Ally Financial Inc. 10-Q

Item 1. Financial Statements Condensed Consolidated Statement of Comprehensive Income (unaudited) Ally Financial Inc. • Form 10-Q Three months ended March 31, ($ in millions) 2026 2025 Financing revenue and other interest income Interest and fees on finance receivables and loans $ 2,658 $ 2,709 Interest on loans held-for-sale 9 5 Interest and dividends on investment securities and other earning assets 234 230 Interest on cash and cash equivalents 81 98 Operating leases 392 351 Total financing revenue and other interest income 3,374 3,393 Interest expense Interest on deposits 1,233 1,403 Interest on short-term borrowings 19 1 Interest on long-term debt 265 271 Total interest expense 1,517 1,675 Net depreciation expense on operating lease assets 268 240 Net financing revenue and other interest income 1,589 1,478 Other revenue Insurance premiums and service revenue earned 360 364 (Loss) gain on mortgage and automotive loans, net ( 3 ) 1 Other loss on investments, net ( 21 ) ( 499 ) Other income, net of losses 177 197 Total other revenue 513 63 Total net revenue 2,102 1,541 Provision for credit losses 467 191 Noninterest expense Compensation and benefits expense 491 505 Insurance losses and loss adjustment expenses 121 161 Goodwill impairment — 305 Other operating expenses 623 663 Total noninterest expense 1,235 1,634 Income (loss) from continuing operations before income tax expense (benefit) 400 ( 284 ) Income tax expense (benefit) from continuing operations 81 ( 59 ) Net income (loss) from continuing operations 319 ( 225 ) Net income (loss) $ 319 $ ( 225 ) Other comprehensive income, net of tax 13 662 Comprehensive income $ 332 $ 437 Statement continues on the next page. The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 5 Table of Contents Condensed Consolidated Statement of Comprehensive Income (unaudited) Ally Financial Inc. • Form 10-Q Three months ended March 31, ($ in millions, except per share data; shares in thousands) (a) 2026 2025 Net income (loss) from continuing operations attributable to common shareholders $ 291 $ ( 253 ) Net income (loss) attributable to common shareholders $ 291 $ ( 253 ) Basic weighted-average common shares outstanding (b) 310,992 309,006 Diluted weighted-average common shares outstanding (b) (c) 313,219 309,006 Basic earnings per common share Net income (loss) from continuing operations $ 0.94 $ ( 0.82 ) Net income (loss) $ 0.94 $ ( 0.82 ) Diluted earnings per common share Net income (loss) from continuing operations $ 0.93 $ ( 0.82 ) Net income (loss) $ 0.93 $ ( 0.82 ) Cash dividends declared per common share $ 0.30 $ 0.30 (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. (c) Due to the antidilutive effect of the net loss from continuing operations for the three months ended March 31, 2025, basic weighted-average common shares outstanding was used to calculate basic and diluted earnings per share. During the three months ended March 31, 2025, there were 2.7 million in share-based awards excluded because their inclusion would have been antidilutive. 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 Table of Contents Condensed Consolidated Balance Sheet (unaudited) Ally Financial Inc. • Form 10-Q ($ in millions, except share data) March 31, 2026 December 31, 2025 Assets Cash and cash equivalents Noninterest-bearing $ 380 $ 405 Interest-bearing 9,138 9,625 Total cash and cash equivalents 9,518 10,030 Equity securities 863 876 Available-for-sale securities (amortized cost basis of $ 25,974 and $ 25,825 ) 23,038 22,973 Held-to-maturity securities (fair value of $ 4,387 and $ 4,451 ) 4,337 4,371 Loans held-for-sale, net 337 549 Finance receivables and loans, net Finance receivables and loans, net of unearned income 139,890 137,454 Allowance for loan losses ( 3,540 ) ( 3,490 ) Total finance receivables and loans, net 136,350 133,964 Investment in operating leases, net 8,699 8,772 Premiums receivable and other insurance assets 2,817 2,844 Other assets 11,310 11,623 Total assets $ 197,269 $ 196,002 Liabilities Deposit liabilities Noninterest-bearing $ 137 $ 125 Interest-bearing 153,015 151,524 Total deposit liabilities 153,152 151,649 Short-term borrowings 4,126 4,695 Long-term debt 17,349 17,070 Interest payable 852 729 Unearned insurance premiums and service revenue 3,665 3,656 Accrued expenses and other liabilities 2,516 2,705 Total liabilities 181,660 180,504 Contingencies (refer to Note 23) Equity Common stock and paid-in capital ($ 0.01 par value, shares authorized 1,100,000,000 ; issued 522,896,204 and 520,355,804 ; and outstanding 307,407,671 and 308,492,929 ) 22,346 22,295 Preferred stock 2,324 2,324 Retained earnings 827 633 Accumulated other comprehensive loss ( 2,773 ) ( 2,786 ) Treasury stock, at cost ( 215,488,533 and 211,862,875 shares) ( 7,115 ) ( 6,968 ) Total equity 15,609 15,498 Total liabilities and equity $ 197,269 $ 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 Table of Contents 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) March 31, 2026 December 31, 2025 Assets Finance receivables and loans, net Consumer automotive $ 3,542 $ 3,096 Allowance for loan losses ( 133 ) ( 116 ) Total finance receivables and loans, net 3,409 2,980 Other assets 344 260 Total assets $ 3,753 $ 3,240 Liabilities Long-term debt $ 2,056 $ 1,479 Accrued expenses and other liabilities 4 3 Total liabilities $ 2,060 $ 1,482 The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 8 Table of Contents Condensed Consolidated Statement of Changes in Equity (unaudited) Ally Financial Inc. • Form 10-Q ($ 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 loss ( 225 ) ( 225 ) Preferred stock dividends — Series B ( 16 ) ( 16 ) Preferred stock dividends — Series C ( 12 ) ( 12 ) Share-based compensation 49 49 Other comprehensive income 662 662 Common stock repurchases ( 34 ) ( 34 ) Common stock dividends ($ 0.30 per share) ( 95 ) ( 95 ) Balance at March 31, 2025 $ 22,191 $ 2,324 $ ( 78 ) $ ( 3,262 ) $ ( 6,943 ) $ 14,232 Balance at January 1, 2026 $ 22,295 $ 2,324 $ 633 $ ( 2,786 ) $ ( 6,968 ) $ 15,498 Net income 319 319 Preferred stock dividends — Series B ( 16 ) ( 16 ) Preferred stock dividends — Series C ( 12 ) ( 12 ) Share-based compensation 51 51 Other comprehensive income 13 13 Common stock repurchases ( 147 ) ( 147 ) Common stock dividends ($ 0.30 per share) ( 97 ) ( 97 ) Balance at March 31, 2026 $ 22,346 $ 2,324 $ 827 $ ( 2,773 ) $ ( 7,115 ) $ 15,609 The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 9 Table of Contents Condensed Consolidated Statement of Cash Flows (unaudited) Ally Financial Inc. • Form 10-Q Three months ended March 31, ($ in millions) 2026 2025 Operating activities Net income (loss) $ 319 $ ( 225 ) Reconciliation of net income (loss) to net cash provided by operating activities Depreciation and amortization 378 361 Goodwill impairment — 305 Provision for credit losses 467 191 Loss (gain) on mortgage and automotive loans, net 3 ( 1 ) Other loss on investments, net 21 499 Originations and purchases of loans held-for-sale ( 626 ) ( 490 ) Proceeds from sales and repayments of loans held-for-sale 585 543 Net change in Deferred income taxes 22 ( 178 ) Interest payable 123 64 Other assets 71 ( 128 ) Other liabilities ( 80 ) ( 137 ) Other, net 88 136 Net cash provided by operating activities 1,371 940 Investing activities Purchases of equity securities ( 331 ) ( 196 ) Proceeds from sales of equity securities 333 122 Purchases of available-for-sale securities ( 781 ) ( 3,649 ) Proceeds from sales of available-for-sale securities 125 2,669 Proceeds from repayments of available-for-sale securities 506 440 Purchases of held-to-maturity securities ( 44 ) ( 248 ) Proceeds from repayments of held-to-maturity securities 117 109 Purchases of finance receivables and loans held-for-investment ( 1,754 ) ( 843 ) Proceeds from sales of finance receivables and loans initially held-for-investment 254 5 Originations and repayments of finance receivables and loans initially held-for-investment and other, net ( 1,137 ) 537 Purchases of operating lease assets ( 705 ) ( 819 ) Disposals of operating lease assets 474 681 Net change in nonmarketable equity investments 26 2 Other, net ( 126 ) ( 151 ) Net cash used in investing activities ( 3,043 ) ( 1,341 ) Statement continues on the next page. The Notes to the Condensed Consolidated Financial Statements (unaudited) are an integral part of these statements. 10 Table of Contents Condensed Consolidated Statement of Cash Flows (unaudited) Ally Financial Inc. • Form 10-Q Three months ended March 31, ($ in millions) 2026 2025 Financing activities Net change in short-term borrowings ( 569 ) 1,714 Net increase (decrease) in deposits 1,684 ( 64 ) Proceeds from issuance of long-term debt 1,081 24 Repayments of long-term debt ( 824 ) ( 1,074 ) Repurchases of common stock ( 147 ) ( 34 ) Common stock dividends paid ( 102 ) ( 100 ) Preferred stock dividends paid ( 28 ) ( 28 ) Net cash provided by financing activities 1,095 438 Effect of exchange-rate changes on cash and cash equivalents and restricted cash ( 3 ) — Net (decrease) increase in cash and cash equivalents and restricted cash ( 580 ) 37 Cash and cash equivalents and restricted cash at beginning of year 11,809 11,380 Cash and cash equivalents and restricted cash at March 31, $ 11,229 $ 11,417 Supplemental disclosures Cash paid for Interest $ 1,370 $ 1,587 Income taxes 12 13 Noncash items Finance receivables and loans held-for-investment transferred to loans held-for-sale 7 2,321 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. March 31, ($ in millions) 2026 2025 Cash and cash equivalents on the Condensed Consolidated Balance Sheet $ 9,518 $ 10,409 Restricted cash and cash equivalents and restricted cash held for securitization trusts included in other assets on the Condensed Consolidated Balance Sheet (a) 1,711 1,008 Total cash and cash equivalents and restricted cash in the Condensed Consolidated Statement of Cash Flows $ 11,229 $ 11,417 (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. 11 Table of Contents 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 with the nation’s largest all-digital bank and an industry-leading automotive financing and insurance business, driven by a mission to “Do It Right” and be a relentless ally for all stakeholders. The Company serves customers with deposits and securities brokerage and investment advisory services as well as automotive financing and insurance offerings. The Company also includes a seasoned corporate finance business that offers capital for 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 March 31, 2026, and for the three months ended March 31, 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. 12 Table of Contents 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 are currently evaluating the impact of these amendments. 13 Table of Contents 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 table presents 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 March 31, ($ 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) $ — $ 242 $ — $ — $ 242 Remarketing fee income 32 — — — 32 Brokerage commissions and other revenue — — — 19 19 Banking fees and interchange income — — — 5 5 Brokered/agent commissions — 2 — — 2 Other 6 — — 1 7 Total revenue from contracts with customers 38 244 — 25 307 All other revenue 67 98 35 6 206 Total other revenue (d) $ 105 $ 342 $ 35 $ 31 $ 513 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 (e) — — — 19 19 Brokered/agent commissions — 5 — — 5 Other 5 1 — 1 7 Total revenue from contracts with customers 36 247 — 40 323 All other revenue 61 117 29 ( 467 ) ( 260 ) Total other revenue (d) $ 97 $ 364 $ 29 $ ( 427 ) $ 63 (a) We had opening balances of $ 3.0 billion in unearned revenue associated with outstanding contracts at both January 1, 2026, and 2025, and $ 239 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 March 31, 2026, and 2025, respectively. (b) At March 31, 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 $ 653 million during the remainder of 2026, $ 751 million in 2027, $ 599 million in 2028, $ 440 million in 2029, and $ 544 million thereafter. At March 31, 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 March 31, 2026, and December 31, 2025, and recognized $ 138 million of expense during the three months ended March 31, 2026. We had deferred insurance assets of $ 1.8 billion at both March 31, 2025, and December 31, 2024, and recognized $ 141 million of expense during the three months ended March 31, 2025. (d) Represents a component of total net revenue. Refer to Note 22 for further information on our reportable operating segments. (e) Interchange income is reported net of customer rewards related to Ally Credit Card. Customer rewards expense was $ 6 million for the three months ended March 31, 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 $ 10 million and $ 19 million for the three months ended March 31, 2026, and 2025, respectively. 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. 14 Table of Contents 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 March 31, ($ in millions) 2026 2025 Late charges and other administrative fees $ 36 $ 51 Remarketing fees 32 31 Income from equity-method investments (a) 17 26 Other, net 92 89 Total other income, net of losses (b) $ 177 $ 197 (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 122 161 Prior years (a) ( 1 ) — Total net insurance losses and loss adjustment expenses incurred 121 161 Net insurance losses and loss adjustment expenses paid or payable related to: Current year ( 50 ) ( 44 ) Prior years ( 55 ) ( 54 ) Total net insurance losses and loss adjustment expenses paid or payable ( 105 ) ( 98 ) Net reserves for insurance losses and loss adjustment expenses at March 31, 180 192 Plus: Reinsurance recoverable (b) 71 76 Total gross reserves for insurance losses and loss adjustment expenses at March 31, (c) $ 251 $ 268 (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. 15 Table of Contents 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 March 31, ($ in millions) 2026 2025 Insurance commissions $ 152 $ 161 Technology and communications 101 103 Advertising and marketing 60 61 Property and equipment depreciation 59 63 Lease and loan administration 45 46 Regulatory and licensing fees 36 44 Professional services 35 31 Vehicle remarketing and repossession 34 33 Amortization of intangible assets — 3 Other 101 118 Total other operating expenses (a) $ 623 $ 663 (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. 16 Table of Contents 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. March 31, 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 $ 2,444 $ 8 $ ( 55 ) $ 2,397 $ 2,308 $ 22 $ ( 51 ) $ 2,279 U.S. States and political subdivisions 593 — ( 76 ) 517 624 1 ( 74 ) 551 Foreign government 202 1 ( 4 ) 199 191 1 ( 4 ) 188 Agency mortgage-backed residential (a) 14,787 16 ( 2,108 ) 12,695 14,966 19 ( 2,084 ) 12,901 Mortgage-backed residential 226 — ( 33 ) 193 230 — ( 32 ) 198 Agency mortgage-backed commercial (a) 5,729 8 ( 630 ) 5,107 5,540 14 ( 622 ) 4,932 Asset-backed 2 — — 2 12 — — 12 Corporate debt 1,991 8 ( 71 ) 1,928 1,954 19 ( 61 ) 1,912 Total available-for-sale securities (b) (c) (d) (e) (f) $ 25,974 $ 41 $ ( 2,977 ) $ 23,038 $ 25,825 $ 76 $ ( 2,928 ) $ 22,973 Held-to-maturity securities Debt securities Agency mortgage-backed residential $ 1,337 $ 3 $ ( 157 ) $ 1,183 $ 1,303 $ 8 $ ( 157 ) $ 1,154 Mortgage-backed residential 2,957 203 — 3,160 3,018 228 — 3,246 Asset-backed retained notes 43 1 — 44 50 1 — 51 Total held-to-maturity securities (d) (f) (g) $ 4,337 $ 207 $ ( 157 ) $ 4,387 $ 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 $ 31 million liability and a $ 13 million asset for agency mortgage-backed residential securities at March 31, 2026, and December 31, 2025, respectively, and a $ 10 million asset and a $ 33 million asset for agency mortgage-backed commercial securities at March 31, 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 March 31, 2026, and December 31, 2025. (d) Investment securities with a fair value of $ 3.5 billion and $ 3.7 billion were pledged as collateral at March 31, 2026, and December 31, 2025, respectively. This primarily included $ 2.7 billion pledged to secure advances from the FHLB at both March 31, 2026, and December 31, 2025. 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 $ 866 million and $ 932 million of the underlying available-for-sale securities at March 31, 2026, and December 31, 2025, respectively. (e) Totals do not include accrued interest receivable, which was $ 86 million and $ 87 million at March 31, 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 March 31, 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 March 31, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet. 17 Table of Contents 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 March 31, 2026 Fair value of available-for-sale securities (a) U.S. Treasury and federal agencies $ 2,397 3.5 % $ 68 1.5 % $ 2,050 3.7 % $ 279 2.3 % $ — — % U.S. States and political subdivisions 517 3.4 39 5.1 54 3.7 53 4.5 371 3.1 Foreign government 199 2.8 14 1.9 92 2.3 93 3.4 — — Agency mortgage-backed residential (b) 12,695 2.9 — — 1 2.8 — — 12,694 2.9 Mortgage-backed residential 193 2.7 — — — — — — 193 2.7 Agency mortgage-backed commercial (b) 5,107 2.7 144 3.1 1,647 3.3 2,491 2.4 825 2.3 Asset-backed 2 1.5 1 1.5 1 1.3 — — — — Corporate debt 1,928 3.6 214 2.6 892 2.5 700 4.9 122 5.4 Total available-for-sale securities $ 23,038 3.0 $ 480 2.8 $ 4,737 3.3 $ 3,616 3.0 $ 14,205 2.9 Amortized cost basis of available-for-sale securities $ 25,974 $ 483 $ 4,871 $ 4,046 $ 16,574 Amortized cost basis of held-to-maturity securities (c) Agency mortgage-backed residential $ 1,337 3.5 % $ — — % $ — — % $ — — % $ 1,337 3.5 % Mortgage-backed residential 2,957 2.8 — — 4 2.9 1 5.3 2,952 2.8 Asset-backed retained notes 43 5.4 — — 30 5.3 13 5.7 — — Total held-to-maturity securities $ 4,337 3.0 $ — — $ 34 5.0 $ 14 5.7 $ 4,289 3.0 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 $ 31 million liability and a $ 13 million asset for agency mortgage-backed residential securities at March 31, 2026, and December 31, 2025, respectively, and a $ 10 million asset and a $ 33 million asset for agency mortgage-backed commercial securities at March 31, 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 $ 444 million and $ 107 million at March 31, 2026, and December 31, 2025, respectively, and were composed primarily of money-market funds. 18 Table of Contents 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 March 31, ($ in millions) 2026 2025 Taxable interest $ 214 $ 210 Taxable dividends 4 5 Interest and dividends exempt from U.S. federal income tax 5 6 Interest and dividends on investment securities $ 223 $ 221 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 March 31, ($ in millions) 2026 2025 Available-for-sale securities Gross realized gains $ 3 $ — Gross realized losses (a) — ( 495 ) Net realized gain (loss) on available-for-sale securities 3 ( 495 ) Net realized gain on equity securities 35 8 Net unrealized loss on equity securities ( 59 ) ( 12 ) Other loss on investments, net $ ( 21 ) $ ( 499 ) (a) Includes losses reclassified from accumulated other comprehensive loss related to the balance sheet repositioning of our available-for-sale securities portfolio during the three months ended March 31, 2025. The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of March 31, 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 March 31, 2026, and December 31, 2025. We have not recorded any interest income reversals on our held-to-maturity securities during the three months ended March 31, 2026, or March 31, 2025 . ($ in millions) AAA AA A BBB Total (a) March 31, 2026 Debt securities Agency mortgage-backed residential $ — $ 1,337 $ — $ — $ 1,337 Mortgage-backed residential 2,893 63 1 — 2,957 Asset-backed retained notes 38 3 1 1 43 Total held-to-maturity securities $ 2,931 $ 1,403 $ 2 $ 1 $ 4,337 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. 19 Table of Contents 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 March 31, 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 three months ended March 31, 2026, or March 31, 2025. March 31, 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 $ 267 $ ( 1 ) $ 572 $ ( 54 ) $ — $ — $ 609 $ ( 51 ) U.S. States and political subdivisions 47 ( 1 ) 398 ( 75 ) 24 — 429 ( 74 ) Foreign government 91 ( 1 ) 67 ( 3 ) 51 ( 1 ) 72 ( 3 ) Agency mortgage-backed residential (a) 552 ( 7 ) 9,938 ( 2,101 ) 120 — 10,310 ( 2,084 ) Mortgage-backed residential — — 193 ( 33 ) — — 198 ( 32 ) Agency mortgage-backed commercial (a) 678 ( 6 ) 3,548 ( 624 ) 299 ( 1 ) 3,629 ( 621 ) Asset-backed — — 2 — — — 12 — Corporate debt 423 ( 7 ) 1,030 ( 64 ) 86 ( 1 ) 1,123 ( 60 ) Total available-for-sale securities $ 2,058 $ ( 23 ) $ 15,748 $ ( 2,954 ) $ 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 March 31, 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 three months ended March 31, 2026, and March 31, 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 March 31, 2026, or December 31, 2025. 20 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 7. Finance Receivables and Loans, Net The composition of finance receivables and loans reported at amortized cost basis was as follows. ($ in millions) March 31, 2026 December 31, 2025 Consumer automotive (a) $ 86,662 $ 85,568 Consumer mortgage (b) 15,311 15,572 Total consumer 101,973 101,140 Commercial Commercial and industrial Automotive 18,972 18,339 Other 11,093 10,309 Commercial real estate 7,852 7,666 Total commercial 37,917 36,314 Total finance receivables and loans (c) (d) $ 139,890 $ 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 March 31, 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 March 31, 2026, and December 31, 2025, respectively. (d) Totals do not include accrued interest receivable, which was $ 790 million and $ 800 million at March 31, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet. The following tables present an analysis of the activity in the allowance for loan losses on finance receivables and loans for the three months ended March 31, 2026, and 2025, respectively. Three months ended March 31, 2026 ($ in millions) Consumer automotive Consumer mortgage Commercial Total Allowance at January 1, 2026 $ 3,208 $ 12 $ 270 $ 3,490 Charge-offs (a) ( 671 ) — ( 1 ) ( 672 ) Recoveries 247 8 — 255 Net charge-offs ( 424 ) 8 ( 1 ) ( 417 ) Provision for credit losses 467 ( 9 ) 9 467 Other ( 1 ) — 1 — Allowance at March 31, 2026 $ 3,250 $ 11 $ 279 $ 3,540 (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 March 31, 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) ( 676 ) — ( 68 ) ( 1 ) ( 745 ) Recoveries 231 1 5 1 238 Net charge-offs ( 445 ) 1 ( 63 ) — ( 507 ) Provision for credit losses 418 — ( 257 ) 30 191 Other 1 ( 2 ) 1 — — Allowance at March 31, 2025 $ 3,144 $ 18 $ — $ 236 $ 3,398 (a) Consists of Credit Card. 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. (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. 21 Table of Contents 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 March 31, ($ in millions) 2026 2025 Consumer other (a) $ — $ 2,248 Commercial 7 73 Total sales and transfers $ 7 $ 2,321 (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 March 31, ($ in millions) 2026 2025 Consumer automotive $ 1,622 $ 749 Consumer mortgage — 8 Commercial 2 — Total purchases of finance receivables and loans $ 1,624 $ 757 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 March 31, 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. March 31, 2026 ($ in millions) Nonaccrual status at Jan. 1, 2026 Nonaccrual status Nonaccrual with no allowance (a) Consumer automotive $ 1,155 $ 1,128 $ 410 Consumer mortgage 62 62 40 Total consumer 1,217 1,190 450 Commercial Commercial and industrial Automotive 15 3 3 Other 124 112 3 Commercial real estate 10 1 1 Total commercial 149 116 7 Total finance receivables and loans (b) $ 1,366 $ 1,306 $ 457 (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 $ 13 million for the three months ended March 31, 2026. 22 Table of Contents 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 Nonaccrual with no allowance (a) Consumer automotive $ 1,231 $ 1,155 $ 416 Consumer mortgage 54 62 44 Consumer other (b) 90 — — Total consumer 1,375 1,217 460 Commercial Commercial and industrial Automotive 15 15 15 Other (c) 94 124 — Commercial real estate 2 10 10 Total commercial 111 149 25 Total finance receivables and loans (d) $ 1,486 $ 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 $ 4 million for the three months ended March 31, 2025. 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 March 31, 2026 ($ in millions) 2026 2025 2024 2023 2022 2021 and prior Revolving loans Total Consumer automotive Current $ 10,303 $ 30,792 $ 17,844 $ 11,317 $ 7,695 $ 4,750 $ — $ — $ 82,701 30–59 days past due 24 563 567 529 477 356 — — 2,516 60–89 days past due 1 200 236 236 226 153 — — 1,052 90 or more days past due — 83 90 89 86 69 — — 417 Total consumer automotive (a) 10,328 31,638 18,737 12,171 8,484 5,328 — — 86,686 Consumer mortgage Current — — 12 26 1,670 13,506 — 7 15,221 30–59 days past due — — — — 3 35 — — 38 60–89 days past due — — — 1 1 8 — — 10 90 or more days past due — — — 1 5 34 — 2 42 Total consumer mortgage — — 12 28 1,679 13,583 — 9 15,311 Total consumer $ 10,328 $ 31,638 $ 18,749 $ 12,199 $ 10,163 $ 18,911 $ — $ 9 $ 101,997 (a) Certain consumer automotive loans are included in fair value hedging relationships. The amortized cost basis excludes a liability of $ 24 million related to basis adjustments for loans in closed portfolios with active hedges under the portfolio layer method at March 31, 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. 23 Table of Contents 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. 24 Table of Contents 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 March 31, 2026 ($ in millions) 2026 2025 2024 2023 2022 2021 and prior Revolving loans Total Commercial Commercial and industrial Automotive Pass $ 630 $ 923 $ 340 $ 243 $ 254 $ 167 $ 14,816 $ — $ 17,373 Special mention — 5 — 15 9 5 1,509 — 1,543 Substandard — — 1 — 1 — 54 — 56 Total automotive 630 928 341 258 264 172 16,379 — 18,972 Other Pass 256 684 596 193 235 368 7,124 228 9,684 Special mention — 69 71 — 262 368 390 6 1,166 Substandard — — — — — 80 51 — 131 Doubtful — — — — — 93 19 — 112 Total other 256 753 667 193 497 909 7,584 234 11,093 Commercial real estate Pass 389 2,079 998 754 1,032 2,166 66 69 7,553 Special mention 7 22 45 35 65 105 — — 279 Substandard — — — 2 15 1 — — 18 Doubtful — — — 2 — — — — 2 Total commercial real estate 396 2,101 1,043 793 1,112 2,272 66 69 7,852 Total commercial $ 1,282 $ 3,782 $ 2,051 $ 1,244 $ 1,873 $ 3,353 $ 24,029 $ 303 $ 37,917 25 Table of Contents 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 March 31, 2026 Commercial Commercial and industrial Automotive $ — $ — $ — $ — $ 18,972 $ 18,972 Other — — 71 71 11,022 11,093 Commercial real estate — — 2 2 7,850 7,852 Total commercial $ — $ — $ 73 $ 73 $ 37,844 $ 37,917 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 26 Table of Contents 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 three months ended March 31, 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 March 31, 2026 ($ in millions) 2026 2025 2024 2023 2022 2021 and prior Revolving loans Total Consumer automotive $ 1 $ 147 $ 162 $ 158 $ 125 $ 78 $ — $ — $ 671 Total consumer 1 147 162 158 125 78 — — 671 Commercial Commercial and industrial Other — — — — — 1 — — 1 Total commercial — — — — — 1 — — 1 Total finance receivables and loans $ 1 $ 147 $ 162 $ 158 $ 125 $ 79 $ — $ — $ 672 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. 27 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 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 ended March 31, 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 March 31, 2026, and December 31, 2025, there were $ 9 million and $ 8 million of consumer mortgage finance receivables and loans in a trial modification program, respectively. Payment extensions Three months ended March 31, 2026 ($ in millions) Payment deferrals Contractual maturity extensions Principal forgiveness Interest rate concessions Combination Total (a) Consumer automotive $ — $ 199 $ 3 $ — $ — $ 202 Consumer mortgage — 1 — — 2 3 Total consumer — 200 3 — 2 205 Commercial Commercial and industrial Automotive 7 — — — — 7 Other — 54 — — — 54 Total commercial 7 54 — — — 61 Total finance receivables and loans $ 7 $ 254 $ 3 $ — $ 2 $ 266 (a) Represents 0.2 % of total finance receivables and loans outstanding as of March 31, 2026. Payment extensions Three months ended March 31, 2025 ($ in millions) Payment deferrals Contractual maturity extensions Principal forgiveness Interest rate concessions Combination Total (a) Consumer automotive $ — $ 105 $ 1 $ — $ — $ 106 Consumer mortgage — — — — 1 1 Total consumer — 105 1 — 1 107 Commercial Commercial and industrial Automotive 2 — — — — 2 Other 4 22 — — — 26 Total commercial 6 22 — — — 28 Total finance receivables and loans $ 6 $ 127 $ 1 $ — $ 1 $ 135 (a) Represents 0.1 % of total finance receivables and loans outstanding as of March 31, 2025. 28 Table of Contents 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 ended March 31, 2026, and 2025, respectively. Payment extensions (a) Principal forgiveness Interest rate concessions (a) Combination (a) (b) (c) Three months ended March 31, 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 204 — — — 291 402 3.8 2.0 Commercial Commercial and industrial Automotive 7 $ — — % — % — — — % — % Other 20 — — — — — — — Total commercial 18 $ — — — — — — — (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) Three months ended March 31, 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 29 $ — — % — % — — — % — % Consumer mortgage — — — — 291 480 4.5 2.8 Commercial Commercial and industrial Automotive 7 $ — — % — % — — — % — % Other 16 — — — — — — — Total commercial 15 $ — — — — — — — (a) Calculated using a weighted-average balance for each portfolio class. (b) Term is presented in number of 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 March 31, 2026, and 2025, respectively. March 31, 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 $ 585 $ 97 $ 33 $ 9 $ 724 Principal forgiveness — — 1 8 9 Combination 1 — — — 1 Total consumer automotive 586 97 34 17 734 Consumer mortgage Payment deferrals — 1 — — 1 Contractual maturity extensions 2 1 — — 3 Interest rate concessions — — — 1 1 Combination 6 — — — 6 Total consumer mortgage 8 2 — 1 11 Total consumer $ 594 $ 99 $ 34 $ 18 $ 745 29 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q March 31, 2026 ($ in millions) Pass Special mention Substandard Doubtful Total Commercial and industrial Automotive Payment deferrals $ — $ — $ 7 $ — $ 7 Interest rate concessions — — 13 — 13 Total automotive — — 20 — 20 Other Payment deferrals 35 — — — 35 Contractual maturity extensions 74 71 19 — 164 Total other 109 71 19 — 199 Commercial real estate Payment deferrals — 3 — — 3 Interest rate concessions — — 7 — 7 Total commercial real estate — 3 7 — 10 Total commercial $ 109 $ 74 $ 46 $ — $ 229 March 31, 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 $ 328 $ 62 $ 23 $ 7 $ 420 Principal forgiveness — — — 5 5 Combination 2 — — — 2 Total consumer automotive 330 62 23 12 427 Consumer mortgage Contractual maturity extensions 1 — — 1 2 Combination 1 — — — 1 Total consumer mortgage 2 — — 1 3 Total consumer $ 332 $ 62 $ 23 $ 13 $ 430 March 31, 2025 ($ in millions) Pass Special mention Substandard Doubtful Total Commercial and industrial Automotive Payment deferrals $ — $ — $ 4 $ — $ 4 Combination — — — 3 3 Total automotive — — 4 3 7 Other Payment deferrals — — 4 — 4 Contractual maturity extensions 25 — 22 — 47 Combination — — 14 — 14 Total other 25 — 40 — 65 Commercial real estate Payment deferrals — — — 1 1 Total commercial real estate — — — 1 1 Total commercial $ 25 $ — $ 44 $ 4 $ 73 As of March 31, 2026, 2,580 consumer automotive loans with a total amortized cost basis of $ 60 million and 1 consumer mortgage loan with a total amortized cost basis of $ 1 million redefaulted within 12 months of modification, whereas 1,858 consumer automotive loans with a total amortized cost basis of $ 46 million redefaulted within 12 months of modification as of March 31, 2025. 30 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 8. Leasing Ally as the Lessee We have operating leases for certain of our corporate facilities, which have remaining lease terms of 1 month 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 both the three months ended March 31, 2026, and March 31, 2025, we paid $ 9 million in cash for amounts included in the measurement of lease liabilities. These amounts are included in net cash provided by operating activities in our Condensed Consolidated Statement of Cash Flows. During the three months ended March 31, 2026, and March 31, 2025, we obtained $ 7 million and $ 5 million, respectively, of ROU assets in exchange for new lease liabilities. As of March 31, 2026, the weighted-average remaining lease term of our operating lease portfolio was 5 years, and the weighted-average discount rate was 3.68 %, compared to 5 years and 3.66 % as of December 31, 2025. The following table presents future minimum rental payments we are required to make under operating leases that have commenced as of March 31, 2026, and that have noncancelable lease terms expiring after March 31, 2026. ($ in millions) 2026 $ 29 2027 33 2028 28 2029 10 2030 9 2031 and thereafter 24 Total undiscounted cash flows 133 Difference between undiscounted cash flows and discounted cash flows ( 12 ) Total lease liability $ 121 The following table details the components of total net operating lease expense. Three months ended March 31, ($ in millions) 2026 2025 Operating lease expense $ 8 $ 8 Variable lease expense 2 1 Total lease expense, net (a) $ 10 $ 9 (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 31 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 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 both March 31, 2026, and December 31, 2025, consumer operating leases with a carrying value, net of accumulated depreciation, of $ 3.4 billion 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) March 31, 2026 December 31, 2025 Vehicles $ 10,131 $ 10,163 Accumulated depreciation ( 1,432 ) ( 1,391 ) Investment in operating leases, net $ 8,699 $ 8,772 The following table presents future minimum rental payments we have the right to receive under operating leases with noncancelable lease terms expiring after March 31, 2026. ($ in millions) 2026 $ 1,118 2027 1,041 2028 460 2029 75 2030 3 Total lease payments from operating leases $ 2,697 We recognized operating lease revenue of $ 392 million and $ 351 million, for the three months ended March 31, 2026, and 2025, respectively. 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 March 31, ($ in millions) 2026 2025 Depreciation expense on operating lease assets (excluding remarketing losses) (a) $ 258 $ 221 Remarketing losses, net 10 19 Net depreciation expense on operating lease assets $ 268 $ 240 (a) Includes variable lease payments related to excess mileage and excessive wear and tear on vehicles of $ 5 million and $ 6 million during the three months ended March 31, 2026, and 2025, respectively. 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 $ 375 million, and $ 376 million as of March 31, 2026, and December 31, 2025, respectively. Interest income on finance lease receivables was $ 8 million and $ 11 million for the three months ended March 31, 2026, and 2025, respectively, and is included in interest and fees on finance receivables and loans in our Condensed Consolidated Statement of Comprehensive Income. 32 Table of Contents 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 finance leases with noncancelable lease terms expiring after March 31, 2026. ($ in millions) 2026 $ 102 2027 123 2028 95 2029 66 2030 38 2031 and thereafter 15 Total undiscounted cash flows 439 Difference between undiscounted cash flows and discounted cash flows ( 64 ) Present value of lease payments recorded as lease receivable $ 375 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 expected residual returns of the entity. 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 loss on sales of financial assets into nonconsolidated VIEs was $ 3 million during the three months ended March 31, 2026. We had no pretax gains or losses during the three months ended March 31, 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. 33 Table of Contents 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 variable interest entities, 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 March 31, 2026 On‑balance sheet variable interest entities Consumer automotive $ 12,625 (b) $ 2,191 (c) $ — $ — Off-balance sheet variable interest entities Consumer automotive (d) 46 (e) — 3,379 3,425 (f) Commercial other 2,778 (g) 736 (h) — 3,539 (i) Total $ 15,449 $ 2,927 $ 3,379 $ 6,964 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 $ 8.9 billion of assets that were not encumbered by VIE beneficial interests held by third parties at both March 31, 2026, and December 31, 2025. Ally or consolidated affiliates hold the interests in these assets. (c) Includes $ 131 million and $ 137 million of liabilities that were not obligations to third-party beneficial interest holders at March 31, 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 $ 43 million and $ 50 million were classified as held-to-maturity securities at March 31, 2026, and December 31, 2025, respectively, and $ 3 million were classified as other assets at both March 31, 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 $ 57 million and $ 56 million classified as equity securities at March 31, 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. 34 Table of Contents 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 three months ended March 31, 2026, and March 31, 2025. Additionally, this table contains information regarding cash flows received from and paid to nonconsolidated SPEs that existed during each period. Three months ended March 31, ($ in millions) 2026 2025 Consumer automotive Cash proceeds from transfers completed during the period $ 480 $ 191 Servicing fees 20 14 Cash flows received on retained interests in securitization entities 8 12 Other cash flows received 2 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) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 Off-balance-sheet securitization entities Consumer automotive $ 858 $ 1,002 $ 16 $ 18 Whole-loan sales (a) Consumer automotive 2,521 2,190 143 143 Total $ 3,379 $ 3,192 $ 159 $ 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 March 31, ($ in millions) 2026 2025 Off-balance-sheet securitization entities Consumer automotive $ 4 $ 5 Whole-loan sales (a) Consumer automotive 41 23 Consumer other (b) — 7 Total $ 45 $ 35 (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. 35 Table of Contents 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) March 31, 2026 December 31, 2025 Property and equipment at cost $ 2,275 $ 2,280 Accumulated depreciation ( 1,150 ) ( 1,130 ) Net property and equipment 1,125 1,150 Net deferred tax assets 2,368 2,334 Proportional amortization investments (a) (b) 2,032 2,094 Restricted cash and cash equivalents (c) 1,390 1,543 Accrued interest, fees, and rent receivables (d) 930 941 Nonmarketable equity investments 901 922 Equity-method investments (e) 741 715 Restricted cash held for securitization trusts (f) 321 236 Other accounts receivable 210 403 Goodwill 190 190 Operating lease right-of-use assets 107 109 Other assets 995 986 Total other assets (g) $ 11,310 $ 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 associated with operational processes with a third-party bank, partner, or letter of credit arrangements and corresponding collateral requirements. 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 March 31, 2026, and December 31, 2025, and accumulated amortization of $ 80 million at both March 31, 2026, and December 31, 2025. The following table summarizes information about our proportional amortization investments. Three months ended March 31, ($ in millions) 2026 2025 Tax credits and other tax benefits from proportional amortization investments (a) (b) $ 79 $ 56 Investment amortization expense recognized as a component of income tax expense (a) 62 45 Net benefit from proportional amortization investments (a) $ 17 $ 11 (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 ended March 31, 2026, and March 31, 2025, resulting from the forfeiture or ineligibility of tax credits or other circumstances. Our proportional amortization investments were $ 2.0 billion and $ 2.1 billion at March 31, 2026, and December 31, 2025, respectively, 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 March 31, 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 March 31, 2026, are expected to be paid out within the next five years . 36 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q The total carrying value of the nonmarketable equity investments held at March 31, 2026, and December 31, 2025, including cumulative unrealized gains and losses, was as follows. ($ in millions) March 31, 2026 December 31, 2025 FRB stock $ 454 $ 452 FHLB stock 335 359 Equity investments without a readily determinable fair value Cost basis 94 94 Adjustments Upward adjustments 56 57 Downward adjustments (including impairment) ( 38 ) ( 40 ) Carrying amount, equity investments without a readily determinable fair value 112 111 Nonmarketable equity investments $ 901 $ 922 During the three months ended March 31, 2026, and March 31, 2025, unrealized gains and losses included in the carrying value of the nonmarketable equity investments still held as of March 31, 2026, and March 31, 2025, were as follows. Three months ended March 31, ($ in millions) 2026 2025 Upward adjustments $ — $ — Downward adjustments (including impairment) (a) $ ( 1 ) $ — (a) No impairment on FHLB and FRB stock was recognized during the three months ended March 31, 2026, and March 31, 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 March 31, 2026 $ 20 $ 27 $ 143 $ 190 (a) Includes $ 143 million of goodwill associated with Ally Invest at both March 31, 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. 37 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 11. Deposit Liabilities Deposit liabilities consisted of the following. ($ in millions) March 31, 2026 December 31, 2025 Noninterest-bearing deposits $ 137 $ 125 Interest-bearing deposits Savings, money market, and spending accounts 112,800 109,214 Certificates of deposit 40,215 42,310 Total deposit liabilities $ 153,152 $ 151,649 At March 31, 2026, and December 31, 2025, certificates of deposit included $ 5.9 billion and $ 6.2 billion, respectively, of those in denominations in excess of $250 thousand. 12. Debt Short-Term Borrowings The following table presents the composition of our short-term borrowings portfolio. March 31, 2026 December 31, 2025 ($ in millions) Unsecured Secured (a) Total Unsecured Secured (a) Total Federal Home Loan Bank $ — $ 3,600 $ 3,600 $ — $ 4,150 $ 4,150 Securities sold under agreements to repurchase — 526 526 — 545 545 Total short-term borrowings $ — $ 4,126 $ 4,126 $ — $ 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 March 31, 2026, the securities sold under agreements to repurchase consisted of $ 526 million in U.S. Treasury securities, of which $ 427 million in repurchase agreements were set to mature within 30 days, and the remaining $ 99 million of repurchase agreements are set to mature within 31 to 60 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 March 31, 2026, we placed cash collateral of $ 10 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. March 31, 2026 December 31, 2025 ($ in millions) Unsecured Secured Total Unsecured Secured Total Long-term debt (a) (b) Due within one year $ ( 20 ) $ 2,459 $ 2,439 $ — $ 2,659 $ 2,659 Due after one year 9,939 4,971 14,910 10,012 4,399 14,411 Total long-term debt (c) $ 9,919 $ 7,430 $ 17,349 $ 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 scheduled amortization of original issue discount. (c) Includes advances from the FHLB of Pittsburgh of $ 4.2 billion at both March 31, 2026, and December 31, 2025. 38 Table of Contents 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 March 31, 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 $ 59 $ 1,595 $ 876 $ 1,748 $ 793 $ 5,518 $ 10,589 Original issue discount ( 63 ) ( 95 ) ( 107 ) ( 123 ) ( 143 ) ( 139 ) ( 670 ) Total unsecured ( 4 ) 1,500 769 1,625 650 5,379 9,919 Secured Long-term debt 2,079 2,751 2,056 435 85 24 7,430 Total long-term debt $ 2,075 $ 4,251 $ 2,825 $ 2,060 $ 735 $ 5,403 $ 17,349 The following table summarizes assets restricted as collateral for the payment of the related debt obligation. ($ in millions) March 31, 2026 December 31, 2025 Consumer automotive finance receivables $ 37,151 $ 36,807 Consumer mortgage finance receivables 15,342 15,604 Commercial finance receivables 7,899 7,686 Investment securities (amortized cost basis of $ 3,012 and $ 3,114 ) (a) 3,187 3,292 Other assets (b) 1,224 1,381 Total assets restricted as collateral (c) (d) $ 64,803 $ 64,770 Secured debt (e) $ 11,556 $ 11,753 (a) A portion of the restricted investment securities at both March 31, 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 $ 25.9 billion and $ 26.0 billion at March 31, 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 $ 33.6 billion and $ 33.7 billion at March 31, 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 $ 4.1 billion and $ 4.7 billion of short-term borrowings at March 31, 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) March 31, 2026 December 31, 2025 Unfunded commitments for proportional amortization investments (a) $ 735 $ 819 Accounts payable 544 420 Reserves for insurance losses and loss adjustment expenses (b) 251 233 Employee compensation and benefits 242 417 Deferred revenue 135 141 Operating lease liabilities 121 124 Other liabilities 488 551 Total accrued expenses and other liabilities $ 2,516 $ 2,705 (a) Primarily relates to unfunded commitments for investments in qualified affordable housing projects. (b) Refer to Note 4 for further information. 39 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 14. Preferred Stock The following table summarizes information about our preferred stock. For additional information regarding our preferred stock, refer to Note 17 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K. March 31, 2026 December 31, 2025 Series B preferred stock (a) (b) Issuance date April 22, 2021 April 22, 2021 Carrying value ($ in millions) $ 1,335 $ 1,335 Par value (per share) $ 0.01 $ 0.01 Liquidation preference (per share) $ 1,000 $ 1,000 Number of shares authorized 1,350,000 1,350,000 Number of shares issued and outstanding 1,350,000 1,350,000 Dividend/coupon Prior to May 15, 2026 4.700 % 4.700 % On and after May 15, 2026 Five Year Treasury + 3.868 % Five Year Treasury + 3.868 % Series C preferred stock (a) 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 % (a) We may, at our option, redeem the Series B and Series C shares on any dividend payment date on or after May 15, 2026, or May 15, 2028, respectively, or at any time within 90 days following a regulatory event that precludes the instruments from being included in additional Tier 1 capital. (b) 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. Refer to Note 24 for additional information. 15. Accumulated Other Comprehensive Loss The following table presents changes, net of tax, in each component of accumulated other comprehensive loss. 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 642 15 — 5 662 Balance at March 31, 2025 $ ( 2,665 ) $ ( 601 ) $ 20 $ ( 16 ) $ ( 3,262 ) Balance at January 1, 2026 $ ( 2,260 ) $ ( 551 ) $ 23 $ 2 $ ( 2,786 ) Net change ( 5 ) 14 — 4 13 Balance at March 31, 2026 $ ( 2,265 ) $ ( 537 ) $ 23 $ 6 $ ( 2,773 ) (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. 40 Table of Contents 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 March 31, 2026 ($ in millions) Before tax Tax effect After tax Investment securities Available-for-sale securities Net unrealized losses arising during the period $ ( 4 ) $ 1 $ ( 3 ) Less: Net realized gains reclassified to income from continuing operations 3 (a) ( 1 ) (b) 2 Net change ( 7 ) 2 ( 5 ) Held-to-maturity securities Less: Amortization of amounts previously recorded upon transfer from available-for-sale ( 19 ) (c) 5 (b) ( 14 ) Translation adjustments Net unrealized losses arising during the period ( 3 ) 1 ( 2 ) Net investment hedges (d) Net unrealized gains arising during the period 3 ( 1 ) 2 Cash flow hedges (d) Less: Net realized losses reclassified to income from continuing operations ( 5 ) (e) 1 (b) ( 4 ) Net change 5 ( 1 ) 4 Other comprehensive income $ 17 $ ( 4 ) $ 13 (a) Includes gains reclassified to other loss on investments, net, in our Condensed Consolidated Statement of Comprehensive Income. (b) Includes amounts reclassified to income tax expense (benefit) 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. Three months ended March 31, 2025 ($ in millions) Before tax Tax effect After tax Investment securities Available-for-sale securities Net unrealized gains arising during the period $ 346 $ ( 81 ) $ 265 Less: Net realized losses reclassified to income from continuing operations ( 495 ) (a) 118 (b) ( 377 ) Net change 841 ( 199 ) 642 Held-to-maturity securities Less: Amortization of amounts previously recorded upon transfer from available-for-sale ( 20 ) (c) 5 (b) ( 15 ) Cash flow hedges (d) Less: Net realized losses reclassified to income from continuing operations ( 7 ) (e) 2 (b) ( 5 ) Net change 7 ( 2 ) 5 Other comprehensive income $ 868 $ ( 206 ) $ 662 (a) Includes losses reclassified to other 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 (benefit) 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. 41 Table of Contents 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 March 31, ($ in millions, except per share data; shares in thousands) (a) 2026 2025 Net income (loss) from continuing operations $ 319 $ ( 225 ) Preferred stock dividends — Series B ( 16 ) ( 16 ) Preferred stock dividends — Series C ( 12 ) ( 12 ) Net income (loss) from continuing operations attributable to common shareholders $ 291 $ ( 253 ) Net income (loss) attributable to common shareholders $ 291 $ ( 253 ) Basic weighted-average common shares outstanding (b) 310,992 309,006 Diluted weighted-average common shares outstanding (b) (c) 313,219 309,006 Basic earnings per common share Net income (loss) from continuing operations $ 0.94 $ ( 0.82 ) Net income (loss) $ 0.94 $ ( 0.82 ) Diluted earnings per common share Net income (loss) from continuing operations $ 0.93 $ ( 0.82 ) Net income (loss) $ 0.93 $ ( 0.82 ) (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. (c) Due to the antidilutive effect of the net loss from continuing operations for the three months ended March 31, 2025, basic weighted-average common shares outstanding was used to calculate basic and diluted earnings per share. During the three months ended March 31, 2025, there were 2.7 million in share-based awards excluded because their inclusion would have been antidilutive. 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. 42 Table of Contents 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 March 31, 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 both March 31, 2026, and December 31, 2025, Ally had $ 2.8 billion 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 March 31, 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 $ 5.6 billion at March 31, 2026, which represented 3.7 % of total deposit liabilities. 43 Table of Contents 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. March 31, 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. $ 15,695 10.11 % $ 15,629 10.23 % 4.50 % (b) Ally Bank 17,914 12.38 17,853 12.50 4.50 6.50 % Tier 1 (to risk-weighted assets) Ally Financial Inc. $ 17,934 11.56 % $ 17,885 11.70 % 6.00 % 6.00 % Ally Bank 17,914 12.38 17,853 12.50 6.00 8.00 Total (to risk-weighted assets) Ally Financial Inc. $ 20,793 13.40 % $ 20,731 13.56 % 8.00 % 10.00 % Ally Bank 19,744 13.65 19,659 13.77 8.00 10.00 Tier 1 leverage (to adjusted quarterly average assets) (c) Ally Financial Inc. $ 17,934 9.16 % $ 17,885 9.25 % 4.00 % (b) Ally Bank 17,914 9.72 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 March 31, 2026, and December 31, 2025, and Ally Bank was subject to a minimum capital conservation buffer of 2.5 % at both March 31, 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 expire June 18, 2026. As proposed, the phase-in of accumulated other comprehensive income and loss would be expected to significantly affect our 44 Table of Contents 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 as Tier 2 capital for Ally under U.S. Basel III. 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. The proceeds from these credit-linked notes issuances constitute prefunded credit protection for mezzanine tranches of the respective reference portfolio and are recognized as restricted cash and cash equivalents in other assets on our Condensed Consolidated Balance Sheet. 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 March 31, 2026, and December 31, 2025, $ 10.7 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. 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, 45 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 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 (a) Includes shares of common stock withheld to cover income taxes owed by participants in our share-based incentive plans. (b) On April 14, 2026, our Board declared a quarterly cash dividend of $ 0.30 per share on all common stock payable on May 15, 2026, to shareholders of record at the close of business on May 1, 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. 46 Table of Contents 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 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 three months ended March 31, 2026, or 2025. We placed cash and noncash collateral with counterparties totaling $ 13 million and $ 290 million, respectively, supporting our derivative positions at March 31, 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 $ 3 million at March 31, 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. 47 Table of Contents 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. March 31, 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 $ — $ — $ 22,507 $ — $ — $ 23,257 Purchased options — — 2,250 — — 3,450 Foreign exchange contracts Forwards 2 — 187 — 4 199 Total derivatives designated as accounting hedges 2 — 24,944 — 4 26,906 Derivatives not designated as accounting hedges Interest rate contracts Swaps 1 1 216 — — — Total interest rate risk 1 1 216 — — — Foreign exchange contracts Forwards — — 35 — — 71 Total foreign exchange risk — — 35 — — 71 Credit contracts Credit-linked note derivatives — 1 1,224 — — 1,381 Total credit risk — 1 1,224 — — 1,381 Equity contracts Written options — 1 — — — — Total equity risk — 1 — — — — Total derivatives not designated as accounting hedges 1 3 1,475 — — 1,452 Total derivatives $ 3 $ 3 $ 26,419 $ — $ 4 $ 28,358 48 Table of Contents 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) March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 March 31, 2026 December 31, 2025 Assets Available-for-sale securities (b) $ 14,968 $ 15,240 $ ( 68 ) $ 7 $ ( 51 ) $ ( 54 ) Finance receivables and loans, net (c) 23,942 27,808 ( 23 ) 7 1 1 Liabilities Long-term debt $ 3,395 $ 3,378 $ 76 $ 79 $ 76 $ 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 March 31, 2026, and December 31, 2025, the amortized cost basis and unallocated basis adjustments of the closed portfolios used in these hedging relationships was $ 13.5 billion and $ 13.7 billion, respectively, of which $ 13.2 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 March 31, 2026, and December 31, 2025, the total cumulative basis adjustments associated with these hedging relationships was a $ 72 million liability and a $ 8 million liability, respectively, of which the portion related to discontinued hedging relationships was a $ 51 million liability and a $ 54 million liability, respectively. At both March 31, 2026, and December 31, 2025, the notional amounts of the designated hedged items were $ 11.0 billion, with cumulative basis adjustments of a $ 21 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 March 31, 2026, and December 31, 2025, the carrying value of the closed portfolios used in these hedging relationships was $ 23.9 billion and $ 27.8 billion, respectively, of which $ 19.1 billion and $ 21.8 billion, respectively, represents the carrying value of closed portfolios designated in an active hedge relationship. At March 31, 2026, and December 31, 2025, the total cumulative basis adjustments associated with these hedging relationships was a $ 23 million liability and $ 7 million asset, respectively, of which the portion related to discontinued hedging relationships was a $ 1 million asset at both March 31, 2026, and December 31, 2025. At March 31, 2026, and December 31, 2025, the notional amounts of the designated hedged items were $ 10.0 billion and $ 10.8 billion, respectively, with cumulative basis adjustments of a $ 24 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 March 31, ($ in millions) 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 1 — Total foreign exchange contracts 1 — Credit contracts Other income, net of losses ( 1 ) — Total credit contracts ( 1 ) — Total gain recognized in earnings $ — $ 1 49 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q The following table summarizes 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 Interest on long-term debt Three months ended March 31, ($ in millions) 2026 2025 2026 2025 2026 2025 Gain (loss) on fair value hedging relationships Interest rate contracts Hedged available-for-sale securities $ — $ — $ ( 77 ) $ 130 $ — $ — Derivatives designated as hedging instruments on available-for-sale securities — — 77 ( 130 ) — — Hedged fixed-rate consumer automotive loans ( 30 ) 29 — — — — Derivatives designated as hedging instruments on fixed-rate consumer automotive loans 30 ( 29 ) — — — — 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 ( 5 ) ( 7 ) — — — — Total loss on cash flow hedging relationships $ ( 5 ) $ ( 7 ) $ — $ — $ — $ — Total amounts presented in the Condensed Consolidated Statement of Comprehensive Income $ 2,658 $ 2,709 $ 234 $ 230 $ 265 $ 271 During the next 12 months, we estimate $ 3 million of losses will be reclassified into pretax earnings from derivatives designated as cash flow hedges. The following table summarizes 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 March 31, ($ in millions) 2026 2025 2026 2025 2026 2025 Gain on fair value hedging relationships Interest rate contracts Amortization of deferred unsecured debt basis adjustments $ — $ — $ — $ — $ 2 $ 2 Amortization of deferred basis adjustments of available-for-sale securities — — 3 5 — — Interest for qualifying accounting hedges of available-for-sale securities — — 1 17 — — Amortization of deferred loan basis adjustments — 2 — — — — Interest for qualifying accounting hedges of consumer automotive loans held for investment 5 19 — — — — Total gain on fair value hedging relationships $ 5 $ 21 $ 4 $ 22 $ 2 $ 2 The following table summarizes the effect of cash flow hedges on accumulated other comprehensive loss. Three months ended March 31, ($ in millions) 2026 2025 Interest rate contracts Gain recognized in other comprehensive income $ 5 $ 7 50 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q The following table summarizes the effect of net investment hedges on accumulated other comprehensive loss. Three months ended March 31, ($ in millions) 2026 2025 Foreign exchange contracts (a) (b) Gain recognized in other comprehensive income $ 3 $ — (a) There were no amounts excluded from effectiveness testing for the three months ended March 31, 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 ended March 31, 2026, or 2025. 19. Income Taxes We recognized total income tax expense from continuing operations of $ 81 million for the three months ended March 31, 2026, compared to an income tax benefit of $ 59 million for the same period in 2025. The increase in income tax expense for the three months ended March 31, 2026, was primarily attributable to 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 three months ended March 31, 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. 51 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q • 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 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. 52 Table of Contents 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 March 31, 2026 ($ in millions) Level 1 Level 2 Level 3 Total Assets Investment securities Equity securities (a) (b) $ 804 $ — $ — $ 804 Available-for-sale securities Debt securities U.S. Treasury and federal agencies 2,397 — — 2,397 U.S. States and political subdivisions — 483 34 517 Foreign government 32 167 — 199 Agency mortgage-backed residential — 12,695 — 12,695 Mortgage-backed residential — 193 — 193 Agency mortgage-backed commercial — 5,107 — 5,107 Asset-backed — 2 — 2 Corporate debt — 1,928 — 1,928 Total available-for-sale securities 2,429 20,575 34 23,038 Derivative contracts in a receivable position Interest rate — 1 — 1 Foreign exchange — 2 — 2 Total derivative contracts in a receivable position — 3 — 3 Total assets $ 3,233 $ 20,578 $ 34 $ 23,845 Liabilities Accrued expenses and other liabilities Derivative contracts in a payable position Interest rate $ — $ 1 $ — $ 1 Credit — — 1 1 Equity 1 — — 1 Total derivative contracts in a payable position 1 1 1 3 Total liabilities $ 1 $ 1 $ 1 $ 3 (a) Our direct investment in any one industry did not exceed 15 %. When performing the concentration calculation, mutual funds and ETFs are not allocated to any one industry. (b) Excludes $ 59 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. 53 Table of Contents 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. 54 Table of Contents 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 January 1, $ 34 $ 35 $ — $ 5 Net realized/unrealized gains Included in earnings — — — — Included in OCI — — — — Purchases and originations — — — 8 Sales — — — ( 10 ) Issuances — — — — Settlements — — — — Transfers into Level 3 — — — — Transfers out of Level 3 — — — — Fair value at March 31, $ 34 $ 35 $ — $ 3 Net unrealized gains still held at March 31, 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 1 ( 1 ) Included in OCI — — Purchases and originations — — Sales — — Issuances — — Settlements — — Transfers into Level 3 — — Transfers out of Level 3 (b) — 2 Fair value at March 31, $ 1 $ 4 Net unrealized losses still held at March 31, Included in earnings $ 1 $ — Included in OCI — — (a) Net realized/unrealized losses (gains) are reported as (loss) gain 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 three months ended March 31, 2025. These transfers are deemed to have occurred at the end of the reporting period. 55 Table of Contents 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 March 31, 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 March 31, 2026 ($ in millions) Level 1 Level 2 Level 3 Total Assets Loans held-for-sale, net $ — $ — $ 336 $ 336 $ ( 15 ) n/m (a) Commercial finance receivables and loans, net (b) Other — — 12 12 ( 96 ) n/m (a) Total commercial finance receivables and loans, net — — 12 12 ( 96 ) n/m (a) Other assets Nonmarketable equity investments — — 2 2 ( 1 ) n/m (a) Repossessed and foreclosed assets (c) — — 8 8 ( 1 ) n/m (a) Total assets $ — $ — $ 358 $ 358 $ ( 113 ) 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. 56 Table of Contents 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 March 31, 2026, and December 31, 2025. Estimated fair value ($ in millions) Carrying value Level 1 Level 2 Level 3 Total March 31, 2026 Financial assets Held-to-maturity securities $ 4,337 $ — $ 4,387 $ — $ 4,387 Loans held-for-sale, net 337 — — 338 338 Finance receivables and loans, net 136,350 — — 139,266 139,266 FHLB/FRB stock (a) 789 — 789 — 789 Financial liabilities Deposit liabilities $ 40,215 $ — $ — $ 40,362 $ 40,362 Short-term borrowings 4,126 — — 4,123 4,123 Long-term debt 17,349 — 12,891 5,469 18,360 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. 57 Table of Contents 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 March 31, 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 March 31, 2026 Assets Derivative assets $ 3 $ — $ 3 $ ( 1 ) $ ( 2 ) $ — Total assets $ 3 $ — $ 3 $ ( 1 ) $ ( 2 ) $ — Liabilities Derivative liabilities (d) $ 3 $ — $ 3 $ ( 1 ) $ ( 1 ) $ 1 Securities sold under agreements to repurchase (e) 526 — 526 — ( 526 ) — Total liabilities $ 529 $ — $ 529 $ ( 1 ) $ ( 527 ) $ 1 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 $ 1 million as of March 31, 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. 58 Table of Contents 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, warehouse lines to automotive retailers, 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. 59 Table of Contents 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 March 31, ($ 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 $ 2,687 $ 49 $ 243 $ 395 $ 3,374 Total interest expense 1,128 13 130 246 1,517 Net depreciation expense on operating lease assets 268 — — — 268 Net financing revenue and other interest income 1,291 36 113 149 1,589 Other revenue 105 342 35 31 513 Total net revenue 1,396 378 148 180 2,102 Provision for credit losses 468 — 8 ( 9 ) 467 Noninterest expense Compensation and benefits expense 191 32 26 242 491 Insurance losses and loss adjustment expenses — 121 — — 121 Other operating expenses Technology and communications expenses 28 4 1 68 101 Other (b) 373 193 19 ( 63 ) 522 Total other operating expenses 401 197 20 5 623 Total noninterest expense 592 350 46 247 1,235 Income (loss) from continuing operations before income tax expense (benefit) $ 336 $ 28 $ 94 $ ( 58 ) $ 400 Total assets $ 117,612 $ 9,888 $ 13,803 $ 55,966 $ 197,269 2025 Net financing revenue and other interest income Total financing revenue and other interest income $ 2,571 $ 44 $ 221 $ 557 $ 3,393 Total interest expense 1,065 14 117 479 1,675 Net depreciation expense on operating lease assets 240 — — — 240 Net financing revenue and other interest income 1,266 30 104 78 1,478 Other revenue 97 364 29 ( 427 ) 63 Total net revenue 1,363 394 133 ( 349 ) 1,541 Provision for credit losses 434 — 14 ( 257 ) 191 Noninterest expense Compensation and benefits expense 183 30 25 267 505 Insurance losses and loss adjustment expenses — 161 — — 161 Goodwill impairment (c) — — — 305 305 Other operating expenses Technology and communications expenses 29 5 1 68 103 Other (b) 342 196 17 5 560 Total other operating expenses 371 201 18 73 663 Total noninterest expense 554 392 43 645 1,634 Income (loss) from continuing operations before income tax expense (benefit) $ 375 $ 2 $ 76 $ ( 737 ) $ ( 284 ) Total assets $ 111,672 $ 9,489 $ 11,002 $ 61,168 $ 193,331 (a) Net financing revenue and other interest income after the provision for credit losses totaled $ 1.1 billion and $ 1.3 billion for the three months ended March 31, 2026, and 2025, respectively. (b) Primarily consists of insurance commissions, advertising and marketing, and property and equipment depreciation expenses. Refer to Note 5 for additional information. (c) Impairment of goodwill related to Ally Credit Card for the three months ended March 31, 2025. Refer to Note 2 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information on Ally Credit Card. 60 Table of Contents Notes to Condensed Consolidated Financial Statements (unaudited) Ally Financial Inc. • Form 10-Q 23. Contingencies and Other Risks As a financial-services company, we are regularly involved in pending or threatened legal proceedings and other matters and are or may be subject to potential liability in connection with them. These legal matters may be formal or informal and include litigation and arbitration with one or more identified claimants, certified or purported class actions with yet-to-be-identified claimants, and regulatory or other governmental information-gathering requests, examinations, investigations, and enforcement proceedings. Our legal matters exist in varying stages of adjudication, arbitration, negotiation, or investigation and span our business lines and operations. Claims may be based in law or equity — such as those arising under contracts or in tort and those involving banking, consumer-protection, securities, tax, employment, and other laws — and some can present novel legal theories and allege substantial or indeterminate damages. Ally and its subsidiaries, including Ally Bank, also are or may be subject to potential liability under other contingent exposures, including indemnification, domestic and foreign taxes, self-insurance, and other miscellaneous contingencies. We accrue for a legal matter or other contingent exposure when a loss becomes probable and the amount of loss can be reasonably estimated. Accruals are evaluated each quarter and may be adjusted, upward or downward, based on our best judgment after consultation with counsel. No assurance exists that our accruals will not need to be adjusted in the future. When a probable or reasonably possible loss on a legal matter or other contingent exposure could be material to our consolidated financial condition, results of operations, or cash flows, we provide disclosure in this note as prescribed by ASC Topic 450, Contingencies . Refer to Note 1 to the Consolidated Financial Statements in our 2025 Annual Report on Form 10-K for additional information related to our policy for establishing accruals. The course and outcome of legal matters are inherently unpredictable. This is especially so when a matter is still in its early stages, the damages sought are indeterminate or unsupported, significant facts are unclear or disputed, novel questions of law or other meaningful legal uncertainties exist, a request to certify a proceeding as a class action is outstanding or granted, multiple parties are named, or regulatory or other governmental entities are involved. Other contingent exposures and their ultimate resolution are similarly unpredictable for reasons that can vary based on the circumstances. As a result, we often are unable to determine how or when threatened or pending legal matters and other contingent exposures will be resolved and what losses may be incrementally and ultimately incurred. Actual losses may be higher or lower than any amounts accrued or estimated for those matters and other exposures, possibly to a significant degree. Subject to the foregoing, based on our current knowledge and after consultation with counsel, we do not believe that the ultimate outcomes of currently threatened or pending legal matters and other contingent exposures are likely to be material to our consolidated financial condition after taking into account existing accruals. In light of the uncertainties inherent in these matters and other exposures, however, one or more of them could be material to our results of operations or cash flows during a particular reporting period, depending on factors such as the amount of the loss or liability and the level of our income for that period. 24. Subsequent Events Declaration of Common Dividend On April 14, 2026, our Board declared a quarterly cash dividend of $ 0.30 per share on all common stock. The dividend is payable on May 15, 2026, to shareholders of record at the close of business on May 1, 2026. Series D Preferred Stock Offering and Redemption of Series B Preferred Stock On May 1, 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, if declared by our Board, will be paid on a non-cumulative basis quarterly, in arrears, at a rate equal to (i) 7.100 % from the original issue date to, but excluding, August 15, 2031, and (ii) from the August 15, 2031 dividend date and during each subsequent reset period at a rate per annum equal to the five-year treasury rate plus 3.148 %. We intend to treat the Series D Preferred Stock as “Additional Tier 1” capital (or its equivalent) for purposes of the capital adequacy rules of the Federal Reserve (or, as and if applicable, the capital adequacy rules or regulations of any successor appropriate federal banking agency) applicable to us. On May 4, 2026, we announced that we will redeem all 1,350,000 outstanding shares of our 4.700 % Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B on May 15, 2026, at a redemption price equal to $ 1,000 per share plus any declared and unpaid dividends up to, but excluding, the redemption date. This represents 100 % of the issued and outstanding Series B Preferred Stock and an aggregate liquidation preference of $ 1.35 billion. 61 Table of Contents Management’s Discussion and Analysis Ally Financial Inc. • Form 10-Q