þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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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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Delaware
|
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38-0572512
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
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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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Emerging growth company
o
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||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
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Title of each class
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Trading symbols
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Common Stock, par value $0.01 per share
|
ALLY
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8.125% Fixed Rate/Floating Rate Trust Preferred Securities, Series 2 of GMAC Capital Trust I
|
ALLY PRA
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Page
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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PART I — FINANCIAL INFORMATION
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Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Financing revenue and other interest income
|
|
|
|
|
||||
Interest and fees on finance receivables and loans
|
|
$
|
1,807
|
|
|
$
|
1,543
|
|
Interest on loans held-for-sale
|
|
2
|
|
|
—
|
|
||
Interest and dividends on investment securities and other earning assets
|
|
240
|
|
|
176
|
|
||
Interest on cash and cash equivalents
|
|
23
|
|
|
15
|
|
||
Operating leases
|
|
361
|
|
|
382
|
|
||
Total financing revenue and other interest income
|
|
2,433
|
|
|
2,116
|
|
||
Interest expense
|
|
|
|
|
||||
Interest on deposits
|
|
592
|
|
|
351
|
|
||
Interest on short-term borrowings
|
|
44
|
|
|
32
|
|
||
Interest on long-term debt
|
|
419
|
|
|
411
|
|
||
Total interest expense
|
|
1,055
|
|
|
794
|
|
||
Net depreciation expense on operating lease assets
|
|
246
|
|
|
273
|
|
||
Net financing revenue and other interest income
|
|
1,132
|
|
|
1,049
|
|
||
Other revenue
|
|
|
|
|
||||
Insurance premiums and service revenue earned
|
|
261
|
|
|
256
|
|
||
Gain on mortgage and automotive loans, net
|
|
10
|
|
|
1
|
|
||
Other gain (loss) on investments, net
|
|
108
|
|
|
(12
|
)
|
||
Other income, net of losses
|
|
87
|
|
|
109
|
|
||
Total other revenue
|
|
466
|
|
|
354
|
|
||
Total net revenue
|
|
1,598
|
|
|
1,403
|
|
||
Provision for loan losses
|
|
282
|
|
|
261
|
|
||
Noninterest expense
|
|
|
|
|
||||
Compensation and benefits expense
|
|
318
|
|
|
306
|
|
||
Insurance losses and loss adjustment expenses
|
|
59
|
|
|
63
|
|
||
Other operating expenses
|
|
453
|
|
|
445
|
|
||
Total noninterest expense
|
|
830
|
|
|
814
|
|
||
Income from continuing operations before income tax expense
|
|
486
|
|
|
328
|
|
||
Income tax expense from continuing operations
|
|
111
|
|
|
76
|
|
||
Net income from continuing operations
|
|
375
|
|
|
252
|
|
||
Loss from discontinued operations, net of tax
|
|
(1
|
)
|
|
(2
|
)
|
||
Net income
|
|
374
|
|
|
250
|
|
||
Other comprehensive income (loss), net of tax
|
|
306
|
|
|
(328
|
)
|
||
Comprehensive income (loss)
|
|
$
|
680
|
|
|
$
|
(78
|
)
|
|
|
Three months ended March 31,
|
||||||
(in dollars)
(a)
|
|
2019
|
|
2018
|
||||
Basic earnings per common share
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.93
|
|
|
$
|
0.58
|
|
Loss from discontinued operations, net of tax
|
|
—
|
|
|
(0.01
|
)
|
||
Net income
|
|
$
|
0.93
|
|
|
$
|
0.57
|
|
Diluted earnings per common share
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.92
|
|
|
$
|
0.57
|
|
Loss from discontinued operations, net of tax
|
|
—
|
|
|
(0.01
|
)
|
||
Net income
|
|
$
|
0.92
|
|
|
$
|
0.57
|
|
Cash dividends declared per common share
|
|
$
|
0.17
|
|
|
$
|
0.13
|
|
(a)
|
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
|
($ in millions, except share data)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
946
|
|
|
$
|
810
|
|
Interest-bearing
|
|
3,011
|
|
|
3,727
|
|
||
Total cash and cash equivalents
|
|
3,957
|
|
|
4,537
|
|
||
Equity securities
|
|
536
|
|
|
773
|
|
||
Available-for-sale securities (refer to Note 6 for discussion of investment securities pledged as collateral)
|
|
27,630
|
|
|
25,303
|
|
||
Held-to-maturity securities (fair value of $2,374 and $2,307)
|
|
2,387
|
|
|
2,362
|
|
||
Loans held-for-sale, net
|
|
107
|
|
|
314
|
|
||
Finance receivables and loans, net
|
|
|
|
|
||||
Finance receivables and loans, net of unearned income
|
|
130,055
|
|
|
129,926
|
|
||
Allowance for loan losses
|
|
(1,288
|
)
|
|
(1,242
|
)
|
||
Total finance receivables and loans, net
|
|
128,767
|
|
|
128,684
|
|
||
Investment in operating leases, net
|
|
8,339
|
|
|
8,417
|
|
||
Premiums receivable and other insurance assets
|
|
2,401
|
|
|
2,326
|
|
||
Other assets
|
|
5,993
|
|
|
6,153
|
|
||
Total assets
|
|
$
|
180,117
|
|
|
$
|
178,869
|
|
Liabilities
|
|
|
|
|
||||
Deposit liabilities
|
|
|
|
|
||||
Noninterest-bearing
|
|
$
|
141
|
|
|
$
|
142
|
|
Interest-bearing
|
|
113,158
|
|
|
106,036
|
|
||
Total deposit liabilities
|
|
113,299
|
|
|
106,178
|
|
||
Short-term borrowings
|
|
6,115
|
|
|
9,987
|
|
||
Long-term debt
|
|
41,490
|
|
|
44,193
|
|
||
Interest payable
|
|
696
|
|
|
523
|
|
||
Unearned insurance premiums and service revenue
|
|
3,096
|
|
|
3,044
|
|
||
Accrued expenses and other liabilities
|
|
1,722
|
|
|
1,676
|
|
||
Total liabilities
|
|
166,418
|
|
|
165,601
|
|
||
Contingencies (refer to Note 23)
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Common stock and paid-in capital ($0.01 par value, shares authorized 1,100,000,000; issued 495,771,320 and 492,797,409; and outstanding 399,760,804 and 404,899,599)
|
|
21,379
|
|
|
21,345
|
|
||
Accumulated deficit
|
|
(5,195
|
)
|
|
(5,489
|
)
|
||
Accumulated other comprehensive loss
|
|
(225
|
)
|
|
(539
|
)
|
||
Treasury stock, at cost (96,010,516 and 87,897,810 shares)
|
|
(2,260
|
)
|
|
(2,049
|
)
|
||
Total equity
|
|
13,699
|
|
|
13,268
|
|
||
Total liabilities and equity
|
|
$
|
180,117
|
|
|
$
|
178,869
|
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Assets
|
|
|
|
|
||||
Finance receivables and loans, net
|
|
|
|
|
||||
Finance receivables and loans, net of unearned income
|
|
$
|
16,772
|
|
|
$
|
18,086
|
|
Allowance for loan losses
|
|
(99
|
)
|
|
(114
|
)
|
||
Total finance receivables and loans, net
|
|
16,673
|
|
|
17,972
|
|
||
Investment in operating leases, net
|
|
123
|
|
|
164
|
|
||
Other assets
|
|
636
|
|
|
767
|
|
||
Total assets
|
|
$
|
17,432
|
|
|
$
|
18,903
|
|
Liabilities
|
|
|
|
|
||||
Long-term debt
|
|
$
|
9,742
|
|
|
$
|
10,482
|
|
Accrued expenses and other liabilities
|
|
11
|
|
|
12
|
|
||
Total liabilities
|
|
$
|
9,753
|
|
|
$
|
10,494
|
|
($ in millions)
|
|
Common stock and paid-in capital
|
|
Accumulated deficit
|
|
Accumulated other comprehensive loss
|
|
Treasury stock
|
|
Total equity
|
||||||||||
Balance at December 31, 2017
|
|
$
|
21,245
|
|
|
$
|
(6,406
|
)
|
|
$
|
(235
|
)
|
|
$
|
(1,110
|
)
|
|
$
|
13,494
|
|
Cumulative effect of changes in accounting principles, net of tax (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adoption of Accounting Standards Update 2014-09
|
|
|
|
(126
|
)
|
|
|
|
|
|
(126
|
)
|
||||||||
Adoption of Accounting Standards Update 2016-01
|
|
|
|
(20
|
)
|
|
27
|
|
|
|
|
7
|
|
|||||||
Adoption of Accounting Standards Update 2018-02
|
|
|
|
42
|
|
|
(42
|
)
|
|
|
|
—
|
|
|||||||
Balance at January 1, 2018
|
|
21,245
|
|
|
(6,510
|
)
|
|
(250
|
)
|
|
(1,110
|
)
|
|
13,375
|
|
|||||
Net income
|
|
|
|
250
|
|
|
|
|
|
|
|
250
|
|
|||||||
Share-based compensation
|
|
28
|
|
|
|
|
|
|
|
|
|
|
28
|
|
||||||
Other comprehensive loss
|
|
|
|
|
|
(328
|
)
|
|
|
|
|
(328
|
)
|
|||||||
Common stock repurchases
|
|
|
|
|
|
|
|
|
(185
|
)
|
|
(185
|
)
|
|||||||
Common stock dividends ($0.13 per share)
|
|
|
|
(58
|
)
|
|
|
|
|
|
(58
|
)
|
||||||||
Balance at March 31, 2018
|
|
$
|
21,273
|
|
|
$
|
(6,318
|
)
|
|
$
|
(578
|
)
|
|
$
|
(1,295
|
)
|
|
$
|
13,082
|
|
Balance at December 31, 2018
|
|
$
|
21,345
|
|
|
$
|
(5,489
|
)
|
|
$
|
(539
|
)
|
|
$
|
(2,049
|
)
|
|
$
|
13,268
|
|
Cumulative effect of changes in accounting principles, net of tax (a)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adoption of Accounting Standards Update 2017-08
|
|
|
|
(10
|
)
|
|
8
|
|
|
|
|
(2
|
)
|
|||||||
Balance at January 1, 2019
|
|
21,345
|
|
|
(5,499
|
)
|
|
(531
|
)
|
|
(2,049
|
)
|
|
13,266
|
|
|||||
Net income
|
|
|
|
374
|
|
|
|
|
|
|
|
374
|
|
|||||||
Share-based compensation
|
|
34
|
|
|
|
|
|
|
|
|
34
|
|
||||||||
Other comprehensive income
|
|
|
|
|
|
306
|
|
|
|
|
306
|
|
||||||||
Common stock repurchases
|
|
|
|
|
|
|
|
(211
|
)
|
|
(211
|
)
|
||||||||
Common stock dividends ($0.17 per share)
|
|
|
|
(70
|
)
|
|
|
|
|
|
|
(70
|
)
|
|||||||
Balance at March 31, 2019
|
|
$
|
21,379
|
|
|
$
|
(5,195
|
)
|
|
$
|
(225
|
)
|
|
$
|
(2,260
|
)
|
|
$
|
13,699
|
|
(a)
|
Refer to the section titled
Recently Adopted Accounting Standards
in
Note 1
for additional information.
|
Three months ended March 31,
($ in millions)
|
|
2019
|
|
2018
|
||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
374
|
|
|
$
|
250
|
|
Reconciliation of net income to net cash provided by operating activities
|
|
|
|
|
||||
Depreciation and amortization
|
|
369
|
|
|
434
|
|
||
Provision for loan losses
|
|
282
|
|
|
261
|
|
||
Gain on mortgage and automotive loans, net
|
|
(10
|
)
|
|
(1
|
)
|
||
Other (gain) loss on investments, net
|
|
(108
|
)
|
|
12
|
|
||
Originations and purchases of loans held-for-sale
|
|
(134
|
)
|
|
(248
|
)
|
||
Proceeds from sales and repayments of loans held-for-sale
|
|
111
|
|
|
230
|
|
||
Net change in
|
|
|
|
|
||||
Deferred income taxes
|
|
100
|
|
|
83
|
|
||
Interest payable
|
|
173
|
|
|
120
|
|
||
Other assets
|
|
(40
|
)
|
|
29
|
|
||
Other liabilities
|
|
37
|
|
|
(106
|
)
|
||
Other, net
|
|
(73
|
)
|
|
33
|
|
||
Net cash provided by operating activities
|
|
1,081
|
|
|
1,097
|
|
||
Investing activities
|
|
|
|
|
||||
Purchases of equity securities
|
|
(48
|
)
|
|
(374
|
)
|
||
Proceeds from sales of equity securities
|
|
383
|
|
|
220
|
|
||
Purchases of available-for-sale securities
|
|
(3,401
|
)
|
|
(2,360
|
)
|
||
Proceeds from sales of available-for-sale securities
|
|
656
|
|
|
328
|
|
||
Proceeds from repayments of available-for-sale securities
|
|
694
|
|
|
795
|
|
||
Purchases of held-to-maturity securities
|
|
(131
|
)
|
|
(155
|
)
|
||
Proceeds from repayments of held-to-maturity securities
|
|
44
|
|
|
35
|
|
||
Purchases of finance receivables and loans held-for-investment
|
|
(1,452
|
)
|
|
(1,497
|
)
|
||
Proceeds from sales of finance receivables and loans initially held-for-investment
|
|
157
|
|
|
—
|
|
||
Originations and repayments of finance receivables and loans held-for-investment and other, net
|
|
1,149
|
|
|
(1,300
|
)
|
||
Purchases of operating lease assets
|
|
(792
|
)
|
|
(969
|
)
|
||
Disposals of operating lease assets
|
|
624
|
|
|
976
|
|
||
Net change in nonmarketable equity investments
|
|
171
|
|
|
(19
|
)
|
||
Other, net
|
|
(95
|
)
|
|
(82
|
)
|
||
Net cash used in investing activities
|
|
(2,041
|
)
|
|
(4,402
|
)
|
Three months ended March 31,
($ in millions)
|
|
2019
|
|
2018
|
||||
Financing activities
|
|
|
|
|
||||
Net change in short-term borrowings
|
|
(3,872
|
)
|
|
(1,848
|
)
|
||
Net increase in deposits
|
|
7,114
|
|
|
4,173
|
|
||
Proceeds from issuance of long-term debt
|
|
1,766
|
|
|
6,665
|
|
||
Repayments of long-term debt
|
|
(4,490
|
)
|
|
(5,771
|
)
|
||
Repurchase of common stock
|
|
(211
|
)
|
|
(185
|
)
|
||
Dividends paid
|
|
(70
|
)
|
|
(58
|
)
|
||
Net cash provided by financing activities
|
|
237
|
|
|
2,976
|
|
||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash
|
|
1
|
|
|
(2
|
)
|
||
Net decrease in cash and cash equivalents and restricted cash
|
|
(722
|
)
|
|
(331
|
)
|
||
Cash and cash equivalents and restricted cash at beginning of year
|
|
5,626
|
|
|
5,269
|
|
||
Cash and cash equivalents and restricted cash at March 31,
|
|
$
|
4,904
|
|
|
$
|
4,938
|
|
Supplemental disclosures
|
|
|
|
|
||||
Cash paid for
|
|
|
|
|
||||
Interest
|
|
$
|
862
|
|
|
$
|
667
|
|
Income taxes
|
|
12
|
|
|
5
|
|
||
Noncash items
|
|
|
|
|
||||
Loans held-for-sale transferred to finance receivables and loans held-for-investment
|
|
63
|
|
|
—
|
|
||
Finance receivables and loans held-for-investment transferred to loans held-for-sale
|
|
20
|
|
|
—
|
|
||
Other disclosures
|
|
|
|
|
||||
Proceeds from repayments of mortgage loans held-for-investment originally designated as held-for-sale
|
|
3
|
|
|
11
|
|
March 31,
($ in millions)
|
|
2019
|
|
2018
|
||||
Cash and cash equivalents on the Condensed Consolidated Balance Sheet
|
|
$
|
3,957
|
|
|
$
|
3,721
|
|
Restricted cash included in other assets on the Condensed Consolidated Balance Sheet (a)
|
|
947
|
|
|
1,217
|
|
||
Total cash and cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows
|
|
$
|
4,904
|
|
|
$
|
4,938
|
|
(a)
|
Restricted cash balances relate primarily to Ally securitization arrangements. Refer to
Note 10
for additional details describing the nature of restricted cash balances.
|
Three months ended March 31,
($ in millions)
|
|
Automotive Finance operations
|
|
Insurance operations
|
|
Mortgage Finance operations
|
|
Corporate Finance operations
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninsurance contracts (a) (b) (c)
|
|
$
|
—
|
|
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
131
|
|
Remarketing fee income
|
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
||||||
Brokerage commissions and other revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
17
|
|
||||||
Deposit account and other banking fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
||||||
Brokered/agent commissions
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Other
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Total revenue from contracts with customers
|
|
23
|
|
|
134
|
|
|
—
|
|
|
—
|
|
|
22
|
|
|
179
|
|
||||||
All other revenue
|
|
45
|
|
|
226
|
|
|
2
|
|
|
11
|
|
|
3
|
|
|
287
|
|
||||||
Total other revenue (d)
|
|
$
|
68
|
|
|
$
|
360
|
|
|
$
|
2
|
|
|
$
|
11
|
|
|
$
|
25
|
|
|
$
|
466
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Revenue from contracts with customers
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noninsurance contracts (a) (b) (c)
|
|
$
|
—
|
|
|
$
|
123
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
123
|
|
Remarketing fee income
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||||
Brokerage commissions and other revenue
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
16
|
|
||||||
Deposit account and other banking fees
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||
Brokered/agent commissions
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Other
|
|
2
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Total revenue from contracts with customers
|
|
25
|
|
|
128
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
172
|
|
||||||
All other revenue
|
|
41
|
|
|
118
|
|
|
1
|
|
|
8
|
|
|
14
|
|
|
182
|
|
||||||
Total other revenue (d)
|
|
$
|
66
|
|
|
$
|
246
|
|
|
$
|
1
|
|
|
$
|
8
|
|
|
$
|
33
|
|
|
$
|
354
|
|
(a)
|
We had
$2.6 billion
and
$2.5 billion
in unearned revenue associated with outstanding contracts at January 1, 2019, and January 1, 2018, respectively, and
$199 million
and
$194 million
of these balances were recognized as insurance premiums and service revenue earned in our
Condensed Consolidated Statement of Comprehensive Income
during the three months ended
March 31, 2019
, and
March 31, 2018
, respectively.
|
(b)
|
At
March 31, 2019
, we had unearned revenue of
$2.7 billion
associated with outstanding contracts, and with respect to this balance we expect to recognize revenue of
$554 million
during the remainder of
2019
,
$672 million
in
2020
,
$562 million
in
2021
,
$424 million
in
2022
, and
$477 million
thereafter. At March 31, 2018, we had unearned revenue of
$2.5 billion
associated with outstanding contracts.
|
(c)
|
We had opening and closing balances of deferred insurance assets of
$1.5 billion
and
$1.6 billion
at January 1, 2019, and
March 31, 2019
, respectively, and recognized
$111 million
of expense during the
three months ended
March 31, 2019
. We had opening and closing balances of deferred insurance assets of
$1.4 billion
at both January 1, 2018, and March 31, 2018, and recognized
$103 million
of expense during the three months ended
March 31, 2018
.
|
(d)
|
Represents a component of total net revenue. Refer to
Note 21
for further information on our reportable operating segments.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Late charges and other administrative fees
|
|
$
|
29
|
|
|
$
|
29
|
|
Remarketing fees
|
|
18
|
|
|
23
|
|
||
Servicing fees
|
|
6
|
|
|
8
|
|
||
Income from equity-method investments
|
|
4
|
|
|
6
|
|
||
Other, net
|
|
30
|
|
|
43
|
|
||
Total other income, net of losses
|
|
$
|
87
|
|
|
$
|
109
|
|
($ in millions)
|
|
2019
|
|
2018
|
||||
Total gross reserves for insurance losses and loss adjustment expenses at January 1,
|
|
$
|
134
|
|
|
$
|
140
|
|
Less: Reinsurance recoverable
|
|
96
|
|
|
108
|
|
||
Net reserves for insurance losses and loss adjustment expenses at January 1,
|
|
38
|
|
|
32
|
|
||
Net insurance losses and loss adjustment expenses incurred related to:
|
|
|
|
|
||||
Current year
|
|
59
|
|
|
60
|
|
||
Prior years (a)
|
|
—
|
|
|
3
|
|
||
Total net insurance losses and loss adjustment expenses incurred
|
|
59
|
|
|
63
|
|
||
Net insurance losses and loss adjustment expenses paid or payable related to:
|
|
|
|
|
||||
Current year
|
|
(33
|
)
|
|
(31
|
)
|
||
Prior years
|
|
(23
|
)
|
|
(19
|
)
|
||
Total net insurance losses and loss adjustment expenses paid or payable
|
|
(56
|
)
|
|
(50
|
)
|
||
Net reserves for insurance losses and loss adjustment expenses at March 31,
|
|
41
|
|
|
45
|
|
||
Plus: Reinsurance recoverable
|
|
94
|
|
|
112
|
|
||
Total gross reserves for insurance losses and loss adjustment expenses at March 31,
|
|
$
|
135
|
|
|
$
|
157
|
|
(a)
|
There have been no material adverse changes to the reserve for prior years.
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Insurance commissions
|
$
|
114
|
|
|
$
|
110
|
|
Technology and communications
|
77
|
|
|
71
|
|
||
Advertising and marketing
|
48
|
|
|
39
|
|
||
Lease and loan administration
|
39
|
|
|
42
|
|
||
Professional services
|
29
|
|
|
32
|
|
||
Regulatory and licensing fees
|
28
|
|
|
30
|
|
||
Vehicle remarketing and repossession
|
27
|
|
|
32
|
|
||
Premises and equipment depreciation
|
22
|
|
|
20
|
|
||
Occupancy
|
13
|
|
|
11
|
|
||
Non-income taxes
|
9
|
|
|
8
|
|
||
Amortization of intangible assets
|
3
|
|
|
3
|
|
||
Other
|
44
|
|
|
47
|
|
||
Total other operating expenses
|
$
|
453
|
|
|
$
|
445
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
Amortized cost
|
|
Gross unrealized
|
|
Fair value
|
|
Amortized cost
|
|
Gross unrealized
|
|
Fair value
|
||||||||||||||||||||
($ in millions)
|
|
gains
|
|
losses
|
|
gains
|
|
losses
|
|
|||||||||||||||||||||||
Available-for-sale securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,990
|
|
|
$
|
1
|
|
|
$
|
(49
|
)
|
|
$
|
1,942
|
|
|
$
|
1,911
|
|
|
$
|
—
|
|
|
$
|
(60
|
)
|
|
$
|
1,851
|
|
U.S. States and political subdivisions
|
|
771
|
|
|
13
|
|
|
(3
|
)
|
|
781
|
|
|
816
|
|
|
3
|
|
|
(17
|
)
|
|
802
|
|
||||||||
Foreign government
|
|
170
|
|
|
2
|
|
|
—
|
|
|
172
|
|
|
145
|
|
|
1
|
|
|
(1
|
)
|
|
145
|
|
||||||||
Agency mortgage-backed residential
|
|
18,939
|
|
|
98
|
|
|
(193
|
)
|
|
18,844
|
|
|
17,486
|
|
|
47
|
|
|
(395
|
)
|
|
17,138
|
|
||||||||
Agency mortgage-backed commercial
|
|
316
|
|
|
4
|
|
|
—
|
|
|
320
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||||
Mortgage-backed residential
|
|
2,912
|
|
|
7
|
|
|
(33
|
)
|
|
2,886
|
|
|
2,796
|
|
|
1
|
|
|
(111
|
)
|
|
2,686
|
|
||||||||
Mortgage-backed commercial
|
|
725
|
|
|
—
|
|
|
(2
|
)
|
|
723
|
|
|
715
|
|
|
1
|
|
|
(2
|
)
|
|
714
|
|
||||||||
Asset-backed
|
|
665
|
|
|
4
|
|
|
(1
|
)
|
|
668
|
|
|
723
|
|
|
2
|
|
|
(2
|
)
|
|
723
|
|
||||||||
Corporate debt
|
|
1,301
|
|
|
7
|
|
|
(14
|
)
|
|
1,294
|
|
|
1,286
|
|
|
1
|
|
|
(46
|
)
|
|
1,241
|
|
||||||||
Total available-for-sale securities (a) (b) (c)
|
|
$
|
27,789
|
|
|
$
|
136
|
|
|
$
|
(295
|
)
|
|
$
|
27,630
|
|
|
$
|
25,881
|
|
|
$
|
56
|
|
|
$
|
(634
|
)
|
|
$
|
25,303
|
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency mortgage-backed residential (d)
|
|
$
|
2,351
|
|
|
$
|
15
|
|
|
$
|
(28
|
)
|
|
$
|
2,338
|
|
|
$
|
2,319
|
|
|
$
|
6
|
|
|
$
|
(61
|
)
|
|
$
|
2,264
|
|
Asset-backed retained notes
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
43
|
|
||||||||
Total held-to-maturity securities
|
|
$
|
2,387
|
|
|
$
|
15
|
|
|
$
|
(28
|
)
|
|
$
|
2,374
|
|
|
$
|
2,362
|
|
|
$
|
6
|
|
|
$
|
(61
|
)
|
|
$
|
2,307
|
|
(a)
|
Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled
$12 million
at both
March 31, 2019
, and
December 31, 2018
.
|
(b)
|
Certain available-for-sale securities are included in fair value hedging relationships. Refer to
Note 17
for additional information.
|
(c)
|
Available-for-sale securities with a fair value of
$4.1 billion
and
$9.2 billion
at
March 31, 2019
, and
December 31, 2018
, respectively, were pledged to secure advances from the Federal Home Loan Bank (FHLB), short-term borrowings or repurchase agreements, or for other purposes as required by contractual obligation or law. Under these agreements, we have granted the counterparty the right to sell or pledge
$985 million
and
$821 million
of the underlying investment securities at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(d)
|
Held-to-maturity securities with a fair value of
$1.3 billion
and
$1.2 billion
at
March 31, 2019
, and December 31, 2018, respectively, were pledged to secure advances from the FHLB.
|
|
|
Total
|
|
Due in one year or less
|
|
Due after one year through five years
|
|
Due after five years through ten years
|
|
Due after ten years
|
|||||||||||||||||||||||||
($ in millions)
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|
Amount
|
|
Yield
|
|||||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fair value of available-for-sale securities (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,942
|
|
|
1.7
|
%
|
|
$
|
28
|
|
|
1.7
|
%
|
|
$
|
1,341
|
|
|
1.6
|
%
|
|
$
|
573
|
|
|
1.9
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. States and political subdivisions
|
|
781
|
|
|
3.2
|
|
|
52
|
|
|
2.7
|
|
|
43
|
|
|
2.5
|
|
|
212
|
|
|
2.7
|
|
|
474
|
|
|
3.5
|
|
|||||
Foreign government
|
|
172
|
|
|
2.3
|
|
|
41
|
|
|
2.1
|
|
|
55
|
|
|
2.3
|
|
|
73
|
|
|
2.4
|
|
|
3
|
|
|
2.7
|
|
|||||
Agency mortgage-backed residential
|
|
18,844
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52
|
|
|
1.9
|
|
|
18,792
|
|
|
3.4
|
|
|||||
Agency mortgage-backed commercial
|
|
320
|
|
|
3.2
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3.1
|
|
|
83
|
|
|
3.3
|
|
|
234
|
|
|
3.2
|
|
|||||
Mortgage-backed residential
|
|
2,886
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,886
|
|
|
3.3
|
|
|||||
Mortgage-backed commercial
|
|
723
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
4.0
|
|
|
687
|
|
|
3.8
|
|
|||||
Asset-backed
|
|
668
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
390
|
|
|
3.4
|
|
|
165
|
|
|
4.0
|
|
|
113
|
|
|
3.3
|
|
|||||
Corporate debt
|
|
1,294
|
|
|
3.2
|
|
|
152
|
|
|
3.1
|
|
|
512
|
|
|
2.9
|
|
|
606
|
|
|
3.4
|
|
|
24
|
|
|
5.9
|
|
|||||
Total available-for-sale securities
|
|
$
|
27,630
|
|
|
3.3
|
|
|
$
|
273
|
|
|
2.7
|
|
|
$
|
2,344
|
|
|
2.2
|
|
|
$
|
1,800
|
|
|
2.8
|
|
|
$
|
23,213
|
|
|
3.4
|
|
Amortized cost of available-for-sale securities
|
|
$
|
27,789
|
|
|
|
|
$
|
273
|
|
|
|
|
$
|
2,376
|
|
|
|
|
$
|
1,814
|
|
|
|
|
$
|
23,326
|
|
|
|
|||||
Amortized cost of held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Agency mortgage-backed residential
|
|
$
|
2,351
|
|
|
3.2
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
2,351
|
|
|
3.2
|
%
|
Asset-backed retained notes
|
|
36
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total held-to-maturity securities
|
|
$
|
2,387
|
|
|
3.2
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
36
|
|
|
2.1
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
2,351
|
|
|
3.2
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Fair value of available-for-sale securities (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. Treasury and federal agencies
|
|
$
|
1,851
|
|
|
1.9
|
%
|
|
$
|
12
|
|
|
1.0
|
%
|
|
$
|
1,277
|
|
|
1.8
|
%
|
|
$
|
562
|
|
|
2.0
|
%
|
|
$
|
—
|
|
|
—
|
%
|
U.S. States and political subdivisions
|
|
802
|
|
|
3.0
|
|
|
49
|
|
|
1.9
|
|
|
43
|
|
|
2.3
|
|
|
252
|
|
|
2.6
|
|
|
458
|
|
|
3.4
|
|
|||||
Foreign government
|
|
145
|
|
|
2.4
|
|
|
18
|
|
|
3.1
|
|
|
60
|
|
|
2.3
|
|
|
67
|
|
|
2.4
|
|
|
—
|
|
|
—
|
|
|||||
Agency mortgage-backed residential
|
|
17,138
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
|
1.9
|
|
|
17,084
|
|
|
3.3
|
|
|||||
Agency mortgage-backed commercial
|
|
3
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Mortgage-backed residential
|
|
2,686
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,686
|
|
|
3.3
|
|
|||||
Mortgage-backed commercial
|
|
714
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
|
3.9
|
|
|
668
|
|
|
3.8
|
|
|||||
Asset-backed
|
|
723
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
478
|
|
|
3.4
|
|
|
121
|
|
|
4.0
|
|
|
124
|
|
|
3.3
|
|
|||||
Corporate debt
|
|
1,241
|
|
|
3.1
|
|
|
144
|
|
|
2.8
|
|
|
496
|
|
|
2.9
|
|
|
581
|
|
|
3.3
|
|
|
20
|
|
|
5.5
|
|
|||||
Total available-for-sale securities
|
|
$
|
25,303
|
|
|
3.2
|
|
|
$
|
223
|
|
|
2.6
|
|
|
$
|
2,357
|
|
|
2.4
|
|
|
$
|
1,683
|
|
|
2.8
|
|
|
$
|
21,040
|
|
|
3.3
|
|
Amortized cost of available-for-sale securities
|
|
$
|
25,881
|
|
|
|
|
|
$
|
224
|
|
|
|
|
|
$
|
2,405
|
|
|
|
|
|
$
|
1,743
|
|
|
|
|
|
$
|
21,509
|
|
|
|
|
Amortized cost of held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Agency mortgage-backed residential
|
|
$
|
2,319
|
|
|
3.2
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
2,319
|
|
|
3.2
|
%
|
Asset-backed retained notes
|
|
43
|
|
|
2.0
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
2.0
|
|
|
1
|
|
|
3.3
|
|
|
—
|
|
|
—
|
|
|||||
Total held-to-maturity securities
|
|
$
|
2,362
|
|
|
3.2
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
42
|
|
|
2.0
|
|
|
$
|
1
|
|
|
3.3
|
|
|
$
|
2,319
|
|
|
3.2
|
|
(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.
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Taxable interest
|
$
|
214
|
|
|
$
|
154
|
|
Taxable dividends
|
3
|
|
|
3
|
|
||
Interest and dividends exempt from U.S. federal income tax
|
5
|
|
|
6
|
|
||
Interest and dividends on investment securities
|
$
|
222
|
|
|
$
|
163
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Available-for-sale securities
|
|
|
|
||||
Gross realized gains
|
$
|
10
|
|
|
$
|
6
|
|
Gross realized losses (a)
|
(1
|
)
|
|
—
|
|
||
Net realized gains on available-for-sale securities
|
9
|
|
|
6
|
|
||
Net realized gain on equity securities
|
29
|
|
|
22
|
|
||
Net unrealized gain (loss) on equity securities
|
70
|
|
|
(40
|
)
|
||
Other gain (loss) on investments, net
|
$
|
108
|
|
|
$
|
(12
|
)
|
(a)
|
Certain available-for-sale securities were sold at a loss during the
three months ended
March 31, 2019
, as a result of market conditions within these periods (e.g., a downgrade in the rating of a debt security) or based on corporate actions outside of our control (such as a call by the issuer). Any such sales were made in accordance with our risk-management policies and practices.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 months or longer
|
|
Less than 12 months
|
|
12 months or longer
|
||||||||||||||||||||||||
($ 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
|
|
$
|
42
|
|
|
$
|
—
|
|
|
$
|
1,749
|
|
|
$
|
(49
|
)
|
|
$
|
31
|
|
|
$
|
—
|
|
|
$
|
1,758
|
|
|
$
|
(60
|
)
|
U.S. States and political subdivisions
|
|
23
|
|
|
—
|
|
|
189
|
|
|
(3
|
)
|
|
259
|
|
|
(3
|
)
|
|
317
|
|
|
(14
|
)
|
||||||||
Foreign government
|
|
4
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
74
|
|
|
(1
|
)
|
||||||||
Agency mortgage-backed residential
|
|
510
|
|
|
(1
|
)
|
|
11,145
|
|
|
(192
|
)
|
|
5,537
|
|
|
(94
|
)
|
|
7,808
|
|
|
(301
|
)
|
||||||||
Agency mortgage-backed commercial
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage-backed residential
|
|
131
|
|
|
—
|
|
|
1,676
|
|
|
(33
|
)
|
|
1,024
|
|
|
(20
|
)
|
|
1,360
|
|
|
(91
|
)
|
||||||||
Mortgage-backed commercial
|
|
517
|
|
|
(2
|
)
|
|
41
|
|
|
—
|
|
|
347
|
|
|
(1
|
)
|
|
36
|
|
|
(1
|
)
|
||||||||
Asset-backed
|
|
6
|
|
|
—
|
|
|
214
|
|
|
(1
|
)
|
|
294
|
|
|
(1
|
)
|
|
124
|
|
|
(1
|
)
|
||||||||
Corporate debt
|
|
105
|
|
|
—
|
|
|
764
|
|
|
(14
|
)
|
|
576
|
|
|
(19
|
)
|
|
569
|
|
|
(27
|
)
|
||||||||
Total temporarily impaired available-for-sale securities
|
|
$
|
1,368
|
|
|
$
|
(3
|
)
|
|
$
|
15,800
|
|
|
$
|
(292
|
)
|
|
$
|
8,074
|
|
|
$
|
(138
|
)
|
|
$
|
12,046
|
|
|
$
|
(496
|
)
|
Held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Agency mortgage-backed residential
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
1,376
|
|
|
$
|
(28
|
)
|
|
$
|
457
|
|
|
$
|
(6
|
)
|
|
$
|
1,376
|
|
|
$
|
(55
|
)
|
Asset-backed retained notes
|
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||||||
Total held-to-maturity debt securities
|
|
$
|
86
|
|
|
$
|
—
|
|
|
$
|
1,392
|
|
|
$
|
(28
|
)
|
|
$
|
473
|
|
|
$
|
(6
|
)
|
|
$
|
1,395
|
|
|
$
|
(55
|
)
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer automotive (a)
|
|
$
|
71,553
|
|
|
$
|
70,539
|
|
Consumer mortgage
|
|
|
|
|
||||
Mortgage Finance (b)
|
|
16,225
|
|
|
15,155
|
|
||
Mortgage — Legacy (c)
|
|
1,433
|
|
|
1,546
|
|
||
Total consumer mortgage
|
|
17,658
|
|
|
16,701
|
|
||
Total consumer
|
|
89,211
|
|
|
87,240
|
|
||
Commercial
|
|
|
|
|
||||
Commercial and industrial
|
|
|
|
|
||||
Automotive
|
|
31,559
|
|
|
33,672
|
|
||
Other
|
|
4,516
|
|
|
4,205
|
|
||
Commercial real estate
|
|
4,769
|
|
|
4,809
|
|
||
Total commercial
|
|
40,844
|
|
|
42,686
|
|
||
Total finance receivables and loans (d)
|
|
$
|
130,055
|
|
|
$
|
129,926
|
|
(a)
|
Certain finance receivables and loans are included in fair value hedging relationships. Refer to
Note 17
for additional information.
|
(b)
|
Includes loans originated as interest-only mortgage loans of
$17 million
and
$18 million
at
March 31, 2019
, and
December 31, 2018
, respectively,
33%
of which are expected to start principal amortization in 2019, and
40%
in
2020
. The remainder of these loans have exited the interest-only period.
|
(c)
|
Includes loans originated as interest-only mortgage loans of
$305 million
and
$341 million
at
March 31, 2019
, and
December 31, 2018
, respectively, of which
99%
have exited the interest-only period.
|
(d)
|
Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of
$584 million
and
$587 million
at
March 31, 2019
, and
December 31, 2018
, respectively.
|
Three months ended March 31, 2019
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Commercial
|
|
Total
|
||||||||
Allowance at January 1, 2019
|
|
$
|
1,048
|
|
|
$
|
53
|
|
|
$
|
141
|
|
|
$
|
1,242
|
|
Charge-offs (a)
|
|
(352
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(360
|
)
|
||||
Recoveries
|
|
118
|
|
|
5
|
|
|
—
|
|
|
123
|
|
||||
Net charge-offs
|
|
(234
|
)
|
|
2
|
|
|
(5
|
)
|
|
(237
|
)
|
||||
Provision for loan losses
|
|
257
|
|
|
(3
|
)
|
|
28
|
|
|
282
|
|
||||
Other (b)
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
|
1
|
|
||||
Allowance at March 31, 2019
|
|
$
|
1,070
|
|
|
$
|
52
|
|
|
$
|
166
|
|
|
$
|
1,288
|
|
Allowance for loan losses at March 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
46
|
|
|
$
|
22
|
|
|
$
|
58
|
|
|
$
|
126
|
|
Collectively evaluated for impairment
|
|
1,024
|
|
|
30
|
|
|
108
|
|
|
1,162
|
|
||||
Finance receivables and loans at gross carrying value
|
|
|
|
|
|
|
|
|
||||||||
Ending balance
|
|
$
|
71,553
|
|
|
$
|
17,658
|
|
|
$
|
40,844
|
|
|
$
|
130,055
|
|
Individually evaluated for impairment
|
|
501
|
|
|
227
|
|
|
269
|
|
|
997
|
|
||||
Collectively evaluated for impairment
|
|
71,052
|
|
|
17,431
|
|
|
40,575
|
|
|
129,058
|
|
(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 in our 2018 Annual Report on Form 10-K for more information regarding our charge-off policies.
|
(b)
|
Primarily related to the transfer of finance receivables and loans from held-for-sale to held-for-investment.
|
Three months ended March 31, 2018
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Commercial
|
|
Total
|
||||||||
Allowance at January 1, 2018
|
|
$
|
1,066
|
|
|
$
|
79
|
|
|
$
|
131
|
|
|
$
|
1,276
|
|
Charge-offs (a)
|
|
(365
|
)
|
|
(12
|
)
|
|
—
|
|
|
(377
|
)
|
||||
Recoveries
|
|
112
|
|
|
6
|
|
|
—
|
|
|
118
|
|
||||
Net charge-offs
|
|
(253
|
)
|
|
(6
|
)
|
|
—
|
|
|
(259
|
)
|
||||
Provision for loan losses
|
|
253
|
|
|
1
|
|
|
7
|
|
|
261
|
|
||||
Allowance at March 31, 2018
|
|
$
|
1,066
|
|
|
$
|
74
|
|
|
$
|
138
|
|
|
$
|
1,278
|
|
Allowance for loan losses at March 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Individually evaluated for impairment
|
|
$
|
40
|
|
|
$
|
27
|
|
|
$
|
21
|
|
|
$
|
88
|
|
Collectively evaluated for impairment
|
|
1,026
|
|
|
47
|
|
|
117
|
|
|
1,190
|
|
||||
Finance receivables and loans at gross carrying value
|
|
|
|
|
|
|
|
|
|
|||||||
Ending balance
|
|
$
|
69,318
|
|
|
$
|
14,683
|
|
|
$
|
41,326
|
|
|
$
|
125,327
|
|
Individually evaluated for impairment
|
|
463
|
|
|
230
|
|
|
147
|
|
|
840
|
|
||||
Collectively evaluated for impairment
|
|
68,855
|
|
|
14,453
|
|
|
41,179
|
|
|
124,487
|
|
(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 in our 2018 Annual Report on Form 10-K for more information regarding our charge-off policies.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Consumer automotive
|
|
$
|
20
|
|
|
$
|
—
|
|
Consumer mortgage
|
|
—
|
|
|
1
|
|
||
Total sales and transfers (a)
|
|
$
|
20
|
|
|
$
|
1
|
|
(a)
|
During the three months ended
March 31, 2019
, we also sold
$128 million
of finance receivables that were classified as held-for-sale and transferred
$63 million
of finance receivables from held-for-sale to held-for-investment as of
March 31, 2019
, both relating to equipment finance receivables from our commercial automotive business.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Consumer automotive
|
|
$
|
99
|
|
|
$
|
168
|
|
Consumer mortgage
|
|
1,235
|
|
|
1,295
|
|
||
Total purchases of finance receivables and loans
|
|
$
|
1,334
|
|
|
$
|
1,463
|
|
($ 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
|
||||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
$
|
1,575
|
|
|
$
|
379
|
|
|
$
|
260
|
|
|
$
|
2,214
|
|
|
$
|
69,339
|
|
|
$
|
71,553
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
52
|
|
|
8
|
|
|
9
|
|
|
69
|
|
|
16,156
|
|
|
16,225
|
|
||||||
Mortgage — Legacy
|
|
31
|
|
|
11
|
|
|
36
|
|
|
78
|
|
|
1,355
|
|
|
1,433
|
|
||||||
Total consumer mortgage
|
|
83
|
|
|
19
|
|
|
45
|
|
|
147
|
|
|
17,511
|
|
|
17,658
|
|
||||||
Total consumer
|
|
1,658
|
|
|
398
|
|
|
305
|
|
|
2,361
|
|
|
86,850
|
|
|
89,211
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
1
|
|
|
8
|
|
|
78
|
|
|
87
|
|
|
31,472
|
|
|
31,559
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
4,514
|
|
|
4,516
|
|
||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
4,767
|
|
|
4,769
|
|
||||||
Total commercial
|
|
1
|
|
|
8
|
|
|
82
|
|
|
91
|
|
|
40,753
|
|
|
40,844
|
|
||||||
Total consumer and commercial
|
|
$
|
1,659
|
|
|
$
|
406
|
|
|
$
|
387
|
|
|
$
|
2,452
|
|
|
$
|
127,603
|
|
|
$
|
130,055
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consumer automotive
|
|
$
|
2,107
|
|
|
$
|
537
|
|
|
$
|
296
|
|
|
$
|
2,940
|
|
|
$
|
67,599
|
|
|
$
|
70,539
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
67
|
|
|
5
|
|
|
4
|
|
|
76
|
|
|
15,079
|
|
|
15,155
|
|
||||||
Mortgage — Legacy
|
|
30
|
|
|
10
|
|
|
42
|
|
|
82
|
|
|
1,464
|
|
|
1,546
|
|
||||||
Total consumer mortgage
|
|
97
|
|
|
15
|
|
|
46
|
|
|
158
|
|
|
16,543
|
|
|
16,701
|
|
||||||
Total consumer
|
|
2,204
|
|
|
552
|
|
|
342
|
|
|
3,098
|
|
|
84,142
|
|
|
87,240
|
|
||||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
—
|
|
|
1
|
|
|
31
|
|
|
32
|
|
|
33,640
|
|
|
33,672
|
|
||||||
Other
|
|
—
|
|
|
4
|
|
|
16
|
|
|
20
|
|
|
4,185
|
|
|
4,205
|
|
||||||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
4,808
|
|
|
4,809
|
|
||||||
Total commercial
|
|
—
|
|
|
5
|
|
|
48
|
|
|
53
|
|
|
42,633
|
|
|
42,686
|
|
||||||
Total consumer and commercial
|
|
$
|
2,204
|
|
|
$
|
557
|
|
|
$
|
390
|
|
|
$
|
3,151
|
|
|
$
|
126,775
|
|
|
$
|
129,926
|
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Consumer automotive
|
|
$
|
643
|
|
|
$
|
664
|
|
Consumer mortgage
|
|
|
|
|
||||
Mortgage Finance
|
|
13
|
|
|
9
|
|
||
Mortgage — Legacy
|
|
62
|
|
|
70
|
|
||
Total consumer mortgage
|
|
75
|
|
|
79
|
|
||
Total consumer
|
|
718
|
|
|
743
|
|
||
Commercial
|
|
|
|
|
||||
Commercial and industrial
|
|
|
|
|
||||
Automotive
|
|
138
|
|
|
203
|
|
||
Other
|
|
125
|
|
|
142
|
|
||
Commercial real estate
|
|
6
|
|
|
4
|
|
||
Total commercial
|
|
269
|
|
|
349
|
|
||
Total consumer and commercial finance receivables and loans
|
|
$
|
987
|
|
|
$
|
1,092
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in millions)
|
|
Performing
|
|
Nonperforming
|
|
Total
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||||||||
Consumer automotive
|
|
$
|
70,910
|
|
|
$
|
643
|
|
|
$
|
71,553
|
|
|
$
|
69,875
|
|
|
$
|
664
|
|
|
$
|
70,539
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
16,212
|
|
|
13
|
|
|
16,225
|
|
|
15,146
|
|
|
9
|
|
|
15,155
|
|
||||||
Mortgage — Legacy
|
|
1,371
|
|
|
62
|
|
|
1,433
|
|
|
1,476
|
|
|
70
|
|
|
1,546
|
|
||||||
Total consumer mortgage
|
|
17,583
|
|
|
75
|
|
|
17,658
|
|
|
16,622
|
|
|
79
|
|
|
16,701
|
|
||||||
Total consumer
|
|
$
|
88,493
|
|
|
$
|
718
|
|
|
$
|
89,211
|
|
|
$
|
86,497
|
|
|
$
|
743
|
|
|
$
|
87,240
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in millions)
|
|
Pass
|
|
Criticized (a)
|
|
Total
|
|
Pass
|
|
Criticized (a)
|
|
Total
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
$
|
28,774
|
|
|
$
|
2,785
|
|
|
$
|
31,559
|
|
|
$
|
30,799
|
|
|
$
|
2,873
|
|
|
$
|
33,672
|
|
Other
|
|
3,711
|
|
|
805
|
|
|
4,516
|
|
|
3,373
|
|
|
832
|
|
|
4,205
|
|
||||||
Commercial real estate
|
|
4,526
|
|
|
243
|
|
|
4,769
|
|
|
4,538
|
|
|
271
|
|
|
4,809
|
|
||||||
Total commercial
|
|
$
|
37,011
|
|
|
$
|
3,833
|
|
|
$
|
40,844
|
|
|
$
|
38,710
|
|
|
$
|
3,976
|
|
|
$
|
42,686
|
|
(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.
|
($ in millions)
|
|
Unpaid principal balance (a)
|
|
Gross carrying value
|
|
Impaired with no allowance
|
|
Impaired with an allowance
|
|
Allowance for impaired loans
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
|
$
|
509
|
|
|
$
|
501
|
|
|
$
|
99
|
|
|
$
|
402
|
|
|
$
|
46
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
|
15
|
|
|
15
|
|
|
6
|
|
|
9
|
|
|
1
|
|
|||||
Mortgage — Legacy
|
|
216
|
|
|
212
|
|
|
65
|
|
|
147
|
|
|
21
|
|
|||||
Total consumer mortgage
|
|
231
|
|
|
227
|
|
|
71
|
|
|
156
|
|
|
22
|
|
|||||
Total consumer
|
|
740
|
|
|
728
|
|
|
170
|
|
|
558
|
|
|
68
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
138
|
|
|
138
|
|
|
41
|
|
|
97
|
|
|
18
|
|
|||||
Other
|
|
144
|
|
|
125
|
|
|
56
|
|
|
69
|
|
|
40
|
|
|||||
Commercial real estate
|
|
6
|
|
|
6
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|||||
Total commercial
|
|
288
|
|
|
269
|
|
|
100
|
|
|
169
|
|
|
58
|
|
|||||
Total consumer and commercial finance receivables and loans
|
|
$
|
1,028
|
|
|
$
|
997
|
|
|
$
|
270
|
|
|
$
|
727
|
|
|
$
|
126
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consumer automotive
|
|
$
|
503
|
|
|
$
|
495
|
|
|
$
|
105
|
|
|
$
|
390
|
|
|
$
|
44
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
|
15
|
|
|
15
|
|
|
6
|
|
|
9
|
|
|
1
|
|
|||||
Mortgage — Legacy
|
|
221
|
|
|
216
|
|
|
65
|
|
|
151
|
|
|
22
|
|
|||||
Total consumer mortgage
|
|
236
|
|
|
231
|
|
|
71
|
|
|
160
|
|
|
23
|
|
|||||
Total consumer
|
|
739
|
|
|
726
|
|
|
176
|
|
|
550
|
|
|
67
|
|
|||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
203
|
|
|
203
|
|
|
112
|
|
|
91
|
|
|
10
|
|
|||||
Other
|
|
159
|
|
|
142
|
|
|
40
|
|
|
102
|
|
|
46
|
|
|||||
Commercial real estate
|
|
4
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|||||
Total commercial
|
|
366
|
|
|
349
|
|
|
156
|
|
|
193
|
|
|
56
|
|
|||||
Total consumer and commercial finance receivables and loans
|
|
$
|
1,105
|
|
|
$
|
1,075
|
|
|
$
|
332
|
|
|
$
|
743
|
|
|
$
|
123
|
|
(a)
|
Adjusted for charge-offs.
|
|
|
2019
|
|
2018
|
||||||||||||
Three months ended March 31,
($ in millions)
|
|
Average balance
|
|
Interest income
|
|
Average balance
|
|
Interest income
|
||||||||
Consumer automotive
|
|
$
|
499
|
|
|
$
|
8
|
|
|
$
|
444
|
|
|
$
|
7
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
||||||||
Mortgage Finance
|
|
15
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||
Mortgage — Legacy
|
|
214
|
|
|
3
|
|
|
221
|
|
|
2
|
|
||||
Total consumer mortgage
|
|
229
|
|
|
3
|
|
|
230
|
|
|
2
|
|
||||
Total consumer
|
|
728
|
|
|
11
|
|
|
674
|
|
|
9
|
|
||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
||||||||
Automotive
|
|
170
|
|
|
1
|
|
|
47
|
|
|
1
|
|
||||
Other
|
|
130
|
|
|
—
|
|
|
52
|
|
|
—
|
|
||||
Commercial real estate
|
|
5
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Total commercial
|
|
305
|
|
|
1
|
|
|
102
|
|
|
1
|
|
||||
Total consumer and commercial finance receivables and loans
|
|
$
|
1,033
|
|
|
$
|
12
|
|
|
$
|
776
|
|
|
$
|
10
|
|
|
2019
|
|
2018
|
||||||||||||||||||
Three months ended March 31,
($ in millions)
|
Number of loans
|
|
Pre-modification gross carrying value
|
|
Post-modification gross carrying value
|
|
Number of loans
|
|
Pre-modification gross carrying value
|
|
Post-modification gross carrying value
|
||||||||||
Consumer automotive
|
7,427
|
|
|
$
|
129
|
|
|
$
|
111
|
|
|
7,042
|
|
|
$
|
128
|
|
|
$
|
110
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage Finance
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Mortgage — Legacy
|
20
|
|
|
3
|
|
|
3
|
|
|
62
|
|
|
10
|
|
|
9
|
|
||||
Total consumer mortgage
|
21
|
|
|
3
|
|
|
3
|
|
|
63
|
|
|
11
|
|
|
10
|
|
||||
Total consumer finance receivables and loans
|
7,448
|
|
|
132
|
|
|
114
|
|
|
7,105
|
|
|
139
|
|
|
120
|
|
||||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and Industrial
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
6
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total commercial
|
6
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total consumer and commercial finance receivables and loans
|
7,454
|
|
|
$
|
173
|
|
|
$
|
155
|
|
|
7,105
|
|
|
$
|
139
|
|
|
$
|
120
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||
Three months ended March 31,
($ in millions)
|
|
Number of loans
|
|
Gross carrying value
|
|
Charge-off amount
|
|
Number of loans
|
|
Gross carrying value
|
|
Charge-off amount
|
||||||||||
Consumer automotive
|
|
2,209
|
|
|
$
|
26
|
|
|
$
|
16
|
|
|
2,326
|
|
|
$
|
28
|
|
|
$
|
18
|
|
Total consumer finance receivables and loans
|
|
2,209
|
|
|
$
|
26
|
|
|
$
|
16
|
|
|
2,326
|
|
|
$
|
28
|
|
|
$
|
18
|
|
(a)
|
Date of adoption.
|
(b)
|
Included in other assets on our
Condensed Consolidated Balance Sheet
.
|
(c)
|
Included in accrued expenses and other liabilities on our
Condensed Consolidated Balance Sheet
.
|
($ in millions)
|
|
|
||
2019
|
|
$
|
36
|
|
2020
|
|
46
|
|
|
2021
|
|
36
|
|
|
2022
|
|
24
|
|
|
2023
|
|
16
|
|
|
2024 and thereafter
|
|
71
|
|
|
Total undiscounted cash flows
|
|
229
|
|
|
Difference between undiscounted cash flows and discounted cash flows
|
|
(23
|
)
|
|
Total lease liability
|
|
$
|
206
|
|
Year ended December 31,
($ in millions)
|
|
|
||
2019
|
|
$
|
48
|
|
2020
|
|
47
|
|
|
2021
|
|
46
|
|
|
2022
|
|
37
|
|
|
2023
|
|
31
|
|
|
2024 and thereafter
|
|
294
|
|
|
Total minimum payments required
|
|
$
|
503
|
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Operating lease expense
|
|
$
|
11
|
|
|
$
|
10
|
|
Variable lease expense
|
|
2
|
|
|
2
|
|
||
Total lease expense, net (a)
|
|
$
|
13
|
|
|
$
|
12
|
|
(a)
|
Included in other operating expenses in our
Condensed Consolidated Statement of Comprehensive Income
.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Vehicles
|
|
$
|
9,903
|
|
|
$
|
9,995
|
|
Accumulated depreciation
|
|
(1,564
|
)
|
|
(1,578
|
)
|
||
Investment in operating leases, net
|
|
$
|
8,339
|
|
|
$
|
8,417
|
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Depreciation expense on operating lease assets (excluding remarketing gains)
|
|
$
|
261
|
|
|
$
|
291
|
|
Remarketing gains, net
|
|
(15
|
)
|
|
(18
|
)
|
||
Net depreciation expense on operating lease assets
|
|
$
|
246
|
|
|
$
|
273
|
|
($ in millions)
|
|
Carrying value of total assets
|
Carrying value of total liabilities
|
Assets sold to nonconsolidated VIEs (a)
|
|
Maximum exposure to loss in nonconsolidated VIEs
|
|||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||
On-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
$
|
16,226
|
|
(b)
|
$
|
6,480
|
|
(c)
|
|
|
|
|
||||
Commercial automotive
|
|
9,620
|
|
|
3,297
|
|
|
|
|
|
|
||||||
Off-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
38
|
|
(d)
|
—
|
|
|
$
|
957
|
|
|
$
|
995
|
|
(e)
|
||
Commercial other
|
|
867
|
|
(f)
|
343
|
|
(g)
|
—
|
|
|
1,115
|
|
(h)
|
||||
Total
|
|
$
|
26,751
|
|
|
$
|
10,120
|
|
|
$
|
957
|
|
|
$
|
2,110
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||
On-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
$
|
16,255
|
|
(b)
|
$
|
6,573
|
|
(c)
|
|
|
|
|
||||
Commercial automotive
|
|
11,089
|
|
|
3,946
|
|
|
|
|
|
|
||||||
Off-balance sheet variable interest entities
|
|
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
|
45
|
|
(d)
|
—
|
|
|
$
|
1,235
|
|
|
$
|
1,280
|
|
(e)
|
||
Commercial other
|
|
806
|
|
(f)
|
326
|
|
(g)
|
—
|
|
|
1,054
|
|
(h)
|
||||
Total
|
|
$
|
28,195
|
|
|
$
|
10,845
|
|
|
$
|
1,235
|
|
|
$
|
2,334
|
|
|
(a)
|
Asset values represent the current unpaid principal balance of outstanding consumer finance receivables and loans within the VIEs.
|
(b)
|
Includes
$8.4 billion
of assets that were not encumbered by VIE beneficial interests held by third parties at both
March 31, 2019
, and
December 31, 2018
. Ally or consolidated affiliates hold the interests in these assets.
|
(c)
|
Includes
$24 million
and
$25 million
of liabilities that were not obligations to third-party beneficial interest holders at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(d)
|
Represents retained notes and certificated residual interests, of which
$36 million
and
$43 million
were classified as held-to-maturity securities at
March 31, 2019
, and
December 31, 2018
, respectively, and
$2 million
were classified as other assets at both
March 31, 2019
, and
December 31, 2018
. These assets represent our five percent interest in the credit risk of the assets underlying asset-backed securitizations.
|
(e)
|
Maximum exposure to loss represents the current unpaid principal balance of outstanding loans, retained notes, certificated residual interests, as well as certain noncertificated interests retained from the sale of automotive finance receivables. This measure is based on the very unlikely event that all of our sold loans have defects that would trigger a representation and warranty provision and the underlying collateral supporting the loans becomes worthless. This required disclosure is not an indication of our expected loss.
|
(f)
|
Amounts are classified as other assets.
|
(g)
|
Amounts are classified as accrued expenses and other liabilities.
|
(h)
|
For certain nonconsolidated affordable housing entities, maximum exposure to loss represents the yield we guaranteed investors through long-term guarantee contracts. The amount disclosed is based on the unlikely event that the underlying properties cease generating yield to investors and the yield delivered to investors in the form of low income tax housing credits is recaptured. For nonconsolidated equity investments, maximum exposure to loss represents our outstanding investment, additional committed capital, and low income housing tax credits subject to recapture. The amount disclosed is based on the unlikely event that our committed capital is funded, our investments become worthless, and the tax credits previously delivered to us are recaptured. This required disclosure is not an indication of our expected loss.
|
Three months ended March 31,
($ in millions)
|
|
Consumer automotive
|
||
2019
|
|
|
||
Cash flows received on retained interests in securitization entities
|
|
$
|
7
|
|
Servicing fees
|
|
3
|
|
|
Cash disbursements for repurchases during the period
|
|
(1
|
)
|
|
2018
|
|
|
||
Cash flows received on retained interests in securitization entities
|
|
$
|
5
|
|
Servicing fees
|
|
5
|
|
|
Cash disbursements for repurchases during the period
|
|
(1
|
)
|
|
Total amount
|
|
Amount 60 days or more past due
|
||||||||||||
($ in millions)
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
Off-balance sheet securitization entities
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
$
|
957
|
|
|
$
|
1,235
|
|
|
$
|
8
|
|
|
$
|
13
|
|
Whole-loan sales (a)
|
|
|
|
|
|
|
|
||||||||
Consumer automotive
|
503
|
|
|
634
|
|
|
2
|
|
|
3
|
|
||||
Total
|
$
|
1,460
|
|
|
$
|
1,869
|
|
|
$
|
10
|
|
|
$
|
16
|
|
(a)
|
Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.
|
|
Net credit losses
|
||||||
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Off-balance sheet securitization entities
|
|
|
|
||||
Consumer automotive
|
$
|
2
|
|
|
$
|
3
|
|
Whole-loan sales (a)
|
|
|
|
||||
Consumer automotive
|
—
|
|
|
1
|
|
||
Total
|
$
|
2
|
|
|
$
|
4
|
|
(a)
|
Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Property and equipment at cost
|
|
$
|
1,286
|
|
|
$
|
1,250
|
|
Accumulated depreciation
|
|
(708
|
)
|
|
(686
|
)
|
||
Net property and equipment
|
|
578
|
|
|
564
|
|
||
Nonmarketable equity investments (a)
|
|
1,240
|
|
|
1,410
|
|
||
Restricted cash held for securitization trusts (b)
|
|
838
|
|
|
965
|
|
||
Investment in qualified affordable housing projects (c)
|
|
687
|
|
|
649
|
|
||
Accrued interest, fees, and rent receivables
|
|
624
|
|
|
599
|
|
||
Equity-method investments (d)
|
|
289
|
|
|
262
|
|
||
Other accounts receivable
|
|
269
|
|
|
203
|
|
||
Goodwill (e)
|
|
240
|
|
|
240
|
|
||
Net deferred tax assets
|
|
137
|
|
|
317
|
|
||
Restricted cash and cash equivalents (f)
|
|
109
|
|
|
124
|
|
||
Fair value of derivative contracts in receivable position (g)
|
|
22
|
|
|
41
|
|
||
Cash collateral placed with counterparties
|
|
20
|
|
|
26
|
|
||
Other assets
|
|
940
|
|
|
753
|
|
||
Total other assets
|
|
$
|
5,993
|
|
|
$
|
6,153
|
|
(a)
|
Includes investments in FHLB stock of
$732 million
and
$903 million
at
March 31, 2019
, and
December 31, 2018
, respectively; Federal Reserve Bank (FRB) stock of
$448 million
at both
March 31, 2019
, and
December 31, 2018
; and equity securities without a readily determinable fair value of
$60 million
and
$59 million
at
March 31, 2019
, and
December 31, 2018
, respectively, measured at cost with adjustments for impairment and observable changes in price. Through
March 31, 2019
, we recorded
$3 million
of cumulative impairments and downward adjustments related to equity securities without a readily determinable fair value.
|
(b)
|
Includes restricted cash collected from customer payments on securitized receivables, which are distributed by us to investors as payments on the related secured debt, and cash reserve deposits utilized as a form of credit enhancement for various securitization transactions.
|
(c)
|
Investment in qualified affordable housing projects are accounted for using the proportional amortization method of accounting and include
$336 million
and
$319 million
of unfunded commitments to provide additional capital contributions to investees at
March 31, 2019
, and
December 31, 2018
, respectively. Substantially all of the unfunded commitments at
March 31, 2019
, are expected to be paid out over the next five years.
|
(d)
|
Primarily relates to investments made in connection with our Community Reinvestment Act (CRA) program.
|
(e)
|
Includes goodwill of
$27 million
within our Insurance operations at both
March 31, 2019
, and
December 31, 2018
;
$193 million
within Corporate and Other at both
March 31, 2019
, and
December 31, 2018
; and
$20 million
within Automotive Finance operations at both
March 31, 2019
, and
December 31, 2018
. No changes to the carrying amount of goodwill were recorded during the
three months ended
March 31, 2019
.
|
(f)
|
Primarily represents a number of arrangements with third parties where certain restrictions are placed on balances we hold due to collateral agreements associated with operational processes with a third-party bank, or letter of credit arrangements and corresponding collateral requirements.
|
(g)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
($ in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
Noninterest-bearing deposits
|
$
|
141
|
|
|
$
|
142
|
|
Interest-bearing deposits
|
|
|
|
||||
Savings and money-market checking accounts
|
60,258
|
|
|
56,050
|
|
||
Certificates of deposit
|
52,899
|
|
|
49,985
|
|
||
Other deposits
|
1
|
|
|
1
|
|
||
Total deposit liabilities
|
$
|
113,299
|
|
|
$
|
106,178
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in millions)
|
|
Unsecured
|
|
Secured (a)
|
|
Total
|
|
Unsecured
|
|
Secured (a)
|
|
Total
|
||||||||||||
Demand notes
|
|
$
|
2,486
|
|
|
$
|
—
|
|
|
$
|
2,486
|
|
|
$
|
2,477
|
|
|
$
|
—
|
|
|
$
|
2,477
|
|
Federal Home Loan Bank
|
|
—
|
|
|
2,775
|
|
|
2,775
|
|
|
—
|
|
|
6,825
|
|
|
6,825
|
|
||||||
Securities sold under agreements to repurchase
|
|
—
|
|
|
854
|
|
|
854
|
|
|
—
|
|
|
685
|
|
|
685
|
|
||||||
Total short-term borrowings
|
|
$
|
2,486
|
|
|
$
|
3,629
|
|
|
$
|
6,115
|
|
|
$
|
2,477
|
|
|
$
|
7,510
|
|
|
$
|
9,987
|
|
(a)
|
Refer to the section below titled
Long-term Debt
for further details on assets restricted as collateral for payment of the related debt.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
($ in millions)
|
|
Unsecured
|
|
Secured
|
|
Total
|
|
Unsecured
|
|
Secured
|
|
Total
|
||||||||||||
Long-term debt (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Due within one year
|
|
$
|
2,630
|
|
|
$
|
6,948
|
|
|
$
|
9,578
|
|
|
$
|
1,663
|
|
|
$
|
7,313
|
|
|
$
|
8,976
|
|
Due after one year
|
|
8,708
|
|
|
23,204
|
|
|
31,912
|
|
|
10,444
|
|
|
24,773
|
|
|
35,217
|
|
||||||
Total long-term debt (b) (c)
|
|
$
|
11,338
|
|
|
$
|
30,152
|
|
|
$
|
41,490
|
|
|
$
|
12,107
|
|
|
$
|
32,086
|
|
|
$
|
44,193
|
|
(a)
|
Includes basis adjustments related to the application of hedge accounting. Refer to
Note 17
for additional information.
|
(b)
|
Includes
$2.6 billion
of trust preferred securities at both
March 31, 2019
, and
December 31, 2018
.
|
(c)
|
Includes advances net of hedge basis adjustment from the FHLB of Pittsburgh of
$14.7 billion
and
$14.9 billion
at
March 31, 2019
, and
December 31, 2018
, respectively.
|
($ in millions)
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and thereafter
|
|
Total
|
||||||||||||||
Unsecured
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Long-term debt
|
|
$
|
917
|
|
|
$
|
2,258
|
|
|
$
|
697
|
|
|
$
|
1,075
|
|
|
$
|
12
|
|
|
$
|
7,504
|
|
|
$
|
12,463
|
|
Original issue discount
|
|
(31
|
)
|
|
(41
|
)
|
|
(45
|
)
|
|
(49
|
)
|
|
(56
|
)
|
|
(903
|
)
|
|
(1,125
|
)
|
|||||||
Total unsecured
|
|
886
|
|
|
2,217
|
|
|
652
|
|
|
1,026
|
|
|
(44
|
)
|
|
6,601
|
|
|
11,338
|
|
|||||||
Secured
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Long-term debt
|
|
4,998
|
|
|
6,909
|
|
|
10,185
|
|
|
6,008
|
|
|
1,236
|
|
|
816
|
|
|
30,152
|
|
|||||||
Total long-term debt
|
|
$
|
5,884
|
|
|
$
|
9,126
|
|
|
$
|
10,837
|
|
|
$
|
7,034
|
|
|
$
|
1,192
|
|
|
$
|
7,417
|
|
|
$
|
41,490
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
($ in millions)
|
|
Total (a)
|
|
Ally Bank
|
|
Total (a)
|
|
Ally Bank
|
||||||||
Investment securities (b)
|
|
$
|
5,243
|
|
|
$
|
4,357
|
|
|
$
|
10,280
|
|
|
$
|
9,564
|
|
Mortgage assets held-for-investment and lending receivables
|
|
17,447
|
|
|
17,447
|
|
|
16,498
|
|
|
16,498
|
|
||||
Consumer automotive finance receivables
|
|
15,882
|
|
|
9,777
|
|
|
17,015
|
|
|
9,715
|
|
||||
Commercial automotive finance receivables
|
|
14,269
|
|
|
14,269
|
|
|
15,563
|
|
|
15,563
|
|
||||
Operating leases
|
|
132
|
|
|
—
|
|
|
170
|
|
|
—
|
|
||||
Total assets restricted as collateral (c) (d)
|
|
$
|
52,973
|
|
|
$
|
45,850
|
|
|
$
|
59,526
|
|
|
$
|
51,340
|
|
Secured debt
|
|
$
|
33,781
|
|
(e)
|
$
|
27,233
|
|
|
$
|
39,596
|
|
(e)
|
$
|
32,072
|
|
(a)
|
Ally Bank is a component of the total column.
|
(b)
|
A portion of the restricted investment securities at
March 31, 2019
, and
December 31, 2018
, were 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
$26.6 billion
and
$30.8 billion
at
March 31, 2019
, and
December 31, 2018
, respectively. These assets were composed primarily of consumer mortgage finance receivables and loans and investment securities. Ally Bank has access to the FRB Discount Window. Ally Bank had assets pledged and restricted as collateral to the FRB totaling
$2.4 billion
at both
March 31, 2019
, and
December 31, 2018
. These assets were composed of consumer automotive finance receivables and loans. 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
Condensed Consolidated Balance Sheet
. Refer to
Note 10
for additional information.
|
(e)
|
Includes
$3.6 billion
and
$7.5 billion
of short-term borrowings at
March 31, 2019
, and
December 31, 2018
, respectively.
|
|
|
Outstanding
|
|
Unused capacity (a)
|
|
Total capacity
|
||||||||||||||||||
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Bank funding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured
|
|
$
|
3,050
|
|
|
$
|
3,500
|
|
|
$
|
700
|
|
|
$
|
1,300
|
|
|
$
|
3,750
|
|
|
$
|
4,800
|
|
Parent funding
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Secured
|
|
2,666
|
|
|
3,165
|
|
|
1,134
|
|
|
635
|
|
|
3,800
|
|
|
3,800
|
|
||||||
Total committed secured credit facilities
|
|
$
|
5,716
|
|
|
$
|
6,665
|
|
|
$
|
1,834
|
|
|
$
|
1,935
|
|
|
$
|
7,550
|
|
|
$
|
8,600
|
|
(a)
|
Funding from committed secured credit facilities is available on request in the event excess collateral resides in certain facilities or the extent incremental collateral is available and contributed to the facilities.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Accounts payable
|
|
$
|
347
|
|
|
$
|
516
|
|
Unfunded commitments for investment in qualified affordable housing projects
|
|
336
|
|
|
319
|
|
||
Employee compensation and benefits
|
|
165
|
|
|
255
|
|
||
Reserves for insurance losses and loss adjustment expenses
|
|
135
|
|
|
134
|
|
||
Deferred revenue
|
|
28
|
|
|
27
|
|
||
Cash collateral received from counterparties
|
|
27
|
|
|
41
|
|
||
Fair value of derivative contracts in payable position (a)
|
|
21
|
|
|
37
|
|
||
Other liabilities
|
|
663
|
|
|
347
|
|
||
Total accrued expenses and other liabilities
|
|
$
|
1,722
|
|
|
$
|
1,676
|
|
(a)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
($ 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 December 31, 2017
|
$
|
(173
|
)
|
|
$
|
16
|
|
|
$
|
11
|
|
|
$
|
(89
|
)
|
|
$
|
(235
|
)
|
Cumulative effect of changes in accounting principles, net of tax (c)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adoption of Accounting Standards Update 2016-01
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||
Adoption of Accounting Standards Update 2018-02
|
(40
|
)
|
|
4
|
|
|
—
|
|
|
(6
|
)
|
|
(42
|
)
|
|||||
Balance at January 1, 2018
|
(186
|
)
|
|
20
|
|
|
11
|
|
|
(95
|
)
|
|
(250
|
)
|
|||||
2018 net change
|
(338
|
)
|
|
(1
|
)
|
|
14
|
|
|
(3
|
)
|
|
(328
|
)
|
|||||
Balance at March 31, 2018
|
$
|
(524
|
)
|
|
$
|
19
|
|
|
$
|
25
|
|
|
$
|
(98
|
)
|
|
$
|
(578
|
)
|
Balance at December 31, 2018
|
$
|
(481
|
)
|
|
$
|
18
|
|
|
$
|
19
|
|
|
$
|
(95
|
)
|
|
$
|
(539
|
)
|
Cumulative effect of changes in accounting principles, net of tax (c)
|
|
|
|
|
|
|
|
|
|
||||||||||
Adoption of Accounting Standards Update 2017-08
|
8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|||||
Balance at January 1, 2019
|
(473
|
)
|
|
18
|
|
|
19
|
|
|
(95
|
)
|
|
(531
|
)
|
|||||
2019 net change
|
315
|
|
|
—
|
|
|
(8
|
)
|
|
(1
|
)
|
|
306
|
|
|||||
Balance at March 31, 2019
|
$
|
(158
|
)
|
|
$
|
18
|
|
|
$
|
11
|
|
|
$
|
(96
|
)
|
|
$
|
(225
|
)
|
(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 17
.
|
(c)
|
Refer to the section titled
Recently Adopted Accounting Standards
in
Note 1
for additional information.
|
Three months ended March 31, 2019
($ in millions)
|
Before tax
|
|
Tax effect
|
|
After tax
|
||||||
Investment securities
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
$
|
421
|
|
|
$
|
(99
|
)
|
|
$
|
322
|
|
Less: Net realized gains reclassified to income from continuing operations
|
9
|
|
(a)
|
(2
|
)
|
(b)
|
7
|
|
|||
Net change
|
412
|
|
|
(97
|
)
|
|
315
|
|
|||
Translation adjustments
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
2
|
|
|
(1
|
)
|
|
1
|
|
|||
Net investment hedges (c)
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
|||
Cash flow hedges (c)
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(5
|
)
|
|
1
|
|
|
(4
|
)
|
|||
Less: Net realized gains reclassified to income from continuing operations
|
5
|
|
|
(1
|
)
|
|
4
|
|
|||
Net change
|
(10
|
)
|
|
2
|
|
|
(8
|
)
|
|||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Other comprehensive loss
|
$
|
401
|
|
|
$
|
(95
|
)
|
|
$
|
306
|
|
(a)
|
Includes gains reclassified to
other gain (loss) on investments, net
in our
Condensed Consolidated Statement of Comprehensive Income
.
|
(b)
|
Includes amounts reclassified to income tax expense from continuing operations in our
Condensed Consolidated Statement of Comprehensive Income
.
|
(c)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
Three months ended March 31, 2018
($ in millions)
|
Before tax
|
|
Tax effect
|
|
After tax
|
||||||
Investment securities
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
$
|
(436
|
)
|
|
$
|
103
|
|
|
$
|
(333
|
)
|
Less: Net realized gains reclassified to income from continuing operations
|
6
|
|
(a)
|
(1
|
)
|
(b)
|
5
|
|
|||
Net change
|
(442
|
)
|
|
104
|
|
|
(338
|
)
|
|||
Translation adjustments
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(5
|
)
|
|
1
|
|
|
(4
|
)
|
|||
Net investment hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
4
|
|
|
(1
|
)
|
|
3
|
|
|||
Cash flow hedges (c)
|
|
|
|
|
|
||||||
Net unrealized gains arising during the period
|
18
|
|
|
(4
|
)
|
|
14
|
|
|||
Defined benefit pension plans
|
|
|
|
|
|
||||||
Net unrealized losses arising during the period
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Other comprehensive loss
|
$
|
(428
|
)
|
|
$
|
100
|
|
|
$
|
(328
|
)
|
(a)
|
Includes gains reclassified to other (loss) gain on investments, net in our
Condensed Consolidated Statement of Comprehensive Income
.
|
(b)
|
Includes amounts reclassified to income tax expense from continuing operations in our
Condensed Consolidated Statement of Comprehensive Income
.
|
(c)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
|
|
Three months ended March 31,
|
||||||
($ in millions, except per share data; shares in thousands)
(a)
|
|
2019
|
|
2018
|
||||
Net income from continuing operations attributable to common stockholders
|
|
$
|
375
|
|
|
$
|
252
|
|
Loss from discontinued operations, net of tax
|
|
(1
|
)
|
|
(2
|
)
|
||
Net income attributable to common stockholders
|
|
$
|
374
|
|
|
$
|
250
|
|
Basic weighted-average common shares outstanding (b)
|
|
404,129
|
|
|
436,213
|
|
||
Diluted weighted-average common shares outstanding (b)
|
|
405,959
|
|
|
438,931
|
|
||
Basic earnings per common share
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.93
|
|
|
$
|
0.58
|
|
Loss from discontinued operations, net of tax
|
|
—
|
|
|
(0.01
|
)
|
||
Net income
|
|
$
|
0.93
|
|
|
$
|
0.57
|
|
Diluted earnings per common share
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.92
|
|
|
$
|
0.57
|
|
Loss from discontinued operations, net of tax
|
|
—
|
|
|
(0.01
|
)
|
||
Net income
|
|
$
|
0.92
|
|
|
$
|
0.57
|
|
(a)
|
Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.
|
(b)
|
Includes shares related to share-based compensation that vested but were not yet issued
.
|
|
March 31, 2019
|
|
December 31, 2018
|
|
Required minimum (a)
|
|
Well-capitalized minimum
|
||||||||||||
($ in millions)
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
|||||||||||
Capital ratios
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Common Equity Tier 1 (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
13,603
|
|
|
9.33
|
%
|
|
$
|
13,397
|
|
|
9.14
|
%
|
|
4.50
|
%
|
|
(b)
|
|
Ally Bank
|
16,609
|
|
|
12.55
|
|
|
16,552
|
|
|
12.61
|
|
|
4.50
|
|
|
6.50
|
%
|
||
Tier 1 (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
16,035
|
|
|
10.99
|
%
|
|
$
|
15,831
|
|
|
10.80
|
%
|
|
6.00
|
%
|
|
6.00
|
%
|
Ally Bank
|
16,609
|
|
|
12.55
|
|
|
16,552
|
|
|
12.61
|
|
|
6.00
|
|
|
8.00
|
|
||
Total (to risk-weighted assets)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
18,292
|
|
|
12.54
|
%
|
|
$
|
18,046
|
|
|
12.31
|
%
|
|
8.00
|
%
|
|
10.00
|
%
|
Ally Bank
|
17,802
|
|
|
13.46
|
|
|
17,620
|
|
|
13.42
|
|
|
8.00
|
|
|
10.00
|
|
||
Tier 1 leverage (to adjusted quarterly average assets) (c)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ally Financial Inc.
|
$
|
16,035
|
|
|
9.02
|
%
|
|
$
|
15,831
|
|
|
9.00
|
%
|
|
4.00
|
%
|
|
(b)
|
|
Ally Bank
|
16,609
|
|
|
10.45
|
|
|
16,552
|
|
|
10.69
|
|
|
4.00
|
|
|
5.00
|
%
|
(a)
|
In addition to the minimum risk-based capital requirements for the Common Equity Tier 1 capital, Tier 1 capital, and total capital ratios, Ally and Ally Bank were required to maintain a minimum capital conservation buffer of
2.5%
and
1.875%
at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(b)
|
Currently, there is no ratio component for determining whether a BHC is “well-capitalized.”
|
(c)
|
Federal regulatory reporting guidelines require the calculation of adjusted quarterly average assets using a daily average methodology.
|
|
|
Common stock repurchased during period (a)
|
|
Number of common shares outstanding
|
|
Cash dividends declared per common share (b)
|
|||||||||||
($ in millions, except per share data; shares in thousands)
|
|
Approximate dollar value
|
|
Number of shares
|
|
Beginning of period
|
|
End of period
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|||||||
First quarter
|
|
$
|
185
|
|
|
6,473
|
|
|
437,054
|
|
|
432,691
|
|
|
$
|
0.13
|
|
Second quarter
|
|
195
|
|
|
7,280
|
|
|
432,691
|
|
|
425,752
|
|
|
0.13
|
|
||
Third quarter
|
|
250
|
|
|
9,194
|
|
|
425,752
|
|
|
416,591
|
|
|
0.15
|
|
||
Fourth quarter
|
|
309
|
|
|
12,121
|
|
|
416,591
|
|
|
404,900
|
|
|
0.15
|
|
||
2019
|
|
|
|
|
|
|
|
|
|
|
|||||||
First quarter
|
|
$
|
211
|
|
|
8,113
|
|
|
404,900
|
|
|
399,761
|
|
|
$
|
0.17
|
|
(a)
|
Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.
|
(b)
|
On
April 14, 2019
, the Ally Board of Directors (the Board) declared a quarterly cash dividend of
$0.17
per share on all common stock, payable on
May 15, 2019
. Refer to
Note 24
for further information regarding this common stock dividend.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Derivative contracts in a
|
|
Notional amount
|
|
Derivative contracts in a
|
|
Notional amount
|
||||||||||||||||
($ in millions)
|
|
receivable position
|
|
payable position
|
|
receivable position
|
|
payable position
|
|
|||||||||||||||
Derivatives designated as accounting hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Swaps
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,085
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24,203
|
|
Purchased options
|
|
1
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forwards
|
|
—
|
|
|
1
|
|
|
134
|
|
|
1
|
|
|
—
|
|
|
136
|
|
||||||
Total derivatives designated as accounting hedges
|
|
1
|
|
|
1
|
|
|
12,319
|
|
|
1
|
|
|
—
|
|
|
24,339
|
|
||||||
Derivatives not designated as accounting hedges
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures and forwards
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Written options
|
|
2
|
|
|
19
|
|
|
6,180
|
|
|
—
|
|
|
37
|
|
|
6,793
|
|
||||||
Purchased options
|
|
19
|
|
|
—
|
|
|
6,081
|
|
|
37
|
|
|
—
|
|
|
6,742
|
|
||||||
Total interest rate risk
|
|
21
|
|
|
19
|
|
|
12,272
|
|
|
37
|
|
|
37
|
|
|
13,546
|
|
||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Futures and forwards
|
|
—
|
|
|
—
|
|
|
124
|
|
|
3
|
|
|
—
|
|
|
181
|
|
||||||
Total foreign exchange risk
|
|
—
|
|
|
—
|
|
|
124
|
|
|
3
|
|
|
—
|
|
|
181
|
|
||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Written options
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total equity risk
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total derivatives not designated as accounting hedges
|
|
21
|
|
|
20
|
|
|
12,397
|
|
|
40
|
|
|
37
|
|
|
13,727
|
|
||||||
Total derivatives
|
|
$
|
22
|
|
|
$
|
21
|
|
|
$
|
24,716
|
|
|
$
|
41
|
|
|
$
|
37
|
|
|
$
|
38,066
|
|
($ in millions)
|
|
Carrying amount of the hedged items
|
|
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
|
||||||||||||||||||||
|
|
Total
|
|
Discontinued (a)
|
||||||||||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Available-for-sale securities (b) (c)
|
|
$
|
1,495
|
|
|
$
|
1,485
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
(5
|
)
|
Finance receivables and loans, net (d)
|
|
36,433
|
|
|
40,850
|
|
|
63
|
|
|
24
|
|
|
68
|
|
|
5
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
|
$
|
12,263
|
|
|
$
|
13,001
|
|
|
$
|
66
|
|
|
$
|
67
|
|
|
$
|
66
|
|
|
$
|
67
|
|
(a)
|
Represents the fair value hedging adjustment on qualifying hedges for which the hedging relationship was discontinued. This represents a subset of the amounts reported in the total hedging adjustment.
|
(b)
|
The carrying amount of hedged available-for-sale securities is presented above using amortized cost. Refer to
Note 6
for a reconciliation of the amortized cost and fair value of available-for-sale securities.
|
(c)
|
The amount identified as the last of layer in the hedge relationship was
$28 million
at both
March 31, 2019
, and
December 31, 2018
, but the hedge relationship was discontinued during the three months ended
March 31, 2019
. The carrying amount associated with the last-of-layer relationship was
$46 million
and
$47 million
, respectively. There was no basis adjustment associated with the last-of-layer relationships for either period.
|
(d)
|
The hedged item represents the carrying value of the hedged portfolio of assets. The amount identified as the last of layer in the open hedge relationship was
$9.6 billion
as of
March 31, 2019
, and
$21.4 billion
as of
December 31, 2018
. The basis adjustment associated with the open last-of-layer relationship was a
$5 million
liability as of
March 31, 2019
, and a
$19 million
asset as of
December 31, 2018
, which would be allocated across the entire remaining closed pool upon termination or maturity of the hedge relationship. The amount that is identified as the last of layer in the discontinued hedge relationship was
$11.2 billion
for the
three months ended
March 31, 2019
. The basis adjustment associated with the discontinued last-of-layer relationship was a
$65 million
asset for the
three months ended
March 31, 2019
, which was allocated across the entire remaining pool upon termination of the hedge relationship.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Gain (loss) recognized in earnings
|
|
|
|
|
||||
Interest rate contracts
|
|
|
|
|
||||
Gain on mortgage and automotive loans, net
|
|
$
|
1
|
|
|
$
|
—
|
|
Other income, net of losses
|
|
(5
|
)
|
|
2
|
|
||
Total interest rate contracts
|
|
(4
|
)
|
|
2
|
|
||
Foreign exchange contracts
|
|
|
|
|
||||
Other income, net of losses
|
|
(1
|
)
|
|
—
|
|
||
Total foreign exchange contracts
|
|
(1
|
)
|
|
—
|
|
||
(Loss) gain recognized in earnings
|
|
$
|
(5
|
)
|
|
$
|
2
|
|
|
Interest and fees on finance receivables and loans
|
|
Interest and dividends on investment securities and other earning assets
|
|
Interest on deposits
|
|
Interest on long-term debt
|
||||||||||||||||||||
Three months ended March 31,
($ in millions)
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||||||||||
Gain (loss) on fair value hedging relationships
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedged fixed-rate unsecured debt
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
36
|
|
Derivatives designated as hedging instruments on fixed-rate unsecured debt
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
(35
|
)
|
||||||||
Hedged fixed-rate FHLB advances
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
33
|
|
||||||||
Derivatives designated as hedging instruments on fixed-rate FHLB advances
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
(33
|
)
|
||||||||
Hedged available-for-sale securities
|
—
|
|
—
|
|
|
10
|
|
(3
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Derivatives designated as hedging instruments on available-for-sale securities
|
—
|
|
—
|
|
|
(10
|
)
|
3
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Hedged fixed-rate consumer automotive loans
|
43
|
|
(45
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Derivatives designated as hedging instruments on fixed-rate consumer automotive loans
|
(43
|
)
|
45
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Total gain on fair value hedging relationships
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
1
|
|
||||||||
Gain on cash flow hedging relationships
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedged deposit liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reclassified from accumulated other comprehensive income into income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
1
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
Hedged variable-rate borrowings
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Reclassified from accumulated other comprehensive income into income
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
4
|
|
—
|
|
||||||||
Total gain on cash flow hedging relationships
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
4
|
|
$
|
—
|
|
Total amounts presented in the Condensed Consolidated Statement of Comprehensive Income
|
$
|
1,807
|
|
$
|
1,543
|
|
|
$
|
240
|
|
$
|
176
|
|
|
$
|
592
|
|
$
|
351
|
|
|
$
|
419
|
|
$
|
411
|
|
|
Interest and fees on finance receivables and loans
|
|
Interest and dividends on investment securities and other earning assets
|
|
Interest on long-term debt
|
|||||||||||||||
Three months ended March 31,
($ in millions)
|
2019
|
2018
|
|
2019
|
2018
|
|
2019
|
2018
|
||||||||||||
Gain (loss) on fair value hedging relationships
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of deferred unsecured debt basis adjustments
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
6
|
|
$
|
15
|
|
Interest for qualifying accounting hedges of unsecured debt
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
3
|
|
||||||
Amortization of deferred secured debt basis adjustments (FHLB advances)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
(6
|
)
|
(1
|
)
|
||||||
Interest for qualifying accounting hedges of secured debt (FHLB advances)
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
2
|
|
||||||
Interest for qualifying accounting hedges of available-for-sale securities
|
—
|
|
—
|
|
|
—
|
|
(1
|
)
|
|
—
|
|
—
|
|
||||||
Amortization of deferred loan basis adjustments
|
(4
|
)
|
(4
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Interest for qualifying accounting hedges of consumer automotive loans held-for-investment
|
6
|
|
(7
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
Total gain (loss) on fair value hedging relationships
|
2
|
|
(11
|
)
|
|
—
|
|
(1
|
)
|
|
—
|
|
19
|
|
||||||
Gain on cash flow hedging relationships
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
||||||||||||
Interest for qualifying accounting hedges of variable-rate borrowings
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
1
|
|
||||||
Total gain on cash flow hedging relationships
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
1
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Interest rate contracts
|
|
|
|
||||
(Loss) gain recognized in other comprehensive loss
|
$
|
(10
|
)
|
|
$
|
18
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
2019
|
|
2018
|
||||
Foreign exchange contracts (a) (b)
|
|
|
|
||||
(Loss) gain recognized in other comprehensive loss
|
$
|
(2
|
)
|
|
$
|
4
|
|
(a)
|
There were no amounts excluded from effectiveness testing for the
three months ended
March 31, 2019
, or
2018
.
|
(b)
|
Gains and losses reclassified from accumulated other comprehensive loss are reported as other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income. There were no amounts reclassified for the
three months ended
March 31, 2019
, or
2018
.
|
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.
|
•
|
Equity Securities
— Includes various marketable equity securities measured at fair value with changes in fair value recognized in net income. Measurements based on observable market prices are classified as Level 1.
|
•
|
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 determine the fair value of these instruments, we utilize the quoted market prices for the particular derivative contracts; therefore, we classified these contracts as Level 1.
|
|
|
Recurring fair value measurements
|
||||||||||||||
March 31, 2019
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (a)
|
|
$
|
525
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
536
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
|
1,941
|
|
|
1
|
|
|
—
|
|
|
1,942
|
|
||||
U.S. States and political subdivisions
|
|
—
|
|
|
781
|
|
|
—
|
|
|
781
|
|
||||
Foreign government
|
|
7
|
|
|
165
|
|
|
—
|
|
|
172
|
|
||||
Agency mortgage-backed residential
|
|
—
|
|
|
18,844
|
|
|
—
|
|
|
18,844
|
|
||||
Agency mortgage-backed commercial
|
|
—
|
|
|
320
|
|
|
—
|
|
|
320
|
|
||||
Mortgage-backed residential
|
|
—
|
|
|
2,886
|
|
|
—
|
|
|
2,886
|
|
||||
Mortgage-backed commercial
|
|
—
|
|
|
723
|
|
|
—
|
|
|
723
|
|
||||
Asset-backed
|
|
—
|
|
|
668
|
|
|
—
|
|
|
668
|
|
||||
Corporate debt
|
|
—
|
|
|
1,294
|
|
|
—
|
|
|
1,294
|
|
||||
Total available-for-sale securities
|
|
1,948
|
|
|
25,682
|
|
|
—
|
|
|
27,630
|
|
||||
Mortgage loans held-for-sale (b)
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||
Interests retained in financial asset sales
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||
Derivative contracts in a receivable position
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
20
|
|
|
2
|
|
|
22
|
|
||||
Total derivative contracts in a receivable position
|
|
—
|
|
|
20
|
|
|
2
|
|
|
22
|
|
||||
Total assets
|
|
$
|
2,473
|
|
|
$
|
25,702
|
|
|
$
|
32
|
|
|
$
|
28,207
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative contracts in a payable position
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
19
|
|
Foreign currency
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Other
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Total derivative contracts in a payable position
|
|
1
|
|
|
20
|
|
|
—
|
|
|
21
|
|
||||
Total liabilities
|
|
$
|
1
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
21
|
|
(a)
|
Our investment in any one industry did not exceed
15%
.
|
(b)
|
Carried at fair value due to fair value option elections.
|
|
|
Recurring fair value measurements
|
||||||||||||||
December 31, 2018
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
||||||||
Investment securities
|
|
|
|
|
|
|
|
|
||||||||
Equity securities (a)
|
|
$
|
766
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
773
|
|
Available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Debt securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury and federal agencies
|
|
1,850
|
|
|
1
|
|
|
—
|
|
|
1,851
|
|
||||
U.S. States and political subdivisions
|
|
—
|
|
|
802
|
|
|
—
|
|
|
802
|
|
||||
Foreign government
|
|
7
|
|
|
138
|
|
|
—
|
|
|
145
|
|
||||
Agency mortgage-backed residential
|
|
—
|
|
|
17,138
|
|
|
—
|
|
|
17,138
|
|
||||
Agency mortgage-backed commercial
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||
Mortgage-backed residential
|
|
—
|
|
|
2,686
|
|
|
—
|
|
|
2,686
|
|
||||
Mortgage-backed commercial
|
|
—
|
|
|
714
|
|
|
—
|
|
|
714
|
|
||||
Asset-backed
|
|
—
|
|
|
723
|
|
|
—
|
|
|
723
|
|
||||
Corporate debt
|
|
—
|
|
|
1,241
|
|
|
—
|
|
|
1,241
|
|
||||
Total available-for-sale securities
|
|
1,857
|
|
|
23,446
|
|
|
—
|
|
|
25,303
|
|
||||
Mortgage loans held-for-sale (b)
|
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
||||
Interests retained in financial asset sales
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
||||
Derivative contracts in a receivable position
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
||||
Foreign currency
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||
Total derivative contracts in a receivable position
|
|
—
|
|
|
41
|
|
|
—
|
|
|
41
|
|
||||
Total assets
|
|
$
|
2,623
|
|
|
$
|
23,487
|
|
|
$
|
19
|
|
|
$
|
26,129
|
|
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Accrued expenses and other liabilities
|
|
|
|
|
|
|
|
|
||||||||
Derivative contracts in a payable position
|
|
|
|
|
|
|
|
|
||||||||
Interest rate
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
37
|
|
Total derivative contracts in a payable position
|
|
—
|
|
|
37
|
|
|
—
|
|
|
37
|
|
||||
Total liabilities
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
37
|
|
(a)
|
Our investment in any one industry did not exceed
9%
.
|
(b)
|
Carried at fair value due to fair value option elections.
|
|
Level 3 recurring fair value measurements
|
||||||||||||||||||||||||||||||
|
|
Net realized/unrealized gains
|
|
|
|
|
Fair value at March 31, 2019
|
Net unrealized gains still held at March 31, 2019
|
|||||||||||||||||||||||
($ in millions)
|
Fair value at Jan. 1, 2019
|
included in earnings
|
|
included in OCI
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
included in earnings
|
included in OCI
|
|||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Equity securities
|
$
|
7
|
|
$
|
4
|
|
(a)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
11
|
|
$
|
4
|
|
$
|
—
|
|
Mortgage loans held-for-sale (b)
|
8
|
|
1
|
|
(c)
|
—
|
|
90
|
|
(84
|
)
|
—
|
|
—
|
|
15
|
|
—
|
|
—
|
|
||||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Interests retained in financial asset sales
|
4
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
—
|
|
||||||||||
Derivative assets
|
—
|
|
2
|
|
(c)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
2
|
|
—
|
|
||||||||||
Total assets
|
$
|
19
|
|
$
|
7
|
|
|
$
|
—
|
|
$
|
90
|
|
$
|
(84
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
32
|
|
$
|
6
|
|
$
|
—
|
|
(a)
|
Reported as other gain on investments, net, in the
Condensed Consolidated Statement of Comprehensive Income
.
|
(b)
|
Carried at fair value due to fair value option elections.
|
(c)
|
Reported as gain on mortgage and automotive loans, net, in the
Condensed Consolidated Statement of Comprehensive Income
.
|
|
Level 3 recurring fair value measurements
|
|||||||||||||||||||||||||||
|
Fair value at Jan. 1, 2018
|
Net realized/unrealized (losses) gains
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
Fair value at March 31, 2018
|
Net unrealized losses included in earnings still held at March 31, 2018
|
||||||||||||||||||||
($ in millions)
|
included in earnings
|
|
included in OCI
|
|||||||||||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Equity securities
|
$
|
19
|
|
$
|
(4
|
)
|
(a)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
(3
|
)
|
$
|
12
|
|
$
|
(5
|
)
|
Mortgage loans held-for-sale (b)
|
13
|
|
1
|
|
(c)
|
—
|
|
59
|
|
(66
|
)
|
—
|
|
—
|
|
7
|
|
—
|
|
|||||||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interests retained in financial asset sales
|
5
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5
|
|
—
|
|
|||||||||
Derivative assets
|
1
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
|||||||||
Total assets
|
$
|
38
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
$
|
59
|
|
$
|
(66
|
)
|
$
|
—
|
|
$
|
(3
|
)
|
$
|
25
|
|
$
|
(5
|
)
|
(a)
|
Reported as other loss on investments, net, in the
Condensed Consolidated Statement of Comprehensive Income
.
|
(b)
|
Carried at fair value due to fair value option elections.
|
(c)
|
Reported as gain on mortgage and automotive loans, net, in the
Condensed Consolidated Statement of Comprehensive Income
.
|
|
|
Nonrecurring fair value measurements
|
|
Lower-of-cost or fair value reserve, valuation reserve, or cumulative impairment
|
|
Total gain (loss) included in earnings
|
|
||||||||||||||||
March 31, 2019
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-sale, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
n/m
|
(a)
|
Other
|
|
—
|
|
|
—
|
|
|
74
|
|
|
74
|
|
|
—
|
|
|
n/m
|
(a)
|
|||||
Total loans held-for-sale, net
|
|
—
|
|
|
—
|
|
|
92
|
|
|
92
|
|
|
—
|
|
|
n/m
|
(a)
|
|||||
Commercial finance receivables and loans, net (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
—
|
|
|
—
|
|
|
83
|
|
|
83
|
|
|
(18
|
)
|
|
n/m
|
(a)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
30
|
|
|
30
|
|
|
(40
|
)
|
|
n/m
|
(a)
|
|||||
Total commercial finance receivables and loans, net
|
|
—
|
|
|
—
|
|
|
113
|
|
|
113
|
|
|
(58
|
)
|
|
n/m
|
(a)
|
|||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repossessed and foreclosed assets (c)
|
|
—
|
|
|
—
|
|
|
12
|
|
|
12
|
|
|
(1
|
)
|
|
n/m
|
(a)
|
|||||
Nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
n/m
|
(a)
|
|||||
Equity-method investments
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(3
|
)
|
|
n/m
|
(a)
|
|||||
Total assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
220
|
|
|
$
|
220
|
|
|
$
|
(62
|
)
|
|
n/m
|
|
(a)
|
We consider the applicable valuation allowance, loan loss allowance, or cumulative impairment to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation allowance, loan loss allowance, or cumulative impairment.
|
(b)
|
Represents the portion of the portfolio specifically impaired during
2019
. 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.
|
|
|
Nonrecurring fair value measurements
|
|
Lower-of-cost or fair value reserve, valuation reserve, or cumulative impairment
|
|
Total gain (loss) included in earnings
|
|
||||||||||||||||
December 31, 2018
($ in millions)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans held-for-sale, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive (a)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
210
|
|
|
$
|
210
|
|
|
$
|
(2
|
)
|
|
n/m
|
(b)
|
Other
|
|
—
|
|
|
—
|
|
|
96
|
|
|
96
|
|
|
—
|
|
|
n/m
|
(b)
|
|||||
Total loans held-for-sale, net
|
|
—
|
|
|
—
|
|
|
306
|
|
|
306
|
|
|
(2
|
)
|
|
n/m
|
(b)
|
|||||
Commercial finance receivables and loans, net (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automotive
|
|
—
|
|
|
—
|
|
|
84
|
|
|
84
|
|
|
(10
|
)
|
|
n/m
|
(b)
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
55
|
|
|
55
|
|
|
(46
|
)
|
|
n/m
|
(b)
|
|||||
Total commercial finance receivables and loans, net
|
|
—
|
|
|
—
|
|
|
139
|
|
|
139
|
|
|
(56
|
)
|
|
n/m
|
(b)
|
|||||
Other assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
n/m
|
(b)
|
|||||
Equity-method investments
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
n/m
|
(b)
|
|||||
Repossessed and foreclosed assets (d)
|
|
—
|
|
|
—
|
|
|
13
|
|
|
13
|
|
|
(1
|
)
|
|
n/m
|
(b)
|
|||||
Total assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
462
|
|
|
$
|
462
|
|
|
$
|
(60
|
)
|
|
n/m
|
|
(a)
|
Represents loans within our commercial automotive portfolio. Of this amount,
$104 million
was valued based upon a sales price for a transaction that closed in January 2019, and
$106 million
was valued using a discounted cash flow analysis, with a spread over forward interest rates as a significant unobservable input utilizing a range of
0.08
–
1.09%
and weighted average of
0.72%
.
|
(b)
|
We consider the applicable valuation allowance, loan loss allowance, or cumulative impairment to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation allowance, loan loss allowance, or cumulative impairment.
|
(c)
|
Represents the portion of the portfolio specifically impaired during
2018
. The related valuation allowance represents the cumulative adjustment to fair value of those specific receivables.
|
(d)
|
The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
|
|
|
|
Estimated fair value
|
||||||||||||||||
($ in millions)
|
Carrying value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity securities
|
$
|
2,387
|
|
|
$
|
—
|
|
|
$
|
2,374
|
|
|
$
|
—
|
|
|
$
|
2,374
|
|
Loans held-for-sale, net
|
92
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
92
|
|
|||||
Finance receivables and loans, net
|
128,767
|
|
|
—
|
|
|
—
|
|
|
131,541
|
|
|
131,541
|
|
|||||
FHLB/FRB stock (a)
|
1,180
|
|
|
—
|
|
|
1,180
|
|
|
—
|
|
|
1,180
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
$
|
54,899
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,106
|
|
|
$
|
55,106
|
|
Short-term borrowings
|
6,115
|
|
|
—
|
|
|
—
|
|
|
6,119
|
|
|
6,119
|
|
|||||
Long-term debt
|
41,490
|
|
|
—
|
|
|
23,038
|
|
|
20,661
|
|
|
43,699
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Held-to-maturity securities
|
$
|
2,362
|
|
|
$
|
—
|
|
|
$
|
2,307
|
|
|
$
|
—
|
|
|
$
|
2,307
|
|
Loans held-for-sale, net
|
306
|
|
|
—
|
|
|
—
|
|
|
306
|
|
|
306
|
|
|||||
Finance receivables and loans, net
|
128,684
|
|
|
—
|
|
|
—
|
|
|
130,878
|
|
|
130,878
|
|
|||||
FHLB/FRB stock (a)
|
1,351
|
|
|
—
|
|
|
1,351
|
|
|
—
|
|
|
1,351
|
|
|||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
$
|
51,985
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,997
|
|
|
$
|
51,997
|
|
Short-term borrowings
|
9,987
|
|
|
—
|
|
|
—
|
|
|
9,992
|
|
|
9,992
|
|
|||||
Long-term debt
|
44,193
|
|
|
—
|
|
|
23,846
|
|
|
21,800
|
|
|
45,646
|
|
(a)
|
Included in other assets on our
Condensed Consolidated Balance Sheet
.
|
|
|
Gross amounts of recognized assets/liabilities
|
|
Gross amounts offset on the Condensed Consolidated Balance Sheet
|
|
Net amounts of assets/liabilities presented on the Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Gross amounts not offset on the Condensed Consolidated Balance Sheet
|
|
|
|||||||||||||||||
March 31, 2019
($ in millions)
|
|
|
|
|
Financial instruments
|
|
Collateral (a) (b) (c)
|
|
Net amount
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets in net asset positions (d)
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
18
|
|
Derivative assets with no offsetting arrangements
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Total assets
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
(1
|
)
|
|
$
|
(1
|
)
|
|
$
|
20
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities in net liability positions (d)
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
19
|
|
Derivative liabilities in net asset positions
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Total derivative liabilities (d)
|
|
21
|
|
|
—
|
|
|
21
|
|
|
(1
|
)
|
|
(1
|
)
|
|
19
|
|
||||||
Securities sold under agreements to repurchase (e)
|
|
854
|
|
|
—
|
|
|
854
|
|
|
—
|
|
|
(854
|
)
|
|
—
|
|
||||||
Total liabilities
|
|
$
|
875
|
|
|
$
|
—
|
|
|
$
|
875
|
|
|
$
|
(1
|
)
|
|
$
|
(855
|
)
|
|
$
|
19
|
|
(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. There was
$3 million
of noncash collateral associated with our repurchase agreements pledged to us that was excluded at
March 31, 2019
. We do not record such collateral received on our
Condensed 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
$3 million
at
March 31, 2019
. We have not sold or pledged any of the noncash collateral received under these agreements as of
March 31, 2019
.
|
(d)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
(e)
|
For additional information on securities sold under agreements to repurchase, refer to
Note 12
.
|
|
|
Gross amounts of recognized assets/liabilities
|
|
Gross amounts offset on the Condensed Consolidated Balance Sheet
|
|
Net amounts of assets/liabilities presented on the Condensed Consolidated Balance Sheet
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Gross amounts not offset on the Condensed Consolidated Balance Sheet
|
|
|
|||||||||||||||||
December 31, 2018
($ in millions)
|
|
|
|
|
Financial instruments
|
|
Collateral (a) (b) (c)
|
|
Net amount
|
|||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets in net asset positions
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
37
|
|
Total assets (d)
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
(4
|
)
|
|
$
|
37
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities in net liability positions (d)
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
37
|
|
Securities sold under agreements to repurchase (e)
|
|
685
|
|
|
—
|
|
|
685
|
|
|
—
|
|
|
(685
|
)
|
|
—
|
|
||||||
Total liabilities
|
|
$
|
722
|
|
|
$
|
—
|
|
|
$
|
722
|
|
|
$
|
—
|
|
|
$
|
(685
|
)
|
|
$
|
37
|
|
(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. There was
$3 million
of noncash derivative collateral, and
$4 million
of noncash collateral associated with our repurchase agreements, pledged to us that was excluded at
December 31, 2018
. We do not record such collateral received on our
Condensed 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
$7 million
at
December 31, 2018
. We have not sold or pledged any of the noncash collateral received under these agreements as of
December 31, 2018
.
|
(d)
|
For additional information on derivative instruments and hedging activities, refer to
Note 17
.
|
(e)
|
For additional information on securities sold under agreements to repurchase, refer to
Note 12
.
|
Three months ended March 31,
($ in millions)
|
|
Automotive Finance operations
|
|
Insurance operations
|
|
Mortgage Finance operations
|
|
Corporate Finance operations
|
|
Corporate and Other
|
|
Consolidated (a)
|
||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income
|
|
$
|
980
|
|
|
$
|
12
|
|
|
$
|
50
|
|
|
$
|
54
|
|
|
$
|
36
|
|
|
$
|
1,132
|
|
Other revenue
|
|
68
|
|
|
360
|
|
|
2
|
|
|
11
|
|
|
25
|
|
|
466
|
|
||||||
Total net revenue
|
|
1,048
|
|
|
372
|
|
|
52
|
|
|
65
|
|
|
61
|
|
|
1,598
|
|
||||||
Provision for loan losses
|
|
262
|
|
|
—
|
|
|
2
|
|
|
23
|
|
|
(5
|
)
|
|
282
|
|
||||||
Total noninterest expense
|
|
457
|
|
|
227
|
|
|
37
|
|
|
29
|
|
|
80
|
|
|
830
|
|
||||||
Income (loss) from continuing operations before income tax expense
|
|
$
|
329
|
|
|
$
|
145
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
(14
|
)
|
|
$
|
486
|
|
Total assets
|
|
$
|
115,789
|
|
|
$
|
8,179
|
|
|
$
|
16,301
|
|
|
$
|
5,006
|
|
|
$
|
34,842
|
|
|
$
|
180,117
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income
|
|
$
|
909
|
|
|
$
|
12
|
|
|
$
|
43
|
|
|
$
|
46
|
|
|
$
|
39
|
|
|
$
|
1,049
|
|
Other revenue
|
|
66
|
|
|
246
|
|
|
1
|
|
|
8
|
|
|
33
|
|
|
354
|
|
||||||
Total net revenue
|
|
975
|
|
|
258
|
|
|
44
|
|
|
54
|
|
|
72
|
|
|
1,403
|
|
||||||
Provision for loan losses
|
|
259
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
261
|
|
||||||
Total noninterest expense
|
|
448
|
|
|
231
|
|
|
34
|
|
|
25
|
|
|
76
|
|
|
814
|
|
||||||
Income (loss) from continuing operations before income tax expense
|
|
$
|
268
|
|
|
$
|
27
|
|
|
$
|
8
|
|
|
$
|
29
|
|
|
$
|
(4
|
)
|
|
$
|
328
|
|
Total assets
|
|
$
|
114,934
|
|
|
$
|
7,557
|
|
|
$
|
12,780
|
|
|
$
|
4,375
|
|
|
$
|
30,375
|
|
|
$
|
170,021
|
|
(a)
|
Net financing revenue and other interest income after the provision for loan losses totaled
$850 million
and
$788 million
for the
three months ended
March 31, 2019
, and
March 31, 2018
, respectively.
|
Three months ended March 31, 2019
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on finance receivables and loans
|
|
$
|
(60
|
)
|
|
$
|
—
|
|
|
$
|
1,867
|
|
|
$
|
—
|
|
|
$
|
1,807
|
|
Interest and fees on finance receivables and loans — intercompany
|
|
3
|
|
|
—
|
|
|
2
|
|
|
(5
|
)
|
|
—
|
|
|||||
Interest on loans held-for-sale
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||
Interest and dividends on investment securities and other earning assets
|
|
—
|
|
|
—
|
|
|
240
|
|
|
—
|
|
|
240
|
|
|||||
Interest on cash and cash equivalents
|
|
2
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
23
|
|
|||||
Interest-bearing cash — intercompany
|
|
2
|
|
|
—
|
|
|
3
|
|
|
(5
|
)
|
|
—
|
|
|||||
Operating leases
|
|
2
|
|
|
—
|
|
|
359
|
|
|
—
|
|
|
361
|
|
|||||
Total financing (loss) revenue and other interest income
|
|
(51
|
)
|
|
—
|
|
|
2,494
|
|
|
(10
|
)
|
|
2,433
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest on deposits
|
|
—
|
|
|
—
|
|
|
592
|
|
|
—
|
|
|
592
|
|
|||||
Interest on short-term borrowings
|
|
13
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
44
|
|
|||||
Interest on long-term debt
|
|
211
|
|
|
—
|
|
|
208
|
|
|
—
|
|
|
419
|
|
|||||
Interest on intercompany debt
|
|
5
|
|
|
—
|
|
|
5
|
|
|
(10
|
)
|
|
—
|
|
|||||
Total interest expense
|
|
229
|
|
|
—
|
|
|
836
|
|
|
(10
|
)
|
|
1,055
|
|
|||||
Net depreciation expense on operating lease assets
|
|
1
|
|
|
—
|
|
|
245
|
|
|
—
|
|
|
246
|
|
|||||
Net financing (loss) revenue
|
|
(281
|
)
|
|
—
|
|
|
1,413
|
|
|
—
|
|
|
1,132
|
|
|||||
Cash dividends from subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank subsidiary
|
|
400
|
|
|
400
|
|
|
—
|
|
|
(800
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
42
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|||||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Insurance premiums and service revenue earned
|
|
—
|
|
|
—
|
|
|
261
|
|
|
—
|
|
|
261
|
|
|||||
Gain on mortgage and automotive loans, net
|
|
4
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
10
|
|
|||||
Other gain on investments, net
|
|
—
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
108
|
|
|||||
Other income, net of losses
|
|
103
|
|
|
—
|
|
|
144
|
|
|
(160
|
)
|
|
87
|
|
|||||
Total other revenue
|
|
107
|
|
|
—
|
|
|
519
|
|
|
(160
|
)
|
|
466
|
|
|||||
Total net revenue
|
|
268
|
|
|
400
|
|
|
1,932
|
|
|
(1,002
|
)
|
|
1,598
|
|
|||||
Provision for loan losses
|
|
27
|
|
|
—
|
|
|
272
|
|
|
(17
|
)
|
|
282
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Compensation and benefits expense
|
|
12
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
318
|
|
|||||
Insurance losses and loss adjustment expenses
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|||||
Other operating expenses
|
|
155
|
|
|
—
|
|
|
458
|
|
|
(160
|
)
|
|
453
|
|
|||||
Total noninterest expense
|
|
167
|
|
|
—
|
|
|
823
|
|
|
(160
|
)
|
|
830
|
|
|||||
Income from continuing operations before income tax (benefit) expense and undistributed income of subsidiaries
|
|
74
|
|
|
400
|
|
|
837
|
|
|
(825
|
)
|
|
486
|
|
|||||
Income tax (benefit) expense from continuing operations
|
|
(61
|
)
|
|
—
|
|
|
172
|
|
|
—
|
|
|
111
|
|
|||||
Net income from continuing operations
|
|
135
|
|
|
400
|
|
|
665
|
|
|
(825
|
)
|
|
375
|
|
|||||
Loss from discontinued operations, net of tax
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Undistributed income of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Bank subsidiary
|
|
57
|
|
|
57
|
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
183
|
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|
—
|
|
|||||
Net income
|
|
374
|
|
|
457
|
|
|
665
|
|
|
(1,122
|
)
|
|
374
|
|
|||||
Other comprehensive income, net of tax
|
|
306
|
|
|
229
|
|
|
320
|
|
|
(549
|
)
|
|
306
|
|
|||||
Comprehensive income
|
|
$
|
680
|
|
|
$
|
686
|
|
|
$
|
985
|
|
|
$
|
(1,671
|
)
|
|
$
|
680
|
|
Three months ended March 31, 2018
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Financing revenue and other interest income
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on finance receivables and loans
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
1,532
|
|
|
$
|
—
|
|
|
$
|
1,543
|
|
Interest and fees on finance receivables and loans — intercompany
|
|
2
|
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|||||
Interest and dividends on investment securities and other earning assets
|
|
—
|
|
|
—
|
|
|
176
|
|
|
—
|
|
|
176
|
|
|||||
Interest on cash and cash equivalents
|
|
2
|
|
|
—
|
|
|
14
|
|
|
(1
|
)
|
|
15
|
|
|||||
Interest-bearing cash — intercompany
|
|
2
|
|
|
—
|
|
|
2
|
|
|
(4
|
)
|
|
—
|
|
|||||
Operating leases
|
|
2
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
382
|
|
|||||
Total financing revenue and other interest income
|
|
19
|
|
|
—
|
|
|
2,105
|
|
|
(8
|
)
|
|
2,116
|
|
|||||
Interest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
|
—
|
|
|
—
|
|
|
354
|
|
|
(3
|
)
|
|
351
|
|
|||||
Interest on short-term borrowings
|
|
10
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
32
|
|
|||||
Interest on long-term debt
|
|
258
|
|
|
—
|
|
|
153
|
|
|
—
|
|
|
411
|
|
|||||
Interest on intercompany debt
|
|
3
|
|
|
—
|
|
|
2
|
|
|
(5
|
)
|
|
—
|
|
|||||
Total interest expense
|
|
271
|
|
|
—
|
|
|
531
|
|
|
(8
|
)
|
|
794
|
|
|||||
Net depreciation expense on operating lease assets
|
|
4
|
|
|
—
|
|
|
269
|
|
|
—
|
|
|
273
|
|
|||||
Net financing (loss) revenue
|
|
(256
|
)
|
|
—
|
|
|
1,305
|
|
|
—
|
|
|
1,049
|
|
|||||
Cash dividends from subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
1,000
|
|
|
1,000
|
|
|
—
|
|
|
(2,000
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
169
|
|
|
—
|
|
|
—
|
|
|
(169
|
)
|
|
—
|
|
|||||
Other revenue
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance premiums and service revenue earned
|
|
—
|
|
|
—
|
|
|
256
|
|
|
—
|
|
|
256
|
|
|||||
Gain on mortgage and automotive loans, net
|
|
28
|
|
|
—
|
|
|
1
|
|
|
(28
|
)
|
|
1
|
|
|||||
Other loss on investments, net
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
|||||
Other income, net of losses
|
|
96
|
|
|
—
|
|
|
221
|
|
|
(208
|
)
|
|
109
|
|
|||||
Total other revenue
|
|
124
|
|
|
—
|
|
|
466
|
|
|
(236
|
)
|
|
354
|
|
|||||
Total net revenue
|
|
1,037
|
|
|
1,000
|
|
|
1,771
|
|
|
(2,405
|
)
|
|
1,403
|
|
|||||
Provision for loan losses
|
|
81
|
|
|
—
|
|
|
208
|
|
|
(28
|
)
|
|
261
|
|
|||||
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits expense
|
|
23
|
|
|
—
|
|
|
283
|
|
|
—
|
|
|
306
|
|
|||||
Insurance losses and loss adjustment expenses
|
|
—
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
|||||
Other operating expenses
|
|
182
|
|
|
—
|
|
|
471
|
|
|
(208
|
)
|
|
445
|
|
|||||
Total noninterest expense
|
|
205
|
|
|
—
|
|
|
817
|
|
|
(208
|
)
|
|
814
|
|
|||||
Income from continuing operations before income tax (benefit) expense and undistributed (loss) income of subsidiaries
|
|
751
|
|
|
1,000
|
|
|
746
|
|
|
(2,169
|
)
|
|
328
|
|
|||||
Income tax (benefit) expense from continuing operations
|
|
(56
|
)
|
|
—
|
|
|
132
|
|
|
—
|
|
|
76
|
|
|||||
Net income from continuing operations
|
|
807
|
|
|
1,000
|
|
|
614
|
|
|
(2,169
|
)
|
|
252
|
|
|||||
Loss from discontinued operations, net of tax
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Undistributed (loss) income of subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
(597
|
)
|
|
(597
|
)
|
|
—
|
|
|
1,194
|
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
41
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|||||
Net income
|
|
250
|
|
|
403
|
|
|
613
|
|
|
(1,016
|
)
|
|
250
|
|
|||||
Other comprehensive loss, net of tax
|
|
(328
|
)
|
|
(276
|
)
|
|
(339
|
)
|
|
615
|
|
|
(328
|
)
|
|||||
Comprehensive (loss) income
|
|
$
|
(78
|
)
|
|
$
|
127
|
|
|
$
|
274
|
|
|
$
|
(401
|
)
|
|
$
|
(78
|
)
|
March 31, 2019
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
45
|
|
|
$
|
—
|
|
|
$
|
901
|
|
|
$
|
—
|
|
|
$
|
946
|
|
Interest-bearing
|
|
14
|
|
|
—
|
|
|
2,997
|
|
|
—
|
|
|
3,011
|
|
|||||
Interest-bearing — intercompany
|
|
1,345
|
|
|
—
|
|
|
697
|
|
|
(2,042
|
)
|
|
—
|
|
|||||
Total cash and cash equivalents
|
|
1,404
|
|
|
—
|
|
|
4,595
|
|
|
(2,042
|
)
|
|
3,957
|
|
|||||
Equity securities
|
|
—
|
|
|
—
|
|
|
536
|
|
|
—
|
|
|
536
|
|
|||||
Available-for-sale securities
|
|
—
|
|
|
—
|
|
|
27,630
|
|
|
—
|
|
|
27,630
|
|
|||||
Held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
2,404
|
|
|
(17
|
)
|
|
2,387
|
|
|||||
Loans held-for-sale, net
|
|
—
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
107
|
|
|||||
Finance receivables and loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance receivables and loans, net
|
|
2,109
|
|
|
—
|
|
|
127,928
|
|
|
18
|
|
|
130,055
|
|
|||||
Intercompany loans to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonbank subsidiaries
|
|
372
|
|
|
—
|
|
|
104
|
|
|
(476
|
)
|
|
—
|
|
|||||
Allowance for loan losses
|
|
(36
|
)
|
|
—
|
|
|
(1,252
|
)
|
|
—
|
|
|
(1,288
|
)
|
|||||
Total finance receivables and loans, net
|
|
2,445
|
|
|
—
|
|
|
126,780
|
|
|
(458
|
)
|
|
128,767
|
|
|||||
Investment in operating leases, net
|
|
3
|
|
|
—
|
|
|
8,336
|
|
|
—
|
|
|
8,339
|
|
|||||
Intercompany receivables from
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
104
|
|
|
—
|
|
|
—
|
|
|
(104
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
46
|
|
|
—
|
|
|
110
|
|
|
(156
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
16,499
|
|
|
16,499
|
|
|
—
|
|
|
(32,998
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
6,687
|
|
|
—
|
|
|
—
|
|
|
(6,687
|
)
|
|
—
|
|
|||||
Premiums receivable and other insurance assets
|
|
—
|
|
|
—
|
|
|
2,401
|
|
|
—
|
|
|
2,401
|
|
|||||
Other assets
|
|
2,292
|
|
|
—
|
|
|
5,440
|
|
|
(1,739
|
)
|
|
5,993
|
|
|||||
Total assets
|
|
$
|
29,480
|
|
|
$
|
16,499
|
|
|
$
|
178,339
|
|
|
$
|
(44,201
|
)
|
|
$
|
180,117
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
141
|
|
Interest-bearing
|
|
—
|
|
|
—
|
|
|
113,158
|
|
|
—
|
|
|
113,158
|
|
|||||
Interest-bearing — intercompany
|
|
—
|
|
|
—
|
|
|
1,345
|
|
|
(1,345
|
)
|
|
—
|
|
|||||
Total deposit liabilities
|
|
—
|
|
|
—
|
|
|
114,644
|
|
|
(1,345
|
)
|
|
113,299
|
|
|||||
Short-term borrowings
|
|
2,486
|
|
|
—
|
|
|
3,629
|
|
|
—
|
|
|
6,115
|
|
|||||
Long-term debt
|
|
11,887
|
|
|
—
|
|
|
29,603
|
|
|
—
|
|
|
41,490
|
|
|||||
Intercompany debt to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
17
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
801
|
|
|
—
|
|
|
372
|
|
|
(1,173
|
)
|
|
—
|
|
|||||
Intercompany payables to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
46
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
108
|
|
|
—
|
|
|
113
|
|
|
(221
|
)
|
|
—
|
|
|||||
Interest payable
|
|
218
|
|
|
—
|
|
|
478
|
|
|
—
|
|
|
696
|
|
|||||
Unearned insurance premiums and service revenue
|
|
—
|
|
|
—
|
|
|
3,096
|
|
|
—
|
|
|
3,096
|
|
|||||
Accrued expenses and other liabilities
|
|
218
|
|
|
—
|
|
|
3,236
|
|
|
(1,732
|
)
|
|
1,722
|
|
|||||
Total liabilities
|
|
15,781
|
|
|
—
|
|
|
155,171
|
|
|
(4,534
|
)
|
|
166,418
|
|
|||||
Total equity
|
|
13,699
|
|
|
16,499
|
|
|
23,168
|
|
|
(39,667
|
)
|
|
13,699
|
|
|||||
Total liabilities and equity
|
|
$
|
29,480
|
|
|
$
|
16,499
|
|
|
$
|
178,339
|
|
|
$
|
(44,201
|
)
|
|
$
|
180,117
|
|
December 31, 2018
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
55
|
|
|
$
|
—
|
|
|
$
|
755
|
|
|
$
|
—
|
|
|
$
|
810
|
|
Interest-bearing
|
|
5
|
|
|
—
|
|
|
3,722
|
|
|
—
|
|
|
3,727
|
|
|||||
Interest-bearing — intercompany
|
|
1,249
|
|
|
—
|
|
|
521
|
|
|
(1,770
|
)
|
|
—
|
|
|||||
Total cash and cash equivalents
|
|
1,309
|
|
|
—
|
|
|
4,998
|
|
|
(1,770
|
)
|
|
4,537
|
|
|||||
Equity securities
|
|
—
|
|
|
—
|
|
|
773
|
|
|
—
|
|
|
773
|
|
|||||
Available-for-sale securities
|
|
—
|
|
|
—
|
|
|
25,303
|
|
|
—
|
|
|
25,303
|
|
|||||
Held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
2,382
|
|
|
(20
|
)
|
|
2,362
|
|
|||||
Loans held-for-sale, net
|
|
—
|
|
|
—
|
|
|
314
|
|
|
—
|
|
|
314
|
|
|||||
Finance receivables and loans, net
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance receivables and loans, net
|
|
2,349
|
|
|
—
|
|
|
127,577
|
|
|
—
|
|
|
129,926
|
|
|||||
Intercompany loans to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonbank subsidiaries
|
|
882
|
|
|
—
|
|
|
397
|
|
|
(1,279
|
)
|
|
—
|
|
|||||
Allowance for loan losses
|
|
(55
|
)
|
|
—
|
|
|
(1,187
|
)
|
|
—
|
|
|
(1,242
|
)
|
|||||
Total finance receivables and loans, net
|
|
3,176
|
|
|
—
|
|
|
126,787
|
|
|
(1,279
|
)
|
|
128,684
|
|
|||||
Investment in operating leases, net
|
|
5
|
|
|
—
|
|
|
8,412
|
|
|
—
|
|
|
8,417
|
|
|||||
Intercompany receivables from
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
158
|
|
|
—
|
|
|
—
|
|
|
(158
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
45
|
|
|
—
|
|
|
129
|
|
|
(174
|
)
|
|
—
|
|
|||||
Investment in subsidiaries
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
16,213
|
|
|
16,213
|
|
|
—
|
|
|
(32,426
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
6,928
|
|
|
—
|
|
|
—
|
|
|
(6,928
|
)
|
|
—
|
|
|||||
Premiums receivable and other insurance assets
|
|
—
|
|
|
—
|
|
|
2,326
|
|
|
—
|
|
|
2,326
|
|
|||||
Other assets
|
|
2,226
|
|
|
—
|
|
|
5,453
|
|
|
(1,526
|
)
|
|
6,153
|
|
|||||
Total assets
|
|
$
|
30,060
|
|
|
$
|
16,213
|
|
|
$
|
176,877
|
|
|
$
|
(44,281
|
)
|
|
$
|
178,869
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposit liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142
|
|
|
$
|
—
|
|
|
$
|
142
|
|
Interest-bearing
|
|
1
|
|
|
—
|
|
|
106,035
|
|
|
—
|
|
|
106,036
|
|
|||||
Interest-bearing — intercompany
|
|
—
|
|
|
—
|
|
|
1,249
|
|
|
(1,249
|
)
|
|
—
|
|
|||||
Total deposit liabilities
|
|
1
|
|
|
—
|
|
|
107,426
|
|
|
(1,249
|
)
|
|
106,178
|
|
|||||
Short-term borrowings
|
|
2,477
|
|
|
—
|
|
|
7,510
|
|
|
—
|
|
|
9,987
|
|
|||||
Long-term debt
|
|
12,774
|
|
|
—
|
|
|
31,419
|
|
|
—
|
|
|
44,193
|
|
|||||
Intercompany debt to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
20
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
918
|
|
|
—
|
|
|
882
|
|
|
(1,800
|
)
|
|
—
|
|
|||||
Intercompany payables to
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank subsidiary
|
|
45
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|||||
Nonbank subsidiaries
|
|
124
|
|
|
—
|
|
|
129
|
|
|
(253
|
)
|
|
—
|
|
|||||
Interest payable
|
|
159
|
|
|
—
|
|
|
364
|
|
|
—
|
|
|
523
|
|
|||||
Unearned insurance premiums and service revenue
|
|
—
|
|
|
—
|
|
|
3,044
|
|
|
—
|
|
|
3,044
|
|
|||||
Accrued expenses and other liabilities
|
|
274
|
|
|
—
|
|
|
2,962
|
|
|
(1,560
|
)
|
|
1,676
|
|
|||||
Total liabilities
|
|
16,792
|
|
|
—
|
|
|
153,736
|
|
|
(4,927
|
)
|
|
165,601
|
|
|||||
Total equity
|
|
13,268
|
|
|
16,213
|
|
|
23,141
|
|
|
(39,354
|
)
|
|
13,268
|
|
|||||
Total liabilities and equity
|
|
$
|
30,060
|
|
|
$
|
16,213
|
|
|
$
|
176,877
|
|
|
$
|
(44,281
|
)
|
|
$
|
178,869
|
|
Three months ended March 31, 2019
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
155
|
|
|
$
|
400
|
|
|
$
|
1,369
|
|
|
$
|
(843
|
)
|
|
$
|
1,081
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Purchases of equity securities
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(48
|
)
|
|||||
Proceeds from sales of equity securities
|
|
—
|
|
|
—
|
|
|
383
|
|
|
—
|
|
|
383
|
|
|||||
Purchases of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
(3,401
|
)
|
|
—
|
|
|
(3,401
|
)
|
|||||
Proceeds from sales of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
656
|
|
|
—
|
|
|
656
|
|
|||||
Proceeds from repayments of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
694
|
|
|
—
|
|
|
694
|
|
|||||
Purchases of held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
(131
|
)
|
|
—
|
|
|
(131
|
)
|
|||||
Proceeds from repayments of held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||
Net change in investment securities — intercompany
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
—
|
|
|||||
Purchases of finance receivables and loans held-for-investment
|
|
—
|
|
|
—
|
|
|
(1,843
|
)
|
|
391
|
|
|
(1,452
|
)
|
|||||
Proceeds from sales of finance receivables and loans initially held-for-investment
|
|
402
|
|
|
—
|
|
|
146
|
|
|
(391
|
)
|
|
157
|
|
|||||
Originations and repayments of finance receivables and loans held-for-investment and other, net
|
|
301
|
|
|
—
|
|
|
848
|
|
|
—
|
|
|
1,149
|
|
|||||
Net change in loans — intercompany
|
|
507
|
|
|
—
|
|
|
290
|
|
|
(797
|
)
|
|
—
|
|
|||||
Purchases of operating lease assets
|
|
—
|
|
|
—
|
|
|
(792
|
)
|
|
—
|
|
|
(792
|
)
|
|||||
Disposals of operating lease assets
|
|
1
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
624
|
|
|||||
Capital contributions to subsidiaries
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||||
Returns of contributed capital
|
|
15
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|||||
Net change in nonmarketable equity investments
|
|
(1
|
)
|
|
—
|
|
|
172
|
|
|
—
|
|
|
171
|
|
|||||
Other, net
|
|
—
|
|
|
—
|
|
|
(94
|
)
|
|
(1
|
)
|
|
(95
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
1,224
|
|
|
—
|
|
|
(2,450
|
)
|
|
(815
|
)
|
|
(2,041
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in short-term borrowings — third party
|
|
9
|
|
|
—
|
|
|
(3,881
|
)
|
|
—
|
|
|
(3,872
|
)
|
|||||
Net (decrease) increase in deposits
|
|
(1
|
)
|
|
—
|
|
|
7,211
|
|
|
(96
|
)
|
|
7,114
|
|
|||||
Proceeds from issuance of long-term debt — third party
|
|
7
|
|
|
—
|
|
|
1,759
|
|
|
—
|
|
|
1,766
|
|
|||||
Repayments of long-term debt — third party
|
|
(900
|
)
|
|
—
|
|
|
(3,590
|
)
|
|
—
|
|
|
(4,490
|
)
|
|||||
Net change in debt — intercompany
|
|
(118
|
)
|
|
—
|
|
|
(507
|
)
|
|
625
|
|
|
—
|
|
|||||
Repurchase of common stock
|
|
(211
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(211
|
)
|
|||||
Dividends paid — third party
|
|
(70
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(70
|
)
|
|||||
Dividends paid and returns of contributed capital — intercompany
|
|
—
|
|
|
(400
|
)
|
|
(458
|
)
|
|
858
|
|
|
—
|
|
|||||
Capital contributions from parent
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
(1,284
|
)
|
|
(400
|
)
|
|
535
|
|
|
1,386
|
|
|
237
|
|
|||||
Effect of exchange-rate changes on cash and cash equivalents and restricted cash
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
|
95
|
|
|
—
|
|
|
(545
|
)
|
|
(272
|
)
|
|
(722
|
)
|
|||||
Cash and cash equivalents and restricted cash at beginning of year
|
|
1,398
|
|
|
—
|
|
|
5,998
|
|
|
(1,770
|
)
|
|
5,626
|
|
|||||
Cash and cash equivalents and restricted cash at March 31,
|
|
$
|
1,493
|
|
|
$
|
—
|
|
|
$
|
5,453
|
|
|
$
|
(2,042
|
)
|
|
$
|
4,904
|
|
March 31, 2019
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Cash and cash equivalents on the Condensed Consolidated Balance Sheet
|
|
$
|
1,404
|
|
|
$
|
—
|
|
|
$
|
4,595
|
|
|
$
|
(2,042
|
)
|
|
$
|
3,957
|
|
Restricted cash included in other assets on the Condensed Consolidated Balance Sheet (a)
|
|
89
|
|
|
—
|
|
|
858
|
|
|
—
|
|
|
947
|
|
|||||
Total cash and cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows
|
|
$
|
1,493
|
|
|
$
|
—
|
|
|
$
|
5,453
|
|
|
$
|
(2,042
|
)
|
|
$
|
4,904
|
|
(a)
|
Restricted cash balances relate primarily to Ally securitization arrangements. Refer to
Note 10
for additional details describing the nature of restricted cash balances.
|
Three months ended March 31, 2018
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
456
|
|
|
$
|
1,000
|
|
|
$
|
1,812
|
|
|
$
|
(2,171
|
)
|
|
$
|
1,097
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of equity securities
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|
—
|
|
|
(374
|
)
|
|||||
Proceeds from sales of equity securities
|
|
—
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
220
|
|
|||||
Purchases of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
(2,360
|
)
|
|
—
|
|
|
(2,360
|
)
|
|||||
Proceeds from sales of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
328
|
|
|
—
|
|
|
328
|
|
|||||
Proceeds from repayments of available-for-sale securities
|
|
—
|
|
|
—
|
|
|
795
|
|
|
—
|
|
|
795
|
|
|||||
Purchases of held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
(155
|
)
|
|||||
Proceeds from repayments of held-to-maturity securities
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
35
|
|
|||||
Net change in investment securities — intercompany
|
|
—
|
|
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
—
|
|
|||||
Purchases of finance receivables and loans held-for-investment
|
|
—
|
|
|
—
|
|
|
(2,317
|
)
|
|
820
|
|
|
(1,497
|
)
|
|||||
Proceeds from sales of finance receivables and loans initially held-for-investment
|
|
820
|
|
|
—
|
|
|
—
|
|
|
(820
|
)
|
|
—
|
|
|||||
Originations and repayments of finance receivables and loans held-for-investment and other, net
|
|
432
|
|
|
—
|
|
|
(1,732
|
)
|
|
—
|
|
|
(1,300
|
)
|
|||||
Net change in loans — intercompany
|
|
(423
|
)
|
|
—
|
|
|
1
|
|
|
422
|
|
|
—
|
|
|||||
Purchases of operating lease assets
|
|
—
|
|
|
—
|
|
|
(969
|
)
|
|
—
|
|
|
(969
|
)
|
|||||
Disposals of operating lease assets
|
|
4
|
|
|
—
|
|
|
972
|
|
|
—
|
|
|
976
|
|
|||||
Capital contributions to subsidiaries
|
|
(49
|
)
|
|
(6
|
)
|
|
—
|
|
|
55
|
|
|
—
|
|
|||||
Returns of contributed capital
|
|
38
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|||||
Net change in nonmarketable equity investments
|
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||||
Other, net
|
|
(3
|
)
|
|
—
|
|
|
(80
|
)
|
|
1
|
|
|
(82
|
)
|
|||||
Net cash provided by (used in) investing activities
|
|
819
|
|
|
(6
|
)
|
|
(5,646
|
)
|
|
431
|
|
|
(4,402
|
)
|
|||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net change in short-term borrowings — third party
|
|
(214
|
)
|
|
—
|
|
|
(1,634
|
)
|
|
—
|
|
|
(1,848
|
)
|
|||||
Net (decrease) increase in deposits
|
|
(6
|
)
|
|
—
|
|
|
3,776
|
|
|
403
|
|
|
4,173
|
|
|||||
Proceeds from issuance of long-term debt — third party
|
|
15
|
|
|
—
|
|
|
6,650
|
|
|
—
|
|
|
6,665
|
|
|||||
Repayments of long-term debt — third party
|
|
(1,152
|
)
|
|
—
|
|
|
(4,619
|
)
|
|
—
|
|
|
(5,771
|
)
|
|||||
Net change in debt — intercompany
|
|
(127
|
)
|
|
—
|
|
|
422
|
|
|
(295
|
)
|
|
—
|
|
|||||
Repurchase of common stock
|
|
(185
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(185
|
)
|
|||||
Dividends paid — third party
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
|||||
Dividends paid and returns of contributed capital — intercompany
|
|
—
|
|
|
(1,000
|
)
|
|
(1,208
|
)
|
|
2,208
|
|
|
—
|
|
|||||
Capital contributions from parent
|
|
—
|
|
|
6
|
|
|
49
|
|
|
(55
|
)
|
|
—
|
|
|||||
Net cash (used in) provided by financing activities
|
|
(1,727
|
)
|
|
(994
|
)
|
|
3,436
|
|
|
2,261
|
|
|
2,976
|
|
|||||
Effect of exchange-rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Net decrease in cash and cash equivalents and restricted cash
|
|
(452
|
)
|
|
—
|
|
|
(400
|
)
|
|
521
|
|
|
(331
|
)
|
|||||
Cash and cash equivalents and restricted cash at beginning of year
|
|
1,395
|
|
|
—
|
|
|
5,707
|
|
|
(1,833
|
)
|
|
5,269
|
|
|||||
Cash and cash equivalents and restricted cash at March 31,
|
|
$
|
943
|
|
|
$
|
—
|
|
|
$
|
5,307
|
|
|
$
|
(1,312
|
)
|
|
$
|
4,938
|
|
March 31, 2018
($ in millions)
|
|
Parent
|
|
Guarantors
|
|
Nonguarantors
|
|
Consolidating adjustments
|
|
Ally consolidated
|
||||||||||
Cash and cash equivalents on the Condensed Consolidated Balance Sheet
|
|
$
|
796
|
|
|
$
|
—
|
|
|
$
|
4,237
|
|
|
$
|
(1,312
|
)
|
|
$
|
3,721
|
|
Restricted cash included in other assets on the Condensed Consolidated Balance Sheet (a)
|
|
147
|
|
|
—
|
|
|
1,070
|
|
|
—
|
|
|
1,217
|
|
|||||
Total cash and cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows
|
|
$
|
943
|
|
|
$
|
—
|
|
|
$
|
5,307
|
|
|
$
|
(1,312
|
)
|
|
$
|
4,938
|
|
(a)
|
Restricted cash balances relate primarily to Ally securitization arrangements. Refer to
Note 10
for additional details describing the nature of restricted cash balances.
|
|
|
Three months ended March 31,
|
||||||
($ in millions, except per share data; shares in thousands)
|
|
2019
|
|
2018
|
||||
Total financing revenue and other interest income
|
|
$
|
2,433
|
|
|
$
|
2,116
|
|
Total interest expense
|
|
1,055
|
|
|
794
|
|
||
Net depreciation expense on operating lease assets
|
|
246
|
|
|
273
|
|
||
Net financing revenue and other interest income
|
|
1,132
|
|
|
1,049
|
|
||
Total other revenue
|
|
466
|
|
|
354
|
|
||
Total net revenue
|
|
1,598
|
|
|
1,403
|
|
||
Provision for loan losses
|
|
282
|
|
|
261
|
|
||
Total noninterest expense
|
|
830
|
|
|
814
|
|
||
Income from continuing operations before income tax expense
|
|
486
|
|
|
328
|
|
||
Income tax expense from continuing operations
|
|
111
|
|
|
76
|
|
||
Net income from continuing operations
|
|
375
|
|
|
252
|
|
||
Loss from discontinued operations, net of tax
|
|
(1
|
)
|
|
(2
|
)
|
||
Net income
|
|
$
|
374
|
|
|
$
|
250
|
|
Basic earnings per common share (a):
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.93
|
|
|
$
|
0.58
|
|
Net income
|
|
0.93
|
|
|
0.57
|
|
||
Weighted-average common shares outstanding
|
|
404,129
|
|
|
436,213
|
|
||
Diluted earnings per common share (a):
|
|
|
|
|
||||
Net income from continuing operations
|
|
$
|
0.92
|
|
|
$
|
0.57
|
|
Net income
|
|
0.92
|
|
|
0.57
|
|
||
Weighted-average common shares outstanding
|
|
405,959
|
|
|
438,931
|
|
||
Common share information:
|
|
|
|
|
||||
Cash dividends declared per common share
|
|
$
|
0.17
|
|
|
$
|
0.13
|
|
Period-end common shares outstanding
|
|
399,761
|
|
|
432,691
|
|
(a)
|
Includes shares related to share-based compensation that vested but were not yet issued
.
|
March 31,
($ in millions)
|
|
2019
|
|
2018
|
||||
Selected period-end balance sheet data:
|
|
|
|
|
||||
Total assets
|
|
$
|
180,117
|
|
|
$
|
170,021
|
|
Total deposit liabilities
|
|
$
|
113,299
|
|
|
$
|
97,446
|
|
Long-term debt
|
|
$
|
41,490
|
|
|
$
|
45,076
|
|
Total equity
|
|
$
|
13,699
|
|
|
$
|
13,082
|
|
|
|
Three months ended March 31,
|
||||
|
|
2019
|
|
2018
|
||
Financial ratios:
|
|
|
|
|
||
Return on average assets (a)
|
|
0.85
|
%
|
|
0.61
|
%
|
Return on average equity (a)
|
|
11.37
|
%
|
|
7.68
|
%
|
Equity to assets (a)
|
|
7.51
|
%
|
|
7.88
|
%
|
Common dividend payout ratio (b)
|
|
18.28
|
%
|
|
22.81
|
%
|
Net interest spread (a) (c)
|
|
2.46
|
%
|
|
2.48
|
%
|
Net yield on interest-earning assets (a) (d)
|
|
2.67
|
%
|
|
2.64
|
%
|
(a)
|
The ratios were based on average assets and average equity using a combination of monthly and daily average methodologies.
|
(b)
|
Common dividend payout ratio was calculated using basic earnings per common share.
|
(c)
|
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.
|
(d)
|
Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets.
|
|
|
March 31, 2019
|
|
March 31, 2018
|
||||||||||||
($ in millions)
|
|
Transitional
|
|
Fully phased-in (a)
|
|
Transitional
|
|
Fully phased-in (a)
|
||||||||
Common Equity Tier 1 capital ratio
|
|
9.33
|
%
|
|
9.32
|
%
|
|
9.26
|
%
|
|
9.24
|
%
|
||||
Tier 1 capital ratio
|
|
10.99
|
%
|
|
10.98
|
%
|
|
10.98
|
%
|
|
10.96
|
%
|
||||
Total capital ratio
|
|
12.54
|
%
|
|
12.53
|
%
|
|
12.57
|
%
|
|
12.55
|
%
|
||||
Tier 1 leverage ratio (to adjusted quarterly average assets) (b)
|
|
9.02
|
%
|
|
9.02
|
%
|
|
9.26
|
%
|
|
9.26
|
%
|
||||
Total equity
|
|
$
|
13,699
|
|
|
$
|
13,699
|
|
|
$
|
13,082
|
|
|
$
|
13,082
|
|
Goodwill and certain other intangibles
|
|
(283
|
)
|
|
(283
|
)
|
|
(292
|
)
|
|
(292
|
)
|
||||
Deferred tax assets arising from net operating loss and tax credit carryforwards (c)
|
|
(56
|
)
|
|
(56
|
)
|
|
(309
|
)
|
|
(309
|
)
|
||||
Other adjustments
|
|
243
|
|
|
243
|
|
|
598
|
|
|
598
|
|
||||
Common Equity Tier 1 capital
|
|
13,603
|
|
|
13,603
|
|
|
13,079
|
|
|
13,079
|
|
||||
Trust preferred securities
|
|
2,494
|
|
|
2,494
|
|
|
2,492
|
|
|
2,492
|
|
||||
Other adjustments
|
|
(62
|
)
|
|
(62
|
)
|
|
(59
|
)
|
|
(59
|
)
|
||||
Tier 1 capital
|
|
16,035
|
|
|
16,035
|
|
|
15,512
|
|
|
15,512
|
|
||||
Qualifying subordinated debt and other instruments qualifying as Tier 2
|
|
1,031
|
|
|
1,031
|
|
|
1,029
|
|
|
1,029
|
|
||||
Qualifying allowance for credit losses and other adjustments
|
|
1,226
|
|
|
1,226
|
|
|
1,219
|
|
|
1,219
|
|
||||
Total capital
|
|
$
|
18,292
|
|
|
$
|
18,292
|
|
|
$
|
17,760
|
|
|
$
|
17,760
|
|
Risk-weighted assets (d)
|
|
$
|
145,865
|
|
|
$
|
145,984
|
|
|
$
|
141,246
|
|
|
$
|
141,561
|
|
(a)
|
Our fully phased-in capital ratios are non-GAAP financial measures that management believes are important to the reader of the
Condensed 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.
|
(b)
|
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).
|
(c)
|
Contains deferred tax assets required to be deducted from capital under U.S. Basel III.
|
(d)
|
Risk-weighted assets are defined by regulation and are generally determined by allocating assets and specified off-balance sheet exposures into various risk categories.
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Total net revenue
|
|
|
|
|
|
|
||||
Dealer Financial Services
|
|
|
|
|
|
|
||||
Automotive Finance
|
|
$
|
1,048
|
|
|
$
|
975
|
|
|
7
|
Insurance
|
|
372
|
|
|
258
|
|
|
44
|
||
Mortgage Finance
|
|
52
|
|
|
44
|
|
|
18
|
||
Corporate Finance
|
|
65
|
|
|
54
|
|
|
20
|
||
Corporate and Other
|
|
61
|
|
|
72
|
|
|
(15)
|
||
Total
|
|
$
|
1,598
|
|
|
$
|
1,403
|
|
|
14
|
Income (loss) from continuing operations before income tax expense
|
|
|
|
|
|
|
||||
Dealer Financial Services
|
|
|
|
|
|
|
||||
Automotive Finance
|
|
$
|
329
|
|
|
$
|
268
|
|
|
23
|
Insurance
|
|
145
|
|
|
27
|
|
|
n/m
|
||
Mortgage Finance
|
|
13
|
|
|
8
|
|
|
63
|
||
Corporate Finance
|
|
13
|
|
|
29
|
|
|
(55)
|
||
Corporate and Other
|
|
(14
|
)
|
|
(4
|
)
|
|
n/m
|
||
Total
|
|
$
|
486
|
|
|
$
|
328
|
|
|
48
|
•
|
Our Dealer Financial Services is one of the largest full service automotive finance operations in the country and offers a wide range of financial services and insurance products to automotive dealerships and customers. Dealer Financial Services consists of two separate reportable segments—Automotive Finance and Insurance operations.
|
•
|
Our Mortgage Finance operations consist of the management of held-for-investment and held-for-sale consumer mortgage loan portfolios. Our held-for-investment portfolio includes bulk purchases of high-quality jumbo and low-to-moderate income (LMI) mortgage loans originated by third parties, and a direct-to-consumer mortgage offering under the Ally Home brand.
|
•
|
Our Corporate Finance operations primarily provide senior secured leveraged cash flow and asset-based loans to mostly U.S.-based middle-market companies. We believe our growing deposit-based funding model, coupled with our expanded product offerings and deep industry relationships, provide an advantage over our competition, which includes other banks as well as publicly and privately held finance companies. Our Corporate Finance lending portfolio is generally composed of first-lien, first-out loans. Our primary focus is on businesses owned by private equity sponsors with loans typically used for leveraged buyouts, mergers and acquisitions, debt refinancing, expansions, restructurings, and working capital. The portfolio is well diversified across multiple industries including manufacturing, distribution, services, and other specialty sectors. These specialty sectors include our Technology Finance and Healthcare verticals. Our Technology Finance vertical provides financing solutions to venture capital-backed, technology-based companies. The Healthcare vertical provides financing across the healthcare spectrum including services, pharmaceutical distribution, manufacturing, and medical devices and supplies. Additionally, in late 2017, we launched a commercial real estate product focused on lending to skilled nursing facilities, senior housing, medical office buildings, and hospitals.
|
•
|
Corporate and Other primarily consists of centralized corporate treasury activities such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate funds-transfer pricing (FTP) and treasury asset liability management (ALM) activities. Corporate and Other also includes activity related to the Ally CashBack credit card, certain equity investments, which primarily consist of Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock, the management of our legacy mortgage portfolio, which primarily consists of loans originated prior to January 1, 2009, and reclassifications and eliminations between the reportable operating segments.
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
||||
Total financing revenue and other interest income
|
|
$
|
2,433
|
|
|
$
|
2,116
|
|
|
15
|
Total interest expense
|
|
1,055
|
|
|
794
|
|
|
(33)
|
||
Net depreciation expense on operating lease assets
|
|
246
|
|
|
273
|
|
|
10
|
||
Net financing revenue and other interest income
|
|
1,132
|
|
|
1,049
|
|
|
8
|
||
Other revenue
|
|
|
|
|
|
|
||||
Insurance premiums and service revenue earned
|
|
261
|
|
|
256
|
|
|
2
|
||
Gain on mortgage and automotive loans, net
|
|
10
|
|
|
1
|
|
|
n/m
|
||
Other gain (loss) on investments, net
|
|
108
|
|
|
(12
|
)
|
|
n/m
|
||
Other income, net of losses
|
|
87
|
|
|
109
|
|
|
(20)
|
||
Total other revenue
|
|
466
|
|
|
354
|
|
|
32
|
||
Total net revenue
|
|
1,598
|
|
|
1,403
|
|
|
14
|
||
Provision for loan losses
|
|
282
|
|
|
261
|
|
|
(8)
|
||
Noninterest expense
|
|
|
|
|
|
|
||||
Compensation and benefits expense
|
|
318
|
|
|
306
|
|
|
(4)
|
||
Insurance losses and loss adjustment expenses
|
|
59
|
|
|
63
|
|
|
6
|
||
Other operating expenses
|
|
453
|
|
|
445
|
|
|
(2)
|
||
Total noninterest expense
|
|
830
|
|
|
814
|
|
|
(2)
|
||
Income from continuing operations before income tax expense
|
|
486
|
|
|
328
|
|
|
48
|
||
Income tax expense from continuing operations
|
|
111
|
|
|
76
|
|
|
(46)
|
||
Net income from continuing operations
|
|
$
|
375
|
|
|
$
|
252
|
|
|
49
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
||||
Consumer
|
|
$
|
1,130
|
|
|
$
|
1,012
|
|
|
12
|
Commercial
|
|
422
|
|
|
342
|
|
|
23
|
||
Loans held-for-sale
|
|
1
|
|
|
—
|
|
|
n/m
|
||
Operating leases
|
|
361
|
|
|
382
|
|
|
(5)
|
||
Other interest income
|
|
1
|
|
|
2
|
|
|
(50)
|
||
Total financing revenue and other interest income
|
|
1,915
|
|
|
1,738
|
|
|
10
|
||
Interest expense
|
|
689
|
|
|
556
|
|
|
(24)
|
||
Net depreciation expense on operating lease assets
|
|
246
|
|
|
273
|
|
|
10
|
||
Net financing revenue and other interest income
|
|
980
|
|
|
909
|
|
|
8
|
||
Other revenue
|
|
|
|
|
|
|
||||
Gain on automotive loans, net
|
|
8
|
|
|
—
|
|
|
n/m
|
||
Other income
|
|
60
|
|
|
66
|
|
|
(9)
|
||
Total other revenue
|
|
68
|
|
|
66
|
|
|
3
|
||
Total net revenue
|
|
1,048
|
|
|
975
|
|
|
7
|
||
Provision for loan losses
|
|
262
|
|
|
259
|
|
|
(1)
|
||
Noninterest expense
|
|
|
|
|
|
|
||||
Compensation and benefits expense
|
|
136
|
|
|
131
|
|
|
(4)
|
||
Other operating expenses
|
|
321
|
|
|
317
|
|
|
(1)
|
||
Total noninterest expense
|
|
457
|
|
|
448
|
|
|
(2)
|
||
Income from continuing operations before income tax expense
|
|
$
|
329
|
|
|
$
|
268
|
|
|
23
|
Total assets
|
|
$
|
115,789
|
|
|
$
|
114,934
|
|
|
1
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net operating lease revenue
|
|
|
|
|
|
|
||||
Operating lease revenue
|
|
$
|
361
|
|
|
$
|
382
|
|
|
(5)
|
Depreciation expense
|
|
|
|
|
|
|
||||
Depreciation expense on operating lease assets (excluding remarketing gains)
|
|
261
|
|
|
291
|
|
|
10
|
||
Remarketing gains, net
|
|
(15
|
)
|
|
(18
|
)
|
|
(17)
|
||
Net depreciation expense on operating lease assets
|
|
246
|
|
|
273
|
|
|
10
|
||
Total net operating lease revenue
|
|
$
|
115
|
|
|
$
|
109
|
|
|
6
|
Investment in operating leases, net
|
|
$
|
8,339
|
|
|
$
|
8,530
|
|
|
(2)
|
|
|
2019
|
|
2018
|
||||||||
Three months ended March 31,
($ in millions)
|
|
Average balance (a)
|
Yield
|
|
Average balance
|
Yield
|
||||||
Finance receivables and loans, net (b)
|
|
|
|
|
|
|
||||||
Consumer automotive (c)
|
|
$
|
70,981
|
|
6.47
|
%
|
|
$
|
68,727
|
|
5.90
|
%
|
Commercial
|
|
|
|
|
|
|
||||||
Wholesale floorplan
|
|
29,990
|
|
4.83
|
|
|
29,359
|
|
3.83
|
|
||
Other commercial automotive (d)
|
|
5,565
|
|
4.74
|
|
|
6,104
|
|
4.32
|
|
||
Investment in operating leases, net (e)
|
|
8,389
|
|
5.56
|
|
|
8,629
|
|
5.12
|
|
(a)
|
Average balances are calculated using a combination of monthly and daily average methodologies.
|
(b)
|
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 in our 2018 Annual Report on Form 10-K.
|
(c)
|
Includes the effects of derivative financial instruments designated as hedges.
|
(d)
|
Consists primarily of automotive dealer term loans, including those to finance dealership land and buildings, and dealer fleet financing.
|
(e)
|
Yield includes gains on the sale of off-lease vehicles of
$15 million
and
$18 million
, for the
three months ended
March 31, 2019
, and
2018
, respectively. Excluding these gains on sale, the annualized yield would be
4.83%
and
4.28%
for the
three months ended
March 31, 2019
, and
2018
, respectively.
|
|
|
Used retail
|
|
New retail
|
|||||||||||||||
Credit Tier (a)
|
|
Volume
($ in billions)
|
|
% Share of volume
|
|
Average FICO®
|
|
Volume
($ in billions)
|
|
% Share of volume
|
|
Average FICO®
|
|||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
S
|
|
$
|
1.4
|
|
|
27
|
|
739
|
|
|
$
|
1.5
|
|
|
48
|
|
|
745
|
|
A
|
|
2.1
|
|
|
40
|
|
677
|
|
|
1.1
|
|
|
36
|
|
|
675
|
|
||
B
|
|
1.3
|
|
|
25
|
|
644
|
|
|
0.4
|
|
|
13
|
|
|
642
|
|
||
C
|
|
0.4
|
|
|
8
|
|
610
|
|
|
0.1
|
|
|
3
|
|
|
611
|
|
||
Total retail originations
|
|
$
|
5.2
|
|
|
100
|
|
681
|
|
|
$
|
3.1
|
|
|
100
|
|
|
701
|
|
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
S
|
|
$
|
1.4
|
|
|
29
|
|
739
|
|
|
$
|
1.8
|
|
|
50
|
|
|
748
|
|
A
|
|
2.0
|
|
|
42
|
|
673
|
|
|
1.2
|
|
|
33
|
|
|
675
|
|
||
B
|
|
1.1
|
|
|
23
|
|
641
|
|
|
0.5
|
|
|
14
|
|
|
644
|
|
||
C
|
|
0.3
|
|
|
6
|
|
606
|
|
|
0.1
|
|
|
3
|
|
|
612
|
|
||
Total retail originations
|
|
$
|
4.8
|
|
|
100
|
|
681
|
|
|
$
|
3.6
|
|
|
100
|
|
|
704
|
|
(a)
|
Represents Ally’s internal credit score, incorporating numerous borrower and structure attributes including: severity and aging of delinquency; number of credit inquiries; loan-to-value (LTV) ratio; and payment-to-income ratio. We periodically update our underwriting scorecard, which can have an impact on our credit tier scoring. We originated an insignificant amount of retail loans classified below Tier C during the periods presented.
|
(a)
|
Excludes RV loans.
|
March 31,
|
|
2019
|
|
2018
|
||
Pre-2015
|
|
4
|
%
|
|
9
|
%
|
2015
|
|
9
|
|
|
17
|
|
2016
|
|
16
|
|
|
26
|
|
2017
|
|
24
|
|
|
36
|
|
2018
|
|
35
|
|
|
12
|
|
2019
|
|
12
|
|
|
—
|
|
Total
|
|
100
|
%
|
|
100
|
%
|
(a)
|
Includes Commercial Services Group (CSG) originations of
$976 million
and
$992 million
for the
three months ended
March 31, 2019
, and
2018
, respectively, and RV originations of
$100 million
for the
three months ended
March 31, 2018
.
|
|
|
Used retail
|
|
New retail
|
|
Lease
|
||||||||||||
Three months ended March 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
740 +
|
|
19
|
%
|
|
19
|
%
|
|
25
|
%
|
|
27
|
%
|
|
47
|
%
|
|
48
|
%
|
660–739
|
|
39
|
|
|
38
|
|
|
33
|
|
|
34
|
|
|
35
|
|
|
35
|
|
620
–
659
|
|
26
|
|
|
28
|
|
|
20
|
|
|
20
|
|
|
11
|
|
|
10
|
|
540–619
|
|
12
|
|
|
12
|
|
|
6
|
|
|
6
|
|
|
5
|
|
|
5
|
|
< 540
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
Unscored (a)
|
|
3
|
|
|
2
|
|
|
15
|
|
|
12
|
|
|
2
|
|
|
2
|
|
Total consumer automotive financing originations
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
(a)
|
Unscored are primarily CSG contracts with business entities that have no FICO® Score.
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Insurance premiums and other income
|
|
|
|
|
|
|
||||
Insurance premiums and service revenue earned
|
|
$
|
261
|
|
|
$
|
256
|
|
|
2
|
Interest and dividends on investment securities and cash and cash equivalents, net (a)
|
|
12
|
|
|
12
|
|
|
—
|
||
Other gain (loss) on investments, net (b)
|
|
95
|
|
|
(14
|
)
|
|
n/m
|
||
Other income
|
|
4
|
|
|
4
|
|
|
—
|
||
Total insurance premiums and other income
|
|
372
|
|
|
258
|
|
|
44
|
||
Expense
|
|
|
|
|
|
|
||||
Insurance losses and loss adjustment expenses
|
|
59
|
|
|
63
|
|
|
6
|
||
Acquisition and underwriting expense
|
|
|
|
|
|
|
||||
Compensation and benefits expense
|
|
21
|
|
|
21
|
|
|
—
|
||
Insurance commissions expense
|
|
114
|
|
|
110
|
|
|
(4)
|
||
Other expenses
|
|
33
|
|
|
37
|
|
|
11
|
||
Total acquisition and underwriting expense
|
|
168
|
|
|
168
|
|
|
—
|
||
Total expense
|
|
227
|
|
|
231
|
|
|
2
|
||
Income from continuing operations before income tax expense
|
|
$
|
145
|
|
|
$
|
27
|
|
|
n/m
|
Total assets
|
|
$
|
8,179
|
|
|
$
|
7,557
|
|
|
8
|
Insurance premiums and service revenue written
|
|
$
|
305
|
|
|
$
|
275
|
|
|
11
|
Combined ratio (c)
|
|
85.7
|
%
|
|
88.8
|
%
|
|
|
(a)
|
Includes interest expense of
$19 million
and
$16 million
for the
three months ended
March 31, 2019
, and
2018
, respectively. The amount for the
three months ended
March 31, 2018
, was adjusted to include $2 million of interest on cash and cash equivalents previously classified as other income to conform to the current period presentation.
|
(b)
|
Includes net unrealized gains on equity investments of
$65 million
for the
three months ended
March 31, 2019
, and net unrealized losses of $35 million for the
three months ended
March 31, 2018
.
|
(c)
|
Management uses a combined ratio as a primary measure of underwriting profitability. Underwriting profitability is indicated by a combined ratio under 100% and is calculated as the sum of all incurred losses and expenses (excluding interest and income tax expense) divided by the total of premiums and service revenues earned and other income.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Vehicle service contracts
|
|
|
|
|
||||
New retail
|
|
$
|
100
|
|
|
$
|
107
|
|
Used retail
|
|
158
|
|
|
131
|
|
||
Reinsurance (a)
|
|
(55
|
)
|
|
(47
|
)
|
||
Total vehicle service contracts (b)
|
|
203
|
|
|
191
|
|
||
Vehicle inventory insurance (c)
|
|
76
|
|
|
62
|
|
||
Other (d)
|
|
26
|
|
|
22
|
|
||
Total
|
|
$
|
305
|
|
|
$
|
275
|
|
(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)
|
Vehicle inventory insurance includes dealer ancillary products.
|
(d)
|
Other products include GAP coverage, VMCs, ClearGuard, and other ancillary products.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Cash
|
|
|
|
|
||||
Noninterest-bearing cash
|
|
$
|
195
|
|
|
$
|
252
|
|
Interest-bearing cash
|
|
1,073
|
|
|
644
|
|
||
Total cash
|
|
1,268
|
|
|
896
|
|
||
Equity securities
|
|
525
|
|
|
766
|
|
||
Available-for-sale securities
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
||||
U.S. Treasury and federal agencies
|
|
533
|
|
|
460
|
|
||
U.S. States and political subdivisions
|
|
666
|
|
|
691
|
|
||
Foreign government
|
|
172
|
|
|
145
|
|
||
Agency mortgage-backed residential
|
|
923
|
|
|
758
|
|
||
Mortgage-backed residential
|
|
132
|
|
|
135
|
|
||
Corporate debt
|
|
1,294
|
|
|
1,241
|
|
||
Total available-for-sale securities
|
|
3,720
|
|
|
3,430
|
|
||
Total cash and securities
|
|
$
|
5,513
|
|
|
$
|
5,092
|
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
||||
Total financing revenue and other interest income
|
|
$
|
146
|
|
|
$
|
105
|
|
|
39
|
Interest expense
|
|
96
|
|
|
62
|
|
|
(55)
|
||
Net financing revenue and other interest income
|
|
50
|
|
|
43
|
|
|
16
|
||
Gain on mortgage loans, net
|
|
2
|
|
|
1
|
|
|
100
|
||
Total net revenue
|
|
52
|
|
|
44
|
|
|
18
|
||
Provision for loan losses
|
|
2
|
|
|
2
|
|
|
—
|
||
Noninterest expense
|
|
|
|
|
|
|
||||
Compensation and benefits expense
|
|
8
|
|
|
8
|
|
|
—
|
||
Other operating expenses
|
|
29
|
|
|
26
|
|
|
(12)
|
||
Total noninterest expense
|
|
37
|
|
|
34
|
|
|
(9)
|
||
Income from continuing operations before income tax expense
|
|
$
|
13
|
|
|
$
|
8
|
|
|
63
|
Total assets
|
|
$
|
16,301
|
|
|
$
|
12,780
|
|
|
28
|
FICO® Score
|
|
Volume
($ in millions)
|
|
% Share of volume
|
||
Three months ended March 31, 2019
|
|
|
|
|
||
740 +
|
|
$
|
1,198
|
|
|
80
|
720–739
|
|
163
|
|
|
11
|
|
700–719
|
|
130
|
|
|
9
|
|
680–699
|
|
6
|
|
|
—
|
|
Total consumer mortgage financing volume
|
|
$
|
1,497
|
|
|
100
|
Three months ended March 31, 2018
|
|
|
|
|
||
740 +
|
|
$
|
1,094
|
|
|
79
|
720–739
|
|
132
|
|
|
9
|
|
700–719
|
|
105
|
|
|
8
|
|
680–699
|
|
55
|
|
|
4
|
|
Total consumer mortgage financing volume
|
|
$
|
1,386
|
|
|
100
|
Product
|
|
Net UPB (a)
($ in millions)
|
|
% of total net UPB
|
|
WAC
|
|
Net premium
($ in millions)
|
|
Average refreshed LTV (b)
|
|
Average refreshed FICO® (c)
|
|||||||
March 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjustable-rate
|
|
$
|
2,773
|
|
|
17
|
|
3.42
|
%
|
|
$
|
36
|
|
|
54.37
|
%
|
|
774
|
|
Fixed-rate
|
|
13,161
|
|
|
83
|
|
4.20
|
|
|
255
|
|
|
62.05
|
|
|
772
|
|
||
Total
|
|
$
|
15,934
|
|
|
100
|
|
4.06
|
|
|
$
|
291
|
|
|
60.71
|
|
|
772
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjustable-rate
|
|
$
|
2,828
|
|
|
19
|
|
3.40
|
%
|
|
$
|
37
|
|
|
53.69
|
%
|
|
775
|
|
Fixed-rate
|
|
12,042
|
|
|
81
|
|
4.15
|
|
|
248
|
|
|
60.97
|
|
|
774
|
|
||
Total
|
|
$
|
14,870
|
|
|
100
|
|
4.01
|
|
|
$
|
285
|
|
|
59.58
|
|
|
774
|
|
(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.
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
||||
Interest and fees on finance receivables and loans
|
|
$
|
89
|
|
|
$
|
74
|
|
|
20
|
Interest on loans held-for-sale
|
|
1
|
|
|
—
|
|
|
n/m
|
||
Interest expense
|
|
36
|
|
|
28
|
|
|
(29)
|
||
Net financing revenue and other interest income
|
|
54
|
|
|
46
|
|
|
17
|
||
Total other revenue
|
|
11
|
|
|
8
|
|
|
38
|
||
Total net revenue
|
|
65
|
|
|
54
|
|
|
20
|
||
Provision for loan losses
|
|
23
|
|
|
—
|
|
|
n/m
|
||
Noninterest expense
|
|
|
|
|
|
|
||||
Compensation and benefits expense
|
|
19
|
|
|
15
|
|
|
(27)
|
||
Other operating expenses
|
|
10
|
|
|
10
|
|
|
—
|
||
Total noninterest expense
|
|
29
|
|
|
25
|
|
|
(16)
|
||
Income from continuing operations before income tax expense
|
|
$
|
13
|
|
|
$
|
29
|
|
|
(55)
|
Total assets
|
|
$
|
5,006
|
|
|
$
|
4,375
|
|
|
14
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Loans held-for-sale, net
|
|
$
|
24
|
|
|
$
|
47
|
|
Finance receivables and loans
|
|
$
|
5,001
|
|
|
$
|
4,636
|
|
Unfunded lending commitments (a)
|
|
$
|
2,150
|
|
|
$
|
2,141
|
|
Total serviced loans
|
|
$
|
5,646
|
|
|
$
|
5,501
|
|
(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 in the event of a draw by the beneficiary thereunder. As many of these commitments are subject to borrowing base agreements and other restrictive covenants or may expire without being fully drawn, the stated amounts of these letters of credit are not necessarily indicative of future cash requirements.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||
Industry
|
|
|
|
|
||
Health services
|
|
28.0
|
%
|
|
24.5
|
%
|
Services
|
|
23.2
|
|
|
25.6
|
|
Automotive and transportation
|
|
13.0
|
|
|
12.3
|
|
Wholesale
|
|
7.2
|
|
|
7.5
|
|
Machinery, equipment, and electronics
|
|
5.9
|
|
|
6.0
|
|
Chemicals and metals
|
|
5.1
|
|
|
4.9
|
|
Other manufactured products
|
|
4.7
|
|
|
4.7
|
|
Food and beverages
|
|
4.6
|
|
|
5.0
|
|
Paper, printing, and publishing
|
|
2.2
|
|
|
2.8
|
|
Retail trade
|
|
2.0
|
|
|
1.3
|
|
Other
|
|
4.1
|
|
|
5.4
|
|
Total finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
Three months ended March 31,
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Favorable/(unfavorable) % change
|
||||
Net financing revenue and other interest income
|
|
|
|
|
|
|
||||
Interest and fees on finance receivables and loans (a)
|
|
$
|
21
|
|
|
$
|
10
|
|
|
110
|
Interest and dividends on investment securities and other earning assets
|
|
213
|
|
|
150
|
|
|
42
|
||
Interest on cash and cash equivalents
|
|
19
|
|
|
13
|
|
|
46
|
||
Other, net
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
||
Total financing revenue and other interest income
|
|
251
|
|
|
171
|
|
|
47
|
||
Interest expense
|
|
|
|
|
|
|
||||
Original issue discount amortization (b)
|
|
10
|
|
|
24
|
|
|
58
|
||
Other interest expense (c)
|
|
205
|
|
|
108
|
|
|
(90)
|
||
Total interest expense
|
|
215
|
|
|
132
|
|
|
(63)
|
||
Net financing revenue and other interest income
|
|
36
|
|
|
39
|
|
|
(8)
|
||
Other revenue
|
|
|
|
|
|
|
||||
Other gain on investments, net
|
|
9
|
|
|
6
|
|
|
50
|
||
Other income, net of losses
|
|
16
|
|
|
27
|
|
|
(41)
|
||
Total other revenue
|
|
25
|
|
|
33
|
|
|
(24)
|
||
Total net revenue
|
|
61
|
|
|
72
|
|
|
(15)
|
||
Provision for loan losses
|
|
(5
|
)
|
|
—
|
|
|
n/m
|
||
Total noninterest expense (d)
|
|
80
|
|
|
76
|
|
|
(5)
|
||
Loss from continuing operations before income tax expense
|
|
$
|
(14
|
)
|
|
$
|
(4
|
)
|
|
n/m
|
Total assets
|
|
$
|
34,842
|
|
|
$
|
30,375
|
|
|
15
|
(a)
|
Primarily related to impacts associated with hedging activities within our consumer automotive loan portfolio and financing revenue from our legacy mortgage portfolio.
|
(b)
|
Amortization is included as interest on long-term debt in the
Condensed Consolidated Statement of Comprehensive Income
.
|
(c)
|
Includes the residual impacts of our FTP methodology and impacts of hedging activities of certain debt obligations.
|
(d)
|
Includes reductions of
$229 million
and
$220 million
for the
three months ended
March 31, 2019
, and
2018
, respectively, related to the allocation of corporate overhead expenses to other segments. The receiving segments record their allocation of corporate overhead expense within other operating expense.
|
Year ended December 31,
($ in millions)
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
2024 and thereafter (a)
|
|
Total
|
||||||||||||||
Original issue discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Outstanding balance at year end
|
|
$
|
1,094
|
|
|
$
|
1,053
|
|
|
$
|
1,008
|
|
|
$
|
959
|
|
|
$
|
903
|
|
|
$
|
—
|
|
|
|
||
Total amortization (b)
|
|
31
|
|
|
41
|
|
|
45
|
|
|
49
|
|
|
56
|
|
|
903
|
|
|
$
|
1,125
|
|
(a)
|
The maximum annual scheduled amortization for any individual year is
$147 million
in 2030.
|
(b)
|
The amortization is included as interest on long-term debt in the
Condensed Consolidated Statement of Comprehensive Income
.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Cash
|
|
|
|
|
||||
Noninterest-bearing cash
|
|
$
|
728
|
|
|
$
|
535
|
|
Interest-bearing cash
|
|
1,938
|
|
|
3,083
|
|
||
Total cash
|
|
2,666
|
|
|
3,618
|
|
||
Available-for-sale securities
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
||||
U.S. Treasury and federal agencies
|
|
1,409
|
|
|
1,391
|
|
||
U.S. States and political subdivisions
|
|
115
|
|
|
111
|
|
||
Agency mortgage-backed residential
|
|
17,921
|
|
|
16,380
|
|
||
Agency mortgage-backed commercial
|
|
320
|
|
|
3
|
|
||
Mortgage-backed residential
|
|
2,754
|
|
|
2,551
|
|
||
Mortgage-backed commercial
|
|
723
|
|
|
714
|
|
||
Asset-backed
|
|
668
|
|
|
723
|
|
||
Total available-for-sale securities
|
|
23,910
|
|
|
21,873
|
|
||
Held-to-maturity securities
|
|
|
|
|
||||
Debt securities
|
|
|
|
|
||||
Agency mortgage-backed residential
|
|
2,338
|
|
|
2,264
|
|
||
Asset-backed retained notes
|
|
36
|
|
|
43
|
|
||
Total held-to-maturity securities
|
|
2,374
|
|
|
2,307
|
|
||
Total cash and securities
|
|
$
|
28,950
|
|
|
$
|
27,798
|
|
|
1st quarter 2019
|
|
4th quarter 2018
|
|
3rd quarter 2018
|
|
2nd quarter 2018
|
|
1st quarter 2018
|
||||||||||
Trading days (a)
|
61.0
|
|
|
62.0
|
|
|
62.5
|
|
|
64.0
|
|
|
61.0
|
|
|||||
Average customer trades per day
(in thousands)
|
19.5
|
|
|
19.6
|
|
|
19.1
|
|
|
18.0
|
|
|
21.8
|
|
|||||
Funded accounts (b)
(in thousands)
|
320
|
|
|
302
|
|
|
287
|
|
|
271
|
|
|
259
|
|
|||||
Total net customer assets
($ in millions)
|
$
|
6,796
|
|
|
$
|
5,804
|
|
|
$
|
6,608
|
|
|
$
|
5,990
|
|
|
$
|
5,473
|
|
Total customer cash balances
($ in millions)
|
$
|
1,209
|
|
|
$
|
1,159
|
|
|
$
|
1,178
|
|
|
$
|
1,166
|
|
|
$
|
1,111
|
|
(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.
|
•
|
Business lines
— Responsible for owning and managing all of the risks that emanate from their risk-taking activities, including business units and support functions.
|
•
|
Independent risk management
— Responsible for establishing and maintaining our risk-management framework and promulgating it enterprise-wide. Independent risk management also provides an objective, critical assessment of risks and—through oversight, effective challenge, and other means—evaluates whether Ally remains aligned with its risk appetite.
|
•
|
Internal audit
— Provides its own independent assessments of the effectiveness of our risk management, internal controls, and governance; and independent assessments regarding the quality of our loan portfolios. Internal audit includes Audit Services and the Loan Review Group.
|
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Finance receivables and loans
|
|
|
|
|
||||
Automotive Finance
|
|
$
|
107,261
|
|
|
$
|
108,463
|
|
Mortgage Finance
|
|
16,225
|
|
|
15,155
|
|
||
Corporate Finance
|
|
5,001
|
|
|
4,636
|
|
||
Corporate and Other (a)
|
|
1,568
|
|
|
1,672
|
|
||
Total finance receivables and loans
|
|
130,055
|
|
|
129,926
|
|
||
Loans held-for-sale
|
|
|
|
|
||||
Automotive Finance
|
|
18
|
|
|
210
|
|
||
Mortgage Finance (b)
|
|
15
|
|
|
8
|
|
||
Corporate Finance
|
|
24
|
|
|
47
|
|
||
Corporate and Other
|
|
50
|
|
|
49
|
|
||
Total loans held-for-sale
|
|
107
|
|
|
314
|
|
||
Total on-balance sheet loans
|
|
130,162
|
|
|
130,240
|
|
||
Off-balance sheet securitized loans
|
|
|
|
|
||||
Automotive Finance (c)
|
|
957
|
|
|
1,235
|
|
||
Whole-loan sales
|
|
|
|
|
||||
Automotive Finance (c)
|
|
503
|
|
|
634
|
|
||
Total off-balance sheet loans
|
|
1,460
|
|
|
1,869
|
|
||
Operating lease assets
|
|
|
|
|
||||
Automotive Finance
|
|
8,339
|
|
|
8,417
|
|
||
Total loan and operating lease exposure
|
|
$
|
139,961
|
|
|
$
|
140,526
|
|
(a)
|
Includes
$1.4 billion
and
$1.5 billion
of consumer mortgage loans in our legacy mortgage portfolio at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(b)
|
Represents the current balance of conforming mortgages originated directly to the held-for-sale portfolio.
|
(c)
|
Represents the current unpaid principal balance of outstanding loans based on our customary representation and warranty provisions.
|
|
|
Outstanding
|
|
Nonperforming (a)
|
|
Accruing past due 90 days or more (b)
|
||||||||||||||||||
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Consumer automotive (c) (d)
|
|
$
|
71,553
|
|
|
$
|
70,539
|
|
|
$
|
643
|
|
|
$
|
664
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage Finance
|
|
16,225
|
|
|
15,155
|
|
|
13
|
|
|
9
|
|
|
—
|
|
|
—
|
|
||||||
Mortgage — Legacy
|
|
1,433
|
|
|
1,546
|
|
|
62
|
|
|
70
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer finance receivables and loans
|
|
$
|
89,211
|
|
|
$
|
87,240
|
|
|
$
|
718
|
|
|
$
|
743
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Includes nonaccrual TDR loans of $246 million and $257 million at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(b)
|
Loans are generally in nonaccrual status when principal or interest has been delinquent for 90 days or more, or when full collection is not expected.
Refer to
Note 1
to the
Consolidated Financial Statements
in our 2018 Annual Report on Form 10-K for a description of our accounting policies for finance receivables and loans.
|
(c)
|
Certain finance receivables and loans are included in fair value hedging relationships. Refer to
Note 17
to the
Condensed Consolidated Financial Statements
for additional information.
|
(d)
|
Includes outstanding CSG loans of $8.0 billion and $7.9 billion at
March 31, 2019
, and
December 31, 2018
, respectively, and RV loans of $1.6 billion and $1.7 billion at
March 31, 2019
, and
December 31, 2018
, respectively.
|
|
|
Three months ended March 31,
|
||||||||||||
|
|
Net charge-offs
|
|
Net charge-off ratios (a)
|
||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
Consumer automotive
|
|
$
|
234
|
|
|
$
|
253
|
|
|
1.3
|
%
|
|
1.5
|
%
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
||||||
Mortgage Finance
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||
Mortgage — Legacy
|
|
(2
|
)
|
|
5
|
|
|
(0.6
|
)
|
|
1.0
|
|
||
Total consumer finance receivables and loans
|
|
$
|
232
|
|
|
$
|
259
|
|
|
1.1
|
|
|
1.3
|
|
(a)
|
Net charge-off ratios are calculated as annualized 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.
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Consumer automotive
|
|
$
|
8,268
|
|
|
$
|
8,417
|
|
Consumer mortgage (a)
|
|
351
|
|
|
151
|
|
||
Total consumer loan originations
|
|
$
|
8,619
|
|
|
$
|
8,568
|
|
(a)
|
Excludes bulk loan purchases associated with our Mortgage Finance operations and includes $89 million of loans originated as held-for-sale for the
three months ended
March 31, 2019
, and $60 million for the
three months ended
March 31, 2018
.
|
|
|
March 31, 2019 (a)
|
|
December 31, 2018
|
||||||||
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Consumer automotive
|
|
Consumer mortgage
|
||||
California
|
|
8.4
|
%
|
|
37.0
|
%
|
|
8.4
|
%
|
|
36.9
|
%
|
Texas
|
|
12.7
|
|
|
6.2
|
|
|
12.8
|
|
|
6.2
|
|
Florida
|
|
8.8
|
|
|
4.8
|
|
|
8.8
|
|
|
4.7
|
|
Pennsylvania
|
|
4.6
|
|
|
1.4
|
|
|
4.5
|
|
|
1.4
|
|
Illinois
|
|
4.1
|
|
|
2.9
|
|
|
4.1
|
|
|
3.0
|
|
Georgia
|
|
4.0
|
|
|
2.8
|
|
|
4.1
|
|
|
2.8
|
|
North Carolina
|
|
3.9
|
|
|
1.8
|
|
|
3.9
|
|
|
1.7
|
|
New York
|
|
3.1
|
|
|
2.4
|
|
|
3.1
|
|
|
2.4
|
|
Ohio
|
|
3.5
|
|
|
0.4
|
|
|
3.5
|
|
|
0.4
|
|
New Jersey
|
|
2.7
|
|
|
2.1
|
|
|
2.7
|
|
|
2.1
|
|
Other United States
|
|
44.2
|
|
|
38.2
|
|
|
44.1
|
|
|
38.4
|
|
Total consumer loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
(a)
|
Presentation is in descending order as a percentage of total consumer finance receivables and loans at
March 31, 2019
.
|
|
|
Outstanding
|
|
Nonperforming (a)
|
|
Accruing past due 90 days or more (b)
|
||||||||||||||||||
($ in millions)
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automotive
|
|
$
|
31,559
|
|
|
$
|
33,672
|
|
|
$
|
138
|
|
|
$
|
203
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other (c)
|
|
4,516
|
|
|
4,205
|
|
|
125
|
|
|
142
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate
|
|
4,769
|
|
|
4,809
|
|
|
6
|
|
|
4
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial finance receivables and loans
|
|
$
|
40,844
|
|
|
$
|
42,686
|
|
|
$
|
269
|
|
|
$
|
349
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(a)
|
Includes nonaccrual TDR loans of $109 million and $86 million at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(b)
|
Loans are generally in nonaccrual status when principal or interest has been delinquent for 90 days or more, or when full collection is not expected.
Refer to
Note 1
to the
Consolidated Financial Statements
in our 2018 Annual Report on Form 10-K for a description of our accounting policies for finance receivables and loans.
|
(c)
|
Other commercial and industrial primarily includes senior secured commercial lending largely associated with our Corporate Finance operations.
|
|
|
Three months ended March 31,
|
||||||||||||
|
|
Net charge-offs
|
|
Net charge-off ratios (a)
|
||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||
Commercial and industrial
|
|
|
|
|
|
|
|
|
||||||
Other
|
|
$
|
5
|
|
|
$
|
—
|
|
|
0.4
|
%
|
|
—
|
%
|
Total commercial finance receivables and loans
|
|
$
|
5
|
|
|
$
|
—
|
|
|
—
|
|
|
—
|
|
(a)
|
Net charge-off ratios are calculated as annualized 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.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||
Texas
|
|
15.5
|
%
|
|
15.5
|
%
|
Florida
|
|
11.8
|
|
|
11.6
|
|
California
|
|
8.5
|
|
|
8.3
|
|
Michigan
|
|
6.8
|
|
|
6.8
|
|
New York
|
|
4.6
|
|
|
4.8
|
|
Georgia
|
|
4.0
|
|
|
4.0
|
|
North Carolina
|
|
3.9
|
|
|
3.6
|
|
South Carolina
|
|
3.2
|
|
|
3.4
|
|
New Jersey
|
|
3.1
|
|
|
3.1
|
|
Utah
|
|
2.8
|
|
|
2.6
|
|
Other United States
|
|
35.8
|
|
|
36.3
|
|
Total commercial real estate finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||
Industry
|
|
|
|
|
||
Automotive
|
|
80.5
|
%
|
|
80.6
|
%
|
Health/Medical
|
|
5.9
|
|
|
3.7
|
|
Services
|
|
4.3
|
|
|
5.0
|
|
Other
|
|
9.3
|
|
|
10.7
|
|
Total commercial criticized finance receivables and loans
|
|
100.0
|
%
|
|
100.0
|
%
|
Three months ended March 31, 2019
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Total consumer
|
|
Commercial
|
|
Total
|
||||||||||
Allowance at January 1, 2019
|
|
$
|
1,048
|
|
|
$
|
53
|
|
|
$
|
1,101
|
|
|
$
|
141
|
|
|
$
|
1,242
|
|
Charge-offs (a)
|
|
(352
|
)
|
|
(3
|
)
|
|
(355
|
)
|
|
(5
|
)
|
|
(360
|
)
|
|||||
Recoveries
|
|
118
|
|
|
5
|
|
|
123
|
|
|
—
|
|
|
123
|
|
|||||
Net charge-offs
|
|
(234
|
)
|
|
2
|
|
|
(232
|
)
|
|
(5
|
)
|
|
(237
|
)
|
|||||
Provision for loan losses
|
|
257
|
|
|
(3
|
)
|
|
254
|
|
|
28
|
|
|
282
|
|
|||||
Other
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
2
|
|
|
1
|
|
|||||
Allowance at March 31, 2019
|
|
$
|
1,070
|
|
|
$
|
52
|
|
|
$
|
1,122
|
|
|
$
|
166
|
|
|
$
|
1,288
|
|
Allowance for loan losses to finance receivables and loans outstanding at March 31, 2019 (b)
|
|
1.5
|
%
|
|
0.3
|
%
|
|
1.3
|
%
|
|
0.4
|
%
|
|
1.0
|
%
|
|||||
Net charge-offs to average finance receivables and loans outstanding for the three months ended March 31, 2019
|
|
1.3
|
%
|
|
(0.1
|
)%
|
|
1.1
|
%
|
|
—
|
%
|
|
0.7
|
%
|
|||||
Allowance for loan losses to total nonperforming finance receivables and loans at March 31, 2019 (b)
|
|
166.5
|
%
|
|
68.9
|
%
|
|
156.3
|
%
|
|
61.5
|
%
|
|
130.4
|
%
|
|||||
Ratio of allowance for loan losses to annualized net charge-offs at March 31, 2019
|
|
1.1
|
|
|
(5.9
|
)
|
|
1.2
|
|
|
8.8
|
|
|
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
Condensed Consolidated Financial Statements
in our 2018 Annual Report on Form 10-K for more information regarding our charge-off policies.
|
(b)
|
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.
|
Three months ended March 31, 2018
($ in millions)
|
|
Consumer automotive
|
|
Consumer mortgage
|
|
Total consumer
|
|
Commercial
|
|
Total
|
||||||||||
Allowance at January 1, 2018
|
|
$
|
1,066
|
|
|
$
|
79
|
|
|
$
|
1,145
|
|
|
$
|
131
|
|
|
$
|
1,276
|
|
Charge-offs (a)
|
|
(365
|
)
|
|
(12
|
)
|
|
(377
|
)
|
|
—
|
|
|
(377
|
)
|
|||||
Recoveries
|
|
112
|
|
|
6
|
|
|
118
|
|
|
—
|
|
|
118
|
|
|||||
Net charge-offs
|
|
(253
|
)
|
|
(6
|
)
|
|
(259
|
)
|
|
—
|
|
|
(259
|
)
|
|||||
Provision for loan losses
|
|
253
|
|
|
1
|
|
|
254
|
|
|
7
|
|
|
261
|
|
|||||
Allowance at March 31, 2018
|
|
$
|
1,066
|
|
|
$
|
74
|
|
|
$
|
1,140
|
|
|
$
|
138
|
|
|
$
|
1,278
|
|
Allowance for loan losses to finance receivables and loans outstanding at March 31, 2018 (b)
|
|
1.5
|
%
|
|
0.5
|
%
|
|
1.4
|
%
|
|
0.3
|
%
|
|
1.0
|
%
|
|||||
Net charge-offs to average finance receivables and loans outstanding for the three months ended March 31, 2018
|
|
1.5
|
%
|
|
0.2
|
%
|
|
1.3
|
%
|
|
—
|
%
|
|
0.8
|
%
|
|||||
Allowance for loan losses to total nonperforming finance receivables and loans at March 31, 2018 (b)
|
|
177.5
|
%
|
|
63.7
|
%
|
|
159.2
|
%
|
|
93.7
|
%
|
|
148.0
|
%
|
|||||
Ratio of allowance for loan losses to annualized net charge-offs at March 31, 2018
|
|
1.1
|
|
|
2.8
|
|
|
1.1
|
|
|
n/m
|
|
|
1.2
|
|
(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
in our 2018 Annual Report on Form 10-K for more information regarding our charge-off policies.
|
(b)
|
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.
|
|
|
2019
|
|
2018
|
||||||||||||||||
March 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
|
|
$
|
1,070
|
|
|
1.5
|
%
|
|
83.1
|
%
|
|
$
|
1,066
|
|
|
1.5
|
%
|
|
83.4
|
%
|
Consumer mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage Finance
|
|
18
|
|
|
0.1
|
|
|
1.4
|
|
|
20
|
|
|
0.2
|
|
|
1.6
|
|
||
Mortgage — Legacy
|
|
34
|
|
|
2.4
|
|
|
2.6
|
|
|
54
|
|
|
2.8
|
|
|
4.2
|
|
||
Total consumer mortgage
|
|
52
|
|
|
0.3
|
|
|
4.0
|
|
|
74
|
|
|
0.5
|
|
|
5.8
|
|
||
Total consumer loans
|
|
1,122
|
|
|
1.3
|
|
|
87.1
|
|
|
1,140
|
|
|
1.4
|
|
|
89.2
|
|
||
Commercial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Automotive
|
|
42
|
|
|
0.1
|
|
|
3.3
|
|
|
40
|
|
|
0.1
|
|
|
3.1
|
|
||
Other
|
|
97
|
|
|
2.1
|
|
|
7.5
|
|
|
69
|
|
|
1.7
|
|
|
5.4
|
|
||
Commercial real estate
|
|
27
|
|
|
0.6
|
|
|
2.1
|
|
|
29
|
|
|
0.7
|
|
|
2.3
|
|
||
Total commercial loans
|
|
166
|
|
|
0.4
|
|
|
12.9
|
|
|
138
|
|
|
0.3
|
|
|
10.8
|
|
||
Total allowance for loan losses
|
|
$
|
1,288
|
|
|
1.0
|
|
|
100.0
|
%
|
|
$
|
1,278
|
|
|
1.0
|
|
|
100.0
|
%
|
|
|
Three months ended March 31,
|
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Consumer
|
|
|
|
|
||||
Consumer automotive
|
|
$
|
257
|
|
|
$
|
253
|
|
Consumer mortgage
|
|
|
|
|
||||
Mortgage Finance
|
|
2
|
|
|
2
|
|
||
Mortgage — Legacy
|
|
(5
|
)
|
|
(1
|
)
|
||
Total consumer mortgage
|
|
(3
|
)
|
|
1
|
|
||
Total consumer loans
|
|
254
|
|
|
254
|
|
||
Commercial
|
|
|
|
|
||||
Commercial and industrial
|
|
|
|
|
||||
Automotive
|
|
6
|
|
|
4
|
|
||
Other
|
|
23
|
|
|
—
|
|
||
Commercial real estate
|
|
(1
|
)
|
|
3
|
|
||
Total commercial loans
|
|
28
|
|
|
7
|
|
||
Total provision for loan losses
|
|
$
|
282
|
|
|
$
|
261
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
($ in millions)
|
|
Gradual (a)
|
|
Instantaneous
|
|
Gradual (a)
|
|
Instantaneous
|
||||||||
Change in interest rates
|
|
|
|
|
|
|
|
|
||||||||
-100 basis points
|
|
$
|
5
|
|
|
$
|
(10
|
)
|
|
$
|
(20
|
)
|
|
$
|
(34
|
)
|
+100 basis points
|
|
3
|
|
|
(23
|
)
|
|
51
|
|
|
10
|
|
||||
+200 basis points
|
|
20
|
|
|
(99
|
)
|
|
81
|
|
|
(10
|
)
|
(a)
|
Gradual changes in interest rates are recognized over twelve months.
|
|
|
Three months ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
Off-lease vehicles terminated
(in units)
|
|
26,030
|
|
|
44,722
|
|
||
Average gain per vehicle
($ per unit)
|
|
$
|
573
|
|
|
$
|
404
|
|
Method of vehicle sales
|
|
|
|
|
||||
Auction
|
|
|
|
|
||||
Internet
|
|
50
|
%
|
|
56
|
%
|
||
Physical
|
|
16
|
|
|
13
|
|
||
Sale to dealer, lessee, and other
|
|
34
|
|
|
31
|
|
March 31,
|
|
2019
|
|
2018
|
||
Sport utility vehicle
|
|
58
|
%
|
|
55
|
%
|
Truck
|
|
31
|
|
|
29
|
|
Car
|
|
11
|
|
|
16
|
|
(a)
|
Funding from committed secured credit facilities is available on request in the event excess collateral resides in certain facilities or the extent incremental collateral is available and contributed to the facilities.
|
|
1st quarter 2019
|
|
4th quarter 2018
|
|
3rd quarter 2018
|
|
2nd quarter 2018
|
|
1st quarter 2018
|
||||||||||
Number of retail bank accounts
(in thousands)
|
3,503
|
|
|
3,238
|
|
|
3,079
|
|
|
2,947
|
|
|
2,864
|
|
|||||
Deposits
($ in millions)
|
|
|
|
|
|
|
|
|
|
||||||||||
Retail
|
$
|
95,423
|
|
|
$
|
89,121
|
|
|
$
|
84,629
|
|
|
$
|
81,736
|
|
|
$
|
81,657
|
|
Brokered (a)
|
17,734
|
|
|
16,914
|
|
|
16,567
|
|
|
16,839
|
|
|
15,661
|
|
|||||
Other (b)
|
142
|
|
|
143
|
|
|
183
|
|
|
159
|
|
|
128
|
|
|||||
Total deposits
|
$
|
113,299
|
|
|
$
|
106,178
|
|
|
$
|
101,379
|
|
|
$
|
98,734
|
|
|
$
|
97,446
|
|
(a)
|
Brokered deposit balances include a deposit related to Ally Invest customer cash balances deposited at Ally Bank by a third party of
$1.1 billion
as of
March 31, 2019
, and December 31, 2018, and $1.2 billion as of the end of each other quarter presented.
|
(b)
|
Other deposits include mortgage escrow, dealer, and other deposits.
|
•
|
We closed, renewed, increased, or extended
$4.6 billion
in committed secured credit facilities during the
three months ended
March 31, 2019
.
|
•
|
During the first three months of
2019
, we raised
$1.0 billion
through a securitization backed by consumer automotive loans.
|
•
|
In April 2019, we terminated or reduced the capacity of our private committed funding facilities and increased capacity under a new private committed facility resulting in a net reduction of
$800 million
of total funding capacity.
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||
($ in millions)
|
|
On-balance sheet funding
|
|
% Share of funding
|
|
On-balance sheet funding
|
|
% Share of funding
|
||||
Deposits
|
|
$
|
113,299
|
|
|
70
|
|
$
|
106,178
|
|
|
66
|
Debt
|
|
|
|
|
|
|
|
|
||||
Secured financings
|
|
33,837
|
|
|
21
|
|
39,657
|
|
|
25
|
||
Institutional term debt
|
|
10,895
|
|
|
7
|
|
11,632
|
|
|
7
|
||
Retail debt programs (a)
|
|
2,807
|
|
|
2
|
|
2,824
|
|
|
2
|
||
Total debt (b)
|
|
47,539
|
|
|
30
|
|
54,113
|
|
|
34
|
||
Total on-balance sheet funding
|
|
$
|
160,838
|
|
|
100
|
|
$
|
160,291
|
|
|
100
|
(a)
|
Includes
$321 million
and
$347 million
of retail term notes at
March 31, 2019
, and
December 31, 2018
, respectively.
|
(b)
|
Excludes hedge basis adjustment as described in
Note 17
to the
Condensed Consolidated Financial Statements
.
|
|
|
Common stock repurchased during period (a)
|
|
Number of common shares outstanding
|
|
Cash dividends declared per common share (b)
|
|||||||||||
($ in millions, except per share data; shares in thousands)
|
|
Approximate dollar value
|
|
Number of shares
|
|
Beginning of period
|
|
End of period
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|||||||
First quarter
|
|
$
|
185
|
|
|
6,473
|
|
|
437,054
|
|
|
432,691
|
|
|
$
|
0.13
|
|
Second quarter
|
|
195
|
|
|
7,280
|
|
|
432,691
|
|
|
425,752
|
|
|
0.13
|
|
||
Third quarter
|
|
250
|
|
|
9,194
|
|
|
425,752
|
|
|
416,591
|
|
|
0.15
|
|
||
Fourth quarter
|
|
309
|
|
|
12,121
|
|
|
416,591
|
|
|
404,900
|
|
|
0.15
|
|
||
2019
|
|
|
|
|
|
|
|
|
|
|
|||||||
First quarter
|
|
$
|
211
|
|
|
8,113
|
|
|
404,900
|
|
|
399,761
|
|
|
$
|
0.17
|
|
(a)
|
Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.
|
(b)
|
On
April 14, 2019
, the Board declared a quarterly cash dividend of
$0.17
per share on all common stock, payable on
May 15, 2019
. Refer to
Note 24
to the
Condensed Consolidated Financial Statements
for further information regarding this common stock dividend.
|
Rating agency
|
|
Short-term
|
|
Senior unsecured debt
|
|
Outlook
|
|
Date of last action
|
Fitch
|
|
B
|
|
BB+
|
|
Positive
|
|
August 28, 2018 (a)
|
Moody’s
|
|
Not Prime
|
|
Ba2
|
|
Stable
|
|
February 11, 2019 (b)
|
S&P
|
|
B
|
|
BB+
|
|
Positive
|
|
October 17, 2018 (c)
|
DBRS
|
|
R-3
|
|
BBB (Low)
|
|
Stable
|
|
May 1, 2018 (d)
|
(a)
|
Fitch affirmed our senior unsecured debt rating of BB+, affirmed our short-term rating of B, and maintained a Positive outlook on August 28, 2018.
|
(b)
|
Moody’s upgraded our senior unsecured debt rating to Ba2 from Ba3, affirmed our short-term rating of Not Prime, and maintained a Stable outlook on February 11, 2019. Effective December 1, 2014, we determined to not renew our contractual arrangement with Moody’s related to their providing of our issuer, senior unsecured debt, and short-term ratings. Notwithstanding this, Moody’s has determined to continue to provide these ratings on a discretionary basis. However, Moody’s has no obligation to continue to provide these ratings, and could cease doing so at any time.
|
(c)
|
Standard & Poor’s affirmed our senior unsecured debt rating of BB+, affirmed our short-term rating of B, and changed the outlook from Stable to Positive on October 17, 2018.
|
(d)
|
DBRS affirmed our senior unsecured debt rating of BBB (Low), affirmed our short-term rating of R-3, and maintained a Stable outlook on May 1, 2018.
|
•
|
Allowance for loan losses
|
•
|
Valuation of automotive lease assets and residuals
|
•
|
Fair value of financial instruments
|
•
|
Determination of provision for income taxes
|
|
|
2019
|
|
2018
|
|
Increase (decrease) due to
|
||||||||||||||||||||||||||||
Three months ended March 31,
($ in millions)
|
|
Average balance (a)
|
|
Interest income/interest expense
|
|
Yield/rate
|
|
Average balance (a)
|
|
Interest income/interest expense
|
|
Yield/rate
|
|
Volume
|
|
Yield/rate
|
|
Total
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing cash and cash equivalents
|
|
$
|
4,212
|
|
|
$
|
23
|
|
|
2.21
|
%
|
|
$
|
3,503
|
|
|
$
|
15
|
|
|
1.74
|
%
|
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
8
|
|
Investment securities (b)
|
|
29,326
|
|
|
222
|
|
|
3.07
|
|
|
25,206
|
|
|
163
|
|
|
2.62
|
|
|
27
|
|
|
32
|
|
|
59
|
|
|||||||
Loans held-for-sale, net
|
|
190
|
|
|
2
|
|
|
4.27
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Finance receivables and loans, net (b) (c)
|
|
128,663
|
|
|
1,807
|
|
|
5.70
|
|
|
122,531
|
|
|
1,543
|
|
|
5.11
|
|
|
77
|
|
|
187
|
|
|
264
|
|
|||||||
Investment in operating leases, net (d)
|
|
8,389
|
|
|
115
|
|
|
5.56
|
|
|
8,629
|
|
|
109
|
|
|
5.12
|
|
|
(3
|
)
|
|
9
|
|
|
6
|
|
|||||||
Other earning assets
|
|
1,229
|
|
|
18
|
|
|
5.94
|
|
|
1,110
|
|
|
13
|
|
|
4.75
|
|
|
1
|
|
|
4
|
|
|
5
|
|
|||||||
Total interest-earning assets
|
|
172,009
|
|
|
2,187
|
|
|
5.16
|
|
|
161,007
|
|
|
1,843
|
|
|
4.64
|
|
|
|
|
|
|
|
|
344
|
|
|||||||
Noninterest-bearing cash and cash equivalents
|
|
445
|
|
|
|
|
|
|
514
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other assets
|
|
6,558
|
|
|
|
|
|
|
7,286
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Allowance for loan losses
|
|
(1,248
|
)
|
|
|
|
|
|
(1,281
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total assets
|
|
$
|
177,764
|
|
|
|
|
|
|
$
|
167,526
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest-bearing deposit liabilities
|
|
$
|
109,172
|
|
|
$
|
592
|
|
|
2.20
|
%
|
|
$
|
95,299
|
|
|
$
|
351
|
|
|
1.49
|
%
|
|
$
|
51
|
|
|
$
|
190
|
|
|
$
|
241
|
|
Short-term borrowings
|
|
7,054
|
|
|
44
|
|
|
2.53
|
|
|
8,342
|
|
|
32
|
|
|
1.56
|
|
|
(5
|
)
|
|
17
|
|
|
12
|
|
|||||||
Long-term debt (b)
|
|
42,396
|
|
|
419
|
|
|
4.01
|
|
|
45,535
|
|
|
411
|
|
|
3.66
|
|
|
(28
|
)
|
|
36
|
|
|
8
|
|
|||||||
Total interest-bearing liabilities
|
|
158,622
|
|
|
1,055
|
|
|
2.70
|
|
|
149,176
|
|
|
794
|
|
|
2.16
|
|
|
|
|
|
|
|
|
261
|
|
|||||||
Noninterest-bearing deposit liabilities
|
|
137
|
|
|
|
|
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total funding sources
|
|
158,759
|
|
|
1,055
|
|
|
2.70
|
|
|
149,290
|
|
|
794
|
|
|
2.16
|
|
|
|
|
|
|
|
||||||||||
Other liabilities
|
|
5,660
|
|
|
|
|
|
|
5,040
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total liabilities
|
|
164,419
|
|
|
|
|
|
|
154,330
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total equity
|
|
13,345
|
|
|
|
|
|
|
13,196
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total liabilities and equity
|
|
$
|
177,764
|
|
|
|
|
|
|
$
|
167,526
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net financing revenue and other interest income
|
|
|
|
$
|
1,132
|
|
|
|
|
|
|
$
|
1,049
|
|
|
|
|
|
|
|
|
|
|
$
|
83
|
|
||||||||
Net interest spread (e)
|
|
|
|
|
|
2.46
|
%
|
|
|
|
|
|
2.48
|
%
|
|
|
|
|
|
|
||||||||||||||
Net yield on interest-earning assets (f)
|
|
|
|
|
|
2.67
|
%
|
|
|
|
|
|
2.64
|
%
|
|
|
|
|
|
|
(a)
|
Average balances are calculated using a combination of monthly and daily average methodologies.
|
(b)
|
Includes the effects of derivative financial instruments designated as hedges. Refer to
Note 17
to the
Condensed Consolidated Financial Statements
for further information about the effects of our hedging activities.
|
(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 in our 2018 Annual Report on Form 10-K.
|
(d)
|
Yield includes gains on the sale of off-lease vehicles of
$15 million
and
$18 million
for the
three months ended
March 31, 2019
, and
2018
, respectively. Excluding these gains on sale, the annualized yield would be
4.83%
and
4.28%
for the
three months ended
March 31, 2019
, and
2018
, respectively.
|
(e)
|
Net interest spread represents the difference between the rate on total interest-earning assets and the rate on total interest-bearing liabilities.
|
(f)
|
Net yield on interest-earning assets represents annualized net financing revenue and other interest income as a percentage of total interest-earning assets.
|
•
|
evolving local, regional, national, or international business, economic, or political conditions;
|
•
|
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, including ASU 2016-13,
Financial Instruments—Credit Losses
;
|
•
|
changes in the automotive industry or the markets for new or used vehicles, including the rise of vehicle sharing and ride hailing, the development of autonomous and alternative-energy vehicles, and the impact of demographic shifts on attitudes and behaviors toward vehicle ownership and use;
|
•
|
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 digital focus;
|
•
|
our ability to optimize our automotive finance and insurance businesses and to continue diversifying into and growing other consumer and commercial business lines, including mortgage 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 or our senior officers;
|
•
|
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 and challenges to the dealer’s role as intermediary between manufacturers and purchasers;
|
•
|
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 and expectations;
|
•
|
the performance and availability of third-party service providers on whom we rely in delivering products and services to our customers and otherwise conducting our business and operations;
|
•
|
our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including our capacity to withstand cyberattacks;
|
•
|
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 our ability 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 (Part II, Item 1A herein), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Part I, Item 2 herein), or the Notes to the Condensed Consolidated Financial Statements (Part I, Item 1 herein) in this Quarterly Report on Form 10-Q or described in any of the Company’s annual, quarterly or current reports.
|
Three months ended March 31, 2019
|
|
Total number of shares repurchased (a)
(in thousands)
|
|
Weighted-average price paid per share (a) (b)
(in dollars)
|
|
Total number of shares repurchased as part of publicly announced program (a) (c)
(in thousands)
|
|
Maximum approximate dollar value of shares that may yet be repurchased under the program (a) (b) (c)
($ in millions)
|
||||||
January 2019
|
|
2,440
|
|
|
$
|
24.60
|
|
|
2,440
|
|
|
$
|
381
|
|
February 2019
|
|
3,273
|
|
|
26.59
|
|
|
3,273
|
|
|
294
|
|
||
March 2019
|
|
2,400
|
|
|
26.69
|
|
|
2,400
|
|
|
230
|
|
||
Total
|
|
8,113
|
|
|
26.02
|
|
|
8,113
|
|
|
|
(a)
|
Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.
|
(b)
|
Excludes brokerage commissions.
|
(c)
|
On June 28, 2018, we announced a common stock-repurchase program of up to $1.0 billion. The program commenced in the third quarter of 2018 and will expire on June 30, 2019. Additionally, we announced a common stock-repurchase program of up to $1.25 billion to commence in the third quarter of 2019 through the second quarter of 2020. Refer to
Note 16
to the
Condensed Consolidated Financial Statements
for further details.
|
Exhibit
|
Description
|
Method of Filing
|
|
|
|
31.1
|
Filed herewith.
|
|
|
|
|
31.2
|
Filed herewith.
|
|
|
|
|
32
|
Filed herewith.
|
|
|
|
|
101
|
The following information from our Form 10-Q for the quarterly period ended March 31, 2019, formatted in eXtensible Business Reporting Language: (i) Condensed Consolidated Statement of Comprehensive Income (unaudited), (ii) Condensed Consolidated Balance Sheet (unaudited), (iii) Condensed Consolidated Statement of Changes in Equity (unaudited), (iv) Condensed Consolidated Statement of Cash Flows (unaudited), and (v) the Notes to the Condensed Consolidated Financial Statements (unaudited).
|
Filed herewith.
|
|
|
|
Ally Financial Inc.
(Registrant)
|
|
|
|
/
S
/
J
ENNIFER
A
.
L
A
C
LAIR
|
|
Jennifer A. LaClair
Chief Financial Officer
|
|
|
|
/
S
/
D
AVID
J
.
D
E
B
RUNNER
|
|
David J. DeBrunner
Vice President, Chief Accounting Officer, and
Corporate Controller
|
1.
|
I have reviewed this report on Form 10-Q 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-Q 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
ENNIFER
A. L
A
C
LAIR
|
|
Jennifer A. LaClair
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
|
|
May 6, 2019
|
|
|
|
/
S
/
J
ENNIFER
A. L
A
C
LAIR
|
|
Jennifer A. LaClair
|
|
Chief Financial Officer
|
|
May 6, 2019
|
|