GM Financial Receivables and Transactions

9 Months Ended

Sep. 30, 2022

GM Financial Receivables and Transactions


	September 30, 2022						December 31, 2021
	Retail		Commercial(a)		Total		Retail		Commercial(a)		Total


GM Financial receivables, net of fees	$	63,461	$	9,225	$	72,686	$	58,093	$	6,609	$	64,702
Less: allowance for loan losses	(2,044)		(42)		(2,086)		(1,839)		(47)		(1,886)
GM Financial receivables, net	$	61,416	$	9,183	$	70,600	$	56,254	$	6,562	$	62,816

Fair value of GM Financial receivables utilizing Level 2 inputs					$	9,183					$	6,562
Fair value of GM Financial receivables utilizing Level 3 inputs					$	59,890					$	57,613

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(a)Net of dealer cash management balances of $1.5 billion and $1.0 billion at September 30, 2022 and December 31, 2021. Under the cash management program, subject to certain conditions, a dealer may choose to reduce the amount of interest on its floorplan line by making principal payments to GM Financial in advance.


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Allowance for loan losses at beginning of period	$	2,027	$	1,850	$	1,886	$	1,978

Provision for loan losses	180		141		500		174
Charge-offs	(289)		(207)		(811)		(664)
Recoveries	173		133		511		429
Effect of foreign currency	(4)		(14)		—		(14)
Allowance for loan losses at end of period	$	2,086	$	1,903	$	2,086	$	1,903

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. The following tables are consolidated summaries of the retail finance receivables by FICO score or its equivalent, determined at origination, for each vintage of the retail finance receivables portfolio at September 30, 2022 and December 31, 2021:


	Year of Origination												September 30, 2022
	2022		2021		2020		2019		2018		Prior		Total		Percent
Prime – FICO score 680 and greater	$	17,901	$	14,587	$	8,858	$	2,614	$	1,272	$	311	$	45,543	71.8	%
Near-prime – FICO score 620 to 679	2,521		2,843		1,653		792		375		147		8,331		13.1	%
Sub-prime – FICO score less than 620	2,615		3,019		1,785		1,195		591		382		9,587		15.1	%
Retail finance receivables, net of fees	$	23,037	$	20,449	$	12,296	$	4,601	$	2,238	$	840	$	63,461	100.0	%


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total		Percent
Prime – FICO score 680 and greater	$	19,729	$	12,408	$	4,078	$	2,298	$	763	$	143	$	39,419	67.9	%
Near-prime – FICO score 620 to 679	3,856		2,388		1,229		648		274		84		8,479		14.6	%
Sub-prime – FICO score less than 620	4,053		2,528		1,777		972		570		295		10,195		17.5	%
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522	$	58,093	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 $618 million and $602 million at September 30, 2022 and December 31, 2021. The following tables are consolidated summaries of the delinquency status of the outstanding amortized cost of retail finance receivables for each vintage of the portfolio at September 30, 2022 and December 31, 2021, as well as summary totals for September 30, 2021:


	Year of Origination												September 30, 2022				September 30, 2021
	2022		2021		2020		2019		2018		Prior		Total		Percent		Total		Percent
0-to-30 days	$	22,792	$	19,917	$	11,944	$	4,359	$	2,096	$	729	$	61,836	97.4	%	$	56,086	97.7	%
31-to-60 days	183		381		256		179		106		81		1,185		1.9	%	989		1.7	%
Greater-than-60 days	54		133		87		58		33		29		394		0.6	%	315		0.5	%
Finance receivables more than 30 days delinquent	236		514		343		237		139		109		1,579		2.5	%	1,304		2.2	%
In repossession	9		18		9		5		3		2		46		0.1	%	34		0.1	%
Finance receivables more than 30 days delinquent or in repossession	245		532		352		242		142		111		1,625		2.6	%	1,338		2.3	%
Retail finance receivables, net of fees	$	23,037	$	20,449	$	12,296	$	4,601	$	2,238	$	840	$	63,461	100.0	%	$	57,424	100.0	%


	Year of Origination												December 31, 2021
	2021		2020		2019		2018		2017		Prior			Total		Percent
0-to-30 days	$	27,270	$	16,945	$	6,772	$	3,721	$	1,478	$	440		$	56,626	97.5	%
31-to-60 days	273		276		230		147		97		60			1,083		1.8	%
Greater-than-60 days	83		93		76		46		30		21			349		0.6	%
Finance receivables more than 30 days delinquent	356		369		306		193		127		81			1,432		2.4	%
In repossession	12		10		6		4		2		1			35		0.1	%
Finance receivables more than 30 days delinquent or in repossession	368		379		312		197		129		82			1,467		2.5	%
Retail finance receivables, net of fees	$	27,638	$	17,324	$	7,084	$	3,918	$	1,607	$	522		$	58,093	100.0	%

The outstanding amortized cost of retail finance receivables that are considered TDRs was $2.0 billion at September 30, 2022, including $217 million in nonaccrual loans.

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. There were no commercial finance receivables on nonaccrual status at September 30, 2022.

GM Financial's commercial risk model and 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 tables summarize the credit risk profile by dealer risk rating of commercial finance receivables at September 30, 2022 and December 31, 2021:


	Year of Origination														September 30, 2022
	Revolving		2022		2021		2020		2019		2018		Prior		Total		Percent
I	$	7,677	$	387	$	368	$	365	$	93	$	40	$	20	$	8,950	97.0	%
II	196		15		2		—		7		—		—		221		2.4	%
III	50		—		—		—		5		—		—		55		0.6	%
IV	—		—		—		—		—		—		—		—		—	%
Commercial finance receivables, net of fees	$	7,922	$	403	$	370	$	365	$	105	$	40	$	20	$	9,225	100.0	%


	Year of Origination														December 31, 2021
	Revolving		2021		2020		2019		2018		2017		Prior			Total		Percent
I	$	5,210	$	420	$	396	$	120	$	50	$	50	$	10		$	6,256	94.7	%
II	207		3		16		12		—		3		—			241		3.6	%
III	81		8		15		2		—		2		4			112		1.7	%
IV	—		—		—		—		—		—		—			—		—	%
Commercial finance receivables, net of fees	$	5,498	$	431	$	427	$	134	$	50	$	55	$	14		$	6,609	100.0	%

Floorplan advances comprise 94% of the total revolving balance at September 30, 2022 and December 31, 2021. Dealer term loans are presented by year of origination.