UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026, or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                          to                         

Commission file number: 1-3754

Ally Financial Inc.

(Exact name of registrant as specified in its charter)

Delaware	38-0572512
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Ally Detroit Center

500 Woodward Avenue, Floor 10

Detroit, Michigan 48226

(Address of principal executive offices)

(Zip Code)

(866) 710-4623

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of each exchange on which registered
Common Stock, par value $0.01 per share	ALLY	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.                    Yes ☑                    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).                            Yes ☑                    No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐
						Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐                    No ☑

At July 21, 2026, the number of shares outstanding of the Registrant’s common stock was 304,199,693 shares.

1

Index

Ally Financial Inc. • Form 10-Q

		Page
	Glossary of Abbreviations and Acronyms	3
Part I — Financial Information
Item 1.	Financial Statements	5
	Condensed Consolidated Statement of Comprehensive Income (unaudited) for the Three Months Ended and Six Months Ended June 30, 2026, and 2025	5
	Condensed Consolidated Balance Sheet (unaudited) at June 30, 2026, and December 31, 2025	7
	Condensed Consolidated Statement of Changes in Equity (unaudited) for the Three Months Ended and Six Months Ended June 30, 2026, and 2025	9
	Condensed Consolidated Statement of Cash Flows (unaudited) for the Six Months Ended June 30, 2026, and 2025	11
	Notes to Condensed Consolidated Financial Statements (unaudited)	13
	Note 1. Description of Business, Basis of Presentation, and Changes in Significant Accounting Policies	13
	Note 2. Revenue from Contracts with Customers	15
	Note 3. Other Income, Net of Losses	17
	Note 4. Reserves for Insurance Losses and Loss Adjustment Expenses	17
	Note 5. Other Operating Expenses	18
	Note 6. Investment Securities	19
	Note 7. Finance Receivables and Loans, Net	22
	Note 8. Leasing	33
	Note 9. Securitizations and Variable Interest Entities	35
	Note 10. Other Assets	39
	Note 11. Deposit Liabilities	41
	Note 12. Debt	41
	Note 13. Accrued Expenses and Other Liabilities	42
	Note 14. Preferred Stock	43
	Note 15. Accumulated Other Comprehensive Loss	45
	Note 16. Earnings per Common Share	48
	Note 17. Regulatory Capital and Other Regulatory Matters	48
	Note 18. Derivative Instruments and Hedging Activities	52
	Note 19. Income Taxes	58
	Note 20. Fair Value	58
	Note 21. Offsetting Assets and Liabilities	65
	Note 22. Segment Information	66
	Note 23. Contingencies and Other Risks	70
	Note 24. Subsequent Events	70
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	71
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	121
Item 4.	Controls and Procedures	122
Part II — Other Information		123
Item 1.	Legal Proceedings	123
Item 1A.	Risk Factors	123
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	123
Item 3.	Defaults Upon Senior Securities	123
Item 4.	Mine Safety Disclosures	123
Item 5.	Other Information	123
Item 6.	Exhibits	124
Signatures		125

2

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
AI	Artificial intelligence
ALCO	Asset-Liability Committee
ALM	Asset Liability Management
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
Board	Ally Financial Inc. Board of Directors
CD	Certificate of deposit
CECL	Accounting Standards Update 2016-13 (and related Accounting Standards Updates), or current expected credit loss
CEO	Chief Executive Officer
CODM	Chief Operating Decision Maker
COH	Corporate overhead
CRA	Community Reinvestment Act of 1977, as amended
CSG	Commercial Services Group
CVA	Credit valuation adjustment
DBRS	Morningstar DBRS
DIF	Deposit Insurance Fund
Dodd-Frank Act	Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended
DTA	Deferred tax asset
DVA	Debit valuation adjustment
EGRRCP Act	Economic Growth, Regulatory Relief, and Consumer Protection Act, as amended
ETF	Exchange-traded fund
EVE	Economic value of equity
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 amended
GM	General Motors Company
HTC	Historic tax credit
IB Finance	IB Finance Holding Company, LLC
IDI	Insured Depository Institution
LCR	Liquidity coverage ratio
LGD	Loss given default

3

Index of Defined Terms

Ally Financial Inc. • Form 10-Q

Term	Definition
LIHTC	Low-income housing tax credit
LMI	Low-to-moderate income
LTV	Loan-to-value
MD&A	Management’s Discussion and Analysis of Financial Condition and Results of Operations
NMTC	New market tax credit
NYSE	New York Stock Exchange
OCI	Other comprehensive income
OEM	Automotive original equipment manufacturer
OTC	Over-the-counter
P&C	Property and casualty
PCA	Prompt corrective action
PCD	Purchased credit deteriorated
RC	Risk Committee of the Ally Board of Directors
ROU	Right-of-use
RV	Recreational vehicle
RWA	Risk-weighted asset
S&P	Standard & Poor’s Global
SEC	U.S. Securities and Exchange Commission
Signature	Signature Bank
SPE	Special-purpose entity
Stellantis	Stellantis N.V.
SVB	Silicon Valley Bank
Tailoring Rules	The rules implementing Title IV of the EGRRCP Act
UPB	Unpaid principal balance
U.S. Basel III	The rules implementing the 2010 Basel III capital framework in the United States as well as related provisions of the Dodd-Frank Act, as amended from time to time
U.S. GAAP	Accounting Principles Generally Accepted in the United States of America
VIE	Variable interest entity
VMC	Vehicle maintenance contract
VSC	Vehicle service contract
WAC	Weighted-average coupon
wSTWF	Weighted short-term wholesale funding

4

Table of Contents PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Comprehensive Income (unaudited)

Ally Financial Inc. • Form 10-Q

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Financing revenue and other interest income
Interest and fees on finance receivables and loans	$	2,741	$	2,624	$	5,399	$	5,333
Interest on loans held-for-sale	12		6		21		11
Interest and dividends on investment securities and other earning assets	242		248		476		478
Interest on cash and cash equivalents	80		95		161		193
Operating leases	390		352		782		703
Total financing revenue and other interest income	3,465		3,325		6,839		6,718
Interest expense
Interest on deposits	1,200		1,329		2,433		2,732
Interest on short-term borrowings	42		5		61		6
Interest on long-term debt	266		258		531		529
Interest on other	4		1		4		1
Total interest expense	1,512		1,593		3,029		3,268
Net depreciation expense on operating lease assets	269		216		537		456
Net financing revenue and other interest income	1,684		1,516		3,273		2,994
Other revenue
Insurance premiums and service revenue earned	368		359		728		723
Loss on mortgage and automotive loans, net	(6)		(4)		(9)		(3)
Loss on extinguishment of debt	(2)		—		(2)		—
Other gain (loss) on investments, net	76		61		55		(438)
Other income, net of losses	166		150		343		347
Total other revenue	602		566		1,115		629
Total net revenue	2,286		2,082		4,388		3,623
Provision for credit losses	430		384		897		575
Noninterest expense
Compensation and benefits expense	458		430		949		935
Insurance losses and loss adjustment expenses	208		203		329		364
Goodwill impairment	—		—		—		305
Other operating expenses	653		629		1,276		1,292
Total noninterest expense	1,319		1,262		2,554		2,896
Income from continuing operations before income tax expense	537		436		937		152
Income tax expense from continuing operations	127		84		208		25
Net income from continuing operations	410		352		729		127
Net income	$	410	$	352	$	729	$	127
Other comprehensive income, net of tax	62		43		75		705
Comprehensive income	$	472	$	395	$	804	$	832

Statement continues on the next page.

The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

5

Condensed Consolidated Statement of Comprehensive Income (unaudited)

Ally Financial Inc. • Form 10-Q

	Three months ended June 30,				Six months ended June 30,
($ in millions, except per share data; shares in thousands) (a)	2026		2025		2026		2025
Net income from continuing operations attributable to common shareholders	$	367	$	324	$	658	$	71
Net income attributable to common shareholders	$	367	$	324	$	658	$	71
Basic weighted-average common shares outstanding (b)	308,362		309,895		309,669		309,453
Diluted weighted-average common shares outstanding (b)	311,035		312,434		312,120		312,033
Basic earnings per common share
Net income from continuing operations	$	1.19	$	1.05	$	2.13	$	0.23
Net income	$	1.19	$	1.05	$	2.13	$	0.23
Diluted earnings per common share
Net income from continuing operations	$	1.18	$	1.04	$	2.11	$	0.23
Net income	$	1.18	$	1.04	$	2.11	$	0.23
Cash dividends declared per common share	$	0.30	$	0.30	$	0.60	$	0.60

(a)Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

(b)Includes shares related to share-based compensation that vested but were not yet issued.

Refer to Note 16 for additional earnings per share information. The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

6

Condensed Consolidated Balance Sheet (unaudited)

Ally Financial Inc. • Form 10-Q

($ in millions, except share data)	June 30, 2026		December 31, 2025
Assets
Cash and cash equivalents
Noninterest-bearing	$	339	$	405
Interest-bearing	7,501		9,625
Total cash and cash equivalents	7,840		10,030
Equity securities	835		876
Available-for-sale securities (amortized cost basis of $26,222 and $25,825)	23,253		22,973
Held-to-maturity securities (fair value of $4,299 and $4,451)	4,286		4,371
Loans held-for-sale, net	406		549
Finance receivables and loans, net
Finance receivables and loans, net of unearned income	143,673		137,454
Allowance for loan losses	(3,576)		(3,490)
Total finance receivables and loans, net	140,097		133,964
Investment in operating leases, net	8,585		8,772
Premiums receivable and other insurance assets	2,860		2,844
Other assets	11,610		11,623
Total assets	$	199,772	$	196,002
Liabilities
Deposit liabilities
Noninterest-bearing	$	153	$	125
Interest-bearing	153,893		151,524
Total deposit liabilities	154,046		151,649
Short-term borrowings	5,916		4,695
Long-term debt	17,053		17,070
Interest payable	895		729
Unearned insurance premiums and service revenue	3,693		3,656
Accrued expenses and other liabilities	2,678		2,705
Total liabilities	184,281		180,504
Contingencies (refer to Note 23)
Equity
Common stock and paid-in capital ($0.01 par value, shares authorized 1,100,000,000; issued 523,401,995 and 520,355,804; and outstanding 304,542,540 and 308,492,929)	22,388		22,295
Preferred stock	1,976		2,324
Retained earnings	1,101		633
Accumulated other comprehensive loss	(2,711)		(2,786)
Treasury stock, at cost (218,859,455 and 211,862,875 shares)	(7,263)		(6,968)
Total equity	15,491		15,498
Total liabilities and equity	$	199,772	$	196,002

Statement continues on the next page.

The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

7

Condensed Consolidated Balance Sheet (unaudited)

Ally Financial Inc. • Form 10-Q

The assets of consolidated variable interest entities that can be used only to settle obligations of the consolidated variable interest entities and the liabilities of these entities for which creditors (or beneficial interest holders) do not have recourse to our general credit were as follows.

($ in millions)	June 30, 2026		December 31, 2025
Assets
Finance receivables and loans, net
Consumer automotive	$	2,903	$	3,096
Allowance for loan losses	(109)		(116)
Total finance receivables and loans, net	2,794		2,980
Other assets	225		260
Total assets	$	3,019	$	3,240
Liabilities
Long-term debt	$	1,818	$	1,479
Accrued expenses and other liabilities	3		3
Total liabilities	$	1,821	$	1,482

The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

8

Condensed Consolidated Statement of Changes in Equity (unaudited)

Ally Financial Inc. • Form 10-Q

	Three months ended June 30,
($ in millions)	Common stock and paid-in capital		Preferred stock		Retained earnings (accumulated deficit)		Accumulated other comprehensive loss		Treasury stock		Total equity
Balance at April 1, 2025	$	22,191	$	2,324	$	(78)	$	(3,262)	$	(6,943)	$	14,232
Net income					352						352
Preferred stock dividends — Series B					(16)						(16)
Preferred stock dividends — Series C					(12)						(12)
Share-based compensation	44										44
Other comprehensive income							43				43
Common stock repurchases									(1)		(1)
Common stock dividends ($0.30 per share)					(95)						(95)
Balance at June 30, 2025	$	22,235	$	2,324	$	151	$	(3,219)	$	(6,944)	$	14,547
Balance at April 1, 2026	$	22,346	$	2,324	$	827	$	(2,773)	$	(7,115)	$	15,609
Net income					410						410
Preferred stock dividends — Series B					(31)						(31)
Preferred stock dividends — Series C					(12)						(12)
Preferred stock redemption — Series B			(1,335)								(1,335)
Net proceeds from issuance of Series D preferred stock			987								987
Share-based compensation	42										42
Other comprehensive income							62				62
Common stock repurchases									(148)		(148)
Common stock dividends ($0.30 per share)					(93)						(93)
Balance at June 30, 2026	$	22,388	$	1,976	$	1,101	$	(2,711)	$	(7,263)	$	15,491

9

Condensed Consolidated Statement of Changes in Equity (unaudited)

Ally Financial Inc. • Form 10-Q

	Six months ended June 30,
($ in millions)	Common stock and paid-in capital		Preferred stock		Retained earnings (accumulated deficit)		Accumulated other comprehensive loss		Treasury stock		Total equity
Balance at January 1, 2025	$	22,142	$	2,324	$	270	$	(3,924)	$	(6,909)	$	13,903
Net income					127						127
Preferred stock dividends — Series B					(32)						(32)
Preferred stock dividends — Series C					(24)						(24)
Share-based compensation	93										93
Other comprehensive income							705				705
Common stock repurchases									(35)		(35)
Common stock dividends ($0.60 per share)					(190)						(190)
Balance at June 30, 2025	$	22,235	$	2,324	$	151	$	(3,219)	$	(6,944)	$	14,547
Balance at January 1, 2026	$	22,295	$	2,324	$	633	$	(2,786)	$	(6,968)	$	15,498
Net income					729						729
Preferred stock dividends — Series B					(47)						(47)
Preferred stock dividends — Series C					(24)						(24)
Preferred stock redemption — Series B			(1,335)								(1,335)
Net proceeds from issuance of Series D preferred stock			987								987
Share-based compensation	93										93
Other comprehensive income							75				75
Common stock repurchases									(295)		(295)
Common stock dividends ($0.60 per share)					(190)						(190)
Balance at June 30, 2026	$	22,388	$	1,976	$	1,101	$	(2,711)	$	(7,263)	$	15,491

The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

10

Condensed Consolidated Statement of Cash Flows (unaudited)

Ally Financial Inc. • Form 10-Q

Six months ended June 30, ($ in millions)	2026		2025
Operating activities
Net income	$	729	$	127
Reconciliation of net income to net cash provided by operating activities
Depreciation and amortization	756		690
Goodwill impairment	—		305
Provision for credit losses	897		575
Loss on mortgage and automotive loans, net	9		3
Other (gain) loss on investments, net	(55)		438
Loss on extinguishment of debt	2		—
Originations and purchases of loans held-for-sale	(1,770)		(912)
Proceeds from sales and repayments of loans held-for-sale	1,645		1,044
Net change in
Deferred income taxes	45		(249)
Interest payable	166		22
Other assets	101		(153)
Other liabilities	80		(115)
Other, net	119		112
Net cash provided by operating activities	2,724		1,887
Investing activities
Purchases of equity securities	(558)		(397)
Proceeds from sales of equity securities	652		376
Purchases of available-for-sale securities	(1,627)		(4,493)
Proceeds from sales of available-for-sale securities	153		4,157
Proceeds from repayments of available-for-sale securities	1,088		954
Purchases of held-to-maturity securities	(108)		(412)
Proceeds from repayments of held-to-maturity securities	247		238
Purchases of finance receivables and loans held-for-investment	(4,087)		(2,192)
Proceeds from sales of finance receivables and loans initially held-for-investment	256		5
Originations and repayments of finance receivables and loans initially held-for-investment and other, net	(3,006)		1,701
Purchases of operating lease assets	(1,429)		(1,900)
Disposals of operating lease assets	1,049		1,453
Proceeds from sale of operation or business unit, net	—		2,412
Net change in nonmarketable equity investments	(26)		(36)
Other, net	(243)		(298)
Net cash (used in) provided by investing activities	(7,639)		1,568
Statement continues on the next page.
The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

11

Condensed Consolidated Statement of Cash Flows (unaudited)

Ally Financial Inc. • Form 10-Q

Six months ended June 30, ($ in millions)	2026		2025
Financing activities
Net change in short-term borrowings	1,221		2,231
Net increase (decrease) in deposits	2,487		(3,626)
Proceeds from issuance of long-term debt	1,877		953
Repayments of long-term debt	(1,941)		(2,612)
Repurchases of common stock	(295)		(35)
Preferred stock issuance	987		—
Preferred stock redemption	(1,350)		—
Common stock dividends paid	(194)		(192)
Preferred stock dividends paid	(56)		(56)
Net cash provided by (used in) financing activities	2,736		(3,337)
Effect of exchange-rate changes on cash and cash equivalents and restricted cash	(7)		10
Net (decrease) increase in cash and cash equivalents and restricted cash	(2,186)		128
Cash and cash equivalents and restricted cash at beginning of year	11,809		11,380
Cash and cash equivalents and restricted cash at June 30,	$	9,623	$	11,508
Supplemental disclosures
Cash paid for
Interest	$	2,814	$	3,202
Income taxes	152		108
Noncash items
Loans held-for-sale transferred to finance receivables and loans held-for-investment	33		19
Finance receivables and loans held-for-investment transferred to loans held-for-sale	33		2,391

The following table provides a reconciliation of cash and cash equivalents and restricted cash from the Condensed Consolidated Balance Sheet to the Condensed Consolidated Statement of Cash Flows.

June 30, ($ in millions)	2026		2025
Cash and cash equivalents on the Condensed Consolidated Balance Sheet	$	7,840	$	10,592
Restricted cash and cash equivalents and restricted cash held for securitization trusts included in other assets on the Condensed Consolidated Balance Sheet (a)	1,783		916
Total cash and cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows	$	9,623	$	11,508

(a)Refer to Note 10 for additional details describing the nature of restricted cash and cash equivalent balances.

The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements.

12

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

1.    Description of Business, Basis of Presentation, and Changes in Significant Accounting Policies

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 that includes the nation’s largest all-digital bank and automotive finance businesses, driven by a mission to “Do It Right” for its customers and communities. Ally Bank, Member FDIC, offers online banking products, including savings and checking accounts. Ally also provides investing solutions through Ally Invest, including online brokerage, automated investing, IRAs and personal financial advice. Ally provides consumer and dealer financing, insurance, and vehicle remarketing services. Ally’s corporate finance business provides capital to equity sponsors and middle-market companies. Ally is a Delaware corporation and is registered as a BHC under the BHC Act and an FHC under the GLB Act.

Our accounting and reporting policies conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Certain reclassifications may have been made to the prior periods’ financial statements and notes to conform to the current period’s presentation, which did not have a material impact on our Condensed Consolidated Financial Statements. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure, including those of contingent assets and liabilities at the date of the financial statements. It also includes estimates related to the income and expenses during the reporting period and the related disclosures. In developing the estimates and assumptions, management uses all available evidence; however, actual results could differ because of uncertainties associated with estimating the amounts, timing, and likelihood of possible outcomes. Our most significant estimates pertain to the allowance for loan losses, the valuations of automotive operating lease assets and residuals, the fair value of financial instruments, and the determination of the provision for income taxes.

The Condensed Consolidated Financial Statements at June 30, 2026, and for the three months and six months ended June 30, 2026, and 2025, are unaudited but reflect all adjustments that are, in management’s opinion, necessary for the fair presentation of the results for the interim periods presented. These unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements (and the related Notes) included in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed on February 25, 2026, with the SEC.

Significant Accounting Policies

Income Taxes

In calculating the provision for interim income taxes, in accordance with ASC 740, Income Taxes, we apply an estimated annual effective tax rate to year-to-date ordinary income. At the end of each interim period, we estimate the effective tax rate expected to be applicable for the full fiscal year. This method differs from that described in Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K, which describes our annual significant income tax accounting policy and related methodology.

Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K regarding additional significant accounting policies.

Recently Issued Accounting Standards

Expense Disaggregation Disclosures (ASU 2024-03)

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Subtopic 220-40): Expense Disaggregation Disclosures. The purpose of this ASU is to provide additional disclosure that will allow investors to better understand an entity’s performance, better assess an entity’s prospects for future cash flows, and more easily compare an entity’s performance over time and in relation to other similar entities. This ASU will require that an entity disclose, on an interim and annual basis, a disaggregation in the notes to the financial statements of certain income statement line items if the line item includes any of the five required expense categories, which are defined as (1) purchases of inventory, (2) employee compensation, (3) depreciation (including amortization of a finance ROU asset and leasehold improvements), (4) intangible asset amortization, and (5) depletion expense. For the “employee compensation” category, banking entities may continue to present compensation expense on the face of the income statement in accordance with Regulation S-X Rule 210.9-04. The disclosure should include a qualitative description of other expenses included within the income statement line item that are otherwise not disaggregated. This ASU will also require entities to disclose their total selling expenses for each reporting period. Selling expenses are not defined within the ASU, which will require entities to determine and disclose how they define selling expenses on an annual basis. The amendments are effective on January 1, 2027, for annual reporting, and for interim reporting thereafter, with early adoption permitted. The amendments must be applied using either a prospective or retrospective approach. We do not expect the impact of these amendments to be material.

13

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06)

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. The purpose of this ASU is to improve the accounting for internal-use software costs by aligning the accounting with modern software development processes. This ASU removes all references to sequential software development project stages from U.S. GAAP, but does not change the types of costs that are eligible to be capitalized. Under the updated guidance, entities will be required to begin capitalizing software project costs when (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed, and the software will be used to perform the function intended (called the “probable-to-complete” threshold). When evaluating whether the probable-to-complete threshold is met, entities must consider whether there is significant development uncertainty associated with the software, including determining whether the software project contains technological innovations or novel, unique, or unproven functions or features. Entities should also consider if there are significant performance requirements (e.g., functions or features) of the software project that have not yet been identified or continue to be substantially revised. The amendments do not define what is considered “significant” and instead will require management judgment. The amendments are effective January 1, 2028, with early adoption permitted. The amendments can be applied using a prospective approach, a retrospective approach, or a modified approach that bases the adoption of the amendments on the completion status of the software project as of the adoption date. We are currently evaluating the impact of these amendments.

Purchased Loans (ASU 2025-08)

In November 2025, the FASB issued ASU 2025-08, Financial Instruments—Credit Losses (Topic 326): Purchased Loans. This ASU expands the gross-up approach applied to PCD financial assets to loans that are purchased and considered seasoned, excluding credit card loans, debt securities, and trade receivables accounted for under the revenue recognition guidance. Under the expanded gross-up approach, the amortized cost basis for a seasoned loan receivable will be the purchase price plus the initial measurement of the allowance for loan losses, on the acquisition date. Any remaining discount embedded in the purchase price will be amortized into interest income over the term of the loan. The purchased seasoned loan designation would be evaluated on a loan-by-loan basis. The resulting accounting will reflect no day-one provision expense on qualifying seasoned loans and a lower yield over time than what is currently presented under the non-PCD model. Loans acquired in a business combination would be considered seasoned. For a loan acquired through an asset transfer or by consolidating a VIE, the acquisition must be at least 90 days after loan origination and the acquirer must not have been involved in originating the loan for the loan to be considered seasoned. The amendments are effective January 1, 2027, with early adoption permitted and must be adopted on a prospective basis. We do not expect the impact of these amendments to be material.

14

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

2.    Revenue from Contracts with Customers

Our primary revenue sources, which include financing revenue and other interest income, are addressed by other U.S. GAAP topics and are not in the scope of ASC Topic 606, Revenue from Contracts with Customers. As part of our Insurance operations, we recognize revenue from insurance contracts, which are addressed by other U.S. GAAP topics and are not included in the scope of this standard. Certain noninsurance contracts within our Insurance operations, including VSCs, GAP contracts, and VMCs, are included in the scope of this standard. All revenue associated with noninsurance contracts is recognized over the contract term on a basis proportionate to the anticipated cost emergence. Further, commissions and sales expense incurred to obtain these contracts are amortized over the terms of the related policies and service contracts on the same basis as premiums and service revenue are earned, and all advertising costs are recognized as expense when incurred.

The following tables present a disaggregated view of our revenue from contracts with customers. For further information regarding our revenue recognition policies and details about the nature of our respective revenue streams, refer to Note 1 and Note 3 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.

Three months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Corporate Finance operations		Corporate and Other		Consolidated
2026
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)	$	—	$	245	$	—	$	—	$	245
Remarketing fee income	30		—		—		—		30
Brokerage commissions and other revenue	—		—		—		18		18
Banking fees and interchange income	—		—		—		6		6
Brokered/agent commissions	—		2		—		—		2
Other	7		1		—		1		9
Total revenue from contracts with customers	37		248		—		25		310
All other revenue	67		201		29		(5)		292
Total other revenue (d)	$	104	$	449	$	29	$	20	$	602
2025
Revenue from contracts with customers
Noninsurance contracts (a) (b) (c)	$	—	$	241	$	—	$	—	$	241
Remarketing fee income	31		—		—		—		31
Brokerage commissions and other revenue	—		—		—		20		20
Banking fees and interchange income	—		—		—		6		6
Brokered/agent commissions	—		7		—		—		7
Other	5		1		—		1		7
Total revenue from contracts with customers	36		249		—		27		312
All other revenue	61		173		19		1		254
Total other revenue (d)	$	97	$	422	$	19	$	28	$	566

(a)We had opening balances of $3.0 billion in unearned revenue associated with outstanding contracts at both April 1, 2026, and 2025, respectively, and $242 million and $238 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the three months ended June 30, 2026, and 2025, respectively.

(b)At June 30, 2026, we had unearned revenue of $3.0 billion associated with outstanding contracts, and with respect to this balance we expect to recognize revenue of $445 million during the remainder of 2026, $788 million in 2027, $639 million in 2028, $481 million in 2029, and $646 million thereafter. At June 30, 2025, we had unearned revenue of $3.0 billion associated with outstanding contracts.

(c)We had deferred insurance assets of $1.8 billion at both April 1, 2026, and June 30, 2026, and recognized $138 million of expense during the three months ended June 30, 2026. We had deferred insurance assets of $1.8 billion at both April 1, 2025, and June 30, 2025, and recognized $135 million of expense during the three months ended June 30, 2025.

(d)Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments.

15

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Six months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Corporate Finance operations		Corporate and Other		Consolidated
2026
Revenue from contracts with customers
Noninsurance contracts (a) (b)	$	—	$	487	$	—	$	—	$	487
Remarketing fee income	62		—		—		—		62
Brokerage commissions and other revenue	—		—		—		37		37
Banking fees and interchange income	—		—		—		11		11
Brokered/agent commissions	—		4		—		—		4
Other	13		1		—		2		16
Total revenue from contracts with customers	75		492		—		50		617
All other revenue	134		299		64		1		498
Total other revenue (c)	$	209	$	791	$	64	$	51	$	1,115
2025
Revenue from contracts with customers
Noninsurance contracts (a) (b)	$	—	$	482	$	—	$	—	$	482
Remarketing fee income	62		—		—		—		62
Brokerage commissions and other revenue	—		—		—		40		40
Banking fees and interchange income (d)	—		—		—		25		25
Brokered/agent commissions	—		12		—		—		12
Other	10		2		—		2		14
Total revenue from contracts with customers	72		496		—		67		635
All other revenue	122		290		48		(466)		(6)
Total other revenue (c)	$	194	$	786	$	48	$	(399)	$	629

(a)We had opening balances of $3.0 billion in unearned revenue associated with outstanding contracts at both January 1, 2026, and 2025, and $481 million and $476 million of these balances were recognized as insurance premiums and service revenue earned in our Condensed Consolidated Statement of Comprehensive Income during the six months ended June 30, 2026, and 2025, respectively.

(b)We had deferred insurance assets of $1.8 billion at both January 1, 2026, and June 30, 2026, and recognized $276 million of expense during the six months ended June 30, 2026. We had deferred insurance assets of $1.8 billion at both January 1, 2025, and June 30, 2025, and recognized $276 million of expense during the six months ended June 30, 2025.

(c)Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments.

(d)Interchange income is reported net of customer rewards related to Ally Credit Card. Customer rewards expense was $6 million for the six months ended June 30, 2025. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information.

In addition to the components of other revenue presented above, as part of our Automotive Finance operations, we recognized net remarketing losses on the sale of off-lease vehicles of $2 million and $12 million for the three months and six months ended June 30, 2026, respectively, compared to net remarketing losses of $19 million for the six months ended June 30, 2025. These losses are included in depreciation expense on operating lease assets in our Condensed Consolidated Statement of Comprehensive Income. Refer to Note 8 for additional information.

16

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

3.    Other Income, Net of Losses

Details of other income, net of losses, were as follows.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Late charges and other administrative fees	$	33	$	33	$	69	$	84
Remarketing fees	30		31		62		62
Income from equity-method investments (a)	13		15		30		41
Other, net	90		71		182		160
Total other income, net of losses (b)	$	166	$	150	$	343	$	347

(a)Refer to Note 10 for further information on our equity-method investments.

(b)Includes the activity of Ally Credit Card prior to the sale on April 1, 2025.

4.    Reserves for Insurance Losses and Loss Adjustment Expenses

The following table shows a rollforward of our reserves for insurance losses and loss adjustment expenses.

($ in millions)	2026		2025
Total gross reserves for insurance losses and loss adjustment expenses at January 1,	$	233	$	189
Less: Reinsurance recoverable	69		60
Net reserves for insurance losses and loss adjustment expenses at January 1,	164		129
Net insurance losses and loss adjustment expenses incurred related to:
Current year	342		359
Prior years (a)	(13)		5
Total net insurance losses and loss adjustment expenses incurred	329		364
Net insurance losses and loss adjustment expenses paid or payable related to:
Current year	(234)		(234)
Prior years	(75)		(71)
Total net insurance losses and loss adjustment expenses paid or payable	(309)		(305)
Net reserves for insurance losses and loss adjustment expenses at June 30,	184		188
Plus: Reinsurance recoverable (b)	67		66
Total gross reserves for insurance losses and loss adjustment expenses at June 30, (c)	$	251	$	254

(a)There have been no material adverse changes to the reserve for prior years.

(b)Included in premiums receivable and other insurance assets on our Condensed Consolidated Balance Sheet.

(c)Included in accrued expenses and other liabilities on our Condensed Consolidated Balance Sheet.

17

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

5.    Other Operating Expenses

Details of other operating expenses were as follows.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Insurance commissions	$	150	$	155	$	302	$	316
Technology and communications	108		101		209		204
Advertising and marketing	71		65		131		126
Property and equipment depreciation	57		61		116		124
Lease and loan administration	45		44		90		90
Regulatory and licensing fees	43		39		79		83
Professional services	35		36		70		67
Vehicle remarketing and repossession	34		30		68		63
Amortization of intangible assets	—		—		—		3
Other	110		98		211		216
Total other operating expenses (a)	$	653	$	629	$	1,276	$	1,292

(a)Includes the activity of Ally Credit Card prior to the sale on April 1, 2025. Refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information.

18

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

6.    Investment Securities

Our investment portfolio includes various debt and equity securities. Our debt securities, which are classified as available-for-sale or held-to-maturity, include government securities, corporate bonds, asset-backed securities, and mortgage-backed securities. The amortized cost basis, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.

	June 30, 2026								December 31, 2025
	Amortized cost basis		Gross unrealized				Fair value		Amortized cost basis		Gross unrealized				Fair value
($ in millions)			gains		losses						gains		losses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	$	2,579	$	—	$	(64)	$	2,515	$	2,308	$	22	$	(51)	$	2,279
U.S. States and political subdivisions	543		1		(65)		479		624		1		(74)		551
Foreign government	194		1		(3)		192		191		1		(4)		188
Agency mortgage-backed residential (a)	14,903		12		(2,126)		12,789		14,966		19		(2,084)		12,901
Mortgage-backed residential	221		—		(33)		188		230		—		(32)		198
Agency mortgage-backed commercial (a)	5,770		3		(636)		5,137		5,540		14		(622)		4,932
Asset-backed	1		—		—		1		12		—		—		12
Corporate debt	2,011		9		(68)		1,952		1,954		19		(61)		1,912
Total available-for-sale securities (b) (c) (d) (e) (f)	$	26,222	$	26	$	(2,995)	$	23,253	$	25,825	$	76	$	(2,928)	$	22,973
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential	$	1,364	$	3	$	(162)	$	1,205	$	1,303	$	8	$	(157)	$	1,154
Mortgage-backed residential	2,886		172		—		3,058		3,018		228		—		3,246
Asset-backed retained notes	36		—		—		36		50		1		—		51
Total held-to-maturity securities (d) (f) (g)	$	4,286	$	175	$	(162)	$	4,299	$	4,371	$	237	$	(157)	$	4,451

(a)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $80 million liability and a $13 million asset for agency mortgage-backed residential securities at June 30, 2026, and December 31, 2025, respectively, and a $19 million liability and a $33 million asset for agency mortgage-backed commercial securities at June 30, 2026, and December 31, 2025, respectively. These basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.

(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 18 for additional information.

(c)Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $14 million at both June 30, 2026, and December 31, 2025.

(d)Investment securities with a fair value of $3.6 billion and $3.7 billion were pledged as collateral at June 30, 2026, and December 31, 2025, respectively. This primarily included $2.6 billion and $2.7 billion pledged to secure advances from the FHLB at June 30, 2026, and December 31, 2025, respectively. This also included securities pledged for other purposes as required by contractual obligations or law, under which agreements we granted the counterparty the right to sell or pledge $1.0 billion and $932 million of the underlying available-for-sale securities at June 30, 2026, and December 31, 2025, respectively.

(e)Totals do not include accrued interest receivable, which was $91 million and $87 million at June 30, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.

(f)There was no allowance for credit losses recorded at both June 30, 2026, and December 31, 2025, as management determined that there were no expected credit losses in our portfolio of available-for-sale and held-to-maturity securities.

(g)Totals do not include accrued interest receivable, which was $12 million and $13 million at June 30, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.

19

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. Call or prepayment options may cause actual maturities to differ from contractual maturities.

	Total				Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years
($ in millions)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
June 30, 2026
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies	$	2,515	3.5	%	$	68	1.5	%	$	2,169	3.7	%	$	278	2.3	%	$	—	—	%
U.S. States and political subdivisions	479		3.3		33		5.4		42		3.5		38		4.4		366		3.0
Foreign government	192		2.8		25		2.3		76		2.3		91		3.4		—		—
Agency mortgage-backed residential (b)	12,789		3.0		—		—		1		2.8		—		—		12,788		3.0
Mortgage-backed residential	188		2.7		—		—		—		—		—		—		188		2.7
Agency mortgage-backed commercial (b)	5,137		2.8		150		3.0		1,709		3.4		2,464		2.4		814		2.3
Asset-backed	1		1.5		—		—		1		1.5		—		—		—		—
Corporate debt	1,952		3.7		259		2.6		819		2.6		749		5.0		125		5.4
Total available-for-sale securities	$	23,253	3.0		$	535	2.7		$	4,817	3.4		$	3,620	3.0		$	14,281	2.9
Amortized cost basis of available-for-sale securities	$	26,222			$	539			$	4,976			$	4,049			$	16,658
Amortized cost basis of held-to-maturity securities (c)
Agency mortgage-backed residential	$	1,364	3.6	%	$	—	—	%	$	—	—	%	$	—	—	%	$	1,364	3.6	%
Mortgage-backed residential	2,886		2.8		—		—		4		2.9		1		5.0		2,881		2.8
Asset-backed retained notes	36		5.4		—		—		24		5.3		12		5.7		—		—
Total held-to-maturity securities	$	4,286	3.1		$	—	—		$	28	5.0		$	13	5.7		$	4,245	3.1
December 31, 2025
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies	$	2,279	3.4	%	$	84	0.8	%	$	1,771	3.9	%	$	424	2.0	%	$	—	—	%
U.S. States and political subdivisions	551		3.4		48		4.8		50		3.7		65		4.3		388		3.1
Foreign government	188		2.8		14		2.0		75		2.3		99		3.3		—		—
Agency mortgage-backed residential (b)	12,901		2.9		—		—		1		2.8		—		—		12,900		2.9
Mortgage-backed residential	198		2.7		—		—		—		—		—		—		198		2.7
Agency mortgage-backed commercial (b)	4,932		2.7		87		3.4		1,453		3.5		2,314		2.4		1,078		2.3
Asset-backed	12		1.5		—		—		12		1.5		—		—		—		—
Corporate debt	1,912		3.4		232		2.4		866		2.5		679		4.6		135		5.5
Total available-for-sale securities	$	22,973	3.0		$	465	2.5		$	4,228	3.4		$	3,581	2.9		$	14,699	2.9
Amortized cost basis of available-for-sale securities	$	25,825			$	468			$	4,298			$	3,968			$	17,091
Amortized cost basis of held-to-maturity securities (c)
Agency mortgage-backed residential	$	1,303	3.5	%	$	—	—	%	$	—	—	%	$	—	—	%	$	1,303	3.5	%
Mortgage-backed residential	3,018		2.8		—		—		5		2.9		1		5.5		3,012		2.8
Asset-backed retained notes	50		5.4		—		—		35		5.3		15		5.7		—		—
Total held-to-maturity securities	$	4,371	3.0		$	—	—		$	40	5.0		$	16	5.7		$	4,315	3.0

(a)Yield is calculated using the effective yield of each security at the end of the period, weighted based on the fair value by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost basis inclusive of hedge basis adjustments for dedesignated hedges, and excludes expected capital gains and losses. Yield does not consider hedging effects for securities in active hedges.

(b)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $80 million liability and a $13 million asset for agency mortgage-backed residential securities at June 30, 2026, and December 31, 2025, respectively, and a $19 million liability and a $33 million asset for agency mortgage-backed commercial securities at June 30, 2026, and December 31, 2025, respectively. These basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.

(c)Yield is calculated using the effective yield of each security at the end of the period, weighted based on amortized cost basis by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost basis and excludes capital gains, capital losses, and the premium or discount on securities transferred from available-for-sale to held-to-maturity.

The balances of cash equivalents were $100 million and $107 million at June 30, 2026, and December 31, 2025, respectively, and were composed primarily of money-market funds.

20

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents interest and dividends on investment securities.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Taxable interest	$	221	$	228	$	435	$	438
Taxable dividends	4		5		8		10
Interest and dividends exempt from U.S. federal income tax	6		6		11		12
Interest and dividends on investment securities	$	231	$	239	$	454	$	460

The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Available-for-sale securities
Gross realized gains	$	—	$	2	$	3	$	2
Gross realized losses (a)	—		—		—		(495)
Net realized gain (loss) on available-for-sale securities	—		2		3		(493)
Net realized gain on equity securities	47		25		82		33
Net unrealized gain (loss) on equity securities	29		34		(30)		22
Other gain (loss) on investments, net	$	76	$	61	$	55	$	(438)

(a)Includes losses reclassified from accumulated other comprehensive loss related to the balance sheet repositioning of our available-for-sale securities portfolio during the six months ended June 30, 2025.

The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of June 30, 2026, and December 31, 2025. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, Fitch, and DBRS. The ratings presented are a composite of the ratings sourced from the agencies or, if the ratings cannot be sourced from the agencies, are based on the asset type of the particular security. All our held-to-maturity securities were current in their payment of principal and interest as of both June 30, 2026, and December 31, 2025. We have not recorded any interest income reversals on our held-to-maturity securities during the six months ended June 30, 2026, or June 30, 2025.

($ in millions)	AAA		AA		A		BBB		Total (a)
June 30, 2026
Debt securities
Agency mortgage-backed residential	$	—	$	1,364	$	—	$	—	$	1,364
Mortgage-backed residential	2,825		60		1		—		2,886
Asset-backed retained notes	31		4		—		1		36
Total held-to-maturity securities	$	2,856	$	1,428	$	1	$	1	$	4,286
December 31, 2025
Debt securities
Agency mortgage-backed residential	$	—	$	1,303	$	—	$	—	$	1,303
Mortgage-backed residential	2,951		66		1		—		3,018
Asset-backed retained notes	45		2		2		1		50
Total held-to-maturity securities	$	2,996	$	1,371	$	3	$	1	$	4,371

(a)Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency.

21

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table summarizes available-for-sale securities in an unrealized loss position, which we evaluated to determine if a credit loss exists requiring the recognition of an allowance for credit losses. For additional information on our methodology, refer to Note 1. As of June 30, 2026, and December 31, 2025, we did not have the intent to sell available-for-sale securities in an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. We have not recorded any interest income reversals on our available-for-sale securities during the six months ended June 30, 2026, or June 30, 2025.

	June 30, 2026								December 31, 2025
	Less than 12 months				12 months or longer				Less than 12 months				12 months or longer
($ in millions)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	$	1,921	$	(8)	$	570	$	(56)	$	—	$	—	$	609	$	(51)
U.S. States and political subdivisions	30		—		361		(65)		24		—		429		(74)
Foreign government	47		—		66		(3)		51		(1)		72		(3)
Agency mortgage-backed residential (a)	825		(9)		9,674		(2,117)		120		—		10,310		(2,084)
Mortgage-backed residential	—		—		188		(33)		—		—		198		(32)
Agency mortgage-backed commercial (a)	1,207		(12)		3,518		(624)		299		(1)		3,629		(621)
Asset-backed	—		—		1		—		—		—		12		—
Corporate debt	425		(6)		990		(62)		86		(1)		1,123		(60)
Total available-for-sale securities	$	4,455	$	(35)	$	15,368	$	(2,960)	$	580	$	(3)	$	16,382	$	(2,925)

(a)Includes basis adjustments for certain securities that are included in closed portfolios with active hedges under the portfolio layer method at June 30, 2026, and December 31, 2025. The basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.

During the six months ended June 30, 2026, and June 30, 2025, management determined that there were no expected credit losses for securities in an unrealized loss position. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information, which indicated that contractual cash flows are expected to occur. As a result of this evaluation, management determined that no credit reserves were required at June 30, 2026, or December 31, 2025.

7.    Finance Receivables and Loans, Net

The composition of finance receivables and loans reported at amortized cost basis was as follows.

($ in millions)	June 30, 2026		December 31, 2025
Consumer automotive (a)	$	89,184	$	85,568
Consumer mortgage (b)	14,960		15,572
Total consumer	104,144		101,140
Commercial
Commercial and industrial
Automotive	20,597		18,339
Other	11,039		10,309
Commercial real estate	7,893		7,666
Total commercial	39,529		36,314
Total finance receivables and loans (c) (d)	$	143,673	$	137,454

(a)Certain finance receivables and loans are included in fair value hedging relationships. Refer to Note 18 for additional information.

(b)Includes loans originated as interest-only mortgage loans of $2 million at both June 30, 2026, and December 31, 2025, of which all have exited the interest-only period.

(c)Totals include net unearned income, unamortized premiums and discounts, and deferred fees and costs of $2.5 billion and $2.4 billion at June 30, 2026, and December 31, 2025, respectively.

(d)Totals do not include accrued interest receivable, which was $807 million and $800 million at June 30, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.

22

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three months and six months ended June 30, 2026, and 2025, respectively.

Three months ended June 30, 2026 ($ in millions)	Consumer automotive		Consumer mortgage		Commercial		Total
Allowance at April 1, 2026	$	3,250	$	11	$	279	$	3,540
Charge-offs (a)	(634)		—		(51)		(685)
Recoveries	290		1		—		291
Net charge-offs	(344)		1		(51)		(394)
Provision for credit losses	439		(1)		(8)		430
Other	—		(1)		1		—
Allowance at June 30, 2026	$	3,345	$	10	$	221	$	3,576

(a)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.

Six months ended June 30, 2026 ($ in millions)	Consumer automotive		Consumer mortgage		Commercial		Total
Allowance at January 1, 2026	$	3,208	$	12	$	270	$	3,490
Charge-offs (a)	(1,305)		—		(52)		(1,357)
Recoveries	537		9		—		546
Net charge-offs	(768)		9		(52)		(811)
Provision for credit losses	906		(10)		1		897
Other	(1)		(1)		2		—
Allowance at June 30, 2026	$	3,345	$	10	$	221	$	3,576

(a)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.

Three months ended June 30, 2025 ($ in millions)	Consumer automotive		Consumer mortgage		Commercial		Total
Allowance at April 1, 2025	$	3,144	$	18	$	236	$	3,398
Charge-offs (a)	(599)		(2)		(1)		(602)
Recoveries	233		2		1		236
Net charge-offs	(366)		—		—		(366)
Provision for credit losses	389		(1)		(4)		384
Other	(1)		—		1		—
Allowance at June 30, 2025	$	3,166	$	17	$	233	$	3,416

(a)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.

Six months ended June 30, 2025 ($ in millions)	Consumer automotive		Consumer mortgage		Consumer other (a)		Commercial		Total
Allowance at January 1, 2025	$	3,170	$	19	$	319	$	206	$	3,714
Charge-offs (b)	(1,275)		(2)		(68)		(2)		(1,347)
Recoveries	464		3		5		2		474
Net charge-offs	(811)		1		(63)		—		(873)
Provision for credit losses	807		(1)		(257)		26		575
Other	—		(2)		1		1		—
Allowance at June 30, 2025	$	3,166	$	17	$	—	$	233	$	3,416

(a)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.

(b)Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for information regarding our charge-off policies.

23

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents sales of finance receivables and loans and transfers of finance receivables and loans from held-for-investment to held-for-sale based on net carrying value.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Consumer mortgage	$	—	$	50	$	—	$	50
Consumer other (a)	—		—		—		2,248
Commercial	26		20		33		93
Total sales and transfers	$	26	$	70	$	33	$	2,391

(a)Consists of credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information.

The following table presents purchases of finance receivables and loans based on unpaid principal balance at the time of purchase.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Consumer automotive	$	2,196	$	1,235	$	3,818	$	1,984
Consumer mortgage	—		—		—		8
Commercial	—		—		2		—
Total purchases of finance receivables and loans	$	2,196	$	1,235	$	3,820	$	1,992

Nonaccrual Loans

The following tables present the amortized cost basis of our finance receivables and loans on nonaccrual status. All consumer or commercial finance receivables and loans that were 90 days or more past due were on nonaccrual status as of June 30, 2026, and December 31, 2025. Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information on our accounting policy for finance receivables and loans on nonaccrual status.

					June 30, 2026
($ in millions)	Nonaccrual status at Jan. 1, 2026		Nonaccrual status at Apr. 1, 2026		Nonaccrual status		Nonaccrual with no allowance (a)
Consumer automotive	$	1,155	$	1,128	$	1,122	$	405
Consumer mortgage	62		62		54		34
Total consumer	1,217		1,190		1,176		439
Commercial
Commercial and industrial
Automotive	15		3		1		1
Other	124		112		47		—
Commercial real estate	10		1		2		2
Total commercial	149		116		50		3
Total finance receivables and loans (b)	$	1,366	$	1,306	$	1,226	$	442

(a)Represents a component of nonaccrual status at end of period.

(b)We recorded interest income from cash payments associated with finance receivables and loans on nonaccrual status of $14 million and $27 million for the three months and six months ended June 30, 2026, respectively.

24

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

					December 31, 2025
($ in millions)	Nonaccrual status at Jan. 1, 2025		Nonaccrual status at Apr. 1, 2025		Nonaccrual status		Nonaccrual with no allowance (a)
Consumer automotive	$	1,231	$	1,167	$	1,155	$	416
Consumer mortgage	54		56		62		44
Consumer other (b)	90		—		—		—
Total consumer	1,375		1,223		1,217		460
Commercial
Commercial and industrial
Automotive	15		79		15		15
Other (c)	94		94		124		—
Commercial real estate	2		21		10		10
Total commercial	111		194		149		25
Total finance receivables and loans (d)	$	1,486	$	1,417	$	1,366	$	485

(a)Represents a component of nonaccrual status at end of period.

(b)Consists of credit card finance receivables and loans. We closed the sale of Ally Credit Card on April 1, 2025.

(c)Includes PCD loans acquired during the year ended December 31, 2025.

(d)We recorded interest income from cash payments associated with finance receivables and loans on nonaccrual status of $3 million and $7 million for the three months and six months ended June 30, 2025, respectively.

Credit Quality Indicators

We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity. Loan delinquency reporting is generally based upon borrower payment activity, relative to the contractual terms of the loan.

The following tables present the amortized cost basis of our consumer finance receivables and loans by credit quality indicator based on delinquency status and origination year.

	Origination year														Revolving loans converted to term
June 30, 2026 ($ in millions)	2026		2025		2024		2023		2022		2021 and prior		Revolving loans				Total
Consumer automotive
Current	$	21,599	$	27,580	$	15,785	$	9,837	$	6,478	$	3,659	$	—	$	—	$	84,938
30–59 days past due	189		673		569		505		449		311		—		—		2,696
60–89 days past due	47		261		249		243		217		139		—		—		1,156
90 or more days past due	13		96		94		86		79		60		—		—		428
Total consumer automotive (a)	21,848		28,610		16,697		10,671		7,223		4,169		—		—		89,218
Consumer mortgage
Current	—		—		12		24		1,640		13,197		—		8		14,881
30–59 days past due	—		—		—		1		1		29		—		—		31
60–89 days past due	—		—		—		—		2		11		—		—		13
90 or more days past due	—		—		—		1		3		30		—		1		35
Total consumer mortgage	—		—		12		26		1,646		13,267		—		9		14,960
Total consumer	$	21,848	$	28,610	$	16,709	$	10,697	$	8,869	$	17,436	$	—	$	9	$	104,178

(a)Certain consumer automotive loans are included in fair value hedging relationships. The amortized cost basis excludes a liability of $34 million related to basis adjustments for loans in closed portfolios with active hedges under the portfolio layer method at June 30, 2026. These basis adjustments would be allocated to the amortized cost basis of specific loans within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.

25

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Origination year														Revolving loans converted to term
December 31, 2025 ($ in millions)	2025		2024		2023		2022		2021		2020 and prior		Revolving loans				Total
Consumer automotive
Current	$	33,588	$	19,891	$	12,759	$	8,885	$	4,253	$	1,696	$	—	$	—	$	81,072
30–59 days past due	483		638		632		600		339		137		—		—		2,829
60–89 days past due	156		272		295		284		148		60		—		—		1,215
90 or more days past due	55		99		103		101		59		29		—		—		446
Total consumer automotive (a)	34,282		20,900		13,789		9,870		4,799		1,922		—		—		85,562
Consumer mortgage
Current	—		15		28		1,690		9,117		4,618		—		7		15,475
30–59 days past due	—		—		2		5		11		17		—		—		35
60–89 days past due	—		—		—		1		6		7		—		—		14
90 or more days past due	—		—		—		5		16		25		—		2		48
Total consumer mortgage	—		15		30		1,701		9,150		4,667		—		9		15,572
Total consumer	$	34,282	$	20,915	$	13,819	$	11,571	$	13,949	$	6,589	$	—	$	9	$	101,134

(a)Certain consumer automotive loans are included in fair value hedging relationships. The amortized cost basis excludes an asset of $6 million related to basis adjustments for loans in closed portfolios with active hedges under the portfolio layer method at December 31, 2025. These basis adjustments would be allocated to the amortized cost basis of specific loans within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.

We evaluate the credit quality of our commercial loan portfolio using regulatory risk ratings, which are based on relevant information about the borrower’s financial condition, including current financial information, historical payment experience, credit documentation, and current economic trends, among other factors. We use the following definitions for risk ratings below Pass.

•Special mention — Loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date.

•Substandard — Loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness or weakness that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•Doubtful — Loans that have all the weaknesses inherent in those classified as substandard, with the additional characteristic that the weaknesses make collection or liquidation in full, based on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

•Loss — Loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.

26

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The regulatory risk classification utilized is influenced by internal credit risk ratings, which are based on a variety of factors. A borrower’s internal credit risk rating is updated at least annually, and more frequently when a borrower’s credit profile changes, including when we become aware of potential credit deterioration. The following tables present the amortized cost basis of our commercial finance receivables and loans by credit quality indicator based on risk rating and origination year.

	Origination year														Revolving loans converted to term
June 30, 2026 ($ in millions)	2026		2025		2024		2023		2022		2021 and prior		Revolving loans				Total
Commercial
Commercial and industrial
Automotive
Pass	$	819	$	818	$	341	$	227	$	240	$	147	$	16,204	$	—	$	18,796
Special mention	5		2		9		13		10		9		1,697		—		1,745
Substandard	—		—		—		—		1		—		55		—		56
Total automotive	824		820		350		240		251		156		17,956		—		20,597
Other
Pass	319		613		562		201		198		402		7,148		275		9,718
Special mention	—		142		97		—		291		182		344		18		1,074
Substandard	—		—		—		—		—		125		82		—		207
Doubtful	—		—		—		—		—		38		2		—		40
Total other	319		755		659		201		489		747		7,576		293		11,039
Commercial real estate
Pass	678		2,109		919		732		1,007		1,956		64		86		7,551
Special mention	6		21		86		31		65		114		—		—		323
Substandard	—		—		—		2		15		—		—		—		17
Doubtful	—		—		—		2		—		—		—		—		2
Total commercial real estate	684		2,130		1,005		767		1,087		2,070		64		86		7,893
Total commercial	$	1,827	$	3,705	$	2,014	$	1,208	$	1,827	$	2,973	$	25,596	$	379	$	39,529

27

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Origination year														Revolving loans converted to term
December 31, 2025 ($ in millions)	2025		2024		2023		2022		2021		2020 and prior		Revolving loans				Total
Commercial
Commercial and industrial
Automotive
Pass	$	942	$	391	$	257	$	266	$	113	$	86	$	14,861	$	—	$	16,916
Special mention	2		1		15		10		—		5		1,328		—		1,361
Substandard	1		1		—		1		—		—		59		—		62
Total automotive	945		393		272		277		113		91		16,248		—		18,339
Other
Pass	757		594		173		306		215		166		6,647		191		9,049
Special mention	—		47		—		236		115		260		347		8		1,013
Substandard	—		—		—		—		20		61		42		—		123
Doubtful	—		—		—		—		—		107		17		—		124
Total other	757		641		173		542		350		594		7,053		199		10,309
Commercial real estate
Pass	1,981		1,069		759		1,080		919		1,461		55		59		7,383
Special mention	—		45		44		67		45		61		—		—		262
Substandard	—		—		2		15		—		1		—		—		18
Doubtful	—		—		2		1		—		—		—		—		3
Total commercial real estate	1,981		1,114		807		1,163		964		1,523		55		59		7,666
Total commercial	$	3,683	$	2,148	$	1,252	$	1,982	$	1,427	$	2,208	$	23,356	$	258	$	36,314

The following table presents an analysis of our past-due commercial finance receivables and loans recorded at amortized cost basis.

($ in millions)	30–59 days past due		60–89 days past due		90 days or more past due		Total past due		Current		Total finance receivables and loans
June 30, 2026
Commercial
Commercial and industrial
Automotive	$	—	$	—	$	—	$	—	$	20,597	$	20,597
Other	25		20		—		45		10,994		11,039
Commercial real estate	—		—		2		2		7,891		7,893
Total commercial	$	25	$	20	$	2	$	47	$	39,482	$	39,529
December 31, 2025
Commercial
Commercial and industrial
Automotive	$	—	$	—	$	—	$	—	$	18,339	$	18,339
Other	—		—		70		70		10,239		10,309
Commercial real estate	—		—		3		3		7,663		7,666
Total commercial	$	—	$	—	$	73	$	73	$	36,241	$	36,314

28

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables present gross charge-offs of our finance receivables and loans for each portfolio class by origination year during the six months ended June 30, 2026, and during the year ended December 31, 2025, respectively. Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information on our charge-off policy.

	Origination year														Revolving loans converted to term
June 30, 2026 ($ in millions)	2026		2025		2024		2023		2022		2021 and prior		Revolving loans				Total
Consumer automotive	$	19	$	326	$	302	$	290	$	229	$	139	$	—	$	—	$	1,305
Total consumer	19		326		302		290		229		139		—		—		1,305
Commercial
Commercial and industrial
Other	—		—		—		—		—		52		—		—		52
Total commercial	—		—		—		—		—		52		—		—		52
Total finance receivables and loans	$	19	$	326	$	302	$	290	$	229	$	191	$	—	$	—	$	1,357

	Origination year														Revolving loans converted to term
December 31, 2025 ($ in millions)	2025		2024		2023		2022		2021		2020 and prior		Revolving loans				Total
Consumer automotive	$	168	$	564	$	747	$	660	$	318	$	153	$	—	$	—	$	2,610
Consumer mortgage (a)	—		—		—		1		1		1		—		—		3
Consumer other (b)	—		—		—		—		—		—		64		4		68
Total consumer	168		564		747		661		319		154		64		4		2,681
Commercial
Commercial and industrial
Automotive	—		—		—		—		1		—		1		—		2
Total commercial	—		—		—		—		1		—		1		—		2
Total finance receivables and loans	$	168	$	564	$	747	$	661	$	320	$	154	$	65	$	4	$	2,683

(a)Excludes $5 million of write-downs from transfers to held-for-sale during the year ended December 31, 2025.

(b)Consists of Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.

Loan Modifications with Borrowers Experiencing Financial Difficulty

The following tables present the amortized cost basis of loans that were modified subsequent to origination during the three months and six months ended June 30, 2026, and 2025, respectively, for each portfolio segment, by modification type. For additional information on loan modification types in scope of this disclosure, refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K. The below tables exclude consumer mortgage finance receivables and loans currently enrolled in a trial modification program. Trial modifications generally represent a three-month period during which the borrower makes monthly payments under the anticipated modified payment terms. If the borrower successfully completes the trial loan modification program, the contractual terms of the loan are updated and the modification is considered permanent. As of both June 30, 2026, and December 31, 2025, there were $8 million of consumer mortgage finance receivables and loans in a trial modification program.

	Payment extensions
Three months ended June 30, 2026 ($ in millions)	Payment deferrals		Contractual maturity extensions		Principal forgiveness		Interest rate concessions		Combination		Total
Consumer automotive	$	—	$	184	$	3	$	—	$	—	$	187
Consumer mortgage	—		3		—		—		—		3
Total consumer	—		187		3		—		—		190
Commercial
Commercial and industrial
Other	—		48		—		—		—		48
Commercial real estate	2		—		—		—		—		2
Total commercial	2		48		—		—		—		50
Total finance receivables and loans	$	2	$	235	$	3	$	—	$	—	$	240

29

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Payment extensions
Six months ended June 30, 2026 ($ in millions)	Payment deferrals		Contractual maturity extensions		Principal forgiveness		Interest rate concessions		Combination		Total (a)
Consumer automotive	$	—	$	369	$	5	$	—	$	—	$	374
Consumer mortgage	—		4		—		—		2		6
Total consumer	—		373		5		—		2		380
Commercial
Commercial and industrial
Automotive	3		—		—		—		—		3
Other	—		101		—		—		—		101
Commercial real estate	2		—		—		—		—		2
Total commercial	5		101		—		—		—		106
Total finance receivables and loans	$	5	$	474	$	5	$	—	$	2	$	486

(a)Represents 0.3% of total finance receivables and loans outstanding as of June 30, 2026.

	Payment extensions
Three months ended June 30, 2025 ($ in millions)	Payment deferrals		Contractual maturity extensions		Principal forgiveness		Interest rate concessions		Combination		Total
Consumer automotive	$	—	$	130	$	2	$	—	$	—	$	132
Consumer mortgage	—		1		—		—		1		2
Total consumer	—		131		2		—		1		134
Commercial
Commercial and industrial
Automotive	3		—		—		64		—		67
Other	—		29		—		—		—		29
Commercial real estate	—		—		—		19		—		19
Total commercial	3		29		—		83		—		115
Total finance receivables and loans	$	3	$	160	$	2	$	83	$	1	$	249

	Payment extensions
Six months ended June 30, 2025 ($ in millions)	Payment deferrals		Contractual maturity extensions		Principal forgiveness		Interest rate concessions		Combination		Total (a)
Consumer automotive	$	—	$	228	$	2	$	—	$	1	$	231
Consumer mortgage	—		1		—		—		3		4
Total consumer	—		229		2		—		4		235
Commercial
Commercial and industrial
Automotive	3		—		—		64		—		67
Other	3		57		—		—		—		60
Commercial real estate	—		—		—		19		1		20
Total commercial	6		57		—		83		1		147
Total finance receivables and loans	$	6	$	286	$	2	$	83	$	5	$	382

(a)Represents 0.3% of total finance receivables and loans outstanding as of June 30, 2025.

30

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables present the financial effect of loan modifications that occurred during the three months and six months ended June 30, 2026, and 2025, respectively.

	Payment extensions (a)	Principal forgiveness		Interest rate concessions (a)				Combination (a) (b)
Three months ended June 30, 2026 ($ in millions)	Number of months extended/deferred	Amount forgiven		Initial rate		Revised rate		Remaining term	Revised remaining term	Initial rate		Revised rate
Consumer automotive	36	$	1	—	%	—	%	—	—	—	%	—	%
Consumer mortgage	162	—		—		—		—	—	—		—
Commercial
Commercial and industrial
Other	38	$	—	—	%	—	%	—	—	—	%	—	%
Commercial real estate	8	—		—		—		—	—	—		—
Total commercial	37	$	—	—		—		—	—	—		—

(a)Calculated using a weighted-average balance for each portfolio class.

(b)Term is presented in number of months.

	Payment extensions (a)	Principal forgiveness		Interest rate concessions (a)				Combination (a) (b) (c)
Six months ended June 30, 2026 ($ in millions)	Number of months extended/deferred	Amount forgiven		Initial rate		Revised rate		Remaining term	Revised remaining term	Initial rate		Revised rate
Consumer automotive	36	$	1	—	%	—	%	—	—	—	%	—	%
Consumer mortgage	168	—		—		—		291	402	3.8		2.0
Commercial
Commercial and industrial
Automotive	10	$	—	—	%	—	%	—	—	—	%	—	%
Other	28	—		—		—		—	—	—		—
Commercial real estate	8	—		—		—		—	—	—		—
Total commercial	27	$	—	—		—		—	—	—		—

(a)Calculated using a weighted-average balance for each portfolio class.

(b)Term is presented in number of months.

(c)Some consumer mortgage combination loan modifications include deferrals of principal. The weighted average number of months deferred for these loans was 159 months.

	Payment extensions (a)	Principal forgiveness		Interest rate concessions (a)				Combination (a) (b) (c)
Three months ended June 30, 2025 ($ in millions)	Number of months extended/deferred	Amount forgiven		Initial rate		Revised rate		Remaining term	Revised remaining term	Initial rate		Revised rate
Consumer automotive	30	$	—	—	%	—	%	—	—	—	%	—	%
Consumer mortgage	167	—		—		—		317	420	2.9		2.0
Commercial
Commercial and industrial
Automotive	10	$	—	12.1	%	7.6	%	—	—	—	%	—	%
Other	12	—		—		—		—	—	—		—
Commercial real estate	—	—		10.7		5.7		—	—	—		—
Total commercial	12	$	—	11.8		7.2		—	—	—		—

(a)Calculated using a weighted-average balance for each portfolio class.

(b)Term is presented in number of months.

(c)Some consumer mortgage combination loan modifications include deferrals of principal. The weighted average number of months deferred for these loans was 155 months.

31

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Payment extensions (a)	Principal forgiveness		Interest rate concessions (a)				Combination (a) (b) (c)
Six months ended June 30, 2025 ($ in millions)	Number of months extended/deferred	Amount forgiven		Initial rate		Revised rate		Remaining term	Revised remaining term	Initial rate		Revised rate
Consumer automotive	30	$	1	—	%	—	%	67	90	13.4	%	7.8	%
Consumer mortgage	175	—		—		—		305	447	3.6		2.3
Commercial
Commercial and industrial
Automotive	10	$	—	12.1	%	7.6	%	—	—	—	%	—	%
Other	14	—		—		—		—	—	—		—
Commercial real estate	—	—		10.7		5.7		29	34	5.0		3.0
Total commercial	14	$	—	11.8		7.2		29	34	5.0		3.0

(a)Calculated using a weighted-average balance for each portfolio class.

(b)Term is presented in number of months.

(c)Some consumer mortgage combination loan modifications include deferrals of principal. The weighted average number of months deferred for these loans was 155 months.

The following tables present the subsequent performance of loans recorded at amortized cost basis, by portfolio segment and credit quality indicator, that were modified within the 12 months prior to June 30, 2026, and 2025, respectively.

June 30, 2026 ($ in millions)	Current		30–59 days past due		60–89 days past due		90 or more days past due		Total
Consumer automotive
Contractual maturity extensions	$	592	$	112	$	40	$	12	$	756
Principal forgiveness	1		—		—		8		9
Combination	1		—		—		—		1
Total consumer automotive	594		112		40		20		766
Consumer mortgage
Contractual maturity extensions	5		1		—		—		6
Interest rate concessions	—		—		—		1		1
Combination	5		—		—		—		5
Total consumer mortgage	10		1		—		1		12
Total consumer	$	604	$	113	$	40	$	21	$	778

June 30, 2026 ($ in millions)	Pass		Special mention		Substandard		Doubtful		Total
Commercial and industrial
Automotive
Payment deferrals	$	—	$	—	$	2	$	1	$	3
Total automotive	—		—		2		1		3
Other
Payment deferrals	33		—		—		—		33
Contractual maturity extensions	65		109		19		—		193
Total other	98		109		19		—		226
Commercial real estate
Payment deferrals	—		3		—		2		5
Total commercial real estate	—		3		—		2		5
Total commercial	$	98	$	112	$	21	$	3	$	234

32

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

June 30, 2025 ($ in millions)	Current		30–59 days past due		60–89 days past due		90 or more days past due		Total
Consumer automotive
Contractual maturity extensions	$	360	$	59	$	21	$	7	$	447
Principal forgiveness	—		—		—		5		5
Combination	2		—		—		—		2
Total consumer automotive	362		59		21		12		454
Consumer mortgage
Contractual maturity extensions	—		1		1		—		2
Combination	3		—		—		—		3
Total consumer mortgage	3		1		1		—		5
Total consumer	$	365	$	60	$	22	$	12	$	459

June 30, 2025 ($ in millions)	Pass		Special mention		Substandard		Doubtful		Total
Commercial and industrial
Automotive
Payment deferrals	$	—	$	—	$	3	$	—	$	3
Interest rate concessions	—		—		64		—		64
Total automotive	—		—		67		—		67
Other
Payment deferrals	—		—		4		—		4
Contractual maturity extensions	25		29		28		—		82
Combination	14		—		—		—		14
Total other	39		29		32		—		100
Commercial real estate
Interest rate concessions	—		—		19		—		19
Combination	—		—		—		1		1
Total commercial real estate	—		—		19		1		20
Total commercial	$	39	$	29	$	118	$	1	$	187

As of June 30, 2026, 3,034 consumer automotive loans with a total amortized cost basis of $68 million redefaulted within 12 months of modification, whereas 2,053 consumer automotive loans with a total amortized cost basis of $50 million redefaulted within 12 months of modification as of June 30, 2025.

8.    Leasing

Ally as the Lessee

We have operating leases for certain of our corporate facilities, which have remaining lease terms of 2 months to 10 years. Most of the property leases have fixed payment terms with annual fixed-escalation clauses and include options to extend or terminate the lease. We do not include these term extensions or termination provisions in our estimates of the lease term if we do not consider it reasonably certain that the options will be exercised.

We also have operating leases for a fleet of vehicles that is used by our sales force for business purposes, with noncancelable lease terms of 367 days. Thereafter, the leases are month-to-month, up to a maximum of 48 months from inception.

During the three months and six months ended June 30, 2026, we paid $10 million and $19 million, respectively, in cash for amounts included in the measurement of lease liabilities at June 30, 2026, compared to $9 million and $18 million for the three months and six months ended June 30, 2025. These amounts are included in net cash provided by operating activities in the Condensed Consolidated Statement of Cash Flows. During the six months ended June 30, 2026, and June 30, 2025, we obtained $7 million and $6 million, respectively, of ROU assets in exchange for new lease liabilities. As of June 30, 2026, the weighted-average remaining lease term of our operating lease portfolio was 5 years, and the weighted-average discount rate was 3.70%, compared to 5 years and 3.66% as of December 31, 2025.

33

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents future minimum rental payments we are required to make under operating leases that have commenced as of June 30, 2026, and that have noncancelable lease terms expiring after June 30, 2026.

($ in millions)
2026	$	19
2027	34
2028	29
2029	11
2030	9
2031 and thereafter	24
Total undiscounted cash flows	126
Difference between undiscounted cash flows and discounted cash flows	(12)
Total lease liability	$	114

The following table details the components of total net operating lease expense.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Operating lease expense	$	10	$	8	$	18	$	16
Variable lease expense	1		1		3		2
Total lease expense, net (a)	$	11	$	9	$	21	$	18

(a)Included in other operating expenses in our Condensed Consolidated Statement of Comprehensive Income.

Ally as the Lessor

Investment in Operating Leases

We purchase consumer operating lease contracts and the associated vehicles from automotive dealerships or manufacturers after those contracts are executed. The amount we pay for an operating lease contract is based on the negotiated price for the vehicle less vehicle trade-in, down payment from the consumer, and available automotive manufacturer incentives. Under the operating lease, the consumer is obligated to make payments in amounts equal to the amount by which the negotiated purchase price of the vehicle (less any trade-in value, down payment, tax credits, or available manufacturer incentives) exceeds the contract residual value (including residual support) of the vehicle at lease termination, plus operating lease rental charges. The customer can terminate the lease at any point after commencement, subject to additional charges and fees. The consumer, dealership, or automotive manufacturer may have the option to purchase the vehicle at the end of the lease term, which generally ranges from 24 to 60 months, at the residual value of the vehicle, however it is not reasonably certain this option will be exercised and accordingly our consumer leases are classified as operating leases. In addition to the charges described above, the consumer is generally responsible for certain charges related to excess mileage or excessive wear and tear on the vehicle. These charges are deemed variable lease payments and, as these payments are not based on a rate or index, they are recognized as net depreciation expense on operating lease assets in our Condensed Consolidated Statement of Comprehensive Income as incurred.

When we acquire a consumer operating lease, we assume ownership of the vehicle. We require that property damage, bodily injury, collision, and comprehensive insurance be obtained by the lessee on all consumer operating leases. When vehicles are not purchased by customers, the receiving dealer, or automotive manufacturer at scheduled lease termination, the vehicle is returned to us for remarketing. We generally bear the risk of loss to the extent the value of a leased vehicle upon remarketing is below the expected residual value after adjusting for any OEM residual value guarantees. At termination, our actual sales proceeds from remarketing the vehicle may be higher or lower than the estimated residual value after adjusting for any OEM residual value guarantees resulting in a gain or loss on remarketing, which is included in net depreciation expense on operating lease assets in our Condensed Consolidated Statement of Comprehensive Income. Excessive mileage or excessive wear and tear on the vehicle during the lease may impact the sales proceeds received upon remarketing. As of June 30, 2026, and December 31, 2025, consumer operating leases with a carrying value, net of accumulated depreciation, of $3.3 billion and $3.4 billion, respectively, were covered by OEM residual value guarantees of approximately 50% of the vehicles’ contract residual value.

The following table details our investment in operating leases.

($ in millions)	June 30, 2026		December 31, 2025
Vehicles	$	10,018	$	10,163
Accumulated depreciation	(1,433)		(1,391)
Investment in operating leases, net	$	8,585	$	8,772

34

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents future minimum rental payments we have the right to receive under operating leases with noncancelable lease terms expiring after June 30, 2026.

($ in millions)
2026	$	769
2027	1,142
2028	573
2029	129
2030	10
Total lease payments from operating leases	$	2,623

We recognized operating lease revenue of $390 million and $782 million, for the three months and six months ended June 30, 2026, respectively, and $352 million and $703 million for the three months and six months ended June 30, 2025. Depreciation expense on operating lease assets includes net remarketing losses recognized on the sale of operating lease assets. The following table summarizes the components of depreciation expense on operating lease assets.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Depreciation expense on operating lease assets (excluding remarketing losses) (a)	$	267	$	216	$	525	$	437
Remarketing losses, net	2		—		12		19
Net depreciation expense on operating lease assets	$	269	$	216	$	537	$	456

(a)Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $6 million and $11 million for the three months and six months ended June 30, 2026, respectively, and $6 million and $12 million for the three months and six months ended June 30, 2025.

Finance Leases

In our Automotive Finance operations, we also hold automotive leases that require finance lease treatment as prescribed by ASC Topic 842, Leases. Our total gross investment in finance leases, which consists of lease payment receivables, and is included in finance receivables and loans, net, on our Condensed Consolidated Balance Sheet, was $378 million, and $376 million as of June 30, 2026, and December 31, 2025, respectively. Interest income on finance lease receivables was $8 million and $16 million for the three months and six months ended June 30, 2026, respectively, and $10 million and $21 million for the three months and six months ended June 30, 2025, and is included in interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

The following table presents future minimum rental payments we have the right to receive under finance leases with noncancelable lease terms expiring after June 30, 2026.

($ in millions)
2026	$	68
2027	126
2028	102
2029	76
2030	47
2031 and thereafter	24
Total undiscounted cash flows	443
Difference between undiscounted cash flows and discounted cash flows	(65)
Present value of lease payments recorded as lease receivable	$	378

9.    Securitizations and Variable Interest Entities

We securitize, transfer, and service consumer automotive loans. We often securitize these loans (also referred to as financial assets) using SPEs. An SPE is a legal entity that is designed to fulfill a specified limited need of the sponsor. Our principal use of SPEs is to obtain liquidity by securitizing certain of our financial assets. SPEs are often VIEs and may or may not be included on our Condensed Consolidated Balance Sheet. Additionally, we opportunistically sell consumer automotive whole-loans to SPEs where we have a continuing involvement.

VIEs are legal entities that either have an insufficient amount of equity at risk for the entity to finance its activities without additional subordinated financial support or, as a group, the holders of the equity investment at risk lack the ability to control the entity’s activities that most significantly impact economic performance through voting or similar rights, or do not have the obligation to absorb the expected losses or the right to receive the expected residual returns of the entity.

35

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The VIEs included on our Condensed Consolidated Balance Sheet represent SPEs where we are deemed to be the primary beneficiary, primarily due to our servicing activities and our beneficial interests in the VIE that could be potentially significant.

The nature, purpose, and activities of nonconsolidated SPEs are similar to those of our consolidated SPEs with the primary difference being the nature and extent of our continuing involvement. For nonconsolidated SPEs, the transferred financial assets are removed from our balance sheet provided the conditions for sale accounting are met. The financial assets obtained from the sale are primarily reported as cash or retained interests (if applicable). Liabilities incurred as part of these sales are recorded at fair value at the time of sale and are reported as accrued expenses and other liabilities on our Condensed Consolidated Balance Sheet. Upon the sale of the loans, we recognize a gain or loss on sale for the difference between the assets recognized, the assets derecognized, and the liabilities recognized as part of the transaction. With respect to our ongoing right to service the assets we sell, the servicing fee we receive represents adequate compensation, and consequently, we do not recognize a servicing asset or liability.

The pretax losses on sales of financial assets into nonconsolidated VIEs were $7 million and $10 million during the three months and six months ended June 30, 2026, respectively, compared to pretax losses of $2 million during both the three months and six months ended June 30, 2025.

We provide long-term guarantee contracts to investors in certain nonconsolidated affordable housing entities and have extended a line of credit to provide liquidity. Since we do not have control over the entities or the power to make decisions, we do not consolidate the entities and our involvement is limited to the guarantee and the line of credit.

We are involved with various other nonconsolidated equity investments, including affordable housing entities and venture capital funds and loan funds. We do not consolidate these entities and our involvement is limited to our outstanding investment, additional capital committed to these funds plus any previously recognized LIHTCs that are subject to recapture.

Refer to Note 1 and Note 11 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for further description of our securitization activities and our involvement with VIEs.

36

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents our involvement in consolidated and nonconsolidated VIEs in which we hold variable interests. We have excluded certain transactions with nonconsolidated entities from the balances presented in the table below, where our only continuing involvement relates to financial interests obtained through the ordinary course of business, primarily from lending and investing arrangements. For additional detail related to the assets and liabilities of consolidated VIEs, refer to our Condensed Consolidated Balance Sheet.

($ in millions)	Carrying value of total assets			Carrying value of total liabilities			Assets sold to nonconsolidated VIEs (a)		Maximum exposure to loss in nonconsolidated VIEs
June 30, 2026
On‑balance sheet variable interest entities
Consumer automotive	$	11,774	(b)	$	1,945	(c)	$	—	$	—
Off-balance sheet variable interest entities
Consumer automotive (d)	39		(e)	—			4,104		4,143		(f)
Commercial other	2,812		(g)	736		(h)	—		3,671		(i)
Total	$	14,625		$	2,681		$	4,104	$	7,814
December 31, 2025
On-balance sheet variable interest entities
Consumer automotive	$	12,149	(b)	$	1,619	(c)	$	—	$	—
Off-balance sheet variable interest entities
Consumer automotive (d)	53		(e)	—			3,192		3,245		(f)
Commercial other	2,822		(g)	820		(h)	—		3,690		(i)
Total	$	15,024		$	2,439		$	3,192	$	6,935

(a)Represents the current unpaid principal balance of outstanding consumer automotive finance receivables and loans within the VIEs.

(b)Includes $8.8 billion and $8.9 billion of assets that were not encumbered by VIE beneficial interests held by third parties at June 30, 2026, and December 31, 2025, respectively. Ally or consolidated affiliates hold the interests in these assets.

(c)Includes $124 million and $137 million of liabilities that were not obligations to third-party beneficial interest holders at June 30, 2026, and December 31, 2025, respectively.

(d)Includes activity where we sell loans through a pass-through program to a third party.

(e)Represents retained notes and certificated residual interests, of which $36 million and $50 million were classified as held-to-maturity securities at June 30, 2026, and December 31, 2025, respectively, and $3 million were classified as other assets at both June 30, 2026, and December 31, 2025. These assets represent our compliance with the risk retention rules under the Dodd-Frank Act, requiring us to retain at least five percent of the credit risk of the assets underlying asset-backed securitizations.

(f)Maximum exposure to loss represents the current unpaid principal balance of outstanding loans based on our customary representation and warranty provisions. This measure is based on the unlikely event that all the loans have underwriting defects or other defects that trigger a representation and warranty provision and the collateral supporting the loans are worthless. This required disclosure is not an indication of our expected loss.

(g)Amounts are classified as other assets except for $58 million and $56 million classified as equity securities at June 30, 2026, and December 31, 2025, respectively.

(h)Amounts are classified as accrued expenses and other liabilities.

(i)For certain nonconsolidated affordable housing entities, maximum exposure to loss represents the yield we guaranteed investors through long-term guarantee contracts. The amount disclosed is based on the unlikely event that the yield delivered to investors in the form of LIHTCs and other tax credits is recaptured. For nonconsolidated equity investments, maximum exposure to loss represents our outstanding investment, additional committed capital, and LIHTCs and other tax credits subject to recapture. The amount disclosed is based on the unlikely event that our committed capital is funded, our investments become worthless, and the tax credits previously delivered to us are recaptured. This required disclosure is not an indication of our expected loss.

37

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Cash Flows with Nonconsolidated Special-Purpose Entities

The following table summarizes cash flows received and paid related to SPEs and asset-backed financings where the transfer is accounted for as a sale and we have a continuing involvement with the transferred consumer automotive and credit card assets (for example, servicing) that were outstanding during the six months ended June 30, 2026, and June 30, 2025. Additionally, this table contains information regarding cash flows received from and paid to nonconsolidated SPEs that existed during each period.

	Six months ended June 30,
($ in millions)	2026		2025
Consumer automotive
Cash proceeds from transfers completed during the period	$	1,506	$	582
Servicing fees	42		28
Cash flows received on retained interests in securitization entities	16		23
Other cash flows received	3		2
Cash disbursements for repurchases during the period	—		1
Consumer other (a)
Cash proceeds from transfers completed during the period	—		8
Servicing fees	—		1

(a)Includes activity from Ally Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.

Delinquencies and Net Credit Losses

The following tables present quantitative information about off-balance sheet securitizations and whole-loan sales where we have continuing involvement.

	Total amount				Amount 60 days or more past due
($ in millions)	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Off-balance-sheet securitization entities
Consumer automotive	$	727	$	1,002	$	15	$	18
Whole-loan sales (a)
Consumer automotive	3,377		2,190		178		143
Total	$	4,104	$	3,192	$	193	$	161

(a)Whole-loan sales are not part of a securitization transaction, but represent consumer automotive pools of loans sold to third-party investors.

	Net credit losses
	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Off-balance-sheet securitization entities
Consumer automotive	$	3	$	3	$	7	$	8
Whole-loan sales (a)
Consumer automotive	45		21		86		44
Consumer other (b)	—		—		—		7
Total	$	48	$	24	$	93	$	59

(a)Whole-loan sales are not part of a securitization transaction, but represent consumer automotive and credit card pools of loans sold to third-party investors.

(b)Includes activity from Ally Credit Card. We closed the sale of Ally Credit Card on April 1, 2025.

38

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

10.    Other Assets

The components of other assets were as follows.

($ in millions)	June 30, 2026		December 31, 2025
Property and equipment at cost	$	2,281	$	2,280
Accumulated depreciation	(1,170)		(1,130)
Net property and equipment	1,111		1,150
Net deferred tax assets	2,397		2,334
Proportional amortization investments (a) (b)	2,054		2,094
Restricted cash and cash equivalents (c)	1,576		1,543
Nonmarketable equity investments	960		922
Accrued interest, fees, and rent receivables (d)	950		941
Equity-method investments (e)	754		715
Other accounts receivable	309		403
Restricted cash held for securitization trusts (f)	207		236
Goodwill	190		190
Operating lease right-of-use assets	98		109
Other assets	1,004		986
Total other assets (g)	$	11,610	$	11,623

(a)Proportional amortization investments includes qualifying LIHTC, NMTC, and HTC investments.

(b)Presented gross of the associated unfunded commitment. Refer to Note 13 for further information.

(c)Primarily represents restricted cash equivalents funded through the issuance of credit-linked notes. Additionally, includes a number of arrangements with third parties where certain restrictions are placed on balances we hold due to collateral agreements. Refer to Note 17 for further information about the issuance of credit-linked notes.

(d)Primarily relates to accrued interest, fees, and rent receivables related to our consumer automotive and commercial automotive finance receivables and loans.

(e)Primarily relates to investments made in connection with our CRA program.

(f)Includes restricted cash collected from customer payments on securitized receivables, which are distributed by us to investors as payments on the related secured debt, and cash reserve deposits utilized as a form of credit enhancement for various securitization transactions.

(g)Includes gross intangible assets of $80 million at both June 30, 2026, and December 31, 2025, and accumulated amortization of $80 million at both June 30, 2026, and December 31, 2025.

The following table summarizes information about our proportional amortization investments.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Tax credits and other tax benefits from proportional amortization investments (a) (b)	$	90	$	102	$	169	$	158
Investment amortization expense recognized as a component of income tax expense (a)	71		80		133		125
Net benefit from proportional amortization investments (a)	$	19	$	22	$	36	$	33

(a)Amounts are included within income tax expense from continuing operations on our Condensed Consolidated Statement of Comprehensive Income and as a component of operating activities within deferred income taxes, other assets, and other liabilities on our Condensed Consolidated Statement of Cash Flows.

(b)There were no impairment losses recognized during the three months and six months ended June 30, 2026, and June 30, 2025, resulting from the forfeiture or ineligibility of tax credits or other circumstances.

Our proportional amortization investments were $2.1 billion at both June 30, 2026, and December 31, 2025, and are included within other assets on our Condensed Consolidated Balance Sheet. Unfunded commitments to provide additional capital to proportional amortization investments were $735 million and $819 million at June 30, 2026, and December 31, 2025, respectively, and are included within accrued expenses and other liabilities on our Condensed Consolidated Balance Sheet. Substantially all of the unfunded commitments at June 30, 2026, are expected to be paid out within the next five years.

39

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The total carrying value of the nonmarketable equity investments held at June 30, 2026, and December 31, 2025, including cumulative unrealized gains and losses, was as follows.

($ in millions)	June 30, 2026		December 31, 2025
FRB stock	$	454	$	452
FHLB stock	393		359
Equity investments without a readily determinable fair value
Cost basis	95		94
Adjustments
Upward adjustments	57		57
Downward adjustments (including impairment)	(39)		(40)
Carrying amount, equity investments without a readily determinable fair value	113		111
Nonmarketable equity investments	$	960	$	922

During the three months and six months ended June 30, 2026, and June 30, 2025, unrealized gains and losses included in the carrying value of the nonmarketable equity investments still held as of June 30, 2026, and June 30, 2025, were as follows.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Upward adjustments	$	4	$	—	$	4	$	—
Downward adjustments (including impairment) (a)	$	(1)	$	(2)	$	(2)	$	(2)

(a)No impairment on FHLB and FRB stock was recognized during both the three months and six months ended June 30, 2026, and June 30, 2025.

The carrying balance of goodwill by reportable operating segment was as follows.

($ in millions)	Automotive Finance operations		Insurance operations		Corporate and Other (a)		Total
Goodwill at December 31, 2024	$	20	$	27	$	504	$	551
Goodwill impairment	—		—		(305)		(305)
Transfer to assets of operations held-for-sale (b)	—		—		(56)		(56)
Goodwill at December 31, 2025	$	20	$	27	$	143	$	190
Goodwill impairment	—		—		—		—
Goodwill at June 30, 2026	$	20	$	27	$	143	$	190

(a)Includes $143 million of goodwill associated with Ally Invest at both June 30, 2026, and December 31, 2025.

(b)We closed the sale of Ally Credit Card on April 1, 2025. Refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for further information on Ally Credit Card.

During the year ended December 31, 2025, we recognized a $305 million goodwill impairment charge at Corporate and Other related to the transfer of Ally Credit Card to held-for-sale on the Condensed Consolidated Balance Sheet. Subsequent to the impairment charge, the goodwill balance of $56 million was transferred to assets of operations held-for-sale on the Condensed Consolidated Balance Sheet. We closed the sale of Ally Credit Card on April 1, 2025. For additional information, refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K.

40

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

11.    Deposit Liabilities

Deposit liabilities consisted of the following.

($ in millions)	June 30, 2026		December 31, 2025
Noninterest-bearing deposits	$	153	$	125
Interest-bearing deposits
Savings, money market, and spending accounts	111,619		109,214
Certificates of deposit	42,274		42,310
Total deposit liabilities	$	154,046	$	151,649

At June 30, 2026, and December 31, 2025, certificates of deposit included $5.7 billion and $6.2 billion, respectively, of those in denominations in excess of $250 thousand.

12.    Debt

Short-Term Borrowings

The following table presents the composition of our short-term borrowings portfolio.

	June 30, 2026						December 31, 2025
($ in millions)	Unsecured		Secured (a)		Total		Unsecured		Secured (a)		Total
Federal Home Loan Bank	$	—	$	5,175	$	5,175	$	—	$	4,150	$	4,150
Securities sold under agreements to repurchase	—		741		741		—		545		545
Total short-term borrowings	$	—	$	5,916	$	5,916	$	—	$	4,695	$	4,695

(a)Refer to the section below titled Long-Term Debt for further details on assets restricted as collateral for payment of the related debt.

We periodically enter into term repurchase agreements—short-term borrowing agreements in which we sell securities to one or more investors while simultaneously committing to repurchase them at a specified future date, at the stated price plus accrued interest. As of June 30, 2026, the securities sold under agreements to repurchase consisted of $511 million in U.S. Treasury securities and $230 million in agency mortgage backed residential debt securities, of which $517 million in repurchase agreements are set to mature within 30 days, $109 million in repurchase agreements are set to mature within 31 to 60 days, and the remaining $115 million of repurchase agreements are set to mature within 61 to 90 days.

The primary risk associated with these repurchase agreements is that the counterparty will be unable to perform under the terms of the contract. As the borrower, we are exposed to the excess fair value of the securities pledged over the amount borrowed. Daily mark-to-market collateral management is designed to limit this risk to the initial margin. However, should a counterparty declare bankruptcy or become insolvent, we may incur additional delays and costs. In some instances, we may place or receive cash collateral with counterparties under collateral arrangements associated with our repurchase agreements. As of June 30, 2026, we placed cash collateral of $5 million related to repurchase agreements. As of December 31, 2025, we placed cash collateral of $1 million related to repurchase agreements.

Long-Term Debt

The following table presents the composition of our long-term debt portfolio.

	June 30, 2026						December 31, 2025
($ in millions)	Unsecured		Secured		Total		Unsecured		Secured		Total
Long-term debt (a)
Due within one year	$	771	$	2,373	$	3,144	$	—	$	2,659	$	2,659
Due after one year	9,033		4,876		13,909		10,012		4,399		14,411
Total long-term debt (b)	$	9,804	$	7,249	$	17,053	$	10,012	$	7,058	$	17,070

(a)Includes basis adjustments related to the application of hedge accounting. Refer to Note 18 for additional information.

(b)Includes advances from the FHLB of Pittsburgh of $4.0 billion and $4.2 billion at June 30, 2026, and December 31, 2025, respectively.

41

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents the scheduled remaining maturity of long-term debt at June 30, 2026, assuming no early redemptions will occur. The amounts below include adjustments to the carrying value resulting from the application of hedge accounting. The actual payment of secured debt may vary based on the payment activity of the related pledged assets.

($ in millions)	2026		2027		2028		2029		2030		2031 and thereafter		Total
Unsecured
Long-term debt	$	66	$	1,586	$	844	$	1,712	$	799	$	5,446	$	10,453
Original issue discount	(43)		(94)		(107)		(123)		(143)		(139)		(649)
Total unsecured	23		1,492		737		1,589		656		5,307		9,804
Secured
Long-term debt	1,426		2,964		2,212		484		126		37		7,249
Total long-term debt	$	1,449	$	4,456	$	2,949	$	2,073	$	782	$	5,344	$	17,053

The following table summarizes assets restricted as collateral for the payment of the related debt obligation.

($ in millions)	June 30, 2026		December 31, 2025
Consumer automotive finance receivables	$	37,532	$	36,807
Consumer mortgage finance receivables	14,992		15,604
Commercial finance receivables	7,919		7,686
Investment securities (amortized cost basis of $3,256 and $3,114) (a)	3,315		3,292
Other assets (b)	1,407		1,381
Total assets restricted as collateral (c) (d)	$	65,165	$	64,770
Secured debt (e)	$	13,165	$	11,753

(a)A portion of the restricted investment securities at both June 30, 2026, and December 31, 2025, was restricted under repurchase agreements. Refer to the section above titled Short-Term Borrowings for information on the repurchase agreements.

(b)Includes the collateral accounts restricted for the payment of credit-linked notes recorded within restricted cash and cash equivalents. Excludes restricted cash and cash reserves for securitization trusts. Refer to Note 10 and Note 17 for additional information.

(c)All restricted assets are those of Ally Bank.

(d)Ally Bank has an advance agreement with the FHLB, and had assets pledged to secure borrowings that were restricted as collateral to the FHLB totaling $25.5 billion and $26.0 billion at June 30, 2026, and December 31, 2025, respectively. These assets were primarily composed of consumer mortgage finance receivables and loans as well as mortgage-backed securities. Ally Bank has access to the FRB Discount Window and had assets pledged and restricted as collateral to the FRB totaling $34.6 billion and $33.7 billion at June 30, 2026, and December 31, 2025, respectively. These assets were composed of consumer automotive finance receivables and loans. Availability under these programs is only for the operations of Ally Bank and cannot be used to fund the operations or liabilities of Ally or its other subsidiaries.

(e)Includes $5.9 billion and $4.7 billion of short-term borrowings at June 30, 2026, and December 31, 2025, respectively.

13.    Accrued Expenses and Other Liabilities

The components of accrued expenses and other liabilities were as follows.

($ in millions)	June 30, 2026		December 31, 2025
Unfunded commitments for proportional amortization investments (a)	$	735	$	819
Accounts payable	567		420
Employee compensation and benefits	335		417
Reserves for insurance losses and loss adjustment expenses (b)	251		233
Deferred revenue	128		141
Operating lease liabilities	114		124
Other liabilities	548		551
Total accrued expenses and other liabilities	$	2,678	$	2,705

(a)Primarily relates to unfunded commitments for investments in qualified affordable housing projects.

(b)Refer to Note 4 for further information.

42

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

14.    Preferred Stock

Series B Preferred Stock

On May 4, 2026, we announced our intent to redeem all of our issued and outstanding 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. On May 15, 2026, we redeemed all 1,350,000 shares of our issued and outstanding Series B Preferred Stock, with a redemption price of $1,000 per share resulting in an aggregate liquidation preference of $1,350 million. Upon redemption of the shares of Series B Preferred Stock, we derecognized the carrying value of $1,335 million and recorded a deemed dividend of $15 million. Effective May 15, 2026, the Series B Preferred Stock was retired.

Series C Preferred Stock

In June 2021, we issued 1,000,000 shares of 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, with $0.01 par value and liquidation preference of $1,000 per share. Proceeds from the offering were used to redeem a portion of our 8.125% Fixed Rate/Floating Rate Trust Preferred Securities, Series 2 of GMAC Capital Trust I. Dividends on shares of the Series C Preferred Stock are discretionary and are not cumulative. Holders of the Series C Preferred Stock will be entitled to receive, if, when and as declared by our Board, or a duly authorized committee of the Board, out of legally available assets, non-cumulative cash dividends quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2021. Dividends will accrue (i) from the date of original issue to, but excluding, May 15, 2028, at a fixed rate of 4.700% per annum and (ii) from, and including, May 15, 2028, during each seven-year reset period, at a rate per annum equal to the seven-year treasury rate as of the most recent reset dividend determination date plus 3.481% on the liquidation preference amount of $1,000 per share. So long as any share of Series C Preferred Stock remains outstanding, unless the dividends for the most recently completed dividend period have been paid in full, or set aside for payment, on all outstanding shares of Series C Preferred Stock, we will be prohibited, subject to certain specified exceptions, from (i) declaring or paying any dividends or making any distributions with respect to any stock that ranks on a parity basis with, or junior in interest to, the Series C Preferred Stock or (ii) repurchasing, redeeming, or otherwise acquiring for consideration, directly or indirectly, any stock that ranks on a parity basis with, or junior in interest to, the Series C Preferred Stock.

The holders of the Series C Preferred Stock do not have voting rights other than those set forth in the certificate of designations for the Series C Preferred Stock included in Ally’s Certificate of Incorporation. The Series C Preferred Stock does not have a stated maturity date, and will be perpetual unless redeemed at Ally’s option. Ally is not required to redeem the Series C Preferred Stock and holders of the Series C Preferred Stock have no right to require Ally to redeem their shares. Ally may, at its option, redeem the shares of Series C Preferred stock (i) in whole or in part, on any dividend payment date on or after May 15, 2028, or (ii) in whole, but not in part, at any time within 90 days following a regulatory capital treatment event. In the event of any liquidation, dissolution or winding up of the affairs of Ally, holders of the Series C Preferred Stock will be entitled to receive the liquidation amount per share of Series C Preferred Stock and an amount equal to all declared, but unpaid dividends declared prior to the date of payment out of assets available for distribution, before any distribution is made for holders of stock that ranks junior in interest to the Series C Preferred Stock, subject to the rights of Ally’s creditors.

Series D Preferred Stock

In May 2026, we issued 1,000,000 shares of 7.100% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series D, with $0.01 par value and liquidation preference of $1,000 per share. Dividends on shares of the Series D Preferred Stock are discretionary and are not cumulative. Holders of the Series D Preferred Stock will be entitled to receive, if, when and as declared by our Board, or a duly authorized committee of the Board, out of legally available assets, non-cumulative cash dividends quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2026. Dividends will accrue (i) from the date of original issue to, but excluding, August 15, 2031, at a fixed rate of 7.100% per annum and (ii) from, and including, August 15, 2031, during each five-year reset period, at a rate per annum equal to the five-year treasury rate as of the most recent reset dividend determination date plus 3.148% on the liquidation preference amount of $1,000 per share. So long as any share of Series D Preferred Stock remains outstanding, unless the dividends for the most recently completed dividend period have been paid in full, or set aside for payment, on all outstanding shares of Series D Preferred Stock, we will be prohibited, subject to certain specified exceptions, from (i) declaring or paying any dividends or making any distributions with respect to any stock that ranks on a parity basis with, or junior in interest to, the Series D Preferred Stock or (ii) repurchasing, redeeming, or otherwise acquiring for consideration, directly or indirectly, any stock that ranks on a parity basis with, or junior in interest to, the Series D Preferred Stock.

The holders of the Series D Preferred Stock do not have voting rights other than those set forth in the certificate of designations for the Series D Preferred Stock included in Ally’s Certificate of Incorporation. The Series D Preferred Stock does not have a stated maturity date, and will be perpetual unless redeemed at Ally’s option. Ally is not required to redeem the Series D Preferred Stock and holders of the Series D Preferred Stock have no right to require Ally to redeem their shares. Ally may, at its option, redeem the shares of Series D Preferred stock (i) in whole or in part, on any dividend payment date on or after August 15, 2031, or (ii) in whole, but not in part, at any time within 90 days following a regulatory capital treatment event. In the event of any liquidation, dissolution or winding up of the affairs of Ally, holders of the Series D Preferred Stock will be entitled to receive the liquidation amount per share of Series D Preferred Stock and an amount equal to all declared, but unpaid dividends declared prior to the date of payment out of assets available for distribution, before any distribution is made for holders of stock that ranks junior in interest to the Series D Preferred Stock, subject to the rights of Ally’s creditors.

43

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table summarizes information about our preferred stock.

	June 30, 2026		December 31, 2025
Series B preferred stock (a)
Issuance date			April 22, 2021
Carrying value ($ in millions)	$	—	$	1,335
Par value (per share)	$	—	$	0.01
Liquidation preference (per share)	$	—	$	1,000
Number of shares authorized	—		1,350,000
Number of shares issued and outstanding	—		1,350,000
Dividend/coupon
Prior to May 15, 2026	—%		4.700%
On and after May 15, 2026	—%		Five Year Treasury + 3.868%
Series C preferred stock (b)
Issuance date	June 2, 2021		June 2, 2021
Carrying value ($ in millions)	$	989	$	989
Par value (per share)	$	0.01	$	0.01
Liquidation preference (per share)	$	1,000	$	1,000
Number of shares authorized	1,000,000		1,000,000
Number of shares issued and outstanding	1,000,000		1,000,000
Dividend/coupon
Prior to May 15, 2028	4.700%		4.700%
On and after May 15, 2028	Seven Year Treasury + 3.481%		Seven Year Treasury + 3.481%
Series D preferred stock (b)
Issuance date	May 1, 2026
Carrying value ($ in millions)	$	987	$	—
Par value (per share)	$	0.01	$	—
Liquidation preference (per share)	$	1,000	$	—
Number of shares authorized	1,000,000		—
Number of shares issued and outstanding	1,000,000		—
Dividend/coupon
Prior to August 15, 2031	7.100%		—%
On and after August 15, 2031	Five Year Treasury + 3.148%		—%

(a)On May 15, 2026, we redeemed all 1,350,000 shares of our issued and outstanding Series B Preferred Stock.

(b)We may, at our option, redeem the Series C and Series D shares on any dividend payment date on or after May 15, 2028, or August 15, 2031, respectively, or at any time within 90 days following a regulatory event that precludes the instruments from being included in additional Tier 1 capital.

44

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

15.    Accumulated Other Comprehensive Loss

The following tables present changes, net of tax, in each component of accumulated other comprehensive loss.

	Three months ended June 30,
	Investment securities
($ in millions)	Available- for-sale securities (a)		Held-to-maturity securities		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Accumulated other comprehensive loss
Balance at April 1, 2025	$	(2,665)	$	(601)	$	20	$	(16)	$	(3,262)
Net change	18		17		2		6		43
Balance at June 30, 2025	$	(2,647)	$	(584)	$	22	$	(10)	$	(3,219)
Balance at April 1, 2026	$	(2,265)	$	(537)	$	23	$	6	$	(2,773)
Net change	44		15		—		3		62
Balance at June 30, 2026	$	(2,221)	$	(522)	$	23	$	9	$	(2,711)

(a)Represents the after-tax difference between the fair value and amortized cost basis of our available-for-sale securities portfolio. Refer to Note 6 for additional information.

(b)For additional information on derivative instruments and hedging activities, refer to Note 18.

	Six months ended June 30,
	Investment securities
($ in millions)	Available- for-sale securities (a)		Held-to-maturity securities		Translation adjustments and net investment hedges (b)		Cash flow hedges (b)		Accumulated other comprehensive loss
Balance at January 1, 2025	$	(3,307)	$	(616)	$	20	$	(21)	$	(3,924)
Net change	660		32		2		11		705
Balance at June 30, 2025	$	(2,647)	$	(584)	$	22	$	(10)	$	(3,219)
Balance at January 1, 2026	$	(2,260)	$	(551)	$	23	$	2	$	(2,786)
Net change	39		29		—		7		75
Balance at June 30, 2026	$	(2,221)	$	(522)	$	23	$	9	$	(2,711)

(a)Represents the after-tax difference between the fair value and amortized cost basis of our available-for-sale securities portfolio. Refer to Note 6 for additional information.

(b)For additional information on derivative instruments and hedging activities, refer to Note 18.

45

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables present the before- and after-tax changes in each component of accumulated other comprehensive loss.

Three months ended June 30, 2026 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Available-for-sale securities
Net unrealized gains arising during the period	$	59		$	(15)		$	44
Held-to-maturity securities
Less: Amortization of amounts previously recorded upon transfer from available-for-sale	(21)		(a)	6		(b)	(15)
Translation adjustments
Net unrealized losses arising during the period	(4)			1			(3)
Net investment hedges (c)
Net unrealized gains arising during the period	4			(1)			3
Cash flow hedges (c)
Less: Net realized losses reclassified to income from continuing operations	(4)		(d)	1		(b)	(3)
Net change	4			(1)			3
Other comprehensive income	$	84		$	(22)		$	62

(a)Includes amounts reclassified to interest and dividends on investment securities and other earning assets in our Condensed Consolidated Statement of Comprehensive Income.

(b)Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.

(c)For additional information on derivative instruments and hedging activities, refer to Note 18.

(d)Includes losses reclassified to interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

Three months ended June 30, 2025 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Available-for-sale securities
Net unrealized gains arising during the period	$	26		$	(7)		$	19
Less: Net realized gains reclassified to income from continuing operations	2		(a)	(1)		(b)	1
Net change	24			(6)			18
Held-to-maturity securities
Less: Amortization of amounts previously recorded upon transfer from available-for-sale	(22)		(c)	5		(b)	(17)
Translation adjustments
Net unrealized gains arising during the period	12			(3)			9
Net investment hedges (d)
Net unrealized losses arising during the period	(9)			2			(7)
Cash flow hedges (d)
Net unrealized losses arising during the period	(1)			—			(1)
Less: Net realized losses reclassified to income from continuing operations	(8)		(e)	1		(b)	(7)
Net change	7			(1)			6
Other comprehensive income	$	56		$	(13)		$	43

(a)Includes gains reclassified to other gain (loss) on investments, net in our Condensed Consolidated Statement of Comprehensive Income.

(b)Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.

(c)Includes amounts reclassified to interest and dividends on investment securities and other earning assets in our Condensed Consolidated Statement of Comprehensive Income.

(d)For additional information on derivative instruments and hedging activities, refer to Note 18.

(e)Includes losses reclassified to interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

46

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Six months ended June 30, 2026 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Available-for-sale securities
Net unrealized gains arising during the period	$	55		$	(14)		$	41
Less: Net realized gains reclassified to income from continuing operations	3		(a)	(1)		(b)	2
Net change	52			(13)			39
Held-to-maturity securities
Less: Amortization of amounts previously recorded upon transfer from available-for-sale	(40)		(c)	11		(b)	(29)
Translation adjustments
Net unrealized losses arising during the period	(7)			2			(5)
Net investment hedges (d)
Net unrealized gains arising during the period	7			(2)			5
Cash flow hedges (d)
Less: Net realized losses reclassified to income from continuing operations	(9)		(e)	2		(b)	(7)
Net change	9			(2)			7
Other comprehensive income	$	101		$	(26)		$	75

(a)Includes gains reclassified to other gain (loss) on investments, net, in our Condensed Consolidated Statement of Comprehensive Income.

(b)Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.

(c)Includes amounts reclassified to interest and dividends on investment securities and other earning assets in our Condensed Consolidated Statement of Comprehensive Income.

(d)For additional information on derivative instruments and hedging activities, refer to Note 18.

(e)Includes losses reclassified to interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

Six months ended June 30, 2025 ($ in millions)	Before tax			Tax effect			After tax
Investment securities
Available-for-sale securities
Net unrealized gains arising during the period	$	372		$	(88)		$	284
Less: Net realized losses reclassified to income from continuing operations	(493)		(a)	117		(b)	(376)
Net change	865			(205)			660
Held-to-maturity securities
Less: Amortization of amounts previously recorded upon transfer from available-for-sale	(42)		(c)	10		(b)	(32)
Translation adjustments
Net unrealized gains arising during the period	12			(3)			9
Net investment hedges (d)
Net unrealized losses arising during the period	(9)			2			(7)
Cash flow hedges (d)
Net unrealized losses arising during the period	(1)			—			(1)
Less: Net realized losses reclassified to income from continuing operations	(15)		(e)	3		(b)	(12)
Net change	14			(3)			11
Other comprehensive income	$	924		$	(219)		$	705

(a)Includes losses reclassified to other gain (loss) on investments, net in our Condensed Consolidated Statement of Comprehensive Income related to the balance sheet repositioning of our available-for-sale securities portfolio. Refer to Note 8 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information.

(b)Includes amounts reclassified to income tax expense from continuing operations in our Condensed Consolidated Statement of Comprehensive Income.

(c)Includes amounts reclassified to interest and dividends on investment securities and other earning assets in our Condensed Consolidated Statement of Comprehensive Income.

(d)For additional information on derivative instruments and hedging activities, refer to Note 18.

(e)Includes losses reclassified to interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income.

47

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

16.    Earnings per Common Share

The following table presents the calculation of basic and diluted earnings per common share.

	Three months ended June 30,				Six months ended June 30,
($ in millions, except per share data; shares in thousands) (a)	2026		2025		2026		2025
Net income from continuing operations	$	410	$	352	$	729	$	127
Preferred stock dividends — Series B (b)	(31)		(16)		(47)		(32)
Preferred stock dividends — Series C	(12)		(12)		(24)		(24)
Net income from continuing operations attributable to common shareholders	$	367	$	324	$	658	$	71
Net income attributable to common shareholders	$	367	$	324	$	658	$	71
Basic weighted-average common shares outstanding (c)	308,362		309,895		309,669		309,453
Diluted weighted-average common shares outstanding (c)	311,035		312,434		312,120		312,033
Basic earnings per common share
Net income from continuing operations	$	1.19	$	1.05	$	2.13	$	0.23
Net income	$	1.19	$	1.05	$	2.13	$	0.23
Diluted earnings per common share
Net income from continuing operations	$	1.18	$	1.04	$	2.11	$	0.23
Net income	$	1.18	$	1.04	$	2.11	$	0.23

(a)Figures in the table may not recalculate exactly due to rounding. Earnings per share is calculated based on unrounded numbers.

(b)Includes a $15 million deemed dividend associated with the acceleration of issuance costs from the redemption of the Series B Preferred Stock during the three months and six months ended June 30, 2026.

(c)Includes shares related to share-based compensation that vested but were not yet issued.

17.    Regulatory Capital and Other Regulatory Matters

Ally is subject to enhanced prudential standards that have been established by the FRB under the Dodd-Frank Act, as amended by the EGRRCP Act and as applied to Category IV firms under the Tailoring Rules. Refer to the discussion below, however, about rules proposed by the U.S. banking agencies in 2023 that would significantly alter the Tailoring Rules. Currently, as a Category IV firm, Ally is (1) subject to supervisory stress testing on a two-year cycle, (2) required to submit an annual capital plan to the FRB, (3) exempted from company-run capital stress testing requirements, (4) required to maintain a buffer of unencumbered highly liquid assets to meet projected net stressed cash outflows over a 30-day planning horizon, (5) exempted from the requirements of the LCR and the net stable funding ratio (provided that our average wSTWF continues to remain under $50 billion), (6) exempted from the requirements of the supplementary leverage ratio, the countercyclical capital buffer, and single-counterparty credit limits, and (7) eligible to exclude most elements of accumulated other comprehensive income from regulatory capital. Even so, we are subject to rules enabling the FRB to conduct supervisory stress testing on a more or less frequent basis based on our financial condition, size, complexity, risk profile, scope of operations, or activities or based on risks to the U.S. economy. Further, we are subject to rules requiring the resubmission of our capital plan if we determine that there has been or will be a material change in our risk profile, financial condition, or corporate structure since we last submitted the capital plan or if the FRB determines that (a) our capital plan is incomplete or our capital plan or internal capital adequacy process contains material weaknesses, (b) there has been, or will likely be, a material change in our risk profile (including a material change in our business strategy or any risk exposure), financial condition, or corporate structure, or (c) the BHC stress scenario(s) are not appropriate for our business model and portfolios, or changes in the financial markets or the macroeconomic outlook that could have a material impact on our risk profile and financial condition require the use of updated scenarios. While a resubmission is pending, without prior approval of the FRB, we would generally be prohibited from paying dividends, repurchasing our common stock, or making other capital distributions. In addition, to satisfy the FRB in its review of our capital plan, we may be required to further cease or limit these capital distributions or to issue capital instruments that could be dilutive to shareholders. The FRB also may prevent us from maintaining or expanding lending or other business activities.

Basel Capital Framework

The FRB and other U.S. banking agencies have adopted risk-based and leverage capital rules that establish minimum capital-to-asset ratios for BHCs, like Ally, and depository institutions, like Ally Bank.

The risk-based capital ratios are based on a banking organization’s RWAs, which are generally determined under the standardized approach applicable to Ally and Ally Bank by (1) assigning on-balance-sheet exposures to broad risk-weight categories according to the counterparty or, if relevant, the guarantor or collateral (with higher risk weights assigned to categories of exposures perceived as representing greater risk), and (2) multiplying off-balance-sheet exposures by specified credit conversion factors to calculate credit equivalent amounts and assigning those credit equivalent amounts to the relevant risk-weight categories. The leverage ratio, in contrast, is based on an institution’s average unweighted on-balance-sheet exposures.

48

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Under U.S. Basel III, Ally and Ally Bank must maintain a minimum Common Equity Tier 1 risk-based capital ratio of 4.5%, a minimum Tier 1 risk-based capital ratio of 6%, and a minimum total risk-based capital ratio of 8%. On top of the minimum risk-based capital ratios, Ally and Ally Bank are subject to a capital conservation buffer requirement, which must be satisfied entirely with capital that qualifies as Common Equity Tier 1 capital. Failure to maintain more than the full amount of the capital conservation buffer requirement would result in automatic restrictions on the ability of Ally and Ally Bank to make capital distributions, including dividend payments and share repurchases and redemptions, and to pay discretionary bonuses to executive officers. U.S. Basel III also subjects Ally and Ally Bank to a minimum Tier 1 leverage ratio of 4%. While the capital conservation buffer requirement for Ally Bank is fixed at 2.5% of RWAs, the capital conservation buffer requirement for a Category IV firm, like Ally, is equal to its stress capital buffer requirement. The stress capital buffer requirement for Ally, in turn, is the greater of 2.5% and the result of the following calculation: (1) the difference between Ally’s starting and minimum projected Common Equity Tier 1 capital ratios under the severely adverse scenario in the supervisory stress test, plus (2) the sum of the dollar amount of Ally’s planned common stock dividends for each of the fourth through seventh quarters of its nine-quarter capital planning horizon, as a percentage of RWAs. As of June 30, 2026, the stress capital buffer requirement for Ally was 2.6%. Refer to the discussion below regarding a rule proposed by the FRB that would make certain changes to the methodology for determining the stress capital buffer requirement.

Ally and Ally Bank are currently subject to the U.S. Basel III standardized approach for credit risk but not to the U.S. Basel III advanced approaches for credit risk or operational risk. Ally is also not currently subject to the U.S. market-risk capital rule, which applies only to banking organizations with significant trading assets and liabilities. Since Ally and Ally Bank are currently not subject to the advanced approaches risk-based capital rules, we elected to apply a one-time option to exclude most components of accumulated other comprehensive income and loss from regulatory capital. At June 30, 2026, and December 31, 2025, Ally had $2.7 billion and $2.8 billion, respectively, of accumulated other comprehensive loss, net of applicable income taxes, that was excluded from Common Equity Tier 1 capital. Refer to the discussion below about rules proposed by the U.S. banking agencies in 2023 that would require us to recognize all components of accumulated other comprehensive income and loss in regulatory capital, except gains and losses on cash-flow hedges where the hedged items are not recognized on our balance sheet at fair value. Refer also to Note 15 for additional details about our accumulated other comprehensive loss.

Failure to satisfy regulatory-capital requirements could result in significant sanctions—such as bars or other limits on capital distributions and discretionary bonuses to executive officers, limitations on acquisitions and new activities, restrictions on our acceptance of brokered deposits, a loss of our status as an FHC, or informal or formal enforcement and other supervisory actions—and could have a significant adverse effect on the Consolidated Financial Statements or the business, results of operations, financial condition, or prospects of Ally and Ally Bank.

The risk-based capital ratios and the Tier 1 leverage ratio play a central role in PCA, which is an enforcement framework used by the U.S. banking agencies to constrain the activities of depository institutions based on their levels of regulatory capital. Five categories have been established using thresholds for the Common Equity Tier 1 risk-based capital ratio, the Tier 1 risk-based capital ratio, the total risk-based capital ratio, and the Tier 1 leverage ratio: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. FDICIA generally prohibits a depository institution from making any capital distribution, including any payment of a cash dividend or a management fee to its BHC, if the depository institution would become undercapitalized after the distribution. An undercapitalized institution is also subject to growth limitations and must submit and fulfill a capital restoration plan. Although BHCs are not subject to the PCA framework, the FRB is empowered to compel a BHC to take measures—such as the execution of financial or performance guarantees—when PCA is required in connection with one of its depository-institution subsidiaries. At both June 30, 2026, and December 31, 2025, Ally Bank met the capital ratios required to be well capitalized under the PCA framework.

Under FDICIA and the PCA framework, IDIs such as Ally Bank must be well capitalized or, with a waiver from the FDIC, adequately capitalized in order to accept brokered deposits, and even adequately capitalized institutions are subject to some restrictions on the rates they may offer for brokered deposits. Our brokered deposits totaled $9.0 billion at June 30, 2026, which represented 5.8% of total deposit liabilities.

49

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table summarizes our capital ratios under U.S. Basel III.

	June 30, 2026				December 31, 2025				Required minimum (a)		Well-capitalized minimum
($ in millions)	Amount		Ratio		Amount		Ratio
Capital ratios
Common Equity Tier 1 (to risk-weighted assets)
Ally Financial Inc.	$	15,922	10.15	%	$	15,629	10.23	%	4.50	%	(b)
Ally Bank	18,021		12.30		17,853		12.50		4.50		6.50	%
Tier 1 (to risk-weighted assets)
Ally Financial Inc.	$	17,813	11.36	%	$	17,885	11.70	%	6.00	%	6.00	%
Ally Bank	18,021		12.30		17,853		12.50		6.00		8.00
Total (to risk-weighted assets)
Ally Financial Inc.	$	20,693	13.19	%	$	20,731	13.56	%	8.00	%	10.00	%
Ally Bank	19,874		13.57		19,659		13.77		8.00		10.00
Tier 1 leverage (to adjusted quarterly average assets) (c)
Ally Financial Inc.	$	17,813	8.93	%	$	17,885	9.25	%	4.00	%	(b)
Ally Bank	18,021		9.60		17,853		9.82		4.00		5.00	%

(a)In addition to the minimum risk-based capital requirements for the Common Equity Tier 1 capital, Tier 1 capital, and total capital ratios, Ally was subject to a minimum capital conservation buffer of 2.6% at both June 30, 2026, and December 31, 2025, and Ally Bank was subject to a minimum capital conservation buffer of 2.5% at both June 30, 2026, and December 31, 2025.

(b)Currently, there is no ratio component for determining whether a BHC is “well-capitalized.”

(c)Federal regulatory reporting guidelines require the calculation of adjusted quarterly average assets using a daily average methodology.

Under U.S. Basel III, Category I and II firms calculate their risk-weighted assets under two different methodologies—the standardized approach, and the advanced approaches that rely on internal models. These firms are generally bound to the more stringent of the two calculations. Category III and IV firms, and other banking organizations subject to risk-based capital standards apply only the standardized approach under U.S. Basel III. In March 2026, the U.S. banking agencies issued two proposed rules to customize and implement revisions to the global Basel III capital framework that were approved by the Basel Committee in December 2017.

The first proposed rule would replace this dual-stack framework for Category I and II firms with a single, new risk-weighted assets calculation referred to as the expanded risk-based approach. The advanced approaches would be removed from the regulatory capital framework. The standardized approach, as modified by the second proposed rule, would continue to apply to all other firms that are subject to risk-based capital standards. Banking organizations of any size, however, would have the option to elect to use the expanded risk-based approach instead of the revised standardized approach. Relative to the current dual-stack framework, the expanded risk-based approach is a standardized framework intended to promote simplicity, risk sensitivity, transparency, and consistency across the firms to which it would apply. Risk-weighted assets would be assigned to address credit risk, equity risk, operational risk, market risk, and CVA risk. Notably, operational risk capital requirements would be based on a new standardized calculation that would replace the current models-based approach. The proposal would also introduce a new framework for market risk and adjust the thresholds used to determine which firms—in addition to those in Category I and II—are subject to the market risk and CVA risk capital requirements.

The second proposed rule would make targeted revisions within the standardized approach currently used by Category III and IV firms, and other banking organizations subject to risk-based capital standards. These revisions are intended to improve the calibration and risk sensitivity for certain exposure categories. The proposal would require Category III and IV firms to recognize in regulatory capital most elements of accumulated other comprehensive income and loss. This change would be phased in over a period of five years. For firms subject to the standardized approach that do not elect to use the expanded risk-based approach, the proposal would also reduce the risk weight applicable to all assets not specifically assigned a different risk weight under the capital rule (such as consumer automotive loans and leases) from 100 percent to 90 percent, as well as reduce the risk weight applicable to corporate exposures from 100 percent to 95 percent. Residential mortgage exposures would generally be risk weighted using an LTV-based methodology under the proposal. While these risk weights are generally more punitive than those assigned to similar exposure categories under the proposed expanded risk-based approach, the standardized approach would not separately assign risk-weighted assets to address operational risk. The supervisory formula used to assign risk weights for securitization exposures would be adjusted to align with that of the proposed expanded risk-based approach with an output floor that is reduced from 20 percent to 15 percent.

Both proposals would modify the definition of regulatory capital by removing the threshold-based deduction of mortgage servicing assets, and all firms that use the expanded risk-based approach would be required to apply the more stringent threshold test to determine any capital deduction for certain DTAs and investments in the capital instruments of unconsolidated financial institutions. These proposals were issued without effective dates but generally assume transition periods that begin January 1, 2027, and have comment periods that expired June 18, 2026. As proposed, the phase-in of accumulated other comprehensive income and loss would be expected to significantly affect our

50

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

levels of regulatory capital. The impact of lower capital levels would be partially offset by the recalibration of risk weights proposed in the expanded risk-based approach or revised standardized approach. Whether and when final rules related to these proposals may be adopted and take effect, as well as what changes to the proposed rules may be reflected in any final rules after public comments are considered, remain unclear.

In April 2025, the FRB issued a proposed rule that would modify certain aspects of its supervisory stress tests. Under the proposed rule, the stress capital buffer requirement for Category I–III firms subject to the capital plan rule would be calculated using a methodology that averages results from each of the prior two consecutive annual supervisory stress tests. For Category IV firms subject to the capital plan rule, like Ally, the stress capital buffer requirement would be determined under this two-year averaging methodology only if they choose or are otherwise required to be subject to consecutive supervisory stress tests. According to the FRB, this change is intended to reduce the volatility of a firm’s regulatory capital requirement inherent in the current approach of using the results from only the most recent supervisory stress test. Additionally, to provide firms additional time to adjust to their new regulatory capital requirements, the proposal would delay the annual effective date of a firm’s updated stress capital buffer requirement from October 1 to January 1 of the following year.

In October 2025, the FRB issued proposals to enhance the transparency and public accountability of its annual stress test, which is used to set the stress capital buffers for large BHCs, including Ally. The proposals request comment on several elements of the stress test, including the models and scenarios used; an enhanced disclosure process for the scenarios and material model changes in future stress test cycles; modifications to reporting forms; and an adjusted timeline for the annual process to accommodate a comment period for scenarios and material model changes.

In February 2026, the FRB issued final stress test scenarios for the 2026 supervisory stress test, and announced it intends to maintain stress capital buffer requirements at their current level until 2027 when new requirements can be calculated based on models that take public feedback into consideration. Whether and when final rules related to these stress-testing proposals may be adopted and take effect, as well as what changes to the proposed rules may be reflected in any such final rules, remain unclear.

Capital Planning and Stress Tests

Under the Tailoring Rules, we are generally subject to supervisory stress testing on a two-year cycle and exempted from mandated company-run capital stress testing requirements. We are also required to submit an annual capital plan to the FRB. Our annual capital plan must include an assessment of our expected uses and sources of capital and a description of all planned capital actions over a nine-quarter planning horizon, including any issuance of a debt or equity capital instrument, any dividend or other capital distribution, and any similar action that the FRB determines could have an impact on our capital. The plan must also include a detailed description of our process for assessing capital adequacy, including a discussion of how we, under expected and stressful conditions, will maintain capital commensurate with our risks and above the minimum regulatory capital ratios, will serve as a source of strength to Ally Bank, and will maintain sufficient capital to continue our operations by maintaining ready access to funding, meeting our obligations to creditors and other counterparties, and continuing to serve as a credit intermediary.

The Tailoring Rules align capital planning, supervisory stress testing, and stress capital buffer requirements for large banking organizations, like Ally. As a Category IV firm, Ally is expected to have the ability to elect to participate in the supervisory stress test—and receive a correspondingly updated stress capital buffer requirement—in a year in which Ally would not generally be subject to the supervisory stress test. Refer to the section titled Basel Capital Framework above for further discussion about our stress capital buffer requirements. During a year in which Ally does not undergo a supervisory stress test, we would receive an updated stress capital buffer requirement only to reflect our updated planned common-stock dividends. Ally did not elect to participate in the 2023 or 2025 supervisory stress tests, but was subject to the 2024 supervisory stress test.

We submitted our 2024 capital plan to the FRB in April 2024, and received an updated preliminary stress capital buffer requirement from the FRB in June 2024 of 2.6%. The updated 2.6% stress capital buffer requirement was finalized in August 2024, and became effective in October 2024. We submitted our 2025 capital plan to the FRB in April 2025, and received in June 2025 an updated preliminary stress capital buffer requirement that remained unchanged at 2.6%. The 2.6% stress capital buffer requirement was finalized in August 2025, and became effective in October 2025. We submitted our 2026 capital plan to the FRB in April 2026.

In December 2024, we accessed the unsecured debt capital markets and issued $500 million of subordinated notes, which qualify for us as Tier 2 capital for Ally under U.S. Basel III. During the second quarter of 2026, we issued $1.0 billion of Series D Preferred Stock, which qualifies for us as additional Tier 1 capital under U.S. Basel III. The proceeds from this issuance were used to support the redemption of all of our Series B Preferred Stock then outstanding.

During the years ended December 31, 2025, and 2024, we accessed the debt capital markets and issued an aggregate of $1.1 billion and $770 million, respectively, of credit-linked notes based on combined reference portfolios of $10.0 billion and $7.0 billion of consumer automotive loans. During the second quarter of 2026, we issued an additional $550 million of credit-linked notes based on a reference portfolio of $5.0 billion of consumer automotive loans. The proceeds from these credit-linked notes issuances constitute prefunded credit protection for mezzanine tranches of the respective reference portfolio. These transactions are structured to enable us to apply the securitization framework under U.S. Basel III when determining RWA for our retained exposure, which recognizes the credit risk mitigation benefits and generally provides lower risk weights relative to those assigned to consumer automotive loans that are not securitized. As of June 30, 2026, and December 31, 2025, $13.9 billion and $12.1 billion, respectively, of our consumer automotive loans and related exposures were included as reference assets in these credit-linked notes transactions.

51

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

In December 2025, our Board authorized a share repurchase program, permitting us to repurchase up to $2.0 billion of our common stock under a multi-year program without a set expiration date. Our ability to make capital distributions, including our ability to pay dividends or repurchase shares of our common stock, will continue to be subject to the FRB’s review and our internal governance requirements, including approval by our Board. The amount and size of any future dividends and share repurchases also will be subject to various factors, including Ally’s capital and liquidity positions, accounting and regulatory considerations (including any restrictions that may be imposed by the FRB and any changes to capital, liquidity, and other regulatory requirements that may be proposed or adopted by the U.S. banking agencies), Ally’s financial and operational performance, alternative uses of capital, the trading price of Ally’s common stock, and general market conditions. The share repurchase program does not obligate Ally to acquire a specific dollar amount or number of shares, and may be extended, modified, or discontinued at any time.

The following table presents information related to our common stock and distributions to our common shareholders.

	Common stock repurchased during period (a)			Number of common shares outstanding		Cash dividends declared per common share (b)
($ in millions, except per share data; shares in thousands)	Approximate dollar value		Number of shares	Beginning of period	End of period
2025
First quarter	$	34	877	305,388	307,152	$	0.30
Second quarter	1		27	307,152	307,787	0.30
Third quarter	1		25	307,787	307,828	0.30
Fourth quarter	23		543	307,828	308,493	0.30
2026
First quarter	$	147	3,624	308,493	307,408	$	0.30
Second quarter	148		3,371	307,408	304,543	0.30

(a)Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans.

(b)On July 17, 2026, our Board declared a quarterly cash dividend of $0.30 per share on all common stock payable on August 14, 2026, to shareholders of record at the close of business on July 31, 2026.

18.    Derivative Instruments and Hedging Activities

We enter into derivative instruments, which may include interest rate swaps, foreign-currency forwards, equity options, and interest rate options, in connection with our risk-management activities. Our primary objective for using derivative financial instruments is to manage interest rate risk associated with our fixed-rate and variable-rate assets and liabilities, foreign exchange risks related to our net investments in foreign subsidiaries, as well as foreign-currency denominated assets and liabilities, and other market risks related to our investment portfolio.

Interest Rate Risk

We monitor our mix of fixed-rate and variable-rate assets and liabilities and may enter into interest rate swaps, forwards, and options to achieve a more desired mix of fixed-rate and variable-rate assets and liabilities. We execute these trades to modify our exposure to interest rate risk by converting certain fixed-rate instruments to a variable-rate and certain variable-rate instruments to a fixed-rate. We use a mix of both derivatives that qualify for hedge accounting treatment and economic hedges that do not qualify for hedge accounting treatment.

Derivatives qualifying for hedge accounting treatment can include receive-fixed swaps designated as fair value hedges of specific fixed-rate unsecured debt obligations, receive-fixed swaps designated as fair value hedges of specific fixed-rate FHLB advances, pay-fixed swaps designated as fair value hedges of securities within our available-for-sale portfolio, and pay-fixed swaps designated as fair value hedges of fixed-rate held-for-investment consumer automotive loan assets. Other derivatives qualifying for hedge accounting consist of interest rate floor contracts designated as cash flow hedges of the expected future cash flows in the form of interest receipts on a portion of our dealer floorplan commercial loans.

Our economic hedges include interest rate swaps that we offer as an accommodation to our customers within our Corporate Finance business. We offset the majority of the market risk of these customer swaps by entering into offsetting derivatives transactions with other counterparties.

We also entered into interest rate lock commitments and forward commitments that were executed as part of our mortgage business that met the accounting definition of a derivative.

We may execute other economic hedges, which could consist of interest rate swaps, forwards, and options to mitigate interest rate risk.

Foreign Exchange Risk

We enter into derivative financial instrument contracts to mitigate the risk associated with variability in cash flows related to our various foreign-currency exposures.

52

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

We enter into foreign-currency forwards with external counterparties as net investment hedges of foreign exchange exposure on our investment in foreign subsidiaries. Our equity is impacted by the cumulative translation adjustments resulting from the translation of foreign subsidiary results; this impact is reflected in our accumulated other comprehensive income and loss. We also periodically enter into foreign-currency forwards to economically hedge any foreign-denominated debt, centralized lending, and foreign-denominated third-party loans. These foreign-currency forwards used as economic hedges are recorded at fair value, with changes recorded as income or expense offsetting the gains and losses on the associated foreign-currency transactions.

Investment Risk

We enter into equity options to mitigate the risk associated with our exposure to the equity markets.

Credit Risk

We entered into various retail automotive-loan purchase agreements with certain counterparties. As part of those agreements, we may have been required to pay the counterparty at agreed upon measurement dates and determinable amounts if actual credit performance of the acquired loans on the measurement date was better than what was estimated at the time of acquisition. Based upon these terms, these contracts met the accounting definition of a derivative.

We enter into arrangements with certain counterparties through which we issue credit-linked notes covering a specified pool of loans. These notes contain an embedded derivative (referred to as credit-linked note derivatives), which provides us credit protection against the risk of loss when a specified credit event occurs on the reference pool.

Counterparty Credit Risk

Derivative financial instruments contain an element of credit risk if counterparties are unable to meet the terms of the agreements. Credit risk associated with derivative financial instruments is measured as the net replacement cost should the counterparties that owe us under the contract completely fail to perform under the terms of those contracts, with adjustments to reflect the exchange of collateral for margined transactions.

We manage our risk to financial counterparties through internal credit analysis, limits, and monitoring. Additionally, derivatives and repurchase agreements are entered into with approved counterparties using industry standard agreements.

We execute certain OTC derivatives, such as interest rate swaps or options, using bilateral agreements with financial counterparties. Bilateral agreements generally require both parties to post collateral in the event the fair values of the derivative financial instruments meet posting thresholds established under the agreements. If either party defaults on the obligation, the secured party may seize the collateral. Payments related to the exchange of collateral for OTC derivatives are recognized as collateral.

We also execute certain derivatives, such as interest rate swaps, with clearinghouses, which require us to post and receive collateral. For these clearinghouse derivatives, these payments are recognized as settlements rather than collateral.

Certain derivative instruments contain provisions that require us to either post additional collateral or immediately settle any outstanding liability balances upon the occurrence of a specified credit-risk-related event. No such specified credit-risk-related events occurred during the six months ended June 30, 2026, or 2025.

We placed noncash collateral with counterparties totaling $248 million supporting our derivative positions at June 30, 2026, compared to $4 million and $328 million, of cash and noncash collateral, respectively, at December 31, 2025. These amounts include noncash collateral placed at clearinghouses and exclude cash and noncash collateral pledged under repurchase agreements. The receivables for cash collateral placed are included on our Condensed Consolidated Balance Sheet in other assets. We granted our counterparties the right to sell or pledge the noncash collateral.

We received cash collateral from counterparties totaling $9 million at June 30, 2026. These amounts exclude cash and noncash collateral pledged under repurchase agreements. The payables for cash collateral received are included on our Condensed Consolidated Balance Sheet in accrued expenses and other liabilities.

53

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Balance Sheet Presentation

The following table summarizes the amounts of derivative instruments reported on our Condensed Consolidated Balance Sheet. The amounts are presented on a gross basis, are segregated by derivatives that are designated and qualifying as hedging instruments or those that are not, and are further segregated by type of contract within those two categories.

Derivative contracts in a receivable and payable position exclude open trade equity on derivatives cleared through central clearing counterparties. Any associated margin exchanged with our central clearing counterparties are treated as settlements of the derivative exposure, rather than collateral. Such payments are recognized as settlements of the derivatives contracts in a receivable and payable position on our Condensed Consolidated Balance Sheet.

Notional amounts are reference amounts from which contractual obligations are derived and are not recorded on the balance sheet. In our view, derivative notional is not an accurate measure of our derivative exposure when viewed in isolation from other factors, such as market rate fluctuations and counterparty credit risk.

	June 30, 2026						December 31, 2025
	Derivative contracts in a				Notional amount		Derivative contracts in a				Notional amount
($ in millions)	receivable position		payable position				receivable position		payable position
Derivatives designated as accounting hedges
Interest rate contracts
Swaps	$	—	$	—	$	20,992	$	—	$	—	$	23,257
Purchased options	—		—		—		—		—		3,450
Foreign exchange contracts
Forwards	8		—		183		—		4		199
Total derivatives designated as accounting hedges	8		—		21,175		—		4		26,906
Derivatives not designated as accounting hedges
Interest rate contracts
Swaps	1		1		394		—		—		—
Total interest rate risk	1		1		394		—		—		—
Foreign exchange contracts
Forwards	—		—		29		—		—		71
Total foreign exchange risk	—		—		29		—		—		71
Credit contracts
Credit-linked note derivatives	—		2		1,583		—		—		1,381
Total credit risk	—		2		1,583		—		—		1,381
Total derivatives not designated as accounting hedges	1		3		2,006		—		—		1,452
Total derivatives	$	9	$	3	$	23,181	$	—	$	4	$	28,358

54

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following table presents amounts recorded on our Condensed Consolidated Balance Sheet related to cumulative basis adjustments for fair value hedges.

	Carrying amount of the hedged items				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged items
					Total				Discontinued (a)
($ in millions)	June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025		June 30, 2026		December 31, 2025
Assets
Available-for-sale securities (b)	$	14,660	$	15,240	$	(155)	$	7	$	(48)	$	(54)
Finance receivables and loans, net (c)	20,461		27,808		(33)		7		1		1
Liabilities
Long-term debt	$	3,413	$	3,378	$	74	$	79	$	74	$	79

(a)Represents the fair value hedging adjustment on qualifying hedges for which the hedging relationship was discontinued. This represents a subset of the amounts reported in the total hedging adjustment.

(b)These amounts include the amortized cost basis and unallocated basis adjustments of closed portfolios of available-for-sale securities used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2026, and December 31, 2025, the amortized cost basis and unallocated basis adjustments of the closed portfolios used in these hedging relationships was $13.2 billion and $13.7 billion, respectively, of which $12.9 billion and $13.4 billion, respectively, represents the amortized cost basis and unallocated basis adjustments of closed portfolios designated in an active hedge relationship. At June 30, 2026, and December 31, 2025, the total cumulative basis adjustments associated with these hedging relationships was a $146 million liability and a $8 million liability, respectively, of which the portion related to discontinued hedging relationships was a $47 million liability and a $54 million liability, respectively. At June 30, 2026, and December 31, 2025, the notional amounts of the designated hedged items were $10.3 billion and $11.0 billion, with cumulative basis adjustments of a $99 million liability and a $46 million asset, respectively, which would be allocated across the entire remaining closed pool upon dedesignation of the hedge relationship. Refer to Note 6 for a reconciliation of the amortized cost basis and fair value of available-for-sale securities.

(c)These amounts include the carrying value of closed portfolios of loan receivables used to designate hedging relationships in which the hedged item is the stated amount of assets in the closed portfolios anticipated to be outstanding for the designated hedge period. At June 30, 2026, and December 31, 2025, the carrying value of the closed portfolios used in these hedging relationships was $20.5 billion and $27.8 billion, respectively, of which $16.5 billion and $21.8 billion, respectively, represents the carrying value of closed portfolios designated in an active hedge relationship. At June 30, 2026, and December 31, 2025, the total cumulative basis adjustments associated with these hedging relationships was a $33 million liability and a $7 million asset, respectively, of which the portion related to discontinued hedging relationships was a $1 million asset at both June 30, 2026, and December 31, 2025. At June 30, 2026, and December 31, 2025, the notional amounts of the designated hedged items were $9.3 billion and $10.8 billion, respectively, with cumulative basis adjustments of a $34 million liability and a $6 million asset, respectively, which would be allocated across the entire remaining closed pool upon dedesignation of the hedge relationship.

Statement of Income Presentation

The following table summarizes the location and amounts of gains and losses on derivative instruments not designated as accounting hedges reported in our Condensed Consolidated Statement of Comprehensive Income.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Gain (loss) recognized in earnings
Interest rate contracts
Gain on mortgage and automotive loans, net	$	—	$	—	$	—	$	1
Total interest rate contracts	—		—		—		1
Foreign exchange contracts
Other operating expenses	—		(2)		1		(2)
Total foreign exchange contracts	—		(2)		1		(2)
Credit contracts
Other income, net of losses	(1)		—		(2)		—
Total credit contracts	(1)		—		(2)		—
Equity contracts
Other income, net of losses	(4)		—		(4)		—
Total equity contracts	(4)		—		(4)		—
Total loss recognized in earnings	$	(5)	$	(2)	$	(5)	$	(1)

55

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables summarize the location and amounts of gains and losses on derivative instruments designated as qualifying fair value and cash flow hedges reported in our Condensed Consolidated Statement of Comprehensive Income.

	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets
Three months ended June 30, ($ in millions)	2026		2025		2026		2025
(Loss) gain on fair value hedging relationships
Interest rate contracts
Hedged available-for-sale securities	$	—	$	—	$	(92)	$	84
Derivatives designated as hedging instruments on available-for-sale securities	—		—		92		(84)
Hedged fixed-rate consumer automotive loans	(11)		12		—		—
Derivatives designated as hedging instruments on fixed-rate consumer automotive loans	11		(12)		—		—
Total gain on fair value hedging relationships	—		—		—		—
Loss on cash flow hedging relationships
Interest rate contracts
Hedged variable-rate commercial loans
Reclassified from accumulated other comprehensive loss into income	(4)		(8)		—		—
Total loss on cash flow hedging relationships	$	(4)	$	(8)	$	—	$	—
Total amounts presented in the Condensed Consolidated Statement of Comprehensive Income	$	2,741	$	2,624	$	242	$	248

	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets
Six months ended June 30, ($ in millions)	2026		2025		2026		2025
(Loss) gain on fair value hedging relationships
Interest rate contracts
Hedged available-for-sale securities	$	—	$	—	$	(169)	$	214
Derivatives designated as hedging instruments on available-for-sale securities	—		—		169		(214)
Hedged fixed-rate consumer automotive loans	(41)		41		—		—
Derivatives designated as hedging instruments on fixed-rate consumer automotive loans	41		(41)		—		—
Total gain on fair value hedging relationships	—		—		—		—
Loss on cash flow hedging relationships
Interest rate contracts
Hedged variable-rate commercial loans
Reclassified from accumulated other comprehensive loss into income	(9)		(15)		—		—
Total loss on cash flow hedging relationships	$	(9)	$	(15)	$	—	$	—
Total amounts presented in the Condensed Consolidated Statement of Comprehensive Income	$	5,399	$	5,333	$	476	$	478

During the next 12 months, no gains or losses will be reclassified into pretax earnings as no derivatives are currently designated as cash flow hedges.

56

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

The following tables summarize the location and amounts of gains and losses related to interest and amortization on derivative instruments designated as qualifying fair value and cash flow hedges reported in our Condensed Consolidated Statement of Comprehensive Income.

	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets				Interest on long-term debt
Three months ended June 30, ($ in millions)	2026		2025		2026		2025		2026		2025
Gain on fair value hedging relationships
Interest rate contracts
Amortization of deferred unsecured debt basis adjustments	$	—	$	—	$	—	$	—	$	3	$	3
Amortization of deferred basis adjustments of available-for-sale securities	—		—		4		4		—		—
Interest for qualifying accounting hedges of available-for-sale securities	—		—		2		15		—		—
Amortization of deferred loan basis adjustments	1		2		—		—		—		—
Interest for qualifying accounting hedges of consumer automotive loans held for investment	5		15		—		—		—		—
Total gain on fair value hedging relationships	$	6	$	17	$	6	$	19	$	3	$	3

	Interest and fees on finance receivables and loans				Interest and dividends on investment securities and other earning assets				Interest on long-term debt
Six months ended June 30, ($ in millions)	2026		2025		2026		2025		2026		2025
Gain on fair value hedging relationships
Interest rate contracts
Amortization of deferred unsecured debt basis adjustments	$	—	$	—	$	—	$	—	$	5	$	5
Amortization of deferred basis adjustments of available-for-sale securities	—		—		7		9		—		—
Interest for qualifying accounting hedges of available-for-sale securities	—		—		3		32		—		—
Amortization of deferred loan basis adjustments	1		4		—		—		—		—
Interest for qualifying accounting hedges of consumer automotive loans held for investment	10		34		—		—		—		—
Total gain on fair value hedging relationships	$	11	$	38	$	10	$	41	$	5	$	5

The following table summarizes the effect of cash flow hedges on accumulated other comprehensive loss.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Interest rate contracts
Gain recognized in other comprehensive income	$	4	$	7	$	9	$	14

The following table summarizes the effect of net investment hedges on accumulated other comprehensive loss.

	Three months ended June 30,				Six months ended June 30,
($ in millions)	2026		2025		2026		2025
Foreign exchange contracts (a) (b)
Gain (loss) recognized in other comprehensive income	$	4	$	(9)	$	7	$	(9)

(a)There were no amounts excluded from effectiveness testing for the three months and six months ended June 30, 2026, or 2025.

(b)Gains and losses reclassified from accumulated other comprehensive loss are reported as other income, net of losses, in our Condensed Consolidated Statement of Comprehensive Income. There were no amounts reclassified for the three months and six months ended June 30, 2026, or 2025.

57

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

19.    Income Taxes

We recognized total income tax expense from continuing operations of $127 million and $208 million for the three months and six months ended June 30, 2026, respectively, compared to income tax expense of $84 million and $25 million for the same periods in 2025. The increase in income tax expense for the three months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, and an income tax benefit from the revaluation of our deferred tax assets and liabilities of a California tax law enacted during the second quarter of 2025. The increase for the six months ended June 30, 2026, was primarily attributable to the tax effects of an increase in pretax earnings, as well as the tax effects of a loss on investments recognized as a result of our balance sheet repositioning of a portion of our available-for-sale securities during the six months ended June 30, 2025.

As of each reporting date, we consider existing evidence, both positive and negative, that could impact our view with regard to future realization of deferred tax assets. We continue to believe it is more likely than not that the benefit for certain foreign tax credit carryforwards and state net operating loss carryforwards will not be realized. In recognition of this risk, we continue to provide a partial valuation allowance on the deferred tax assets relating to these carryforwards and it is reasonably possible that the valuation allowance may change in the next 12 months.

20.    Fair Value

Fair Value Measurements

For purposes of this disclosure, fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market in an orderly transaction between market participants at the measurement date under current market conditions. Fair value is based on the assumptions we believe market participants would use when pricing an asset or liability. Additionally, entities are required to consider all aspects of nonperformance risk, including the entity’s own credit standing, when measuring the fair value of a liability.

U.S. GAAP specifies a three-level hierarchy that is used when measuring and disclosing fair value. The fair value hierarchy gives the highest priority to quoted prices available in active markets (i.e., observable inputs) and the lowest priority to data lacking transparency (i.e., unobservable inputs). An instrument’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. The following is a description of the three hierarchy levels.

Level 1    Inputs are quoted prices in active markets for identical assets or liabilities at the measurement date. Additionally, the entity must have the ability to access the active market, and the quoted prices cannot be adjusted by the entity.

Level 2    Inputs are other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices in inactive markets for identical or similar assets or liabilities; or inputs that are observable or can be corroborated by observable market data by correlation or other means for substantially the full term of the assets or liabilities.

Level 3    Unobservable inputs are supported by little or no market activity. The unobservable inputs represent management’s best assumptions of how market participants would price the assets or liabilities. Generally, Level 3 assets and liabilities are valued using pricing models, discounted cash flow methodologies, or similar techniques that require significant judgment or estimation.

Judgment is used in estimating inputs to our internal valuation models used to estimate our Level 3 fair value measurements. Level 3 inputs such as interest rate movements, prepayment speeds, credit losses, and discount rates are inherently difficult to estimate. Changes to these inputs can have a significant effect on fair value measurements and amounts that could be realized.

The following are descriptions of the valuation methodologies used to measure material assets and liabilities at fair value and details of the valuation models, key inputs to those models, and significant assumptions utilized.

•Equity securities — We hold various marketable equity securities measured at fair value with changes in fair value recognized in net income. Measurements based on observable market prices are classified as Level 1.

•Available-for-sale securities — We carry our available-for-sale securities at fair value based on external pricing sources. We classify our securities as Level 1 when fair value is determined using quoted prices available for the same instruments trading in active markets. We classify our securities as Level 2 when fair value is determined using prices for similar instruments trading in active markets. We perform pricing validation procedures for our available-for-sale securities.

•Derivative instruments — We enter into a variety of derivative financial instruments as part of our risk-management strategies. Certain of these derivatives are exchange traded, such as equity options. To determine the fair value of these instruments, we utilize the quoted market prices for those particular derivative contracts; therefore, we classified these contracts as Level 1.

We also execute OTC and centrally cleared derivative contracts, such as interest rate swaps, foreign-currency denominated forward contracts, interest rate options, and agency to-be-announced securities. We utilize third-party-developed valuation models that are widely accepted in the market to value these derivative contracts. The specific terms of the contract and market observable

58

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

inputs (such as interest rate forward curves, interpolated volatility assumptions, or equity pricing) are used in the model. We classified these derivative contracts as Level 2 because all significant inputs into these models were market observable.

We also entered into interest rate lock commitments and forward commitments that were executed as part of our mortgage operations, certain of which met the accounting definition of a derivative and therefore were recorded as derivatives on our Condensed Consolidated Balance Sheet. Interest rate lock commitments were valued with unobservable inputs, so they are classified as Level 3. Certain forward commitments are Level 2 and others are Level 3 depending on the valuation model inputs.

We purchased automotive finance receivables and loans from third parties as part of forward flow arrangements and, from time-to-time, executed opportunistic ad-hoc bulk purchases. As part of those agreements, we were required to pay the counterparty at agreed upon measurement dates and determinable amounts if actual credit performance of the acquired loans on the measurement date was better than what was estimated at the time of acquisition. Because these contracts met the accounting definition of a derivative, we recognized a liability at fair value for these deferred purchase price payments. The fair value of these liabilities was determined using a discounted cash flow method. To estimate cash flows, we utilized various significant assumptions, including market observable inputs (for example, forward interest rates) and internally developed inputs (for example, prepayment speeds, delinquency levels, and expected credit losses). These liabilities were valued using internal loss models with unobservable inputs, and were classified as Level 3.

We enter into arrangements with certain counterparties through which we issue credit-linked notes covering a specified pool of loans. These notes contain an embedded derivative, which provides us credit protection against the risk of loss when a specified credit event occurs on the reference pool. The embedded derivatives are valued using both market observable inputs and unobservable inputs, as such they are classified as Level 3.

We are required to consider all aspects of nonperformance risk, including our own credit standing, when measuring fair value of derivative assets and liabilities. We reduce credit risk on the majority of our derivatives by entering into legally enforceable agreements that enable the posting and receiving of collateral associated with the fair value of our derivative positions on an ongoing basis. In the event that we do not enter into legally enforceable agreements that enable the posting and receiving of collateral, we will consider our credit risk in the valuation of derivative liabilities through a DVA and the credit risk of our counterparties in the valuation of derivative assets through a CVA, if warranted. When measuring these valuation adjustments, we generally use credit default swap spreads.

59

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Recurring Fair Value

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
June 30, 2026 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a) (b)	$	775	$	—	$	—	$	775
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,515		—		—		2,515
U.S. States and political subdivisions	—		445		34		479
Foreign government	31		161		—		192
Agency mortgage-backed residential	—		12,789		—		12,789
Mortgage-backed residential	—		188		—		188
Agency mortgage-backed commercial	—		5,137		—		5,137
Asset-backed	—		1		—		1
Corporate debt	—		1,952		—		1,952
Total available-for-sale securities	2,546		20,673		34		23,253
Derivative contracts in a receivable position
Interest rate	—		1		—		1
Foreign exchange	—		8		—		8
Total derivative contracts in a receivable position	—		9		—		9
Total assets	$	3,321	$	20,682	$	34	$	24,037
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Interest rate	$	—	$	1	$	—	$	1
Credit	—		—		2		2
Total derivative contracts in a payable position	—		1		2		3
Total liabilities	$	—	$	1	$	2	$	3

(a)Our direct investment in any one industry did not exceed 14%. When performing the concentration calculation, mutual funds and ETFs are not allocated to any one industry.

(b)Excludes $60 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.

60

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Recurring fair value measurements
December 31, 2025 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Investment securities
Equity securities (a) (b)	$	819	$	—	$	—	$	819
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	2,279		—		—		2,279
U.S. States and political subdivisions	—		517		34		551
Foreign government	31		157		—		188
Agency mortgage-backed residential	—		12,901		—		12,901
Mortgage-backed residential	—		198		—		198
Agency mortgage-backed commercial	—		4,932		—		4,932
Asset-backed	—		12		—		12
Corporate debt	—		1,912		—		1,912
Total available-for-sale securities	2,310		20,629		34		22,973
Total assets	$	3,129	$	20,629	$	34	$	23,792
Liabilities
Accrued expenses and other liabilities
Derivative contracts in a payable position
Foreign exchange	$	—	$	4	$	—	$	4
Total derivative contracts in a payable position	—		4		—		4
Total liabilities	$	—	$	4	$	—	$	4

(a)Our direct investment in any one industry did not exceed 11%. When performing the concentration calculation, mutual funds and ETFs are not allocated to any one industry.

(b)Excludes $57 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.

61

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

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.

	Available-for-sale securities				Loans held-for-sale (a)
($ in millions)	2026		2025		2026		2025
Assets
Fair value at April 1,	$	34	$	35	$	—	$	3
Net realized/unrealized gains
Included in earnings	—		—		—		—
Included in OCI	—		—		—		—
Purchases and originations	1		—		—		1
Sales	—		—		—		(4)
Issuances	—		—		—		—
Settlements	(1)		—		—		—
Transfers into Level 3	—		—		—		—
Transfers out of Level 3	—		—		—		—
Fair value at June 30,	$	34	$	35	$	—	$	—
Net unrealized gains still held at June 30,
Included in earnings	$	—	$	—	$	—	$	—
Included in OCI	—		—		—		—

(a)Consumer mortgage loans carried at fair value due to fair value option elections.

	Derivative liabilities, net of derivative assets (a)
($ in millions)	2026		2025
Liabilities
Fair value at April 1,	$	1	$	4
Net realized/unrealized losses
Included in earnings	1		—
Included in OCI	—		—
Purchases and originations	—		—
Sales	—		—
Issuances	—		—
Settlements	—		—
Transfers into Level 3	—		—
Transfers out of Level 3	—		—
Fair value at June 30,	$	2	$	4
Net unrealized losses still held at June 30,
Included in earnings	$	2	$	—
Included in OCI	—		—

(a)Net realized/unrealized losses are reported as loss on mortgage and automotive loans, net, and other income, net of losses, in our Condensed Consolidated Statement of Comprehensive Income.

62

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

	Available-for-sale securities				Loans held-for-sale (a)
($ in millions)	2026		2025		2026		2025
Assets
Fair value at January 1,	$	34	$	35	$	—	$	5
Net realized/unrealized gains
Included in earnings	—		—		—		—
Included in OCI	—		—		—		—
Purchases and originations	1		—		—		9
Sales	—		—		—		(14)
Issuances	—		—		—		—
Settlements	(1)		—		—		—
Transfers into Level 3	—		—		—		—
Transfers out of Level 3	—		—		—		—
Fair value at June 30,	$	34	$	35	$	—	$	—
Net unrealized gains still held at June 30,
Included in earnings	$	—	$	—	$	—	$	—
Included in OCI	—		—		—		—

(a)Consumer mortgage loans carried at fair value due to fair value option elections.

	Derivative liabilities, net of derivative assets (a)
($ in millions)	2026		2025
Liabilities
Fair value at January 1,	$	—	$	3
Net realized/unrealized losses (gains)
Included in earnings	2		(1)
Included in OCI	—		—
Purchases and originations	—		—
Sales	—		—
Issuances	—		—
Settlements	—		—
Transfers into Level 3	—		—
Transfers out of Level 3 (b)	—		2
Fair value at June 30,	$	2	$	4
Net unrealized losses still held at June 30,
Included in earnings	$	2	$	—
Included in OCI	—		—

(a)Net realized/unrealized losses (gains) are reported as loss on mortgage and automotive loans, net, and other income, net of losses, in our Condensed Consolidated Statement of Comprehensive Income.

(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 the six months ended June 30, 2025. These transfers are deemed to have occurred at the end of the reporting period.

63

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Nonrecurring Fair Value

We may be required to measure certain assets and liabilities at fair value from time to time. These periodic fair value measures typically result from the application of lower-of-cost or fair value accounting or certain impairment measures. These items would constitute nonrecurring fair value measures.

The following tables display assets and liabilities measured at fair value on a nonrecurring basis and still held at June 30, 2026, and December 31, 2025, respectively. The amounts are generally as of the end of each period presented, which approximate the fair value measurements that occurred during each period.

	Nonrecurring fair value measurements								Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
June 30, 2026 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	405	$	405	$	(14)	n/m	(a)
Commercial finance receivables and loans, net (b)
Other	—		—		13		13		(35)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		13		13		(35)		n/m	(a)
Other assets
Nonmarketable equity investments	—		—		5		5		4		n/m	(a)
Repossessed and foreclosed assets (c)	—		—		7		7		(1)		n/m	(a)
Total assets	$	—	$	—	$	430	$	430	$	(46)	n/m

n/m = not meaningful

(a)We consider the applicable valuation reserve, 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 measurements								Lower-of-cost-or-fair-value reserve, valuation reserve, or cumulative adjustments		Total gain (loss) included in earnings
December 31, 2025 ($ in millions)	Level 1		Level 2		Level 3		Total
Assets
Loans held-for-sale, net	$	—	$	—	$	545	$	545	$	(32)	n/m	(a)
Commercial finance receivables and loans, net (b)
Other	—		—		27		27		(97)		n/m	(a)
Total commercial finance receivables and loans, net	—		—		27		27		(97)		n/m	(a)
Other assets
Nonmarketable equity investments	—		9		1		10		4		n/m	(a)
Repossessed and foreclosed assets (c)	—		—		7		7		(1)		n/m	(a)
Total assets	$	—	$	9	$	580	$	589	$	(126)	n/m

n/m = not meaningful

(a)We consider the applicable valuation reserve, 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.

64

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Fair Value Option for Financial Assets

We elected the fair value option for an insignificant amount of conforming mortgage loans held-for-sale and certain non-conforming jumbo mortgage loans held-for-sale to mitigate earnings volatility by better matching the accounting for the assets with the related derivatives. Our intent in electing fair value measurement was to mitigate a divergence between accounting gains or losses and economic exposure for certain assets and liabilities.

Fair Value of Financial Instruments

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. 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 June 30, 2026, and December 31, 2025.

			Estimated fair value
($ in millions)	Carrying value		Level 1		Level 2		Level 3		Total
June 30, 2026
Financial assets
Held-to-maturity securities	$	4,286	$	—	$	4,299	$	—	$	4,299
Loans held-for-sale, net	406		—		—		407		407
Finance receivables and loans, net	140,097		—		—		143,558		143,558
FHLB/FRB stock (a)	847		—		847		—		847
Financial liabilities
Deposit liabilities	$	42,274	$	—	$	—	$	42,338	$	42,338
Short-term borrowings	5,916		—		—		5,841		5,841
Long-term debt	17,053		—		12,392		5,767		18,159
December 31, 2025
Financial assets
Held-to-maturity securities	$	4,371	$	—	$	4,451	$	—	$	4,451
Loans held-for-sale, net	549		—		—		560		560
Finance receivables and loans, net	133,964		—		—		137,579		137,579
FHLB/FRB stock (a)	811		—		811		—		811
Financial liabilities
Deposit liabilities	$	42,310	$	—	$	—	$	42,523	$	42,523
Short-term borrowings	4,695		—		—		4,706		4,706
Long-term debt	17,070		—		12,642		5,707		18,349

(a)Included in other assets on our Condensed Consolidated Balance Sheet.

In addition to the financial instruments presented in the above table, we have various financial instruments for which the carrying value approximates the fair value due to their short-term nature and limited credit risk. These instruments include cash and cash equivalents, restricted cash, cash collateral, accrued interest receivable, accrued interest payable, trade receivables and payables, on-demand deposit liabilities, and other short-term receivables and payables. Included in cash and cash equivalents are highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value due to interest rate, quoted price, or penalty on withdrawal. Classified as Level 1 under the fair value hierarchy, cash and cash equivalents generally expose us to limited credit risk and are so near maturity that they present insignificant risk of changes in value because of changes in interest rates.

21.    Offsetting Assets and Liabilities

Our derivative contracts and repurchase/reverse repurchase transactions are generally supported by qualifying master netting and master repurchase agreements. These agreements are legally enforceable bilateral agreements that (i) create a single legal obligation for all individual transactions covered by the agreement to the nondefaulting entity upon an event of default of the counterparty, including bankruptcy, insolvency, or similar proceeding, and (ii) provide the nondefaulting entity the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to liquidate or set off collateral promptly upon an event of default of the counterparty.

65

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

To further mitigate the risk of counterparty default related to derivative instruments, we maintain collateral agreements with certain counterparties. The agreements require both parties to maintain collateral in the event the fair values of the derivative financial instruments meet established thresholds. In the event that either party defaults on the obligation, the secured party may seize the collateral. Generally, our collateral arrangements are bilateral such that we and the counterparty post collateral for the obligation. Contractual terms provide for standard and customary exchange of collateral based on changes in the market value of the outstanding derivatives. A party posts additional collateral when their obligation rises or removes collateral when it falls, such that the net replacement cost of the nondefaulting party is covered in the event of counterparty default.

In certain instances, as it relates to our derivative instruments, we have the option to report derivative assets and liabilities as well as assets and liabilities associated with cash collateral received or delivered that is governed by a master netting agreement on a net basis as long as certain qualifying criteria are met. Similarly, for our repurchase/reverse repurchase transactions, we have the option to report recognized assets and liabilities subject to a master netting agreement on a net basis if certain qualifying criteria are met. At June 30, 2026, these instruments are reported as gross assets and gross liabilities on our Condensed Consolidated Balance Sheet. For additional information on derivative instruments and hedging activities, refer to Note 18.

The composition of offsetting derivative instruments, financial assets, and financial liabilities was as follows.

	Gross amounts of recognized assets/liabilities		Gross amounts offset on the Condensed Consolidated Balance Sheet		Net amounts of assets/liabilities presented on the Condensed Consolidated Balance Sheet		Gross amounts not offset on the Condensed Consolidated Balance Sheet
($ in millions)							Financial instruments		Collateral (a) (b) (c)		Net amount
June 30, 2026
Assets
Derivative assets	$	9	$	—	$	9	$	—	$	(9)	$	—
Total assets	$	9	$	—	$	9	$	—	$	(9)	$	—
Liabilities
Derivative liabilities (d)	$	3	$	—	$	3	$	—	$	—	$	3
Securities sold under agreements to repurchase (e)	741		—		741		—		(741)		—
Total liabilities	$	744	$	—	$	744	$	—	$	(741)	$	3
December 31, 2025
Assets
Derivative assets	$	—	$	—	$	—	$	—	$	—	$	—
Total assets	$	—	$	—	$	—	$	—	$	—	$	—
Liabilities
Derivative liabilities	$	4	$	—	$	4	$	—	$	(4)	$	—
Securities sold under agreements to repurchase (e)	545		—		545		—		(545)		—
Total liabilities	$	549	$	—	$	549	$	—	$	(549)	$	—

(a)Financial collateral received or pledged shown as a balance based on the sum of all net asset and liability positions between Ally and each individual derivative counterparty.

(b)Amounts disclosed are limited to the financial asset or liability balance and, accordingly, exclude excess collateral received or pledged and noncash collateral received. We do not record noncash collateral received on our Condensed Consolidated Balance Sheet unless certain conditions are met.

(c)Certain agreements grant us the right to sell or pledge the noncash assets we receive as collateral. We have not sold or pledged any of the noncash collateral received under these agreements.

(d)Includes derivative liabilities with no offsetting arrangements of $2 million as of June 30, 2026.

(e)For additional information on securities sold under agreements to repurchase, refer to Note 12.

22.    Segment Information

Operating segments are defined as components of an enterprise that engage in business activity from which revenues are earned and expenses incurred for which discrete financial information is available that is evaluated regularly by our CODM in deciding how to allocate resources and in assessing performance. We define our CODM as the CEO. The CODM uses pretax income to evaluate income generated from segment assets, and to assess a segment’s performance by comparing the results, relative to other segments. Additionally, the budgeting and forecasting process monitors budget versus actual results with emphasis on pretax income, which are also used in assessing the performance of a segment.

66

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

We report our results of operations on a business-line basis through three operating segments: Automotive Finance operations, Insurance operations, and Corporate Finance operations, with the remaining activity reported in Corporate and Other. The operating segments are determined based on the products and services offered, and reflect the manner in which financial information is currently evaluated by our CODM and management. The following is a description of each of our reportable operating segments.

Dealer Financial Services

Dealer Financial Services comprises the following two segments.

•Automotive Finance operations — One of the largest full-service automotive finance operations in the United States providing automotive financing services to consumers, automotive dealers and retailers, companies, and municipalities. Our automotive finance services include providing retail installment sales contracts, loans and operating leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services.

•Insurance operations — A complementary automotive-focused business offering both consumer finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. As part of our focus on offering dealers a broad range of consumer financial and insurance products, we provide VSCs, VMCs, and GAP products. We also underwrite select commercial insurance coverages, which primarily insure dealers’ vehicle inventory.

Corporate Finance operations

Our Corporate Finance operations provide senior secured asset-based and leveraged cash flow loans to primarily U.S.-based middle-market companies, with a focus on businesses owned by private equity sponsors. These loans are typically used for leveraged buyouts, refinancing and recapitalizations, mergers and acquisitions, growth, turnarounds, and debtor-in-possession financings. We also provide, through our Private Credit Finance business, asset managers and other financing sources with partial funding for their direct-lending activities, which is principally leveraged loans. We have a commercial real estate product primarily focused on lending to skilled nursing facilities, senior housing, and medical office buildings. Additionally, we have an energy and infrastructure vertical that finances large-scale energy and infrastructure projects.

Corporate and Other

Corporate and Other primarily consists of centralized corporate treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and the residual impacts of our corporate FTP and treasury ALM activities. Corporate and Other also includes certain equity investments, which primarily consist of FHLB and FRB stock—as well as other equity investments through Ally Ventures, our strategic investment business, and reclassifications and eliminations between the reportable operating segments. Financial results related to Ally Invest, our digital brokerage and advisory offering, Ally Credit Card, the management of our consumer mortgage portfolio, and CRA loans and investments are also included within Corporate and Other. Consumer mortgage originations ceased during the second quarter of 2025, which has and will continue to result in a gradual run-off of our consumer mortgage loan portfolio. Additionally, we closed the sale of Ally Credit Card on April 1, 2025.

We utilize an FTP methodology for the majority of our business operations. The FTP methodology assigns charge rates and credit rates to classes of assets and liabilities on a match funded basis, utilizing a benchmark rate curve plus an assumed credit spread. The assumed credit spread is calculated based on a composite investment grade unsecured yield curve or based on advance rates published by the FHLB for any asset that is eligible to be pledged as collateral to the FHLB. While the baseline FTP components at Ally assume 100% debt funding, the methodology also incorporates a credit on the allocated capital for each business line based on the business line’s allocated cost of funding. For business lines not subject to an FTP funding allocation, the FTP methodology applies a capital charge to the amount of excess equity that the business line holds, relative to its regulatory capital and other adjustments. The net residual impact of the FTP methodology is included within the results of Corporate and Other.

The information presented in our reportable operating segments is based in part on internal allocations and methodologies, including a COH methodology, which involves management judgment. COH methodology is used for measuring the profit and loss of our reportable operating segments. We have various enterprise functions, such as technology, marketing, finance, compliance, internal audit, and risk. Operating expenses from the enterprise functions are either directly allocated to the reportable operating segment, indirectly allocated to the reportable operating segment utilizing the COH methodology, or remain in Corporate and Other. COH methodology considers the reportable operating segment expense base and enterprise function expenses. The reportable operating segment expense base is used to determine the allocation mix. This mix is applied to the allocable expenses in Corporate and Other to determine the COH for the respective reportable operating segment. Allocable enterprise function costs are primarily technology, marketing expenses, and marketing sponsorships. Generally, costs that remain within Corporate and Other that are not allocated to our reportable operating segments include operating costs of deposits, treasury activities, and other corporate activities.

67

Notes to Condensed Consolidated Financial Statements (unaudited)

Ally Financial Inc. • Form 10-Q

Financial information for our reportable operating segments is summarized as follows.

Three months ended June 30, ($ in millions)	Automotive Finance operations		Insurance operations		Corporate Finance operations		Corporate and Other		Consolidated (a)
2026
Net financing revenue and other interest income
Total financing revenue and other interest income	$	2,763	$	51	$	252	$	399	$	3,465
Total interest expense	1,178		13