Ally Financial Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Ally Financial Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operations.</b>

AI Summary

Ally Financial Inc. (ALLY) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. Ally Financial Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's central index key is 0000040729. Ally Financial Inc. is classified under Standard Industrial Classification 6022 (State Commercial Banks). The company was formerly known as GMAC Inc., GMAC LLC, and GENERAL MOTORS ACCEPTANCE CORP.

Why It Matters

For investors and stakeholders tracking Ally Financial Inc., this filing contains several important signals. This filing provides investors with the latest financial data for Ally Financial, crucial for understanding its current performance and future outlook. As a major financial institution, Ally's quarterly reports offer insights into the health of the consumer and auto lending markets.

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 credit, interest rates, and economic downturns, as evidenced by its classification as a State Commercial Bank.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess Ally Financial's performance and potential risks.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-06 — Filing Date (Filed as of Date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2023-03-31 — Prior Year Quarter End Date (Comparison period end date)

Key Players & Entities

• Ally Financial Inc. (company) — Filer name
• 0000040729 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification (State Commercial Banks)
• GMAC INC. (company) — Former company name
• GMAC LLC (company) — Former company name
• GENERAL MOTORS ACCEPTANCE CORP (company) — Former company name
• DETROIT (company) — Business address city
• MI (company) — Business address state

FAQ

Industry Context

Ally Financial Inc. operates within the banking and financial services industry, specifically as a state commercial bank.

Regulatory Implications

As a commercial bank, Ally Financial is subject to regulations from various financial authorities, including those overseeing banking and consumer protection.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for revenue, net income, and balance sheet changes.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into business performance and outlook.
3. Examine any disclosed risk factors and their potential impact on the company's operations and profitability.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report (10-Q) for Ally Financial Inc. in the fiscal year 2024, following the previous year's filings.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ALLY NYSE Indicate by check

Filing Documents

• ally-20240331.htm (10-Q) — 6497KB
• exhibit101ally202433110-q.htm (EX-10.1) — 145KB
• exhibit311ally202433110-q.htm (EX-31.1) — 10KB
• exhibit312ally202433110-q.htm (EX-31.2) — 10KB
• exhibit32ally202433110-q.htm (EX-32) — 8KB
• 0000040729-24-000012.txt (&nbsp;) — 31772KB
• ally-20240331.xsd (EX-101.SCH) — 103KB
• ally-20240331_cal.xml (EX-101.CAL) — 207KB
• ally-20240331_def.xml (EX-101.DEF) — 773KB
• ally-20240331_lab.xml (EX-101.LAB) — 1342KB
• ally-20240331_pre.xml (EX-101.PRE) — 1116KB
• ally-20240331_htm.xml (XML) — 8467KB

— Financial Information

Part I — Financial Information

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Statement of Comprehensive ( Loss) Income (unaudited) for the Three Months Ended March 31, 2024, and 2023 5 Condensed Consolidated Balance Sheet (unaudited) at March 31, 2024, and December 31, 2023 7 Condensed Consolidated Statement of Changes in Equity (unaudited) for the Three Months Ended March 31, 2024, and 2023 9 Condensed Consolidated Statement of Cash Flows (unaudited) for the Three Months Ended March 31, 2024, and 2023 10 Notes to Condensed Consolidated Financial Statements (unaudited) 12 Note 1. Description of Business, Basis of Presentation, and Changes in Significant Accounting Policies 12 Note 2 . Held-for-sale O perations 13 Note 3 . Revenue from Co ntracts with Customers 15 Note 4 . Other Income, Net of Losses 16 Note 5 . Reserves for Insurance Losses and Loss Adjustment Expenses 16 Note 6 . Other Operating Expenses 17 Note 7 . Investment Securities 18 Note 8 . Finance Receivables and Loans, Net 22 Note 9 . Leasing 33 Note 10 . Securitizations and Variable Interest Entities 36 Note 1 1 . Other Assets 39 Note 1 2 . Deposit Liabilities 41 Note 1 3 . Debt 41 Note 1 4 . Accrued Expenses and Other Liabilities 43 Note 1 5 . Preferred Stock 43 Note 1 6 . Accumulated Other Comprehensive Loss 44 Note 1 7 . Earnings per Common Share 45 Note 1 8 . Regulatory Capital and Other Regulatory Matters 46 Note 1 9 . Derivative Instruments and Hedging Activities 49 Note 20 . Income Taxes 54 Note 2 1 . Fair Value 54 Note 2 2 . Offsetting Assets and Liabilities 60 Note 2 3 . Segment Information 61 Note 2 4 . Contingencies and Other Risks 63 Note 2 5 . Subsequent Events 64

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 65

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 116

Controls and Procedures

Item 4. Controls and Procedures 117

— Other Information

Part II — Other Information 118

Legal Proceedings

Item 1. Legal Proceedings 118

Risk Factors

Item 1A. Risk Factors 118

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 118

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 118

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 118

Other Information

Item 5. Other Information 118

Exhibits

Item 6. Exhibits 119

Signatures

Signatures 120 2 Table of Contents Index of Defined Terms Ally Financial Inc. Form 10-Q Glossary of Abbreviations and Acronyms The following is a list of abbreviations and acronyms that are used in this Quarterly Report on Form 10-Q. Term Definition ALCO Asset-Liability Committee ALM Asset Liability Management AOCI Accumulated other comprehensive income ASC Accounting Standards Codification ASU Accounting Standards Update Basel Committee Basel Committee on Banking Supervision BHC Bank holding company BHC Act Bank Holding Company Act of 1956, as amended BMC Better Mortgage Company Board Ally Board of Directors BTFP Bank Term Funding Program CD Certificate of deposit CECL Accounting Standards Update 2016-13 (and related Accounting Standards Updates), or current expected credit loss CODM Chief Operating Decision Maker COH Corporate overhead CRA Community Reinvestment Act of 1977, as amended CSG Commercial Services Group CVA Credit valuation adjustment DIF Deposit Insurance Fund Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended DVA Debit valuation adjustment EGRRCP Act Economic Growth, Regulatory Relief, and Consumer Protection Act, as amended ERMC Enterprise Risk Management Committee ESG Environmental, social, and governance ETF Exchange-traded fund Exchange Act Securities Exchange Act of 1934, as amended F&I Finance and insurance FASB Financial Accounting Standards Board FDI Act Federal Deposit Insurance Act, as amended FDIC Federal Deposit Insurance Corporation FDICIA Federal Deposit Insurance Corporation Improvement Act of 1991, as amended FHC Financial holding company FHLB Federal Home Loan Bank FRB Federal Reserve Bank, or Board of Governors of the Federal Reserve System, as the context requires FTP Funds-transfer pricing GAP Guaranteed asset protection GDP Gross domestic product of the United States of America GLB Act Gramm-Leach-Bliley Act of 1999, as

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statement of Comprehensive (Loss) Income (unaudited) Ally Financial Inc. Form 10-Q Three months ended March 31, ($ in millions) 2024 2023 Financing revenue and other interest income Interest and fees on finance receivables and loans $ 2,827 $ 2,575 Interest on loans held-for-sale 36 15 Interest and dividends on investment securities and other earning assets 266 238 Interest on cash and cash equivalents 97 56 Operating leases 356 402 Total financing revenue and other interest income 3,582 3,286 Interest expense Interest on deposits 1,651 1,217 Interest on short-term borrowings 23 12 Interest on long-term debt 248 227 Interest on other — 2 Total interest expense 1,922 1,458 Net depreciation expense on operating lease assets 204 226 Net financing revenue and other interest income 1,456 1,602 Other revenue Insurance premiums and service revenue earned 345 306 Gain on mortgage and automotive loans, net 6 4 Other gain on investments, net 29 74 Other income, net of losses 150 114 Total other revenue 530 498 Total net revenue 1,986 2,100 Provision for credit losses 507 446 Noninterest expense Compensation and benefits expense 519 537 Insurance losses and loss adjustment expenses 112 88 Other operating expenses 677 641 Total noninterest expense 1,308 1,266 Income from continuing operations before income tax expense 171 388 Income tax expense from continuing operations 14 68 Net income from continuing operations 157 320 Loss from discontinued operations, net of tax — ( 1 ) Net income $ 157 $ 319 Other comprehensive (loss) income, net of tax ( 173 ) 283 Comprehensive (loss) income $ ( 16 ) $ 602 Statement continues on the next page. The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 5 Table of Contents Condensed Consolidated Statement of Comprehensive (Loss) Income (unaudited) Ally Financia