. holding company in receivership and keeping its operating subsidiaries open and out of insolvency proceedings by transferring the operating subsidiaries to a new bridge holding company, recapitalizing the operating subsidiaries, and imposing losses on the shareholders and creditors of the holding company in receivership according to their statutory order of priority.
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Enforcement Authority
— The FRB, FDIC, and UDFI have broad authority to issue orders to banks and BHCs (in the case of the FRB and FDIC) to cease and desist from unsafe or unsound banking practices and from violations of laws, rules, regulations, or conditions imposed in writing by the banking agencies. The FRB, FDIC, and UDFI also are empowered to require affirmative actions to correct any violation or practice; issue administrative orders that can be judicially enforced; direct increases in capital; limit dividends and distributions; restrict growth; assess civil money penalties against institutions or individuals who violate any laws, regulations, orders, or written agreements with the banking agencies; order termination of certain activities of BHCs or their subsidiaries (in the case of the FRB and FDIC); remove officers and directors; order divestiture of ownership or control of a nonbank subsidiary by a BHC (in the case of the FRB); terminate deposit insurance (in the case of the FDIC); and/or place a bank into receivership (in the case of the FDIC and UDFI).
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•
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Mortgage Operations
— Our mortgage business is subject to extensive federal, state, and local laws, in addition to judicial and administrative decisions that impose requirements and restrictions on this business. The mortgage business is also subject to examination by the Federal Housing Commissioner to assure compliance with Federal Housing Administration regulations, policies, and procedures. The federal, state, and local laws to which our mortgage business is subject, among other things, impose licensing obligations and financial requirements; limit the interest rates, finance charges, and other fees that can be charged; regulate the use of credit reports and the reporting of credit information; impose underwriting requirements; regulate marketing techniques and practices; require the safeguarding of nonpublic information about customers; and regulate servicing practices, including the assessment, collection, foreclosure, claims handling, and investment and interest payments on escrow accounts.
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•
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Automotive Lending Business
— The CFPB has focused on the area of automotive finance, particularly with respect to indirect financing arrangements and fair lending compliance. In March 2013, the CFPB provided guidance about compliance with the fair lending requirements of the Equal Credit Opportunity Act and its implementing regulations for indirect automotive finance companies that permit dealers to charge annual percentage rates to consumers in excess of buy rates used by the finance company to calculate the price paid to acquire an assignment of the retail installment sale contract. In December 2013, Ally Financial Inc. and Ally Bank entered into Consent Orders issued by the CFPB and the U.S. Department of Justice (DOJ) pertaining to the allegation of disparate impact in the automotive finance business. For further information, refer to
Note 30
to the Consolidated Financial Statements.
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•
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Privacy
— The GLB Act imposes additional obligations on us to safeguard the information we maintain on our customers, requires us to provide notice of our privacy practices, and permits customers to “opt-out” of information sharing with unaffiliated parties. The U.S. banking regulators and the Federal Trade Commission have issued regulations that establish obligations to safeguard information. In addition, several states have enacted even more stringent privacy and safeguarding legislation. If a variety of inconsistent state privacy rules or requirements are enacted, our compliance costs could increase substantially.
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Volcker Rule
— Under the Dodd-Frank Act and implementing regulations of the CFTC, FDIC, FRB, Office of the Comptroller of the Currency and the SEC (the Volcker Rule), insured depository institutions and their affiliates are prohibited from (1) engaging in “proprietary trading” and (2) investing in or sponsoring certain types of funds (covered funds) subject to certain limited exceptions. The final rules contain exemptions for market-making, hedging, underwriting, trading in U.S. government and agency obligations and also permit certain ownership interests in certain types of funds to be retained. They also permit the offering and sponsoring of funds under certain conditions. Under orders of the FRB, the conformance period for requirements related to certain covered funds activities has been extended to July 21, 2017. The Volcker Rule imposes significant compliance and reporting obligations on banking entities. The impact of the Volcker Rule will not be material to Ally’s business operations.
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Fair Credit Reporting Act
— The Fair Credit Reporting Act regulates the use of credit reports and the reporting of information to credit reporting agencies, and also provides a national legal standard for lenders to share information with affiliates and certain third parties and to provide firm offers of credit to consumers. In late 2003, the Fair and Accurate Credit Transactions Act was enacted, making this preemption of conflicting state and local law permanent. The Fair Credit Reporting Act was also amended to place further restrictions on the use of information shared between affiliates, to provide new disclosures to consumers when risk-based pricing is used in the credit decision, and to help protect consumers from identity theft. All of these provisions impose additional regulatory and compliance costs on us and reduce the effectiveness of our marketing programs.
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Truth in Lending Act
— The Truth in Lending Act (TILA), as amended, and Regulation Z, which implements TILA, requires lenders to provide borrowers with uniform, understandable information concerning terms and conditions in certain credit transactions. These rules apply to Ally and its subsidiaries in transactions in which they extend credit to consumers and require, in the case of certain mortgage and automotive financing transactions, conspicuous disclosure of the finance charge and annual percentage rate, if any. In addition, if an advertisement for credit states specific credit terms, Regulation Z requires that such advertisement state only those terms that actually are or will be arranged or offered by the creditor. The CFPB has issued substantial
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Sarbanes-Oxley Act
— The Sarbanes-Oxley Act of 2002 implemented a broad range of corporate governance and accounting measures designed to promote honesty and transparency in corporate America. The principal provisions of the act include, among other things, (1) the creation of an independent accounting oversight board; (2) auditor independence provisions that restrict non-audit services that accountants may provide to their audit clients; (3) additional corporate governance and responsibility measures including the requirement that the principal executive and financial officers certify financial statements; (4) the potential forfeiture of bonuses or other incentive-based compensation and profits from the sale of an issuer's securities by directors and senior officers in the twelve-month period following initial publication of any financial statements that later require restatement; (5) an increase in the oversight of and enhancement of certain requirements relating to audit committees and how they interact with the independent auditors; (6) requirements that audit committee members must be independent and are barred from accepting consulting, advisory, or other compensatory fees from the issuer; (7) requirements that companies disclose whether at least one member of the audit committee is a “financial expert” (as defined by the SEC) and, if not, why the audit committee does not have a financial expert; (8) a prohibition on personal loans to directors and officers, except certain loans made by insured financial institutions, on nonpreferential terms and in compliance with other bank regulatory requirements; (9) disclosure of a code of ethics; (10) requirements that management assess the effectiveness of internal control over financial reporting and that the Independent Registered Public Accounting firm attest to the assessment; and (11) a range of enhanced penalties for fraud and other violations.
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•
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USA PATRIOT Act/Anti-Money-Laundering Requirements
— In 2001, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT Act) was signed into law. Title III of the USA PATRIOT Act amends the Bank Secrecy Act and contains provisions designed to detect and prevent the use of the U.S. financial system for money laundering and terrorist financing activities. The Bank Secrecy Act, as amended by the USA PATRIOT Act, requires banks, certain other financial institutions, and, in certain cases, BHCs to undertake activities including maintaining an anti-money-laundering program, verifying the identity of clients, monitoring for and reporting on suspicious transactions, reporting on cash transactions exceeding specified thresholds, and responding to certain requests for information by regulatory authorities and law enforcement agencies. We have implemented internal practices, procedures, and controls designed to comply with these anti-money-laundering requirements.
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•
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Community Reinvestment Act
— Under the Community Reinvestment Act (CRA), a bank has a continuing and affirmative obligation, consistent with the safe-and-sound operation of the institution, to help meet the credit needs of its entire community, including low- and moderate-income persons and neighborhoods. The CRA does not establish specific lending requirements or programs for financial institutions. However, institutions are rated on their performance in meeting the needs of their communities. Ally Bank filed its three-year CRA Strategic Plan with the FRB in October 2016 and received approval in November 2016. In addition, Ally Bank received a “Satisfactory” rating in its most recent CRA performance evaluation. Failure by Ally Bank to maintain a "Satisfactory" or better rating under the CRA may adversely affect Ally Bank's ability to make acquisitions and engage in new activities, and in the event of such a rating, the FRB must prohibit Ally and its subsidiaries from engaging in any additional activities other than those permissible for BHCs that are not FHCs.
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increase the cost or decrease the availability of deposits or other variable-rate funding instruments;
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reduce the return on or demand for loans or increase the prepayment speed of loans;
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increase customer or counterparty delinquencies or defaults;
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negatively impact our ability to remarket off-lease and repossessed vehicles; and
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reduce the value of our loans, retained interests in securitizations, and fixed-income securities in our investment portfolio and the efficacy of our hedging strategies.
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limiting the liability of our directors and providing indemnification to our directors and officers; and
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limiting the ability of our stockholders to call and bring business before special meetings of stockholders by requiring any requesting stockholders to hold at least 25% of our common shares in the aggregate.
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(
$ per share
)
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High
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Low
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Cash dividends declared
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||||||
Year ended December 31, 2016
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||||||
First Quarter
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$
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18.99
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$
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14.55
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$
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—
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Second Quarter
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$
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18.76
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$
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14.84
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$
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—
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Third Quarter
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$
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20.14
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$
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15.37
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$
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0.08
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Fourth Quarter
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$
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20.60
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$
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16.68
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$
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0.08
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Year ended December 31, 2015
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||||||
First Quarter
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$
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24.00
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$
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18.63
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$
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—
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Second Quarter
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$
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23.83
|
|
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$
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19.90
|
|
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$
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—
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Third Quarter
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$
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23.24
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$
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19.77
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$
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—
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Fourth Quarter
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$
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21.21
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|
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$
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18.19
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$
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—
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Plan Category
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(1)
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)
(in thousands)
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(2)
Weighted-average exercise price of outstanding options, warrants and rights
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(3)
Number of securities remaining available for further issuance under equity compensation plans (excluding securities reflected in column (1)) (b)
(in thousands)
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Equity compensation plans approved by security holders
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7,517
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—
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25,405
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Total
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7,517
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—
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25,405
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(a)
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Includes deferred stock units and restricted stock units outstanding under the 2014 Incentive Compensation Plan and deferred stock units outstanding under the 2014 Non-Employee Directors Equity Compensation Plan.
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(b)
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Includes 21,861,785 securities available for issuance under the plans identified in (a) above and 3,542,719 securities available for issuance under Ally's Employee Stock Purchase Plan, of which 7,516,616 securities are subject to purchase during the current purchase period (determined as of
December 31, 2016
).
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Three months ended December 31, 2016
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Total number
of shares
repurchased (a)
(in thousands)
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Weighted-average price paid per share (a) (b)
(in dollars)
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Total number of shares repurchased as part of publicly announced program (a) (c)
(in thousands)
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Maximum approximate dollar value of shares that may yet be repurchased under the program (a) (b) (c)
($ in millions)
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||||||
October 2016
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3,878
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|
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$
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19.31
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|
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3,878
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$
|
466
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November 2016
|
|
2,687
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|
|
18.29
|
|
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2,687
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|
|
417
|
|
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December 2016
|
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2,180
|
|
|
19.76
|
|
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2,180
|
|
|
374
|
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Total
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8,745
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19.11
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8,745
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(a)
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Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.
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(b)
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Excludes brokerage commissions.
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(c)
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On July 19, 2016, we announced a common stock repurchase program of up to $700 million. The program commenced in the third quarter of 2016 and will expire on June 30, 2017.
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(
$ in millions, except per share data; shares in thousands
)
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2016
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2015
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2014
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2013
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2012
|
||||||||||
Total financing revenue and other interest income
|
|
$
|
8,305
|
|
|
$
|
8,397
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|
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$
|
8,391
|
|
|
$
|
8,093
|
|
|
$
|
7,342
|
|
Total interest expense
|
|
2,629
|
|
|
2,429
|
|
|
2,783
|
|
|
3,319
|
|
|
4,052
|
|
|||||
Net depreciation expense on operating lease assets
|
|
1,769
|
|
|
2,249
|
|
|
2,233
|
|
|
1,995
|
|
|
1,399
|
|
|||||
Net financing revenue and other interest income
|
|
3,907
|
|
|
3,719
|
|
|
3,375
|
|
|
2,779
|
|
|
1,891
|
|
|||||
Total other revenue
|
|
1,530
|
|
|
1,142
|
|
|
1,276
|
|
|
1,484
|
|
|
2,574
|
|
|||||
Total net revenue
|
|
5,437
|
|
|
4,861
|
|
|
4,651
|
|
|
4,263
|
|
|
4,465
|
|
|||||
Provision for loan losses
|
|
917
|
|
|
707
|
|
|
457
|
|
|
501
|
|
|
329
|
|
|||||
Total noninterest expense
|
|
2,939
|
|
|
2,761
|
|
|
2,948
|
|
|
3,405
|
|
|
3,622
|
|
|||||
Income from continuing operations before income tax expense (benefit)
|
|
1,581
|
|
|
1,393
|
|
|
1,246
|
|
|
357
|
|
|
514
|
|
|||||
Income tax expense (benefit) from continuing operations
|
|
470
|
|
|
496
|
|
|
321
|
|
|
(59
|
)
|
|
(856
|
)
|
|||||
Net income from continuing operations
|
|
1,111
|
|
|
897
|
|
|
925
|
|
|
416
|
|
|
1,370
|
|
|||||
(Loss) income from discontinued operations, net of tax
|
|
(44
|
)
|
|
392
|
|
|
225
|
|
|
(55
|
)
|
|
(174
|
)
|
|||||
Net income
|
|
$
|
1,067
|
|
|
$
|
1,289
|
|
|
$
|
1,150
|
|
|
$
|
361
|
|
|
$
|
1,196
|
|
Basic earnings per common share (a):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
2.25
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
|
$
|
(1.51
|
)
|
|
$
|
1.38
|
|
Net income (loss)
|
|
2.15
|
|
|
(2.66
|
)
|
|
1.83
|
|
|
(1.64
|
)
|
|
0.96
|
|
|||||
Weighted-average common shares outstanding
|
|
481,105
|
|
|
482,873
|
|
|
481,155
|
|
|
420,166
|
|
|
412,601
|
|
|||||
Diluted earnings per common share (a):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) from continuing operations
|
|
$
|
2.24
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
|
$
|
(1.51
|
)
|
|
$
|
1.38
|
|
Net income (loss)
|
|
2.15
|
|
|
(2.66
|
)
|
|
1.83
|
|
|
(1.64
|
)
|
|
0.96
|
|
|||||
Weighted-average common shares outstanding (b)
|
|
482,182
|
|
|
482,873
|
|
|
481,934
|
|
|
420,166
|
|
|
412,601
|
|
|||||
Market price per common share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
High closing
|
|
$
|
20.40
|
|
|
$
|
23.88
|
|
|
$
|
25.21
|
|
|
|
|
|
||||
Low closing
|
|
14.90
|
|
|
18.33
|
|
|
20.12
|
|
|
|
|
|
|||||||
Period-end closing
|
|
19.02
|
|
|
18.64
|
|
|
23.62
|
|
|
|
|
|
|||||||
Cash dividends per common share
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||||
Period-end common shares outstanding
|
|
467,000
|
|
|
481,980
|
|
|
480,095
|
|
|
|
|
|
(a)
|
Includes shares related to share-based compensation that vested but were not yet issued for the
years ended
December 31, 2016
,
2015
, and
2014
, respectively. Preferred stock dividends for the
year ended
December 31, 2015
, include
$2,364 million
recognized in connection with the partial redemption of the Series G Preferred Stock and the repurchase of the Series A Preferred Stock. These dividends represent an additional return to preferred shareholders calculated as the excess consideration paid over the carrying amount derecognized.
|
(b)
|
Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the
year ended
December 31, 2015
, and
2013
, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share.
|
Year ended December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Selected period-end balance sheet data:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
|
$
|
163,728
|
|
|
$
|
158,581
|
|
|
$
|
151,631
|
|
|
$
|
150,908
|
|
|
$
|
181,978
|
|
Total deposit liabilities
|
|
$
|
79,022
|
|
|
$
|
66,478
|
|
|
$
|
58,203
|
|
|
$
|
53,326
|
|
|
$
|
47,884
|
|
Long-term debt
|
|
$
|
54,128
|
|
|
$
|
66,234
|
|
|
$
|
66,380
|
|
|
$
|
69,230
|
|
|
$
|
74,223
|
|
Preferred stock
|
|
$
|
—
|
|
|
$
|
696
|
|
|
$
|
1,255
|
|
|
$
|
1,255
|
|
|
$
|
6,940
|
|
Total equity
|
|
$
|
13,317
|
|
|
$
|
13,439
|
|
|
$
|
15,399
|
|
|
$
|
14,208
|
|
|
$
|
19,898
|
|
Financial ratios:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (a)
|
|
0.68
|
%
|
|
0.84
|
%
|
|
0.77
|
%
|
|
0.23
|
%
|
|
0.65
|
%
|
|||||
Return on average equity (a)
|
|
7.80
|
%
|
|
8.69
|
%
|
|
7.77
|
%
|
|
1.92
|
%
|
|
6.32
|
%
|
|||||
Equity to assets (a)
|
|
8.69
|
%
|
|
9.65
|
%
|
|
9.86
|
%
|
|
12.02
|
%
|
|
10.32
|
%
|
|||||
Common dividend payout ratio
|
|
7.44
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|||||
Net interest spread (a) (b) (c)
|
|
2.49
|
%
|
|
2.44
|
%
|
|
2.26
|
%
|
|
1.73
|
%
|
|
1.15
|
%
|
|||||
Net yield on interest-earning assets (a) (c) (d)
|
|
2.63
|
%
|
|
2.57
|
%
|
|
2.41
|
%
|
|
2.03
|
%
|
|
1.42
|
%
|
(a)
|
The ratios were based on average assets and average equity using a combination of monthly and daily average methodologies.
|
(b)
|
Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities, excluding discontinued operations for the periods shown.
|
(c)
|
Amounts for the years ended December 31, 2015, 2014, 2013, and 2012, were adjusted to include previously excluded equity investments and related income on equity investments. Refer to the section titled
Statistical Tables
within Management's Discussion and Analysis of Financial Condition and Results of Operations for additional information.
|
(d)
|
Net yield on interest-earning assets represents net financing revenue and other interest income as a percentage of total interest-earning assets.
|
|
|
Under Basel III (a)
|
|
Under Basel I (b)
|
||||||||||||||||||||||
|
|
Transitional
|
|
Fully Phased-in (c)
|
|
Transitional
|
|
Fully Phased-in (c)
|
|
December 31,
|
||||||||||||||||
(
$ in millions
)
|
|
December 31, 2016
|
|
December 31, 2015
|
|
2014
|
2013
|
2012
|
||||||||||||||||||
Common Equity Tier 1 capital ratio
|
|
9.37
|
%
|
|
9.13
|
%
|
|
9.21
|
%
|
|
8.74
|
%
|
|
9.64
|
%
|
8.84
|
%
|
6.98
|
%
|
|||||||
Tier 1 capital ratio
|
|
10.93
|
%
|
|
10.88
|
%
|
|
11.10
|
%
|
|
11.06
|
%
|
|
12.55
|
%
|
11.79
|
%
|
13.13
|
%
|
|||||||
Total capital ratio
|
|
12.57
|
%
|
|
12.52
|
%
|
|
12.52
|
%
|
|
12.47
|
%
|
|
13.24
|
%
|
12.76
|
%
|
14.07
|
%
|
|||||||
Tier 1 leverage ratio (to adjusted quarterly average assets) (d)
|
|
9.54
|
%
|
|
9.53
|
%
|
|
9.73
|
%
|
|
9.73
|
%
|
|
10.94
|
%
|
10.23
|
%
|
11.16
|
%
|
|||||||
Total equity
|
|
$
|
13,317
|
|
|
$
|
13,317
|
|
|
$
|
13,439
|
|
|
$
|
13,439
|
|
|
$
|
15,399
|
|
$
|
14,208
|
|
$
|
19,898
|
|
Preferred stock
|
|
—
|
|
|
—
|
|
|
(696
|
)
|
|
(696
|
)
|
|
(1,255
|
)
|
(1,255
|
)
|
(6,940
|
)
|
|||||||
Goodwill and certain other intangibles
|
|
(272
|
)
|
|
(293
|
)
|
|
(27
|
)
|
|
(27
|
)
|
|
(27
|
)
|
(27
|
)
|
(494
|
)
|
|||||||
Deferred tax assets arising from net operating loss and tax credit carryforwards (e)
|
|
(410
|
)
|
|
(683
|
)
|
|
(392
|
)
|
|
(980
|
)
|
|
(1,310
|
)
|
(1,639
|
)
|
(1,445
|
)
|
|||||||
Other adjustments
|
|
343
|
|
|
343
|
|
|
183
|
|
|
183
|
|
|
(219
|
)
|
79
|
|
(270
|
)
|
|||||||
Common Equity Tier 1 capital
|
|
12,978
|
|
|
12,684
|
|
|
12,507
|
|
|
11,919
|
|
|
12,588
|
|
11,366
|
|
10,749
|
|
|||||||
Preferred stock
|
|
—
|
|
|
—
|
|
|
696
|
|
|
696
|
|
|
1,255
|
|
1,255
|
|
6,940
|
|
|||||||
Trust preferred securities
|
|
2,489
|
|
|
2,489
|
|
|
2,520
|
|
|
2,520
|
|
|
2,546
|
|
2,544
|
|
2,543
|
|
|||||||
Deferred tax assets arising from net operating loss and tax credit carryforwards
|
|
(273
|
)
|
|
—
|
|
|
(588
|
)
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|||||||
Other adjustments
|
|
(47
|
)
|
|
(47
|
)
|
|
(58
|
)
|
|
(58
|
)
|
|
—
|
|
—
|
|
—
|
|
|||||||
Tier 1 capital
|
|
15,147
|
|
|
15,126
|
|
|
15,077
|
|
|
15,077
|
|
|
16,389
|
|
15,165
|
|
20,232
|
|
|||||||
Qualifying subordinated debt and other instruments qualifying as Tier 2
|
|
1,174
|
|
|
1,174
|
|
|
932
|
|
|
932
|
|
|
237
|
|
271
|
|
251
|
|
|||||||
Qualifying allowance for credit losses and other adjustments
|
|
1,098
|
|
|
1,098
|
|
|
996
|
|
|
996
|
|
|
668
|
|
969
|
|
1,186
|
|
|||||||
Total capital
|
|
$
|
17,419
|
|
|
$
|
17,398
|
|
|
$
|
17,005
|
|
|
$
|
17,005
|
|
|
$
|
17,294
|
|
$
|
16,405
|
|
$
|
21,669
|
|
Risk-weighted assets (f)
|
|
$
|
138,539
|
|
|
$
|
138,987
|
|
|
$
|
135,844
|
|
|
$
|
136,354
|
|
|
$
|
130,590
|
|
$
|
128,575
|
|
$
|
154,038
|
|
(a)
|
U.S. Basel III became effective for us on January 1, 2015, subject to transitional provisions primarily related to deductions and adjustments impacting Common Equity Tier 1 capital and Tier 1 capital.
|
(b)
|
Capital ratios as of and prior to December 31, 2014, are presented under the U.S. Basel I capital framework.
|
(c)
|
Our fully phased-in capital ratios are non-GAAP financial measures that management believes are important to the reader of the
Consolidated Financial Statements
but should be supplemental to, and not a substitute for, primary GAAP measures. The fully phased-in capital ratios are compared to the transitional capital ratios above. We believe these capital ratios are important because we believe investors, analysts, and banking regulators may assess our capital utilization and adequacy using these ratios. Additionally, presentation of these ratios allows readers to compare certain aspects of our capital utilization and adequacy on the same basis to other companies in the industry.
|
(d)
|
Tier 1 leverage ratio equals Tier 1 capital divided by adjusted quarterly average total assets (which reflects adjustments for disallowed goodwill, certain intangible assets, and disallowed deferred tax assets).
|
(e)
|
Contains deferred tax assets required to be deducted from capital under U.S. Basel III.
|
(f)
|
Risk-weighted assets are defined by regulation and are generally determined by allocating assets and specified off-balance sheet exposures into various risk categories.
|
•
|
evolving local, regional, national, or international business, economic, or political conditions, including the residual effects of the recent global economic crisis and responses to that crisis by governments, businesses, and households;
|
•
|
changes in laws or the regulatory or supervisory environment, including as a result of recent financial services legislation, regulation, or policies or changes in government officials or other personnel;
|
•
|
changes in monetary, fiscal, or trade laws or policies, including as a result of actions by government agencies, central banks, or supranational authorities;
|
•
|
changes in accounting standards or policies;
|
•
|
changes in the automotive industry or the markets for new or used vehicles;
|
•
|
disruptions or shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations;
|
•
|
changes in business or consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households;
|
•
|
changes in our corporate or business strategies, the composition of our assets, or the way in which we fund those assets;
|
•
|
our ability to execute our business strategy for Ally Bank, including its regulatory normalization;
|
•
|
our ability to optimize our automotive finance and insurance businesses and to continue diversifying into and growing other lines of business, including consumer finance, corporate finance, brokerage, and wealth management;
|
•
|
our ability to develop capital plans that will be approved by the FRB and our ability to implement them, including any payment of dividends or share repurchases;
|
•
|
our ability to effectively manage capital or liquidity consistent with evolving business or operational needs, risk management standards, and regulatory or supervisory requirements;
|
•
|
our ability to cost-effectively fund our business and operations, including through deposits and the capital markets;
|
•
|
changes in any credit rating assigned to Ally, including Ally Bank;
|
•
|
adverse publicity or other reputational harm to us;
|
•
|
our ability to develop, maintain, or market our products or services or to absorb unanticipated costs or liabilities associated with those products or services;
|
•
|
our ability to innovate, to anticipate the needs of current or future customers, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures;
|
•
|
the continuing profitability and viability of our dealer-centric automotive finance and insurance businesses, especially in the face of competition from captive finance companies and their automotive manufacturing sponsors;
|
•
|
our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk;
|
•
|
changes in the credit, liquidity, or other financial condition of our customers, counterparties, service providers, or competitors;
|
•
|
our ability to effectively deal with economic, business, or market slowdowns or disruptions;
|
•
|
judicial, regulatory, or administrative investigations, proceedings, disputes, or rulings that create uncertainty for, or are adverse to, us or the financial services industry;
|
•
|
our ability to address stricter or heightened regulatory or supervisory requirements;
|
•
|
our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or facilities, including our capacity to withstand cyber-attacks;
|
•
|
the adequacy of our corporate governance, risk management framework, compliance programs, or internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting or to effectively mitigate or manage operational risk;
|
•
|
the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk;
|
•
|
our ability to keep pace with changes in technology that affect us or our customers, counterparties, service providers, or competitors;
|
•
|
our ability to successfully make and integrate acquisitions;
|
•
|
the adequacy of our succession planning for key executives or other personnel and to attract or retain qualified employees;
|
•
|
natural or man-made disasters, calamities, or conflicts, including terrorist events and pandemics; or
|
•
|
other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in this Annual Report on Form 10-K or described in any of the Company’s annual, quarterly or current reports.
|
•
|
acquired technology assets and expertise from Blue Yield, an online automotive lender exchange, advancing our progress in building a direct-to-consumer option;
|
•
|
reached an agreement to provide up to $600 million in purchases of retail installment sales contracts and warehouse financing for Carvana, an online automotive retailer; and
|
•
|
added to our vehicle financing capability with the formation of an experienced transportation and equipment finance team.
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Total net revenue (loss)
|
|
|
|
|
|
|
|
|
|
||||||
Dealer Financial Services
|
|
|
|
|
|
|
|
|
|
||||||
Automotive Finance
|
|
$
|
3,971
|
|
|
$
|
3,664
|
|
|
$
|
3,585
|
|
|
8
|
2
|
Insurance
|
|
1,097
|
|
|
1,090
|
|
|
1,185
|
|
|
1
|
(8)
|
|||
Mortgage Finance
|
|
97
|
|
|
57
|
|
|
36
|
|
|
70
|
58
|
|||
Corporate Finance
|
|
147
|
|
|
114
|
|
|
91
|
|
|
29
|
25
|
|||
Corporate and Other
|
|
125
|
|
|
(64
|
)
|
|
(246
|
)
|
|
n/m
|
74
|
|||
Total
|
|
$
|
5,437
|
|
|
$
|
4,861
|
|
|
$
|
4,651
|
|
|
12
|
5
|
Income (loss) from continuing operations before income tax expense
|
|
|
|
|
|
|
|
|
|
||||||
Dealer Financial Services
|
|
|
|
|
|
|
|
|
|
||||||
Automotive Finance
|
|
$
|
1,380
|
|
|
$
|
1,335
|
|
|
$
|
1,429
|
|
|
3
|
(7)
|
Insurance
|
|
157
|
|
|
211
|
|
|
197
|
|
|
(26)
|
7
|
|||
Mortgage Finance
|
|
34
|
|
|
11
|
|
|
12
|
|
|
n/m
|
(8)
|
|||
Corporate Finance
|
|
71
|
|
|
50
|
|
|
64
|
|
|
42
|
(22)
|
|||
Corporate and Other
|
|
(61
|
)
|
|
(214
|
)
|
|
(456
|
)
|
|
71
|
53
|
|||
Total
|
|
$
|
1,581
|
|
|
$
|
1,393
|
|
|
$
|
1,246
|
|
|
13
|
12
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||
Total financing revenue and other interest income
|
|
$
|
8,305
|
|
|
$
|
8,397
|
|
|
$
|
8,391
|
|
|
(1)
|
|
—
|
Total interest expense
|
|
2,629
|
|
|
2,429
|
|
|
2,783
|
|
|
(8)
|
|
13
|
|||
Net depreciation expense on operating lease assets
|
|
1,769
|
|
|
2,249
|
|
|
2,233
|
|
|
21
|
|
(1)
|
|||
Net financing revenue and other interest income
|
|
3,907
|
|
|
3,719
|
|
|
3,375
|
|
|
5
|
|
10
|
|||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance premiums and service revenue earned
|
|
945
|
|
|
940
|
|
|
979
|
|
|
1
|
|
(4)
|
|||
Gain on mortgage and automotive loans, net
|
|
11
|
|
|
45
|
|
|
7
|
|
|
(76)
|
|
n/m
|
|||
Loss on extinguishment of debt
|
|
(5
|
)
|
|
(357
|
)
|
|
(202
|
)
|
|
99
|
|
(77)
|
|||
Other gain on investments, net
|
|
185
|
|
|
155
|
|
|
181
|
|
|
19
|
|
(14)
|
|||
Other income, net of losses
|
|
394
|
|
|
359
|
|
|
311
|
|
|
10
|
|
15
|
|||
Total other revenue
|
|
1,530
|
|
|
1,142
|
|
|
1,276
|
|
|
34
|
|
(11)
|
|||
Total net revenue
|
|
5,437
|
|
|
4,861
|
|
|
4,651
|
|
|
12
|
|
5
|
|||
Provision for loan losses
|
|
917
|
|
|
707
|
|
|
457
|
|
|
(30)
|
|
(55)
|
|||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
992
|
|
|
963
|
|
|
947
|
|
|
(3)
|
|
(2)
|
|||
Insurance losses and loss adjustment expenses
|
|
342
|
|
|
293
|
|
|
410
|
|
|
(17)
|
|
29
|
|||
Other operating expenses
|
|
1,605
|
|
|
1,505
|
|
|
1,591
|
|
|
(7)
|
|
5
|
|||
Total noninterest expense
|
|
2,939
|
|
|
2,761
|
|
|
2,948
|
|
|
(6)
|
|
6
|
|||
Income from continuing operations before income tax expense
|
|
1,581
|
|
|
1,393
|
|
|
1,246
|
|
|
13
|
|
12
|
|||
Income tax expense from continuing operations
|
|
470
|
|
|
496
|
|
|
321
|
|
|
5
|
|
(55)
|
|||
Net income from continuing operations
|
|
$
|
1,111
|
|
|
$
|
897
|
|
|
$
|
925
|
|
|
24
|
|
(3)
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||
Consumer
|
|
$
|
3,587
|
|
|
$
|
3,230
|
|
|
$
|
3,046
|
|
|
11
|
|
6
|
Commercial
|
|
1,068
|
|
|
939
|
|
|
1,024
|
|
|
14
|
|
(8)
|
|||
Loans held-for-sale
|
|
—
|
|
|
34
|
|
|
—
|
|
|
(100)
|
|
n/m
|
|||
Operating leases
|
|
2,711
|
|
|
3,398
|
|
|
3,558
|
|
|
(20)
|
|
(4)
|
|||
Other interest income
|
|
11
|
|
|
8
|
|
|
10
|
|
|
38
|
|
(20)
|
|||
Total financing revenue and other interest income
|
|
7,377
|
|
|
7,609
|
|
|
7,638
|
|
|
(3)
|
|
—
|
|||
Interest expense
|
|
1,943
|
|
|
1,931
|
|
|
2,084
|
|
|
(1)
|
|
7
|
|||
Net depreciation expense on operating lease assets
|
|
1,769
|
|
|
2,249
|
|
|
2,233
|
|
|
21
|
|
(1)
|
|||
Net financing revenue and other interest income
|
|
3,665
|
|
|
3,429
|
|
|
3,321
|
|
|
7
|
|
3
|
|||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||
Gain (loss) on automotive loans, net
|
|
17
|
|
|
(23
|
)
|
|
10
|
|
|
174
|
|
n/m
|
|||
Other income
|
|
289
|
|
|
258
|
|
|
254
|
|
|
12
|
|
2
|
|||
Total other revenue
|
|
306
|
|
|
235
|
|
|
264
|
|
|
30
|
|
(11)
|
|||
Total net revenue
|
|
3,971
|
|
|
3,664
|
|
|
3,585
|
|
|
8
|
|
2
|
|||
Provision for loan losses
|
|
924
|
|
|
696
|
|
|
542
|
|
|
(33)
|
|
(28)
|
|||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
481
|
|
|
489
|
|
|
454
|
|
|
2
|
|
(8)
|
|||
Other operating expenses
|
|
1,186
|
|
|
1,144
|
|
|
1,160
|
|
|
(4)
|
|
1
|
|||
Total noninterest expense
|
|
1,667
|
|
|
1,633
|
|
|
1,614
|
|
|
(2)
|
|
(1)
|
|||
Income from continuing operations before income tax expense
|
|
$
|
1,380
|
|
|
$
|
1,335
|
|
|
$
|
1,429
|
|
|
3
|
|
(7)
|
Total assets
|
|
$
|
116,347
|
|
|
$
|
115,636
|
|
|
$
|
113,188
|
|
|
1
|
|
2
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net operating lease revenue
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating lease revenue
|
|
$
|
2,711
|
|
|
$
|
3,398
|
|
|
$
|
3,558
|
|
|
(20)
|
|
(4)
|
Depreciation expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation expense on operating lease assets (excluding remarketing gains)
|
|
1,982
|
|
|
2,600
|
|
|
2,666
|
|
|
24
|
|
2
|
|||
Remarketing gains
|
|
(213
|
)
|
|
(351
|
)
|
|
(433
|
)
|
|
(39)
|
|
(19)
|
|||
Net depreciation expense on operating lease assets
|
|
1,769
|
|
|
2,249
|
|
|
2,233
|
|
|
21
|
|
(1)
|
|||
Total net operating lease revenue
|
|
$
|
942
|
|
|
$
|
1,149
|
|
|
$
|
1,325
|
|
|
(18)
|
|
(13)
|
Investment in operating leases, net
|
|
$
|
11,470
|
|
|
$
|
16,271
|
|
|
$
|
19,510
|
|
|
(30)
|
|
(17)
|
Credit Tier (a)
|
|
Volume
(
$ in billions
)
|
|
% Share of volume
|
|
Average FICO®
|
|||
Year ended December 31, 2016
|
|
|
|
|
|
|
|||
S
|
|
$
|
10.6
|
|
|
32
|
|
760
|
|
A
|
|
13.6
|
|
|
42
|
|
669
|
|
|
B
|
|
6.8
|
|
|
21
|
|
642
|
|
|
C
|
|
1.6
|
|
|
5
|
|
608
|
|
|
Total retail originations
|
|
$
|
32.6
|
|
|
100
|
|
688
|
|
Year ended December 31, 2015
|
|
|
|
|
|
|
|||
S
|
|
$
|
12.7
|
|
|
35
|
|
753
|
|
A
|
|
13.8
|
|
|
38
|
|
670
|
|
|
B
|
|
7.2
|
|
|
20
|
|
636
|
|
|
C
|
|
2.4
|
|
|
6
|
|
600
|
|
|
D
|
|
0.2
|
|
|
1
|
|
571
|
|
|
Total retail originations
|
|
$
|
36.3
|
|
|
100
|
|
687
|
|
Year ended December 31, 2014
|
|
|
|
|
|
|
|||
S
|
|
$
|
9.7
|
|
|
33
|
|
777
|
|
A
|
|
11.0
|
|
|
37
|
|
688
|
|
|
B
|
|
6.1
|
|
|
21
|
|
647
|
|
|
C
|
|
2.4
|
|
|
8
|
|
611
|
|
|
D
|
|
0.4
|
|
|
1
|
|
575
|
|
|
Total retail originations
|
|
$
|
29.6
|
|
|
100
|
|
700
|
|
(a)
|
Represents Ally's internal credit score, incorporating numerous borrower and structure attributes including: FICO® Score; severity and aging of delinquency; number of credit inquiries; loan-to-value ratio; and payment-to-income ratio. We originated an insignificant amount of retail loans classified as Tier D during the
year ended
December 31, 2016
, and Tier E during the years ended
December 31, 2016
, 2015, and 2014.
|
Year ended December 31,
|
|
2016
|
|
2015
|
|
2014
|
|||
Pre-2012
|
|
1
|
%
|
|
4
|
%
|
|
12
|
%
|
2012
|
|
3
|
|
|
9
|
|
|
18
|
|
2013
|
|
7
|
|
|
14
|
|
|
27
|
|
2014
|
|
13
|
|
|
24
|
|
|
43
|
|
2015
|
|
31
|
|
|
49
|
|
|
—
|
|
2016
|
|
45
|
|
|
—
|
|
|
—
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
|
Consumer automotive
financing originations |
|
% Share of
Ally originations |
||||||||||||||
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||
New retail standard
|
|
$
|
16,993
|
|
|
$
|
19,220
|
|
|
$
|
13,913
|
|
|
47
|
|
47
|
|
34
|
Used retail
|
|
15,259
|
|
|
14,842
|
|
|
11,714
|
|
|
42
|
|
36
|
|
28
|
|||
Lease
|
|
3,385
|
|
|
4,702
|
|
|
11,332
|
|
|
10
|
|
11
|
|
28
|
|||
New retail subvented
|
|
367
|
|
|
2,244
|
|
|
3,992
|
|
|
1
|
|
6
|
|
10
|
|||
Total consumer automotive financing originations (a) (b)
|
|
$
|
36,004
|
|
|
$
|
41,008
|
|
|
$
|
40,951
|
|
|
100
|
|
100
|
|
100
|
(a)
|
Includes CSG originations of
$3.6 billion
,
$3.8 billion
, and $3.8 billion for the years ended
December 31, 2016
,
2015
, and 2014, respectively, and RV originations of
$504 million
, $514 million, and $461 million for years ended
December 31, 2016
,
2015
, and 2014, respectively.
|
(b)
|
On September 16, 2015, we entered into agreements with Mitsubishi Motors Credit of America, Inc. (MMCA) affiliates providing us the beneficial interest in MMCA’s consumer loan and lease portfolio, which included $0.6 billion of retail and lease contracts in 2015. These assets have been excluded from the amounts presented.
|
|
|
Consumer automotive
financing originations |
|
% Share of
Ally originations |
||||||||||||||
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||
Growth (a)
|
|
$
|
13,082
|
|
|
$
|
12,748
|
|
|
$
|
8,323
|
|
|
36
|
|
31
|
|
20
|
GM
|
|
12,960
|
|
|
18,666
|
|
|
25,847
|
|
|
36
|
|
46
|
|
63
|
|||
Chrysler
|
|
9,962
|
|
|
9,594
|
|
|
6,781
|
|
|
28
|
|
23
|
|
17
|
|||
Total consumer automotive financing originations (b)
|
|
$
|
36,004
|
|
|
$
|
41,008
|
|
|
$
|
40,951
|
|
|
100
|
|
100
|
|
100
|
(a)
|
Includes Carvana purchased originations of $21 million for the year ended
December 31, 2016
.
|
(b)
|
Excludes consumer loans and leases purchased from MMCA of $0.6 billion in 2015.
|
Year ended December 31,
|
|
2016
|
|
2015
|
|
2014
|
|||
0
–
71
|
|
18
|
%
|
|
21
|
%
|
|
26
|
%
|
72
–
75
|
|
67
|
|
|
68
|
|
|
72
|
|
76 +
|
|
15
|
|
|
11
|
|
|
2
|
|
Total retail originations (a)
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(a)
|
Excludes RV loans.
|
Year ended December 31,
|
|
2016
|
|
2015
|
|
2014
|
|||
740 +
|
|
24
|
%
|
|
26
|
%
|
|
35
|
%
|
739
–
660
|
|
36
|
|
|
34
|
|
|
34
|
|
659
–
620
|
|
24
|
|
|
22
|
|
|
17
|
|
619
–
540
|
|
10
|
|
|
12
|
|
|
8
|
|
< 540
|
|
1
|
|
|
1
|
|
|
1
|
|
Unscored (a)
|
|
5
|
|
|
5
|
|
|
5
|
|
Total consumer automotive financing originations
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(a)
|
Unscored are primarily CSG contracts with entities that have no FICO® Score.
|
•
|
Sale to dealer
— After the lessee declines an option to purchase the off-lease vehicle, the dealer who accepts the returned off-lease vehicle has the opportunity to purchase the vehicle directly from us at a price we define.
|
•
|
Internet auctions
— Once the lessee and dealer decline their options to purchase, we offer off-lease vehicles to dealers and certain other third parties through our proprietary internet site (SmartAuction). This internet sales program seeks to maximize the net sales proceeds from off-lease vehicles by reducing the time between vehicle return and ultimate disposition, reducing holding costs, and broadening the number of prospective buyers. We use the internet auction ourselves, and also maintain the internet auction site and administer the auction process for third-party use. We earn a service fee for every third-party vehicle sold through SmartAuction. In 2016, approximately 364,000 vehicles were sold through the internet site.
|
•
|
Physical auctions
— We dispose of our off-lease vehicles not purchased at termination by the lease consumer or dealer or sold on an internet auction through traditional third-party, physical auctions. We are responsible for handling decisions at the auction including arranging for inspections, authorizing repairs and reconditioning, and determining whether bids received at auction should be accepted.
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Insurance premiums and other income
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance premiums and service revenue earned
|
|
$
|
945
|
|
|
$
|
940
|
|
|
$
|
979
|
|
|
1
|
|
(4)
|
Investment income, net (a)
|
|
136
|
|
|
134
|
|
|
194
|
|
|
1
|
|
(31)
|
|||
Other income
|
|
16
|
|
|
16
|
|
|
12
|
|
|
—
|
|
33
|
|||
Total insurance premiums and other income
|
|
1,097
|
|
|
1,090
|
|
|
1,185
|
|
|
1
|
|
(8)
|
|||
Expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Insurance losses and loss adjustment expenses
|
|
342
|
|
|
293
|
|
|
410
|
|
|
(17)
|
|
29
|
|||
Acquisition and underwriting expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
68
|
|
|
68
|
|
|
63
|
|
|
—
|
|
(8)
|
|||
Insurance commissions expense
|
|
389
|
|
|
378
|
|
|
374
|
|
|
(3)
|
|
(1)
|
|||
Other expenses
|
|
141
|
|
|
140
|
|
|
141
|
|
|
(1)
|
|
1
|
|||
Total acquisition and underwriting expense
|
|
598
|
|
|
586
|
|
|
578
|
|
|
(2)
|
|
(1)
|
|||
Total expense
|
|
940
|
|
|
879
|
|
|
988
|
|
|
(7)
|
|
11
|
|||
Income from continuing operations before income tax expense
|
|
$
|
157
|
|
|
$
|
211
|
|
|
$
|
197
|
|
|
(26)
|
|
7
|
Total assets
|
|
$
|
7,172
|
|
|
$
|
7,053
|
|
|
$
|
7,190
|
|
|
2
|
|
(2)
|
Insurance premiums and service revenue written
|
|
$
|
948
|
|
|
$
|
977
|
|
|
$
|
1,023
|
|
|
(3)
|
|
(4)
|
Combined ratio (b)
|
|
98.7
|
%
|
|
92.8
|
%
|
|
100.2
|
%
|
|
|
|
|
(a)
|
Includes realized gains on investments of
$84 million
,
$85 million
, and
$143 million
for the
years ended
December 31, 2016
,
2015
, and
2014
, respectively; and interest expense of
$47 million
,
$50 million
, and
$54 million
, for the
years ended
December 31, 2016
,
2015
, and
2014
, respectively.
|
(b)
|
Management uses a combined ratio as a primary measure of underwriting profitability. Underwriting profitability is indicated by a combined ratio under 100% and is calculated as the sum of all incurred losses and expenses (excluding interest and income tax expense) divided by the total of premiums and service revenues earned and other fee income.
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
2014
|
||||||
Vehicle service contracts
|
|
|
|
|
|
||||||
New retail
|
|
$
|
444
|
|
|
$
|
436
|
|
$
|
422
|
|
Used retail
|
|
427
|
|
|
485
|
|
509
|
|
|||
Reinsurance (a)
|
|
(189
|
)
|
|
(178
|
)
|
(152
|
)
|
|||
Total vehicle service contracts (b)
|
|
682
|
|
|
743
|
|
779
|
|
|||
Wholesale
|
|
191
|
|
|
169
|
|
186
|
|
|||
Other finance and insurance (c)
|
|
75
|
|
|
65
|
|
58
|
|
|||
Total
|
|
$
|
948
|
|
|
$
|
977
|
|
$
|
1,023
|
|
(a)
|
Reinsurance represents the transfer of premiums and risk from an Ally insurance company to a third-party insurance company.
|
(b)
|
VSC revenue is earned over the life of the service contract on a basis proportionate to the anticipated cost pattern.
|
(c)
|
Other finance and insurance includes GAP coverage, excess wear and tear, and other ancillary products.
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Cash
|
|
|
|
|
||||
Noninterest-bearing cash
|
|
$
|
273
|
|
|
$
|
293
|
|
Interest-bearing cash
|
|
612
|
|
|
995
|
|
||
Total cash
|
|
885
|
|
|
1,288
|
|
||
Available-for-sale securities
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
||||
U.S. Treasury and federal agencies
|
|
299
|
|
|
269
|
|
||
U.S. States and political subdivisions
|
|
744
|
|
|
698
|
|
||
Foreign government
|
|
162
|
|
|
177
|
|
||
Agency mortgage-backed residential
|
|
633
|
|
|
268
|
|
||
Mortgage-backed residential
|
|
227
|
|
|
387
|
|
||
Mortgage-backed commercial
|
|
39
|
|
|
39
|
|
||
Asset-backed
|
|
6
|
|
|
6
|
|
||
Corporate debt
|
|
1,443
|
|
|
1,204
|
|
||
Total debt securities
|
|
3,553
|
|
|
3,048
|
|
||
Equity securities
|
|
595
|
|
|
717
|
|
||
Total available-for-sale securities
|
|
4,148
|
|
|
3,765
|
|
||
Total cash and securities
|
|
$
|
5,033
|
|
|
$
|
5,053
|
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||
Total financing revenue and other interest income
|
|
$
|
250
|
|
|
$
|
177
|
|
|
$
|
119
|
|
|
41
|
|
49
|
Interest expense
|
|
153
|
|
|
120
|
|
|
83
|
|
|
(28)
|
|
(45)
|
|||
Net financing revenue and other interest income
|
|
97
|
|
|
57
|
|
|
36
|
|
|
70
|
|
58
|
|||
Provision for loan losses
|
|
(4
|
)
|
|
7
|
|
|
3
|
|
|
157
|
|
(133)
|
|||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
13
|
|
|
5
|
|
|
2
|
|
|
(160)
|
|
(150)
|
|||
Other operating expenses
|
|
54
|
|
|
34
|
|
|
19
|
|
|
(59)
|
|
(79)
|
|||
Total noninterest expense
|
|
67
|
|
|
39
|
|
|
21
|
|
|
(72)
|
|
(86)
|
|||
Income from continuing operations before income tax expense
|
|
$
|
34
|
|
|
$
|
11
|
|
|
$
|
12
|
|
|
n/m
|
|
(8)
|
Total assets
|
|
$
|
8,307
|
|
|
$
|
6,461
|
|
|
$
|
3,542
|
|
|
29
|
|
82
|
Product
|
|
Net UPB (a)
($ in millions)
|
|
% of total net UPB
|
|
WAC
|
|
Net premium
($ in millions)
|
|
Average refreshed LTV (b)
|
|
Average refreshed FICO® (c)
|
|||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjustable-rate
|
|
$
|
2,488
|
|
|
31
|
|
3.34
|
%
|
|
$
|
42
|
|
|
57.94
|
%
|
|
773
|
|
Fixed-rate
|
|
5,633
|
|
|
69
|
|
4.02
|
|
|
131
|
|
|
60.47
|
|
|
772
|
|
||
Total
|
|
$
|
8,121
|
|
|
100
|
|
3.81
|
|
|
$
|
173
|
|
|
59.69
|
|
|
772
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjustable-rate
|
|
$
|
2,268
|
|
|
36
|
|
3.35
|
%
|
|
$
|
37
|
|
|
58.52
|
%
|
|
771
|
|
Fixed-rate
|
|
4,021
|
|
|
64
|
|
4.10
|
|
|
87
|
|
|
61.42
|
|
|
768
|
|
||
Total
|
|
$
|
6,289
|
|
|
100
|
|
3.83
|
|
|
$
|
124
|
|
|
60.37
|
|
|
769
|
|
(a)
|
Represents UPB net of charge-offs.
|
(b)
|
Updated home values were derived using a combination of appraisals, broker price opinions, automated valuation models, and metropolitan statistical area level house price indices.
|
(c)
|
Updated to reflect changes in credit score since loan origination.
|
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest and fees on finance receivables and loans
|
|
$
|
192
|
|
|
$
|
143
|
|
|
$
|
116
|
|
|
34
|
|
23
|
Interest expense
|
|
71
|
|
|
54
|
|
|
57
|
|
|
(31)
|
|
5
|
|||
Net financing revenue and other interest income
|
|
121
|
|
|
89
|
|
|
59
|
|
|
36
|
|
51
|
|||
Total other revenue
|
|
26
|
|
|
25
|
|
|
32
|
|
|
4
|
|
(22)
|
|||
Total net revenue
|
|
147
|
|
|
114
|
|
|
91
|
|
|
29
|
|
25
|
|||
Provision for loan losses
|
|
10
|
|
|
9
|
|
|
(16
|
)
|
|
(11)
|
|
(156)
|
|||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Compensation and benefits expense
|
|
38
|
|
|
32
|
|
|
29
|
|
|
(19)
|
|
(10)
|
|||
Other operating expenses
|
|
28
|
|
|
23
|
|
|
14
|
|
|
(22)
|
|
(64)
|
|||
Total noninterest expense
|
|
66
|
|
|
55
|
|
|
43
|
|
|
(20)
|
|
(28)
|
|||
Income from continuing operations before income tax expense
|
|
$
|
71
|
|
|
$
|
50
|
|
|
$
|
64
|
|
|
42
|
|
(22)
|
Total assets
|
|
$
|
3,183
|
|
|
$
|
2,677
|
|
|
$
|
1,870
|
|
|
19
|
|
43
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Loans held-for-sale, net
|
|
$
|
—
|
|
|
$
|
105
|
|
Finance receivables and loans
|
|
$
|
3,180
|
|
|
$
|
2,568
|
|
Unfunded lending commitments (a)
|
|
$
|
1,483
|
|
|
$
|
1,136
|
|
(a)
|
Includes unused revolving credit line commitments for loans held-for-sale and finance receivables and loans, signed commitment letters, and standby letter of credit facilities, which are issued on behalf of clients and may contingently require us to make payments to a third-party beneficiary should the client fail to fulfill a contractual commitment.
|
December 31,
|
|
2016
|
|
2015
|
||
Industry
|
|
|
|
|
||
Services
|
|
27.4
|
%
|
|
22.8
|
%
|
Automotive and transportation
|
|
13.5
|
|
|
7.1
|
|
Health services
|
|
12.0
|
|
|
13.4
|
|
Wholesale
|
|
8.9
|
|
|
9.7
|
|
Other manufactured products
|
|
8.8
|
|
|
10.2
|
|
Machinery, equipment, and electronics
|
|
6.6
|
|
|
8.5
|
|
Chemicals and metals
|
|
5.8
|
|
|
13.4
|
|
Retail trade
|
|
5.1
|
|
|
3.8
|
|
Food and beverages
|
|
4.2
|
|
|
2.8
|
|
Paper, printing, and publishing
|
|
3.2
|
|
|
3.6
|
|
Other
|
|
4.5
|
|
|
4.7
|
|
Total finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
|
Favorable/(unfavorable) 2016–2015 % change
|
|
Favorable/(unfavorable) 2015–2014 % change
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||
Total financing revenue and other interest income
|
|
$
|
378
|
|
|
$
|
361
|
|
|
$
|
408
|
|
|
5
|
|
(12)
|
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||
Original issue discount amortization
|
|
78
|
|
|
62
|
|
|
189
|
|
|
(26)
|
|
67
|
|||
Other interest expense
|
|
337
|
|
|
212
|
|
|
316
|
|
|
(59)
|
|
33
|
|||
Total interest expense
|
|
415
|
|
|
274
|
|
|
505
|
|
|
(51)
|
|
46
|
|||
Net financing revenue and other interest income (a)
|
|
(37
|
)
|
|
87
|
|
|
(97
|
)
|
|
(143)
|
|
190
|
|||
Other revenue (expense)
|
|
|
|
|
|
|
|
|
|
|
||||||
(Loss) gain on mortgage loans, net
|
|
(6
|
)
|
|
68
|
|
|
(3
|
)
|
|
(109)
|
|
n/m
|
|||
Loss on extinguishment of debt
|
|
(5
|
)
|
|
(357
|
)
|
|
(202
|
)
|
|
99
|
|
(77)
|
|||
Other gain on investments, net
|
|
101
|
|
|
70
|
|
|
38
|
|
|
44
|
|
84
|
|||
Other income, net of losses
|
|
72
|
|
|
68
|
|
|
18
|
|
|
6
|
|
n/m
|
|||
Total other revenue (expense)
|
|
162
|
|
|
(151
|
)
|
|
(149
|
)
|
|
n/m
|
|
(1)
|
|||
Total net revenue
|
|
125
|
|
|
(64
|
)
|
|
(246
|
)
|
|
n/m
|
|
74
|
|||
Provision for loan losses
|
|
(13
|
)
|
|
(5
|
)
|
|
(72
|
)
|
|
160
|
|
(93)
|
|||
Total noninterest expense (b)
|
|
199
|
|
|
155
|
|
|
282
|
|
|
(28)
|
|
45
|
|||
Loss from continuing operations before income tax expense
|
|
$
|
(61
|
)
|
|
$
|
(214
|
)
|
|
$
|
(456
|
)
|
|
71
|
|
53
|
Total assets
|
|
$
|
28,719
|
|
|
$
|
26,754
|
|
|
$
|
25,841
|
|
|
7
|
|
4
|
(a)
|
Refer to the table that follows for further details on the components of net financing revenue and other interest income.
|
(b)
|
Includes a reduction of
$770 million
,
$755 million
, and
$759 million
for the
years ended
December 31, 2016
,
2015
,
2014
, respectively, related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense within other operating expense.
|
At and for the year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Original issue discount amortization (a)
|
|
$
|
(78
|
)
|
|
$
|
(62
|
)
|
|
$
|
(189
|
)
|
Net impact of the funds-transfer pricing methodology
|
|
9
|
|
|
118
|
|
|
68
|
|
|||
Other (including legacy mortgage net financing revenue and other interest income)
|
|
32
|
|
|
31
|
|
|
24
|
|
|||
Net financing revenue and other interest income for Corporate and Other
|
|
$
|
(37
|
)
|
|
$
|
87
|
|
|
$
|
(97
|
)
|
Outstanding original issue discount balance
|
|
$
|
1,326
|
|
|
$
|
1,391
|
|
|
$
|
1,415
|
|
(a)
|
Amortization is included as interest on long-term debt in the
Consolidated Statement of Income
.
|
Year ended December 31,
($ in millions)
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022 and thereafter (a)
|
|
Total
|
||||||||||||||
Original issue discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Outstanding balance
|
|
$
|
1,235
|
|
|
$
|
1,134
|
|
|
$
|
1,095
|
|
|
$
|
1,056
|
|
|
$
|
1,013
|
|
|
$
|
—
|
|
|
|
||
Total amortization (b)
|
|
91
|
|
|
101
|
|
|
39
|
|
|
39
|
|
|
43
|
|
|
1,013
|
|
|
$
|
1,326
|
|
(a)
|
The maximum annual scheduled amortization for any individual year is $153 million in 2030.
|
(b)
|
The amortization is included as interest on long-term debt on the
Consolidated Statement of Income
.
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Cash
|
|
|
|
|
||||
Noninterest-bearing cash
|
|
$
|
1,249
|
|
|
$
|
1,829
|
|
Interest-bearing cash
|
|
3,770
|
|
|
3,232
|
|
||
Total cash
|
|
5,019
|
|
|
5,061
|
|
||
Available-for-sale securities
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
||||
U.S. Treasury and federal agencies
|
|
1,321
|
|
|
1,472
|
|
||
U.S. States and political subdivisions
|
|
38
|
|
|
18
|
|
||
Mortgage-backed residential
|
|
1,870
|
|
|
2,435
|
|
||
Agency mortgage-backed residential
|
|
9,657
|
|
|
7,276
|
|
||
Mortgage-backed commercial
|
|
498
|
|
|
442
|
|
||
Asset-backed
|
|
1,394
|
|
|
1,749
|
|
||
Total available-for-sale securities
|
|
14,778
|
|
|
13,392
|
|
||
Total held-to-maturity securities
|
|
789
|
|
|
—
|
|
||
Total cash and securities
|
|
$
|
20,586
|
|
|
$
|
18,453
|
|
|
|
4th Quarter 2016
|
|
3rd Quarter 2016
|
||||
Trading days (a)
|
|
62.5
|
|
|
64
|
|
||
Average customer trades per day (
in thousands
)
|
|
18
|
|
|
17
|
|
||
Funded accounts (b) (
in thousands
)
|
|
244
|
|
|
240
|
|
||
Total net customer assets
($ in millions)
|
|
$
|
4,771
|
|
|
$
|
4,678
|
|
Total customer cash balances
($ in millions)
|
|
$
|
1,253
|
|
|
$
|
1,177
|
|
(a)
|
Represents the number of days the New York Stock Exchange and other U.S. stock exchange markets are open for trading. A half day represents a day when the U.S. markets close early.
|
(b)
|
Represents open and funded brokerage accounts.
|
•
|
Credit risk
— The risk of loss arising from an obligor not meeting its contractual obligations to Ally.
|
•
|
Lease Residual risk
— The risk of loss arising from the possibility that the actual proceeds realized upon the sale of returned vehicles will be lower than the projection of the values used in establishing the pricing at lease inception.
|
•
|
Market risk
— The risk of loss arising from changes in the fair value of our assets or liabilities (including derivatives) caused by movements in market variables, such as interest rates, foreign-exchange rates, and equity and commodity prices.
|
•
|
Operational risk
— The risk of loss or harm arising from inadequate or failed processes or systems, human factors, or external events.
|
•
|
Insurance/Underwriting risk
— The risk of loss associated with insured events occurring, the severity of insured events, and the timing of claim payments arising from insured events.
|
•
|
Business/Strategic risk
—
The risk resulting from the pursuit of business plans that turn out to be unsuccessful because of, for example, uninformed business decisions, inadequate resource allocation, or failure to respond well to changes in the business and competitive environment.
|
•
|
Reputation risk
— The risk to earnings or capital arising from negative public opinion.
|
•
|
Liquidity risk
— The risk that our financial condition or overall safety and soundness is adversely affected by an inability, or perceived inability, to meet our financial obligations, and to withstand unforeseen liquidity stress events (refer to discussion in the section titled
Liquidity Management, Funding, and Regulatory Capital
within this MD&A).
|
December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
||||
Finance receivables and loans
|
|
|
|
|
||||
Automotive Finance
|
|
$
|
104,646
|
|
|
$
|
99,187
|
|
Mortgage Finance
|
|
8,294
|
|
|
6,413
|
|
||
Corporate Finance
|
|
3,180
|
|
|
2,568
|
|
||
Corporate and Other (a)
|
|
2,824
|
|
|
3,432
|
|
||
Total finance receivables and loans
|
|
118,944
|
|
|
111,600
|
|
||
Loans held-for-sale
|
|
|
|
|
||||
Corporate Finance
|
|
—
|
|
|
105
|
|
||
Total on-balance sheet loans
|
|
118,944
|
|
|
111,705
|
|
||
Off-balance sheet securitized loans
|
|
|
|
|
||||
Automotive Finance (b)
|
|
2,392
|
|
|
2,529
|
|
||
Whole-loan sales
|
|
|
|
|
||||
Automotive Finance (b)
|
|
3,164
|
|
|
2,252
|
|
||
Operating lease assets
|
|
|
|
|
||||
Automotive Finance
|
|
11,470
|
|
|
16,271
|
|
||
Total loan and lease exposure
|
|
$
|
135,970
|
|
|
$
|
132,757
|
|
Serviced loans and leases
|
|
|
|
|
||||
Automotive Finance
|
|
$
|
121,480
|
|
|
$
|
119,808
|
|
Mortgage Finance
|
|
8,294
|
|
|
6,413
|
|
||
Corporate Finance
|
|
2,991
|
|
|
2,532
|
|
||
Corporate and Other
|
|
2,757
|
|
|
3,360
|
|
||
Total serviced loans and leases
|
|
$
|
135,522
|
|
|
$
|
132,113
|
|
(a)
|
Includes
$2.8 billion
and
$3.4 billion
of consumer mortgage loans in our Mortgage — Legacy portfolio at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(b)
|
Represents the current unpaid principal balance of outstanding loans based on our customary representation and warranty provisions.
|
•
|
Finance receivables and loans
— Loans that we have the intent and ability to hold for the foreseeable future or until maturity, or loans associated with an on-balance sheet securitization classified as secured borrowing.
Finance receivables and loans are reported at their gross carrying value, which includes the principal amount outstanding, net of unamortized deferred fees and costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. We refer to the gross carrying value less the allowance for loan loss as the net carrying value in finance receivables and loans.
We manage the economic risks of these exposures, including credit risk, by adjusting underwriting standards and risk limits, augmenting our servicing and collection activities (including loan modifications and restructurings), and optimizing our product and geographic concentrations. Additionally, we may elect to account for certain mortgage loans at fair value. Changes in the fair value of these loans are recognized in a valuation allowance separate from the allowance for loan losses and are reflected in current period earnings. We use market-based instruments, such as derivatives, to hedge changes in the fair value of these loans.
|
•
|
Loans held-for-sale
— Loans that we do not have the intent and ability to hold for the foreseeable future or until maturity. These loans are recorded on our balance sheet at the lower of their net carrying value or fair market value and are evaluated by portfolio and product type. Changes in the recorded value are recognized in a valuation allowance and reflected in current period earnings. We manage the economic risks of these exposures, including market and credit risks, in various ways including the use of market-based instruments, such as derivatives.
|
•
|
Off-balance sheet securitized loans
— Loans that we transfer off-balance sheet to nonconsolidated variable interest entities. Our exposure is primarily limited to customary representation and warranty provisions. Similar to finance receivables and loans, we manage the economic risks of these exposures through activities including servicing and collections.
|
•
|
Whole-loan sales
— Loans that we transfer off-balance sheet to third-party investors. Our exposure is primarily limited to customary representation and warranty provisions. Similar to finance receivables and loans, we manage the economic risks of these exposures through activities including servicing and collections.
|
•
|
Operating lease assets
— The net book value of the automotive assets we lease includes the expected residual values upon remarketing the vehicles at the end of the lease and is reported net of accumulated depreciation. We are exposed to fluctuations in the expected residual value upon remarketing the vehicle at the end of the lease, and as such at contract inception, we determine pricing based on the projected residual value of the lease vehicle. This evaluation is primarily based on a proprietary model, which includes variables such as age, expected mileage, seasonality, segment factors, vehicle type, economic indicators, production cycle, automotive manufacturer incentives, and shifts in used vehicle supply. This internally-generated data is compared against third-party, independent data for reasonableness. Periodically, we revise the projected value of the lease vehicle at termination based on current market conditions and adjust depreciation expense appropriately over the remaining life of the contract. At termination, our actual sales proceeds from remarketing the vehicle may be higher or lower than the estimated residual value resulting in a gain or loss on remarketing recorded through depreciation expense. The balance sheet reflects both the lease asset as well as any associated rent receivables. The lease rent receivable is accrued when collection is reasonably assured and presented as a component of other assets. The lease asset is reviewed for impairment in accordance with applicable accounting standards.
|
•
|
Serviced loans and leases
— Loans that we service on behalf of our customers or another financial institution. As such, these loans can be on or off our balance sheet. For our serviced consumer automotive loans, we do not recognize servicing assets or liabilities because we receive a fee that adequately compensates us for the servicing costs.
|
|
|
Outstanding
|
|
Nonperforming (a)
|
|
Accruing past due 90 days or more
|
||||||||||||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance receivables and loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans at gross carrying value
|
|
$
|
76,843
|
|
|
$
|
74,065
|
|
|
$
|
697
|
|
|
$
|
603
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans at fair value
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total finance receivables and loans
|
|
76,843
|
|
|
74,065
|
|
|
697
|
|
|
603
|
|
|
—
|
|
|
—
|
|
||||||
Loans held-for-sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer loans (b)
|
|
76,843
|
|
|
74,065
|
|
|
697
|
|
|
603
|
|
|
—
|
|
|
—
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Finance receivables and loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans at gross carrying value
|
|
42,101
|
|
|
37,535
|
|
|
122
|
|
|
77
|
|
|
—
|
|
|
—
|
|
||||||
Loans held-for-sale
|
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial loans
|
|
42,101
|
|
|
37,640
|
|
|
122
|
|
|
77
|
|
|
—
|
|
|
—
|
|
||||||
Total on-balance sheet loans
|
|
$
|
118,944
|
|
|
$
|
111,705
|
|
|
$
|
819
|
|
|
$
|
680
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Includes nonaccrual TDR loans of
$286 million
and
$277 million
at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(b)
|
Includes outstanding CSG loans of
$6.7 billion
and
$6.2 billion
at
December 31, 2016
, and
December 31, 2015
, and RV loans of
$1.7 billion
and $1.5 billion at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(a)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the year for each loan category.
|
|
|
Outstanding
|
|
Nonperforming (a)
|
|
Accruing past due 90 days or more
|
||||||||||||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Consumer automotive (b) (c)
|
|
$
|
65,793
|
|
|
$
|
64,292
|
|
|
$
|
598
|
|
|
$
|
475
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
8,294
|
|
|
6,413
|
|
|
10
|
|
|
15
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage — Legacy
|
|
2,756
|
|
|
3,360
|
|
|
89
|
|
|
113
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer finance receivables and loans
|
|
$
|
76,843
|
|
|
$
|
74,065
|
|
|
$
|
697
|
|
|
$
|
603
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Includes nonaccrual TDR loans of $240 million and $233 million at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(b)
|
Includes $43 million and $66 million of fair value adjustment for loans in hedge accounting relationships at
December 31, 2016
, and
December 31, 2015
, respectively. Refer to
Note 22
to the
Consolidated Financial Statements
for additional information.
|
(c)
|
Includes outstanding CSG loans of $6.7 billion and $6.2 billion at
December 31, 2016
, and
December 31, 2015
, and RV loans of $1.7 billion and $1.5 billion at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(a)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Consumer automotive (a)
|
|
$
|
32,619
|
|
|
$
|
36,306
|
|
Consumer mortgage
|
|
7
|
|
|
2
|
|
||
Total consumer loan originations
|
|
$
|
32,626
|
|
|
$
|
36,308
|
|
(a)
|
Includes $1.2 billion of loans originated as held-for-sale during the first quarter of 2015.
|
|
|
2016 (a)
|
|
2015
|
||||||||
December 31,
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Consumer automotive
|
|
Consumer mortgage
|
||||
Texas
|
|
13.6
|
%
|
|
6.6
|
%
|
|
13.7
|
%
|
|
6.2
|
%
|
California
|
|
7.8
|
|
|
34.2
|
|
|
7.3
|
|
|
33.6
|
|
Florida
|
|
8.2
|
|
|
4.4
|
|
|
7.7
|
|
|
4.1
|
|
Pennsylvania
|
|
4.7
|
|
|
1.5
|
|
|
5.0
|
|
|
1.5
|
|
Illinois
|
|
4.3
|
|
|
3.4
|
|
|
4.4
|
|
|
4.1
|
|
Georgia
|
|
4.3
|
|
|
2.2
|
|
|
4.4
|
|
|
2.2
|
|
North Carolina
|
|
3.6
|
|
|
1.6
|
|
|
3.6
|
|
|
1.8
|
|
Ohio
|
|
3.5
|
|
|
0.5
|
|
|
3.7
|
|
|
0.6
|
|
New York
|
|
3.2
|
|
|
1.9
|
|
|
3.5
|
|
|
1.9
|
|
Michigan
|
|
2.7
|
|
|
1.9
|
|
|
3.1
|
|
|
2.4
|
|
Other United States
|
|
44.1
|
|
|
41.8
|
|
|
43.6
|
|
|
41.6
|
|
Total consumer loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
(a)
|
Presentation is in descending order as a percentage of total consumer finance receivables and loans at
December 31, 2016
.
|
|
|
Outstanding
|
|
Nonperforming (a)
|
|
Accruing past due 90 days or more
|
||||||||||||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
$
|
35,041
|
|
|
$
|
31,469
|
|
|
$
|
33
|
|
|
$
|
25
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other (b)
|
|
3,248
|
|
|
2,640
|
|
|
84
|
|
|
44
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate — Automotive
|
|
3,812
|
|
|
3,426
|
|
|
5
|
|
|
8
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial finance receivables and loans
|
|
$
|
42,101
|
|
|
$
|
37,535
|
|
|
$
|
122
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Includes nonaccrual TDR loans of $46 million and $44 million at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(b)
|
Other commercial primarily includes senior secured commercial lending.
|
|
|
Net charge-offs (recoveries)
|
|
Net charge-off ratios (a)
|
||||||||||
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
||||||
Automotive
|
|
$
|
1
|
|
|
$
|
3
|
|
|
—
|
%
|
|
—
|
%
|
Other
|
|
(2
|
)
|
|
(3
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||
Total commercial finance receivables and loans
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
Net charge-off ratios are calculated as net charge-offs divided by average outstanding finance receivables and loans excluding loans measured at fair value and loans held-for-sale during the period for each loan category.
|
December 31,
|
|
2016
|
|
2015
|
||
Texas
|
|
16.1
|
%
|
|
17.7
|
%
|
Florida
|
|
10.2
|
|
|
10.0
|
|
California
|
|
7.9
|
|
|
8.7
|
|
Michigan
|
|
7.6
|
|
|
8.9
|
|
New Jersey
|
|
4.2
|
|
|
2.1
|
|
Georgia
|
|
3.6
|
|
|
3.6
|
|
North Carolina
|
|
3.6
|
|
|
3.8
|
|
Pennsylvania
|
|
3.1
|
|
|
3.4
|
|
South Carolina
|
|
2.7
|
|
|
2.2
|
|
New York
|
|
2.6
|
|
|
3.1
|
|
Other United States
|
|
38.4
|
|
|
36.5
|
|
Total commercial real estate finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
December 31,
|
|
2016
|
|
2015
|
||
Industry
|
|
|
|
|
||
Automotive
|
|
81.2
|
%
|
|
80.5
|
%
|
Services
|
|
6.3
|
|
|
5.3
|
|
Electronics
|
|
4.2
|
|
|
3.3
|
|
Other
|
|
8.3
|
|
|
10.9
|
|
Total commercial criticized finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
December 31, 2016
(
$ in millions
)
|
Within 1 year (a)
|
|
1–5 years
|
|
After 5 years
|
|
Total (b)
|
||||||||
Commercial and industrial
|
$
|
33,802
|
|
|
$
|
3,513
|
|
|
$
|
974
|
|
|
$
|
38,289
|
|
Commercial real estate
|
209
|
|
|
1,555
|
|
|
2,048
|
|
|
3,812
|
|
||||
Total commercial finance receivables and loans
|
$
|
34,011
|
|
|
$
|
5,068
|
|
|
$
|
3,022
|
|
|
$
|
42,101
|
|
Loans at fixed interest rates
|
|
|
$
|
1,518
|
|
|
$
|
2,044
|
|
|
|
||||
Loans at variable interest rates
|
|
|
3,550
|
|
|
978
|
|
|
|
||||||
Total commercial finance receivables and loans
|
|
|
$
|
5,068
|
|
|
$
|
3,022
|
|
|
|
(a)
|
Includes loans (e.g., floorplan) with revolving terms.
|
(b)
|
Loan maturities are based on the remaining maturities under contractual terms.
|
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Total consumer
|
|
Commercial
|
|
Total
|
||||||||||
Allowance at January 1, 2016
|
|
$
|
834
|
|
|
$
|
114
|
|
|
$
|
948
|
|
|
$
|
106
|
|
|
$
|
1,054
|
|
Charge-offs (a)
|
|
(1,102
|
)
|
|
(39
|
)
|
|
(1,141
|
)
|
|
(1
|
)
|
|
(1,142
|
)
|
|||||
Recoveries
|
|
307
|
|
|
32
|
|
|
339
|
|
|
2
|
|
|
341
|
|
|||||
Net charge-offs
|
|
(795
|
)
|
|
(7
|
)
|
|
(802
|
)
|
|
1
|
|
|
(801
|
)
|
|||||
Provision for loan losses
|
|
919
|
|
|
(16
|
)
|
|
903
|
|
|
14
|
|
|
917
|
|
|||||
Other (b)
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
(26
|
)
|
|||||
Allowance at December 31, 2016
|
|
$
|
932
|
|
|
$
|
91
|
|
|
$
|
1,023
|
|
|
$
|
121
|
|
|
$
|
1,144
|
|
Allowance for loan losses to finance receivables and loans outstanding at December 31, 2016 (c)
|
|
1.4
|
%
|
|
0.8
|
%
|
|
1.3
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
|||||
Net charge-offs to average finance receivables and loans outstanding for the year ended December 31, 2016
|
|
1.2
|
%
|
|
0.1
|
%
|
|
1.1
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|||||
Allowance for loan losses to total nonperforming finance receivables and loans at December 31, 2016 (c)
|
|
155.8
|
%
|
|
92.1
|
%
|
|
146.8
|
%
|
|
99.3
|
%
|
|
139.7
|
%
|
|||||
Ratio of allowance for loan losses to net charge-offs at December 31, 2016
|
|
1.2
|
|
|
13.7
|
|
|
1.3
|
|
|
n/m
|
|
|
1.4
|
|
(a)
|
Represents the amount of the gross carrying value directly written-off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to
Note 1
to the
Consolidated Financial Statements
for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
|
(c)
|
Coverage percentages are based on the allowance for loan losses related to finance receivables and loans excluding those loans held at fair value as a percentage of the gross carrying value.
|
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Total consumer
|
|
Commercial
|
|
Total
|
||||||||||
Allowance at January 1, 2015
|
|
$
|
685
|
|
|
$
|
152
|
|
|
$
|
837
|
|
|
$
|
140
|
|
|
$
|
977
|
|
Charge-offs (a)
|
|
(840
|
)
|
|
(48
|
)
|
|
(888
|
)
|
|
(4
|
)
|
|
(892
|
)
|
|||||
Recoveries
|
|
262
|
|
|
17
|
|
|
279
|
|
|
4
|
|
|
283
|
|
|||||
Net charge-offs
|
|
(578
|
)
|
|
(31
|
)
|
|
(609
|
)
|
|
—
|
|
|
(609
|
)
|
|||||
Provision for loan losses
|
|
739
|
|
|
1
|
|
|
740
|
|
|
(33
|
)
|
|
707
|
|
|||||
Other (b)
|
|
(12
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|
(1
|
)
|
|
(21
|
)
|
|||||
Allowance at December 31, 2015
|
|
$
|
834
|
|
|
$
|
114
|
|
|
$
|
948
|
|
|
$
|
106
|
|
|
$
|
1,054
|
|
Allowance for loan losses to finance receivables and loans outstanding at December 31, 2015 (c)
|
|
1.3
|
%
|
|
1.2
|
%
|
|
1.3
|
%
|
|
0.3
|
%
|
|
0.9
|
%
|
|||||
Net charge-offs to average finance receivables and loans outstanding for the year ended December 31, 2015
|
|
1.0
|
%
|
|
0.4
|
%
|
|
0.9
|
%
|
|
—
|
%
|
|
0.6
|
%
|
|||||
Allowance for loan losses to total nonperforming finance receivables and loans at December 31, 2015 (c)
|
|
175.7
|
%
|
|
89.0
|
%
|
|
157.2
|
%
|
|
137.4
|
%
|
|
155.0
|
%
|
|||||
Ratio of allowance for loan losses to net charge-offs at December 31, 2015
|
|
1.4
|
|
|
3.7
|
|
|
1.6
|
|
|
—
|
|
|
1.7
|
|
(a)
|
Represents the amount of the gross carrying value directly written-off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to
Note 1
to the
Consolidated Financial Statements
for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
|
(c)
|
Coverage percentages are based on the allowance for loan losses related to finance receivables and loans excluding those loans held at fair value as a percentage of the gross carrying value.
|
|
|
2016
|
|
2015
|
||||||||||||||||
December 31,
($ in millions)
|
|
Allowance for loan losses
|
|
Allowance as a % of loans outstanding
|
|
Allowance as a % of total allowance for loan losses
|
|
Allowance for loan losses
|
|
Allowance as a % of loans outstanding
|
|
Allowance as a % of total allowance for loan losses
|
||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Consumer automotive
|
|
$
|
932
|
|
|
1.4
|
%
|
|
81.4
|
%
|
|
$
|
834
|
|
|
1.3
|
%
|
|
79.1
|
%
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage Finance
|
|
11
|
|
|
0.1
|
|
|
1.0
|
|
|
16
|
|
|
0.2
|
|
|
1.5
|
|
||
Mortgage — Legacy
|
|
80
|
|
|
2.9
|
|
|
7.0
|
|
|
98
|
|
|
2.9
|
|
|
9.3
|
|
||
Total consumer mortgage
|
|
91
|
|
|
0.8
|
|
|
8.0
|
|
|
114
|
|
|
1.2
|
|
|
10.8
|
|
||
Total consumer loans
|
|
1,023
|
|
|
1.3
|
|
|
89.4
|
|
|
948
|
|
|
1.3
|
|
|
89.9
|
|
||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Automotive
|
|
32
|
|
|
0.1
|
|
|
2.8
|
|
|
29
|
|
|
0.1
|
|
|
2.8
|
|
||
Other
|
|
64
|
|
|
2.0
|
|
|
5.6
|
|
|
53
|
|
|
2.0
|
|
|
5.0
|
|
||
Commercial real estate — Automotive
|
|
25
|
|
|
0.7
|
|
|
2.2
|
|
|
24
|
|
|
0.7
|
|
|
2.3
|
|
||
Total commercial loans
|
|
121
|
|
|
0.3
|
|
|
10.6
|
|
|
106
|
|
|
0.3
|
|
|
10.1
|
|
||
Total allowance for loan losses
|
|
$
|
1,144
|
|
|
1.0
|
|
|
100.0
|
%
|
|
$
|
1,054
|
|
|
0.9
|
|
|
100.0
|
%
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Consumer
|
|
|
|
|
|
|
||||||
Consumer automotive
|
|
$
|
919
|
|
|
$
|
739
|
|
|
$
|
540
|
|
Consumer mortgage
|
|
|
|
|
|
|
||||||
Mortgage Finance
|
|
(4
|
)
|
|
7
|
|
|
3
|
|
|||
Mortgage — Legacy
|
|
(12
|
)
|
|
(6
|
)
|
|
(72
|
)
|
|||
Total consumer mortgage
|
|
(16
|
)
|
|
1
|
|
|
(69
|
)
|
|||
Total consumer loans
|
|
903
|
|
|
740
|
|
|
471
|
|
|||
Commercial
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
|
|
|
|
|
|
||||||
Automotive
|
|
4
|
|
|
(34
|
)
|
|
(1
|
)
|
|||
Other
|
|
9
|
|
|
10
|
|
|
(16
|
)
|
|||
Commercial real estate — Automotive
|
|
1
|
|
|
(9
|
)
|
|
3
|
|
|||
Total commercial loans
|
|
14
|
|
|
(33
|
)
|
|
(14
|
)
|
|||
Total provision for loan losses
|
|
$
|
917
|
|
|
$
|
707
|
|
|
$
|
457
|
|
•
|
Priced residual value projections
— At contract inception, we determine pricing based on the projected residual value of the lease vehicle. This evaluation is primarily based on a proprietary model, which includes variables such as age, expected mileage, seasonality, segment factors, vehicle type, economic indicators, production cycle, automotive manufacturer incentives, and unanticipated shifts in used vehicle supply. This internally-generated data is compared against third-party, independent data for reasonableness.
Periodically, we revise the projected value of the leased vehicle at termination based on current market conditions and adjust depreciation expense appropriately over the remaining life of the contract. At termination, our actual sales proceeds from remarketing the vehicle may be higher or lower than the estimated residual value resulting in a gain or loss on remarketing recorded through depreciation expense.
|
•
|
Remarketing abilities
— Our ability to efficiently process and effectively market off-lease vehicles affects the disposal costs and the proceeds realized from vehicle sales. Vehicles can be remarketed through auction (internet and physical), sale to dealer, sale to lessee, and other methods. The results within these channels vary, with physical auction typically resulting in the lowest-priced outcome.
|
•
|
Manufacturer vehicle and marketing programs
— Automotive manufacturers influence lease residual results in the following ways:
|
◦
|
The brand image of automotive manufacturers and consumer demand for their products affect residual risk.
|
◦
|
Automotive manufacturer marketing programs may influence the used vehicle market for those vehicles through programs such as incentives on new vehicles, programs designed to encourage lessees to terminate their leases early in conjunction with the acquisition of a new vehicle (referred to as pull-ahead programs), and special rate used vehicle programs.
|
•
|
Used vehicle market
— We have exposure to changes in used vehicle prices. General economic conditions, used vehicle supply and demand, and new vehicle market prices heavily influence used vehicle prices.
|
Year ended December 31,
|
|
2016
|
|
2015
|
|
2014
|
||||||
Off-lease vehicles terminated (
in units
)
|
|
307,557
|
|
|
264,256
|
|
|
296,393
|
|
|||
Average gain per vehicle (
$ per unit
)
|
|
$
|
691
|
|
|
$
|
1,329
|
|
|
$
|
1,461
|
|
Method of vehicle sales
|
|
|
|
|
|
|
||||||
Auction
|
|
|
|
|
|
|
||||||
Internet
|
|
55
|
%
|
|
49
|
%
|
|
51
|
%
|
|||
Physical
|
|
13
|
|
|
12
|
|
|
10
|
|
|||
Sale to dealer, lessee, and other
|
|
32
|
|
|
39
|
|
|
39
|
|
(a)
|
Refer to the section titled
Net Financing Revenue Sensitivity Analysis
for information on the interest rate sensitivity of our financial instruments.
|
|
|
2016
|
|
2015
|
||||||||||||
Year ended December 31, (
$ in millions
)
|
|
Instantaneous
|
|
Gradual (a)
|
|
Instantaneous
|
|
Gradual (a)
|
||||||||
Change in Interest Rates
|
|
|
|
|
|
|
|
|
||||||||
-100 basis points
|
|
$
|
46
|
|
|
$
|
(14
|
)
|
|
$
|
47
|
|
|
$
|
17
|
|
+100 basis points
|
|
(62
|
)
|
|
(2
|
)
|
|
(109
|
)
|
|
(37
|
)
|
||||
+200 basis points
|
|
(153
|
)
|
|
(19
|
)
|
|
(278
|
)
|
|
(96
|
)
|
(a)
|
Gradual changes in interest rates are recognized over 12 months.
|
|
|
2016
|
|
2015
|
||||||||||||
Year ended December 31, (
$ in millions
)
|
|
Instantaneous
|
|
Gradual (a)
|
|
Instantaneous
|
|
Gradual (a)
|
||||||||
Change in Interest Rates
|
|
|
|
|
|
|
|
|
||||||||
-100 basis points
|
|
$
|
(102
|
)
|
|
$
|
(60
|
)
|
|
$
|
(89
|
)
|
|
$
|
(19
|
)
|
+100 basis points
|
|
77
|
|
|
50
|
|
|
13
|
|
|
4
|
|
||||
+200 basis points
|
|
119
|
|
|
88
|
|
|
(13
|
)
|
|
(1
|
)
|
(a)
|
Gradual changes in interest rates are recognized over 12 months.
|
(a)
|
Committed funding facilities include both consolidated and nonconsolidated facilities.
|
(b)
|
Funding from committed secured facilities is available on request in the event excess collateral resides in certain facilities or is available to the extent incremental collateral is available and contributed to the facilities.
|
(a)
|
Other deposits include mortgage escrow, dealer, and other deposits.
|
•
|
We closed, renewed, increased, and/or extended
$17.0 billion
in U.S. credit facilities during the year ended
December 31, 2016
. The credit facility renewal amount includes the March 2016 refinancing of
$11.0 billion
for our largest credit facility with a syndicate of sixteen lenders, secured by retail, lease, and dealer floorplan automotive assets. This facility matures in
March 2018
.
|
•
|
We continued to access the public and private term asset-backed securitization markets raising
$5.1 billion
during the year ended
December 31, 2016
. Included in this funding for
2016
are two off-balance sheet securitizations backed by retail automotive loans, which raised
$1.5 billion
. In addition, we raised
$2.7 billion
from whole-loan sales of retail automotive loans during the year.
|
•
|
In April 2016, we accessed the unsecured debt capital markets and raised
$900 million
through the issuance of
$600 million
and
$300 million
of aggregate principal amount of senior and subordinated notes, respectively.
|
•
|
In January 2017, we raised $1.1 billion through an off-balance sheet public securitization backed by retail automotive loans.
|
•
|
In February 2017, we raised $650 million through a public securitization backed by dealer floorplan automotive assets.
|
|
|
On-balance sheet funding
|
|
% Share of funding
|
||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Secured financings
|
|
$
|
43,140
|
|
|
$
|
49,919
|
|
|
30
|
|
36
|
Institutional term debt
|
|
19,276
|
|
|
20,235
|
|
|
13
|
|
14
|
||
Retail debt programs (a)
|
|
4,070
|
|
|
3,850
|
|
|
3
|
|
3
|
||
Total debt (b)
|
|
66,486
|
|
|
74,004
|
|
|
46
|
|
53
|
||
Deposits
|
|
79,022
|
|
|
66,478
|
|
|
54
|
|
47
|
||
Total on-balance sheet funding
|
|
$
|
145,508
|
|
|
$
|
140,482
|
|
|
100
|
|
100
|
(a)
|
Includes
$448 million
and $397 million of retail term notes at
December 31, 2016
, and 2015, respectively.
|
(b)
|
Excludes fair value adjustment as described in
Note 22
to the
Consolidated Financial Statements
.
|
Rating agency
|
|
Short-term
|
|
Senior unsecured debt
|
|
Outlook
|
|
Date of last action
|
Fitch
|
|
B
|
|
BB+
|
|
Stable
|
|
September 28, 2016 (a)
|
Moody’s
|
|
Not Prime
|
|
Ba3
|
|
Stable
|
|
October 20, 2015 (b)
|
S&P
|
|
B
|
|
BB+
|
|
Stable
|
|
October 12, 2016 (c)
|
DBRS
|
|
R-3
|
|
BBB (Low)
|
|
Stable
|
|
May 2, 2016 (d)
|
(a)
|
Fitch affirmed our senior unsecured debt rating of BB+, affirmed our short-term rating of B, and maintained a Stable outlook on September 28, 2016.
|
(b)
|
Moody's upgraded our senior unsecured debt rating to Ba3 from B1, affirmed our short-term rating of Not Prime, and changed the outlook to Stable on October 20, 2015. Effective December 1, 2014, we determined to not renew our contractual arrangement with Moody's related to their providing of our corporate family, senior debt, and short-term ratings. Notwithstanding this, Moody's has determined to continue to provide these ratings on a discretionary basis. However, Moody's has no obligation to continue to provide these ratings, and could cease doing so at any time.
|
(c)
|
Standard & Poor's affirmed our senior unsecured debt rating of BB+, affirmed our short-term rating of B, and changed the outlook from Positive to Stable on October 12, 2016.
|
(d)
|
DBRS upgraded our short-term rating to R-3 from R-4, upgraded our senior unsecured debt rating to BBB (Low) from BB (High), and changed the outlook to Stable on all ratings on May 2, 2016.
|
December 31, 2016
($ in millions)
|
Total
|
|
Less than 1 year
|
|
1–3 years
|
|
3–5 years
|
|
More than 5 years
|
||||||||||
Contractually obligated payments due by period
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
||||||||||
Total (a)
|
$
|
55,264
|
|
|
$
|
14,679
|
|
|
$
|
20,903
|
|
|
$
|
9,592
|
|
|
$
|
10,090
|
|
Scheduled interest payments for fixed-rate long-term debt
|
6,151
|
|
|
1,246
|
|
|
1,579
|
|
|
882
|
|
|
2,444
|
|
|||||
Estimated interest payments for variable-rate long-term debt (b)
|
4,965
|
|
|
409
|
|
|
691
|
|
|
484
|
|
|
3,381
|
|
|||||
Estimated net payments under interest rate swap agreements (b)
|
16
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
9
|
|
|||||
Lease commitments
|
240
|
|
|
36
|
|
|
71
|
|
|
58
|
|
|
75
|
|
|||||
Purchase obligations
|
111
|
|
|
94
|
|
|
13
|
|
|
4
|
|
|
—
|
|
|||||
Bank certificates of deposit (c)
|
31,820
|
|
|
16,210
|
|
|
13,046
|
|
|
2,564
|
|
|
—
|
|
|||||
Total contractually obligated payments due by period
|
$
|
98,567
|
|
|
$
|
32,674
|
|
|
$
|
36,303
|
|
|
$
|
13,591
|
|
|
$
|
15,999
|
|
Total other commitments by expiration period
|
|
|
|
|
|
|
|
|
|
||||||||||
Lending commitments
|
$
|
2,721
|
|
|
$
|
936
|
|
|
$
|
485
|
|
|
$
|
857
|
|
|
$
|
443
|
|
(a)
|
Total long-term debt amount reflects the remaining principal obligation and excludes original issue discount of $1.3 billion, debt issuance costs of $131 million, and fair value adjustments of $315 million related to fixed-rate debt designated as a hedged item.
|
(b)
|
Estimate utilized a forecasted variable interest model, when available, or the applicable variable interest rate as of the most recent reset date prior to
December 31, 2016
. For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(c)
|
Amounts presented exclude unamortized commissions paid to brokers.
|
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||||||||||||||
Year ended December 31,
($ in millions)
|
|
Average balance (a)
|
|
Interest income/Interest expense
|
|
Yield/rate
|
|
Average balance (a)
|
|
Interest income/Interest expense
|
|
Yield/rate
|
|
Average balance (a)
|
|
Interest income/Interest expense
|
|
Yield/rate
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing cash and cash equivalents
|
|
$
|
2,657
|
|
|
$
|
14
|
|
|
0.53
|
%
|
|
$
|
3,702
|
|
|
$
|
8
|
|
|
0.22
|
%
|
|
$
|
4,328
|
|
|
$
|
8
|
|
|
0.18
|
%
|
Federal funds sold and securities purchased under resale agreements
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Investment securities (b)
|
|
18,255
|
|
|
411
|
|
|
2.25
|
|
|
17,643
|
|
|
381
|
|
|
2.16
|
|
|
16,594
|
|
|
367
|
|
|
2.21
|
|
||||||
Loans held-for-sale, net
|
|
9
|
|
|
—
|
|
|
—
|
|
|
884
|
|
|
40
|
|
|
4.52
|
|
|
16
|
|
|
1
|
|
|
6.25
|
|
||||||
Finance receivables and loans, net (c) (d)
|
|
113,140
|
|
|
5,162
|
|
|
4.56
|
|
|
104,294
|
|
|
4,570
|
|
|
4.38
|
|
|
100,148
|
|
|
4,457
|
|
|
4.45
|
|
||||||
Investment in operating leases, net (e)
|
|
13,791
|
|
|
942
|
|
|
6.83
|
|
|
18,058
|
|
|
1,149
|
|
|
6.36
|
|
|
18,789
|
|
|
1,325
|
|
|
7.05
|
|
||||||
Other earning assets
|
|
864
|
|
|
7
|
|
|
0.81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total interest-earning assets
|
|
148,717
|
|
|
6,536
|
|
|
4.39
|
|
|
144,583
|
|
|
6,148
|
|
|
4.25
|
|
|
139,875
|
|
|
6,158
|
|
|
4.40
|
|
||||||
Noninterest-bearing cash and cash equivalents
|
|
1,412
|
|
|
|
|
|
|
1,522
|
|
|
|
|
|
|
1,610
|
|
|
|
|
|
||||||||||||
Other assets (f)
|
|
8,291
|
|
|
|
|
|
|
8,567
|
|
|
|
|
|
|
9,810
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(1,095
|
)
|
|
|
|
|
|
(985
|
)
|
|
|
|
|
|
(1,173
|
)
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
157,325
|
|
|
|
|
|
|
$
|
153,687
|
|
|
|
|
|
|
$
|
150,122
|
|
|
|
|
|
|||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing deposit liabilities
|
|
$
|
72,515
|
|
|
$
|
830
|
|
|
1.14
|
%
|
|
$
|
62,086
|
|
|
$
|
718
|
|
|
1.16
|
%
|
|
$
|
55,838
|
|
|
$
|
664
|
|
|
1.19
|
%
|
Short-term borrowings
|
|
6,161
|
|
|
57
|
|
|
0.93
|
|
|
6,289
|
|
|
49
|
|
|
0.78
|
|
|
6,308
|
|
|
52
|
|
|
0.82
|
|
||||||
Long-term debt (d)
|
|
59,792
|
|
|
1,742
|
|
|
2.91
|
|
|
66,100
|
|
|
1,662
|
|
|
2.51
|
|
|
67,881
|
|
|
2,067
|
|
|
3.05
|
|
||||||
Total interest-bearing liabilities
|
|
138,468
|
|
|
2,629
|
|
|
1.90
|
|
|
134,475
|
|
|
2,429
|
|
|
1.81
|
|
|
130,027
|
|
|
2,783
|
|
|
2.14
|
|
||||||
Noninterest-bearing deposit liabilities
|
|
94
|
|
|
|
|
|
|
85
|
|
|
|
|
|
|
69
|
|
|
|
|
|
||||||||||||
Total funding sources (f)
|
|
138,562
|
|
|
2,629
|
|
|
1.90
|
|
|
134,560
|
|
|
2,429
|
|
|
1.81
|
|
|
130,096
|
|
|
2,783
|
|
|
2.14
|
|
||||||
Other liabilities (f)
|
|
5,090
|
|
|
|
|
|
|
4,302
|
|
|
|
|
|
|
5,231
|
|
|
|
|
|
||||||||||||
Total liabilities
|
|
143,652
|
|
|
|
|
|
|
138,862
|
|
|
|
|
|
|
135,327
|
|
|
|
|
|
||||||||||||
Total equity
|
|
13,673
|
|
|
|
|
|
|
14,825
|
|
|
|
|
|
|
14,795
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
|
$
|
157,325
|
|
|
|
|
|
|
$
|
153,687
|
|
|
|
|
|
|
$
|
150,122
|
|
|
|
|
|
|||||||||
Net financing revenue and other interest income
|
|
|
|
|
$
|
3,907
|
|
|
|
|
|
|
$
|
3,719
|
|
|
|
|
|
|
$
|
3,375
|
|
|
|
||||||||
Net interest spread (g)
|
|
|
|
|
|
2.49
|
%
|
|
|
|
|
|
2.44
|
%
|
|
|
|
|
|
2.26
|
%
|
||||||||||||
Net yield on interest-earning assets (h)
|
|
|
|
|
|
2.63
|
%
|
|
|
|
|
|
2.57
|
%
|
|
|
|
|
|
2.41
|
%
|
(a)
|
Average balances are calculated using a combination of monthly and daily average methodologies.
|
(b)
|
Amounts for the years ended December 31, 2015, and 2014, were adjusted to include previously excluded equity investments with an average balance of $941 million and $865 million at December 31, 2015, and 2014, respectively, and related income on equity investments of $25 million and $20 million during the years ended December 31, 2015, and 2014, respectively. Yields on available-for-sale debt securities are based on fair value as opposed to amortized cost. Yields on held-to-maturity securities are based on amortized cost.
|
(c)
|
Nonperforming finance receivables and loans are included in the average balances. For information on our accounting policies regarding nonperforming status, refer to Note 1 to the Consolidated Financial Statements.
|
(d)
|
Includes the effects of derivative financial instruments designated as hedges.
|
(e)
|
Includes gains on sale of
$213 million
,
$351 million
, $433 million, for the years ended
December 31, 2016
,
2015
, and 2014, respectively. Excluding these gains on sale, the annualized yield would be 5.29%, 4.42%, and 4.75% at
December 31, 2016
,
2015
, and 2014, respectively.
|
(f)
|
Includes average balances of assets of discontinued operations for the year ended December 31, 2014.
|
(g)
|
Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
|
(h)
|
Net yield on interest-earning assets represents net financing revenue and other interest income as a percentage of total interest-earning assets.
|
|
|
2016 vs. 2015
(Decrease) increase due to (a)
|
|
2015 vs. 2014
Increase (decrease) due to (a)
|
||||||||||||||||||||
Year ended December 31, (
$ in millions
)
|
|
Volume
|
|
Yield/rate
|
|
Total
|
|
Volume
|
|
Yield/rate
|
|
Total
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing cash and cash equivalents
|
|
$
|
(2
|
)
|
|
$
|
8
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Investment securities
|
|
13
|
|
|
17
|
|
|
30
|
|
|
23
|
|
|
(9
|
)
|
|
14
|
|
||||||
Loans held-for-sale, net
|
|
(40
|
)
|
|
—
|
|
|
(40
|
)
|
|
39
|
|
|
—
|
|
|
39
|
|
||||||
Finance receivables and loans, net
|
|
388
|
|
|
204
|
|
|
592
|
|
|
184
|
|
|
(71
|
)
|
|
113
|
|
||||||
Investment in operating leases, net
|
|
(272
|
)
|
|
65
|
|
|
(207
|
)
|
|
(51
|
)
|
|
(125
|
)
|
|
(176
|
)
|
||||||
Other earning assets
|
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total interest-earning assets
|
|
|
|
|
|
|
|
388
|
|
|
|
|
|
|
|
(10
|
)
|
|||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest-bearing deposit liabilities
|
|
$
|
121
|
|
|
$
|
(9
|
)
|
|
$
|
112
|
|
|
$
|
72
|
|
|
$
|
(18
|
)
|
|
$
|
54
|
|
Short-term borrowings
|
|
(1
|
)
|
|
9
|
|
|
8
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
||||||
Long-term debt
|
|
(159
|
)
|
|
239
|
|
|
80
|
|
|
(53
|
)
|
|
(352
|
)
|
|
(405
|
)
|
||||||
Total interest-bearing liabilities
|
|
|
|
|
|
|
|
200
|
|
|
|
|
|
|
|
|
(354
|
)
|
||||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
|
$
|
188
|
|
|
|
|
|
|
|
|
$
|
344
|
|
(a)
|
Changes in interest not solely due to volume or yield/rate are allocated in proportion to the absolute dollar amount of change in volume and yield/rate.
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
$
|
65,793
|
|
|
$
|
64,292
|
|
|
$
|
56,570
|
|
|
$
|
56,417
|
|
|
$
|
53,715
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
8,294
|
|
|
6,413
|
|
|
3,504
|
|
|
3,295
|
|
|
3,795
|
|
|||||
Mortgage — Legacy
|
2,756
|
|
|
3,360
|
|
|
3,970
|
|
|
5,149
|
|
|
6,026
|
|
|||||
Total consumer mortgage
|
11,050
|
|
|
9,773
|
|
|
7,474
|
|
|
8,444
|
|
|
9,821
|
|
|||||
Total consumer
|
76,843
|
|
|
74,065
|
|
|
64,044
|
|
|
64,861
|
|
|
63,536
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
35,041
|
|
|
31,469
|
|
|
30,871
|
|
|
30,948
|
|
|
30,270
|
|
|||||
Other
|
3,248
|
|
|
2,640
|
|
|
1,882
|
|
|
1,664
|
|
|
2,697
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
3,812
|
|
|
3,426
|
|
|
3,151
|
|
|
2,855
|
|
|
2,552
|
|
|||||
Total commercial loans
|
42,101
|
|
|
37,535
|
|
|
35,904
|
|
|
35,467
|
|
|
35,519
|
|
|||||
Total finance receivables and loans
|
$
|
118,944
|
|
|
$
|
111,600
|
|
|
$
|
99,948
|
|
|
$
|
100,328
|
|
|
$
|
99,055
|
|
Loans held-for-sale
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
2,003
|
|
|
$
|
35
|
|
|
$
|
2,576
|
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
$
|
598
|
|
|
$
|
475
|
|
|
$
|
386
|
|
|
$
|
329
|
|
|
$
|
260
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
10
|
|
|
15
|
|
|
19
|
|
|
7
|
|
|
10
|
|
|||||
Mortgage — Legacy
|
89
|
|
|
113
|
|
|
158
|
|
|
185
|
|
|
372
|
|
|||||
Total consumer mortgage
|
99
|
|
|
128
|
|
|
177
|
|
|
192
|
|
|
382
|
|
|||||
Total consumer (a)
|
697
|
|
|
603
|
|
|
563
|
|
|
521
|
|
|
642
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
33
|
|
|
25
|
|
|
32
|
|
|
116
|
|
|
146
|
|
|||||
Other
|
84
|
|
|
44
|
|
|
46
|
|
|
74
|
|
|
33
|
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
5
|
|
|
8
|
|
|
4
|
|
|
14
|
|
|
37
|
|
|||||
Total commercial (b)
|
122
|
|
|
77
|
|
|
82
|
|
|
204
|
|
|
216
|
|
|||||
Total nonperforming finance receivables and loans
|
819
|
|
|
680
|
|
|
645
|
|
|
725
|
|
|
858
|
|
|||||
Foreclosed properties
|
13
|
|
|
10
|
|
|
10
|
|
|
10
|
|
|
8
|
|
|||||
Repossessed assets (c)
|
135
|
|
|
122
|
|
|
90
|
|
|
101
|
|
|
62
|
|
|||||
Total nonperforming assets
|
$
|
967
|
|
|
$
|
812
|
|
|
$
|
745
|
|
|
$
|
836
|
|
|
$
|
928
|
|
Loans held-for-sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
25
|
|
(a)
|
Interest revenue that would have been accrued on total consumer finance receivables and loans at original contractual rates was $61 million during the year ended
December 31, 2016
. Interest income recorded for these loans was $24 million during the year ended
December 31, 2016
.
|
(b)
|
Interest revenue that would have been accrued on total commercial finance receivables and loans at original contractual rates was $8 million during the year ended
December 31, 2016
. Interest income recorded for these loans was $3 million during the year ended
December 31, 2016
.
|
(c)
|
Repossessed assets exclude $8 million, $8 million, $7 million, $7 million, and $3 million of repossessed operating lease assets at
December 31, 2016
, 2015,
2014
,
2013
, and
2012
, respectively.
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Consumer automotive
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage — Legacy
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Total accruing finance receivables and loans past due 90 days or more (a)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Loans held-for-sale
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
There were no commercial on-balance sheet accruing loans past due 90 days or more as of December 31, 2016, 2015, 2014, 2013, and 2012.
|
($ in millions)
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Balance at January 1,
|
$
|
1,054
|
|
|
$
|
977
|
|
|
$
|
1,208
|
|
|
$
|
1,170
|
|
|
$
|
1,503
|
|
Charge-offs (a)
|
(1,142
|
)
|
|
(892
|
)
|
|
(776
|
)
|
|
(737
|
)
|
|
(776
|
)
|
|||||
Recoveries
|
341
|
|
|
283
|
|
|
239
|
|
|
265
|
|
|
302
|
|
|||||
Net charge-offs
|
(801
|
)
|
|
(609
|
)
|
|
(537
|
)
|
|
(472
|
)
|
|
(474
|
)
|
|||||
Provision for loan losses
|
917
|
|
|
707
|
|
|
457
|
|
|
501
|
|
|
329
|
|
|||||
Other (b)
|
(26
|
)
|
|
(21
|
)
|
|
(151
|
)
|
|
9
|
|
|
(188
|
)
|
|||||
Balance at December 31,
|
$
|
1,144
|
|
|
$
|
1,054
|
|
|
$
|
977
|
|
|
$
|
1,208
|
|
|
$
|
1,170
|
|
(a)
|
Represents the amount of the gross carrying value directly written-off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to
Note 1
to the
Consolidated Financial Statements
for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale. Also includes provision for loan losses relating to discontinued operations of $65 million for the year ended December 31, 2012.
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
December 31, (
$ in millions
)
|
Amount
|
% of total
|
|
Amount
|
% of total
|
|
Amount
|
% of total
|
|
Amount
|
% of total
|
|
Amount
|
% of total
|
||||||||||
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
$
|
932
|
|
81.4
|
|
$
|
834
|
|
79.1
|
|
$
|
685
|
|
70.1
|
|
$
|
673
|
|
55.7
|
|
$
|
575
|
|
49.2
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
11
|
|
1.0
|
|
16
|
|
1.5
|
|
10
|
|
1.0
|
|
10
|
|
0.8
|
|
22
|
|
1.9
|
|||||
Mortgage — Legacy
|
80
|
|
7.0
|
|
98
|
|
9.3
|
|
142
|
|
14.6
|
|
379
|
|
31.4
|
|
430
|
|
36.7
|
|||||
Total consumer mortgage
|
91
|
|
8.0
|
|
114
|
|
10.8
|
|
152
|
|
15.6
|
|
389
|
|
32.2
|
|
452
|
|
38.6
|
|||||
Total consumer loans
|
1,023
|
|
89.4
|
|
948
|
|
89.9
|
|
837
|
|
85.7
|
|
1,062
|
|
87.9
|
|
1,027
|
|
87.8
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
32
|
|
2.8
|
|
29
|
|
2.8
|
|
65
|
|
6.7
|
|
67
|
|
5.6
|
|
55
|
|
4.7
|
|||||
Other
|
64
|
|
5.6
|
|
53
|
|
5.0
|
|
42
|
|
4.2
|
|
50
|
|
4.1
|
|
48
|
|
4.1
|
|||||
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
25
|
|
2.2
|
|
24
|
|
2.3
|
|
33
|
|
3.4
|
|
29
|
|
2.4
|
|
40
|
|
3.4
|
|||||
Total commercial loans
|
121
|
|
10.6
|
|
106
|
|
10.1
|
|
140
|
|
14.3
|
|
146
|
|
12.1
|
|
143
|
|
12.2
|
|||||
Total allowance for loan losses
|
$
|
1,144
|
|
100.0
|
|
$
|
1,054
|
|
100.0
|
|
$
|
977
|
|
100.0
|
|
$
|
1,208
|
|
100.0
|
|
$
|
1,170
|
|
100.0
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||||||
Year
ended December 31,
($ in millions)
|
Average balance (a)
|
|
Average deposit rate
|
|
Average balance (a)
|
|
Average deposit rate
|
|
Average balance (a)
|
|
Average deposit rate
|
|||||||||
Domestic deposits
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Noninterest-bearing deposits
|
$
|
94
|
|
|
—
|
%
|
|
$
|
85
|
|
|
—
|
%
|
|
$
|
69
|
|
|
—
|
%
|
Interest-bearing deposits
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings and money market checking accounts
|
42,040
|
|
|
0.96
|
|
|
31,608
|
|
|
0.91
|
|
|
24,296
|
|
|
0.82
|
|
|||
Certificates of deposit
|
30,275
|
|
|
1.39
|
|
|
30,212
|
|
|
1.39
|
|
|
31,153
|
|
|
1.44
|
|
|||
Dealer deposits
|
200
|
|
|
4.16
|
|
|
266
|
|
|
3.73
|
|
|
389
|
|
|
3.79
|
|
|||
Total domestic deposit liabilities
|
$
|
72,609
|
|
|
1.14
|
|
|
$
|
62,171
|
|
|
1.15
|
|
|
$
|
55,907
|
|
|
1.19
|
|
(a)
|
Average balances are calculated using a combination of monthly and daily average methodologies.
|
December 31, 2016
($ in millions)
|
Three months or less
|
|
Over three months through six months
|
|
Over six months through twelve months
|
|
Over twelve months
|
|
Total
|
||||||||||
Certificates of deposit ($100,000 or more)
|
$
|
1,721
|
|
|
$
|
1,594
|
|
|
$
|
3,665
|
|
|
$
|
5,077
|
|
|
$
|
12,057
|
|
/
S
/ J
EFFREY
J. B
ROWN
|
|
/
S
/ C
HRISTOPHER
A. H
ALMY
|
Jeffrey J. Brown
|
|
Christopher A. Halmy
|
Chief Executive Officer
|
|
Chief Financial Officer
|
February 27, 2017
|
|
February 27, 2017
|
/
S
/ D
ELOITTE
& T
OUCHE
LLP
|
|
Deloitte & Touche LLP
|
|
|
|
Detroit, Michigan
|
|
February 27, 2017
|
|
/
S
/ D
ELOITTE
& T
OUCHE
LLP
|
|
Deloitte & Touche LLP
|
|
|
|
Detroit, Michigan
|
|
February 27, 2017
|
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Financing revenue and other interest income
|
|
|
|
|
|
|
||||||
Interest and fees on finance receivables and loans
|
|
$
|
5,162
|
|
|
$
|
4,570
|
|
|
$
|
4,457
|
|
Interest on loans held-for-sale
|
|
—
|
|
|
40
|
|
|
1
|
|
|||
Interest and dividends on investment securities and other earning assets
|
|
418
|
|
|
381
|
|
|
367
|
|
|||
Interest on cash and cash equivalents
|
|
14
|
|
|
8
|
|
|
8
|
|
|||
Operating leases
|
|
2,711
|
|
|
3,398
|
|
|
3,558
|
|
|||
Total financing revenue and other interest income
|
|
8,305
|
|
|
8,397
|
|
|
8,391
|
|
|||
Interest expense
|
|
|
|
|
|
|
||||||
Interest on deposits
|
|
830
|
|
|
718
|
|
|
664
|
|
|||
Interest on short-term borrowings
|
|
57
|
|
|
49
|
|
|
52
|
|
|||
Interest on long-term debt
|
|
1,742
|
|
|
1,662
|
|
|
2,067
|
|
|||
Total interest expense
|
|
2,629
|
|
|
2,429
|
|
|
2,783
|
|
|||
Net depreciation expense on operating lease assets
|
|
1,769
|
|
|
2,249
|
|
|
2,233
|
|
|||
Net financing revenue and other interest income
|
|
3,907
|
|
|
3,719
|
|
|
3,375
|
|
|||
Other revenue
|
|
|
|
|
|
|
||||||
Insurance premiums and service revenue earned
|
|
945
|
|
|
940
|
|
|
979
|
|
|||
Gain on mortgage and automotive loans, net
|
|
11
|
|
|
45
|
|
|
7
|
|
|||
Loss on extinguishment of debt
|
|
(5
|
)
|
|
(357
|
)
|
|
(202
|
)
|
|||
Other gain on investments, net
|
|
185
|
|
|
155
|
|
|
181
|
|
|||
Other income, net of losses
|
|
394
|
|
|
359
|
|
|
311
|
|
|||
Total other revenue
|
|
1,530
|
|
|
1,142
|
|
|
1,276
|
|
|||
Total net revenue
|
|
5,437
|
|
|
4,861
|
|
|
4,651
|
|
|||
Provision for loan losses
|
|
917
|
|
|
707
|
|
|
457
|
|
|||
Noninterest expense
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
992
|
|
|
963
|
|
|
947
|
|
|||
Insurance losses and loss adjustment expenses
|
|
342
|
|
|
293
|
|
|
410
|
|
|||
Other operating expenses
|
|
1,605
|
|
|
1,505
|
|
|
1,591
|
|
|||
Total noninterest expense
|
|
2,939
|
|
|
2,761
|
|
|
2,948
|
|
|||
Income from continuing operations before income tax expense
|
|
1,581
|
|
|
1,393
|
|
|
1,246
|
|
|||
Income tax expense from continuing operations
|
|
470
|
|
|
496
|
|
|
321
|
|
|||
Net income from continuing operations
|
|
1,111
|
|
|
897
|
|
|
925
|
|
|||
(Loss) income from discontinued operations, net of tax
|
|
(44
|
)
|
|
392
|
|
|
225
|
|
|||
Net income
|
|
$
|
1,067
|
|
|
$
|
1,289
|
|
|
$
|
1,150
|
|
Year ended December 31, (
in dollars
)
(a)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Basic earnings per common share
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
|
$
|
2.25
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
(Loss) income from discontinued operations, net of tax
|
|
(0.09
|
)
|
|
0.81
|
|
|
0.47
|
|
|||
Net income (loss)
|
|
$
|
2.15
|
|
|
$
|
(2.66
|
)
|
|
$
|
1.83
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
||||||
Net income (loss) income from continuing operations
|
|
$
|
2.24
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
(Loss) income from discontinued operations, net of tax
|
|
(0.09
|
)
|
|
0.81
|
|
|
0.47
|
|
|||
Net income (loss)
|
|
$
|
2.15
|
|
|
$
|
(2.66
|
)
|
|
$
|
1.83
|
|
Cash dividends per common share
|
|
$
|
0.16
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
|
Year ended December 31
, ($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income
|
|
$
|
1,067
|
|
|
$
|
1,289
|
|
|
$
|
1,150
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
||||||
Investment securities
|
|
|
|
|
|
|
||||||
Net unrealized gains (losses) arising during the period
|
|
33
|
|
|
(39
|
)
|
|
415
|
|
|||
Less: Net realized gains reclassified to net income
|
|
147
|
|
|
99
|
|
|
167
|
|
|||
Net change
|
|
(114
|
)
|
|
(138
|
)
|
|
248
|
|
|||
Translation adjustments
|
|
|
|
|
|
|
||||||
Net unrealized gains (losses) arising during the period
|
|
3
|
|
|
(26
|
)
|
|
(17
|
)
|
|||
Less: Net realized (losses) gains reclassified to net income
|
|
(1
|
)
|
|
22
|
|
|
20
|
|
|||
Net change
|
|
4
|
|
|
(48
|
)
|
|
(37
|
)
|
|||
Net investment hedges
|
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
|
1
|
|
|
18
|
|
|
8
|
|
|||
Less: Net realized losses reclassified to net income
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|||
Net change
|
|
1
|
|
|
21
|
|
|
8
|
|
|||
Translation adjustments and net investment hedges, net change
|
|
5
|
|
|
(27
|
)
|
|
(29
|
)
|
|||
Cash flow hedges
|
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
|
—
|
|
|
1
|
|
|
2
|
|
|||
Defined benefit pension plans
|
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
|
(3
|
)
|
|
—
|
|
|
(15
|
)
|
|||
Less: Net realized (losses) gains reclassified to net income
|
|
(2
|
)
|
|
1
|
|
|
(4
|
)
|
|||
Net change
|
|
(1
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|||
Other comprehensive (loss) income, net of tax
|
|
(110
|
)
|
|
(165
|
)
|
|
210
|
|
|||
Comprehensive income
|
|
$
|
957
|
|
|
$
|
1,124
|
|
|
$
|
1,360
|
|
December 31,
($ in millions, except share data)
|
|
2016
|
|
2015
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
1,547
|
|
|
$
|
2,148
|
|
Interest-bearing
|
|
4,387
|
|
|
4,232
|
|
||
Total cash and cash equivalents
|
|
5,934
|
|
|
6,380
|
|
||
Available-for-sale securities (refer to Note 8 for discussion of investment securities pledged as collateral)
|
|
18,926
|
|
|
17,157
|
|
||
Held-to-maturity securities
|
|
839
|
|
|
—
|
|
||
Loans held-for-sale, net
|
|
—
|
|
|
105
|
|
||
Finance receivables and loans, net
|
|
|
|
|
||||
Finance receivables and loans, net of unearned income
|
|
118,944
|
|
|
111,600
|
|
||
Allowance for loan losses
|
|
(1,144
|
)
|
|
(1,054
|
)
|
||
Total finance receivables and loans, net
|
|
117,800
|
|
|
110,546
|
|
||
Investment in operating leases, net
|
|
11,470
|
|
|
16,271
|
|
||
Premiums receivable and other insurance assets
|
|
1,905
|
|
|
1,801
|
|
||
Other assets
|
|
6,854
|
|
|
6,321
|
|
||
Total assets
|
|
$
|
163,728
|
|
|
$
|
158,581
|
|
Liabilities
|
|
|
|
|
||||
Deposit liabilities
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
84
|
|
|
$
|
89
|
|
Interest-bearing
|
|
78,938
|
|
|
66,389
|
|
||
Total deposit liabilities
|
|
79,022
|
|
|
66,478
|
|
||
Short-term borrowings
|
|
12,673
|
|
|
8,101
|
|
||
Long-term debt
|
|
54,128
|
|
|
66,234
|
|
||
Interest payable
|
|
351
|
|
|
350
|
|
||
Unearned insurance premiums and service revenue
|
|
2,500
|
|
|
2,434
|
|
||
Accrued expenses and other liabilities
|
|
1,737
|
|
|
1,545
|
|
||
Total liabilities
|
|
150,411
|
|
|
145,142
|
|
||
Commitments and contingencies (refer to Note 29 and Note 30)
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Common stock and paid-in capital ($0.01 par value, shares authorized 1,100,000,000; issued 485,707,644 and 482,790,696; and outstanding 467,000,306 and 481,980,111)
|
|
21,166
|
|
|
21,100
|
|
||
Preferred stock
|
|
—
|
|
|
696
|
|
||
Accumulated deficit
|
|
(7,151
|
)
|
|
(8,110
|
)
|
||
Accumulated other comprehensive loss
|
|
(341
|
)
|
|
(231
|
)
|
||
Treasury stock, at cost (18,707,338 and 810,585 shares)
|
|
(357
|
)
|
|
(16
|
)
|
||
Total equity
|
|
13,317
|
|
|
13,439
|
|
||
Total liabilities and equity
|
|
$
|
163,728
|
|
|
$
|
158,581
|
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Assets
|
|
|
|
|
||||
Finance receivables and loans, net
|
|
|
|
|
||||
Finance receivables and loans, net of unearned income
|
|
$
|
24,630
|
|
|
$
|
27,929
|
|
Allowance for loan losses
|
|
(173
|
)
|
|
(196
|
)
|
||
Total finance receivables and loans, net
|
|
24,457
|
|
|
27,733
|
|
||
Investment in operating leases, net
|
|
1,745
|
|
|
4,791
|
|
||
Other assets
|
|
1,390
|
|
|
1,624
|
|
||
Total assets
|
|
$
|
27,592
|
|
|
$
|
34,148
|
|
Liabilities
|
|
|
|
|
||||
Long-term debt
|
|
$
|
13,259
|
|
|
$
|
20,267
|
|
Accrued expenses and other liabilities
|
|
12
|
|
|
22
|
|
||
Total liabilities
|
|
$
|
13,271
|
|
|
$
|
20,289
|
|
($ in millions)
|
|
Common stock and paid-in capital
|
|
Preferred stock
|
|
Accumulated deficit
|
|
Accumulated other comprehensive loss
|
|
Treasury stock
|
|
Total equity
|
||||||||||||
Balance at January 1, 2014
|
|
$
|
20,939
|
|
|
$
|
1,255
|
|
|
$
|
(7,710
|
)
|
|
$
|
(276
|
)
|
|
$
|
—
|
|
|
$
|
14,208
|
|
Net income
|
|
|
|
|
|
|
|
1,150
|
|
|
|
|
|
|
|
|
1,150
|
|
||||||
Preferred stock dividends
|
|
|
|
|
|
|
|
(268
|
)
|
|
|
|
|
|
|
|
(268
|
)
|
||||||
Share-based compensation
|
|
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
|
|
||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
210
|
|
|
|
|
|
210
|
|
||||||
Balance at December 31, 2014
|
|
$
|
21,038
|
|
|
$
|
1,255
|
|
|
$
|
(6,828
|
)
|
|
$
|
(66
|
)
|
|
—
|
|
|
$
|
15,399
|
|
|
Net income
|
|
|
|
|
|
1,289
|
|
|
|
|
|
|
|
1,289
|
|
|||||||||
Preferred stock dividends
|
|
|
|
|
|
(2,571
|
)
|
(a)
|
|
|
|
|
|
(2,571
|
)
|
|||||||||
Series A preferred stock repurchase
|
|
|
|
(325
|
)
|
|
|
|
|
|
|
|
|
(325
|
)
|
|||||||||
Series G preferred stock redemption
|
|
|
|
|
(234
|
)
|
|
|
|
|
|
|
|
|
|
(234
|
)
|
|||||||
Share-based compensation
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
(165
|
)
|
|
|
|
|
(165
|
)
|
||||||||
Share repurchases related to employee stock-based compensation awards
|
|
|
|
|
|
|
|
|
|
|
|
(16
|
)
|
|
(16
|
)
|
||||||||
Balance at December 31, 2015
|
|
$
|
21,100
|
|
|
$
|
696
|
|
|
$
|
(8,110
|
)
|
|
$
|
(231
|
)
|
|
$
|
(16
|
)
|
|
$
|
13,439
|
|
Net income
|
|
|
|
|
|
1,067
|
|
|
|
|
|
|
|
1,067
|
|
|||||||||
Preferred stock dividends
|
|
|
|
|
|
(30
|
)
|
|
|
|
|
|
|
(30
|
)
|
|||||||||
Series A preferred stock repurchase
|
|
|
|
|
(696
|
)
|
|
|
|
|
|
|
|
(696
|
)
|
|||||||||
Share-based compensation
|
|
66
|
|
|
|
|
|
|
|
|
|
|
66
|
|
||||||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
(110
|
)
|
|
|
|
(110
|
)
|
||||||||||
Common stock repurchases (b)
|
|
|
|
|
|
|
|
|
|
(341
|
)
|
|
(341
|
)
|
||||||||||
Common stock dividends ($0.16 per share)
|
|
|
|
|
|
(78
|
)
|
|
|
|
|
|
|
(78
|
)
|
|||||||||
Balance at December 31, 2016
|
|
$
|
21,166
|
|
|
$
|
—
|
|
|
$
|
(7,151
|
)
|
|
$
|
(341
|
)
|
|
$
|
(357
|
)
|
|
$
|
13,317
|
|
(a)
|
Preferred stock dividends include
$2,364 million
recognized in connection with the partial redemption of the Series G Preferred Stock and the repurchase of the Series A Preferred Stock. These dividends represent an additional return to preferred shareholders calculated as the excess consideration paid over the carrying amount derecognized. Refer to
Note 18
to the
Consolidated Financial Statements
for additional preferred stock information.
|
(b)
|
Includes shares repurchased related to employee stock-based compensation awards.
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Operating activities
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
1,067
|
|
|
$
|
1,289
|
|
|
$
|
1,150
|
|
Reconciliation of net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
2,382
|
|
|
2,801
|
|
|
2,936
|
|
|||
Provision for loan losses
|
|
917
|
|
|
707
|
|
|
457
|
|
|||
Gain on mortgage and automotive loans, net
|
|
(11
|
)
|
|
(45
|
)
|
|
(7
|
)
|
|||
Other gain on investments, net
|
|
(185
|
)
|
|
(155
|
)
|
|
(181
|
)
|
|||
Loss on extinguishment of debt
|
|
5
|
|
|
357
|
|
|
202
|
|
|||
Originations and purchases of loans held-for-sale
|
|
(141
|
)
|
|
(1,770
|
)
|
|
—
|
|
|||
Proceeds from sales and repayments of loans originated as held-for-sale
|
|
240
|
|
|
1,658
|
|
|
62
|
|
|||
Impairment and settlement related to Residential Capital, LLC
|
|
—
|
|
|
—
|
|
|
(150
|
)
|
|||
(Gain) loss on sale of subsidiaries, net
|
|
—
|
|
|
(452
|
)
|
|
7
|
|
|||
Net change in
|
|
|
|
|
|
|
||||||
Deferred income taxes
|
|
458
|
|
|
565
|
|
|
117
|
|
|||
Interest payable
|
|
1
|
|
|
(127
|
)
|
|
(411
|
)
|
|||
Other assets
|
|
(120
|
)
|
|
526
|
|
|
(132
|
)
|
|||
Other liabilities
|
|
(206
|
)
|
|
(247
|
)
|
|
(400
|
)
|
|||
Other, net
|
|
160
|
|
|
4
|
|
|
(247
|
)
|
|||
Net cash provided by operating activities
|
|
4,567
|
|
|
5,111
|
|
|
3,403
|
|
|||
Investing activities
|
|
|
|
|
|
|
||||||
Purchases of available-for-sale securities
|
|
(16,031
|
)
|
|
(12,250
|
)
|
|
(5,417
|
)
|
|||
Proceeds from sales of available-for-sale securities
|
|
11,036
|
|
|
6,874
|
|
|
4,260
|
|
|||
Proceeds from maturities and repayment of available-for-sale securities
|
|
3,379
|
|
|
4,255
|
|
|
2,657
|
|
|||
Purchases of held-to-maturity securities
|
|
(841
|
)
|
|
—
|
|
|
—
|
|
|||
Purchases of loans held-for-investment
|
|
(3,859
|
)
|
|
(4,501
|
)
|
|
(877
|
)
|
|||
Proceeds from sales of finance receivables and loans originated as held-for-investment
|
|
4,285
|
|
|
3,197
|
|
|
2,592
|
|
|||
Originations and repayments of loans held-for-investment and other, net
|
|
(8,826
|
)
|
|
(9,344
|
)
|
|
(4,147
|
)
|
|||
Purchases of operating lease assets
|
|
(3,274
|
)
|
|
(4,685
|
)
|
|
(9,884
|
)
|
|||
Disposals of operating lease assets
|
|
6,304
|
|
|
5,546
|
|
|
5,860
|
|
|||
Acquisitions, net of cash acquired
|
|
(309
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from sale of business unit, net (a)
|
|
—
|
|
|
1,049
|
|
|
47
|
|
|||
Net change in restricted cash
|
|
392
|
|
|
264
|
|
|
1,625
|
|
|||
Net change in nonmarketable equity investments
|
|
(628
|
)
|
|
(147
|
)
|
|
66
|
|
|||
Other, net
|
|
(312
|
)
|
|
(5
|
)
|
|
6
|
|
|||
Net cash used in investing activities
|
|
(8,684
|
)
|
|
(9,747
|
)
|
|
(3,212
|
)
|
Year ended December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Financing activities
|
|
|
|
|
|
|
||||||
Net change in short-term borrowings
|
|
4,564
|
|
|
1,028
|
|
|
(1,494
|
)
|
|||
Net increase in deposits
|
|
12,508
|
|
|
8,247
|
|
|
4,851
|
|
|||
Proceeds from issuance of long-term debt
|
|
14,155
|
|
|
30,665
|
|
|
27,192
|
|
|||
Repayments of long-term debt
|
|
(26,412
|
)
|
|
(31,350
|
)
|
|
(30,426
|
)
|
|||
Repurchase and redemption of preferred stock
|
|
(696
|
)
|
|
(559
|
)
|
|
—
|
|
|||
Repurchases of common stock
|
|
(341
|
)
|
|
(16
|
)
|
|
—
|
|
|||
Dividends paid
|
|
(108
|
)
|
|
(2,571
|
)
|
|
(268
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
3,670
|
|
|
5,444
|
|
|
(145
|
)
|
|||
Effect of exchange-rate changes on cash and cash equivalents
|
|
1
|
|
|
(4
|
)
|
|
(1
|
)
|
|||
Net (decrease) increase in cash and cash equivalents
|
|
(446
|
)
|
|
804
|
|
|
45
|
|
|||
Cash and cash equivalents at beginning of year
|
|
6,380
|
|
|
5,576
|
|
|
5,531
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
5,934
|
|
|
$
|
6,380
|
|
|
$
|
5,576
|
|
Supplemental disclosures
|
|
|
|
|
|
|
||||||
Cash paid for
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
2,647
|
|
|
$
|
2,632
|
|
|
$
|
3,090
|
|
Income taxes
|
|
19
|
|
|
96
|
|
|
8
|
|
|||
Noncash items
|
|
|
|
|
|
|
||||||
Finance receivables and loans transferred to loans held-for-sale
|
|
4,282
|
|
|
1,311
|
|
|
4,631
|
|
|||
Other disclosures
|
|
|
|
|
|
|
||||||
Proceeds from repayments of mortgage loans held-for-investment originally designated as held-for-sale
|
|
40
|
|
|
68
|
|
|
38
|
|
(a)
|
Cash flows of discontinued operations are reflected within operating, investing, and financing activities in the
Consolidated Statement of Cash Flows
.
|
•
|
Consumer automotive
— Consists of retail automotive financing for new and used vehicles.
|
•
|
Consumer mortgage
— Consists of the following classes of finance receivables.
|
•
|
Mortgage Finance
— Consists of consumer first mortgages from our ongoing mortgage operations including bulk acquisitions, originations, and refinancing of high-quality jumbo mortgages and low-to-moderate income (LMI) mortgages. In late 2016, we also introduced limited direct mortgage originations consisting of jumbo and conforming mortgages. Conforming mortgages will be originated as held-for-sale, while jumbo mortgages will be originated as held-for-investment.
|
•
|
Mortgage — Legacy —
Consists of consumer mortgage assets originated prior to January 1, 2009, including first mortgages, subordinate-lien mortgages, and home equity mortgages.
|
•
|
Commercial
— Consists of the following classes of finance receivables
.
|
•
|
Commercial and Industrial
|
•
|
Automotive
— Consists of financing operations to fund dealer purchases of new and used vehicles through wholesale floorplan financing. Additional commercial offerings include automotive dealer term loans, revolving lines of credit, and dealer fleet financing.
|
•
|
Other
— Consists of senior secured leveraged cash flow and asset based loans.
|
•
|
Commercial Real Estate
—
Automotive
— Consists of term loans to finance dealership land and buildings.
|
($ in millions)
|
|
||
Purchase price
|
|
||
Cash consideration
|
$
|
298
|
|
Allocation of purchase price to net assets acquired
|
|
||
Intangible assets (a)
|
82
|
|
|
Cash and short-term investments (b)
|
50
|
|
|
Other assets
|
14
|
|
|
Deferred tax asset, net
|
4
|
|
|
Employee compensation and benefits
|
(41
|
)
|
|
Other liabilities
|
(4
|
)
|
|
Goodwill
|
$
|
193
|
|
(a)
|
We recorded
$6 million
of amortization on these intangible assets during the year ended December 31, 2016.
|
(b)
|
Includes
$40 million
in cash proceeds from the acquisition transaction in order to pay employee compensation and benefits that vested upon acquisition as a result of the change in control.
|
(a)
|
Includes certain treasury and other corporate activity recognized by Corporate and Other.
|
(b)
|
Includes certain income tax activity recognized by Corporate and Other.
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
Year ended December 31,
($ in millions)
|
Written
|
|
Earned
|
|
Written
|
|
Earned
|
|
Written
|
|
Earned
|
||||||||||||
Insurance premiums
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct
|
$
|
317
|
|
|
$
|
318
|
|
|
$
|
313
|
|
|
$
|
296
|
|
|
$
|
294
|
|
|
$
|
282
|
|
Assumed
|
3
|
|
|
5
|
|
|
2
|
|
|
16
|
|
|
43
|
|
|
54
|
|
||||||
Gross insurance premiums
|
320
|
|
|
323
|
|
|
315
|
|
|
312
|
|
|
337
|
|
|
336
|
|
||||||
Ceded
|
(198
|
)
|
|
(141
|
)
|
|
(184
|
)
|
|
(125
|
)
|
|
(156
|
)
|
|
(117
|
)
|
||||||
Net insurance premiums
|
122
|
|
|
182
|
|
|
131
|
|
|
187
|
|
|
181
|
|
|
219
|
|
||||||
Service revenue
|
826
|
|
|
763
|
|
|
846
|
|
|
753
|
|
|
842
|
|
|
760
|
|
||||||
Insurance premiums and service revenue written and earned
|
$
|
948
|
|
|
$
|
945
|
|
|
$
|
977
|
|
|
$
|
940
|
|
|
$
|
1,023
|
|
|
$
|
979
|
|
Year ended December 31,
($ in millions)
|
2016
|
|
2015
|
|
2014
|
||||||
Remarketing fees
|
$
|
103
|
|
|
$
|
101
|
|
|
$
|
112
|
|
Late charges and other administrative fees
|
98
|
|
|
90
|
|
|
88
|
|
|||
Servicing fees
|
64
|
|
|
45
|
|
|
31
|
|
|||
Income from equity-method investments
|
18
|
|
|
52
|
|
|
18
|
|
|||
Other, net
|
111
|
|
|
71
|
|
|
62
|
|
|||
Total other income, net of losses
|
$
|
394
|
|
|
$
|
359
|
|
|
$
|
311
|
|
|
|
For the years ended December 31,
($ in millions)
|
|
December 31, 2016
($ in millions)
|
|||||||||||||||||||||||
Accident year (a)
|
|
2012 (b)
|
|
2013 (b)
|
|
2014 (b)
|
|
2015 (b)
|
|
2016
|
|
Total of incurred-but-not-reported liabilities plus expected development on reported claims (c)
|
|
Cumulative number of reported claims (c)
|
|||||||||||||
2012
|
|
$
|
435
|
|
|
$
|
430
|
|
|
$
|
423
|
|
|
$
|
423
|
|
|
$
|
423
|
|
|
$
|
4
|
|
|
772,536
|
|
2013
|
|
|
|
376
|
|
|
365
|
|
|
370
|
|
|
370
|
|
|
2
|
|
|
672,247
|
|
|||||||
2014
|
|
|
|
|
|
390
|
|
|
389
|
|
|
388
|
|
|
—
|
|
|
525,235
|
|
||||||||
2015
|
|
|
|
|
|
|
|
274
|
|
|
271
|
|
|
—
|
|
|
342,054
|
|
|||||||||
2016
|
|
|
|
|
|
|
|
|
|
326
|
|
|
$
|
24
|
|
|
453,807
|
|
|||||||||
Total
|
|
|
|
|
|
|
|
|
|
$
|
1,778
|
|
|
|
|
|
(a)
|
Due to the discontinuation of various product lines and sale of certain international operations, information prior to 2012 has been excluded from the table in order to appropriately reflect the number of years for which claims are typically outstanding. In addition, given the short tail of our insurance contracts, the table above reflects the combined presentation of all business lines.
|
(b)
|
Information presented for the years 2012 through 2015 is unaudited supplementary information.
|
(c)
|
Claims are reported on a claimant basis. Claimant is defined as one vehicle for guaranteed asset protection (GAP) products, one repair visit for vehicle service contracts (VSCs) and vehicle maintenance contracts (VMCs), one dealership for dealer inventory products, and per individual/coverage for run-off personal auto products.
|
|
|
For the years ended December 31,
($ in millions)
|
||||||||||||||||||
Accident year (a)
|
|
2012 (b)
|
|
2013 (b)
|
|
2014 (b)
|
|
2015 (b)
|
|
2016
|
||||||||||
2012
|
|
$
|
391
|
|
|
$
|
412
|
|
|
$
|
416
|
|
|
$
|
418
|
|
|
$
|
419
|
|
2013
|
|
|
|
347
|
|
|
364
|
|
|
366
|
|
|
368
|
|
||||||
2014
|
|
|
|
|
|
369
|
|
|
388
|
|
|
388
|
|
|||||||
2015
|
|
|
|
|
|
|
|
252
|
|
|
272
|
|
||||||||
2016
|
|
|
|
|
|
|
|
|
|
302
|
|
|||||||||
Total
|
|
|
|
|
|
|
|
|
|
1,749
|
|
|||||||||
All outstanding liabilities for loss and allocated loss adjustment expenses before 2012, net of reinsurance
|
|
|
|
|
|
|
|
|
|
9
|
|
|||||||||
Reserves for insurance losses and allocated loss adjustment expenses, net of reinsurance
|
|
|
|
|
|
|
|
|
|
$
|
38
|
|
(a)
|
Due to the discontinuation of various product lines and sale of certain international operations, information prior to 2012 has been excluded from the table in order to appropriately reflect the number of years for which claims are typically outstanding. In addition, given the short tail of our insurance contracts, the table above reflects the combined presentation of all business lines.
|
(b)
|
Information presented for the years 2012 through 2015 is unaudited supplementary information.
|
Year
|
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|||||
Percentage payout of incurred claims
|
|
93.4
|
%
|
|
5.5
|
%
|
|
0.4
|
%
|
|
0.5
|
%
|
|
0.1
|
%
|
December 31,
($ in millions)
|
|
2016
|
||
Reserves for insurance losses and loss adjustment expenses, net of reinsurance
|
|
$
|
38
|
|
Total reinsurance recoverable on unpaid claims
|
|
108
|
|
|
Unallocated loss adjustment expenses
|
|
3
|
|
|
Total gross reserves for insurance losses and loss adjustment expenses
|
|
$
|
149
|
|
($ in millions)
|
|
||
Total gross reserves for insurance losses and loss adjustment expenses at January 1, 2016
|
$
|
169
|
|
Less: Reinsurance recoverable
|
120
|
|
|
Net reserves for insurance losses and loss adjustment expenses at January 1, 2016
|
49
|
|
|
Net insurance losses and loss adjustment expenses incurred related to:
|
|
||
Current year
|
345
|
|
|
Prior years (a)
|
(3
|
)
|
|
Total net insurance losses and loss adjustment expenses incurred
|
342
|
|
|
Net insurance losses and loss adjustment expenses paid or payable related to:
|
|
||
Current year
|
(320
|
)
|
|
Prior years
|
(30
|
)
|
|
Total net insurance losses and loss adjustment expenses paid or payable
|
(350
|
)
|
|
Net reserves for insurance losses and loss adjustment expenses at December 31, 2016
|
41
|
|
|
Plus: Reinsurance recoverable
|
108
|
|
|
Total gross reserves for insurance losses and loss adjustment expenses at December 31, 2016
|
$
|
149
|
|
(a)
|
There have been no material adverse changes to the reserve for prior years.
|
Year ended December 31,
($ in millions)
|
2016
|
|
2015
|
|
2014
|
||||||
Insurance commissions
|
$
|
389
|
|
|
$
|
378
|
|
|
$
|
374
|
|
Technology and communications
|
274
|
|
|
267
|
|
|
334
|
|
|||
Lease and loan administration
|
136
|
|
|
126
|
|
|
122
|
|
|||
Advertising and marketing
|
112
|
|
|
107
|
|
|
111
|
|
|||
Professional services
|
103
|
|
|
93
|
|
|
100
|
|
|||
Vehicle remarketing and repossession
|
95
|
|
|
78
|
|
|
83
|
|
|||
Regulatory and licensing fees
|
94
|
|
|
79
|
|
|
87
|
|
|||
Premises and equipment depreciation
|
84
|
|
|
82
|
|
|
81
|
|
|||
Occupancy
|
51
|
|
|
50
|
|
|
47
|
|
|||
Non-income taxes
|
25
|
|
|
29
|
|
|
40
|
|
|||
Other
|
242
|
|
|
216
|
|
|
212
|
|
|||
Total other operating expenses
|
$
|
1,605
|
|
|
$
|
1,505
|
|
|
$
|
1,591
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
|
|
Amortized cost
|
|
Gross unrealized
|
|
Fair value
|
|
Amortized cost
|
|
Gross unrealized
|
|
Fair
value |
||||||||||||||||||||
December 31,
($ in millions)
|
|
gains
|
|
losses
|
|
gains
|
|
losses
|
|
|||||||||||||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,680
|
|
|
$
|
—
|
|
|
$
|
(60
|
)
|
|
$
|
1,620
|
|
|
$
|
1,760
|
|
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
1,741
|
|
U.S. States and political subdivisions
|
|
794
|
|
|
7
|
|
|
(19
|
)
|
|
782
|
|
|
693
|
|
|
24
|
|
|
(1
|
)
|
|
716
|
|
||||||||
Foreign government
|
|
157
|
|
|
5
|
|
|
—
|
|
|
162
|
|
|
169
|
|
|
8
|
|
|
—
|
|
|
177
|
|
||||||||
Agency mortgage-backed residential
|
|
10,473
|
|
|
29
|
|
|
(212
|
)
|
|
10,290
|
|
|
7,553
|
|
|
46
|
|
|
(55
|
)
|
|
7,544
|
|
||||||||
Mortgage-backed residential
|
|
2,162
|
|
|
5
|
|
|
(70
|
)
|
|
2,097
|
|
|
2,906
|
|
|
6
|
|
|
(90
|
)
|
|
2,822
|
|
||||||||
Mortgage-backed commercial
|
|
537
|
|
|
2
|
|
|
(2
|
)
|
|
537
|
|
|
486
|
|
|
—
|
|
|
(5
|
)
|
|
481
|
|
||||||||
Asset-backed
|
|
1,396
|
|
|
6
|
|
|
(2
|
)
|
|
1,400
|
|
|
1,762
|
|
|
1
|
|
|
(8
|
)
|
|
1,755
|
|
||||||||
Corporate debt
|
|
1,452
|
|
|
7
|
|
|
(16
|
)
|
|
1,443
|
|
|
1,213
|
|
|
8
|
|
|
(17
|
)
|
|
1,204
|
|
||||||||
Total debt securities (a) (b)
|
|
18,651
|
|
|
61
|
|
|
(381
|
)
|
|
18,331
|
|
|
16,542
|
|
|
93
|
|
|
(195
|
)
|
|
16,440
|
|
||||||||
Equity securities
|
|
642
|
|
|
7
|
|
|
(54
|
)
|
|
595
|
|
|
808
|
|
|
3
|
|
|
(94
|
)
|
|
717
|
|
||||||||
Total available-for-sale securities
|
|
$
|
19,293
|
|
|
$
|
68
|
|
|
$
|
(435
|
)
|
|
$
|
18,926
|
|
|
$
|
17,350
|
|
|
$
|
96
|
|
|
$
|
(289
|
)
|
|
$
|
17,157
|
|
Total held-to-maturity securities (c) (d)
|
|
$
|
839
|
|
|
$
|
—
|
|
|
$
|
(50
|
)
|
|
$
|
789
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled
$14 million
at both
December 31, 2016
, and
December 31, 2015
.
|
(b)
|
Investment securities with a fair value of
$4,881 million
and
$2,506 million
at
December 31, 2016
, and
December 31, 2015
, were pledged to secure advances from the FHLB, short-term borrowings or repurchase agreements and for other purposes as required by contractual obligation or law. Under these agreements, Ally has granted the counterparty the right to sell or pledge
$737 million
and
$745 million
of the underlying investment securities at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(c)
|
Held-to-maturity securities are recorded at amortized cost and consist of agency-backed residential mortgage-backed debt securities for liquidity purposes.
|
(d)
|
Held-to-maturity securities with a fair value of
$87 million
at
December 31, 2016
, were pledged to secure advances from the FHLB.
|
|
|
Total
|
|
Due in one year or less
|
|
Due after one year through five years
|
|
Due after five years through ten years
|
|
Due after ten years
|
|||||||||||||||||||||||||
($ in millions)
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fair value of available-for-sale debt securities (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,620
|
|
|
1.7
|
%
|
|
$
|
2
|
|
|
4.6
|
%
|
|
$
|
60
|
|
|
1.6
|
%
|
|
$
|
1,558
|
|
|
1.7
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. States and political subdivisions
|
|
782
|
|
|
3.1
|
|
|
64
|
|
|
1.7
|
|
|
29
|
|
|
2.3
|
|
|
172
|
|
|
2.8
|
|
|
517
|
|
|
3.4
|
|
|||||
Foreign government
|
|
162
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
58
|
|
|
2.8
|
|
|
104
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|||||
Agency mortgage-backed residential
|
|
10,290
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29
|
|
|
2.6
|
|
|
10,261
|
|
|
2.9
|
|
|||||
Mortgage-backed residential
|
|
2,097
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,097
|
|
|
2.9
|
|
|||||
Mortgage-backed commercial
|
|
537
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2.8
|
|
|
534
|
|
|
2.6
|
|
|||||
Asset-backed
|
|
1,400
|
|
|
2.8
|
|
|
—
|
|
|
—
|
|
|
1,059
|
|
|
2.8
|
|
|
143
|
|
|
3.2
|
|
|
198
|
|
|
2.6
|
|
|||||
Corporate debt
|
|
1,443
|
|
|
2.8
|
|
|
72
|
|
|
2.2
|
|
|
840
|
|
|
2.6
|
|
|
489
|
|
|
3.2
|
|
|
42
|
|
|
4.7
|
|
|||||
Total available-for-sale debt securities
|
|
$
|
18,331
|
|
|
2.8
|
|
|
$
|
138
|
|
|
2.0
|
|
|
$
|
2,046
|
|
|
2.7
|
|
|
$
|
2,498
|
|
|
2.2
|
|
|
$
|
13,649
|
|
|
2.9
|
|
Amortized cost of available-for-sale debt securities
|
|
$
|
18,651
|
|
|
|
|
$
|
138
|
|
|
|
|
$
|
2,040
|
|
|
|
|
$
|
2,563
|
|
|
|
|
$
|
13,910
|
|
|
|
|||||
Amortized cost of held-to-maturity securities
|
|
$
|
839
|
|
|
2.9
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
839
|
|
|
2.9
|
%
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fair value of available-for-sale debt securities (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,741
|
|
|
1.8
|
%
|
|
$
|
6
|
|
|
5.1
|
%
|
|
$
|
510
|
|
|
1.2
|
%
|
|
$
|
1,225
|
|
|
2.1
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. States and political subdivisions
|
|
716
|
|
|
3.2
|
|
|
86
|
|
|
1.3
|
|
|
37
|
|
|
2.2
|
|
|
141
|
|
|
2.8
|
|
|
452
|
|
|
3.7
|
|
|||||
Foreign government
|
|
177
|
|
|
2.6
|
|
|
9
|
|
|
1.9
|
|
|
77
|
|
|
2.8
|
|
|
91
|
|
|
2.6
|
|
|
—
|
|
|
—
|
|
|||||
Agency mortgage-backed residential
|
|
7,544
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
32
|
|
|
2.0
|
|
|
36
|
|
|
2.5
|
|
|
7,476
|
|
|
2.9
|
|
|||||
Mortgage-backed residential
|
|
2,822
|
|
|
2.9
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
2,821
|
|
|
2.9
|
|
|||||
Mortgage-backed commercial
|
|
481
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
2.7
|
|
|
478
|
|
|
2.0
|
|
|||||
Asset-backed
|
|
1,755
|
|
|
2.3
|
|
|
6
|
|
|
1.4
|
|
|
1,027
|
|
|
2.1
|
|
|
518
|
|
|
2.6
|
|
|
204
|
|
|
2.2
|
|
|||||
Corporate debt
|
|
1,204
|
|
|
2.9
|
|
|
50
|
|
|
3.0
|
|
|
713
|
|
|
2.5
|
|
|
410
|
|
|
3.4
|
|
|
31
|
|
|
5.4
|
|
|||||
Total available-for-sale debt securities
|
|
$
|
16,440
|
|
|
2.7
|
|
|
$
|
157
|
|
|
2.0
|
|
|
$
|
2,397
|
|
|
2.1
|
|
|
$
|
2,424
|
|
|
2.5
|
|
|
$
|
11,462
|
|
|
2.9
|
|
Amortized cost of available-for-sale debt securities
|
|
$
|
16,542
|
|
|
|
|
|
$
|
156
|
|
|
|
|
|
$
|
2,404
|
|
|
|
|
|
$
|
2,436
|
|
|
|
|
|
$
|
11,546
|
|
|
|
|
(a)
|
Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
|
Year ended December 31,
($ in millions)
|
2016
|
|
2015
|
|
2014
|
||||||
Taxable interest
|
$
|
375
|
|
|
$
|
340
|
|
|
$
|
336
|
|
Taxable dividends
|
17
|
|
|
23
|
|
|
20
|
|
|||
Interest and dividends exempt from U.S. federal income tax
|
19
|
|
|
18
|
|
|
11
|
|
|||
Interest and dividends on investment securities
|
$
|
411
|
|
|
$
|
381
|
|
|
$
|
367
|
|
Year ended December 31,
($ in millions)
|
2016
|
|
2015
|
|
2014
|
||||||
Gross realized gains
|
$
|
187
|
|
|
$
|
184
|
|
|
$
|
209
|
|
Gross realized losses (a)
|
(2
|
)
|
|
(15
|
)
|
|
(14
|
)
|
|||
Other-than-temporary impairment
|
—
|
|
|
(14
|
)
|
|
(14
|
)
|
|||
Other gain on investments, net
|
$
|
185
|
|
|
$
|
155
|
|
|
$
|
181
|
|
(a)
|
In accordance with our risk management policies and practice, certain available-for-sale securities were sold at a loss in 2016, 2015, and 2014 as a result of changing conditions within these respective periods (e.g., a downgrade in the rating of a debt security) or events outside of our control (such as issuer calls).
|
|
|
2016
|
|
2015
|
||||||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||
December 31,
($ in millions)
|
|
Fair value
|
|
Unrealized loss
|
|
Fair value
|
|
Unrealized loss
|
|
Fair value
|
|
Unrealized loss
|
|
Fair value
|
|
Unrealized loss
|
||||||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,612
|
|
|
$
|
(60
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,553
|
|
|
$
|
(17
|
)
|
|
$
|
173
|
|
|
$
|
(2
|
)
|
U.S. States and political subdivisions
|
|
524
|
|
|
(19
|
)
|
|
—
|
|
|
—
|
|
|
179
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||||
Foreign government
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Agency mortgage-backed residential
|
|
8,052
|
|
|
(196
|
)
|
|
587
|
|
|
(16
|
)
|
|
2,524
|
|
|
(21
|
)
|
|
1,132
|
|
|
(34
|
)
|
||||||||
Mortgage-backed residential
|
|
813
|
|
|
(17
|
)
|
|
860
|
|
|
(53
|
)
|
|
1,231
|
|
|
(19
|
)
|
|
1,180
|
|
|
(71
|
)
|
||||||||
Mortgage-backed commercial
|
|
47
|
|
|
(1
|
)
|
|
149
|
|
|
(1
|
)
|
|
341
|
|
|
(3
|
)
|
|
141
|
|
|
(2
|
)
|
||||||||
Asset-backed
|
|
375
|
|
|
(2
|
)
|
|
127
|
|
|
—
|
|
|
1,402
|
|
|
(8
|
)
|
|
64
|
|
|
—
|
|
||||||||
Corporate debt
|
|
744
|
|
|
(14
|
)
|
|
46
|
|
|
(2
|
)
|
|
745
|
|
|
(16
|
)
|
|
12
|
|
|
(1
|
)
|
||||||||
Total temporarily impaired debt securities
|
|
12,205
|
|
|
(309
|
)
|
|
1,769
|
|
|
(72
|
)
|
|
7,977
|
|
|
(85
|
)
|
|
2,702
|
|
|
(110
|
)
|
||||||||
Temporarily impaired equity securities
|
|
151
|
|
|
(8
|
)
|
|
269
|
|
|
(46
|
)
|
|
534
|
|
|
(54
|
)
|
|
96
|
|
|
(40
|
)
|
||||||||
Total temporarily impaired available-for-sale securities
|
|
$
|
12,356
|
|
|
$
|
(317
|
)
|
|
$
|
2,038
|
|
|
$
|
(118
|
)
|
|
$
|
8,511
|
|
|
$
|
(139
|
)
|
|
$
|
2,798
|
|
|
$
|
(150
|
)
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Consumer automotive (a)
|
|
$
|
65,793
|
|
|
$
|
64,292
|
|
Consumer mortgage
|
|
|
|
|
||||
Mortgage Finance (b)
|
|
8,294
|
|
|
6,413
|
|
||
Mortgage — Legacy (c)
|
|
2,756
|
|
|
3,360
|
|
||
Total consumer mortgage
|
|
11,050
|
|
|
9,773
|
|
||
Total consumer
|
|
76,843
|
|
|
74,065
|
|
||
Commercial
|
|
|
|
|
||||
Commercial and industrial
|
|
|
|
|
||||
Automotive
|
|
35,041
|
|
|
31,469
|
|
||
Other
|
|
3,248
|
|
|
2,640
|
|
||
Commercial real estate — Automotive
|
|
3,812
|
|
|
3,426
|
|
||
Total commercial
|
|
42,101
|
|
|
37,535
|
|
||
Total finance receivables and loans (d)
|
|
$
|
118,944
|
|
|
$
|
111,600
|
|
(a)
|
Includes
$43 million
and
$66 million
of fair value adjustment for loans in hedge accounting relationships at
December 31, 2016
, and
December 31, 2015
, respectively. Refer to
Note 22
to the
Consolidated Financial Statements
for additional information.
|
(b)
|
Includes loans originated as interest-only mortgage loans of
$30 million
and
$44 million
at
December 31, 2016
, and
December 31, 2015
, respectively,
3%
of which are expected to start principal amortization in
2017
, none in
2018
,
38%
in
2019
,
39%
in
2020
, and none thereafter.
|
(c)
|
Includes loans originated as interest-only mortgage loans of
$714 million
and
$941 million
at
December 31, 2016
, and
December 31, 2015
, respectively,
23%
of which are expected to start principal amortization in
2017
,
2%
in
2018
, none in
2019
, none in
2020
, and
1%
thereafter.
|
(d)
|
Totals include net increases of
$359 million
and
$110 million
at
December 31, 2016
, and
December 31, 2015
, respectively, for unearned income, unamortized premiums and discounts, and deferred fees and costs.
|
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Commercial
|
|
Total
|
||||||||
Allowance at January 1, 2016
|
|
$
|
834
|
|
|
$
|
114
|
|
|
$
|
106
|
|
|
$
|
1,054
|
|
Charge-offs (a)
|
|
(1,102
|
)
|
|
(39
|
)
|
|
(1
|
)
|
|
(1,142
|
)
|
||||
Recoveries
|
|
307
|
|
|
32
|
|
|
2
|
|
|
341
|
|
||||
Net charge-offs
|
|
(795
|
)
|
|
(7
|
)
|
|
1
|
|
|
(801
|
)
|
||||
Provision for loan losses
|
|
919
|
|
|
(16
|
)
|
|
14
|
|
|
917
|
|
||||
Other (b)
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(26
|
)
|
||||
Allowance at December 31, 2016
|
|
$
|
932
|
|
|
$
|
91
|
|
|
$
|
121
|
|
|
$
|
1,144
|
|
Allowance for loan losses at December 31, 2016
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
28
|
|
|
$
|
34
|
|
|
$
|
23
|
|
|
$
|
85
|
|
Collectively evaluated for impairment
|
|
904
|
|
|
57
|
|
|
98
|
|
|
1,059
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Finance receivables and loans at gross carrying value
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
|
$
|
65,793
|
|
|
$
|
11,050
|
|
|
$
|
42,101
|
|
|
$
|
118,944
|
|
Individually evaluated for impairment
|
|
370
|
|
|
247
|
|
|
122
|
|
|
739
|
|
||||
Collectively evaluated for impairment
|
|
65,423
|
|
|
10,803
|
|
|
41,979
|
|
|
118,205
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
Represents the amount of the gross carrying value directly written-off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to
Note 1
to the
Consolidated Financial Statements
for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
|
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Commercial
|
|
Total
|
||||||||
Allowance at January 1, 2015
|
|
$
|
685
|
|
|
$
|
152
|
|
|
$
|
140
|
|
|
$
|
977
|
|
Charge-offs (a)
|
|
(840
|
)
|
|
(48
|
)
|
|
(4
|
)
|
|
(892
|
)
|
||||
Recoveries
|
|
262
|
|
|
17
|
|
|
4
|
|
|
283
|
|
||||
Net charge-offs
|
|
(578
|
)
|
|
(31
|
)
|
|
—
|
|
|
(609
|
)
|
||||
Provision for loan losses
|
|
739
|
|
|
1
|
|
|
(33
|
)
|
|
707
|
|
||||
Other (b)
|
|
(12
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
(21
|
)
|
||||
Allowance at December 31, 2015
|
|
$
|
834
|
|
|
$
|
114
|
|
|
$
|
106
|
|
|
$
|
1,054
|
|
Allowance for loan losses at December 31, 2015
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
22
|
|
|
$
|
44
|
|
|
$
|
20
|
|
|
$
|
86
|
|
Collectively evaluated for impairment
|
|
812
|
|
|
70
|
|
|
86
|
|
|
968
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Finance receivables and loans at gross carrying value
|
|
|
|
|
|
|
|
|
|
|||||||
Ending balance
|
|
$
|
64,292
|
|
|
$
|
9,773
|
|
|
$
|
37,535
|
|
|
$
|
111,600
|
|
Individually evaluated for impairment
|
|
315
|
|
|
266
|
|
|
77
|
|
|
658
|
|
||||
Collectively evaluated for impairment
|
|
63,977
|
|
|
9,507
|
|
|
37,458
|
|
|
110,942
|
|
||||
Loans acquired with deteriorated credit quality
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
Represents the amount of the gross carrying value directly written-off. For consumer and commercial loans, the loss from a charge-off is measured as the difference between the gross carrying value of a loan and the fair value of the collateral, less costs to sell. Refer to
Note 1
to the
Consolidated Financial Statements
for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-investment to held-for-sale.
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Consumer automotive
|
|
$
|
4,267
|
|
|
$
|
1,237
|
|
Consumer mortgage
|
|
15
|
|
|
78
|
|
||
Commercial
|
|
29
|
|
|
2
|
|
||
Total sales and transfers
|
|
$
|
4,311
|
|
|
$
|
1,317
|
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Consumer automotive
|
|
$
|
21
|
|
|
$
|
272
|
|
Consumer mortgage
|
|
3,747
|
|
|
4,125
|
|
||
Total purchases of finance receivables and loans
|
|
$
|
3,768
|
|
|
$
|
4,397
|
|
December 31,
($ in millions)
|
|
30–59 days past due
|
|
60–89 days past due
|
|
90 days or more past due
|
|
Total past due
|
|
Current
|
|
Total finance receivables and loans
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
$
|
1,850
|
|
|
$
|
428
|
|
|
$
|
302
|
|
|
$
|
2,580
|
|
|
$
|
63,213
|
|
|
$
|
65,793
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
39
|
|
|
6
|
|
|
4
|
|
|
49
|
|
|
8,245
|
|
|
8,294
|
|
||||||
Mortgage — Legacy
|
|
45
|
|
|
18
|
|
|
57
|
|
|
120
|
|
|
2,636
|
|
|
2,756
|
|
||||||
Total consumer mortgage
|
|
84
|
|
|
24
|
|
|
61
|
|
|
169
|
|
|
10,881
|
|
|
11,050
|
|
||||||
Total consumer
|
|
1,934
|
|
|
452
|
|
|
363
|
|
|
2,749
|
|
|
74,094
|
|
|
76,843
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
3
|
|
|
—
|
|
|
7
|
|
|
10
|
|
|
35,031
|
|
|
35,041
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,248
|
|
|
3,248
|
|
||||||
Commercial real estate — Automotive
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,812
|
|
|
3,812
|
|
||||||
Total commercial
|
|
3
|
|
|
—
|
|
|
7
|
|
|
10
|
|
|
42,091
|
|
|
42,101
|
|
||||||
Total consumer and commercial
|
|
$
|
1,937
|
|
|
$
|
452
|
|
|
$
|
370
|
|
|
$
|
2,759
|
|
|
$
|
116,185
|
|
|
$
|
118,944
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
$
|
1,618
|
|
|
$
|
369
|
|
|
$
|
222
|
|
|
$
|
2,209
|
|
|
$
|
62,083
|
|
|
$
|
64,292
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
44
|
|
|
5
|
|
|
10
|
|
|
59
|
|
|
6,354
|
|
|
6,413
|
|
||||||
Mortgage — Legacy
|
|
53
|
|
|
20
|
|
|
73
|
|
|
146
|
|
|
3,214
|
|
|
3,360
|
|
||||||
Total consumer mortgage
|
|
97
|
|
|
25
|
|
|
83
|
|
|
205
|
|
|
9,568
|
|
|
9,773
|
|
||||||
Total consumer
|
|
1,715
|
|
|
394
|
|
|
305
|
|
|
2,414
|
|
|
71,651
|
|
|
74,065
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31,469
|
|
|
31,469
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,640
|
|
|
2,640
|
|
||||||
Commercial real estate — Automotive
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,426
|
|
|
3,426
|
|
||||||
Total commercial
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,535
|
|
|
37,535
|
|
||||||
Total consumer and commercial
|
|
$
|
1,715
|
|
|
$
|
394
|
|
|
$
|
305
|
|
|
$
|
2,414
|
|
|
$
|
109,186
|
|
|
$
|
111,600
|
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Consumer automotive
|
|
$
|
598
|
|
|
$
|
475
|
|
Consumer mortgage
|
|
|
|
|
||||
Mortgage Finance
|
|
10
|
|
|
15
|
|
||
Mortgage — Legacy
|
|
89
|
|
|
113
|
|
||
Total consumer mortgage
|
|
99
|
|
|
128
|
|
||
Total consumer
|
|
697
|
|
|
603
|
|
||
Commercial
|
|
|
|
|
||||
Commercial and industrial
|
|
|
|
|
||||
Automotive
|
|
33
|
|
|
25
|
|
||
Other
|
|
84
|
|
|
44
|
|
||
Commercial real estate — Automotive
|
|
5
|
|
|
8
|
|
||
Total commercial
|
|
122
|
|
|
77
|
|
||
Total consumer and commercial finance receivables and loans
|
|
$
|
819
|
|
|
$
|
680
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||||
December 31, (
$ in millions
)
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||||||||
Consumer automotive
|
|
$
|
65,195
|
|
|
$
|
598
|
|
|
$
|
65,793
|
|
|
$
|
63,817
|
|
|
$
|
475
|
|
|
$
|
64,292
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
8,284
|
|
|
10
|
|
|
8,294
|
|
|
6,398
|
|
|
15
|
|
|
6,413
|
|
||||||
Mortgage — Legacy
|
|
2,667
|
|
|
89
|
|
|
2,756
|
|
|
3,247
|
|
|
113
|
|
|
3,360
|
|
||||||
Total consumer mortgage
|
|
10,951
|
|
|
99
|
|
|
11,050
|
|
|
9,645
|
|
|
128
|
|
|
9,773
|
|
||||||
Total consumer
|
|
$
|
76,146
|
|
|
$
|
697
|
|
|
$
|
76,843
|
|
|
$
|
73,462
|
|
|
$
|
603
|
|
|
$
|
74,065
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||||
December 31, (
$ in millions
)
|
|
Pass
|
|
Criticized (a)
|
|
Total
|
|
Pass
|
|
Criticized (a)
|
|
Total
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
$
|
33,160
|
|
|
$
|
1,881
|
|
|
$
|
35,041
|
|
|
$
|
29,613
|
|
|
$
|
1,856
|
|
|
$
|
31,469
|
|
Other
|
|
2,597
|
|
|
651
|
|
|
3,248
|
|
|
2,122
|
|
|
518
|
|
|
2,640
|
|
||||||
Commercial real estate — Automotive
|
|
3,653
|
|
|
159
|
|
|
3,812
|
|
|
3,265
|
|
|
161
|
|
|
3,426
|
|
||||||
Total commercial
|
|
$
|
39,410
|
|
|
$
|
2,691
|
|
|
$
|
42,101
|
|
|
$
|
35,000
|
|
|
$
|
2,535
|
|
|
$
|
37,535
|
|
(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.
|
December 31, (
$ in millions
)
|
|
Unpaid principal balance (a)
|
|
Gross carrying value
|
|
Impaired with no allowance
|
|
Impaired with an allowance
|
|
Allowance for impaired loans
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
|
$
|
407
|
|
|
$
|
370
|
|
|
$
|
131
|
|
|
$
|
239
|
|
|
$
|
28
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
|
8
|
|
|
8
|
|
|
3
|
|
|
5
|
|
|
—
|
|
|||||
Mortgage — Legacy
|
|
243
|
|
|
239
|
|
|
56
|
|
|
183
|
|
|
34
|
|
|||||
Total consumer mortgage
|
|
251
|
|
|
247
|
|
|
59
|
|
|
188
|
|
|
34
|
|
|||||
Total consumer
|
|
658
|
|
|
617
|
|
|
190
|
|
|
427
|
|
|
62
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
33
|
|
|
33
|
|
|
7
|
|
|
26
|
|
|
3
|
|
|||||
Other
|
|
99
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
19
|
|
|||||
Commercial real estate — Automotive
|
|
5
|
|
|
5
|
|
|
2
|
|
|
3
|
|
|
1
|
|
|||||
Total commercial
|
|
137
|
|
|
122
|
|
|
9
|
|
|
113
|
|
|
23
|
|
|||||
Total consumer and commercial finance receivables and loans
|
|
$
|
795
|
|
|
$
|
739
|
|
|
$
|
199
|
|
|
$
|
540
|
|
|
$
|
85
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
|
$
|
315
|
|
|
$
|
315
|
|
|
$
|
—
|
|
|
$
|
315
|
|
|
$
|
22
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
|
9
|
|
|
9
|
|
|
5
|
|
|
4
|
|
|
1
|
|
|||||
Mortgage — Legacy
|
|
260
|
|
|
257
|
|
|
59
|
|
|
198
|
|
|
43
|
|
|||||
Total consumer mortgage
|
|
269
|
|
|
266
|
|
|
64
|
|
|
202
|
|
|
44
|
|
|||||
Total consumer
|
|
584
|
|
|
581
|
|
|
64
|
|
|
517
|
|
|
66
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
25
|
|
|
25
|
|
|
4
|
|
|
21
|
|
|
3
|
|
|||||
Other
|
|
44
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|
15
|
|
|||||
Commercial real estate — Automotive
|
|
8
|
|
|
8
|
|
|
1
|
|
|
7
|
|
|
2
|
|
|||||
Total commercial
|
|
77
|
|
|
77
|
|
|
5
|
|
|
72
|
|
|
20
|
|
|||||
Total consumer and commercial finance receivables and loans
|
|
$
|
661
|
|
|
$
|
658
|
|
|
$
|
69
|
|
|
$
|
589
|
|
|
$
|
86
|
|
(a)
|
Adjusted for charge-offs.
|
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
Year ended December 31,
($ in millions)
|
|
Average balance
|
|
Interest income
|
|
Average balance
|
|
Interest income
|
|
Average balance
|
|
Interest income
|
||||||||||||
Consumer automotive
|
|
$
|
344
|
|
|
$
|
17
|
|
|
$
|
295
|
|
|
$
|
16
|
|
|
$
|
317
|
|
|
$
|
20
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
8
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||||
Mortgage — Legacy
|
|
248
|
|
|
9
|
|
|
272
|
|
|
9
|
|
|
861
|
|
|
12
|
|
||||||
Total consumer mortgage
|
|
256
|
|
|
9
|
|
|
280
|
|
|
9
|
|
|
873
|
|
|
12
|
|
||||||
Total consumer
|
|
600
|
|
|
26
|
|
|
575
|
|
|
25
|
|
|
1,190
|
|
|
32
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
35
|
|
|
1
|
|
|
33
|
|
|
1
|
|
|
61
|
|
|
2
|
|
||||||
Other
|
|
60
|
|
|
1
|
|
|
41
|
|
|
3
|
|
|
59
|
|
|
3
|
|
||||||
Commercial real estate — Automotive
|
|
6
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Total commercial
|
|
101
|
|
|
2
|
|
|
79
|
|
|
4
|
|
|
126
|
|
|
5
|
|
||||||
Total consumer and commercial finance receivables and loans
|
|
$
|
701
|
|
|
$
|
28
|
|
|
$
|
654
|
|
|
$
|
29
|
|
|
$
|
1,316
|
|
|
$
|
37
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||
Year ended December 31,
($ in millions)
|
|
Number of loans
|
|
Gross carrying value
|
|
Charge-off amount
|
|
Number of loans
|
|
Gross carrying value
|
|
Charge-off amount
|
||||||||||
Consumer automotive
|
|
7,800
|
|
|
$
|
94
|
|
|
$
|
56
|
|
|
6,836
|
|
|
$
|
82
|
|
|
$
|
47
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage — Legacy
|
|
4
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
1
|
|
|
—
|
|
||||
Total consumer finance receivables and loans
|
|
7,804
|
|
|
$
|
94
|
|
|
$
|
56
|
|
|
6,846
|
|
|
$
|
83
|
|
|
$
|
47
|
|
|
2016 (a)
|
|
2015
|
||||||||
December 31,
|
Consumer automotive
|
|
Consumer mortgage
|
|
Consumer automotive
|
|
Consumer mortgage
|
||||
Texas
|
13.6
|
%
|
|
6.6
|
%
|
|
13.7
|
%
|
|
6.2
|
%
|
California
|
7.8
|
|
|
34.2
|
|
|
7.3
|
|
|
33.6
|
|
Florida
|
8.2
|
|
|
4.4
|
|
|
7.7
|
|
|
4.1
|
|
Pennsylvania
|
4.7
|
|
|
1.5
|
|
|
5.0
|
|
|
1.5
|
|
Illinois
|
4.3
|
|
|
3.4
|
|
|
4.4
|
|
|
4.1
|
|
Georgia
|
4.3
|
|
|
2.2
|
|
|
4.4
|
|
|
2.2
|
|
North Carolina
|
3.6
|
|
|
1.6
|
|
|
3.6
|
|
|
1.8
|
|
Ohio
|
3.5
|
|
|
0.5
|
|
|
3.7
|
|
|
0.6
|
|
New York
|
3.2
|
|
|
1.9
|
|
|
3.5
|
|
|
1.9
|
|
Michigan
|
2.7
|
|
|
1.9
|
|
|
3.1
|
|
|
2.4
|
|
Other United States
|
44.1
|
|
|
41.8
|
|
|
43.6
|
|
|
41.6
|
|
Total consumer loans
|
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, 2016.
|
December 31,
|
2016
|
|
2015
|
||
Texas
|
16.1
|
%
|
|
17.7
|
%
|
Florida
|
10.2
|
|
|
10.0
|
|
California
|
7.9
|
|
|
8.7
|
|
Michigan
|
7.6
|
|
|
8.9
|
|
New Jersey
|
4.2
|
|
|
2.1
|
|
Georgia
|
3.6
|
|
|
3.6
|
|
North Carolina
|
3.6
|
|
|
3.8
|
|
Pennsylvania
|
3.1
|
|
|
3.4
|
|
South Carolina
|
2.7
|
|
|
2.2
|
|
New York
|
2.6
|
|
|
3.1
|
|
Other United States
|
38.4
|
|
|
36.5
|
|
Total commercial real estate finance receivables and loans
|
100.0
|
%
|
|
100.0
|
%
|
December 31,
|
2016
|
|
2015
|
||
Automotive
|
81.2
|
%
|
|
80.5
|
%
|
Services
|
6.3
|
|
|
5.3
|
|
Electronics
|
4.2
|
|
|
3.3
|
|
Other
|
8.3
|
|
|
10.9
|
|
Total commercial criticized finance receivables and loans
|
100.0
|
%
|
|
100.0
|
%
|
December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
||||
Vehicles
|
|
$
|
14,584
|
|
|
$
|
20,211
|
|
Accumulated depreciation
|
|
(3,114
|
)
|
|
(3,940
|
)
|
||
Investment in operating leases, net
|
|
$
|
11,470
|
|
|
$
|
16,271
|
|
Year ended December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
||||||
Depreciation expense on operating lease assets (excluding remarketing gains)
|
$
|
1,982
|
|
|
$
|
2,600
|
|
|
$
|
2,666
|
|
Remarketing gains
|
(213
|
)
|
|
(351
|
)
|
|
(433
|
)
|
|||
Net depreciation expense on operating lease assets
|
$
|
1,769
|
|
|
$
|
2,249
|
|
|
$
|
2,233
|
|
Year ended December 31, (
$ in millions
)
|
|
||
2017
|
$
|
1,759
|
|
2018
|
821
|
|
|
2019
|
307
|
|
|
2020
|
44
|
|
|
2021 and thereafter
|
2
|
|
|
Total
|
$
|
2,933
|
|
December 31,
($ in millions)
|
|
Net carrying value of total assets
|
Carrying value of total liabilities
|
Assets sold to
nonconsolidated VIEs (a) |
|
Maximum exposure to
loss in nonconsolidated VIEs |
|||||||||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||
On-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
$
|
20,869
|
|
(b)
|
$
|
8,557
|
|
(c)
|
|
|
|
|
||||
Commercial automotive
|
|
16,278
|
|
|
4,764
|
|
|
|
|
|
|
||||||
Off-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
24
|
|
|
—
|
|
|
$
|
2,899
|
|
|
$
|
2,923
|
|
(d)
|
||
Commercial other
|
|
460
|
|
(e)
|
169
|
|
(f)
|
—
|
|
|
651
|
|
(g)
|
||||
Total
|
|
$
|
37,631
|
|
|
$
|
13,490
|
|
|
$
|
2,899
|
|
|
$
|
3,574
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
||||||||
On-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
$
|
27,967
|
|
(b)
|
$
|
12,406
|
|
(c)
|
|
|
|
|
||||
Commercial automotive
|
|
16,763
|
|
|
7,982
|
|
|
|
|
|
|
||||||
Off-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
—
|
|
|
—
|
|
|
$
|
3,034
|
|
|
$
|
3,034
|
|
(d)
|
||
Commercial other
|
|
210
|
|
(e)
|
—
|
|
|
—
|
|
|
493
|
|
(g)
|
||||
Total
|
|
$
|
44,940
|
|
|
$
|
20,388
|
|
|
$
|
3,034
|
|
|
$
|
3,527
|
|
|
(a)
|
Asset values represent the current unpaid principal balance of outstanding consumer finance receivables and loans within the VIEs.
|
(b)
|
Includes
$9.6 billion
and
$10.6 billion
of assets that are not encumbered by VIE beneficial interests held by third parties at
December 31, 2016
, and
December 31, 2015
, respectively. Ally or consolidated affiliates hold the interests in these assets, which eliminate in consolidation.
|
(c)
|
Includes
$50 million
and
$99 million
of liabilities due to consolidated affiliates at
December 31, 2016
, and
December 31, 2015
, respectively. These liabilities are not obligations to third-party beneficial interest holders. These liabilities are secured by a portion of the unencumbered assets and eliminate in consolidation.
|
(d)
|
Maximum exposure to loss represents the current unpaid principal balance of outstanding loans based on our customary representation and warranty provisions and certain noncertificated interests retained from the sale of automotive finance receivables. This measure is based on the unlikely event that all of the loans have underwriting defects or other defects that trigger a representation and warranty provision and the collateral supporting the loans are worthless. This required disclosure is not an indication of our expected loss.
|
(e)
|
Amounts are classified as other assets.
|
(f)
|
Amounts are classified as accrued expenses and other liabilities.
|
(g)
|
For certain nonconsolidated affordable housing entities, maximum exposure to loss represents the yield we guaranteed investors through long term guarantee contracts. The amount disclosed is based on the unlikely event that the underlying properties cease generating yield to investors and the yield delivered to investors in the form of low income tax housing credits is recaptured. For nonconsolidated equity investments, maximum exposure to loss represents our outstanding investment, additional committed capital, and low income housing tax credits subject to recapture. The amount disclosed is based on the unlikely event that our committed capital is funded, our investments become worthless, and the tax credits previously delivered to us are recaptured. This required disclosure is not an indication of our expected loss.
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
||||
Assets
|
|
|
|
||||
Finance receivables and loans, net
|
|
|
|
||||
Consumer
|
$
|
8,929
|
|
|
$
|
11,682
|
|
Commercial
|
15,701
|
|
|
16,247
|
|
||
Allowance for loan losses
|
(173
|
)
|
|
(196
|
)
|
||
Total finance receivables and loans, net
|
24,457
|
|
|
27,733
|
|
||
Investment in operating leases, net
|
1,745
|
|
|
4,791
|
|
||
Other assets
|
1,390
|
|
|
1,624
|
|
||
Total assets
|
$
|
27,592
|
|
|
$
|
34,148
|
|
Liabilities
|
|
|
|
||||
Long-term debt
|
13,259
|
|
|
20,267
|
|
||
Accrued expenses and other liabilities
|
12
|
|
|
22
|
|
||
Total liabilities
|
$
|
13,271
|
|
|
$
|
20,289
|
|
Year ended December 31,
($ in millions)
|
|
Consumer automotive
|
Consumer mortgage
|
||||
2016
|
|
|
|
||||
Cash proceeds from transfers completed during the period
|
|
$
|
1,715
|
|
$
|
—
|
|
Servicing fees
|
|
35
|
|
—
|
|
||
Other cash flows
|
|
8
|
|
—
|
|
||
2015
|
|
|
|
||||
Cash proceeds from transfers completed during the period
|
|
$
|
1,551
|
|
$
|
—
|
|
Servicing fees
|
|
28
|
|
—
|
|
||
2014
|
|
|
|
||||
Cash proceeds from transfers completed during the period
|
|
$
|
2,594
|
|
$
|
—
|
|
Servicing fees
|
|
11
|
|
—
|
|
||
Representations and warranties obligations
|
|
—
|
|
(31
|
)
|
|
|
Total Amount
|
|
Amount 60 days or more
past due |
|
Net credit losses
|
||||||||||||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
On-balance sheet loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
$
|
65,793
|
|
|
$
|
64,292
|
|
|
$
|
730
|
|
|
$
|
591
|
|
|
$
|
795
|
|
|
$
|
578
|
|
Consumer mortgage
|
|
11,050
|
|
|
9,773
|
|
|
85
|
|
|
108
|
|
|
7
|
|
|
31
|
|
||||||
Commercial automotive
|
|
38,853
|
|
|
34,895
|
|
|
7
|
|
|
—
|
|
|
1
|
|
|
3
|
|
||||||
Commercial other
|
|
3,248
|
|
|
2,745
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(3
|
)
|
||||||
Total on-balance sheet loans
|
|
118,944
|
|
|
111,705
|
|
|
822
|
|
|
699
|
|
|
801
|
|
|
609
|
|
||||||
Off-balance sheet securitization entities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
2,392
|
|
|
2,529
|
|
|
13
|
|
|
9
|
|
|
8
|
|
|
5
|
|
||||||
Total off-balance sheet securitization entities
|
|
2,392
|
|
|
2,529
|
|
|
13
|
|
|
9
|
|
|
8
|
|
|
5
|
|
||||||
Whole-loan sales (a)
|
|
3,164
|
|
|
2,252
|
|
|
6
|
|
|
13
|
|
|
3
|
|
|
—
|
|
||||||
Total
|
|
$
|
124,500
|
|
|
$
|
116,486
|
|
|
$
|
841
|
|
|
$
|
721
|
|
|
$
|
812
|
|
|
$
|
614
|
|
(a)
|
Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.
|
December 31,
($ in millions)
|
2016
|
|
2015
|
||||
On-balance sheet automotive finance loans and leases
|
|
|
|
||||
Consumer automotive
|
$
|
65,646
|
|
|
$
|
64,067
|
|
Commercial automotive
|
38,853
|
|
|
34,895
|
|
||
Operating leases
|
11,311
|
|
|
15,965
|
|
||
Other
|
67
|
|
|
72
|
|
||
Off-balance sheet automotive finance loans
|
|
|
|
||||
Securitizations
|
2,412
|
|
|
2,550
|
|
||
Whole-loan
|
3,191
|
|
|
2,259
|
|
||
Total serviced automotive finance loans and leases
|
$
|
121,480
|
|
|
$
|
119,808
|
|
December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
||||
Prepaid reinsurance premiums
|
|
$
|
439
|
|
|
$
|
382
|
|
Reinsurance recoverable on unpaid losses
|
|
108
|
|
|
120
|
|
||
Reinsurance recoverable on paid losses
|
|
20
|
|
|
18
|
|
||
Premiums receivable
|
|
80
|
|
|
82
|
|
||
Deferred policy acquisition costs
|
|
1,258
|
|
|
1,199
|
|
||
Total premiums receivable and other insurance assets
|
|
$
|
1,905
|
|
|
$
|
1,801
|
|
December 31,
($ in millions)
|
|
2016
|
|
2015
|
||||
Property and equipment at cost
|
|
$
|
901
|
|
|
$
|
691
|
|
Accumulated depreciation
|
|
(525
|
)
|
|
(456
|
)
|
||
Net property and equipment
|
|
376
|
|
|
235
|
|
||
Restricted cash collections for securitization trusts (a)
|
|
1,694
|
|
|
2,010
|
|
||
Nonmarketable equity investments (b)
|
|
1,046
|
|
|
418
|
|
||
Net deferred tax assets
|
|
994
|
|
|
1,369
|
|
||
Accrued interest and rent receivables
|
|
476
|
|
|
402
|
|
||
Goodwill (c)
|
|
240
|
|
|
27
|
|
||
Cash reserve deposits held-for-securitization trusts (d)
|
|
184
|
|
|
252
|
|
||
Cash collateral placed with counterparties
|
|
167
|
|
|
125
|
|
||
Restricted cash and cash equivalents
|
|
111
|
|
|
120
|
|
||
Other accounts receivable
|
|
100
|
|
|
158
|
|
||
Fair value of derivative contracts in receivable position (e)
|
|
95
|
|
|
233
|
|
||
Other assets
|
|
1,371
|
|
|
972
|
|
||
Total other assets
|
|
$
|
6,854
|
|
|
$
|
6,321
|
|
(a)
|
Represents cash collections from customer payments on securitized receivables. These funds are distributed to investors as payments on the related secured debt.
|
(b)
|
Includes investments in FHLB stock of
$577 million
and
$391 million
and FRB stock of
$435 million
and
$0 million
at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(c)
|
Includes goodwill of
$27 million
at our Insurance operations at both
December 31, 2016
, and
December 31, 2015
,
$193 million
and
$0 million
within Corporate and Other at
December 31, 2016
, and
December 31, 2015
, respectively, and
$20 million
and
$0 million
within Automotive Finance operations at
December 31, 2016
, and
December 31, 2015
, respectively. As a result of our acquisition of TradeKing, we recognized
$193 million
of goodwill within Corporate and Other on
June 1, 2016
. On August 1, 2016, we purchased assets from Blue Yield. As a result of this purchase, we recognized
$20 million
of goodwill within Automotive Finance operations. No other changes in the carrying amount of goodwill were recorded during the year ended
December 31, 2016
.
|
(d)
|
Represents credit enhancement in the form of cash reserves for various securitization transactions.
|
(e)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
||||
Noninterest-bearing deposits
|
$
|
84
|
|
|
$
|
89
|
|
Interest-bearing deposits
|
|
|
|
||||
Savings and money market checking accounts
|
46,976
|
|
|
36,386
|
|
||
Certificates of deposit
|
31,795
|
|
|
29,774
|
|
||
Dealer deposits
|
167
|
|
|
229
|
|
||
Total deposit liabilities
|
$
|
79,022
|
|
|
$
|
66,478
|
|
|
|
2016
|
|
2015
|
||||||||||||||||||||
December 31,
($ in millions)
|
|
Unsecured
|
|
Secured (a)
|
|
Total
|
|
Unsecured
|
|
Secured (a)
|
|
Total
|
||||||||||||
Demand notes
|
|
$
|
3,622
|
|
|
$
|
—
|
|
|
$
|
3,622
|
|
|
$
|
3,369
|
|
|
$
|
—
|
|
|
$
|
3,369
|
|
Federal Home Loan Bank
|
|
—
|
|
|
7,875
|
|
|
7,875
|
|
|
—
|
|
|
4,000
|
|
|
4,000
|
|
||||||
Financial instruments sold under agreements to repurchase
|
|
—
|
|
|
1,176
|
|
|
1,176
|
|
|
—
|
|
|
648
|
|
|
648
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
||||||
Total short-term borrowings
|
|
$
|
3,622
|
|
|
$
|
9,051
|
|
|
$
|
12,673
|
|
|
$
|
3,453
|
|
|
$
|
4,648
|
|
|
$
|
8,101
|
|
Weighted average interest rate (b)
|
|
|
|
|
|
1.0
|
%
|
|
|
|
|
|
0.8
|
%
|
(a)
|
Refer to the section below titled
Long-term Debt
for further details on assets restricted as collateral for payment of the related debt.
|
(b)
|
Based on the debt outstanding and the interest rate at December 31 of each year.
|
December 31,
($ in millions)
|
Amount
|
|
Interest rate
|
|
Weighted-average interest rate (a)
|
|
Due date range
|
|||
2016
|
|
|
|
|
|
|
|
|||
Unsecured debt
|
|
|
|
|
|
|
|
|||
Fixed rate (b)
|
$
|
17,155
|
|
|
|
|
|
|
|
|
Variable rate
|
1
|
|
|
|
|
|
|
|
||
Trust preferred securities
|
2,568
|
|
|
|
|
|
|
|
||
Fair value adjustment (c)
|
326
|
|
|
|
|
|
|
|
||
Total unsecured debt
|
20,050
|
|
|
0.68–8.00%
|
|
5.36
|
%
|
|
2017–2049
|
|
Secured debt
|
|
|
|
|
|
|
|
|||
Fixed rate
|
17,935
|
|
|
|
|
|
|
|
||
Variable rate
|
16,154
|
|
|
|
|
|
|
|
||
Fair value adjustment
|
(11
|
)
|
|
|
|
|
|
|
||
Total secured debt (d) (e) (f)
|
34,078
|
|
|
0.63–4.55%
|
|
1.53
|
%
|
|
2017–2035
|
|
Total long-term debt
|
$
|
54,128
|
|
|
|
|
|
|
|
|
2015
|
|
|
|
|
|
|
|
|||
Unsecured debt
|
|
|
|
|
|
|
|
|||
Fixed rate (b)
|
$
|
17,657
|
|
|
|
|
|
|
|
|
Variable rate
|
375
|
|
|
|
|
|
|
|
||
Trust preferred securities
|
2,600
|
|
|
|
|
|
|
|
||
Fair value adjustment (c)
|
334
|
|
|
|
|
|
|
|
||
Total unsecured debt
|
20,966
|
|
|
0.37–8.13%
|
|
5.40
|
%
|
|
2016–2049
|
|
Secured debt
|
|
|
|
|
|
|
|
|||
Fixed rate
|
20,511
|
|
|
|
|
|
|
|
||
Variable rate
|
24,760
|
|
|
|
|
|
|
|
||
Fair value adjustment (c)
|
(3
|
)
|
|
|
|
|
|
|
||
Total secured debt (d) (e) (f)
|
45,268
|
|
|
0.48–4.06%
|
|
1.18
|
%
|
|
2016–2035
|
|
Total long-term debt
|
$
|
66,234
|
|
|
|
|
|
|
|
(a)
|
Based on the debt outstanding and the interest rate at December 31 of each year excluding any impacts of interest rate hedges.
|
(b)
|
Includes subordinated debt of
$1.4 billion
and
$1.1 billion
at
December 31, 2016
, and
2015
, respectively.
|
(c)
|
Represents the fair value adjustment associated with the application of hedge accounting on certain of our long-term debt positions. Refer to
Note 22
to the
Consolidated Financial Statements
for additional information.
|
(d)
|
Includes
$13.3 billion
and
$20.3 billion
of VIE secured debt at
December 31, 2016
, and
2015
, respectively.
|
(e)
|
Includes
$14.8 billion
and
$19.9 billion
of debt outstanding from the Automotive secured revolving credit facilities at
December 31, 2016
, and
2015
, respectively.
|
(f)
|
Includes advances from the Federal Home Loan Bank of Pittsburgh of
$6.1 billion
and $
5.4 billion
at
December 31, 2016
, and
December 31, 2015
, respectively.
|
|
|
2016
|
|
2015
|
||||||||||||||||||||
December 31,
($ in millions)
|
|
Unsecured
|
|
Secured
|
|
Total
|
|
Unsecured
|
|
Secured
|
|
Total
|
||||||||||||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
4,274
|
|
|
$
|
10,279
|
|
|
$
|
14,553
|
|
|
$
|
1,829
|
|
|
$
|
9,427
|
|
|
$
|
11,256
|
|
Due after one year
|
|
15,450
|
|
|
23,810
|
|
|
39,260
|
|
|
18,803
|
|
|
35,844
|
|
|
54,647
|
|
||||||
Fair value adjustment
|
|
326
|
|
|
(11
|
)
|
|
315
|
|
|
334
|
|
|
(3
|
)
|
|
331
|
|
||||||
Total long-term debt
|
|
$
|
20,050
|
|
|
$
|
34,078
|
|
|
$
|
54,128
|
|
|
$
|
20,966
|
|
|
$
|
45,268
|
|
|
$
|
66,234
|
|
($ in millions)
|
|
2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
2022 and thereafter
|
|
Fair value adjustment
|
|
Total
|
||||||||||||||||
Unsecured
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt
|
|
$
|
4,365
|
|
|
$
|
3,700
|
|
|
$
|
1,681
|
|
|
$
|
2,212
|
|
|
$
|
638
|
|
|
$
|
8,454
|
|
|
$
|
326
|
|
|
$
|
21,376
|
|
Original issue discount
|
|
(91
|
)
|
|
(101
|
)
|
|
(39
|
)
|
|
(39
|
)
|
|
(43
|
)
|
|
(1,013
|
)
|
|
—
|
|
|
(1,326
|
)
|
||||||||
Total unsecured
|
|
4,274
|
|
|
3,599
|
|
|
1,642
|
|
|
2,173
|
|
|
595
|
|
|
7,441
|
|
|
326
|
|
|
20,050
|
|
||||||||
Secured
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt
|
|
10,279
|
|
|
8,156
|
|
|
7,334
|
|
|
4,248
|
|
|
2,481
|
|
|
1,591
|
|
|
(11
|
)
|
|
34,078
|
|
||||||||
Total long-term debt
|
|
$
|
14,553
|
|
|
$
|
11,755
|
|
|
$
|
8,976
|
|
|
$
|
6,421
|
|
|
$
|
3,076
|
|
|
$
|
9,032
|
|
|
$
|
315
|
|
|
$
|
54,128
|
|
|
|
2016
|
|
2015
|
||||||||||||
December 31,
($ in millions)
|
|
Total
|
|
Ally Bank (a)
|
|
Total
|
|
Ally Bank (a)
|
||||||||
Investment securities (b)
|
|
$
|
4,895
|
|
|
$
|
4,231
|
|
|
$
|
2,420
|
|
|
$
|
1,761
|
|
Mortgage assets held-for-investment and lending receivables
|
|
10,954
|
|
|
10,954
|
|
|
9,743
|
|
|
9,743
|
|
||||
Consumer automotive finance receivables (b)
|
|
27,846
|
|
|
5,751
|
|
|
34,324
|
|
|
9,167
|
|
||||
Commercial automotive finance receivables
|
|
19,487
|
|
|
19,280
|
|
|
19,623
|
|
|
19,177
|
|
||||
Investment in operating leases, net
|
|
2,040
|
|
|
913
|
|
|
5,539
|
|
|
3,205
|
|
||||
Total assets restricted as collateral (c) (d)
|
|
$
|
65,222
|
|
|
$
|
41,129
|
|
|
$
|
71,649
|
|
|
$
|
43,053
|
|
Secured debt
|
|
$
|
43,129
|
|
(e)
|
$
|
22,149
|
|
|
$
|
49,916
|
|
(e)
|
$
|
24,787
|
|
(a)
|
Ally Bank is a component of the total column.
|
(b)
|
A portion of the restricted investment securities and consumer automotive finance receivables are restricted under repurchase agreements. Refer to the section above titled
Short-term Borrowings
for information on the repurchase agreements.
|
(c)
|
Ally Bank has an advance agreement with the FHLB, and had assets pledged to secure borrowings that were restricted as collateral to the FHLB totaling
$19.0 billion
and
$14.9 billion
at
December 31, 2016
, and
December 31, 2015
, respectively. These assets were composed primarily of consumer mortgage finance receivables and loans, net, and investment securities. Ally Bank has access to the Federal Reserve Bank Discount Window. Ally Bank had assets pledged and restricted as collateral to the Federal Reserve Bank totaling
$2.4 billion
and
$2.9 billion
at
December 31, 2016
, and
December 31, 2015
, respectively. These assets were composed of consumer automotive finance receivables and loans, net, and investment in operating leases, net. Availability under these programs is only for the operations of Ally Bank and cannot be used to fund the operations or liabilities of Ally or its subsidiaries.
|
(d)
|
Excludes restricted cash and cash reserves for securitization trusts recorded within other assets on the
Consolidated Balance Sheet
. Refer to
Note 14
to the
Consolidated Financial Statements
for additional information.
|
(e)
|
Includes
$9.1 billion
and
$4.6 billion
of short-term borrowings at
December 31, 2016
, and
December 31, 2015
, respectively.
|
|
|
Outstanding
|
|
Unused capacity (a)
|
|
Total capacity
|
||||||||||||||||||
December 31,
($ in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
Bank funding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured (b)
|
|
$
|
3,250
|
|
|
$
|
3,250
|
|
|
$
|
350
|
|
|
$
|
—
|
|
|
$
|
3,600
|
|
|
$
|
3,250
|
|
Parent funding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured
|
|
11,550
|
|
|
16,914
|
|
|
1,975
|
|
|
251
|
|
|
13,525
|
|
|
17,165
|
|
||||||
Unsecured (c)
|
|
—
|
|
|
—
|
|
|
1,250
|
|
|
—
|
|
|
1,250
|
|
|
—
|
|
||||||
Total committed facilities
|
|
$
|
14,800
|
|
|
$
|
20,164
|
|
|
$
|
3,575
|
|
|
$
|
251
|
|
|
$
|
18,375
|
|
|
$
|
20,415
|
|
(a)
|
Funding from committed secured facilities is available on request in the event excess collateral resides in certain facilities or is available to the extent incremental collateral is available and contributed to the facilities.
|
(b)
|
Excludes off-balance sheet credit facility amounts.
|
(c)
|
This facility was fully drawn in January 2017. Refer to Note 32 for further information.
|
December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
||||
Accounts payable
|
|
$
|
649
|
|
|
$
|
391
|
|
Employee compensation and benefits
|
|
232
|
|
|
242
|
|
||
Reserves for insurance losses and loss adjustment expenses
|
|
149
|
|
|
169
|
|
||
Fair value of derivative contracts in payable position (a)
|
|
95
|
|
|
145
|
|
||
Deferred revenue
|
|
56
|
|
|
108
|
|
||
Cash collateral received from counterparties
|
|
10
|
|
|
82
|
|
||
Other liabilities
|
|
546
|
|
|
408
|
|
||
Total accrued expenses and other liabilities
|
|
$
|
1,737
|
|
|
$
|
1,545
|
|
(a)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
Year ended December 31, (
shares in thousands
) (a)
|
2016
|
|
2015
|
|
2014
|
|||
Common stock
|
|
|
|
|
|
|||
Total issued, January 1,
|
482,791
|
|
|
480,136
|
|
|
479,767
|
|
New issuances
|
|
|
|
|
|
|||
Employee benefits and compensation plans
|
2,917
|
|
|
2,655
|
|
|
369
|
|
Total issued, December 31,
|
485,708
|
|
|
482,791
|
|
|
480,136
|
|
Treasury balance, January 1,
|
(811
|
)
|
|
(41
|
)
|
|
—
|
|
Repurchase of common stock (b) (c)
|
(17,897
|
)
|
|
(769
|
)
|
|
(41
|
)
|
Total treasury stock, December 31,
|
(18,707
|
)
|
|
(811
|
)
|
|
(41
|
)
|
Total outstanding, December 31,
|
467,000
|
|
|
481,980
|
|
|
480,095
|
|
(a)
|
Figures in the table may not recalculate exactly due to rounding. Number of shares issued, in treasury, and outstanding are calculated based on unrounded numbers.
|
(b)
|
Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.
|
(c)
|
On July 19, 2016, we announced a common stock repurchase program of up to
$700 million
. The program commenced in the third quarter of 2016 and will expire on June 30, 2017.
|
($ in millions)
|
Unrealized (losses) gains on investment securities (a)
|
|
Translation adjustments and net investment hedges (b)
|
|
Cash flow hedges (b)
|
|
Defined benefit pension plans
|
|
Accumulated other comprehensive loss
|
||||||||||
Balance at January 1, 2014
|
$
|
(269
|
)
|
|
$
|
65
|
|
|
$
|
5
|
|
|
$
|
(77
|
)
|
|
$
|
(276
|
)
|
2014 net change
|
248
|
|
|
(29
|
)
|
|
2
|
|
|
(11
|
)
|
|
210
|
|
|||||
Balance at December 31, 2014
|
$
|
(21
|
)
|
|
$
|
36
|
|
|
$
|
7
|
|
|
$
|
(88
|
)
|
|
$
|
(66
|
)
|
2015 net change
|
(138
|
)
|
|
(27
|
)
|
|
1
|
|
|
(1
|
)
|
|
(165
|
)
|
|||||
Balance at December 31, 2015
|
$
|
(159
|
)
|
|
$
|
9
|
|
|
$
|
8
|
|
|
$
|
(89
|
)
|
|
$
|
(231
|
)
|
2016 net change
|
(114
|
)
|
|
5
|
|
|
—
|
|
|
(1
|
)
|
|
(110
|
)
|
|||||
Balance at December 31, 2016
|
$
|
(273
|
)
|
|
$
|
14
|
|
|
$
|
8
|
|
|
$
|
(90
|
)
|
|
$
|
(341
|
)
|
(a)
|
Represents the after-tax difference between the fair value and amortized cost of our available-for-sale securities portfolio.
|
(b)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
Year ended December 31, 2016
($ in millions)
|
Before tax
|
|
Tax effect
|
|
After tax
|
||||||
Investment securities
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
33
|
|
Less: Net realized gains reclassified to income from continuing operations
|
185
|
|
(a)
|
(38
|
)
|
(b)
|
147
|
|
|||
Net change
|
(172
|
)
|
|
58
|
|
|
(114
|
)
|
|||
Translation adjustments
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
5
|
|
|
(2
|
)
|
|
3
|
|
|||
Less: Net realized losses reclassified to income from discontinued operations, net of tax
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Net change
|
6
|
|
|
(2
|
)
|
|
4
|
|
|||
Net investment hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
1
|
|
|
—
|
|
|
1
|
|
|||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(5
|
)
|
|
2
|
|
|
(3
|
)
|
|||
Less: Net realized losses reclassified to income from continuing operations
|
(4
|
)
|
(d)
|
2
|
|
(b)
|
(2
|
)
|
|||
Net change
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other comprehensive loss
|
$
|
(166
|
)
|
|
$
|
56
|
|
|
$
|
(110
|
)
|
(a)
|
Includes gains reclassified to other gain on investments, net in our
Consolidated Statement of Income
.
|
(b)
|
Includes amounts reclassified to income tax expense from continuing operations in our
Consolidated Statement of Income
.
|
(c)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(d)
|
Includes gains reclassified to compensation and benefits expense in our
Consolidated Statement of Income
.
|
Year ended December 31, 2015
($ in millions)
|
Before tax
|
|
Tax effect
|
|
After tax
|
||||||
Investment securities
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
$
|
(65
|
)
|
|
$
|
26
|
|
|
$
|
(39
|
)
|
Less: Net realized gains reclassified to income from continuing operations
|
155
|
|
(a)
|
(56
|
)
|
(b)
|
99
|
|
|||
Net change
|
(220
|
)
|
|
82
|
|
|
(138
|
)
|
|||
Translation adjustments
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(39
|
)
|
|
13
|
|
|
(26
|
)
|
|||
Less: Net realized gains reclassified to income from discontinued operations, net of tax
|
42
|
|
|
(20
|
)
|
|
22
|
|
|||
Net change
|
(81
|
)
|
|
33
|
|
|
(48
|
)
|
|||
Net investment hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
29
|
|
|
(11
|
)
|
|
18
|
|
|||
Less: Net realized losses reclassified to income from discontinued operations, net of tax
|
(4
|
)
|
|
1
|
|
|
(3
|
)
|
|||
Net change
|
33
|
|
|
(12
|
)
|
|
21
|
|
|||
Cash flow hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Net unrealized gains (losses) arising during the period
|
—
|
|
|
—
|
|
|
—
|
|
|||
Less: Net realized gains reclassified to income from continuing operations
|
1
|
|
(d)
|
—
|
|
(b)
|
1
|
|
|||
Net change
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other comprehensive loss
|
$
|
(267
|
)
|
|
$
|
102
|
|
|
$
|
(165
|
)
|
(a)
|
Includes gains reclassified to other gain on investments, net in our
Consolidated Statement of Income
.
|
(b)
|
Includes amounts reclassified to income tax expense from continuing operations in our
Consolidated Statement of Income
.
|
(c)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(d)
|
Includes gains reclassified to compensation and benefits expense in our
Consolidated Statement of Income
.
|
Year ended December 31, 2014
($ in millions)
|
Before tax
|
|
Tax effect
|
|
After tax
|
||||||
Investment securities
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
$
|
557
|
|
|
$
|
(142
|
)
|
|
$
|
415
|
|
Less: Net realized gains reclassified to income from continuing operations
|
181
|
|
(a)
|
(14
|
)
|
(b)
|
167
|
|
|||
Net change
|
376
|
|
|
(128
|
)
|
|
248
|
|
|||
Translation adjustments
|
|
|
|
|
|
|
|||||
Net unrealized losses arising during the period
|
(27
|
)
|
|
10
|
|
|
(17
|
)
|
|||
Less: Net realized gains reclassified to income from discontinued operations, net of tax
|
23
|
|
|
(3
|
)
|
|
20
|
|
|||
Net change
|
(50
|
)
|
|
13
|
|
|
(37
|
)
|
|||
Net investment hedges (c)
|
|
|
|
|
|
|
|||||
Net unrealized gains arising during the period
|
13
|
|
|
(5
|
)
|
|
8
|
|
|||
Cash flow hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
2
|
|
|
—
|
|
|
2
|
|
|||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(24
|
)
|
|
9
|
|
|
(15
|
)
|
|||
Less: Net realized losses reclassified to income from continuing operations
|
(7
|
)
|
(d)
|
3
|
|
(b)
|
(4
|
)
|
|||
Net change
|
(17
|
)
|
|
6
|
|
|
(11
|
)
|
|||
Other comprehensive income
|
$
|
324
|
|
|
$
|
(114
|
)
|
|
$
|
210
|
|
(a)
|
Includes gains reclassified to other gain on investments, net in our
Consolidated Statement of Income
.
|
(b)
|
Includes amounts reclassified to income tax expense from continuing operations in our
Consolidated Statement of Income
.
|
(c)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(d)
|
Includes losses reclassified to compensation and benefits expense in our
Consolidated Statement of Income
.
|
Year ended December 31, (
$ in millions, except per share data; shares in thousands
) (a)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Net income from continuing operations
|
|
$
|
1,111
|
|
|
$
|
897
|
|
|
$
|
925
|
|
Preferred stock dividends (b)
|
|
(30
|
)
|
|
(2,571
|
)
|
|
(268
|
)
|
|||
Net income (loss) from continuing operations attributable to common shareholders
|
|
1,081
|
|
|
(1,674
|
)
|
|
657
|
|
|||
(Loss) income from discontinued operations, net of tax
|
|
(44
|
)
|
|
392
|
|
|
225
|
|
|||
Net income (loss) attributable to common shareholders
|
|
$
|
1,037
|
|
|
$
|
(1,282
|
)
|
|
$
|
882
|
|
Basic weighted-average common shares outstanding (c)
|
|
481,105
|
|
|
482,873
|
|
|
481,155
|
|
|||
Diluted weighted-average common shares outstanding (c) (d)
|
|
482,182
|
|
|
482,873
|
|
|
481,934
|
|
|||
Basic earnings per common share
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
|
$
|
2.25
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
(Loss) income from discontinued operations, net of tax
|
|
(0.09
|
)
|
|
0.81
|
|
|
0.47
|
|
|||
Net income (loss)
|
|
$
|
2.15
|
|
|
$
|
(2.66
|
)
|
|
$
|
1.83
|
|
Diluted earnings per common share
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
|
$
|
2.24
|
|
|
$
|
(3.47
|
)
|
|
$
|
1.36
|
|
(Loss) income from discontinued operations, net of tax
|
|
(0.09
|
)
|
|
0.81
|
|
|
0.47
|
|
|||
Net income (loss)
|
|
$
|
2.15
|
|
|
$
|
(2.66
|
)
|
|
$
|
1.83
|
|
(a)
|
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
|
(b)
|
Preferred stock dividends for the
year ended
December 31, 2015
, include
$2,364 million
recognized in connection with the partial redemption of the Series G Preferred Stock and the repurchase of the Series A Preferred Stock. These dividends represent an additional return to preferred shareholders calculated as the excess consideration paid over the carrying amount derecognized.
|
(c)
|
Includes shares related to share-based compensation that vested but were not yet issued for the years ended
December 31, 2016
,
2015
, and
2014
, respectively.
|
(d)
|
Due to the antidilutive effect of the net loss from continuing operations attributable to common shareholders for the year ended
December 31, 2015
, basic weighted-average common shares outstanding was used to calculate basic and diluted earnings per share.
|
|
December 31, 2016
|
|
December 31, 2015
|
|
Required
minimum |
|
Well-capitalized
minimum |
||||||||||||
(
$ in millions
)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|||||||||||
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier 1 (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
12,978
|
|
|
9.37
|
%
|
|
$
|
12,507
|
|
|
9.21
|
%
|
|
4.50
|
%
|
|
(a)
|
|
Ally Bank
|
17,888
|
|
|
16.70
|
|
|
16,594
|
|
|
17.05
|
|
|
4.50
|
|
|
6.50
|
%
|
||
Tier 1 (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
15,147
|
|
|
10.93
|
%
|
|
$
|
15,077
|
|
|
11.10
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
Ally Bank
|
17,888
|
|
|
16.70
|
|
|
16,594
|
|
|
17.05
|
|
|
6.00
|
|
|
8.00
|
|
||
Total (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
17,419
|
|
|
12.57
|
%
|
|
$
|
17,005
|
|
|
12.52
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Ally Bank
|
18,458
|
|
|
17.24
|
|
|
17,043
|
|
|
17.51
|
|
|
8.00
|
|
|
10.00
|
|
||
Tier 1 leverage (to adjusted quarterly average assets) (b)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
15,147
|
|
|
9.54
|
%
|
|
$
|
15,077
|
|
|
9.73
|
%
|
|
4.00
|
%
|
|
(a)
|
|
Ally Bank
|
17,888
|
|
|
15.21
|
|
|
16,594
|
|
|
15.38
|
|
|
15.00
|
|
(c)
|
5.00
|
%
|
(a)
|
Currently, there is no ratio component for determining whether a BHC is "well-capitalized."
|
(b)
|
Federal regulatory reporting guidelines require the calculation of adjusted quarterly average assets using a daily average methodology.
|
(c)
|
Ally Bank has committed to the FRB to maintain a Tier 1 leverage ratio of at least
15%
.
|
|
|
2016
|
|
2015
|
||||||||||||||||||||
|
|
Derivative contracts in a
|
|
Notional
amount |
|
Derivative contracts in a
|
|
Notional
amount |
||||||||||||||||
December 31,
($ in millions)
|
|
receivable
position (a) |
|
payable
position (b) |
|
receivable
position (a) |
|
payable
position (b) |
|
|||||||||||||||
Derivatives designated as accounting hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps (c) (d) (e)
|
|
$
|
19
|
|
|
$
|
21
|
|
|
$
|
4,731
|
|
|
$
|
126
|
|
|
$
|
9
|
|
|
$
|
14,151
|
|
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forwards
|
|
1
|
|
|
—
|
|
|
171
|
|
|
—
|
|
|
1
|
|
|
189
|
|
||||||
Total derivatives designated as accounting hedges
|
|
20
|
|
|
21
|
|
|
4,902
|
|
|
126
|
|
|
10
|
|
|
14,340
|
|
||||||
Derivatives not designated as accounting hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps
|
|
—
|
|
|
—
|
|
|
137
|
|
|
30
|
|
|
51
|
|
|
6,101
|
|
||||||
Futures and forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
1,905
|
|
||||||
Written options
|
|
—
|
|
|
73
|
|
|
14,518
|
|
|
—
|
|
|
72
|
|
|
18,220
|
|
||||||
Purchased options
|
|
73
|
|
|
—
|
|
|
14,517
|
|
|
73
|
|
|
—
|
|
|
18,240
|
|
||||||
Total interest rate risk
|
|
73
|
|
|
73
|
|
|
29,172
|
|
|
105
|
|
|
125
|
|
|
44,466
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures and forwards
|
|
1
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
278
|
|
||||||
Total foreign exchange risk
|
|
1
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|
278
|
|
||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forwards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
32
|
|
||||||
Written options
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||||
Purchased options
|
|
1
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||||
Total equity risk
|
|
1
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
10
|
|
|
32
|
|
||||||
Total derivatives not designated as accounting hedges
|
|
75
|
|
|
74
|
|
|
29,264
|
|
|
107
|
|
|
135
|
|
|
44,776
|
|
||||||
Total derivatives
|
|
$
|
95
|
|
|
$
|
95
|
|
|
$
|
34,166
|
|
|
$
|
233
|
|
|
$
|
145
|
|
|
$
|
59,116
|
|
(a)
|
Derivative contracts in a receivable position are classified as other assets on the
Consolidated Balance Sheet
, and include accrued interest of
$7 million
and
$46 million
at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(b)
|
Derivative contracts in a liability position are classified as accrued expenses and other liabilities on the
Consolidated Balance Sheet
, and include accrued interest of
$1 million
and
$12 million
at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(c)
|
Includes fair value hedges consisting of receive-fixed swaps on fixed-rate unsecured debt obligations with
$8 million
and
$112 million
in a receivable position,
$14 million
and
$3 million
in a payable position, and a
$1.7 billion
and
$6.8 billion
notional amount at
December 31, 2016
, and
December 31, 2015
, respectively. The hedge notional amount of
$1.7 billion
at
December 31, 2016
, is associated with debt maturing in five or more years.
|
(d)
|
Includes fair value hedges consisting of receive-fixed swaps on fixed-rate secured debt obligations (FHLB Advances) with
$0 million
and
$1 million
in a receivable position,
$7 million
and
$2 million
in a payable position, and a
$240 million
and
$500 million
notional amount at
December 31, 2016
, and
December 31, 2015
, respectively.
|
(e)
|
Other fair value hedges include pay-fixed swaps on portfolios of held-for-investment automotive loan assets with
$10 million
and
$13 million
in a receivable position,
$1 million
and
$3 million
in a payable position, and a
$2.8 billion
and
$6.8 billion
notional amount at
December 31, 2016
, and
December 31, 2015
, respectively.
|
Year ended December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Derivatives qualifying for hedge accounting
|
|
|
|
|
|
|
||||||
(Loss) gain recognized in earnings on derivatives
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
|
|
|
|
|
||||||
Interest and fees on finance receivables and loans (a)
|
|
$
|
(2
|
)
|
|
$
|
(9
|
)
|
|
$
|
15
|
|
Interest on long-term debt (b) (c)
|
|
65
|
|
|
35
|
|
|
199
|
|
|||
Gain (loss) recognized in earnings on hedged items
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
|
|
|
|
|
||||||
Interest and fees on finance receivables and loans (d)
|
|
—
|
|
|
39
|
|
|
34
|
|
|||
Interest on long-term debt (e)
|
|
(70
|
)
|
|
(30
|
)
|
|
(185
|
)
|
|||
Total derivatives qualifying for hedge accounting
|
|
(7
|
)
|
|
35
|
|
|
63
|
|
|||
Derivatives not designated as accounting hedges
|
|
|
|
|
|
|
||||||
(Loss) gain recognized in earnings on derivatives
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
|
|
|
|
|
||||||
Loss on mortgage and automotive loans, net
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||
Other income, net of losses
|
|
—
|
|
|
(17
|
)
|
|
(37
|
)
|
|||
Total interest rate contracts
|
|
—
|
|
|
(19
|
)
|
|
(37
|
)
|
|||
Foreign exchange contracts (f)
|
|
|
|
|
|
|
||||||
Interest on long-term debt
|
|
(2
|
)
|
|
(139
|
)
|
|
(172
|
)
|
|||
Other income, net of losses
|
|
1
|
|
|
12
|
|
|
12
|
|
|||
Total foreign exchange contracts
|
|
(1
|
)
|
|
(127
|
)
|
|
(160
|
)
|
|||
Equity contracts
|
|
|
|
|
|
|
||||||
Compensation and benefits expense
|
|
—
|
|
|
(10
|
)
|
|
(5
|
)
|
|||
Total equity contracts
|
|
—
|
|
|
(10
|
)
|
|
(5
|
)
|
|||
Loss recognized in earnings on derivatives
|
|
$
|
(8
|
)
|
|
$
|
(121
|
)
|
|
$
|
(139
|
)
|
(a)
|
Amounts exclude losses related to interest for qualifying accounting hedges of retail automotive loans held-for-investment, which are primarily offset by the fixed coupon payments of the loans. The losses were
$18 million
,
$64 million
, and
$61 million
for the
years ended
December 31, 2016
,
2015
, and 2014 respectively.
|
(b)
|
Amounts exclude gains related to interest for qualifying accounting hedges of unsecured debt, which are primarily offset by the fixed coupon payment on the long-term debt. The gains were
$40 million
,
$97 million
, and
$112 million
and for the
years ended
December 31, 2016
,
2015
, and 2014, respectively.
|
(c)
|
Amounts exclude gains related to interest for qualifying accounting hedges of secured debt (FHLB Advances), which are primarily offset by the fixed coupon payment on the long-term debt. The gains were
$5 million
and
$1 million
for the
years ended
December 31, 2016
, and
2015
, respectively.
|
(d)
|
Amounts exclude losses related to amortization of deferred loan basis adjustments on the de-designated hedged item of
$20 million
and
$8 million
for the
year ended
December 31, 2016
, and
2015
, respectively.
|
(e)
|
Amounts exclude gains related to amortization of deferred debt basis adjustments on the de-designated hedged item of
$84 million
,
$73 million
, and
$155 million
for the
years ended
December 31, 2016
,
2015
, and 2014 respectively.
|
(f)
|
Amounts exclude gains and losses related to the revaluation of the related foreign-denominated debt or receivable. Gains of
$0 million
,
$132 million
, and
$165 million
were recognized for the
years ended
December 31, 2016
,
2015
, and 2014, respectively.
|
Year ended December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
|
2014
|
||||||
Cash flow hedges
|
|
|
|
|
|
|
||||||
Interest rate contracts
|
|
|
|
|
|
|
||||||
Loss reclassified from accumulated other comprehensive loss to interest on long-term debt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Total interest on long-term debt
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(2
|
)
|
Gain recognized in other comprehensive loss
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
2
|
|
Net investment hedges
|
|
|
|
|
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
||||||
Loss reclassified from accumulated other comprehensive loss to income from discontinued operations, net
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
Total loss from discontinued operations, net
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
—
|
|
Gain recognized in other comprehensive loss (a)
|
|
$
|
1
|
|
|
$
|
33
|
|
|
$
|
13
|
|
(a)
|
The amounts represent the effective portion of net investment hedges. There are offsetting amounts recognized in accumulated other comprehensive loss related to the revaluation of the related net investment in foreign operations, including the tax impacts of the hedge and related net investment, as disclosed separately in
Note 19
to the
Consolidated Financial Statements
. There were gains of
$4 million
for the year ended
December 31, 2016
, and losses of
$59 million
, and
$41 million
for the
years ended
December 31,
2015
, and 2014, respectively.
|
Year ended December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
||||||
Current income tax expense
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
Foreign
|
8
|
|
|
6
|
|
|
8
|
|
|||
State and local
|
9
|
|
|
3
|
|
|
5
|
|
|||
Total current expense
|
17
|
|
|
9
|
|
|
10
|
|
|||
Deferred income tax expense
|
|
|
|
|
|
||||||
U.S. federal
|
423
|
|
|
454
|
|
|
270
|
|
|||
Foreign
|
—
|
|
|
1
|
|
|
2
|
|
|||
State and local
|
30
|
|
|
32
|
|
|
39
|
|
|||
Total deferred expense
|
453
|
|
|
487
|
|
|
311
|
|
|||
Total income tax expense from continuing operations
|
$
|
470
|
|
|
$
|
496
|
|
|
$
|
321
|
|
Year ended December 31, (
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
||||||
Statutory U.S. federal tax expense
|
$
|
553
|
|
|
$
|
488
|
|
|
$
|
436
|
|
Change in tax resulting from
|
|
|
|
|
|
||||||
Changes in unrecognized tax benefits (a)
|
(161
|
)
|
|
(5
|
)
|
|
(63
|
)
|
|||
Valuation allowance change, excluding expirations
|
51
|
|
|
(25
|
)
|
|
(47
|
)
|
|||
State and local income taxes, net of federal income tax benefit
|
35
|
|
|
38
|
|
|
48
|
|
|||
Tax credits, excluding expirations
|
(15
|
)
|
|
(13
|
)
|
|
(27
|
)
|
|||
Nondeductible expenses
|
7
|
|
|
14
|
|
|
31
|
|
|||
Tax law enactment
|
—
|
|
|
—
|
|
|
(39
|
)
|
|||
Other, net
|
—
|
|
|
(1
|
)
|
|
(18
|
)
|
|||
Total income tax expense from continuing operations
|
$
|
470
|
|
|
$
|
496
|
|
|
$
|
321
|
|
(a)
|
Primarily the result of a Q2 2016 U.S. tax reserve release related to a prior year federal return.
|
December 31, (
$ in millions
)
|
2016
|
|
2015
|
||||
Deferred tax assets
|
|
|
|
||||
Tax credit carryforwards
|
$
|
1,987
|
|
|
$
|
1,941
|
|
Tax loss carryforwards
|
936
|
|
|
950
|
|
||
Adjustments to loan value
|
546
|
|
|
311
|
|
||
State and local taxes
|
162
|
|
|
194
|
|
||
Unearned insurance premiums
|
141
|
|
|
141
|
|
||
Hedging transactions
|
123
|
|
|
99
|
|
||
Other
|
208
|
|
|
212
|
|
||
Gross deferred tax assets
|
4,103
|
|
|
3,848
|
|
||
Valuation allowance
|
(646
|
)
|
|
(582
|
)
|
||
Deferred tax assets, net of valuation allowance
|
3,457
|
|
|
3,266
|
|
||
Deferred tax liabilities
|
|
|
|
||||
Lease transactions
|
1,789
|
|
|
1,273
|
|
||
Deferred acquisition costs
|
424
|
|
|
403
|
|
||
Debt transactions
|
161
|
|
|
162
|
|
||
Other
|
107
|
|
|
69
|
|
||
Gross deferred tax liabilities
|
2,481
|
|
|
1,907
|
|
||
Net deferred tax assets (a)
|
$
|
976
|
|
|
$
|
1,359
|
|
(a)
|
Total net deferred tax assets include
$994 million
and
$1,369 million
of net deferred tax assets included in other assets on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax asset position and
$18 million
and
$10 million
included in accrued expenses and other liabilities on our Consolidated Balance Sheet for tax jurisdictions in a total net deferred tax liability position at December 31, 2016, and 2015, respectively.
|
(
$ in millions
)
|
|
Deferred tax asset/(liability)
|
|
Valuation allowance
|
|
Net deferred tax asset/(liability)
|
|
Years of expiration
|
||||||
Tax credit carryforwards
|
|
|
|
|
|
|
|
|
||||||
Foreign tax credits
|
|
$
|
1,771
|
|
|
$
|
(485
|
)
|
|
$
|
1,286
|
|
|
2017–2026
|
General business credits
|
|
191
|
|
|
—
|
|
|
191
|
|
|
2023–2036
|
|||
Alternative minimum tax (AMT) credits
|
|
25
|
|
|
—
|
|
|
25
|
|
|
n/a
|
|||
Total tax credit carryforwards
|
|
1,987
|
|
|
(485
|
)
|
|
1,502
|
|
|
|
|||
Tax loss carryforwards
|
|
|
|
|
|
|
|
|
||||||
Net operating losses — federal
|
|
900
|
|
|
—
|
|
|
900
|
|
|
2027–2036
|
|||
Net operating losses — state
|
|
193
|
|
(a)
|
(83
|
)
|
|
110
|
|
|
2017–2036
|
|||
Capital losses — federal
|
|
36
|
|
|
(36
|
)
|
|
—
|
|
|
2017
|
|||
Capital losses — state
|
|
9
|
|
(a)
|
(9
|
)
|
|
—
|
|
|
2017–2027
|
|||
Total tax loss carryforwards
|
|
1,138
|
|
|
(128
|
)
|
|
1,010
|
|
|
|
|||
Other deferred tax assets
|
|
978
|
|
|
(33
|
)
|
|
945
|
|
|
n/a
|
|||
Deferred tax assets
|
|
4,103
|
|
|
(646
|
)
|
|
3,457
|
|
|
|
|||
Deferred tax liabilities
|
|
(2,481
|
)
|
|
—
|
|
|
(2,481
|
)
|
|
n/a
|
|||
Net deferred tax assets
|
|
$
|
1,622
|
|
|
$
|
(646
|
)
|
|
$
|
976
|
|
|
|
(a)
|
State net operating loss and capital loss carryforwards are included in the state and local taxes total disclosed in our deferred inventory table above.
|
(
$ in millions
)
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at January 1,
|
$
|
185
|
|
|
$
|
191
|
|
|
$
|
262
|
|
Additions based on tax positions related to the current year
|
—
|
|
|
—
|
|
|
—
|
|
|||
Additions for tax positions of prior years
|
12
|
|
|
7
|
|
|
9
|
|
|||
Settlements
|
(182
|
)
|
|
(10
|
)
|
|
(79
|
)
|
|||
Expiration of statute of limitations
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|||
Balance at December 31,
|
$
|
14
|
|
|
$
|
185
|
|
|
$
|
191
|
|
Level 1
|
Inputs are quoted prices in active markets for identical assets or liabilities at the measurement date. Additionally, the entity must have the ability to access the active market, and the quoted prices cannot be adjusted by the entity.
|
Level 2
|
Inputs are other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full term of the assets or liabilities.
|
Level 3
|
Unobservable inputs are supported by little or no market activity. The unobservable inputs represent management's best assumptions of how market participants would price the assets or liabilities. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation.
|
Transfers
|
Transfers into or out of any hierarchy level are recognized at the end of the reporting period in which the transfer occurred. There were no transfers between any levels for the
year ended
December 31, 2016
.
|
•
|
Available-for-sale securities
— All classes of available-for-sale securities are carried at fair value based on observable market prices, when available. If observable market prices are not available, our valuations are based on internally developed discounted cash flow models (an income approach) that use a market-based discount rate and consider recent market transactions, experience with similar securities, current business conditions, and analysis of the underlying collateral, as available. To estimate cash flows, we are required to utilize various significant assumptions including market observable inputs (e.g., forward interest rates) and internally developed inputs (including prepayment speeds, delinquency levels, and credit losses).
|
•
|
Interests retained in financial asset sales
— Includes certain noncertificated interests retained from the sale of automotive finance receivables. Due to inactivity in the market, valuations are based on internally developed discounted cash flow models (an income approach) that use a market-based discount rate; therefore, we classified these assets as Level 3. The valuation considers recent market transactions, experience with similar assets, current business conditions, and analysis of the underlying collateral, as available. To estimate cash flows, we utilize various significant assumptions, including market observable inputs (e.g., forward interest rates) and internally developed inputs (e.g., prepayment speeds, delinquency levels, and credit losses).
|
•
|
Derivative instruments
— We enter into a variety of derivative financial instruments as part of our risk management strategies. Certain of these derivatives are exchange traded, such as Eurodollar futures, options of Eurodollar futures, and equity options. To
|
|
|
Recurring fair value measurements
|
||||||||||||||
December 31, 2016
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,620
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,620
|
|
U.S. States and political subdivisions
|
|
—
|
|
|
782
|
|
|
—
|
|
|
782
|
|
||||
Foreign government
|
|
11
|
|
|
151
|
|
|
—
|
|
|
162
|
|
||||
Agency mortgage-backed residential
|
|
—
|
|
|
10,290
|
|
|
—
|
|
|
10,290
|
|
||||
Mortgage-backed residential
|
|
—
|
|
|
2,097
|
|
|
—
|
|
|
2,097
|
|
||||
Mortgage-backed commercial
|
|
—
|
|
|
537
|
|
|
—
|
|
|
537
|
|
||||
Asset-backed
|
|
—
|
|
|
1,400
|
|
|
—
|
|
|
1,400
|
|
||||
Corporate debt
|
|
—
|
|
|
1,443
|
|
|
—
|
|
|
1,443
|
|
||||
Total debt securities
|
|
1,631
|
|
|
16,700
|
|
|
—
|
|
|
18,331
|
|
||||
Equity securities (a)
|
|
595
|
|
|
—
|
|
|
—
|
|
|
595
|
|
||||
Total available-for-sale securities
|
|
2,226
|
|
|
16,700
|
|
|
—
|
|
|
18,926
|
|
||||
Other assets
|
|
|
|
|
|
|
|
|
||||||||
Interests retained in financial asset sales
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
||||
Derivative contracts in a receivable position (b)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
92
|
|
|
—
|
|
|
92
|
|
||||
Foreign currency
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Other
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total derivative contracts in a receivable position
|
|
1
|
|
|
94
|
|
|
—
|
|
|
95
|
|
||||
Total assets
|
|
$
|
2,227
|
|
|
$
|
16,794
|
|
|
$
|
29
|
|
|
$
|
19,050
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative contracts in a payable position (b)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
(94
|
)
|
|
$
|
—
|
|
|
$
|
(94
|
)
|
Other
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Total derivative contracts in a payable position
|
|
(1
|
)
|
|
(94
|
)
|
|
—
|
|
|
(95
|
)
|
||||
Total liabilities
|
|
$
|
(1
|
)
|
|
$
|
(94
|
)
|
|
$
|
—
|
|
|
$
|
(95
|
)
|
(a)
|
Our investment in any one industry did not exceed
14%
.
|
(b)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
|
|
Recurring fair value measurements
|
||||||||||||||
December 31, 2015
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,469
|
|
|
$
|
272
|
|
|
$
|
—
|
|
|
$
|
1,741
|
|
U.S. States and political subdivisions
|
|
—
|
|
|
716
|
|
|
—
|
|
|
716
|
|
||||
Foreign government
|
|
10
|
|
|
167
|
|
|
—
|
|
|
177
|
|
||||
Agency mortgage-backed residential
|
|
—
|
|
|
7,544
|
|
|
—
|
|
|
7,544
|
|
||||
Mortgage-backed residential
|
|
—
|
|
|
2,822
|
|
|
—
|
|
|
2,822
|
|
||||
Mortgage-backed commercial
|
|
—
|
|
|
481
|
|
|
—
|
|
|
481
|
|
||||
Asset-backed
|
|
—
|
|
|
1,755
|
|
|
—
|
|
|
1,755
|
|
||||
Corporate debt
|
|
—
|
|
|
1,204
|
|
|
—
|
|
|
1,204
|
|
||||
Total debt securities
|
|
1,479
|
|
|
14,961
|
|
|
—
|
|
|
16,440
|
|
||||
Equity securities (a)
|
|
717
|
|
|
—
|
|
|
—
|
|
|
717
|
|
||||
Total available-for-sale securities
|
|
2,196
|
|
|
14,961
|
|
|
—
|
|
|
17,157
|
|
||||
Other assets
|
|
|
|
|
|
|
|
|
||||||||
Interests retained in financial asset sales
|
|
—
|
|
|
—
|
|
|
40
|
|
|
40
|
|
||||
Derivative contracts in a receivable position (b)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
2
|
|
|
229
|
|
|
—
|
|
|
231
|
|
||||
Other
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||
Total derivative contracts in a receivable position
|
|
4
|
|
|
229
|
|
|
—
|
|
|
233
|
|
||||
Total assets
|
|
$
|
2,200
|
|
|
$
|
15,190
|
|
|
$
|
40
|
|
|
$
|
17,430
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative contracts in a payable position (b)
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
(2
|
)
|
|
$
|
(133
|
)
|
|
$
|
—
|
|
|
$
|
(135
|
)
|
Foreign currency
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Other
|
|
(1
|
)
|
|
(8
|
)
|
|
—
|
|
|
(9
|
)
|
||||
Total derivative contracts in a payable position
|
|
(3
|
)
|
|
(142
|
)
|
|
—
|
|
|
(145
|
)
|
||||
Total liabilities
|
|
$
|
(3
|
)
|
|
$
|
(142
|
)
|
|
$
|
—
|
|
|
$
|
(145
|
)
|
(a)
|
Our investment in any one industry did not exceed
14%
.
|
(b)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
|
Level 3 recurring fair value measurements
|
|||||||||||||||||||||||||||
|
|
Net realized/unrealized
gains |
|
|
|
|
Fair value at
December 31, 2016 |
Net unrealized gains included in earnings
still held at December 31, 2016 |
||||||||||||||||||||
($ in millions)
|
Fair value at Jan. 1, 2016
|
included in earnings
|
|
included in OCI
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interests retained in financial asset sales
|
$
|
40
|
|
$
|
4
|
|
(a)
|
$
|
—
|
|
$
|
—
|
|
$
|
9
|
|
$
|
—
|
|
$
|
(24
|
)
|
$
|
29
|
|
$
|
—
|
|
Total assets
|
$
|
40
|
|
$
|
4
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
9
|
|
$
|
—
|
|
$
|
(24
|
)
|
$
|
29
|
|
$
|
—
|
|
(a)
|
Reported as other income, net of losses, in the
Consolidated Statement of Income
.
|
|
Level 3 recurring fair value measurements
|
|||||||||||||||||||||||||||
|
Fair value at Jan. 1, 2015
|
Net realized/unrealized
gains |
Purchases
|
Sales
|
Issuances
|
Settlements
|
Fair value at
December 31, 2015 |
Net unrealized gains included in earnings
still held at December 31, 2015 |
||||||||||||||||||||
($ in millions)
|
included in earnings
|
|
included in OCI
|
|||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Mortgage loans held-for-sale, net
|
$
|
3
|
|
$
|
1
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Other assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interests retained in financial asset sales
|
47
|
|
9
|
|
(a)
|
—
|
|
—
|
|
—
|
|
26
|
|
(42
|
)
|
40
|
|
—
|
|
|||||||||
Total assets
|
$
|
50
|
|
$
|
10
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(4
|
)
|
$
|
26
|
|
$
|
(42
|
)
|
$
|
40
|
|
$
|
—
|
|
|
|
Nonrecurring
fair value measurements |
|
Lower-of-cost or
fair value or valuation reserve allowance |
|
Total (loss)gain included in earnings for
the year ended
|
|
||||||||||||||||
December 31, 2016
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial finance receivables and loans, net (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
(4
|
)
|
|
n/m
|
(b)
|
Other
|
|
—
|
|
|
—
|
|
|
65
|
|
|
65
|
|
|
(19
|
)
|
|
n/m
|
(b)
|
|||||
Total commercial finance receivables and loans, net
|
|
—
|
|
|
—
|
|
|
92
|
|
|
92
|
|
|
(23
|
)
|
|
n/m
|
(b)
|
|||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repossessed and foreclosed assets (c)
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
(4
|
)
|
|
n/m
|
(b)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
n/m
|
(b)
|
|||||
Total assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
108
|
|
|
$
|
108
|
|
|
$
|
(27
|
)
|
|
n/m
|
|
(a)
|
Represents the portion of the portfolio specifically impaired during
2016
. The related valuation allowance represents the cumulative adjustment to fair value of those specific receivables.
|
(b)
|
We consider the applicable valuation or loan loss allowance 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 or loan loss allowance.
|
(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 measurements |
|
Lower-of-cost or
fair value or valuation reserve allowance |
|
Total loss included in earnings for
the year ended
|
|
||||||||||||||||
December 31, 2015
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-sale, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
105
|
|
|
$
|
—
|
|
|
n/m
|
(a)
|
Commercial finance receivables and loans, net (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
|
(2
|
)
|
|
n/m
|
(a)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
29
|
|
|
29
|
|
|
(15
|
)
|
|
n/m
|
(a)
|
|||||
Commercial real estate — Automotive
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
(3
|
)
|
|
n/m
|
(a)
|
|||||
Total commercial finance receivables and loans, net
|
|
—
|
|
|
—
|
|
|
52
|
|
|
52
|
|
|
(20
|
)
|
|
n/m
|
(a)
|
|||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repossessed and foreclosed assets (c)
|
|
—
|
|
|
—
|
|
|
9
|
|
|
9
|
|
|
(3
|
)
|
|
n/m
|
(a)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
|
(2
|
)
|
|
n/m
|
(a)
|
|||||
Total assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
172
|
|
|
$
|
172
|
|
|
$
|
(25
|
)
|
|
n/m
|
|
(a)
|
We consider the applicable valuation or loan loss allowance 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 or loan loss allowance.
|
(b)
|
Represents the portion of the portfolio specifically impaired during
2015
. The related valuation allowance represents the cumulative adjustment to fair value of 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.
|
|
|
|
Estimated fair value
|
||||||||||||||||
December 31,
($ in millions)
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity securities
|
$
|
839
|
|
|
$
|
—
|
|
|
$
|
789
|
|
|
$
|
—
|
|
|
$
|
789
|
|
Finance receivables and loans, net
|
117,800
|
|
|
—
|
|
|
—
|
|
|
118,750
|
|
|
118,750
|
|
|||||
Nonmarketable equity investments
|
1,046
|
|
|
—
|
|
|
1,012
|
|
|
55
|
|
|
1,067
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
$
|
79,022
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
78,469
|
|
|
$
|
78,469
|
|
Short-term borrowings
|
12,673
|
|
|
—
|
|
|
—
|
|
|
12,675
|
|
|
12,675
|
|
|||||
Long-term debt
|
54,128
|
|
|
—
|
|
|
22,036
|
|
|
34,084
|
|
|
56,120
|
|
|||||
2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-sale, net
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
105
|
|
Finance receivables and loans, net
|
110,546
|
|
|
—
|
|
|
—
|
|
|
110,737
|
|
|
110,737
|
|
|||||
Nonmarketable equity investments
|
418
|
|
|
—
|
|
|
391
|
|
|
42
|
|
|
433
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
$
|
66,478
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
66,889
|
|
|
$
|
66,889
|
|
Short-term borrowings
|
8,101
|
|
|
—
|
|
|
—
|
|
|
8,102
|
|
|
8,102
|
|
|||||
Long-term debt
|
66,234
|
|
|
—
|
|
|
23,018
|
|
|
45,157
|
|
|
68,175
|
|
•
|
Cash and cash equivalents
— Included in cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. Classified as Level 1 under the fair value hierarchy, cash and cash equivalents generally expose us to limited credit risk and are so near maturity that they present insignificant risk of changes in value because of changes in interest rates. Accordingly, the carrying value approximates the fair value of these instruments.
|
•
|
Held-to-maturity securities
— Held-to-maturity securities, which consist of residential mortgage-backed debt securities issued by government agencies, are carried at amortized cost. For fair value disclosure purposes, held-to-maturity securities are classified as Level 2, with fair value based on observable market prices, when available.
|
•
|
Finance receivables and loans, net
— With the exception of mortgage loans held-for-investment, the fair value of finance receivables and loans was based on discounted future cash flows using applicable spreads to approximate current rates applicable to each category of finance receivables and loans (an income approach using Level 3 inputs). The carrying value of commercial receivables in certain markets and certain automotive and other receivables for which interest rates reset on a short-term basis with applicable market indices are assumed to approximate fair value either because of the short-term nature or because of the interest rate adjustment feature. The fair value of commercial receivables in other markets was based on discounted future cash flows using applicable spreads to approximate current rates applicable to similar assets in those markets.
|
•
|
Nonmarketable equity investments
— Nonmarketable equity investments primarily include investments in FHLB and FRB stock and other equity investments carried at cost. As a member of the FHLB and FRB, Ally Bank is required to hold FHLB and FRB stock. The stock can be sold only to the FHLB and FRB upon termination of membership, or redeemed at the sole discretion of the FHLB and FRB, respectively. The fair value of FHLB and FRB stock is equal to the stock’s par value since the stock is bought, sold, and/or redeemed at par. FHLB and FRB stock is carried at cost, which generally represents the stock’s par value.
|
•
|
Deposit liabilities
— Deposit liabilities represent certain consumer and brokered bank deposits, mortgage escrow deposits, and dealer deposits. The fair value of deposits at Level 3 was estimated by discounting projected cash flows based on discount factors derived from the forward interest rate swap curve.
|
•
|
Short-term borrowings and Long-term debt
— Level 2 debt was valued using quoted market prices for similar instruments, when available, or other means for substantiation with observable inputs. Debt valued by discounting projected cash flows using internally derived inputs, such as prepayment speeds and discount rates, was classified as Level 3.
|
•
|
Financial instruments for which carrying value approximates fair value
— Certain financial instruments that are not carried at fair value on the consolidated balance sheet are carried at amounts that approximate fair value primarily due to their short term nature and limited credit risk. These instruments include restricted cash, cash collateral, accrued interest receivable, accrued interest payable, trade receivables and payables, and other short term receivables and payables.
|
|
|
Gross amounts of recognized assets/(liabilities)
|
|
Gross amounts offset in the Consolidated Balance Sheet
|
|
Net amounts of assets/(liabilities)
presented in the Consolidated Balance Sheet |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Gross amounts not offset in the Consolidated Balance Sheet
|
|
|
|||||||||||||||||
December 31, 2016
($ in millions)
|
|
|
|
|
Financial instruments
|
|
Collateral
(a) (b) (c) |
|
Net amount
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets in net asset positions
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
87
|
|
|
$
|
(4
|
)
|
|
$
|
(9
|
)
|
|
$
|
74
|
|
Derivative assets in net liability positions
|
|
8
|
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||
Total assets (d)
|
|
$
|
95
|
|
|
$
|
—
|
|
|
$
|
95
|
|
|
$
|
(12
|
)
|
|
$
|
(9
|
)
|
|
$
|
74
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities in net liability positions
|
|
$
|
(91
|
)
|
|
$
|
—
|
|
|
$
|
(91
|
)
|
|
$
|
8
|
|
|
$
|
13
|
|
|
$
|
(70
|
)
|
Derivative liabilities in net asset positions
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total derivative liabilities (d)
|
|
(95
|
)
|
|
—
|
|
|
(95
|
)
|
|
12
|
|
|
13
|
|
|
(70
|
)
|
||||||
Securities sold under agreements to repurchase (e)
|
|
(676
|
)
|
|
—
|
|
|
(676
|
)
|
|
—
|
|
|
676
|
|
|
—
|
|
||||||
Total liabilities
|
|
$
|
(771
|
)
|
|
$
|
—
|
|
|
$
|
(771
|
)
|
|
$
|
12
|
|
|
$
|
689
|
|
|
$
|
(70
|
)
|
(a)
|
Financial collateral received/pledged shown as a balance based on the sum of all net asset and liability positions between Ally and each individual derivative counterparty.
|
(b)
|
Amounts disclosed are limited to the financial asset or liability balance and, accordingly, exclude excess collateral received or pledged and noncash collateral received.
$6 million
of noncash derivative collateral pledged to us was excluded at
December 31, 2016
.
We do not record such collateral received on our
Consolidated Balance Sheet
unless certain conditions are met.
|
(c)
|
Certain agreements grant us the right to sell or pledge the noncash assets we receive as collateral. Noncash collateral pledged to us where the agreement grants us the right to sell or pledge the underlying assets had a fair value of
$6 million
at
December 31, 2016
. We have not sold or pledged any of the noncash collateral received under these agreements as of
December 31, 2016
.
|
(d)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(e)
|
For additional information on securities sold under agreements to repurchase, refer to
Note 16
to the
Consolidated Financial Statements
.
|
|
|
Gross amounts of recognized assets/(liabilities)
|
|
Gross amounts offset in the Consolidated Balance Sheet
|
|
Net amounts of assets/(liabilities)
presented in the Consolidated Balance Sheet |
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Gross amounts not offset in the Consolidated Balance Sheet
|
|
|
|||||||||||||||||
December 31, 2015 (
$ in millions
)
|
|
|
|
|
Financial instruments
|
|
Collateral
(a) (b) (c) |
|
Net amount
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets in net asset positions
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
224
|
|
|
$
|
(69
|
)
|
|
$
|
(67
|
)
|
|
$
|
88
|
|
Derivative assets in net liability positions
|
|
9
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
||||||
Total assets (d)
|
|
$
|
233
|
|
|
$
|
—
|
|
|
$
|
233
|
|
|
$
|
(78
|
)
|
|
$
|
(67
|
)
|
|
$
|
88
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities in net liability positions
|
|
$
|
(68
|
)
|
|
$
|
—
|
|
|
$
|
(68
|
)
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
(57
|
)
|
Derivative liabilities in net asset positions
|
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
|
69
|
|
|
—
|
|
|
—
|
|
||||||
Derivative liabilities with no offsetting arrangements
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||
Total derivative liabilities (d)
|
|
(145
|
)
|
|
—
|
|
|
(145
|
)
|
|
78
|
|
|
2
|
|
|
(65
|
)
|
||||||
Securities sold under agreements to repurchase (e)
|
|
(648
|
)
|
|
—
|
|
|
(648
|
)
|
|
—
|
|
|
648
|
|
|
—
|
|
||||||
Total liabilities
|
|
$
|
(793
|
)
|
|
$
|
—
|
|
|
$
|
(793
|
)
|
|
$
|
78
|
|
|
$
|
650
|
|
|
$
|
(65
|
)
|
(a)
|
Financial collateral received/pledged shown as a balance based on the sum of all net asset and liability positions between Ally and each individual derivative counterparty.
|
(b)
|
Amounts disclosed are limited to the financial asset or liability balance and, accordingly, exclude excess collateral received or pledged and noncash collateral received.
$7 million
of noncash derivative collateral pledged to us was excluded at December 31, 2015. We do not record such collateral received on our Consolidated Balance Sheet unless certain conditions are met.
|
(c)
|
Certain agreements grant us the right to sell or pledge the noncash assets we receive as collateral. Noncash collateral pledged to us where the agreement grants us the right to sell or pledge the underlying assets had a fair value of
$7 million
at December 31, 2015. We have not sold or pledged any of the noncash collateral received under these agreements as of December 31, 2015.
|
(d)
|
For additional information on derivative instruments and hedging activities, refer to
Note 22
to the
Consolidated Financial Statements
.
|
(e)
|
For additional information on securities sold under agreements to repurchase, refer to
Note 16
to the
Consolidated Financial Statements
.
|
Year ended December 31,
($ in millions)
|
|
Automotive Finance operations
|
|
Insurance operations
|
|
Mortgage Finance operations
|
|
Corporate Finance operations
|
|
Corporate and Other
|
|
Consolidated (a)
|
||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income (loss)
|
|
$
|
3,665
|
|
|
$
|
61
|
|
|
$
|
97
|
|
|
$
|
121
|
|
|
$
|
(37
|
)
|
|
$
|
3,907
|
|
Other revenue
|
|
306
|
|
|
1,036
|
|
|
—
|
|
|
26
|
|
|
162
|
|
|
1,530
|
|
||||||
Total net revenue
|
|
3,971
|
|
|
1,097
|
|
|
97
|
|
|
147
|
|
|
125
|
|
|
5,437
|
|
||||||
Provision for loan losses
|
|
924
|
|
|
—
|
|
|
(4
|
)
|
|
10
|
|
|
(13
|
)
|
|
917
|
|
||||||
Total noninterest expense
|
|
1,667
|
|
|
940
|
|
|
67
|
|
|
66
|
|
|
199
|
|
|
2,939
|
|
||||||
Income (loss) from continuing operations before income tax expense
|
|
$
|
1,380
|
|
|
$
|
157
|
|
|
$
|
34
|
|
|
$
|
71
|
|
|
$
|
(61
|
)
|
|
$
|
1,581
|
|
Total assets
|
|
$
|
116,347
|
|
|
$
|
7,172
|
|
|
$
|
8,307
|
|
|
$
|
3,183
|
|
|
$
|
28,719
|
|
|
$
|
163,728
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income
|
|
$
|
3,429
|
|
|
$
|
57
|
|
|
$
|
57
|
|
|
$
|
89
|
|
|
$
|
87
|
|
|
$
|
3,719
|
|
Other revenue (loss)
|
|
235
|
|
|
1,033
|
|
|
—
|
|
|
25
|
|
|
(151
|
)
|
|
1,142
|
|
||||||
Total net revenue (loss)
|
|
3,664
|
|
|
1,090
|
|
|
57
|
|
|
114
|
|
|
(64
|
)
|
|
4,861
|
|
||||||
Provision for loan losses
|
|
696
|
|
|
—
|
|
|
7
|
|
|
9
|
|
|
(5
|
)
|
|
707
|
|
||||||
Total noninterest expense
|
|
1,633
|
|
|
879
|
|
|
39
|
|
|
55
|
|
|
155
|
|
|
2,761
|
|
||||||
Income (loss) from continuing operations before income tax expense
|
|
$
|
1,335
|
|
|
$
|
211
|
|
|
$
|
11
|
|
|
$
|
50
|
|
|
$
|
(214
|
)
|
|
$
|
1,393
|
|
Total assets
|
|
$
|
115,636
|
|
|
$
|
7,053
|
|
|
$
|
6,461
|
|
|
$
|
2,677
|
|
|
$
|
26,754
|
|
|
$
|
158,581
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income (loss)
|
|
$
|
3,321
|
|
|
$
|
56
|
|
|
$
|
36
|
|
|
$
|
59
|
|
|
$
|
(97
|
)
|
|
$
|
3,375
|
|
Other revenue (loss)
|
|
264
|
|
|
1,129
|
|
|
—
|
|
|
32
|
|
|
(149
|
)
|
|
1,276
|
|
||||||
Total net revenue (loss)
|
|
3,585
|
|
|
1,185
|
|
|
36
|
|
|
91
|
|
|
(246
|
)
|
|
4,651
|
|
||||||
Provision for loan losses
|
|
542
|
|
|
—
|
|
|
3
|
|
|
(16
|
)
|
|
(72
|
)
|
|
457
|
|
||||||
Total noninterest expense
|
|
1,614
|
|
|
988
|
|
|
21
|
|
|
43
|
|
|
282
|
|
|
2,948
|
|
||||||
Income (loss) from continuing operations before income tax expense
|
|
$
|
1,429
|
|
|
$
|
197
|
|
|
$
|
12
|
|
|
$
|
64
|
|
|
$
|
(456
|
)
|
|
$
|
1,246
|
|
Total assets
|
|
$
|
113,188
|
|
|
$
|
7,190
|
|
|
$
|
3,542
|
|
|
$
|
1,870
|
|
|
$
|
25,841
|
|
|
$
|
151,631
|
|
(a)
|
Net financing revenue and other interest income after the provision for loan losses totaled
$3.0 billion
, for the
years ended
December 31, 2016
, and
2015
, and
$2.9 billion
for the
year ended
December 31, 2014
.
|
Year ended December 31,
($ in millions)
|
|
Total net revenue
(a) |
|
Income from continuing operations before income tax expense
|
|
Net income (loss) (b)
|
|
Identifiable assets (c)
|
|
Long-lived assets (d)
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Canada
|
|
$
|
90
|
|
|
$
|
44
|
|
|
$
|
32
|
|
|
$
|
499
|
|
|
$
|
—
|
|
Europe
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
276
|
|
|
—
|
|
|||||
Latin America
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
23
|
|
|
—
|
|
|||||
Asia-Pacific
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|||||
Total foreign (e)
|
|
90
|
|
|
44
|
|
|
30
|
|
|
800
|
|
|
—
|
|
|||||
Total domestic (f)
|
|
5,347
|
|
|
1,537
|
|
|
1,037
|
|
|
162,688
|
|
|
11,846
|
|
|||||
Total
|
|
$
|
5,437
|
|
|
$
|
1,581
|
|
|
$
|
1,067
|
|
|
$
|
163,488
|
|
|
$
|
11,846
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Canada
|
|
$
|
98
|
|
|
$
|
47
|
|
|
$
|
35
|
|
|
514
|
|
|
—
|
|
||
Europe
|
|
1
|
|
|
4
|
|
|
27
|
|
|
325
|
|
|
—
|
|
|||||
Latin America
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
28
|
|
|
—
|
|
|||||
Asia-Pacific
|
|
—
|
|
|
—
|
|
|
452
|
|
|
2
|
|
|
—
|
|
|||||
Total foreign (e)
|
|
99
|
|
|
51
|
|
|
512
|
|
|
869
|
|
|
—
|
|
|||||
Total domestic (f)
|
|
4,762
|
|
|
1,342
|
|
|
777
|
|
|
157,685
|
|
|
16,506
|
|
|||||
Total
|
|
$
|
4,861
|
|
|
$
|
1,393
|
|
|
$
|
1,289
|
|
|
$
|
158,554
|
|
|
$
|
16,506
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Canada
|
|
$
|
124
|
|
|
$
|
54
|
|
|
$
|
68
|
|
|
$
|
590
|
|
|
$
|
—
|
|
Europe
|
|
2
|
|
|
—
|
|
|
4
|
|
|
1,636
|
|
|
—
|
|
|||||
Latin America
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
29
|
|
|
—
|
|
|||||
Asia-Pacific
|
|
—
|
|
|
—
|
|
|
122
|
|
|
636
|
|
|
—
|
|
|||||
Total foreign (e)
|
|
126
|
|
|
54
|
|
|
186
|
|
|
2,891
|
|
|
—
|
|
|||||
Total domestic (f)
|
|
4,525
|
|
|
1,192
|
|
|
964
|
|
|
148,713
|
|
|
19,735
|
|
|||||
Total
|
|
$
|
4,651
|
|
|
$
|
1,246
|
|
|
$
|
1,150
|
|
|
$
|
151,604
|
|
|
$
|
19,735
|
|
(a)
|
Revenue consists of net financing revenue and other interest income and total other revenue as presented in our
Consolidated Financial Statements
.
|
(b)
|
Gain (loss) realized on sale of discontinued operations are allocated to the geographic area in which the business operated.
|
(c)
|
Identifiable assets consist of total assets excluding goodwill.
|
(d)
|
Long-lived assets consist of investments in operating leases, net, and net property and equipment.
|
(e)
|
Our foreign operations as of
December 31, 2016
, 2015, and 2014, consist of our ongoing Insurance operations in Canada and our remaining international entities in wind-down.
|
(f)
|
Amounts include eliminations between our domestic and foreign operations.
|
Year ended December 31, 2016
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Financing (loss) revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on finance receivables and loans
|
|
$
|
(104
|
)
|
|
$
|
—
|
|
|
$
|
5,266
|
|
|
$
|
—
|
|
|
$
|
5,162
|
|
Interest and fees on finance receivables and loans — intercompany
|
|
11
|
|
|
—
|
|
|
8
|
|
|
(19
|
)
|
|
—
|
|
|||||
Interest and dividends on investment securities and other earning assets
|
|
—
|
|
|
—
|
|
|
421
|
|
|
(3
|
)
|
|
418
|
|
|||||
Interest on cash and cash equivalents
|
|
5
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
14
|
|
|||||
Interest-bearing cash — intercompany
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
—
|
|
|||||
Operating leases
|
|
17
|
|
|
—
|
|
|
2,694
|
|
|
—
|
|
|
2,711
|
|
|||||
Total financing (loss) revenue and other interest income
|
|
(71
|
)
|
|
—
|
|
|
8,407
|
|
|
(31
|
)
|
|
8,305
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
|
8
|
|
|
—
|
|
|
822
|
|
|
—
|
|
|
830
|
|
|||||
Interest on short-term borrowings
|
|
40
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
57
|
|
|||||
Interest on long-term debt
|
|
1,161
|
|
|
—
|
|
|
581
|
|
|
—
|
|
|
1,742
|
|
|||||
Interest on intercompany debt
|
|
20
|
|
|
—
|
|
|
11
|
|
|
(31
|
)
|
|
—
|
|
|||||
Total interest expense
|
|
1,229
|
|
|
—
|
|
|
1,431
|
|
|
(31
|
)
|
|
2,629
|
|
|||||
Net depreciation expense on operating lease assets
|
|
14
|
|
|
—
|
|
|
1,755
|
|
|
—
|
|
|
1,769
|
|
|||||
Net financing revenue
|
|
(1,314
|
)
|
|
—
|
|
|
5,221
|
|
|
—
|
|
|
3,907
|
|
|||||
Cash dividends from subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonbank subsidiaries
|
|
965
|
|
|
—
|
|
|
—
|
|
|
(965
|
)
|
|
—
|
|
|||||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance premiums and service revenue earned
|
|
—
|
|
|
—
|
|
|
945
|
|
|
—
|
|
|
945
|
|
|||||
(Loss) gain on mortgage and automotive loans, net
|
|
(11
|
)
|
|
—
|
|
|
22
|
|
|
—
|
|
|
11
|
|
|||||
Loss on extinguishment of debt
|
|
(3
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(5
|
)
|
|||||
Other gain on investments, net
|
|
—
|
|
|
—
|
|
|
176
|
|
|
9
|
|
|
185
|
|
|||||
Other income, net of losses
|
|
1,253
|
|
|
—
|
|
|
937
|
|
|
(1,796
|
)
|
|
394
|
|
|||||
Total other revenue
|
|
1,239
|
|
|
—
|
|
|
2,078
|
|
|
(1,787
|
)
|
|
1,530
|
|
|||||
Total net revenue
|
|
890
|
|
|
—
|
|
|
7,299
|
|
|
(2,752
|
)
|
|
5,437
|
|
|||||
Provision for loan losses
|
|
408
|
|
|
—
|
|
|
509
|
|
|
—
|
|
|
917
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits expense
|
|
573
|
|
|
—
|
|
|
419
|
|
|
—
|
|
|
992
|
|
|||||
Insurance losses and loss adjustment expenses
|
|
—
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
342
|
|
|||||
Other operating expenses
|
|
1,261
|
|
|
—
|
|
|
2,130
|
|
|
(1,786
|
)
|
|
1,605
|
|
|||||
Total noninterest expense
|
|
1,834
|
|
|
—
|
|
|
2,891
|
|
|
(1,786
|
)
|
|
2,939
|
|
|||||
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income (loss) of subsidiaries
|
|
(1,352
|
)
|
|
—
|
|
|
3,899
|
|
|
(966
|
)
|
|
1,581
|
|
|||||
Income tax (benefit) expense from continuing operations
|
|
(279
|
)
|
|
(82
|
)
|
|
831
|
|
|
—
|
|
|
470
|
|
|||||
Net (loss) income from continuing operations
|
|
(1,073
|
)
|
|
82
|
|
|
3,068
|
|
|
(966
|
)
|
|
1,111
|
|
|||||
Loss from discontinued operations, net of tax
|
|
(39
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(44
|
)
|
|||||
Undistributed income (loss) of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
1,273
|
|
|
1,273
|
|
|
—
|
|
|
(2,546
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
906
|
|
|
(2
|
)
|
|
—
|
|
|
(904
|
)
|
|
—
|
|
|||||
Net income
|
|
1,067
|
|
|
1,353
|
|
|
3,063
|
|
|
(4,416
|
)
|
|
1,067
|
|
|||||
Other comprehensive loss, net of tax
|
|
(110
|
)
|
|
(63
|
)
|
|
(106
|
)
|
|
169
|
|
|
(110
|
)
|
|||||
Comprehensive income
|
|
$
|
957
|
|
|
$
|
1,290
|
|
|
$
|
2,957
|
|
|
$
|
(4,247
|
)
|
|
$
|
957
|
|
Year ended December 31, 2015
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Financing (loss) revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on finance receivables and loans
|
|
$
|
(83
|
)
|
|
$
|
—
|
|
|
$
|
4,653
|
|
|
$
|
—
|
|
|
$
|
4,570
|
|
Interest and fees on finance receivables and loans — intercompany
|
|
17
|
|
|
—
|
|
|
24
|
|
|
(41
|
)
|
|
—
|
|
|||||
Interest on loans held-for-sale
|
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
|||||
Interest and dividends on investment securities and other earning assets
|
|
—
|
|
|
—
|
|
|
381
|
|
|
—
|
|
|
381
|
|
|||||
Interest on cash and cash equivalents
|
|
1
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
8
|
|
|||||
Interest-bearing cash — intercompany
|
|
—
|
|
|
—
|
|
|
8
|
|
|
(8
|
)
|
|
—
|
|
|||||
Operating leases
|
|
9
|
|
|
—
|
|
|
3,389
|
|
|
—
|
|
|
3,398
|
|
|||||
Total financing (loss) revenue and other interest income
|
|
(56
|
)
|
|
—
|
|
|
8,502
|
|
|
(49
|
)
|
|
8,397
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
|
10
|
|
|
—
|
|
|
708
|
|
|
—
|
|
|
718
|
|
|||||
Interest on short-term borrowings
|
|
40
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
49
|
|
|||||
Interest on long-term debt
|
|
1,121
|
|
|
—
|
|
|
541
|
|
|
—
|
|
|
1,662
|
|
|||||
Interest on intercompany debt
|
|
32
|
|
|
—
|
|
|
17
|
|
|
(49
|
)
|
|
—
|
|
|||||
Total interest expense
|
|
1,203
|
|
|
—
|
|
|
1,275
|
|
|
(49
|
)
|
|
2,429
|
|
|||||
Net depreciation expense on operating lease assets
|
|
7
|
|
|
—
|
|
|
2,242
|
|
|
—
|
|
|
2,249
|
|
|||||
Net financing revenue
|
|
(1,266
|
)
|
|
—
|
|
|
4,985
|
|
|
—
|
|
|
3,719
|
|
|||||
Cash dividends from subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiaries
|
|
525
|
|
|
525
|
|
|
—
|
|
|
(1,050
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
1,123
|
|
|
—
|
|
|
—
|
|
|
(1,123
|
)
|
|
—
|
|
|||||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance premiums and service revenue earned
|
|
—
|
|
|
—
|
|
|
940
|
|
|
—
|
|
|
940
|
|
|||||
(Loss) gain on mortgage and automotive loans, net
|
|
(9
|
)
|
|
—
|
|
|
54
|
|
|
—
|
|
|
45
|
|
|||||
Loss on extinguishment of debt
|
|
(355
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(357
|
)
|
|||||
Other gain on investments, net
|
|
—
|
|
|
—
|
|
|
155
|
|
|
—
|
|
|
155
|
|
|||||
Other income, net of losses
|
|
1,373
|
|
|
—
|
|
|
1,373
|
|
|
(2,387
|
)
|
|
359
|
|
|||||
Total other revenue
|
|
1,009
|
|
|
—
|
|
|
2,520
|
|
|
(2,387
|
)
|
|
1,142
|
|
|||||
Total net revenue
|
|
1,391
|
|
|
525
|
|
|
7,505
|
|
|
(4,560
|
)
|
|
4,861
|
|
|||||
Provision for loan losses
|
|
157
|
|
|
—
|
|
|
550
|
|
|
—
|
|
|
707
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits expense
|
|
571
|
|
|
—
|
|
|
842
|
|
|
(450
|
)
|
|
963
|
|
|||||
Insurance losses and loss adjustment expenses
|
|
—
|
|
|
—
|
|
|
293
|
|
|
—
|
|
|
293
|
|
|||||
Other operating expenses
|
|
1,247
|
|
|
—
|
|
|
2,195
|
|
|
(1,937
|
)
|
|
1,505
|
|
|||||
Total noninterest expense
|
|
1,818
|
|
|
—
|
|
|
3,330
|
|
|
(2,387
|
)
|
|
2,761
|
|
|||||
(Loss) income from continuing operations before income tax (benefit) expense and undistributed income (loss) of subsidiaries
|
|
(584
|
)
|
|
525
|
|
|
3,625
|
|
|
(2,173
|
)
|
|
1,393
|
|
|||||
Income tax (benefit) expense from continuing operations
|
|
(267
|
)
|
|
—
|
|
|
763
|
|
|
—
|
|
|
496
|
|
|||||
Net (loss) income from continuing operations
|
|
(317
|
)
|
|
525
|
|
|
2,862
|
|
|
(2,173
|
)
|
|
897
|
|
|||||
Income from discontinued operations, net of tax
|
|
356
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
392
|
|
|||||
Undistributed income (loss) of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
581
|
|
|
581
|
|
|
—
|
|
|
(1,162
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
669
|
|
|
(1
|
)
|
|
—
|
|
|
(668
|
)
|
|
—
|
|
|||||
Net income
|
|
1,289
|
|
|
1,105
|
|
|
2,898
|
|
|
(4,003
|
)
|
|
1,289
|
|
|||||
Other comprehensive loss, net of tax
|
|
(165
|
)
|
|
(43
|
)
|
|
(172
|
)
|
|
215
|
|
|
(165
|
)
|
|||||
Comprehensive income
|
|
$
|
1,124
|
|
|
$
|
1,062
|
|
|
$
|
2,726
|
|
|
$
|
(3,788
|
)
|
|
$
|
1,124
|
|
Year ended December 31, 2014
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on finance receivables and loans
|
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
4,471
|
|
|
$
|
—
|
|
|
$
|
4,457
|
|
Interest and fees on finance receivables and loans — intercompany
|
|
37
|
|
|
—
|
|
|
82
|
|
|
(119
|
)
|
|
—
|
|
|||||
Interest on loans held-for-sale
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Interest and dividends on investment securities and other earning assets
|
|
—
|
|
|
—
|
|
|
367
|
|
|
—
|
|
|
367
|
|
|||||
Interest on cash and cash equivalents
|
|
1
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
8
|
|
|||||
Interest-bearing cash — intercompany
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(6
|
)
|
|
—
|
|
|||||
Operating leases
|
|
269
|
|
|
—
|
|
|
3,289
|
|
|
—
|
|
|
3,558
|
|
|||||
Total financing revenue and other interest income
|
|
293
|
|
|
—
|
|
|
8,223
|
|
|
(125
|
)
|
|
8,391
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
|
15
|
|
|
—
|
|
|
649
|
|
|
—
|
|
|
664
|
|
|||||
Interest on short-term borrowings
|
|
43
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
52
|
|
|||||
Interest on long-term debt
|
|
1,492
|
|
|
—
|
|
|
575
|
|
|
—
|
|
|
2,067
|
|
|||||
Interest on intercompany debt
|
|
88
|
|
|
—
|
|
|
37
|
|
|
(125
|
)
|
|
—
|
|
|||||
Total interest expense
|
|
1,638
|
|
|
—
|
|
|
1,270
|
|
|
(125
|
)
|
|
2,783
|
|
|||||
Net depreciation expense on operating lease assets
|
|
161
|
|
|
—
|
|
|
2,072
|
|
|
—
|
|
|
2,233
|
|
|||||
Net financing revenue
|
|
(1,506
|
)
|
|
—
|
|
|
4,881
|
|
|
—
|
|
|
3,375
|
|
|||||
Cash dividends from subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiaries
|
|
1,800
|
|
|
1,800
|
|
|
—
|
|
|
(3,600
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
651
|
|
|
—
|
|
|
—
|
|
|
(651
|
)
|
|
—
|
|
|||||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance premiums and service revenue earned
|
|
—
|
|
|
—
|
|
|
979
|
|
|
—
|
|
|
979
|
|
|||||
(Loss) gain on mortgage and automotive loans, net
|
|
(5
|
)
|
|
—
|
|
|
12
|
|
|
—
|
|
|
7
|
|
|||||
Loss on extinguishment of debt
|
|
(202
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(202
|
)
|
|||||
Other gain on investments, net
|
|
—
|
|
|
—
|
|
|
181
|
|
|
—
|
|
|
181
|
|
|||||
Other income, net of losses
|
|
1,279
|
|
|
—
|
|
|
1,299
|
|
|
(2,267
|
)
|
|
311
|
|
|||||
Total other revenue
|
|
1,072
|
|
|
—
|
|
|
2,471
|
|
|
(2,267
|
)
|
|
1,276
|
|
|||||
Total net revenue
|
|
2,017
|
|
|
1,800
|
|
|
7,352
|
|
|
(6,518
|
)
|
|
4,651
|
|
|||||
Provision for loan losses
|
|
250
|
|
|
—
|
|
|
207
|
|
|
—
|
|
|
457
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits expense
|
|
586
|
|
|
—
|
|
|
793
|
|
|
(432
|
)
|
|
947
|
|
|||||
Insurance losses and loss adjustment expenses
|
|
—
|
|
|
—
|
|
|
410
|
|
|
—
|
|
|
410
|
|
|||||
Other operating expenses
|
|
1,267
|
|
|
—
|
|
|
2,159
|
|
|
(1,835
|
)
|
|
1,591
|
|
|||||
Total noninterest expense
|
|
1,853
|
|
|
—
|
|
|
3,362
|
|
|
(2,267
|
)
|
|
2,948
|
|
|||||
(Loss) income from continuing operations before income tax (benefit) expense and undistributed (loss) income of subsidiaries
|
|
(86
|
)
|
|
1,800
|
|
|
3,783
|
|
|
(4,251
|
)
|
|
1,246
|
|
|||||
Income tax (benefit) expense from continuing operations
|
|
(457
|
)
|
|
—
|
|
|
778
|
|
|
—
|
|
|
321
|
|
|||||
Net income from continuing operations
|
|
371
|
|
|
1,800
|
|
|
3,005
|
|
|
(4,251
|
)
|
|
925
|
|
|||||
Income from discontinued operations, net of tax
|
|
193
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
225
|
|
|||||
Undistributed (loss) income of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
(680
|
)
|
|
(680
|
)
|
|
—
|
|
|
1,360
|
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
1,266
|
|
|
(1
|
)
|
|
—
|
|
|
(1,265
|
)
|
|
—
|
|
|||||
Net income
|
|
1,150
|
|
|
1,119
|
|
|
3,037
|
|
|
(4,156
|
)
|
|
1,150
|
|
|||||
Other comprehensive income, net of tax
|
|
210
|
|
|
188
|
|
|
212
|
|
|
(400
|
)
|
|
210
|
|
|||||
Comprehensive income
|
|
$
|
1,360
|
|
|
$
|
1,307
|
|
|
$
|
3,249
|
|
|
$
|
(4,556
|
)
|
|
$
|
1,360
|
|
December 31, 2016
($ in millions)
|
|
Parent (a)
|
|
Guarantors
|
|
Nonguarantors (a)
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
720
|
|
|
$
|
—
|
|
|
$
|
827
|
|
|
$
|
—
|
|
|
$
|
1,547
|
|
Interest-bearing
|
|
100
|
|
|
—
|
|
|
4,287
|
|
|
—
|
|
|
4,387
|
|
|||||
Interest-bearing — intercompany
|
|
—
|
|
|
—
|
|
|
401
|
|
|
(401
|
)
|
|
—
|
|
|||||
Total cash and cash equivalents
|
|
820
|
|
|
—
|
|
|
5,515
|
|
|
(401
|
)
|
|
5,934
|
|
|||||
Trading securities
|
|
—
|
|
|
—
|
|
|
82
|
|
|
(82
|
)
|
|
—
|
|
|||||
Available-for-sale securities
|
|
—
|
|
|
—
|
|
|
19,253
|
|
|
(327
|
)
|
|
18,926
|
|
|||||
Held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
839
|
|
|
—
|
|
|
839
|
|
|||||
Finance receivables and loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance receivables and loans, net
|
|
4,705
|
|
|
—
|
|
|
114,239
|
|
|
—
|
|
|
118,944
|
|
|||||
Intercompany loans to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
1,125
|
|
|
—
|
|
|
—
|
|
|
(1,125
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
1,779
|
|
|
—
|
|
|
626
|
|
|
(2,405
|
)
|
|
—
|
|
|||||
Allowance for loan losses
|
|
(115
|
)
|
|
—
|
|
|
(1,029
|
)
|
|
—
|
|
|
(1,144
|
)
|
|||||
Total finance receivables and loans, net
|
|
7,494
|
|
|
—
|
|
|
113,836
|
|
|
(3,530
|
)
|
|
117,800
|
|
|||||
Investment in operating leases, net
|
|
42
|
|
|
—
|
|
|
11,428
|
|
|
—
|
|
|
11,470
|
|
|||||
Intercompany receivables from
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
299
|
|
|
—
|
|
|
—
|
|
|
(299
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
107
|
|
|
—
|
|
|
67
|
|
|
(174
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
17,727
|
|
|
17,727
|
|
|
—
|
|
|
(35,454
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
10,318
|
|
|
—
|
|
|
—
|
|
|
(10,318
|
)
|
|
—
|
|
|||||
Premiums receivable and other insurance assets
|
|
—
|
|
|
—
|
|
|
1,936
|
|
|
(31
|
)
|
|
1,905
|
|
|||||
Other assets
|
|
4,347
|
|
|
—
|
|
|
5,085
|
|
|
(2,578
|
)
|
|
6,854
|
|
|||||
Total assets
|
|
$
|
41,154
|
|
|
$
|
17,727
|
|
|
$
|
158,041
|
|
|
$
|
(53,194
|
)
|
|
$
|
163,728
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Interest-bearing
|
|
167
|
|
|
—
|
|
|
78,771
|
|
|
—
|
|
|
78,938
|
|
|||||
Total deposit liabilities
|
|
167
|
|
|
—
|
|
|
78,855
|
|
|
—
|
|
|
79,022
|
|
|||||
Short-term borrowings
|
|
3,622
|
|
|
—
|
|
|
9,051
|
|
|
—
|
|
|
12,673
|
|
|||||
Long-term debt
|
|
21,798
|
|
|
—
|
|
|
32,330
|
|
|
—
|
|
|
54,128
|
|
|||||
Intercompany debt to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
330
|
|
|
—
|
|
|
—
|
|
|
(330
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
1,027
|
|
|
—
|
|
|
2,903
|
|
|
(3,930
|
)
|
|
—
|
|
|||||
Intercompany payables to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonbank subsidiaries
|
|
153
|
|
|
—
|
|
|
351
|
|
|
(504
|
)
|
|
—
|
|
|||||
Interest payable
|
|
253
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
351
|
|
|||||
Unearned insurance premiums and service revenue
|
|
—
|
|
|
—
|
|
|
2,500
|
|
|
—
|
|
|
2,500
|
|
|||||
Accrued expenses and other liabilities
|
|
487
|
|
|
—
|
|
|
3,911
|
|
|
(2,661
|
)
|
|
1,737
|
|
|||||
Total liabilities
|
|
27,837
|
|
|
—
|
|
|
129,999
|
|
|
(7,425
|
)
|
|
150,411
|
|
|||||
Total equity
|
|
13,317
|
|
|
17,727
|
|
|
28,042
|
|
|
(45,769
|
)
|
|
13,317
|
|
|||||
Total liabilities and equity
|
|
$
|
41,154
|
|
|
$
|
17,727
|
|
|
$
|
158,041
|
|
|
$
|
(53,194
|
)
|
|
$
|
163,728
|
|
(a)
|
Amounts presented are based upon the legal transfer of the underlying assets to VIEs in order to reflect legal ownership.
|
December 31, 2015
($ in millions)
|
|
Parent (a)
|
|
Guarantors
|
|
Nonguarantors (a)
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
1,234
|
|
|
$
|
—
|
|
|
$
|
914
|
|
|
$
|
—
|
|
|
$
|
2,148
|
|
Interest-bearing
|
|
401
|
|
|
—
|
|
|
3,831
|
|
|
—
|
|
|
4,232
|
|
|||||
Interest-bearing — intercompany
|
|
—
|
|
|
—
|
|
|
850
|
|
|
(850
|
)
|
|
—
|
|
|||||
Total cash and cash equivalents
|
|
1,635
|
|
|
—
|
|
|
5,595
|
|
|
(850
|
)
|
|
6,380
|
|
|||||
Available-for-sale securities
|
|
—
|
|
|
—
|
|
|
17,157
|
|
|
—
|
|
|
17,157
|
|
|||||
Loans held-for-sale, net
|
|
—
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
105
|
|
|||||
Finance receivables and loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance receivables and loans, net
|
|
2,636
|
|
|
—
|
|
|
108,964
|
|
|
—
|
|
|
111,600
|
|
|||||
Intercompany loans to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
600
|
|
|
—
|
|
|
—
|
|
|
(600
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
3,277
|
|
|
—
|
|
|
559
|
|
|
(3,836
|
)
|
|
—
|
|
|||||
Allowance for loan losses
|
|
(72
|
)
|
|
—
|
|
|
(982
|
)
|
|
—
|
|
|
(1,054
|
)
|
|||||
Total finance receivables and loans, net
|
|
6,441
|
|
|
—
|
|
|
108,541
|
|
|
(4,436
|
)
|
|
110,546
|
|
|||||
Investment in operating leases, net
|
|
81
|
|
|
—
|
|
|
16,190
|
|
|
—
|
|
|
16,271
|
|
|||||
Intercompany receivables from
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
186
|
|
|
—
|
|
|
—
|
|
|
(186
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
259
|
|
|
—
|
|
|
282
|
|
|
(541
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
16,496
|
|
|
16,496
|
|
|
—
|
|
|
(32,992
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
10,902
|
|
|
11
|
|
|
—
|
|
|
(10,913
|
)
|
|
—
|
|
|||||
Premiums receivable and other insurance assets
|
|
—
|
|
|
—
|
|
|
1,827
|
|
|
(26
|
)
|
|
1,801
|
|
|||||
Other assets
|
|
4,785
|
|
|
—
|
|
|
4,488
|
|
|
(2,952
|
)
|
|
6,321
|
|
|||||
Total assets
|
|
$
|
40,785
|
|
|
$
|
16,507
|
|
|
$
|
154,185
|
|
|
$
|
(52,896
|
)
|
|
$
|
158,581
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
89
|
|
|
$
|
—
|
|
|
$
|
89
|
|
Interest-bearing
|
|
229
|
|
|
—
|
|
|
66,160
|
|
|
—
|
|
|
66,389
|
|
|||||
Total deposit liabilities
|
|
229
|
|
|
—
|
|
|
66,249
|
|
|
—
|
|
|
66,478
|
|
|||||
Short-term borrowings
|
|
3,453
|
|
|
—
|
|
|
4,648
|
|
|
—
|
|
|
8,101
|
|
|||||
Long-term debt
|
|
21,048
|
|
|
—
|
|
|
45,186
|
|
|
—
|
|
|
66,234
|
|
|||||
Intercompany debt to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonbank subsidiaries
|
|
1,409
|
|
|
—
|
|
|
3,877
|
|
|
(5,286
|
)
|
|
—
|
|
|||||
Intercompany payables to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
142
|
|
|
—
|
|
|
—
|
|
|
(142
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
420
|
|
|
—
|
|
|
191
|
|
|
(611
|
)
|
|
—
|
|
|||||
Interest payable
|
|
258
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
350
|
|
|||||
Unearned insurance premiums and service revenue
|
|
—
|
|
|
—
|
|
|
2,434
|
|
|
—
|
|
|
2,434
|
|
|||||
Accrued expenses and other liabilities
|
|
387
|
|
|
82
|
|
|
4,028
|
|
|
(2,952
|
)
|
|
1,545
|
|
|||||
Total liabilities
|
|
27,346
|
|
|
82
|
|
|
126,705
|
|
|
(8,991
|
)
|
|
145,142
|
|
|||||
Total equity
|
|
13,439
|
|
|
16,425
|
|
|
27,480
|
|
|
(43,905
|
)
|
|
13,439
|
|
|||||
Total liabilities and equity
|
|
$
|
40,785
|
|
|
$
|
16,507
|
|
|
$
|
154,185
|
|
|
$
|
(52,896
|
)
|
|
$
|
158,581
|
|
(a)
|
Amounts presented are based upon the legal transfer of the underlying assets to VIEs in order to reflect legal ownership.
|
Year ended December 31, 2016
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
241
|
|
|
$
|
6
|
|
|
$
|
5,383
|
|
|
$
|
(1,063
|
)
|
|
$
|
4,567
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchases of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
(16,031
|
)
|
|
—
|
|
|
(16,031
|
)
|
|||||
Proceeds from sales of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
11,036
|
|
|
—
|
|
|
11,036
|
|
|||||
Proceeds from maturities and repayments of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
3,379
|
|
|
—
|
|
|
3,379
|
|
|||||
Purchases of held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
(841
|
)
|
|
—
|
|
|
(841
|
)
|
|||||
Purchases of loans held-for-investment
|
|
(4
|
)
|
|
—
|
|
|
(3,855
|
)
|
|
—
|
|
|
(3,859
|
)
|
|||||
Proceeds from sales of finance receivables and loans originated as held-for-investment
|
|
—
|
|
|
—
|
|
|
4,285
|
|
|
—
|
|
|
4,285
|
|
|||||
Originations and repayments of loans held-for-investment and other
|
|
2,013
|
|
|
—
|
|
|
(10,839
|
)
|
|
—
|
|
|
(8,826
|
)
|
|||||
Net change in loans — intercompany
|
|
877
|
|
|
—
|
|
|
(67
|
)
|
|
(810
|
)
|
|
—
|
|
|||||
Purchases of operating lease assets
|
|
—
|
|
|
—
|
|
|
(3,274
|
)
|
|
—
|
|
|
(3,274
|
)
|
|||||
Disposals of operating lease assets
|
|
25
|
|
|
—
|
|
|
6,279
|
|
|
—
|
|
|
6,304
|
|
|||||
Acquisitions, net of cash acquired
|
|
(309
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(309
|
)
|
|||||
Capital contributions to subsidiaries
|
|
(3,908
|
)
|
|
—
|
|
|
—
|
|
|
3,908
|
|
|
—
|
|
|||||
Returns of contributed capital
|
|
3,678
|
|
|
8
|
|
|
—
|
|
|
(3,686
|
)
|
|
—
|
|
|||||
Net change in restricted cash
|
|
(120
|
)
|
|
—
|
|
|
512
|
|
|
—
|
|
|
392
|
|
|||||
Net change in nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
(628
|
)
|
|
—
|
|
|
(628
|
)
|
|||||
Other, net
|
|
(206
|
)
|
|
—
|
|
|
(197
|
)
|
|
91
|
|
|
(312
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
2,046
|
|
|
8
|
|
|
(10,241
|
)
|
|
(497
|
)
|
|
(8,684
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in short-term borrowings — third party
|
|
169
|
|
|
—
|
|
|
4,395
|
|
|
—
|
|
|
4,564
|
|
|||||
Net (decrease) increase in deposits
|
|
(61
|
)
|
|
—
|
|
|
12,569
|
|
|
—
|
|
|
12,508
|
|
|||||
Proceeds from issuance of long-term debt — third party
|
|
979
|
|
|
—
|
|
|
13,176
|
|
|
—
|
|
|
14,155
|
|
|||||
Repayments of long-term debt — third party
|
|
(2,662
|
)
|
|
—
|
|
|
(23,750
|
)
|
|
—
|
|
|
(26,412
|
)
|
|||||
Net change in debt — intercompany
|
|
(382
|
)
|
|
—
|
|
|
(877
|
)
|
|
1,259
|
|
|
—
|
|
|||||
Redemption of preferred stock
|
|
(696
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(696
|
)
|
|||||
Repurchase of common stock
|
|
(341
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(341
|
)
|
|||||
Dividends paid — third party
|
|
(108
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(108
|
)
|
|||||
Dividends paid and returns of contributed capital — intercompany
|
|
—
|
|
|
(14
|
)
|
|
(4,644
|
)
|
|
4,658
|
|
|
—
|
|
|||||
Capital contributions from parent
|
|
—
|
|
|
—
|
|
|
3,908
|
|
|
(3,908
|
)
|
|
—
|
|
|||||
Net cash (used) in provided by financing activities
|
|
(3,102
|
)
|
|
(14
|
)
|
|
4,777
|
|
|
2,009
|
|
|
3,670
|
|
|||||
Effect of exchange-rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net decrease in cash and cash equivalents
|
|
(815
|
)
|
|
—
|
|
|
(80
|
)
|
|
449
|
|
|
(446
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
|
1,635
|
|
|
—
|
|
|
5,595
|
|
|
(850
|
)
|
|
6,380
|
|
|||||
Cash and cash equivalents at end of year
|
|
$
|
820
|
|
|
$
|
—
|
|
|
$
|
5,515
|
|
|
$
|
(401
|
)
|
|
$
|
5,934
|
|
Year ended December 31, 2015
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
370
|
|
|
$
|
525
|
|
|
$
|
6,390
|
|
|
$
|
(2,174
|
)
|
|
$
|
5,111
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
(12,250
|
)
|
|
—
|
|
|
(12,250
|
)
|
|||||
Proceeds from sales of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
6,874
|
|
|
—
|
|
|
6,874
|
|
|||||
Proceeds from maturities and repayments of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
4,255
|
|
|
—
|
|
|
4,255
|
|
|||||
Purchases of loans held-for-investment
|
|
(169
|
)
|
|
—
|
|
|
(4,332
|
)
|
|
—
|
|
|
(4,501
|
)
|
|||||
Proceeds from sales of finance receivables and loans originated as held-for-investment
|
|
—
|
|
|
—
|
|
|
3,197
|
|
|
—
|
|
|
3,197
|
|
|||||
Originations and repayments of loans held-for-investment and other
|
|
1,954
|
|
|
—
|
|
|
(11,298
|
)
|
|
—
|
|
|
(9,344
|
)
|
|||||
Net change in loans — intercompany
|
|
240
|
|
|
—
|
|
|
1,211
|
|
|
(1,451
|
)
|
|
—
|
|
|||||
Purchases of operating lease assets
|
|
(94
|
)
|
|
—
|
|
|
(4,591
|
)
|
|
—
|
|
|
(4,685
|
)
|
|||||
Disposals of operating lease assets
|
|
7
|
|
|
—
|
|
|
5,539
|
|
|
—
|
|
|
5,546
|
|
|||||
Capital contributions to subsidiaries
|
|
(796
|
)
|
|
(1
|
)
|
|
—
|
|
|
797
|
|
|
—
|
|
|||||
Returns of contributed capital
|
|
1,444
|
|
|
—
|
|
|
—
|
|
|
(1,444
|
)
|
|
—
|
|
|||||
Proceeds from sale of business units, net
|
|
1,049
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,049
|
|
|||||
Net change in restricted cash
|
|
(7
|
)
|
|
—
|
|
|
271
|
|
|
—
|
|
|
264
|
|
|||||
Net change in nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
(147
|
)
|
|
—
|
|
|
(147
|
)
|
|||||
Other, net
|
|
(47
|
)
|
|
—
|
|
|
42
|
|
|
—
|
|
|
(5
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
3,581
|
|
|
(1
|
)
|
|
(11,229
|
)
|
|
(2,098
|
)
|
|
(9,747
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in short-term borrowings — third party
|
|
115
|
|
|
—
|
|
|
913
|
|
|
—
|
|
|
1,028
|
|
|||||
Net (decrease) increase in deposits
|
|
(91
|
)
|
|
—
|
|
|
8,338
|
|
|
—
|
|
|
8,247
|
|
|||||
Proceeds from issuance of long-term debt — third party
|
|
5,428
|
|
|
—
|
|
|
25,237
|
|
|
—
|
|
|
30,665
|
|
|||||
Repayments of long-term debt — third party
|
|
(5,931
|
)
|
|
—
|
|
|
(25,419
|
)
|
|
—
|
|
|
(31,350
|
)
|
|||||
Net change in debt — intercompany
|
|
(977
|
)
|
|
—
|
|
|
(240
|
)
|
|
1,217
|
|
|
—
|
|
|||||
Repurchase and redemption of preferred stock
|
|
(559
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(559
|
)
|
|||||
Repurchase of common stock
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
|||||
Dividends paid — third party
|
|
(2,571
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,571
|
)
|
|||||
Dividends paid and returns of contributed capital — intercompany
|
|
—
|
|
|
(525
|
)
|
|
(3,092
|
)
|
|
3,617
|
|
|
—
|
|
|||||
Capital contributions from parent
|
|
—
|
|
|
1
|
|
|
796
|
|
|
(797
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
(4,602
|
)
|
|
(524
|
)
|
|
6,533
|
|
|
4,037
|
|
|
5,444
|
|
|||||
Effect of exchange-rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
|
(651
|
)
|
|
—
|
|
|
1,690
|
|
|
(235
|
)
|
|
804
|
|
|||||
Cash and cash equivalents at beginning of year
|
|
2,286
|
|
|
—
|
|
|
3,905
|
|
|
(615
|
)
|
|
5,576
|
|
|||||
Cash and cash equivalents at end of year
|
|
$
|
1,635
|
|
|
$
|
—
|
|
|
$
|
5,595
|
|
|
$
|
(850
|
)
|
|
$
|
6,380
|
|
Year ended December 31, 2014
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
330
|
|
|
$
|
1,789
|
|
|
$
|
5,533
|
|
|
$
|
(4,249
|
)
|
|
$
|
3,403
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
(5,417
|
)
|
|
—
|
|
|
(5,417
|
)
|
|||||
Proceeds from sales of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
4,277
|
|
|
(17
|
)
|
|
4,260
|
|
|||||
Proceeds from maturities and repayments of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
2,657
|
|
|
—
|
|
|
2,657
|
|
|||||
Purchases of loans held-for-investment
|
|
—
|
|
|
—
|
|
|
(894
|
)
|
|
17
|
|
|
(877
|
)
|
|||||
Proceeds from sales of finance receivables and loans originated as held-for-investment
|
|
—
|
|
|
—
|
|
|
2,592
|
|
|
—
|
|
|
2,592
|
|
|||||
Originations and repayments of loans held-for-investment and other
|
|
1,900
|
|
|
—
|
|
|
(6,047
|
)
|
|
—
|
|
|
(4,147
|
)
|
|||||
Net change in loans — intercompany
|
|
1,428
|
|
|
—
|
|
|
154
|
|
|
(1,582
|
)
|
|
—
|
|
|||||
Purchases of operating lease assets
|
|
(2,337
|
)
|
|
—
|
|
|
(7,547
|
)
|
|
—
|
|
|
(9,884
|
)
|
|||||
Disposals of operating lease assets
|
|
3,053
|
|
|
—
|
|
|
2,807
|
|
|
—
|
|
|
5,860
|
|
|||||
Capital contributions to subsidiaries
|
|
(1,179
|
)
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
—
|
|
|||||
Returns of contributed capital
|
|
1,422
|
|
|
—
|
|
|
—
|
|
|
(1,422
|
)
|
|
—
|
|
|||||
Proceeds from sale of business units, net
|
|
46
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
47
|
|
|||||
Net change in restricted cash
|
|
—
|
|
|
—
|
|
|
1,625
|
|
|
—
|
|
|
1,625
|
|
|||||
Net change in nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
66
|
|
|
—
|
|
|
66
|
|
|||||
Other, net
|
|
(29
|
)
|
|
—
|
|
|
35
|
|
|
—
|
|
|
6
|
|
|||||
Net cash provided by (used in) investing activities
|
|
4,304
|
|
|
—
|
|
|
(5,691
|
)
|
|
(1,825
|
)
|
|
(3,212
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in short-term borrowings — third party
|
|
113
|
|
|
—
|
|
|
(1,607
|
)
|
|
—
|
|
|
(1,494
|
)
|
|||||
Net (decrease) increase in deposits
|
|
(121
|
)
|
|
—
|
|
|
4,972
|
|
|
—
|
|
|
4,851
|
|
|||||
Proceeds from issuance of long-term debt — third party
|
|
3,132
|
|
|
—
|
|
|
24,060
|
|
|
—
|
|
|
27,192
|
|
|||||
Repayments of long-term debt — third party
|
|
(8,186
|
)
|
|
—
|
|
|
(22,240
|
)
|
|
—
|
|
|
(30,426
|
)
|
|||||
Net change in debt — intercompany
|
|
52
|
|
|
—
|
|
|
(1,428
|
)
|
|
1,376
|
|
|
—
|
|
|||||
Dividends paid — third party
|
|
(268
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(268
|
)
|
|||||
Dividends paid and returns of contributed capital — intercompany
|
|
—
|
|
|
(1,826
|
)
|
|
(3,846
|
)
|
|
5,672
|
|
|
—
|
|
|||||
Capital contributions from parent
|
|
—
|
|
|
—
|
|
|
1,179
|
|
|
(1,179
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
(5,278
|
)
|
|
(1,826
|
)
|
|
1,090
|
|
|
5,869
|
|
|
(145
|
)
|
|||||
Effect of exchange-rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||
Net (decrease) increase in cash and cash equivalents
|
|
(644
|
)
|
|
(37
|
)
|
|
931
|
|
|
(205
|
)
|
|
45
|
|
|||||
Cash and cash equivalents at beginning of year
|
|
2,930
|
|
|
37
|
|
|
2,974
|
|
|
(410
|
)
|
|
5,531
|
|
|||||
Cash and cash equivalents at end of year
|
|
$
|
2,286
|
|
|
$
|
—
|
|
|
$
|
3,905
|
|
|
$
|
(615
|
)
|
|
$
|
5,576
|
|
|
|
2016
|
|
2015
|
||||||||||||
December 31, (
$ in millions
)
|
|
Maximum liability
|
|
Carrying value of liability
|
|
Maximum liability
|
|
Carrying value of liability
|
||||||||
Standby letters of credit and other guarantees
|
|
$
|
175
|
|
|
$
|
8
|
|
|
$
|
208
|
|
|
$
|
13
|
|
December 31, (
$ in millions
)
|
|
2016
|
|
2015
|
||||
Commitments to provide capital to investees (a)
|
|
$
|
206
|
|
|
$
|
132
|
|
Construction-lending commitments (b)
|
|
164
|
|
|
197
|
|
||
Home equity lines of credit (c)
|
|
356
|
|
|
358
|
|
||
Unused revolving credit line commitments and other (d)
|
|
1,995
|
|
|
1,445
|
|
(a)
|
We are committed to contribute capital to certain investees. The fair value of these commitments is considered in the overall valuation of the underlying assets with which they are associated.
|
(b)
|
The fair value of these commitments is considered in the overall valuation of the related assets.
|
(c)
|
We are committed to fund the remaining unused balances on home equity lines of credit.
|
(d)
|
The unused portion of revolving lines of credit reset at prevailing market rates and, as such, approximate market value.
|
Year ended December 31, (
$ in millions
)
|
|
|
||
2017
|
|
$
|
94
|
|
2018 and 2019
|
|
13
|
|
|
2020 and thereafter
|
|
4
|
|
|
Total future payment obligations
|
|
$
|
111
|
|
(
$ in millions
)
|
|
First quarter
|
|
Second quarter
|
|
Third quarter
|
|
Fourth quarter
|
||||||||
2016
|
|
|
|
|
|
|
|
|
||||||||
Net financing revenue and other interest income
|
|
$
|
951
|
|
|
$
|
984
|
|
|
$
|
996
|
|
|
$
|
976
|
|
Other revenue
|
|
376
|
|
|
374
|
|
|
388
|
|
|
392
|
|
||||
Total net revenue
|
|
1,327
|
|
|
1,358
|
|
|
1,384
|
|
|
1,368
|
|
||||
Provision for loan losses
|
|
220
|
|
|
172
|
|
|
258
|
|
|
267
|
|
||||
Total noninterest expense
|
|
710
|
|
|
773
|
|
|
735
|
|
|
721
|
|
||||
Income from continuing operations before income tax expense
|
|
397
|
|
|
413
|
|
|
391
|
|
|
380
|
|
||||
Income tax expense from continuing operations
|
|
150
|
|
|
56
|
|
|
130
|
|
|
134
|
|
||||
Net income from continuing operations
|
|
247
|
|
|
357
|
|
|
261
|
|
|
246
|
|
||||
Income (loss) from discontinued operations, net of tax
|
|
3
|
|
|
3
|
|
|
(52
|
)
|
|
2
|
|
||||
Net income
|
|
$
|
250
|
|
|
$
|
360
|
|
|
$
|
209
|
|
|
$
|
248
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Net income from continuing operations
|
|
$
|
0.48
|
|
|
$
|
0.70
|
|
|
$
|
0.54
|
|
|
$
|
0.52
|
|
Net income
|
|
0.49
|
|
|
0.71
|
|
|
0.43
|
|
|
0.53
|
|
||||
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income from continuing operations
|
|
$
|
0.48
|
|
|
$
|
0.70
|
|
|
$
|
0.54
|
|
|
$
|
0.52
|
|
Net income
|
|
0.49
|
|
|
0.71
|
|
|
0.43
|
|
|
0.52
|
|
||||
Cash dividends per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
2015
|
|
|
|
|
|
|
|
|
||||||||
Net financing revenue and other interest income
|
|
$
|
850
|
|
|
$
|
916
|
|
|
$
|
970
|
|
|
$
|
983
|
|
Other revenue
|
|
243
|
|
|
211
|
|
|
332
|
|
|
356
|
|
||||
Total net revenue
|
|
1,093
|
|
|
1,127
|
|
|
1,302
|
|
|
1,339
|
|
||||
Provision for loan losses
|
|
116
|
|
|
140
|
|
|
211
|
|
|
240
|
|
||||
Total noninterest expense
|
|
695
|
|
|
724
|
|
|
674
|
|
|
668
|
|
||||
Income from continuing operations before income tax expense
|
|
282
|
|
|
263
|
|
|
417
|
|
|
431
|
|
||||
Income tax expense from continuing operations
|
|
103
|
|
|
94
|
|
|
144
|
|
|
155
|
|
||||
Net income from continuing operations
|
|
179
|
|
|
169
|
|
|
273
|
|
|
276
|
|
||||
Income (loss) from discontinued operations, net of tax
|
|
397
|
|
|
13
|
|
|
(5
|
)
|
|
(13
|
)
|
||||
Net income
|
|
$
|
576
|
|
|
$
|
182
|
|
|
$
|
268
|
|
|
$
|
263
|
|
Basic earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
|
$
|
0.23
|
|
|
$
|
(2.24
|
)
|
|
$
|
0.49
|
|
|
$
|
(1.94
|
)
|
Net income (loss)
|
|
1.06
|
|
|
(2.22
|
)
|
|
0.48
|
|
|
(1.97
|
)
|
||||
Diluted earnings per common share
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
|
$
|
0.23
|
|
|
$
|
(2.24
|
)
|
|
$
|
0.49
|
|
|
$
|
(1.94
|
)
|
Net income (loss)
|
|
1.06
|
|
|
(2.22
|
)
|
|
0.47
|
|
|
(1.97
|
)
|
Exhibit
|
Description
|
|
Method of Filing
|
3.1
|
Form of Amended and Restated Certificate of Incorporation
|
|
Filed as Exhibit 3.1 to the Company's Current Report on Form 8-K dated as of March 14, 2014, (File No. 1-3754), incorporated herein by reference.
|
3.2
|
Ally Financial Inc. Amended and Restated Bylaws
|
|
Filed as Exhibit 3.1 to the Company's Current Report on Form 8-K dated as of March 22, 2016, (File No. 1-3754), incorporated herein by reference.
|
4.1
|
Form of Indenture dated as of July 1, 1982, between the Company and Bank of New York (Successor Trustee to Morgan Guaranty Trust Company of New York), relating to Debt Securities
|
|
Filed as Exhibit 4(a) to the Company's Registration Statement No. 2-75115, incorporated herein by reference.
|
4.1.1
|
Form of First Supplemental Indenture dated as of April 1, 1986, supplementing the Indenture designated as Exhibit 4.1
|
|
Filed as Exhibit 4(g) to the Company's Registration Statement No. 33-4653, incorporated herein by reference.
|
4.1.2
|
Form of Second Supplemental Indenture dated as of June 15, 1987, supplementing the Indenture designated as Exhibit 4.1
|
|
Filed as Exhibit 4(h) to the Company's Registration Statement No. 33-15236, incorporated herein by reference.
|
4.1.3
|
Form of Third Supplemental Indenture dated as of September 30, 1996, supplementing the Indenture designated as Exhibit 4.1
|
|
Filed as Exhibit 4(i) to the Company's Registration Statement No. 333-33183, incorporated herein by reference.
|
4.1.4
|
Form of Fourth Supplemental Indenture dated as of January 1, 1998, supplementing the Indenture designated as Exhibit 4.1
|
|
Filed as Exhibit 4(j) to the Company's Registration Statement No. 333-48705, incorporated herein by reference.
|
4.1.5
|
Form of Fifth Supplemental Indenture dated as of September 30, 1998, supplementing the Indenture designated as Exhibit 4.1
|
|
Filed as Exhibit 4(k) to the Company's Registration Statement No. 333-75463, incorporated herein by reference.
|
4.2
|
Form of Indenture dated as of September 24, 1996, between the Company and The Chase Manhattan Bank, Trustee, relating to Term Notes
|
|
Filed as Exhibit 4 to the Company's Registration Statement No. 333-12023, incorporated herein by reference.
|
4.2.1
|
Form of First Supplemental Indenture dated as of January 1, 1998, supplementing the Indenture designated as Exhibit 4.2
|
|
Filed as Exhibit 4(a)(1) to the Company's Registration Statement No. 333-48207, incorporated herein by reference.
|
4.2.2
|
Form of Second Supplemental Indenture dated as of June 20, 2006, supplementing the Indenture designated as Exhibit 4.2
|
|
Filed as Exhibit 4(a)(2) to the Company's Registration Statement No. 33-136021, incorporated herein by reference.
|
4.2.3
|
Form of Third Supplemental Indenture dated as of August 24, 2012, supplementing the Indenture designated as Exhibit 4.2
|
|
Filed as Exhibit 4.1.3 to the Company's Registration Statement No. 333-183535, incorporated herein by reference.
|
4.2.4
|
Form of Fourth Supplemental Indenture dated as of August 24, 2012, supplementing the Indenture designated as Exhibit 4.2
|
|
Filed as Exhibit 4.1.4 to the Company's Registration Statement No. 333-183535, incorporated herein by reference.
|
4.3
|
Form of Indenture dated as of October 15, 1985, between the Company and U.S. Bank Trust (Successor Trustee to Comerica Bank), relating to Demand Notes
|
|
Filed as Exhibit 4 to the Company's Registration Statement No. 2-99057, incorporated herein by reference.
|
4.3.1
|
Form of First Supplemental Indenture dated as of April 1, 1986, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(a) to the Company's Registration Statement No. 33-4661, incorporated herein by reference.
|
4.3.2
|
Form of Second Supplemental Indenture dated as of June 24, 1986, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(b) to the Company's Registration Statement No. 33-6717, incorporated herein by reference.
|
4.3.3
|
Form of Third Supplemental Indenture dated as of February 15, 1987, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(c) to the Company's Registration Statement No. 33-12059, incorporated herein by reference.
|
|
|
|
|
Exhibit
|
Description
|
|
Method of Filing
|
4.3.4
|
Form of Fourth Supplemental Indenture dated as of December 1, 1988, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(d) to the Company's Registration Statement No. 33-26057, incorporated herein by reference.
|
4.3.5
|
Form of Fifth Supplemental Indenture dated as of October 2, 1989, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(e) to the Company's Registration Statement No. 33-31596, incorporated herein by reference.
|
4.3.6
|
Form of Sixth Supplemental Indenture dated as of January 1, 1998, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(f) to the Company's Registration Statement No. 333-56431, incorporated herein by reference.
|
4.3.7
|
Form of Seventh Supplemental Indenture dated as of June 15, 1998, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4(g) to the Company's Registration Statement No. 333-56431, incorporated herein by reference.
|
4.3.8
|
Form of Eighth Supplemental Indenture dated as of January 4, 2012, supplementing the Indenture designated as Exhibit 4.3
|
|
Filed as Exhibit 4.1.8 to the Company's Registration Statement No. 333-178919, incorporated herein by reference.
|
4.4
|
Form of Indenture dated as of December 1, 1993, between the Company and Citibank, N.A., Trustee, relating to Medium Term Notes
|
|
Filed as Exhibit 4 to the Company's Registration Statement No. 33-51381, incorporated herein by reference.
|
4.4.1
|
Form of First Supplemental Indenture dated as of January 1, 1998, supplementing the Indenture designated as Exhibit 4.4
|
|
Filed as Exhibit 4(a)(1) to the Company's Registration Statement No. 333-59551, incorporated herein by reference.
|
4.5
|
Indenture, dated as of December 31, 2008, between the Company and The Bank of New York Mellon, Trustee
|
|
Filed as Exhibit 4.2 to the Company's Current Report on Form 8-K dated as of January 2, 2009, (File No. 1-3754), incorporated herein by reference.
|
4.6
|
Amended and Restated Indenture, dated March 1, 2011, between the Company and The Bank of New York Mellon, Trustee
|
|
Filed as Exhibit 4.2 to the Company's Current Report on Form 8-K dated as of March 4, 2011 (File No. 1-3754), incorporated herein by reference.
|
4.7
|
Form of Guarantee Agreement related to Ally Financial Inc. Senior Unsecured Guaranteed Notes
|
|
Filed as Exhibit 4.10 to the Company's Registration Statement No. 333-193070, incorporated herein by reference.
|
4.8
|
Form of Fixed Rate Senior Unsecured Note
|
|
Filed as Exhibit 4.8 to the Company's Registration Statement No. 333-193070, incorporated herein by reference.
|
4.9
|
Form of Floating Rate Senior Unsecured Note
|
|
Filed as Exhibit 4.9 to the Company's Registration Statement No. 333-193070, incorporated herein by reference.
|
4.10
|
Form of Subordinated Indenture to be entered into between the Company and The Bank of New York Mellon, as Trustee
|
|
Filed as Exhibit 4.11 to the Company's Registration Statement No. 333-193070, incorporated herein by reference.
|
4.11
|
Form of Subordinated Note
|
|
Included in Exhibit 4.10.
|
4.12
|
Second Amended and Restated Declaration of Trust by and between the trustees of each series of GMAC Capital Trust I, Ally Financial Inc., as Sponsor, and by the holders, from time to time, of undivided beneficial interests in the relevant series of GMAC Capital Trust I, dated as of March 1, 2011
|
|
Filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated as of March 4, 2011 (File No. 1-3754), incorporated herein by reference.
|
4.13
|
Series 2 Trust Preferred Securities Guarantee Agreement between Ally Financial Inc. and The Bank of New York Mellon, dated as of March 1, 2011
|
|
Filed as Exhibit 4.3 to the Company's Current Report on Form 8-K dated as of March 4, 2011 (File No. 1-3754), incorporated herein by reference.
|
4.14
|
Indenture, dated as of November 20, 2015, between the Company and The Bank of New York Mellon, Trustee
|
|
Filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated as of November 20, 2015, (File No. 1-3754), incorporated herein by reference
|
4.15
|
Form of Subordinated Note
|
|
Included in Exhibit 4.14
|
10.1
|
Form of Ally Financial Inc. 2014 Executive Performance Plan
|
|
Filed as Exhibit 3.5 to the Company's Current Report on Form 8-K dated as of March 14, 2014 (File No. 1-3754), incorporated herein by reference.
|
10.2
|
Form of Ally Financial Inc. 2014 Incentive Compensation Plan
|
|
Filed as Exhibit 3.6 to the Company's Current Report on Form 8-K dated as of March 14, 2014 (File No. 1-3754), incorporated herein by reference.
|
|
|
|
|
Exhibit
|
Description
|
|
Method of Filing
|
10.3
|
Form of Ally Financial Inc. Employee Stock Purchase Plan
|
|
Filed as Exhibit 3.7 to the Company's Current Report on Form 8-K dated as of March 14, 2014 (File No. 1-3754), incorporated herein by reference.
|
10.4
|
Form of Ally Financial Inc. 2014 Non-Employee Directors Equity Compensation Plan
|
|
Filed as Exhibit 3.8 to the Company's Current Report on Form 8-K dated as of March 14, 2014 (File No. 1-3754), incorporated herein by reference.
|
10.5
|
Ally Financial Inc. Severance Plan, Plan Document and Summary Plan Description, as amended
|
|
Filed as Exhibit 10.6 to the Company's Annual Report for the period ended December 31, 2015, on Form 10-K (File No. 1-3754), incorporated herein by reference.
|
10.6
|
Ally Financial Inc. Non-Employee Directors Deferred Compensation Plan
|
|
Filed as Exhibit 10.7 to the Company's Annual Report for the period ended December 31, 2015, on Form 10-K (File No. 1-3754), incorporated herein by reference.
|
10.7
|
Form of Award Agreement related to the issuance of Performance Stock Units
|
|
Filed herewith.
|
10.8
|
Form of Award Agreement related to the issuance of Restricted Stock Units
|
|
Filed herewith.
|
10.9
|
Form of Award Agreement related to the issuance of Key Contributor Stock Units
|
|
Filed herewith.
|
10.10
|
Form of Award Agreement related to the issuance of an Ally Leader Equity Participation Award
|
|
Filed herewith.
|
10.11
|
Form of Award Agreement related to the issuance of Restricted Stock Awards
|
|
Filed herewith.
|
10.12
|
Consent Order, dated December 23, 2013 (Department of Justice)
|
|
Filed as Exhibit 10.34 to the Company's Annual Report for the period ended December 31, 2013, on Form 10-K (File No. 1-3754), incorporated herein by reference.
|
10.13
|
Consent Order, dated December 19, 2013 (Consumer Financial Protection Bureau)
|
|
Filed as Exhibit 10.35 to the Company's Annual Report for the period ended December 31, 2013, on Form 10-K (File No. 1-3754), incorporated herein by reference.
|
10.14
|
Stipulation and Consent to the Issuance of a Consent Order, dated December 19, 2013 (Consumer Financial Protection Bureau)
|
|
Filed as Exhibit 10.36 to the Company's Annual Report for the period ended December 31, 2013, on Form 10-K (File No. 1-3754), incorporated herein by reference.
|
12
|
Computation of Ratio of Earnings to Fixed Charges
|
|
Filed herewith.
|
21
|
Ally Financial Inc. Subsidiaries as of December 31, 2016
|
|
Filed herewith.
|
23.1
|
Consent of Independent Registered Public Accounting Firm
|
|
Filed herewith.
|
31.1
|
Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Filed herewith.
|
31.2
|
Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
|
|
Filed herewith.
|
32
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350
|
|
Filed herewith.
|
101
|
Interactive Data File
|
|
Filed herewith.
|
|
|
|
|
*
|
Certain confidential portions have been omitted pursuant to a confidential treatment request which has been separately filed with the Securities and Exchange Commission.
|
|
Ally Financial Inc.
|
|
(Registrant)
|
|
|
|
/
S
/
JEFFREY
J
.
B
ROWN
|
|
Jeffrey J. Brown
|
|
Chief Executive Officer
|
/
S
/
J
EFFREY
J
.
B
ROWN
|
|
/
S
/ C
HRISTOPHER
A. H
ALMY
|
Jeffrey J. Brown
|
|
Christopher A. Halmy
|
Chief Executive Officer
|
|
Chief Financial Officer
|
|
|
|
/
S
/
D
AVID
J
.
D
E
B
RUNNER
|
|
|
David J. DeBrunner
|
|
|
Vice President, Chief Accounting Officer, and
Corporate Controller
|
|
|
/
S
/
F
RANKLIN
W
.
H
OBBS
|
|
Franklin W. Hobbs
Ally Chairman
|
|
|
|
/
S
/
K
ENNETH
J
.
B
ACON
|
|
Kenneth J. Bacon
Director
|
|
|
|
/
S
/
R
OBERT
T
.
B
LAKELY
|
|
Robert T. Blakely
Director
|
|
|
|
/
S
/
M
AUREEN
A
.
B
REAKIRON-
E
VANS
|
|
Maureen A. Breakiron-Evans
Director
|
|
|
|
/
S
/
J
EFFREY
J
.
B
ROWN
|
|
Jeffrey J. Brown
Chief Executive Officer and Director
|
|
|
|
/
S
/
W
ILLIAM
H
.
C
ARY
|
|
William H. Cary
Director
|
|
|
|
/
S
/
M
AYREE
C
.
C
LARK
|
|
Mayree C. Clark
Director
|
|
|
|
/
S
/
K
IM
S
.
F
ENNEBRESQUE
|
|
Kim S. Fennebresque
Director
|
|
|
|
/
S
/
M
ARJORIE
M
AGNER
|
|
Marjorie Magner
Director
|
|
|
|
/
S
/
J
ACK
J
.
S
TACK
|
|
John J. Stack
Director
|
|
|
|
/
S
/
M
ICHAEL
F
.
S
TEIB
|
|
Michael F. Steib
Director
|
|
1.
|
You have been granted an Award under the Ally Financial Inc. 2014 Incentive Compensation Plan (the “Plan”). A copy of the Plan is enclosed. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.
|
2.
|
Your Award is granted to you as a matter of separate inducement and is not in lieu of salary or other compensation for your services. By accepting this Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).
|
3.
|
Your Award is initially being made in the form of Performance Stock Units (“PSUs”). Your Award will vest 100% on the third anniversary of the Grant Date (the “Vesting Date”), subject to your continued employment with the Company or one of its Affiliates through the Vesting Date (or as otherwise set forth herein or in the Plan);
provided
,
that the actual number of PSUs vesting and converting to Shares (such number of PSUs to be within a range of 0% to 150% of the number of the Target PSUs (as defined below)) (the “Adjusted PSUs”) shall be determined based on the achievement of the Performance Metrics (as defined in
Exhibit A
attached hereto) during the Performance Period (as defined below). For purposes of this Award Agreement, the “Performance Period” means the period commencing on January 1, 2017 and ending on December 31, 2018. Immediately following the end of the Performance Period, your Adjusted PSUs may, at the discretion of the Company, convert into a number of Shares of Restricted Stock equal to the number of Adjusted PSUs. For the avoidance of doubt, your Adjusted PSUs or Shares of Restricted Stock (as the case may be) will remain subject to your continued employment with the Company and its Affiliates through the Vesting Date and will be forfeited and cancelled if you do not remain employed with the Company and its Affiliates through the Vesting Date, except as otherwise explicitly provided below.
|
4.
|
This Award Agreement will become effective after you have printed, signed, dated one copy of this Award Agreement, and returned the signed copy (all pages) to: Brett Harrison at Ally Financial, e-mail Brett.Harrison@ally.com. If you do not accept this Award Agreement within 45 days of notification, [INSERT DATE] you will be deemed to have rejected the Award and this Award Agreement will be null and void and without any further force or effect.
|
5.
|
Subject to requirements of any federal laws or regulations and Ally policy that govern compensation (see paragraph 2 above), and subject to the terms of the Plan and this Agreement, the Company will deliver the
|
6.
|
If on the Grant Date you are considered a material risk taker, in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the Award remains unpaid, Ally reserves the right to adjust downward the amount of this Award without your consent to reflect adverse outcomes attributable to inappropriate, excessive, or imprudent risk taking in which you participated and which was the basis for this Award. Your Award is also subject to cancellation, recovery, forfeiture, or repayment consistent with Ally’s recoupment policy contained in the Enterprise Compensation Policy.
|
7.
|
The provisions of this paragraph 7 shall supersede any contrary provisions of Sections 11 and 12 of the Plan with respect to this Award.
|
8.
|
If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Vesting Date (or such other vesting and settlement date applicable under paragraphs 7(a), (b), (c) or (d) above), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.
|
9.
|
You will have no voting rights with respect to the Shares underlying your Award unless and until you become the record owner of the Shares underlying your Award.
|
10.
|
You may designate a beneficiary using the Beneficiary Designation Form enclosed. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear, or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The EDC Website may also be used for any subsequent change in your beneficiary designation.
|
11.
|
By accepting this Award, you understand and acknowledge that your Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.
|
12.
|
Except as prohibited by any federal law or regulation that governs compensation, see paragraph 2 above, your Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.
|
13.
|
By accepting this Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.
|
|
|
|
||
Participant Signature (Required)
|
|
Date (Required)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Last Four Digits of SSN or National ID (Required)
|
|
|
Number of Target PSUs
|
x
|
Core ROTCE Adjustment
Percentage |
x
|
50%
|
=
|
Number of
Core ROTCE Adjusted PSUs |
Number of Target PSUs
|
x
|
TSV
Adjustment
Percentage |
x
|
50%
|
=
|
Number of
TSV Adjusted PSUs |
Number of Core ROTCE Adjusted PSUs
|
+
|
Number of TSV Adjusted PSUs
|
=
|
Number of
Adjusted PSUs |
Core ROTCE
|
|
TSV
|
||
2-Year Average Annual Core ROTCE Achievement Level
(%)
|
ROTCE Adjustment Percentage
(%)
|
|
2-Year Average Annual TSV Growth Rate Achievement Level
(%)
|
TSV Adjustment Percentage
(%)
|
>12.00
|
150
|
|
>13.00
|
150
|
10.01 – 12.00
|
125
|
|
10.01 – 13.00
|
125
|
8.01 – 10.00
|
100
|
|
7.01 – 10.00
|
100
|
6.01 – 8.00
|
75
|
|
4.01 – 7.00
|
75
|
4.01 – 6.00
|
50
|
|
1.01 – 4.00
|
50
|
< 4.01
|
0
|
|
< 1.01
|
0
|
1.
|
You have been granted an Award under the Ally Financial Inc. 2014 Incentive Compensation Plan (the “Plan”). A copy of the Plan is available here. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.
|
2.
|
Your Award is granted to you as a matter of separate inducement and is not in lieu of salary or other compensation for your services. By accepting this Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).
|
3.
|
Your Award is being made in the form of Restricted Stock Units. Your Award is comprised of the following:
|
Units*
|
Vesting Date
|
Settlement Date
|
[INSERT- 1/3 of Granted award]
|
[INSERT:one year from grant date]
|
[INSERT:one year from grant date]
|
[INSERT- 1/3 of Granted award]
|
[INSERT:two years from grant date]
|
[INSERT:two years from grant date]
|
[INSERT- 1/3 of Granted award
|
[INSERT:three years from grant date]
|
[INSERT:three years from grant date]
|
4.
|
This Award Agreement will become effective after you have electronically accepted it via the “Deferred Compensation Center” on the Ally HR Portal or by printing, signing, dating one copy of this Award Agreement, and returning the signed copy (all pages) to: Brett Harrison at Ally Financial, e-mail Brett.Harrison@ally.com. If you do not accept this Award Agreement within 45 days of notification, [INSERT DATE] you will be deemed to have rejected the Award and this Award Agreement will be null and void and without any further force or effect.
|
5.
|
Subject to requirements of any federal laws or regulations and Ally policy that govern compensation, see paragraph 2 above, your Award will vest and be settled as soon as practical after the date(s) noted above. If and when a change to the vesting date(s) noted above is required, you will be notified in writing.
|
6.
|
If on the Grant Date you are considered a material risk taker, in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the Award remains unpaid, Ally reserves the right to adjust downward the amount of this Award without your consent to reflect adverse
|
7.
|
If your employment is terminated by the Company Without Cause, then any unvested tranches of your Award will Vest and be Paid as determined by the schedule above. Otherwise, Section 11 of the Plan governs the effect of a Termination of Service on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 11 of the Plan.
|
8.
|
Section 12 of the Plan governs the effect of a Change in Control of Ally on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 12 of the Plan.
|
9.
|
If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Vesting Date (or such other vesting and settlement date applicable under this Award), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.
|
10.
|
You may designate a beneficiary using the Beneficiary Designation Form located on the Executive Deferred Compensation (EDC) Website. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear, or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The EDC Website may also be used for any subsequent change in your beneficiary designation.
|
11.
|
By accepting this Award, you understand and acknowledge that your Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.
|
12.
|
Except as prohibited by any federal law or regulation that governs compensation, see paragraph 2 above, your Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.
|
13.
|
By accepting this Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.
|
|
|
|
||
Participant Signature (Required)
|
|
Date (Required)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Last Four Digits of SSN or National ID (Required)
|
|
|
1.
|
You have been granted a Key Contributor Award under the Ally Financial Inc. 2014 Incentive Compensation Plan (the “Plan”). A copy of the Plan is available here. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.
|
2.
|
Your Award is granted to you as a matter of separate inducement and is not in lieu of salary or other compensation for your services. By accepting this Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).
|
3.
|
Your Key Contributor Award is being made in the form of Restricted Stock Units. Your Award is comprised of the following:
|
Units
|
Vesting Date
|
Settlement Date
|
[INSERT- Granted award]
|
[INSERT:3 years from grant date]
|
[INSERT:3 years from grant date]
|
4.
|
This Award Agreement will become effective by printing, signing, dating one copy of this Award Agreement, and returning the signed copy (all pages) to: Brett Harrison at Ally Financial, e-mail Brett.Harrison@ally.com. If you do not accept this Award Agreement within 45 days of notification, [INSERT DATE] you will be deemed to have rejected the Award and this Award Agreement will be null and void and without any further force or effect.
|
5.
|
Subject to requirements of any federal laws or regulations and Ally Policy that govern compensation, see paragraph 2 above, your Award will vest and be settled as soon as practical after the date(s) noted above. If and when a change to the vesting date(s) noted above is required, you will be notified in writing.
|
6.
|
If on the Grant Date you are considered a material risk taker, in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the Award remains unsettled, Ally reserves the right to adjust downward the amount of this Award without your consent to reflect adverse outcomes attributable to inappropriate, excessive, or imprudent risk taking in which you participated and
|
7.
|
If your employment is terminated by the Company Without Cause, then any unvested tranches of your Award will Vest and be settled as determined by the schedule above. Additionally, Section 11(c)(i)’s special vesting provision relating to a Termination of Service by reason of Retirement will not apply to your Key Contributor Award (i.e., your age and service will not be a factor in determining whether your award vests). Otherwise, Section 11 of the Plan governs the effect of a Termination of Service on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 11 of the Plan.
|
8.
|
Section 12 of the Plan governs the effect of a Change in Control of Ally on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 12 of the Plan.
|
9.
|
If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Vesting Date (or such other vesting and settlement date applicable under this Award), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.
|
10.
|
You may designate a beneficiary using the Beneficiary Designation Form located on the Executive Deferred Compensation (EDC) Website. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear, or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The EDC Website may also be used for any subsequent change in your beneficiary designation.
|
11.
|
By accepting this Award, you understand and acknowledge that your Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.
|
12.
|
Except as prohibited by any federal law or regulation that governs compensation, see paragraph 2 above, your Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.
|
13.
|
By accepting this Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.
|
|
|
|
||
Participant Signature (Required)
|
|
Date (Required)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Last Four Digits of SSN or National ID (Required)
|
|
|
1.
|
Congratulations! You have been granted an ALEP Award under the Ally Financial Inc. 2014 Incentive Compensation Plan (the “Plan”). A copy of the Plan is enclosed. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.
|
2.
|
Your ALEP Award is granted to you as a separate incentive and is not in lieu of salary or other compensation for your services. By accepting this ALEP Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).
|
3.
|
Your Award is being made in the form of Restricted Stock Units. Your Award is comprised of the following:
|
Units
|
Vesting Date
|
Settlement Date
|
[INSERT- ¼ of Granted award]
|
[INSERT – 1 year from Grant Date]
|
[INSERT – 1 year from Grant Date]
|
[INSERT- ¼ of Granted award]
|
[INSERT – 2 years from Grant Date]
|
[INSERT – 2 years from Grant Date]
|
[INSERT- ¼ of Granted award]
|
[INSERT – 3 years from Grant Date]
|
[INSERT – 3 years from Grant Date]
|
[INSERT- ¼ of Granted award]
|
[INSERT – 4 years from Grant Date]
|
[INSERT – 4 years from Grant Date]
|
4.
|
This Award Agreement will become effective by printing, signing, dating one copy of this Award Agreement, and returning the signed copy (all pages) to: Brett Harrison at Ally Financial, e-mail Brett.Harrison@ally.com. If you do not accept this Award Agreement within 45 days of notification, [INSERT DATE], you will be deemed to have rejected the ALEP Award and this Award Agreement will be null and void and without any further force or effect.
|
5.
|
Subject to requirements of any federal laws or regulations and Ally policy that govern compensation, your ALEP Award will vest and be settled as soon as practical after the date(s) noted above. If and when a change to the vesting date(s) noted above is required, you will be notified in writing.
|
6.
|
If on the Grant Date you are considered a material risk taker, in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the ALEP Award remains
|
7
|
If your employment is terminated due to Retirement, as approved by the Company, or by the Company Without Cause during the first year following the Grant Date, the first two tranches (i.e., one-half of the total ALEP Award) of the ALEP Award will continue to vest in accordance with above schedule, but the second two tranches (i.e., one-half of the total ALEP Award) will be forfeited. If your employment is terminated due to Retirement, as approved by the Company, or by the Company Without Cause after the first year following the Grant Date, the entire ALEP Award will continue to vest and will be settled in accordance with the above schedule (i.e., no forfeiture). Otherwise, Section 11 of the Plan governs the effect of a Termination of Service on your ALEP Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 11 of the Plan.
|
8.
|
Section 12 of the Plan governs the effect of a Change in Control of Ally on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 12 of the Plan.
|
9.
|
If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Vesting Date (or such other vesting and settlement date applicable under this Award), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.
|
10.
|
You may designate a beneficiary using the Beneficiary Designation Form located on the Executive Deferred Compensation (EDC) Website or using the enclosed form. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The EDC Website may also be used for any subsequent change in your beneficiary designation.
|
11.
|
By accepting this ALEP Award, you understand and acknowledge that your ALEP Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.
|
12.
|
Except as prohibited by any federal law or regulation that governs compensation, your ALEP Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.
|
13.
|
By accepting this ALEP Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.
|
|
|
|
||
Participant Signature (Required)
|
|
Date (Required)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Last Four Digits of SSN or National ID (Required)
|
|
|
1.
|
You have been granted an Award under the Ally Financial Inc. 2014 Incentive Compensation Plan (the “Plan”). A copy of the Plan is available here. Capitalized terms not defined in this Award Agreement will have the meaning set forth in the Plan.
|
2.
|
Your Award is granted to you as a matter of separate inducement and is not in lieu of salary or other compensation for your services. By accepting this Award, you consent to any and all Plan amendments, vesting restrictions, and revisions to any other term or condition of this Award Agreement that may be required to comply with federal law or regulation governing compensation, whether such amendments, restrictions, or revisions are applied prospectively or retroactively to this or prior Awards. By accepting this Award, you also acknowledge and agree that it is subject to all of the requirements set forth in the Enterprise Compensation Policy and that you are subject to all of the restrictive covenants set forth in Section 13 of the Plan (i.e., non-solicit, confidentiality, non-disparagement).
|
3.
|
Your Award is being made in the form of Restricted Stock. Your Award is comprised of the following:
|
Units*
|
Vesting Date
|
Settlement Date
|
[INSERT- 33.33 of Granted award]
|
[INSERT:one year from grant date]
|
[INSERT:one year from grant date]
|
[INSERT- 33.33% of Granted award]
|
[INSERT:two years from grant date]
|
[INSERT:two years from grant date]
|
[INSERT- 33.34% of Granted award
|
[INSERT:three years from grant date]
|
[INSERT:three years from grant date]
|
4.
|
This Award Agreement will become effective by printing, signing, dating one copy of this Award Agreement, and returning the signed copy (all pages) to: Brett Harrison at Ally Financial, e-mail Brett.Harrison@ally.com. If you do not accept this Award Agreement within 45 days of notification, [INSERT DATE] you will be deemed to have rejected the Award and this Award Agreement will be null and void and without any further force or effect.
|
5.
|
Subject to requirements of any federal laws or regulations and Ally policy that govern compensation, see paragraph 2 above, your Award will vest and be settled as soon as practical after the date(s) noted above. If and when a change to the vesting date(s) noted above is required, you will be notified in writing.
|
6.
|
If on the Grant Date you are considered a material risk taker, in connection with regulatory guidance and in support of its corporate governance principles, to the extent that any portion of the Award remains unpaid, Ally reserves the right to adjust downward the amount of this Award without your consent to reflect adverse outcomes attributable to inappropriate, excessive, or imprudent risk taking in which you participated and which was the basis for this Award. Your Award is also subject to cancellation, recovery, forfeiture, or repayment consistent with Ally’s recoupment policy contained in the Enterprise Compensation Policy.
|
7.
|
If your employment is terminated by the Company Without Cause, then any unvested tranches of your Award will Vest and be Paid as determined by the schedule above. Otherwise, Section 11 of the Plan governs the effect of a Termination of Service on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 11 of the Plan.
|
8.
|
Section 12 of the Plan governs the effect of a Change in Control of Ally on your Award, except that for purposes of this Award the “twenty-four months” shall be substituted and shall apply in lieu of the reference to “twelve months” contained in Section 12 of the Plan.
|
9.
|
If the Company pays a dividend on Shares prior to the Vesting Date, you will be entitled to a dividend equivalent payment in the same amount as the dividend you would have received if you held the number of Shares, if any, as earned and vested as of the Vesting Date. These dividends will vest and be paid to you on the Vesting Date (or such other vesting and settlement date applicable under this Award), subject to the vesting of your Award. No dividends or dividend equivalents will be paid to you with respect to any portion of your Award that is canceled or forfeited. The Company will decide on the form of payment and may pay dividends or dividend equivalents in Shares, in cash or in a combination thereof, subject to applicable law.
|
10.
|
You may designate a beneficiary using the Beneficiary Designation Form located on the Executive Deferred Compensation (EDC) Website. If no beneficiary is designated, or if the Ally determines that the beneficiary designation is unclear, or that the designated beneficiary cannot be located, any settlement as a result of your death will be made to your estate. The EDC Website may also be used for any subsequent change in your beneficiary designation.
|
11.
|
By accepting this Award, you understand and acknowledge that your Award is subject to the rules under Internal Revenue Code Section 409A, and agree and accept all risks (including increased taxes and penalties) resulting from Internal Revenue Code Section 409A.
|
12.
|
Except as prohibited by any federal law or regulation that governs compensation, see paragraph 2 above, your Award is subject to and governed by the terms and conditions of this Award Agreement and the Plan.
|
13.
|
By accepting this Award, as evidenced by your signature below, you agree to abide by the terms and conditions of this Award Agreement and the Plan.
|
|
|
|
||
Participant Signature (Required)
|
|
Date (Required)
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Last Four Digits of SSN or National ID (Required)
|
|
|
Year ended December 31, (
$ in millions
)
|
2016 (a)
|
2015 (a)
|
2014 (a)
|
2013 (a)
|
2012 (a)
|
|||||||||||
Earnings
|
|
|
|
|
|
|||||||||||
Consolidated net income from continuing operations
|
$
|
1,111
|
|
$
|
897
|
|
$
|
925
|
|
$
|
416
|
|
$
|
1,370
|
|
|
Income tax expense (benefit) from continuing operations
|
470
|
|
496
|
|
321
|
|
(59
|
)
|
(856
|
)
|
||||||
Equity-method investee earnings
|
(18
|
)
|
(52
|
)
|
(18
|
)
|
(15
|
)
|
(6
|
)
|
||||||
Minority interest expense
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
||||||
Consolidated income from continuing operations before income taxes, minority interest, and income from equity investees
|
1,563
|
|
1,341
|
|
1,228
|
|
342
|
|
509
|
|
||||||
Fixed charges
|
2,641
|
|
2,460
|
|
2,826
|
|
3,344
|
|
4,031
|
|
||||||
Earnings available for fixed charges
|
$
|
4,204
|
|
$
|
3,801
|
|
$
|
4,054
|
|
$
|
3,686
|
|
$
|
4,540
|
|
|
Fixed charges
|
|
|
|
|
|
|||||||||||
Interest, discount, and issuance expense on debt
|
$
|
2,624
|
|
$
|
2,443
|
|
$
|
2,810
|
|
$
|
3,330
|
|
$
|
4,014
|
|
|
Portion of rentals representative of the interest factor
|
17
|
|
17
|
|
16
|
|
15
|
|
17
|
|
||||||
Total fixed charges
|
$
|
2,641
|
|
$
|
2,460
|
|
$
|
2,826
|
|
$
|
3,345
|
|
$
|
4,031
|
|
|
Ratio of earnings to fixed charges
|
1.59
|
|
1.55
|
|
1.43
|
|
1.10
|
|
1.13
|
|
(a)
|
During 2013 and 2012, certain disposal groups met the criteria to be presented as discontinued operations. For all periods presented, the operating results for these operations have been removed from continuing operations. We report these businesses separately as discontinued operations in the
Consolidated Financial Statements
. Refer to
Note 3
to the
Consolidated Financial Statements
for further discussion of our discontinued operations. All reported periods of the calculation of the ratio of earnings to fixed charges exclude discontinued operations.
|
Name of subsidiary
|
State or sovereign power of incorporation
|
Ally Financial Inc.
|
Delaware
|
Ally Funding Transferor Exclusive Receivables, LLC
|
Delaware
|
Ally Insurance Holdings, Inc.
|
Delaware
|
Ally Secured Transferor Receivables Aggregator, LLC
|
Delaware
|
Ally Wholesale Enterprises, LLC
|
Delaware
|
Capital Auto Receivables, LLC
|
Delaware
|
IB Finance Holding Company, LLC
|
Delaware
|
Ally Bank
|
Utah
|
Ally Central Originating Lease, LLC
|
Delaware
|
Ally Servicing, LLC
|
Delaware
|
Form S-3:
|
|
No. 333-206284
|
|
No. 333-214831
|
|
No. 333-201057
|
|
No. 333-201205
|
|
|
|
Form S-8:
|
|
No. 333-195172
|
|
/
S
/
D
ELOITTE
& T
OUCHE
LLP
|
Deloitte & Touche LLP
|
Detroit, Michigan
|
February 27, 2017
|
1.
|
I have reviewed this report on Form 10-K of Ally Financial Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/
J
EFFREY
J
.
B
ROWN
|
|
Jeffrey J. Brown
Chief Executive Officer
|
|
1.
|
I have reviewed this report on Form 10-K of Ally Financial Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/
S
/
C
HRISTOPHER
A
.
H
ALMY
|
|
Christopher A. Halmy
Chief Financial Officer
|
|
1.
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/
S
/ J
EFFREY
J
.
B
ROWN
|
|
Jeffrey J. Brown
|
|
Chief Executive Officer
|
|
February 27, 2017
|
|
|
|
/
S
/ C
HRISTOPHER
A
.
H
ALMY
|
|
Christopher A. Halmy
|
|
Chief Financial Officer
|
|
February 27, 2017
|
|