Ally Financial Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Ally Financial Inc. has filed its 2023 annual report (10-K) detailing its financial performance and operations.</b>

AI Summary

Ally Financial Inc. (ALLY) filed a Annual Report (10-K) with the SEC on February 20, 2024. Ally Financial Inc. filed its 2023 Form 10-K on February 20, 2024. The filing covers the fiscal year ending December 31, 2023. The company was formerly known as GMAC Inc., GMAC LLC, and GENERAL MOTORS ACCEPTANCE CORP. Ally Financial Inc. is classified under SIC code 6022 for State Commercial Banks. The company's principal business address is 500 Woodward Ave., Floor 10, Detroit, MI 48226.

Why It Matters

For investors and stakeholders tracking Ally Financial Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Ally Financial's financial health, strategic initiatives, and risk factors for the fiscal year 2023, crucial for investors assessing the company's stability and future prospects. Understanding the details within this filing is essential for stakeholders to evaluate Ally Financial's performance against its historical data and industry benchmarks, particularly concerning its banking and financial services operations.

Risk Assessment

Risk Level: medium — Ally Financial Inc. shows moderate risk based on this filing. The company operates in the highly regulated financial services sector, facing risks related to economic downturns, interest rate fluctuations, and credit losses, as evidenced by its classification as a State Commercial Bank and its history as a former auto finance giant.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Ally Financial's resilience in the current economic climate and its strategic positioning in the banking sector.

Key Numbers

• 20231231 — Fiscal Year End (Period of report)
• 20240220 — Filing Date (Date filed)
• 6022 — SIC Code (Standard Industrial Classification)
• DE — State of Incorporation (State of incorporation)
• 001-03754 — SEC File Number (SEC file number)
• 24654185 — Film Number (Film number)
• 866-710-4623 — Business Phone (Business phone number)

Key Players & Entities

• Ally Financial Inc. (company) — Filer name
• GMAC INC. (company) — Former company name
• GMAC LLC (company) — Former company name
• GENERAL MOTORS ACCEPTANCE CORP (company) — Former company name
• 500 WOODWARD AVE. (company) — Business address
• DETROIT (company) — Business address city
• MI (company) — Business address state
• 48226 (company) — Business address zip

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk from its lending activities, including auto loans and other consumer and commercial financing, which could lead to significant losses if borrowers default.
• Interest Rate Risk [high — financial]: Fluctuations in interest rates can impact the company's net interest margin, the fair value of its investment securities, and the overall profitability of its lending and deposit-taking businesses.
• Regulatory and Compliance Risk [high — regulatory]: As a financial institution, Ally Financial is subject to extensive regulation and supervision, and changes in laws or failure to comply can result in penalties, fines, and reputational damage.
• Economic Conditions [medium — market]: The company's financial performance is sensitive to general economic conditions, including recessions, unemployment rates, and housing market fluctuations, which can affect loan demand and credit quality.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ALLY NYSE Securities regist
• $27.01 — , 2023 closing price of Common Stock of $27.01 per share as reported on the New York S
• $196.4 billion — r) is a financial-services company with $196.4 billion in assets as of December 31, 2023. The
• $186.1 billion — 31, 2023, Ally Bank had total assets of $186.1 billion and total nonaffiliate deposits of $154
• $154.7 billion — lion and total nonaffiliate deposits of $154.7 billion. Our long-term strategic objectives ar
• $50 billion — average wSTWF continues to remain under $50 billion), (6) exempted from the requirements of

Filing Documents

• ally-20231231.htm (10-K) — 8881KB
• exhibit106ally2023123110-k.htm (EX-10.6) — 36KB
• exhibit107ally2023123110-k.htm (EX-10.7) — 27KB
• exhibit108ally2023123110-k.htm (EX-10.8) — 26KB
• exhibit21ally2023123110-k.htm (EX-21) — 3KB
• exhibit231ally2023123110-k.htm (EX-23.1) — 7KB
• exhibit311ally2023123110-k.htm (EX-31.1) — 10KB
• exhibit312ally2023123110-k.htm (EX-31.2) — 10KB
• exhibit32ally2023123110-k.htm (EX-32) — 8KB
• exhibit97ally2023123110-k.htm (EX-97) — 27KB
• ally-20231231_g1.jpg (GRAPHIC) — 166KB
• ally202012311010.gif (GRAPHIC) — 3KB
• ally202012311011.gif (GRAPHIC) — 3KB
• ally20201231109.gif (GRAPHIC) — 3KB
• 0000040729-24-000004.txt (&nbsp;) — 42249KB
• ally-20231231.xsd (EX-101.SCH) — 140KB
• ally-20231231_cal.xml (EX-101.CAL) — 288KB
• ally-20231231_def.xml (EX-101.DEF) — 1048KB
• ally-20231231_lab.xml (EX-101.LAB) — 1946KB
• ally-20231231_pre.xml (EX-101.PRE) — 1538KB
• ally-20231231_htm.xml (XML) — 10639KB

Business

Item 1. Business 6

Risk Factors

Item 1A. Risk Factors 23

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 38

Cybersecurity

Item 1C. Cybersecurity 38

Properties

Item 2. Properties 38

Legal Proceedings

Item 3. Legal Proceedings 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 38 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39

[Reserved]

Item 6. [Reserved] 40

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 41

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 113

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 114 Management's Report on Internal Control over Financial Reporting 114 Reports of Independent Registered Public Accounting Firm 115 Consolidated Statement of Income 118 Consolidated Statement of Comprehensive Income (Loss) 120 Consolidated Balance Sheet 121 Consolidated Statement of Changes in Equity 123 Consolidated Statement of Cash Flows 124

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 126

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 211

Controls and Procedures

Item 9A. Controls and Procedures 211

Other Information

Item 9B. Other Information 211

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 211 Part III

Directors, Executive Officers, and Corporate Governance

Item 10. Directors, Executive Officers, and Corporate Governance 212

Executive Compensation

Item 11. Executive Compensation 214

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 214

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 214

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 214 Part IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 215

Form 10-K Summary

Item 16. Form 10-K Summary 217

Signatures

Signatures 218 2 Table of Contents Index of Defined Terms Ally Financial Inc. Form 10-K Glossary of Abbreviations and Acronyms The following is a list of abbreviations and acronyms that are used in this Annual Report on Form 10-K. Term Definition AC Audit Committee of the Ally Board of Directors ALCO Asset-Liability Committee ALM Asset Liability Management A.M. Best A.M. Best Company, Inc. AMLA Anti-Money Laundering Act of 2020 ASC Accounting Standards Codification ASU Accounting Standards Update Basel Committee Basel Committee on Banking Supervision BF Bornhuetter-Ferguson BHC Bank holding company BHC Act Bank Holding Company Act of 1956, as amended BHF Better Home & Finance Holding Company (formerly BMC Holdco) BMC Better Mortgage Company BMC Holdco Parent of BMC Board Ally Board of Directors BTFP Bank Term Funding Program CAMT Corporate alternative minimum tax CD Certificate of deposit CDP Carbon Disclosure Project CECL Accounting Standards Update 2016-13 (and related Accounting Standards Updates), or current expected credit loss CEO Chief executive officer CFPB Consumer Financial Protection Bureau CIDDO Chief Information, Data and Digital Officer CISO Chief Information Security Officer CODM Chief operating decision maker COH Corporate overhead COVID-19 Coronavirus disease 2019 CRA Community Reinvestment Act of 1977, as amended CSG Commercial Services Group CSRP Cyber Security Response Plan CVA Credit valuation adjustment DE&I Diversity, equity, and inclusion DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended DRR Designated reserve ratio DVA Debit valuation adjustment EAD Exposure at default EGRRCP Act Economic Growth, Regulatory Relief, and Consumer Protection Act, as amended ERG Employee resource group ERMC Enterprise Risk Management Committee ESG Environmental, social, and governance ETF Exchange-traded fund EV Electric vehicle Exch

Business

Item 1. Business Our Business Ally Financial Inc. (together with its consolidated subsidiaries unless the context otherwise requires, Ally, the Company, we, us, or our) is a financial-services company with $196.4 billion in assets as of December 31, 2023. The Company comprises the nation's largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to "Do It Right" and be a relentless ally for customers and communities. The Company serves customers through a full range of online banking services (including deposits, mortgage lending, point-of-sale personal lending and credit-card products) and securities brokerage and investment advisory services. The Company also includes a corporate finance business that offers capital for equity sponsors and middle-market companies. On December 31, 2023, we committed to sell our point-of-sale financing business, Ally Lending. Refer to Note 2 to the Consolidated Financial Statements for further information. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act. Our primary business lines are Dealer Financial Services, which is composed of our Automotive Finance and Insurance operations, Mortgage Finance, and Corporate Finance. Corporate and Other primarily consists of centralized corporate treasury activities, the management of our legacy mortgage portfolio, the activity related to Ally Invest, Ally Lending, and Ally Credit Card, and reclassifications and eliminations between the reportable operating segments. Ally Bank's assets and operating results are included within our Automotive Finance, Mortgage Finance, and Corporate Finance segments, as well as Corporate and Other, based on its underlying business activities. As of December 31, 2023, Ally Bank had total assets of $186.1 billion and total nonaffiliate deposits of $154.7 billion. Our long-term strategic objectives are centered around (1) differentiating our company a