Exhibit 99.3

  

 

THIRD QUARTER 2016

 

FINANCIAL SUPPLEMENT

 

 

ALLY FINANCIAL INC. FORWARD-LOOKING STATEMENTS AND ADDITIONAL INFORMATION

 

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.

 

This information is preliminary and based on company data available at the time of the presentation

 

In the presentation that follows and related comments by Ally Financial Inc. (“Ally”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would, ” “could, ” “should, ” “believe, ” “potential, ” “continue,” or the negative of these words, or similar expressions is intended to identify forward-looking statements. All statements herein and in related management comments, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and Ally’s actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Forms 10-K and 10-Q for Ally, each of which may be revised or supplemented in subsequent reports filed with the SEC. Such factors include, among others, the following: maintaining the mutually beneficial relationship between Ally and General Motors, and Ally and Chrysler, and our ability to further diversify our business; our ability to maintain relationships with automotive dealers; the significant regulation and restrictions that we are subject to as a bank holding company and financial holding company; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our operations, with resulting negative impact on our liquidity; changes in our accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in our credit ratings; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations (including as a result of the Dodd-Frank Act and Basel III).

 

Investors are cautioned not to place undue reliance on forward-looking statements. Ally undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law. Certain non-GAAP measures are provided in this presentation which are important to the reader of the Consolidated Financial Statements but should be supplemental and not a substitute for to primary U.S. GAAP measures. Reconciliation of non-GAAP financial measures are included within this presentation.

 

Use of the term “loans” describes products associated with direct and indirect lending activities of Ally’s operations. The specific products include retail installment sales contracts, lines of credit, leases or other financing products. The term “originate” refers to Ally’s purchase, acquisition or direct origination of various “loan” products.

 

 

ALLY FINANCIAL INC. TABLE OF CONTENTS

 

	Page(s)
Consolidated Results
Consolidated Financial Highlights	4
Consolidated Income Statement	5
Consolidated Period-End Balance Sheet	6
Consolidated Average Balance Sheet	7
Segment Detail
Segment Highlights	8
Automotive Finance	9-10
Insurance	11
Mortgage Finance	12
Corporate Finance	13
Corporate and Other	14
Credit Related Information	15-16
Supplemental Detail
Capital	17
Liquidity	18
Net Interest Margin and Deposits	19
Ally Bank Consumer Mortgage HFI Portfolio	20
Discontinued Operations	21
Earnings Per Share Related Information	22
Adjusted Tangible Book Per Share Related Information	23
Core ROTCE Related Information	24
Supplemental Financial Data	25

 

 

ALLY FINANCIAL INC. CONSOLIDATED FINANCIAL HIGHLIGHTS

 

($ in millions, shares in thousands)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Selected Income Statement Data
Net financing revenue (ex. OID) (1)		$	1,011			$	998			$	964			$	995			$	981			$	13			$	29
OID amortization expense (2)			(15	)			(14	)			(13	)			(12	)			(11	)			(1	)			(3	)
Net financing revenue (as reported)			996				984				951				983				970				12				26
Total other revenue			388				374				376				356				332				14				56
Total net revenue			1,384				1,358				1,327				1,339				1,302				26				82
Provision for loan losses			258				172				220				240				211				86				47
Controllable expenses (3)			479				463				477				466				452				16				27
Other noninterest expenses			256				310				233				202				222				(54	)			34
Pre-tax income from continuing operations			391				413				397				431				417				(22	)			(26	)
Income tax expense			130				56				150				155				144				74				(14	)
(Loss) / Income from discontinued operations, net of tax			(52	)			3				3				(13	)			(5	)			(55	)			(47	)
Net income			209				360				250				263				268				(151	)			(59	)
Preferred dividends			-				15				15				1,216				38				(15	)			(38	)
Net income (loss) available to common		$	209			$	345			$	235			$	(953	)		$	230			$	(136	)		$	(21	)
Selected Balance Sheet Data (Period-End)
Total assets		$	157,397			$	157,931			$	156,505			$	158,581			$	155,916			$	(534	)		$	1,481
Consumer loans			75,673				74,365				73,688				74,065				73,380				1,308				2,293
Commercial loans			39,286				38,288				37,188				37,535				34,611				998				4,675
Allowance for loan losses			(1,134	)			(1,089	)			(1,077	)			(1,054	)			(1,018	)			(45	)			(116	)
Deposits			75,744				72,802				70,265				66,478				64,020				2,942				11,724
Common equity (4)			13,630				13,611				13,127				12,743				13,786				19				(156	)
Total equity			13,630				13,611				13,823				13,439				14,599				19				(969	)
Common Share Count
Weighted average basic (5)			482,393				485,370				484,233				483,300				483,073				(2,978	)			(681	)
Weighted average diluted (5)(6)			483,575				486,074				484,654				484,845				484,399				(2,499	)			(824	)
Issued shares outstanding (period-end)			475,470				483,753				483,475				481,980				481,750				(8,283	)			(6,280	)
Per Common Share Data
Earnings per share (basic) (5)		$	0.43			$	0.71			$	0.49			$	(1.97	)		$	0.48			$	(0.28	)		$	(0.04	)
Earnings per share (diluted) (5)(6)			0.43				0.71				0.49				(1.97	)			0.47				(0.28	)			(0.04	)
Adjusted earnings per share (7)			0.56				0.54				0.52				0.52				0.51				0.02				0.05
Book value per share			28.7				28.1				28.6				27.9				30.3				0.5				(1.6	)
Tangible book value per share (8)			28.0				27.6				27.1				26.4				28.6				0.5				(0.5	)
Adjusted tangible book value per share (8)			26.3				25.9				25.4				24.6				24.3				0.5				2.0
Select Financial Ratios
Net interest margin (as reported)			2.69	%			2.68	%			2.59	%			2.65	%			2.64	%
Net interest margin (ex. OID)			2.73	%			2.72	%			2.63	%			2.68	%			2.67	%
Cost of funds (incl. OID)			1.89	%			1.90	%			1.88	%			1.75	%			1.76	%
Cost of funds (ex. OID)			1.83	%			1.84	%			1.82	%			1.70	%			1.71	%
Efficiency Ratio			53.1	%			56.9	%			53.5	%			49.9	%			51.8	%
Adjusted efficiency ratio (9)			45.9	%			43.7	%			45.4	%			43.6	%			43.7	%
Return on average assets (10)			0.5	%			0.9	%			0.6	%			0.7	%			0.7	%
Return on average total equity (10)			6.1	%			10.4	%			7.3	%			7.4	%			7.4	%
Return on average tangible common equity (10)			6.3	%			10.4	%			7.3	%			n/m				6.8	%
Core ROTCE (10)(11)			9.8	%			9.7	%			9.8	%			9.8	%			9.2	%
Capital Ratios (12)
Common Equity Tier 1 (CET1) capital ratio (13)			9.5	%			9.6	%			9.5	%			9.2	%			10.0	%
Tier 1 capital ratio			11.1	%			11.2	%			11.6	%			11.1	%			12.0	%
Total capital ratio			12.8	%			12.8	%			13.0	%			12.5	%			12.9	%

 

(1) Represents a non-GAAP financial measure. Excludes original issue discount expense (OID).

(2) OID is primarily related to bond exchange OID (excludes international operations and post 2009 issuances)

(3) Includes employee related costs, consulting and legal fees, marketing, information technology, facility, portfolio servicing and restructuring expenses

(4) Includes common stock and paid-in capital, treasury stock, accumulated deficit and accumulated other comprehensive income

(5) Includes shares related to share-based compensation that vested but were not yet issued

(6) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the year ended December 31, 2015 basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

(7) Represents a non-GAAP financial measure. For more details refer to page 22

(8) Represents a non-GAAP financial measure. For more details refer to page 23

(9) Represents a non-GAAP financial measure. For more details refer to page 25

(10) Return metrics are annualized

(11) Return metrics are annualized. For more details refer to page 24

(12) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital

(13) Common Equity Tier 1 capital ratio is a non-GAAP measurement. Refer to page 17 for additional details

 

 

ALLY FINANCIAL INC. CONSOLIDATED INCOME STATEMENT

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Financing revenue and other interest income
Interest and fees on finance receivables and loans		$	1,307			$	1,265			$	1,235			$	1,212			$	1,166			$	42			$	141
Interest on loans held-for-sale			-				-				-				-				2				-				(2	)
Total interest and dividends on investment securities			101				99				102				98				102				2				(1	)
Interest-bearing cash			3				4				3				2				2				(1	)			1
Operating leases			649				701				769				812				830				(52	)			(181	)
Total financing revenue and other interest income			2,060				2,069				2,109				2,124				2,102				(9	)			(42	)
Interest expense
Interest on deposits			212				203				193				188				181				9				31
Interest on short-term borrowings			14				12				13				13				13				2				1
Interest on long-term debt			430				436				442				404				410				(6	)			20
Total interest expense			656				651				648				605				604				5				52
Depreciation expense on operating lease assets			408				434				510				536				528				(26	)			(120	)
Net financing revenue (as reported)		$	996			$	984			$	951			$	983			$	970			$	12			$	26
Other revenue
Servicing fees			17				18				13				13				12				(1	)			5
Insurance premiums and service revenue earned			238				236				230				234				236				2				2
Gain on mortgage and automotive loans, net			-				3				1				-				(2	)			(3	)			2
Loss on extinguishment of debt			-				-				(4	)			(3	)			-				-				-
Other gain on investments, net			52				39				54				49				6				13				46
Other income, net of losses			81				77				82				63				80				3				1
Total other revenue			388				374				376				356				332				14				56
Total net revenue			1,384				1,358				1,327				1,339				1,302				26				82
Provision for loan losses			258				172				220				240				211				86				47
Noninterest expense
Compensation and benefits expense			248				242				252				237				235				6				13
Insurance losses and loss adjustment expenses			69				145				73				54				61				(76	)			8
Other operating expenses			418				386				385				377				378				32				40
Total noninterest expense			735				773				710				668				674				(38	)			61
Pre-tax income from continuing operations		$	391			$	413			$	397			$	431			$	417			$	(22	)		$	(26	)
Income tax (benefit) expense from continuing operations			130				56				150				155				144				74				(14	)
Net income from continuing operations			261				357				247				276				273				(96	)			(12	)
(Loss) / Income from discontinued operations, net of tax			(52	)			3				3				(13	)			(5	)			(55	)			(47	)
Net income		$	209			$	360			$	250			$	263			$	268			$	(151	)		$	(59	)
Core Pre-Tax Income Walk
Net financing revenue (ex. OID) (1)		$	1,011			$	998			$	964			$	995			$	981			$	13			$	29
Total other revenue (ex. OID) (2)			388				374				380				358				332				14				56
Provision for loan losses			258				172				220				240				211				86				47
Controllable expenses (3)			479				459				473				465				449				20				30
Other noninterest expenses			256				310				233				202				222				(54	)			34
Total Noninterest Expense			735				769				706				667				672				-34				63
Core pre-tax income		$	406			$	431			$	419			$	446			$	431			$	(25	)		$	(25	)
less: Repositioning items (3)			-				4				7				3				2				(4	)			(2	)
less: OID amortization expense			15				14				15				12				11				1				3
Pre-tax income from continuing operations		$	391			$	413			$	397			$	431			$	417			$	(22	)		$	(26	)

 

(1) Represents a non-GAAP financial measure. Excludes OID

(2) Represents a non-GAAP financial measure. Excludes accelerated OID primarily related to the extinguishment of high-cost legacy debt of $2 million in 1Q 2016

(3) Excludes Repositioning items. Repositioning items are primarily related to the extinguishment of high-cost legacy debt and other strategic activities.

 

 

ALLY FINANCIAL INC. CONSOLIDATED PERIOD-END BALANCE SHEET

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015				6/30/2016				9/30/2015
Assets
Cash and cash equivalents
Noninterest-bearing		$	1,779			$	1,790			$	1,906			$	2,148			$	1,666			$	(11	)		$	113
Interest-bearing			2,510				3,941				3,095				4,232				3,561				(1,431	)			(1,051	)
Total cash and cash equivalents			4,289				5,731				5,001				6,380				5,227				(1,442	)			(938	)
Investment securities (1)			18,350				18,768				18,298				17,157				18,758				(418	)			(408	)
Loans held-for-sale, net			56				15				39				105				37				41				19
Finance receivables and loans, net
Finance receivables and loans, net			114,959				112,653				110,876				111,600				107,991				2,306				6,968
Allowance for loan losses			(1,134	)			(1,089	)			(1,077	)			(1,054	)			(1,018	)			(45	)			(116	)
Total finance receivables and loans, net			113,825				111,564				109,799				110,546				106,973				2,261				6,852
Investment in operating leases, net			12,689				13,755				14,958				16,271				17,292				(1,066	)			(4,603	)
Premiums receivables and other insurance assets			1,881				1,844				1,828				1,801				1,794				37				87
Other assets			6,307				6,254				6,582				6,321				5,835				53				472
Total assets		$	157,397			$	157,931			$	156,505			$	158,581			$	155,916			$	(534	)		$	1,481
Liabilities
Deposit liabilities
Noninterest-bearing		$	101			$	94			$	92			$	89			$	91			$	7			$	10
Interest-bearing			75,643				72,708				70,173				66,389				63,929				2,935				11,714
Total deposit liabilities			75,744				72,802				70,265				66,478				64,020				2,942				11,724
Short-term borrowings			6,434				5,994				5,365				8,101				5,378				440				1,056
Long-term debt			56,836				61,040				62,044				66,234				67,293				(4,204	)			(10,457	)
Interest payable			462				427				374				350				437				35				25
Unearned insurance premiums and service revenue			2,493				2,465				2,449				2,434				2,438				28				55
Accrued expense and other liabilities			1,798				1,592				2,185				1,545				1,751				206				47
Total liabilities		$	143,767			$	144,320			$	142,682			$	145,142			$	141,317			$	(553	)		$	2,450
Equity
Common stock and paid-in capital (2)		$	20,960			$	21,106			$	21,087			$	21,084			$	21,066			$	(146	)		$	(106	)
Preferred stock			-				-				696				696				813				-				(813	)
Accumulated deficit			(7,361	)			(7,530	)			(7,875	)			(8,110	)			(7,158	)			169				(203	)
Accumulated other comprehensive (loss) income			31				35				(85	)			(231	)			(122	)			(4	)			153
Total equity			13,630				13,611				13,823				13,439				14,599				19				(969	)
Total liabilities and equity		$	157,397			$	157,931			$	156,505			$	158,581			$	155,916			$	(534	)		$	1,481

 

(1) Includes held-to-maturity securities

(2) Includes Treasury stock

 

 

ALLY FINANCIAL INC. CONSOLIDATED AVERAGE BALANCE SHEET (1)

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		9/30/2016				6/30/2016				3/31/2016				12/31/2015				9/30/2015				6/30/2016				9/30/2015
Assets
Interest-bearing cash and cash equivalents		$	2,530			$	2,708			$	2,867			$	2,743			$	3,667			$	(178	)		$	(1,137	)
Federal funds sold and securities purchased under resale agreements			-				2				-				-				-				(2	)			-
Investment securities			17,550				17,559				16,856				16,066				17,745				(9	)			(195	)
Loans held-for-sale, net			1				-				35				13				111				1				(110	)
Total finance receivables and loans, net (2)			113,294				112,158				111,525				110,623				105,604				1,136				7,690
Investment in operating leases, net			13,232				14,392				15,638				16,824				17,519				(1,160	)			(4,287	)
Total interest earning assets			146,607				146,819				146,921				146,269				144,646				(212	)			1,961
Noninterest-bearing cash and cash equivalents			1,369				1,339				1,841				1,368				1,563				30				(194	)
Other assets			9,353				9,386				9,667				9,299				9,665				(33	)			(312	)
Allowance for loan losses			(1,103	)			(1,088	)			(1,060	)			(1,030	)			(988	)			(15	)			(115	)
Total assets		$	156,226			$	156,456			$	157,369			$	155,906			$	154,886			$	(230	)		$	1,340
Liabilities
Interest-bearing deposit liabilities		$	74,166			$	71,479			$	68,148			$	64,890			$	62,791			$	2,687			$	11,375
Short-term borrowings			5,194				5,535				5,609				6,073				6,745				(341	)			(1,551	)
Long-term debt (3)			58,425				60,758				64,841				66,162				66,857				(2,333	)			(8,432	)
Total interest-bearing liabilities (3)			137,785				137,772				138,598				137,125				136,393				13				1,392
Noninterest-bearing deposit liabilities			97				91				92				95				91				6				6
Other liabilities			4,674				4,948				5,053				4,144				3,971				(274	)			703
Total liabilities		$	142,556			$	142,811			$	143,743			$	141,364			$	140,455			$	(255	)		$	2,101
Equity
Total equity		$	13,670			$	13,645			$	13,626			$	14,542			$	14,431			$	25			$	(761	)
Total liabilities and equity		$	156,226			$	156,456			$	157,369			$	155,906			$	154,886			$	(230	)		$	1,340

 

(1) Average balances are calculated using a combination of monthly and daily average methodologies

(2) Nonperforming finance receivables and loans are included in the average balances net of unearned income, unamortized premiums and discounts, and deferred fees and costs

(3) QTD: includes OID average of $1,272 million in 3Q16, $1,286 million in 2Q 2016, $1,298 million in 1Q 2016, $1,310 million in 4Q 2015 and $1,322 million in 3Q 2015

 

 

ALLY FINANCIAL INC. SEGMENT HIGHLIGHTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Automotive Finance		$	319			$	426			$	337			$	333			$	323			$	(107	)		$	(4	)
Insurance			56				(18	)			50				78				40				74				16
Dealer Financial Services			375				408				387				411				363				(33	)			12
Mortgage Finance			8				9				2				9				4				(1	)			4
Corporate Finance			15				14				11				9				14				1				1
Corporate and Other (1)			(7	)			(18	)			(3	)			2				36				11				(43	)
Pre-tax income from continuing operations		$	391			$	413			$	397			$	431			$	417			$	(22	)		$	(26	)
OID amortization expense (2)			15				14				15				12				11				1				3
Repositioning items (2)(3)			-				4				7				3				2				(4	)			(2	)
Core pre-tax income (4)		$	406			$	431			$	419			$	446			$	431			$	(25	)		$	(25	)

 

(1) Corporate and Other primarily consists of activity related to 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, the amortization of the discount associated with new debt issuances and bond exchanges, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, the management of our legacy mortgage portfolio, and reclassifications and eliminations between the reportable operating segments. Subsequent to June 1, 2016, TradeKing activity included within the Corporate & Other segment.

(2) OID amortization expense and repositioning items for all periods shown is applied to the pre-tax income of the Corporate and Other segment. Includes accelerated OID expense of $2 million in 1Q 2016 associated with debt redemptions

(3) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities

(4) Core pre-tax income is a non-GAAP financial measure that adjusts pre-tax income from continuing operations by excluding (1) original issue discount (OID) amortization expense and (2) repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities. Management believes core pre-tax income can help the reader better understand the operating performance of the core businesses and their ability to generate earnings.

 

 

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Income Statement
Net financing revenue
Consumer		$	911			$	877			$	866			$	867			$	833			$	34			$	78
Commercial			267				262				252				238				228				5				39
Loans held-for-sale			-				-				-				(1	)			2				-				(2	)
Operating leases			649				701				769				812				830				(52	)			(181	)
Other interest income			3				2				3				2				2				1				1
Total financing revenue and other interest income			1,830				1,842				1,890				1,918				1,895				(12	)			(65	)
Interest expense			489				479				484				482				497				10				(8	)
Depreciation expense on operating lease assets:
Depreciation expense on operating lease assets (ex. remarketing)			470				520				565				604				633				(50	)			(163	)
Remarketing gains			(62	)			(86	)			(55	)			(68	)			(105	)			24				43
Total depreciation expense on operating lease assets			408				434				510				536				528				(26	)			(120	)
Net financing revenue			933				929				896				900				870				4				63
Other revenue
Servicing fees			17				18				13				13				12				(1	)			5
Gain/(loss) on automotive loans, net			-				5				5				-				(2	)			(5	)			2
Other income			58				53				59				52				53				4				5
Total other revenue			74				77				77				65				63				(3	)			11
Total net revenue			1,007				1,006				973				965				933				1				74
Provision for loan losses			270				170				209				236				201				100				69
Noninterest expense
Compensation and benefits			119				118				126				119				121				1				(2	)
Other operating expenses			299				292				301				277				288				7				11
Total noninterest expense			418				410				427				396				409				8				9
Income before income tax expense		$	319			$	426			$	337			$	333			$	323			$	(107	)		$	(4	)
Memo: Net lease revenue
Operating lease revenue		$	649			$	701			$	769			$	812			$	830			$	(52	)		$	(181	)
Depreciation expense on operating lease assets (ex. remarketing)			470				520				565				604				633				(50	)			(163	)
Remarketing gains			(62	)			(86	)			(55	)			(68	)			(105	)			24				43
Total depreciation expense on operating lease assets			408				434				510				536				528				(26	)			(120	)
Net lease revenue		$	241			$	267			$	259			$	276			$	302			$	(26	)		$	(61	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	30			$	30			$	31			$	31			$	32			$	-			$	(2	)
Loans held-for-sale			-				-				-				-				-				-				-
Finance receivables and loans, net:
Consumer loans			64,750				63,193				62,926				64,226				63,503				1,557				1,247
Commercial loans (1)			36,043				35,258				34,348				34,918				32,345				785				3,698
Allowance for loan losses			(969	)			(919	)			(905	)			(887	)			(852	)			(50	)			(117	)
Total finance receivables and loans, net			99,824				97,532				96,369				98,257				94,996				2,292				4,828
Investment in operating leases, net			12,689				13,755				14,958				16,271				17,292				(1,066	)			(4,603	)
Other assets			1,126				1,039				931				1,077				1,523				87				(397	)
Total assets		$	113,669			$	112,356			$	112,289			$	115,636			$	113,843			$	1,313			$	(174	)

 

(1) Includes intercompany

 

 

ALLY FINANCIAL INC. AUTOMOTIVE FINANCE - KEY STATISTICS

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
U.S. Consumer Originations (1) ($ in billions)
Retail standard - new vehicle GM		$	2.0			$	1.9			$	1.9			$	2.3			$	2.8			$	0.1			$	(0.8	)
Retail standard - new vehicle Chrysler (2)			1.2				1.2				1.0				1.1				1.3				0.0				(0.1	)
Retail standard - new vehicle Growth (2)			1.4				1.4				1.2				1.2				1.3				(0.0	)			0.0
Retail standard - used vehicle - all channels			3.8				4.0				4.1				3.4				3.9				(0.3	)			(0.1	)
Lease - GM			0.0				0.0				0.0				0.0				0.0				(0.0	)			(0.0	)
Lease - Other			1.0				0.8				0.8				1.0				1.0				0.1				(0.0	)
Retail subvented - new vehicle GM			-				-				-				0.2				0.7				-				(0.7	)
Total originations		$	9.3			$	9.4			$	9.0			$	9.3			$	11.1			$	(0.0	)		$	(1.8	)
U.S. Consumer Originations - FICO Score
Super Prime (CB 740+)		$	2.3			$	2.1			$	2.0			$	2.3			$	2.9			$	0.2			$	(0.5	)
Prime (CB 739-660)			3.4				3.5				3.2				3.2				3.8				(0.1	)			(0.5	)
Prime/Near (CB 659-620)			2.2				2.3				2.2				2.1				2.4				(0.1	)			(0.2	)
Non Prime (CB 619-540)			0.9				0.9				1.0				1.1				1.3				(0.0	)			(0.5	)
Sub Prime (CB 539-0)			0.1				0.1				0.1				0.1				0.2				(0.0	)			(0.1	)
Unscored (3)			0.5				0.5				0.5				0.5				0.5				(0.0	)			(0.0	)
Total originations		$	9.3			$	9.4			$	9.0			$	9.3			$	11.1			$	(0.0	)		$	(1.8	)
U.S. Market
Light vehicle sales (SAAR - units in millions)			17.5				17.1				17.3				17.9				17.7				0.3				(0.2	)
Light vehicle sales (quarterly - units in millions)			4.5				4.5				4.1				4.4				4.5				(0.1	)			(0.1	)
GM market share			17.4	%			16.7	%			16.8	%			17.8	%			17.6	%
Chrysler market share			12.8	%			13.3	%			13.6	%			13.3	%			12.7	%
U.S. Consumer Penetration
GM			8.8	%			9.1	%			9.3	%			13.0	%			16.3	%
Chrysler			14.8	%			13.8	%			12.5	%			15.1	%			13.9	%
U.S. Commercial Outstandings EOP ($ in billions)
Floorplan outstandings, net		$	30.7			$	30.0			$	29.2			$	29.9			$	27.5			$	0.6			$	3.1
Other dealer loans			5.4				5.2				5.1				5.0				4.8				0.1				0.6
Total Commercial outstandings		$	36.0			$	35.3			$	34.3			$	34.9			$	32.3			$	0.7			$	3.7
U.S. Off-Lease Remarketing
Off-lease vehicles terminated - On-balance sheet (# in units)			80,999				76,001				78,820				69,710				65,363				4,998				15,636
Average gain per vehicle		$	767			$	1,126			$	700			$	979			$	1,611			$	(359	)		$	(844	)
Total gains ($ in millions)		$	62			$	86			$	55			$	68			$	105			$	(24	)		$	(43	)

 

(1) Some standard rate loan originations contain manufacturer sponsored cash back rebate incentives. Some lease originations contain rate subvention. While Ally may jointly develop marketing programs for these originations, Ally does not have exclusive rights to such originations under operating agreements with manufacturers

(2) Includes an immaterial balance of subvented volume

(3) Unscored are primarily Commercial Services Group ("CSG")

 

 

ALLY FINANCIAL INC. INSURANCE - CONDENSED FINANCIAL STATEMENTS AND KEY STATISTICS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Income Statement (GAAP View)
Net financing revenue
Interest and dividends on investment securities		$	24			$	25			$	24			$	25			$	26			$	(1	)		$	(2	)
Interest bearing cash			2				3				2				2				2				(1	)			-
Total financing revenue and other interest revenue			26				28				26				27				28				(2	)			(2	)
Interest expense			12				12				12				12				12				-				-
Net financing revenue			14				16				14				15				16				(2	)			(2	)
Other revenue
Insurance premiums and service revenue earned			238				236				230				234				236				2				2
Other gain/(loss) on investments, net			24				21				22				28				(5	)			3				29
Other income, net of losses			2				2				2				2				2				-				-
Total other revenue			264				259				254				264				233				5				31
Total net revenue			278				275				268				279				249				3				29
Noninterest expense
Compensation and benefits expense			16				17				18				15				18				(1	)			(2	)
Insurance losses and loss adjustment expenses			69				145				73				54				61				(76	)			8
Other operating expenses			137				131				127				132				130				6				7
Total noninterest expense			222				293				218				201				209				(71	)			13
Income (loss) from cont. ops before income tax expense		$	56			$	(18	)		$	50			$	78			$	40			$	74			$	16
Memo: Income Statement (Managerial View)
Insurance premiums and other income
Insurance premiums and service revenue earned		$	238			$	236			$	230			$	234			$	236			$	2			$	2
Investment income			36				34				34				41				9				2				27
Other income			4				5				4				4				4				(1	)			-
Total insurance premiums and other income			278				275				268				279				249				3				29
Expense
Insurance losses and loss adjustment expenses			69				145				73				54				61				(76	)			8
Acquisition and underwriting expenses
Compensation and benefit expense			16				17				18				15				18				(1	)			(2	)
Insurance commission expense			99				97				94				94				95				2				4
Other expense			38				34				33				38				35				4				3
Total acquisition and underwriting expense			153				148				145				147				148				5				5
Total expense			222				293				218				201				209				(71	)			13
Income (loss) from cont. ops before income tax expense		$	56			$	(18	)		$	50			$	78			$	40			$	74			$	16
Balance Sheet (Period-End)
Cash, trading and investment securities		$	5,155			$	5,140			$	5,141			$	5,053			$	4,991			$	15			$	164
Premiums receivable and other insurance assets			1,894				1,856				1,840				1,813				1,805				38				89
Other assets			210				197				213				187				201				13				9
Total assets		$	7,259			$	7,193			$	7,194			$	7,053			$	6,997			$	66			$	262
Key Statistics (Continuing Operations)
Total written premiums and revenue		$	252			$	237			$	222			$	222			$	254			$	15			$	(2	)
Loss ratio			28.8	%			60.9	%			31.5	%			22.5	%			25.7	%
Underwriting expense ratio			63.8	%			61.9	%			62.5	%			62.6	%			62.0	%
Combined ratio			92.5	%			122.8	%			94.0	%			85.1	%			87.7	%

 

 

ALLY FINANCIAL INC. MORTGAGE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Income Statement
Net financing revenue
Total financing revenue and other interest income		$	64			$	64			$	57			$	54			$	51			$	-			$	13
Interest expense			39				38				37				36				34				1				5
Net financing revenue			25				26				20				18				17				(1	)			8
Total net revenue			25				26				20				18				17				(1	)			8
Provision for loan losses			1				-				3				(2	)			3				1				(2	)
Noninterest expense
Compensation and benefits expense			4				3				3				2				1				1				3
Other operating expense			12				14				12				9				9				(2	)			3
Total noninterest expense			16				17				15				11				10				(1	)			6
Income from cont. ops before income tax expense		$	8			$	9			$	2			$	9			$	4			$	(1	)		$	4
Balance Sheet (Period-End)
Finance receivables and loans, net:
Consumer loans		$	7,931			$	8,009			$	7,443			$	6,413			$	6,286				(78	)			1,645
Allowance for loan losses			(19	)			(18	)			(18	)			(16	)			(17	)			(1	)			(2	)
Total finance receivables and loans, net			7,912				7,991				7,425				6,397				6,269				(79	)			1,643
Other assets			21				23				68				64				57				(2	)			(36	)
Total assets		$	7,933			$	8,014			$	7,493			$	6,461			$	6,326			$	(81	)		$	1,607

 

 

ALLY FINANCIAL INC. CORPORATE FINANCE - CONDENSED FINANCIAL STATEMENTS

 

($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Income Statement
Net financing revenue
Total financing revenue and other interest income		$	48			$	46			$	44			$	39			$	36			$	2			$	12
Interest expense			18				17				16				14				14				1				4
Net financing revenue			30				29				28				25				22				1				8
Other income, net of losses			4				4				6				3				10				-				(6	)
Total other revenue			4				4				6				3				10				-				(6	)
Total net revenue			34				33				34				28				32				1				2
Provision for loan losses			3				3				6				6				4				-				(1	)
Noninterest expense
Compensation and benefits expense			9				10				10				8				8				(1	)			1
Other operating expense			7				6				7				5				6				1				1
Total noninterest expense			16				16				17				13				14				-				2
Income from cont. ops before income tax expense		$	15			$	14			$	11			$	9			$	14			$	1			$	1
Balance Sheet (Period-End)
Loans held for sale		$	56			$	15			$	39			$	105			$	37			$	41			$	19
Commercial loans (1)			3,182				2,975				2,795				2,568				2,228				207				954
Allowance for loan losses			(62	)			(59	)			(56	)			(50	)			(44	)			(3	)			(18	)
Total finance receivables and loans, net			3,120				2,916				2,739				2,518				2,184				204				936
Other assets			56				58				61				54				48				(2	)			8
Total assets		$	3,232			$	2,989			$	2,839			$	2,677			$	2,269			$	243			$	963

 

(1) Includes intercompany loan activity

 

 

  

ALLY FINANCIAL INC. CORPORATE AND OTHER - CONDENSED FINANCIAL STATEMENTS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Income Statement
Net financing revenue
Total financing revenue and other interest income		$	92			$	89			$	92			$	86			$	92			$	3			$	-
Interest expense
Original issue discount amortization (1)			15				14				13				12				11				1				3
Other interest expense			83				91				86				49				36				(8	)			48
Total interest expense			98				105				99				61				47				(7	)			51
Net financing revenue (deficit)			(6	)			(16	)			(7	)			25				45				10				(51	)
Other revenue
Loss on extinguishment of debt			-				-				(4	)			(3	)			-				-				-
Other gain on investments, net			28				18				32				21				11				10				17
Other income, net of losses (2)			18				16				11				6				15				2				3
Total other (loss) revenue			46				34				39				24				26				12				20
Total net revenue (deficit)			40				18				32				49				71				22				(31	)
Provision for loan losses			(16	)			(1	)			2				-				3				(15	)			(19	)
Noninterest expense
Compensation and benefits expense			100				94				95				93				87				6				13
Other operating expense (3)			(37	)			(57	)			(62	)			(46	)			(55	)			20				18
Total noninterest expense			63				37				33				47				32				26				31
(Loss) Income from cont. ops before income tax expense		$	(7	)		$	(18	)		$	(3	)		$	2			$	36			$	11			$	(43	)
Balance Sheet (Period-End)
Cash, trading and investment securities		$	17,454			$	19,329			$	18,127			$	18,453			$	18,962			$	(1,875	)		$	(1,508	)
Loans held-for-sale			-				-				-				-				-				-				-
Finance receivables and loans, net
Consumer loans			2,992				3,163				3,319				3,426				3,591				(171	)			(599	)
Commercial loans (4)			61				55				45				49				38				6				23
Allowance for loan losses			(84	)			(93	)			(98	)			(101	)			(105	)			9				21
Total finance receivables and loans, net			2,969				3,125				3,266				3,374				3,524				(156	)			(555	)
Other assets			4,881				4,925				5,297				4,927				3,995				(44	)			886
Total assets		$	25,304			$	27,379			$	26,690			$	26,754			$	26,481			$	(2,075	)		$	(1,177	)
OID Amortization Schedule (5)		2016				2017				2018				2019 and After
Remaining Core OID Amortization (as of 9/30/2016)		$	16			$	71			$	86			Avg = $50/yr

 

(1) Does not include accelerated OID expense of $2 million in 1Q16

(2) Includes gain/(loss) on mortgage and automotive loans

(3) Other operating expenses includes (i) certain unallocated expenses primarily associated with operations that have been sold or discontinued and (ii) corporate overhead allocated to the other business segments. Amounts of corporate overhead allocated were $190 million for 3Q16, $186 million for 2Q16, $202 million for 1Q16, $178 million for 4Q15 and $189 million for 3Q15. The receiving business segment records the allocation of corporate overhead expense within other operating expenses.

(4) Includes intercompany

(5) Primarily represents bond exchange OID amortization expense used for calculating core pre-tax income

 

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Asset Quality - Consolidated (1)
Ending loan balance		$	114,959			$	112,653			$	110,876			$	111,600			$	107,990			$	2,306			$	6,968
30+ Accruing DPD		$	1,934			$	1,740			$	1,496			$	1,985			$	1,754			$	194			$	180
30+ Accruing DPD %			1.68	%			1.54	%			1.35	%			1.78	%			1.62	%
Non-performing loans (NPLs)		$	753			$	734			$	698			$	680			$	637			$	20			$	117
Net charge-offs (NCOs)		$	213			$	152			$	179			$	198			$	161			$	62			$	52
Net charge-off rate (2)			0.75	%			0.54	%			0.64	%			0.72	%			0.61	%
Provision for loan losses		$	258			$	172			$	220			$	240			$	211			$	86			$	47
Allowance for loan losses (ALLL)		$	1,134			$	1,089			$	1,077			$	1,054			$	1,018			$	45			$	116
ALLL as % of Loans (3)			1.0	%			1.0	%			1.0	%			0.9	%			0.9	%
ALLL as % of NPLs (3)			150	%			148	%			154	%			155	%			160	%
ALLL as % of NCOs (3)			133	%			179	%			150	%			133	%			158	%
US Auto Delinquencies - HFI Retail Contract $'s (5)
Delinquent contract $		$	1,823			$	1,643			$	1,387			$	1,886			$	1,656			$	180			$	167
% of retail contract $ outstanding			2.81	%			2.60	%			2.20	%			2.93	%			2.60	%
U.S. Auto Annualized Net Charge-Offs - HFI Retail Contract $'s
Net charge-offs		$	219			$	148			$	173			$	194			$	156			$	71			$	63
% of avg. HFI assets (2)			1.37	%			0.94	%			1.08	%			1.21	%			1.01	%
U.S. Auto Annualized Net Charge-Offs - HFI Commercial Contract $'s
Net charge-offs		$	0			$	0			$	0			$	3			$	0			$	0			$	0
% of avg. HFI assets (2)			0.00	%			0.00	%			0.00	%			0.04	%			0.00	%

 

(1) Loans within this table are classified as held-for-investment recorded at amortized cost as these loans are included in our allowance for loan losses.

(2) 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, conditional repurchase loans and loans held-for-sale during the year for each loan category.

(3) ALLL coverage ratios are based on the allowance for loan losses related to loans held-for-investment excluding those loans held at fair value as a percentage of the unpaid principal balance, net of premiums and discounts.

(4) Excludes $66 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 3Q16, $88 million in 2Q16, $87 million in 1Q16, $66 million in 4Q15 and $107 million in 3Q15.

(5) Dollar amount of accruing contracts greater than 30 days past due

 

 

ALLY FINANCIAL INC. CREDIT RELATED INFORMATION, CONTINUED
($ in millions)
CONTINUING OPERATIONS

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Automotive Finance (1)
Consumer
Allowance for loan losses		$	912			$	862			$	850			$	834			$	804			$	50			$	108
Total consumer loans (2)		$	64,816			$	63,281			$	63,013			$	64,292			$	63,610			$	1,535			$	1,206
Coverage ratio (3)			1.4	%			1.4	%			1.3	%			1.3	%			1.3	%
Commercial
Allowance for loan losses		$	57			$	57			$	55			$	53			$	48			$	0			$	9
Total commercial loans		$	36,036			$	35,251			$	34,325			$	34,895			$	32,322			$	785			$	3,714
Coverage ratio			0.2	%			0.2	%			0.2	%			0.2	%			0.1	%
Mortgage (1)
Consumer
Mortgage Finance
Allowance for loan losses		$	19			$	18			$	18			$	16			$	17			$	0			$	2
Total consumer loans		$	7,931			$	8,009			$	7,443			$	6,413			$	6,286			$	(78	)		$	1,645
Coverage ratio			0.2	%			0.2	%			0.2	%			0.2	%			0.3	%
Mortgage - Legacy
Allowance for loan losses		$	81			$	91			$	97			$	98			$	102			$	(9	)		$	(20	)
Total consumer loans		$	2,926			$	3,075			$	3,232			$	3,360			$	3,483			$	(149	)		$	(557	)
Coverage ratio			2.8	%			2.9	%			3.0	%			2.9	%			2.9	%
Total Mortgage
Allowance for loan losses		$	100			$	109			$	115			$	114			$	119			$	(9	)		$	(19	)
Total consumer loans		$	10,857			$	11,084			$	10,675			$	9,773			$	9,769			$	(227	)		$	1,088
Coverage ratio			0.9	%			1.0	%			1.1	%			1.2	%			1.2	%
Corporate Finance (1)
Allowance for loan losses		$	62			$	59			$	56			$	50			$	44			$	3			$	18
Total commercial loans		$	3,182			$	2,976			$	2,796			$	2,568			$	2,228			$	206			$	954
Coverage ratio			2.0	%			2.0	%			2.0	%			2.0	%			2.0	%
Corporate and Other (1)
Allowance for loan losses		$	3			$	2			$	1			$	3			$	3			$	1			$	(0	)
Total commercial loans		$	68			$	61			$	67			$	72			$	61			$	7			$	7
Coverage ratio			3.7	%			2.6	%			2.1	%			4.0	%			4.2	%

 

(1) ALLL coverage ratios are based on the domestic allowance as a percentage of finance receivables and loans reported at their gross carrying value, which includes the principal amount outstanding, net of unearned income, unamortized deferred fees reduced by costs on originated loans, unamortized premiums and discounts on purchased loans, unamortized basis adjustments arising from the designation of finance receivables and loans as the hedged item in qualifying fair value hedge relationships, and cumulative principal charge-offs. Excludes loans held at fair value.

(2) Includes $66 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 3Q16, $88 million in 2Q16, $87 million in 1Q16, $66 million in 4Q15 and $107 million in 3Q15.

(3) Excludes $66 million Corp. Treasury hedging activity related to domestic consumer auto outstandings in 3Q16, $88 million in 2Q16, $87 million in 1Q16, $66 million in 4Q15 and $107 million in 3Q15.

 

 

ALLY FINANCIAL INC. CAPITAL
($ in billions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		Basel III Transition
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Capital (1)
Risk-weighted assets		$	135.5			$	133.8			$	133.6			$	135.8			$	133.8			$	1.7			$	1.7
Common Equity Tier 1 (CET1) capital ratio (2)			9.5	%			9.6	%			9.5	%			9.2	%			10.0	%
Tier 1 capital ratio			11.1	%			11.2	%			11.6	%			11.1	%			12.0	%
Total capital ratio			12.8	%			12.8	%			13.0	%			12.5	%			12.9	%
Tangible common equity / Tangible assets (3)(4)			8.5	%			8.5	%			8.4	%			8.0	%			8.8	%
Tangible common equity / Risk-weighted assets (3)			9.8	%			10.0	%			9.8	%			9.4	%			10.3	%
Shareholders’ equity		$	13.6			$	13.6			$	13.8			$	13.4			$	14.6			$	-			$	(1.0	)
less:  Preferred equity			-				-				(0.7	)			(0.7	)			(0.8	)			-				0.8
Disallowed DTA			(0.4	)			(0.5	)			(0.5	)			(0.4	)			(0.4	)			0.1				-
Certain AOCI items and other adjustments			(0.3	)			(0.3	)			-				0.2				-				-				(0.3	)
Common Equity Tier 1 capital (2)		$	12.9			$	12.8			$	12.7			$	12.5			$	13.4			$	0.1			$	(0.5	)
Common Equity Tier 1 capital		$	12.9			$	12.8			$	12.7			$	12.5			$	13.4			$	0.1			$	(0.5	)
add:  Preferred equity			-				-				0.7				0.7				0.7				-				(0.7	)
Trust preferred securities			2.5				2.5				2.5				2.5				2.5				-				-
less:  Other adjustments			(0.3	)			(0.4	)			(0.4	)			(0.6	)			(0.6	)			0.1				0.3
Tier 1 capital		$	15.1			$	15.0			$	15.5			$	15.1			$	16.1			$	0.1			$	(1.0	)
Tier 1 capital		$	15.1			$	15.0			$	15.5			$	15.1			$	16.1			$	0.1			$	(1.0	)
add:  Qualifying subordinated debt and redeemable preferred stock			1.2				1.2				0.9				0.9				0.3				-				0.9
Allowance for loan and lease losses includible in Tier 2 capital and other adjustments			1.1				1.0				1.0				1.0				1.0				0.1				0.1
Total capital		$	17.3			$	17.2			$	17.4			$	17.0			$	17.3			$	0.1			$	0.0
Total shareholders' equity		$	13.6			$	13.6			$	13.8			$	13.4			$	14.6			$	-			$	(1.0	)
less:  Preferred equity			-				-				(0.7	)			(0.7	)			(0.8	)			-				0.8
Goodwill and intangible assets, net of deferred tax liabilities			(0.3	)			(0.3	)			-				-				-				-				(0.3	)
Tangible common equity (3)		$	13.3			$	13.3			$	13.1			$	12.7			$	13.8			$	-			$	(0.5	)
Total assets		$	157.4			$	157.9			$	156.5			$	158.6			$	155.9			$	(0.5	)		$	1.5
less:  Goodwill and intangible assets, net of deferred tax liabilities			(0.3	)			(0.3	)			-				-				-				-				(0.3	)
Tangible assets (4)		$	157.1			$	157.7			$	156.5			$	158.6			$	155.9			$	(0.6	)		$	1.2
Regulatory Capital - Basel III transition to fully phased-in
Numerator
Common equity tier 1 capital (transition)		$	12.9			$	12.8			$	12.7			$	12.5			$	13.4
DTAs arising from NOL and tax credit carryforwards phased-in during transition			(0.3	)			(0.3	)			(0.3	)			(0.6	)			(0.6	)
Intangibles phased-in during transition			(0.0	)			(0.0	)			-				-				-
Common equity tier 1 capital (fully phased-in)		$	12.6			$	12.5			$	12.3			$	11.9			$	12.9
Denominator
Risk-weighted assets (transition)		$	135.5			$	133.8			$	133.6			$	135.8			$	133.8
DTAs arising from temporary differences that could not be realized through NOL , net of VA and net of DTLs phased-in during transition			0.5				0.5				0.4				0.5				0.7
Intangibles phased in during transition			0.0				0.0				0.0				-				-
Risk-weighted assets (fully phased-in)		$	136.0			$	134.2			$	134.0			$	136.4			$	134.5
Metric
Common equity tier 1 (transition)			9.5	%			9.6	%			9.5	%			9.2	%			10.0	%
Common equity tier 1 (fully phased-in) (2)			9.3	%			9.3	%			9.2	%			8.7	%			9.6	%

 

Note: Numbers may not foot due to rounding

(1) Basel III rules became effective on January 1, 2015, subject to transition provisions primarily related to deductions and adjustments impacting CET1 capital and Tier 1 capital

(2) Common Equity Tier 1 capital (“CET1”) fully phased-in: Under the Basel III regulatory framework as adopted in the United States, banking organizations like the company are required to comply with a minimum ratio of common equity tier 1 capital to risk-weighted assets (CET1 Capital Ratio). Common equity tier 1 capital generally consists of common stock (plus any related surplus and net of any treasury stock), retained earnings, accumulated other comprehensive income, and minority interests in the common equity of consolidated subsidiaries, subject to specified conditions and adjustments. The obligation to comply with the minimum CET1 Capital Ratio is subject to ongoing transition periods and other provisions under Basel III. Management believes that both the transitional CET1 Capital Ratio and the fully phased-in CET1 Capital Ratio are helpful to readers in evaluating the company’s capital utilization and adequacy in absolute terms and relative to its peers. The fully phased-in CET1 Capital Ratio is a non-GAAP financial measure that is reconciled to the transitional CET1 Capital Ratio above.

(3) Represents a non-GAAP financial measure. We define tangible common equity as common stockholders’ equity less goodwill and identifiable intangible assets, net of deferred tax liabilities. Ally considers various measures when evaluating capital adequacy, including tangible common equity. Tangible 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 that tangible common equity is important because we believe analysts and banking regulators may assess our capital adequacy using this measure. 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.

(4) Represents a non-GAAP financial measure. We define tangible assets as total assets less goodwill and intangible assets, net of deferred tax liabilities.

 

 

ALLY FINANCIAL INC. LIQUIDITY
($ in billions)

 

		9/30/2016								6/30/2016								9/30/2015
		Parent (1)				Ally Bank				Parent (1)				Ally Bank				Parent (1)				Ally Bank
Available Liquidity
Cash and cash equivalents (2)		$	1.9			$	1.9			$	2.0			$	3.3			$	2.5			$	2.4
Highly liquid securities (3)			1.7				8.2				2.4				7.8				1.8				6.6
Current committed unused capacity			2.8				0.7				1.1				1.1				1.3				0.2
Subtotal		$	6.4			$	10.7			$	5.4			$	12.1			$	5.6			$	9.3
Ally Bank intercompany loan (4)			0.3				(0.3	)			1.4				(1.4	)			-				-
Total Current Available Liquidity		$	6.7			$	10.4			$	6.8			$	10.7			$	5.6			$	9.3
		2016				2017				2018				2019				2020				2021 and after
Unsecured Long-Term Debt Maturity Profile
Consolidated remaining maturities (5)		$	0.0			$	4.4			$	3.7			$	1.7			$	2.2			$	9.1

 

(1) Parent company liquidity is defined as our consolidated operations less Ally Bank and the regulated subsidiaries of Ally Insurance's holding company

(2) May include the restricted cash accumulation for retained notes maturing within the following 30 days and returned to Ally on the distribution date

(3) Includes unencumbered UST, Agency debt and Agency MBS

(4) To optimize use of cash and secured facility capacity between entities, Ally Financial lends cash to Ally Bank from time to time under an intercompany loan agreement. Amounts outstanding on this loan are repayable to Ally Financial at any time, subject to 5 days notice

(5) Excludes OID

 

 

ALLY FINANCIAL INC. NET INTEREST MARGIN AND DEPOSITS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Average Balance Details
Retail Auto Loan		$	64,223			$	63,621			$	64,566			$	64,231			$	62,115			$	602			$	2,108
Auto Lease (net of dep)			13,232				14,392				15,638				16,824				17,519				(1,160	)			(4,287	)
Commercial Auto			34,905				34,800				34,026				34,077				31,726				105				3,179
Corporate Finance			3,115				2,973				2,781				2,506				2,309				142				806
Mortgage			11,052				10,764				10,152				9,809				9,564				288				1,488
Cash, Securities and Other			20,080				20,269				19,758				18,822				21,413				(189	)			(1,333	)
Total Earning Assets		$	146,607			$	146,819			$	146,921			$	146,269			$	144,646			$	(212	)		$	1,961
Interest Revenue			1,648				1,630				1,595				1,582				1,567				18				81
LT Unsecured Debt		$	21,714			$	22,698			$	22,452			$	21,716			$	20,884			$	(984	)		$	830
Secured Debt			32,343				34,019				37,587				40,134				42,150				(1,676	)			(9,807	)
Deposits (2)			74,263				71,570				68,240				64,985				62,882				2,693				11,381
Other Borrowings (3)			10,834				10,862				11,709				11,695				11,890				(28	)			(1,056	)
Total Funding Sources (1)		$	139,154			$	139,149			$	139,988			$	138,530			$	137,806			$	5			$	1,348
Interest Expense			641				637				635				593				593				4				48
Net Financing Revenue (4)		$	1,007			$	993			$	960			$	989			$	974			$	14			$	33
Net Interest Margin (yield details)
Retail Auto Loan			5.58	%			5.47	%			5.31	%			5.26	%			5.24	%
Auto Lease (net of dep)			7.25	%			7.46	%			6.66	%			6.51	%			6.84	%
Commercial Auto			3.03	%			3.03	%			2.98	%			2.78	%			2.85	%
Corporate Finance			6.39	%			6.36	%			6.51	%			6.33	%			6.19	%
Mortgage			3.24	%			3.36	%			3.37	%			3.28	%			3.36	%
Cash, Securities and Other			1.98	%			1.94	%			2.06	%			1.98	%			1.83	%
Total Earning Assets			4.47	%			4.47	%			4.37	%			4.29	%			4.30	%
LT Unsecured Debt			4.87	%			4.80	%			4.89	%			4.55	%			4.96	%
Secured Debt			1.62	%			1.56	%			1.48	%			1.27	%			1.19	%
Deposits			1.14	%			1.14	%			1.14	%			1.15	%			1.14	%
Other Borrowings (3)			1.14	%			1.15	%			1.06	%			0.95	%			0.83	%
Total Funding Sources (1)			1.83	%			1.84	%			1.82	%			1.70	%			1.71	%
NIM (as reported)			2.69	%			2.68	%			2.59	%			2.65	%			2.64	%
NIM (excluding OID) (1)			2.73	%			2.72	%			2.63	%			2.68	%			2.67	%
Key Deposit Statistics
Average retail CD maturity (months)			31.1				31.4				31.6				31.8				32.0				(0.3	)			(0.9	)
Average retail deposit rate			1.10	%			1.11	%			1.11	%			1.12	%			1.14	%
Ally Financial Deposits Levels
Ally Bank retail		$	63,880			$	61,239			$	58,977			$	55,437			$	53,501			$	2,641			$	10,379
Ally Bank brokered			11,570				11,269				10,979				10,723				10,201				301				1,370
Other			294				294				309				318				318				(0	)			(24	)
Total deposits		$	75,744			$	72,802			$	70,265			$	66,478			$	64,020			$	2,942			$	11,724
Ally Bank Deposit Mix
Retail CD			27.9	%			29.0	%			30.1	%			31.8	%			34.0	%
MMA/OSA/Checking			56.8	%			55.4	%			54.2	%			52.0	%			50.0	%
Brokered			15.3	%			15.5	%			15.7	%			16.2	%			16.0	%

 

(1) Excludes OID

(2) Includes brokered deposits. Includes average noninterest-bearing deposits of $97 million in 3Q16, $91 million in 2Q16, $92 million in 1Q16, $95 million in 4Q15 and $91 million in 3Q15

(3) Includes Demand Notes, FHLB and Repurchase Agreements

(4) Excludes dividend income from equity investments

 

 

ALLY FINANCIAL INC. ALLY BANK CONSUMER MORTGAGE HFI PORTFOLIOS (PERIOD-END)
($ in billions)

 

		HISTORICAL QUARTERLY TRENDS
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15
Mortgage Finance HFI Portfolio
Loan Value
Gross carry value		$	7.9			$	8.0			$	7.4			$	6.4			$	6.3
Net carry value		$	7.9			$	8.0			$	7.4			$	6.4			$	6.3
Estimated Pool Characteristics
% Second lien			0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
% Interest only			0.3	%			0.4	%			0.5	%			0.6	%			0.6	%
% 30+ Day delinquent			0.9	%			0.8	%			1.0	%			0.9	%			1.0	%
% Low/No documentation			0.0	%			0.0	%			0.0	%			0.0	%			0.0	%
% Non-primary residence			3.4	%			3.4	%			3.5	%			3.4	%			3.4	%
Refreshed FICO			772				771				770				769				768
Wtd. Avg. LTV/CLTV (1)			60.6	%			61.1	%			60.8	%			60.4	%			61.4	%
Corporate Other Legacy Mortgage HFI Portfolio
Loan Value
Gross carry value		$	2.9			$	3.1			$	3.2			$	3.4			$	3.5
Net carry value		$	2.8			$	3.0			$	3.1			$	3.3			$	3.4
Estimated Pool Characteristics
% Second lien			18.1	%			18.4	%			18.6	%			18.9	%			19.2	%
% Interest only			8.7	%			12.9	%			14.0	%			16.9	%			19.4	%
% 30+ Day delinquent			4.1	%			4.0	%			4.1	%			4.4	%			4.1	%
% Low/No documentation			22.8	%			22.9	%			22.7	%			22.6	%			22.5	%
% Non-primary residence			7.4	%			7.4	%			7.4	%			7.4	%			7.4	%
Refreshed FICO			730				728				728				728				728
Wtd. Avg. LTV/CLTV (1)			76.6	%			77.8	%			77.6	%			78.1	%			77.4	%

 

(1) Updated home values derived using a combination of appraisals, BPOs, AVMs and MSA level house price indices; calculation only includes first liens

 

 

ALLY FINANCIAL INC. DISCONTINUED OPERATIONS
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Impact of Discontinued Operations (1)
Auto Finance		$	(0	)		$	(0	)		$	(1	)		$	(5	)		$	(4	)		$	(0	)		$	4
Insurance			-				0				-				(0	)			-				(0	)			-
Mortgage Finance			-				-				-				-				-				-				-
Corporate Finance			-				0				(0	)			-				1				(0	)			(1	)
Corporate and Other			(45	)			(3	)			6				2				0				(42	)			(46	)
Consolidated pretax (loss) / income		$	(46	)		$	(3	)		$	4			$	(3	)		$	(2	)		$	(43	)		$	(43	)
Tax expense (benefit)			(7	)			(6	)			1				10				4				(1	)			(10	)
Consolidated net (loss) / income		$	(52	)		$	3			$	3			$	(13	)		$	(5	)		$	(55	)		$	(47	)
Assets of discontinued operations held-for-sale		$	-			$	-			$	-			$	-			$	-			$	-			$	-

 

(1) Disc ops activity reflects several actions including divestitures of international businesses and discontinued mortgage operations in addition to certain discrete tax items

 

 

ALLY FINANCIAL INC. PER SHARE RELATED INFORMATION
($ in millions, shares in thousands)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Earnings Per Share Data
Net income (loss)		$	209			$	360			$	250			$	263			$	268			$	(151	)		$	(59	)
less:  Preferred stock dividends			-				15				15				1,216				38				(15	)			(38	)
GAAP net income available to common shareholders		$	209			$	345			$	235			$	(953	)		$	230			$	(136	)		$	(21	)
Weighted-average shares outstanding - basic (1)			482,393				485,370				484,233				483,300				483,073				(2,978	)			(680	)
Weighted-average shares outstanding - diluted (1)(2)			483,575				486,074				484,654				484,845				484,399				(2,499	)			(824	)
Issued shares outstanding (period-end)			475,470				483,753				483,475				481,980				481,750				(8,283	)			(6,280	)
Net income (loss) per share - basic (1)		$	0.43			$	0.71			$	0.49			$	(1.97	)		$	0.48			$	(0.28	)		$	(0.04	)
Net income (loss) per share - diluted (1)(2)		$	0.43			$	0.71			$	0.49			$	(1.97	)		$	0.47			$	(0.28	)		$	(0.04	)
Adjusted Earnings per Share ("Adjusted EPS")
Numerator
GAAP net income available to common shareholders		$	209			$	345			$	235			$	(953	)		$	230			$	(136	)		$	(21	)
less: Disc Ops, net of tax			52				(3	)			(3	)			13				5				55				47
add back: Original issue discount expense ("OID expense")			15				14				15				12				11				1				3
add back: Repositioning Items			-				4				7				3				2				(4	)			(2	)
less: OID & Repo. Tax (35% in '16, 34% in '15)			(5	)			(6	)			(8	)			(5	)			(5	)			1				(1	)
Significant Discrete Tax Items			-				(91	)			7				-				-				91				-
Series G Actions			-				-				-				1,179				-				-				-
Series A Actions			-				1				-				-				-				(1	)			-
Core net income available to common shareholders (3)		$	271			$	263			$	253			$	249			$	244			$	8			$	27
Denominator
Weighted-Average Shares Outstanding - (Diluted, thousands)			483,575				486,074				484,654				484,845				484,399
Adjusted EPS (4)		$	0.56			$	0.54			$	0.52			$	0.52			$	0.51			$	0.02			$	0.05

 

(1) Includes shares related to share-based compensation that vested but were not yet issued

(2) Due to antidilutive effect of the net loss from continuing operations attributable to common shareholders for the year ended December 31, 2015, basic weighted-average common shares outstanding were used to calculate basic and diluted earnings per share

(3) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.

(4) Adjusted earnings per share (Adjusted EPS) is a non-GAAP financial measure that adjusts GAAP EPS for revenue and expense items that are typically strategic in nature or that management otherwise does not view as reflecting the operating performance of the company. Management believes Adjusted EPS can help the reader better understand the operating performance of the core businesses and their ability to generate earnings. In the numerator of Adjusted EPS, GAAP net income available to common is adjusted for the following items: (a) excludes discontinued operations, net of tax, as Ally is primarily a domestic company and sales of international businesses and other discontinued operations in the past have significantly impacted GAAP EPS, (b) adds back the tax-effected non-cash expense bond exchange original issue discount (OID), (c) adds back tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, (d) excludes certain discrete tax items that do not relate to the operating performance of the core businesses, and (e) adjusts for preferred stock capital actions (e.g., Series A and Series G) that have been taken by the company to normalize its capital structure.

 

 

ALLY FINANCIAL INC. ADJUSTED TANGIBLE BOOK PER SHARE RELATED INFORMATION
($ in billions, shares in thousands)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Adjusted Tangible Book Value Per Share ("Adjusted TBVPS") Information
Numerator
GAAP shareholder's equity		$	13.6			$	13.6			$	13.8			$	13.4			$	14.6			$	0.0			$	(1.0	)
less: Preferred equity			-				-				(0.7	)			(0.7	)			(0.8	)			-				0.8
GAAP Common shareholder's equity			13.6				13.6				13.1				12.7				13.8				0.0				(0.2	)
less: Goodwill and identifiable intangibles, net of DTLs			(0.3	)			(0.3	)			(0.0	)			(0.0	)			(0.0	)			(0.0	)			(0.3	)
Tangible common equity			13.3				13.3				13.1				12.7				13.8				(0.0	)			(0.4	)
less: Tax-effected bond OID (35% tax rate in 2016; 34% tax rate in 2015 and prior)			(0.8	)			(0.8	)			(0.8	)			(0.9	)			(0.9	)			0.0				0.0
less: Series G discount			-				-				-				-				(1.2	)			-				1.2
Adjusted tangible book value		$	12.5			$	12.5			$	12.3			$	11.9			$	11.7			$	0.0			$	0.8
Denominator
Issued shares outstanding (period-end, thousands)			475,470				483,753				483,475				481,980				481,750
GAAP shareholder's equity per share		$	28.7			$	28.1			$	28.6			$	27.9			$	30.3			$	0.5			$	(1.6	)
less: Preferred equity per share			-				-				(1.4	)			(1.4	)			(1.7	)			-				1.7
GAAP Common shareholder's equity per share			28.7				28.1				27.2				26.4				28.6				0.5				0.0
less: Goodwill and identifiable intangibles, net of DTLs per share			(0.6	)			(0.6	)			(0.1	)			(0.1	)			(0.1	)			(0.1	)			(0.6	)
Tangible common equity per share			28.0				27.6				27.1				26.4				28.6				0.5				(0.6	)
less: Tax-effected bond OID (35% tax rate in 2016; 34% tax rate in 2015 and prior) per share			(1.7	)			(1.7	)			(1.7	)			(1.8	)			(1.8	)			(0.0	)			0.1
less: Series G discount per share			-				-				-				-				(2.4	)			-				2.4
Adjusted tangible book value per share (1)		$	26.3			$	25.9			$	25.4			$	24.6			$	24.3			$	0.4			$	2.0

 

(1) Adjusted tangible book value per share (Adjusted TBVPS) is a non-GAAP financial measure that reflects the book value of equity available to shareholders even if original issue discount (OID) expense were accelerated immediately through the financial statements. As a result, management believes Adjusted TBVPS provides the reader with an assessment of value that is more conservative than GAAP common shareholder’s equity per share. Adjusted TBVPS generally adjusts common equity for (a) goodwill and identifiable intangibles, net of DTLs, (b) tax-effected bond OID to reduce tangible common equity in the event the corresponding discounted bonds are redeemed/tendered and (c) Series G discount which reduces tangible common equity as the company has normalized its capital structure.

 

 

ALLY FINANCIAL INC. CORE ROTCE RELATED INFORMATION
($ in millions) unless noted otherwise

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Core Return on Tangible Common Equity ("Core ROTCE")
Numerator
GAAP net income available to common shareholders		$	209			$	345			$	235			$	(953	)		$	230			$	(136	)		$	(21	)
less: Disc Ops, net of tax			52				(3	)			(3	)			13				5				55				47
add back: Original issue discount expense ("OID expense")			15				14				15				12				11				1				3
add back: Repositioning Items			-				4				7				3				2				(4	)			(2	)
less: OID & Repo. Tax (35% in '16, 34% in '15)			(5	)			(6	)			(8	)			(5	)			(5	)			1				(1	)
Significant Discrete Tax Items & Other			-				(91	)			7				8				2				91				(2	)
Series G Actions			-				-				-				1,179				-				-				-
Series A Actions			-				1				-				-				-				(1	)			-
Core net income available to common shareholders (1)		$	271			$	263			$	253			$	257			$	246			$	8			$	25
Denominator (2-period average, $ billions)
GAAP shareholder's equity		$	13.6			$	13.7			$	13.6			$	14.0			$	14.4			$	(0.1	)		$	(0.8	)
less: Preferred equity			0.0				0.3				0.7				0.8				0.8				(0.3	)			(0.8	)
less: Goodwill & identifiable intangibles, net of deferred tax liabilities ("DTLs")			0.3				0.1				0.0				0.0				0.0				0.1				0.3
Tangible common equity		$	13.3			$	13.2			$	12.9			$	13.2			$	13.6			$	0.1			$	(0.3	)
less: Unamortized original issue discount ("OID discount")			1.3				1.3				1.3				1.3				1.3				(0.0	)			(0.0	)
less: Net deferred tax asset ("DTA")			1.0				1.1				1.2				1.4				1.5				(0.1	)			(0.5	)
Normalized common equity (2)		$	11.0			$	10.8			$	10.4			$	10.5			$	10.7			$	0.2			$	0.3
Core ROTCE (3)			9.8	%			9.7	%			9.8	%			9.8	%			9.2	%

 

(1) Core net income available to common is a non-GAAP financial measure that serves as the numerator in the calculations of Adjusted EPS and Core ROTCE and that, like those measures, is believed by management to help the reader better understand the operating performance of the core businesses and their ability to generate earnings. Core net income available to common adjusts GAAP net income available to common for discontinued operations, OID expense, repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items including tax settlements and preferred stock capital actions.

(2) Normalized common equity calculated using 2 period average

(3) Core return on tangible common equity (Core ROTCE) is a non-GAAP financial measure that management believes is helpful for readers to better understand the ongoing ability of the company to generate returns on its equity base that supports core operations. Ally’s Core net income available to common utilized a static 34% tax rate for purposes of calculating Core ROTCE through 4Q 2015. As of 1Q 2016, Ally’s Core net income available to common for purposes of calculating Core ROTCE is based on the actual effective tax rate for the period adjusted for any discrete tax items including tax settlements, which aligns with the methodology used calculating adjusted earnings per share.

(a) In the numerator of Core ROTCE, GAAP net income available to common is adjusted for discontinued operations net of tax, tax-effected OID expense, tax-effected repositioning items primarily related to the extinguishment of high-cost legacy debt and strategic activities, certain discrete tax items and preferred stock capital actions.
(b) In the denominator, GAAP shareholder’s equity is adjusted for preferred equity and goodwill and identifiable intangibles net of DTL, unamortized OID, and net DTA.

 

 

ALLY FINANCIAL INC. SUPPLEMENTAL FINANCIAL DATA
($ in millions)

 

		QUARTERLY TRENDS																				CHANGE VS.
		3Q 16				2Q 16				1Q 16				4Q 15				3Q 15				2Q 16				3Q 15
Adjusted Efficiency Ratio Calculation
Numerator
Total noninterest expense		$	735			$	773			$	710			$	668			$	674			$	(38	)		$	61
less: Rep and warrant expense			(2	)			(3	)			(1	)			(2	)			(3	)			2				1
less: Insurance expense			222				293				218				201				209				(71	)			13
less: Repositioning items			-				4				4				1				2				(4	)			(2	)
Adjusted noninterest expense		$	515			$	479			$	488			$	468			$	465			$	35			$	49
Denominator ($ millions)
Total net revenue		$	1,384			$	1,358			$	1,327			$	1,339			$	1,302			$	26			$	82
add: Original issue discount			15				14				15				12				11				1				3
add: Repositioning items			-				-				3				2				-				-				-
less: Insurance revenue			278				275				268				279				249				3				29
Adjusted net revenue		$	1,121			$	1,097			$	1,076			$	1,074			$	1,064			$	24			$	56
Adjusted Efficiency Ratio (1)			45.9	%			43.7	%			45.4	%			43.6	%			43.7	%
Noninterest Expense
Compensation and benefits		$	248			$	242			$	252			$	237			$	235			$	6			$	13
Technology and communications			70				67				66				69				65				3				5
Professional services			25				22				21				25				24				2				1
Servicing expenses (2)			58				56				56				56				51				2				7
Advertising and marketing			27				21				27				27				26				6				1
Other controllable expenses (3)			51				52				51				50				50				(1	)			1
Controllable Expense		$	479			$	459			$	473			$	465			$	449			$	20			$	30
Other Noninterest Expense			256				310				233				202				222				(54	)			34
Total Noninterest Expense (ex. repositioning) (4)		$	735			$	769			$	706			$	667			$	672			$	(34	)		$	63
Repositioning expenses (4)			-				4				4				1				2				(4	)			(2	)
Total Noninterest Expense (as reported)		$	735			$	773			$	710			$	668			$	674			$	(38	)		$	61

 

(1) Adjusted efficiency ratio is a non-GAAP financial measure that management believes is helpful to readers in comparing the efficiency of its core banking and lending businesses with those of its peers. In the numerator of Adjusted efficiency ratio, total noninterest expense is adjusted for Insurance segment expense, repositioning items primarily related to strategic activities and rep and warrant expense. In the denominator, total net revenue is adjusted for Insurance segment revenue, repositioning items primarily related to the extinguishment of high-cost legacy debt and original issue discount (OID).

(2) Includes lease and loan administration expenses and vehicle remarketing and repossession expenses

(3) Includes occupancy and premises and equipment depreciation

(4) Repositioning items are primarily related to the extinguishment of high-cost legacy debt and strategic activities