Ally Bank 2014 Annual Report Download - page 65

Table of Contents
Management's Discussion and Analysis
Ally Financial Inc. • Form 10-K
53
balance sheet portfolio, we have elected to account for certain mortgage loans at fair value. Changes in the fair value of loans are classified as
gain on mortgage and automotive loans, net, in the Consolidated Statement of Income. During 2013, we sold our mortgage business lending
operations, completed the sales of agency MSRs, and exited the correspondent and direct lending channels. Our ongoing Mortgage operations
are limited to the management of our held-for-investment and held-for-sale mortgage loan portfolios. We executed bulk purchases of high-
quality jumbo mortgage loans originated by third parties during 2014, and expect to continue this activity in 2015 in support of our treasury
ALM activities and diversification.
The following table presents our total on-balance sheet consumer and commercial finance receivables and loans reported at carrying
value before allowance for loan losses.
Outstanding Nonperforming (a)
Accruing past due 90
days or more (b)
December 31, ($ in millions) 2014 2013 2014 2013 2014 2013
Consumer
Finance receivables and loans
Loans at historical cost $ 64,043 $ 64,860 $ 563 $ 521 $— $1
Loans at fair value 11————
Total finance receivables and loans 64,044 64,861 563 521 —1
Loans held-for-sale 1,967 16 89——
Total consumer loans (c) 66,011 64,877 571 530 —1
Commercial
Finance receivables and loans at historical cost 35,904 35,467 82 204 ——
Loans held-for-sale 36 19 ————
Total commercial loans 35,940 35,486 82 204 ——
Total on-balance sheet loans $ 101,951 $ 100,363 $ 653 $ 734 $— $1
(a) Includes nonaccrual troubled debt restructured loans (TDRs) of $281 million and $312 million at December 31, 2014, and December 31, 2013,
respectively.
(b) Generally, loans that are 90 days past due and still accruing represent loans with government guarantees. There were no troubled debt restructured loans
classified as 90 days past due and still accruing at December 31, 2014 and December 31, 2013.
(c) Includes outstanding CSG loans of $5.2 billion and $4.7 billion at December 31, 2014, and December 31, 2013, respectively, and RV loans of $1.2 billion
and $893 million at December 31, 2014, and December 31, 2013, respectively.
Total on-balance sheet loans outstanding at December 31, 2014, increased $1.6 billion to $102.0 billion from December 31, 2013,
reflecting an increase of $1.1 billion in the consumer portfolio and an increase of $454 million in the commercial portfolio. The increase in
consumer on-balance sheet loans was primarily driven by strong automotive originations, which outpaced portfolio runoff. This increase was
partially offset by two off-balance sheet securitizations totaling $2.6 billion. The increase in commercial on-balance sheet loans outstanding
was primarily due to an increase in automotive dealership real estate term loans.
Total TDRs outstanding, originated as held-for-investment, at December 31, 2014, decreased $157 million to $1.1 billion from
December 31, 2013, primarily due to the continued runoff of legacy mortgage assets. Refer to Note 8 to the Consolidated Financial
Statements for additional information.
Total nonperforming loans at December 31, 2014, decreased $81 million to $653 million from December 31, 2013, reflected by a
decrease of $122 million of commercial nonperforming loans and an increase of $41 million of consumer nonperforming loans. The decrease
in total nonperforming loans from December 31, 2013, was driven, in part, by the successful rehabilitation of certain accounts within the
commercial automotive portfolio. Nonperforming loans include finance receivables and loans on nonaccrual status when the principal or
interest has been delinquent for 90 days or when full collection is determined not to be probable. Refer to Note 1 to the Consolidated
Financial Statements for additional information.