Ally Bank 2011 Annual Report Download - page 32

Table of Contents
Ally Financial Inc. • Form 10−K
The following table presents selected balance sheet and ratio data.
Year ended December 31, ($ in millions) 2011 2010 2009 2008 2007
Selected period−end balance sheet data:
Total assets $ 184,059 $ 172,008 $ 172,306 $ 189,476 $ 248,939
Long−term debt $ 92,794 $ 86,612 $ 88,021 $ 115,935 $ 159,342
Preferred stock/interests (a) $ 6,940 $ 6,972 $ 12,180 $ 6,287 $ 1,052
Total equity $ 19,371 $ 20,489 $ 20,839 $ 21,854 $ 15,565
Financial ratios
Efficiency ratio (b) 95.29 % 79.31% 121.06 % 50.53 % 83.43 %
Core efficiency ratio (b) 82.26 % 67.78% 102.22 % 181.10 % 83.43 %
Return on assets (c)
Net (loss) income from continuing operations (0.06)% 0.56% (3.93)% 2.57 % (0.78)%
Net (loss) income (0.09)% 0.61% (5.79)% 0.99 % (0.94)%
Core pretax income (loss) 0.57 % 1.38% (3.24)% (3.52)% (0.59)%
Return on equity (c)
Net (loss) income from continuing operations (0.56)% 4.76% (28.79)% 22.25 % (12.53)%
Net (loss) income (0.78)% 5.19% (42.46)% 8.55 % (14.98)%
Core pretax income (loss) 5.10 % 11.78% (23.78)% (30.55)% (9.46)%
Equity to assets (c) 11.15 % 11.72% 13.63 % 11.53 % 6.25 %
Net interest spread (c)(d) 1.07 % 1.26% 0.73 % (e) (e)
Net interest spread excluding original issue discount (c)(d) 1.79 % 2.32% 1.75 % (e) (e)
Net yield on interest−earning assets (c)(f) 1.57 % 1.81% 1.43 % (e) (e)
Net yield on interest−earning assets excluding original issue discount (c)(f) 2.15 % 2.65% 2.18 % (e) (e)
Regulatory capital ratios
Tier 1 capital (to risk−weighted assets) (g) 13.71 % 15.00% 14.15 % (e) (e)
Total risk−based capital (to risk−weighted assets) (h) 14.75 % 16.36% 15.55 % (e) (e)
Tier 1 leverage (to adjusted quarterly average assets) (i) 11.50 % 13.05% 12.70 % (e) (e)
Total equity $ 19,371 $ 20,489 $ 20,839 (e) (e)
Goodwill and certain other intangibles (493) (532) (534) (e) (e)
Unrealized gains and other adjustments (262) (309) (447) (e) (e)
Trust preferred securities 2,542 2,541 2,540 (e) (e)
Tier 1 capital (g) 21,158 22,189 22,398 (e) (e)
Preferred equity (6,940) (6,971) (12,180) (e) (e)
Trust preferred securities (2,542) (2,541) (2,540) (e) (e)
Tier 1 common capital (non−GAAP) (j) $ 11,676 $ 12,677 $ 7,678 (e) (e)
Risk−weighted assets (k) $ 154,308 $ 147,964 $ 158,314 (e) (e)
Tier 1 common (to risk−weighted assets) (j) 7.57 % 8.57% 4.85 % (e) (e)
(a) Effective June 30, 2009, we converted from a Delaware limited liability company into a Delaware corporation. Each unit of each class of common membership interest issued and
outstanding immediately prior to the conversion was converted into an equivalent number of shares of common stock with substantially the same rights and preferences as the
common membership interests. Upon conversion, holders of our preferred membership interests also received an equivalent number of shares of preferred stock with substantially
the same rights and preferences as the former preferred membership interests.
(b) The efficiency ratio equals total other noninterest expense divided by total net revenue. The core efficiency ratio equals total other noninterest expense divided by total net revenue
excluding original issue discount amortization expense and gain on extinguishment of debt related to the 2008 bond exchange.
(c) The 2011, 2010, and 2009 ratios were computed based on average assets and average equity using a combination of monthly and daily average methodologies. The 2008 and 2007
ratios have been computed based on period−end total assets and period−end total equity at December 31, 2008 and 2007.
(d) 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.
(e) Not applicable at December 31, 2008 and 2007 as we did not become a bank holding company until December 24, 2008.
(f) Net yield on interest−earning assets represents net financing revenue as a percentage of total interest−earning assets.
(g) Tier 1 capital generally consists of common equity, minority interests, qualifying noncumulative preferred stock, and the fixed rate cumulative preferred stock sold to Treasury under
TARP, less goodwill and other adjustments.
(h) Total risk−based capital is the sum of Tier 1 and Tier 2 capital. Tier 2 capital generally consists of preferred stock not qualifying as Tier 1 capital, limited amounts of subordinated
debt and the allowance for loan losses, and other adjustments. The amount of Tier 2 capital may not exceed the amount of Tier 1 capital.
(i) Tier 1 leverage equals Tier 1 capital divided by adjusted quarterly average total assets (which reflects adjustments for disallowed goodwill and certain intangible assets). The
minimum Tier 1 leverage ratio is 3% or 4% depending on factors specified in the regulations.
(j) We define Tier 1 common as Tier 1 capital less noncommon elements, including qualifying perpetual preferred stock, minority interest in subsidiaries, trust preferred securities, and
mandatorily convertible preferred securities. Ally considers various measures when evaluating capital utilization and adequacy, including the Tier 1 common equity ratio, in addition
to capital ratios defined by banking regulators. This calculation is intended to complement the capital ratios defined by banking regulators for both absolute and comparative
purposes. Because GAAP does not include capital ratio measures, Ally believes there are no comparable GAAP financial measures to these ratios. Tier 1 common equity is not
formally defined by GAAP or codified in the federal banking regulations and, therefore, is considered to be a non−GAAP financial measure. Ally believes the Tier 1 common equity
ratio is important because we believe analysts and banking regulators may assess our capital adequacy using this ratio. Additionally, presentation of this measure allows readers to
compare certain aspects of our capital adequacy on the same basis to other companies in the industry.
(k) Risk−weighted assets are defined by regulation and are determined by allocating assets and specified off−balance sheet financial instruments into several broad risk categories.
29