GM Financial Receivables and Transactions | GM Financial Receivables and Transactions June 30, 2023 December 31, 2022 Retail Commercial(a) Total Retail Commercial(a) Total GM Financial receivables, net of fees $ 69,722 $ 11,120 $ 80,843 $ 65,322 $ 10,988 $ 76,310 Less: allowance for loan losses (2,166) (36) (2,202) (2,062) (34) (2,096) GM Financial receivables, net $ 67,557 $ 11,084 $ 78,641 $ 63,260 $ 10,954 $ 74,214 Fair value of GM Financial receivables utilizing Level 2 inputs $ 11,084 $ 10,954 Fair value of GM Financial receivables utilizing Level 3 inputs $ 66,754 $ 62,150 __________ (a) Net of dealer cash management balances of $2.3 billion and $1.9 billion at June 30, 2023 and December 31, 2022. 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 Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Allowance for loan losses at beginning of period $ 2,152 $ 1,928 $ 2,096 $ 1,886 Provision for loan losses 167 198 298 320 Charge-offs (323) (247) (645) (521) Recoveries 191 161 378 339 Effect of foreign currency and other 14 (14) 74 4 Allowance for loan losses at end of period $ 2,202 $ 2,027 $ 2,202 $ 2,027 The allowance for loan losses as a percentage of finance receivables, net was 2.7% at June 30, 2023 and December 31, 2022. 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 June 30, 2023 and December 31, 2022: Year of Origination June 30, 2023 2023 2022 2021 2020 2019 Prior Total Percent Prime – FICO score 680 and greater $ 13,278 $ 18,833 $ 11,095 $ 6,354 $ 1,609 $ 664 $ 51,834 74.3 % Near-prime – FICO score 620 to 679 1,743 2,763 2,165 1,191 509 243 8,615 12.4 % Sub-prime – FICO score less than 620 1,615 2,823 2,298 1,285 791 462 9,274 13.3 % Retail finance receivables, net of fees $ 16,636 $ 24,419 $ 15,558 $ 8,830 $ 2,909 $ 1,369 $ 69,722 100.0 % Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Total Percent Prime – FICO score 680 and greater $ 22,677 $ 13,399 $ 7,991 $ 2,254 $ 1,019 $ 205 $ 47,543 72.8 % Near-prime – FICO score 620 to 679 3,202 2,601 1,487 688 310 104 8,392 12.8 % Sub-prime – FICO score less than 620 3,211 2,746 1,604 1,051 496 280 9,388 14.4 % Retail finance receivables, net of fees $ 29,090 $ 18,745 $ 11,081 $ 3,992 $ 1,824 $ 589 $ 65,322 100.0 % 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 $661 million and $685 million at June 30, 2023 and December 31, 2022. The following tables are consolidated summaries of the amortized cost of retail finance receivables by delinquency status, for each vintage of the portfolio at June 30, 2023 and December 31, 2022, as well as summary totals for June 30, 2022: Year of Origination June 30, 2023 June 30, 2022 2023 2022 2021 2020 2019 Prior Total Percent Total Percent 0-to-30 days $ 16,532 $ 23,898 $ 15,039 $ 8,533 $ 2,726 $ 1,229 $ 67,957 97.5 % $ 59,681 97.5 % 31-to-60 days 79 368 377 218 137 105 1,284 1.8 % 1,129 1.8 % Greater-than-60 days 22 133 126 73 43 34 430 0.6 % 355 0.6 % Finance receivables more than 30 days delinquent 101 501 503 291 180 139 1,714 2.5 % 1,484 2.4 % In repossession 4 19 16 6 3 2 51 0.1 % 43 0.1 % Finance receivables more than 30 days delinquent or in repossession 105 521 518 298 183 141 1,765 2.5 % 1,527 2.5 % Retail finance receivables, net of fees $ 16,636 $ 24,419 $ 15,558 $ 8,830 $ 2,909 $ 1,369 $ 69,722 100.0 % $ 61,208 100.0 % Year of Origination December 31, 2022 2022 2021 2020 2019 2018 Prior Total Percent 0-to-30 days $ 28,676 $ 18,128 $ 10,702 $ 3,743 $ 1,685 $ 493 $ 63,426 97.1 % 31-to-60 days 310 452 275 184 103 69 1,393 2.1 % Greater-than-60 days 93 150 98 62 35 26 465 0.7 % Finance receivables more than 30 days delinquent 403 603 373 246 138 95 1,857 2.8 % In repossession 11 14 6 4 2 1 39 0.1 % Finance receivables more than 30 days delinquent or in repossession 414 617 380 249 140 96 1,896 2.9 % Retail finance receivables, net of fees $ 29,090 $ 18,745 $ 11,081 $ 3,992 $ 1,824 $ 589 $ 65,322 100.0 % 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. There were no commercial finance receivables on nonaccrual status at June 30, 2023. 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 June 30, 2023 and December 31, 2022: Year of Origination(a) June 30, 2023 Revolving 2023 2022 2021 2020 2019 Prior Total Percent I $ 9,537 $ 105 $ 426 $ 323 $ 334 $ 86 $ 39 $ 10,850 97.6 % II 136 — — 1 — — — 137 1.2 % III 106 — 18 — — 9 — 133 1.2 % IV — — — — — — — — — % Commercial finance receivables, net of fees $ 9,779 $ 105 $ 444 $ 324 $ 334 $ 95 $ 39 $ 11,120 100.0 % __________ (a) Floorplan advances comprise 95% of the total revolving balance. Dealer term loans are presented by year of origination. Year of Origination(a) December 31, 2022 Revolving 2022 2021 2020 2019 2018 Prior Total Percent I $ 9,493 $ 438 $ 356 $ 360 $ 91 $ 38 $ 18 $ 10,794 98.2 % II 89 — 1 — — — — 91 0.8 % III 78 15 — — 10 — — 104 0.9 % IV — — — — — — — — — % Commercial finance receivables, net of fees $ 9,660 $ 453 $ 357 $ 360 $ 102 $ 38 $ 18 $ 10,988 100.0 % __________ (a) Floorplan advances comprise 97% of the total revolving balance. Dealer term loans are presented by year of origination. 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. June 30, 2023 December 31, 2022 Condensed Consolidated Balance Sheets(a) Commercial finance receivables, net due from GM consolidated dealers $ 142 $ 187 Receivables from Cruise $ 222 $ 113 Subvention receivable(b) $ 570 $ 469 Commercial loan funding payable $ 42 $ 105 Three Months Ended Six Months Ended June 30, 2023 June 30, 2022 June 30, 2023 June 30, 2022 Condensed Consolidated Statements of Income Interest subvention earned on finance receivables $ 308 $ 235 $ 587 $ 455 Leased vehicle subvention earned $ 389 $ 500 $ 782 $ 1,047 __________ (a) All balance sheet amounts are eliminated upon consolidation. (b) Our Automotive segments made cash payments to GM Financial for subvention of $915 million and $561 million in the three months ended June 30, 2023 and 2022 and $1.7 billion and $1.0 billion in the six months ended June 30, 2023 and 2022. GM Financial's Board of Directors declared and paid dividends of $450 million and $750 million on its common stock in the three months ended June 30, 2023 and 2022 and $900 million and $750 million in the six months ended June 30, 2023 and 2022. |