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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on a Recurring Basis
The following tables display the assets and liabilities measured at fair value on a recurring basis including financial instruments elected for the fair value option. We often economically hedge the fair value change of our assets or liabilities with derivatives. The tables below display the hedges separately from the hedged items; therefore, they do not directly display the impact of our risk-management activities.
Recurring fair value measurements
September 30, 2024 ($ in millions)
Level 1Level 2Level 3Total
Assets
Investment securities
Equity securities (a) (b)$828 $— $— $828 
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies
2,115 — — 2,115 
U.S. States and political subdivisions
— 609 38 647 
Foreign government39 161 — 200 
Agency mortgage-backed residential
— 14,697 — 14,697 
Mortgage-backed residential
— 219 — 219 
Agency mortgage-backed commercial— 4,016 — 4,016 
Asset-backed— 202 — 202 
Corporate debt
— 1,809 — 1,809 
Total available-for-sale securities2,154 21,713 38 23,905 
Mortgage loans held-for-sale (c)— 23 7 30 
Other assets
Derivative contracts in a receivable position
Interest rate— 13 2 15 
Total derivative contracts in a receivable position— 13 2 15 
Total assets$2,982 $21,749 $47 $24,778 
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Foreign currency$— $2 $— $2 
Credit — — 5 5 
Total derivative contracts in a payable position
— 2 5 7 
Total liabilities$— $2 $5 $7 
(a)Our direct investment in any one industry did not exceed 13%. The concentration calculation excludes our investment in mutual funds and ETFs.
(b)Excludes $49 million of equity securities that are measured at fair value using the net asset value practical expedient and therefore are not classified in the fair value hierarchy.
(c)Carried at fair value due to fair value option elections.
Recurring fair value measurements
December 31, 2023 ($ in millions)
Level 1Level 2Level 3Total
Assets
Investment securities
Equity securities (a) (b)$765 $— $1 $766 
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies
2,075 — — 2,075 
U.S. States and political subdivisions
— 649 9 658 
Foreign government51 132 — 183 
Agency mortgage-backed residential
— 15,384 — 15,384 
Mortgage-backed residential
— 225 — 225 
Agency mortgage-backed commercial— 3,758 — 3,758 
Asset-backed— 332 — 332 
Corporate debt
— 1,800 — 1,800 
Total available-for-sale securities2,126 22,280 9 24,415 
Mortgage loans held-for-sale (c)— 25 — 25 
Other assets
Derivative contracts in a receivable position
Interest rate— 31 2 33 
Total derivative contracts in a receivable position— 31 2 33 
Total assets$2,891 $22,336 $12 $25,239 
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Foreign currency$— $7 $— $7 
Credit— — 10 10 
Total derivative contracts in a payable position
— 7 10 17 
Total liabilities$— $7 $10 $17 
(a)Our direct investment in any one industry did not exceed 11%. The concentration calculation excludes our investment in mutual funds and ETFs.
(b)Excludes $44 million of equity securities that are measured at fair value using the net asset value practical expedient and therefore are not classified in the fair value hierarchy.
(c)Carried at fair value due to fair value option elections.
Schedule of Fair Value, Assets Measured on a Recurring Basis, Unobservable Input Reconciliation
The following tables present the reconciliation for all Level 3 assets and liabilities measured at fair value on a recurring basis. We often economically hedge the fair value change of our assets or liabilities with derivatives and other financial instruments. The Level 3 items presented below may be hedged by derivatives and other financial instruments that are classified as Level 1 or Level 2. Thus, the following tables do not fully reflect the impact of our risk-management activities.
Equity securitiesAvailable-for-sale securitiesMortgage loans held-for-sale (a)Finance receivables and loans, net (a)
($ in millions)20242023202420232024202320242023
Assets
Fair value at July 1,$— $1 $11 $5 $2 $— $— $— 
Net realized/unrealized gains
Included in earnings— — — — — — — — 
Included in OCI— — — — — — — — 
Purchases and originations (b)— — 27 — 16 — — — 
Sales— — — — (11)— — — 
Issuances— — — — — — — — 
Settlements— — — (1)— — — — 
Transfers into Level 3— — — — — — — — 
Transfers out of Level 3— — — — — — — — 
Fair value at September 30,$— $1 $38 $4 $7 $— $— $— 
Net unrealized gains still held at September 30,
Included in earnings$— $— $— $— $— $— $— $— 
Included in OCI— — — — — — — — 
(a)Carried at fair value due to fair value option elections.
(b)Includes a $27 million reclassification of a commercial and industrial exposure to an available-for-sale debt security during the three months ended September 30, 2024.
Derivative liabilities, net of derivative assets (a)
($ in millions)20242023
Liabilities
Fair value at July 1,$3 $18 
Net realized/unrealized gains
Included in earnings(5)(3)
Included in OCI— — 
Purchases and originations— — 
Sales— — 
Issuances— — 
Settlements— (5)
Transfers into Level 3— — 
Transfers out of Level 3 (b)5 3 
Fair value at September 30,$3 $13 
Net unrealized gains still held at September 30,
Included in earnings$(2)$— 
Included in OCI— — 
(a)Net realized/unrealized gains are reported as gain on mortgage and automotive loans, net, and other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income (Loss).
(b)Represents the settlement value of interest rate derivative assets that are transferred to loans held-for-sale within Level 2 of the fair value hierarchy during both the three months ended September 30, 2024, and September 30, 2023. These transfers are deemed to have occurred at the end of the reporting period.
Equity securitiesAvailable-for-sale securitiesMortgage loans held-for-sale (a)Finance receivables and loans, net (a)
($ in millions)20242023202420232024202320242023
Assets
Fair value at January 1,$1 $1 $9 $4 $— $— $— $3 
Net realized/unrealized gains
Included in earnings— — — — — — — — 
Included in OCI— — — — — — — — 
Purchases and originations (b)— — 29 1 18 — — — 
Sales— — — — (11)— — — 
Issuances— — — — — — — — 
Settlements— — — (1)— — — (3)
Transfers into Level 3— — — — — — — — 
Transfers out of Level 3(1)— — — — — — — 
Fair value at September 30,$— $1 $38 $4 $7 $— $— $— 
Net unrealized gains still held at September 30,
Included in earnings$— $— $— $— $— $— $— $— 
Included in OCI— — — — — — — — 
(a)Carried at fair value due to fair value option elections.
(b)Includes a $27 million reclassification of a commercial and industrial exposure to an available-for-sale debt security during the nine months ended September 30, 2024.
Derivative liabilities, net of derivative assets (a)
($ in millions)20242023
Liabilities
Fair value at January 1,$8 $39 
Net realized/unrealized gains
Included in earnings(14)(6)
Included in OCI— — 
Purchases and originations— — 
Sales— — 
Issuances— — 
Settlements(5)(30)
Transfers into Level 3— — 
Transfers out of Level 3 (b)14 10 
Fair value at September 30,$3 $13 
Net unrealized gains still held at September 30,
Included in earnings$(7)$(3)
Included in OCI— — 
(a)Net realized/unrealized gains are reported as gain on mortgage and automotive loans, net, and other income, net of losses, in the Condensed Consolidated Statement of Comprehensive Income (Loss).
(b)Represents the settlement value of interest rate derivative assets that are transferred to loans held-for-sale within Level 2 of the fair value hierarchy during both the nine months ended September 30, 2024, and September 30, 2023. These transfers are deemed to have occurred at the end of the reporting period.
Schedule of Fair Value Measurements - Nonrecurring Basis
The following table displays assets and liabilities of our held-for-sale operations measured at fair value on a nonrecurring basis and held at December 31, 2023. The disposal group was sold on March 1, 2024. Refer to Note 21 for descriptions of valuation methodologies used to measure material assets at fair value and details of the valuation models, key inputs to these models, and significant assumptions used.
Nonrecurring fair value measurements
Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments
Total gain (loss) included in earnings
December 31, 2023 ($ in millions)
Level 1
Level 2
Level 3
Total
Assets
Loans held-for-sale, net$— $1,940 $— $1,940 $— n/m(a)
Other assets (b)— 35 — 35 (149)n/m(a)
Total assets
$— $1,975 $— $1,975 $(149)n/m
Liabilities
Accrued expenses and other liabilities$— $17 $— $17 $— n/m(a)
Total liabilities$— $17 $— $17 $— n/m
n/m = not meaningful
(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative adjustments to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items.
(b)Includes a $149 million impairment of goodwill at Ally Lending. At the time of impairment, the fair value of goodwill at Ally Lending was classified as Level 2 under the fair value hierarchy.
The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at September 30, 2024, and December 31, 2023, respectively. The amounts are generally as of the end of each period presented, which approximate the fair value measurements that occurred during each period. These tables exclude assets of operations held-for-sale, refer to Note 2 for additional information.
Nonrecurring fair value measurements
Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments
Total gain (loss) included in earnings
September 30, 2024 ($ in millions)
Level 1
Level 2
Level 3
Total
Assets
Loans held-for-sale, net$— $— $68 $68 $— n/m(a)
Commercial finance receivables and loans, net (b)
Automotive
— — 18 18 (2)n/m(a)
Other
— — 38 38 (53)n/m(a)
Total commercial finance receivables and loans, net
— — 56 56 (55)n/m(a)
Other assets
Nonmarketable equity investments— 1 — 1 (1)n/m(a)
Repossessed and foreclosed assets (c)— — 6 6 (1)n/m(a)
Total assets
$— $1 $130 $131 $(57)n/m
n/m = not meaningful
(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative adjustments to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation reserve, loan loss allowance, or cumulative adjustment.
(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.
(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
Nonrecurring fair value measurementsLower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustmentsTotal gain (loss) included in earnings
December 31, 2023 ($ in millions)
Level 1Level 2Level 3Total
Assets
Loans held-for-sale, net$— $— $375 $375 $— n/m(a)
Commercial finance receivables and loans, net (b)
Automotive— — 6 6 — n/m(a)
Other— — 49 49 (43)n/m(a)
Total commercial finance receivables and loans, net— — 55 55 (43)n/m(a)
Other assets
Nonmarketable equity investments— — 1 1 1 n/m(a)
Repossessed and foreclosed assets (c)— — 10 10 (1)n/m(a)
Total assets$— $— $441 $441 $(43)n/m
n/m = not meaningful
(a)We consider the applicable valuation allowance, allowance for loan losses, or cumulative adjustments to be the most relevant indicator of the impact on earnings caused by the fair value measurement. Accordingly, the table above excludes total gains and losses included in earnings for these items. The carrying values are inclusive of the respective valuation reserve, loan loss allowance, or cumulative adjustment.
(b)Represents collateral-dependent loans held for investment for which a nonrecurring measurement was made. The related allowance for loan losses represents the cumulative fair value adjustments for those specific receivables.
(c)The allowance provided for repossessed and foreclosed assets represents any cumulative valuation adjustment recognized to adjust the assets to fair value.
Schedule of Fair Value, by Balance Sheet Grouping
The following table presents the carrying and estimated fair value of financial instruments, except for those recorded at fair value on a recurring basis presented in the previous section of this note titled Recurring Fair Value. This table excludes assets of operations held-for-sale, refer to Note 2 for additional information. When possible, we use quoted market prices to determine fair value. Where quoted market prices are not available, the fair value is internally derived based on appropriate valuation methodologies with respect to the amount and timing of future cash flows and estimated discount rates. However, considerable judgment is required in interpreting current market data to develop the market assumptions and inputs necessary to estimate fair value. As such, the actual amount received to sell an asset or the amount paid to settle a liability could differ from our estimates. Fair value information presented herein was based on information available at September 30, 2024, and December 31, 2023.
Estimated fair value
($ in millions)
Carrying value
Level 1
Level 2
Level 3
Total
September 30, 2024
Financial assets
Held-to-maturity securities
$4,441 $— $4,570 $— $4,570 
Loans held-for-sale, net
276 — — 277 277 
Finance receivables and loans, net
133,801 — — 136,300 136,300 
FHLB/FRB stock (a)
697 — 697 — 697 
Financial liabilities
Deposit liabilities
$49,904 $— $— $50,236 $50,236 
Short-term borrowings
1,771 — — 1,771 1,771 
Long-term debt
16,807 — 12,837 5,228 18,065 
December 31, 2023
Financial assets
Held-to-maturity securities$4,680 $— $4,729 $— $4,729 
Loans held-for-sale, net375 — — 375 375 
Finance receivables and loans, net135,852 — — 137,244 137,244 
FHLB/FRB stock (a)784 — 784 — 784 
Financial liabilities
Deposit liabilities$55,187 $— $— $55,311 $55,311 
Short-term borrowings3,297 — — 3,335 3,335 
Long-term debt17,570 — 12,789 5,749 18,538 
(a)Included in other assets on our Condensed Consolidated Balance Sheet.