Ally Bank 2014 Annual Report Download - page 36

Table of Contents
Ally Financial Inc. • Form 10-K
24
The following table presents selected balance sheet and ratio data.
Year ended December 31, ($ in millions)2014 2013 2012 2011 2010
Selected period-end balance sheet data:
Total assets $ 151,828 $ 151,167 $ 182,347 $ 184,059 $ 172,008
Long-term debt $ 66,558 $ 69,465 $ 74,561 $ 92,885 $ 86,703
Preferred stock $ 1,255 $ 1,255 $ 6,940 $ 6,940 $ 6,972
Total equity $ 15,399 $ 14,208 $ 19,898 $ 19,280 $ 20,398
Financial ratios
Return on average assets (a) 0.76% 0.23 % 0.65% (0.09)% 0.58 %
Return on average equity (a) 7.77% 1.92 % 6.32% (0.78)% 4.98 %
Return on average tangible common equity (b) 6.52% (5.42)% 3.20% (7.38)% (7.88)%
Equity to assets (a) 9.84% 12.00 % 10.30% 11.10 % 11.69 %
Net interest spread (a)(c) 2.28% 1.75 % 1.18% 0.69 % 0.81 %
Net interest spread excluding original issue discount (a)(c) 2.44% 1.99 % 1.49% 1.57 % 2.16 %
Net yield on interest-earning assets (a)(d) 2.41% 2.03 % 1.40% 0.92 % 1.02 %
Net yield on interest-earning assets excluding original issue discount (a)(d) 2.54% 2.21 % 1.66% 1.68 % 2.18 %
Regulatory capital ratios
Tier 1 capital (to risk-weighted assets) (e) 12.55% 11.79 % 13.13% 13.65 % 14.93 %
Total risk-based capital (to risk-weighted assets) (f) 13.24% 12.76 % 14.07% 14.69 % 16.30 %
Tier 1 leverage (to adjusted quarterly average assets) (g) 10.94% 10.23 % 11.16% 11.45 % 12.99 %
Total equity $ 15,399 $ 14,208 $ 19,898 $ 19,280 $ 20,398
Goodwill and certain other intangibles (27) (27) (494) (493) (532)
Unrealized gains and other adjustments (1,529) (1,560) (1,715) (262) (309)
Trust preferred securities 2,546 2,544 2,543 2,542 2,541
Tier 1 capital (e) 16,389 15,165 20,232 21,067 22,098
Preferred stock (1,255) (1,255) (6,940) (6,940) (6,972)
Trust preferred securities (2,546) (2,544) (2,543) (2,542) (2,541)
Tier 1 common capital (non-GAAP) (h) $ 12,588 $ 11,366 $ 10,749 $ 11,585 $ 12,585
Risk-weighted assets (i) $ 130,590 $ 128,575 $ 154,038 $ 154,319 $ 147,979
Tier 1 common (to risk-weighted assets) (h) 9.64% 8.84 % 6.98% 7.51 % 8.50 %
Basel I to estimated Basel III reconciliation
Tier 1 common capital (non-GAAP) (g) — Basel I $ 12,588
Adjustments from Basel I to Basel III (j) 411
Estimated common equity Tier 1 — Basel III (fully phased-in) $ 12,999
Risk-weighted assets (h) — Basel I $ 130,590
Adjustments from Basel I to Basel III (j) 3,723
Estimated risk-weighted assets — Basel III (fully phased-in) $ 134,313
Estimated common equity Tier 1 ratio — Basel III (fully phased-in) 9.68%
(a) The ratios were based on average assets and average equity using a combination of monthly and daily average methodologies.
(b) Return on average tangible common equity represents GAAP net income available to common shareholders divided by a two-period average of tangible common equity, which
is total shareholder's equity less preferred stock.
(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 net financing revenue as a percentage of total interest-earning assets.
(e) Tier 1 capital generally consists of common equity, minority interests, qualifying noncumulative preferred stock, and the fixed rate cumulative preferred stock sold to the U.S.
Department of Treasury (Treasury) under the Troubled Asset Relief Program (TARP), less goodwill and other adjustments.
(f) 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.
(g) 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.
(h) 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.
(i) 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.
(j) For additional details on the Basel III capital framework, refer to Note 21 to the Consolidated Financial Statements.