

	March 31, 2020									December 31, 2019
	Retail			Commercial(a)			Total			Retail			Commercial(a)			Total
GM Financial receivables, net of fees	$	42,474		$	11,760		$	54,234		$	42,229		$	11,671		$	53,900
Less: allowance for loan losses	(1,879		)	(87		)	(1,966		)	(866		)	(78		)	(944		)
GM Financial receivables, net	$	40,595		$	11,673		$	52,268		$	41,363		$	11,593		$	52,956

Fair value of GM Financial receivables utilizing Level 2 inputs							$	11,673								$	11,593
Fair value of GM Financial receivables utilizing Level 3 inputs							$	41,933								$	41,973



	Three Months Ended
	March 31, 2020			March 31, 2019
Allowance for loan losses at beginning of period	$	944		$	911
Impact of adoption ASU 2016-13 (Note 1)	801			—
Provision for loan losses	466			175
Charge-offs	(340		)	(309		)
Recoveries	156			145
Effect of foreign currency	(61		)	2
Allowance for loan losses at end of period	$	1,966		$	924

The provision for loan losses increased primarily due to increased expected charge-offs and decreased expected recoveries as a result of the economic impact of the novel strain of the coronavirus (COVID-19) pandemic.

Retail Finance Receivables GM Financial's retail finance receivable portfolio includes loans made to consumers and businesses to finance the purchase of vehicles for personal and commercial use. A summary of the amortized cost of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at March 31, 2020 is as follows:



	Year of Origination														March 31, 2020				December 31, 2019
	2020		2019		2018		2017		2016		2015		Prior		Total		Percent		Total		Percent
Prime – FICO score 680 and greater	$	4,027	$	9,976	$	6,806	$	3,199	$	1,143	$	343	$	15	$	25,509	60.0	%	$	25,400	60.1	%
Near-prime – FICO score 620 to 679	902		2,746		1,744		942		402		178		38		6,952		16.4	%	6,862		16.3	%
Sub-prime – FICO score less than 620	1,169		3,402		2,165		1,605		957		486		229		10,013		23.6	%	9,967		23.6	%
Retail finance receivables, net of fees	$	6,098	$	16,124	$	10,715	$	5,746	$	2,502	$	1,007	$	282	$	42,474	100.0	%	$	42,229	100.0	%

GM Financial reviews the ongoing credit quality of retail finance receivables based on customer payment activity. A retail account is considered delinquent if a substantial portion of a scheduled payment has not been received by the date the payment was contractually due. Retail finance receivables are collateralized by vehicle titles and, subject to local laws, GM Financial generally has the right to repossess the vehicle in the event the customer defaults on the payment terms of the contract. The accrual of finance charge income had been suspended on delinquent retail finance receivables with contractual amounts due of $735 million and $875 million at March 31, 2020 and December 31, 2019. The following table is a consolidated summary of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at March 31, 2020:



	Year of Origination														March 31, 2020				March 31, 2019
	2020		2019		2018		2017		2016		2015		Prior		Total		Percent		Total(a)		Percent
Current	$	6,078	$	15,702	$	10,297	$	5,411	$	2,277	$	877	$	214	$	40,856	96.2	%
31-to-60 days	19		302		294		241		161		93		47		1,157		2.7	%	$	1,048	2.5	%
Greater-than-60 days	1		113		118		90		62		36		21		441		1.1	%	412		1.0	%
Finance receivables more than 30 days delinquent	20		415		412		331		223		129		68		1,598		3.8	%	1,460		3.5	%
In repossession	—		7		6		4		2		1		—		20		—	%	47		0.1	%
Finance receivables more than 30 days delinquent or in repossession	20		422		418		335		225		130		68		1,618		3.8	%	$	1,507	3.6	%
Retail finance receivables, net of fees	$	6,098	$	16,124	$	10,715	$	5,746	$	2,502	$	1,007	$	282	$	42,474	100.0	%

Commercial Finance Receivables GM Financial's commercial finance receivables consist of dealer financings, primarily for inventory purchases. Proprietary models are used to assign a risk rating to each dealer. GM Financial performs periodic credit reviews of each dealership and adjusts the dealership's risk rating, if necessary. The commercial finance receivables on nonaccrual status were insignificant at March 31, 2020.

Prior to January 1, 2020, GM Financial estimated the allowance for loan losses based on an analysis of the experience of comparable commercial lenders. Effective January 1, 2020, GM Financial establishes the allowance for loan losses based on historical loss experience for the consolidated portfolio, in addition to forecast for industry vehicle sales. The updated risk rating categories are as follows:



Rating		Description
I		Performing accounts with strong to acceptable financial metrics with at least satisfactory capacity to meet financial commitments.
II		Performing accounts experiencing potential weakness in financial metrics and repayment prospects resulting in increased monitoring.
III		Non-Performing accounts with inadequate paying capacity for current obligations and have the distinct possibility of creating a loss if deficiencies are not corrected.
IV		Non-Performing accounts with inadequate paying capacity for current obligations and inherent weaknesses that make collection of liquidation in full highly questionable or improbable.

Dealers with III and IV risk ratings are subject to additional monitoring and restrictions on funding, including suspension of lines of credit and liquidation of assets. The following table summarizes the credit risk profile by dealer risk rating of commercial finance receivables at March 31, 2020:



	Year of Origination(a)																March 31, 2020
	Revolving		2020		2019		2018		2017		2016		2015		Prior		Total		Percent
I	$	9,976	$	76	$	226	$	105	$	113	$	118	$	63	$	9	$	10,686	90.9	%
II	606		—		9		3		21		23		13		23		698		5.9	%
III	325		—		8		10		14		—		1		—		358		3.0	%
IV	14		—		—		—		—		—		4		—		18		0.2	%
Commercial finance receivables, net of fees	$	10,921	$	76	$	243	$	118	$	148	$	141	$	81	$	32	$	11,760	100.0	%

Transactions with GM Financial The following table shows transactions between our Automotive segments and GM Financial. These amounts are presented in GM Financial's condensed consolidated balance sheets and statements of income.



	March 31, 2020		December 31, 2019
Condensed Consolidated Balance Sheets(a)
Commercial finance receivables, net due from GM consolidated dealers	$	522	$	478
Finance receivables from GM subsidiaries	$	30	$	39
Subvention receivable(b)	$	668	$	676
Commercial loan funding payable	$	38	$	74



	Three Months Ended
	March 31, 2020		March 31, 2019
Condensed Consolidated Statements of Income
Interest subvention earned on finance receivables	$	156	$	148
Leased vehicle subvention earned	$	805	$	835