TRUIST FINANCIAL CORP - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.3 - EX-99.3 - TRUIST FINANCIAL CORP	ex993-earningsdeck2q21.htm
EX-99.1 - EX-99.1 - TRUIST FINANCIAL CORP	ex991-pr2q21.htm
8-K - 8-K - TRUIST FINANCIAL CORP	tfc-20210715.htm

Quarterly Performance Summary

Truist Financial Corporation

Second Quarter 2021


Table of Contents
Quarterly Performance Summary
Truist Financial Corporation




						Page
Financial Highlights						1
Financial Highlights - Five Quarter Trend						2
Consolidated Statements of Income						3
Consolidated Statements of Income - Five Quarter Trend						4
Segment Financial Performance - Five Quarter Trend						5
Consolidated Ending Balance Sheets - Five Quarter Trend						6
Average Balance Sheets						7
Average Balance Sheets - Five Quarter Trend						8
Average Balances and Rates - Quarters						9

Credit Quality						12
Capital Information - Five Quarter Trend						16
Selected Mortgage Banking Information & Additional Information						17
Selected Items						18
Non-GAAP Reconciliations						18


Financial Highlights
	Quarter Ended								Year-to-Date
	June 30						%		June 30						%
(Dollars in millions, except per share data, shares in thousands)	2021			2020			Change		2021			2020			Change
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,471		$	3,919		(11.4)	%	$	6,993		$	8,382		(16.6)	%
Interest expense	198			440			(55.0)		407			1,216			(66.5)
Net interest income - taxable equivalent	3,273			3,479			(5.9)		6,586			7,166			(8.1)
Less: Taxable-equivalent adjustment	28			31			(9.7)		56			68			(17.6)
Net interest income	3,245			3,448			(5.9)		6,530			7,098			(8.0)
Provision for credit losses	(434)			844			(151.4)		(386)			1,737			(122.2)
Net interest income after provision for credit losses	3,679			2,604			41.3		6,916			5,361			29.0
Noninterest income	2,405			2,423			(0.7)		4,602			4,384			5.0
Noninterest expense	4,011			3,878			3.4		7,621			7,309			4.3
Income before income taxes	2,073			1,149			80.4		3,897			2,436			60.0
Provision for income taxes	415			191			117.3		766			415			84.6
Net income	1,658			958			73.1		3,131			2,021			54.9
Noncontrolling interests	1			3			(66.7)		(3)			6			(150.0)
Net income available to the bank holding company	1,657			955			73.5		3,134			2,015			55.5
Preferred stock dividends and other	98			53			84.9		241			127			89.8
Net income available to common shareholders	1,559			902			72.8		2,893			1,888			53.2
Per Common Share Data

Earnings per share-basic	$	1.16		$	0.67		73.1	%	$	2.16		$	1.40		54.3	%
Earnings per share-diluted	1.16			0.67			73.1		2.14			1.39			54.0
Earnings per share-adjusted diluted (2)	1.55			0.82			89.0		2.72			1.65			64.8
Cash dividends declared	0.45			0.45			—		0.90			0.90			—
Common shareholders' equity	46.20			45.74			1.0		46.20			45.74			1.0
Tangible common shareholders' equity (2)	26.50			26.38			0.5		26.50			26.38			0.5
End of period shares outstanding	1,334,770			1,347,609			(1.0)		1,334,770			1,347,609			(1.0)

Weighted average shares outstanding-basic	1,338,302			1,347,512			(0.7)		1,341,963			1,345,942			(0.3)
Weighted average shares outstanding-diluted	1,349,492			1,355,834			(0.5)		1,354,210			1,356,809			(0.2)
Performance Ratios
Return on average assets	1.28		%	0.75		%			1.23		%	0.82		%
Return on average risk-weighted assets (current period is preliminary)	1.75			1.00					1.67			1.06
Return on average common shareholders' equity	10.1			5.9					9.4			6.2
Return on average tangible common shareholders' equity (2)	18.9			11.8					17.7			12.5
Net interest margin - taxable equivalent	2.88			3.13					2.95			3.34
Fee income ratio	42.6			41.3					41.3			38.2
Efficiency ratio-GAAP	71.0			66.1					68.5			63.7
Efficiency ratio-adjusted (2)	56.1			55.8					56.5			55.2
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.23		%	0.25		%			0.23		%	0.25		%
Loans and leases plus foreclosed property	0.39			0.37					0.39			0.37
Net charge-offs as a percentage of average loans and leases	0.20			0.39					0.26			0.38
Allowance for loan and lease losses as a percentage of LHFI	1.79			1.81					1.79			1.81
Ratio of allowance for loan and lease losses to nonperforming LHFI	4.83x			5.24x					4.83x			5.24x
Average Balances
Assets	$	518,774		$	514,720		0.8	%	$	513,832		$	496,135		3.6	%
Securities available for sale (3)	135,647			75,159			80.5		128,984			75,430			71.0
Loans and leases	292,965			326,435			(10.3)		296,235			317,091			(6.6)
Deposits	396,255			370,818			6.9		389,756			352,733			10.5
Common shareholders' equity	61,709			61,484			0.4		61,979			60,854			1.8
Total shareholders' equity	68,665			66,863			2.7		69,352			66,137			4.9
Period-End Balances
Assets	$	521,964		$	504,336		3.5	%	$	521,964		$	504,336		3.5	%
Securities available for sale (3)	139,879			77,805			79.8		139,879			77,805			79.8
Loans and leases	289,494			321,148			(9.9)		289,494			321,148			(9.9)
Deposits	398,279			376,235			5.9		398,279			376,235			5.9
Common shareholders' equity	61,663			61,634			—		61,663			61,634			—
Total shareholders' equity	68,336			68,883			(0.8)		68,336			68,883			(0.8)
Capital Ratios (current quarter is preliminary)

Common equity Tier 1	10.2		%	9.7		%			10.2		%	9.7		%
Tier 1	11.9			11.6					11.9			11.6
Total	14.1			14.0					14.1			14.0

Leverage	9.1			9.0					9.1			9.0
Supplementary leverage	7.9			8.5					7.9			8.5
Applicable ratios are annualized.

(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management's reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Average balances reflect AFS securities at amortized cost. Period-end balances reflect AFS securities at fair value.

Truist Financial Corporation 1


Financial Highlights - Five Quarter Trend
	Quarter Ended
	June 30			March 31			Dec. 31			Sept. 30			June 30
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2020			2020			2020
Summary Income Statement
Interest income - taxable equivalent (1)	$	3,471		$	3,522		$	3,639		$	3,652		$	3,919
Interest expense	198			209			245			261			440
Net interest income - taxable equivalent	3,273			3,313			3,394			3,391			3,479
Less: Taxable-equivalent adjustment	28			28			28			29			31
Net interest income	3,245			3,285			3,366			3,362			3,448
Provision for credit losses	(434)			48			177			421			844
Net interest income after provision for credit losses	3,679			3,237			3,189			2,941			2,604
Noninterest income	2,405			2,197			2,285			2,210			2,423
Noninterest expense	4,011			3,610			3,833			3,755			3,878
Income before income taxes	2,073			1,824			1,641			1,396			1,149
Provision for income taxes	415			351			311			255			191
Net income	1,658			1,473			1,330			1,141			958
Noncontrolling interests	1			(4)			1			3			3
Net income available to the bank holding company	1,657			1,477			1,329			1,138			955
Preferred stock dividends and other	98			143			101			70			53
Net income available to common shareholders	1,559			1,334			1,228			1,068			902
Per Common Share Data

Earnings per share-basic	$	1.16		$	0.99		$	0.91		$	0.79		$	0.67
Earnings per share-diluted	1.16			0.98			0.90			0.79			0.67
Earnings per share-adjusted diluted (2)	1.55			1.18			1.18			0.97			0.82
Cash dividends declared	0.45			0.45			0.45			0.45			0.45
Common shareholders' equity	46.20			45.17			46.52			45.86			45.74
Tangible common shareholders' equity (2)	26.50			25.53			26.78			26.63			26.38
End of period shares outstanding	1,334,770			1,344,845			1,348,961			1,348,118			1,347,609

Weighted average shares outstanding-basic	1,338,302			1,345,666			1,348,493			1,347,916			1,347,512
Weighted average shares outstanding-diluted	1,349,492			1,358,932			1,361,763			1,358,122			1,355,834
Performance Ratios
Return on average assets	1.28		%	1.17		%	1.05		%	0.91		%	0.75		%
Return on average risk-weighted assets (current quarter is preliminary)	1.75			1.58			1.40			1.19			1.00
Return on average common shareholders' equity	10.1			8.7			7.9			6.9			5.9
Return on average tangible common shareholders' equity (2)	18.9			16.4			15.0			13.3			11.8
Net interest margin - taxable equivalent	2.88			3.01			3.08			3.10			3.13
Fee income ratio	42.6			40.1			40.4			39.7			41.3
Efficiency ratio-GAAP	71.0			65.8			67.8			67.4			66.1
Efficiency ratio-adjusted (2)	56.1			56.9			55.9			57.3			55.8
Credit Quality
Nonperforming assets as a percentage of:
Assets, including LHFS	0.23		%	0.25		%	0.27		%	0.26		%	0.25		%
Loans and leases plus foreclosed property	0.39			0.42			0.46			0.39			0.37
Net charge-offs as a percentage of average loans and leases	0.20			0.33			0.27			0.42			0.39
Allowance for loan and lease losses as a percentage of LHFI	1.79			1.94			1.95			1.91			1.81
Ratio of allowance for loan and lease losses to nonperforming LHFI	4.83x			4.84x			4.39x			5.22x			5.24x
Average Balances
Assets	$	518,774		$	508,833		$	503,181		$	500,826		$	514,720
Securities available for sale (3)	135,647			122,246			102,053			79,828			75,159
Loans and leases	292,965			299,541			308,188			315,691			326,435
Deposits	396,255			383,185			375,266			372,211			370,818
Common shareholders' equity	61,709			62,252			61,991			61,804			61,484
Total shareholders' equity	68,665			70,047			70,145			69,634			66,863
Period-End Balances
Assets	$	521,964		$	517,537		$	509,228		$	499,183		$	504,336
Securities available for sale (3)	139,879			123,807			120,788			86,132			77,805
Loans and leases	289,494			297,179			305,793			312,149			321,148
Deposits	398,279			395,562			381,077			370,747			376,235
Common shareholders' equity	61,663			60,752			62,759			61,819			61,634
Total shareholders' equity	68,336			67,876			70,912			69,973			68,883
Capital Ratios (current quarter is preliminary)

Common equity Tier 1	10.2		%	10.1		%	10.0		%	10.0		%	9.7		%
Tier 1	11.9			12.0			12.1			12.2			11.6
Total	14.1			14.3			14.5			14.6			14.0

Leverage	9.1			9.4			9.6			9.6			9.0
Supplementary leverage	7.9			8.3			8.7			8.9			8.5
Applicable ratios are annualized.
(1) Interest income includes certain fees, deferred costs, fair value mark accretion, and dividends.
(2) Represents a non-GAAP measure. See the calculations and management's reasons for using these measures in the Non-GAAP Reconciliations and Preliminary Capital Information - Five Quarter Trend sections of this supplement.
(3) Average balances reflect AFS securities at amortized cost. Period-end balances reflect AFS securities at fair value.

2 Truist Financial Corporation


Consolidated Statements of Income
	Quarter Ended								Year-to-Date
	June 30				Change				June 30				Change
(Dollars in millions, except per share data, shares in thousands)	2021		2020		$		%		2021		2020		$		%
Interest Income
Interest and fees on loans and leases	$	2,901	$	3,377	$	(476)	(14.1)	%	$	5,903	$	7,153	$	(1,250)	(17.5)	%
Interest on securities	497		444		53		11.9		940		938		2		0.2
Interest on other earning assets	45		67		(22)		(32.8)		94		223		(129)		(57.8)
Total interest income	3,443		3,888		(445)		(11.4)		6,937		8,314		(1,377)		(16.6)
Interest Expense
Interest on deposits	36		201		(165)		(82.1)		83		622		(539)		(86.7)
Interest on long-term debt	147		211		(64)		(30.3)		295		483		(188)		(38.9)
Interest on other borrowings	15		28		(13)		(46.4)		29		111		(82)		(73.9)
Total interest expense	198		440		(242)		(55.0)		407		1,216		(809)		(66.5)
Net Interest Income	3,245		3,448		(203)		(5.9)		6,530		7,098		(568)		(8.0)
Provision for credit losses	(434)		844		(1,278)		(151.4)		(386)		1,737		(2,123)		(122.2)
Net Interest Income After Provision for Credit Losses	3,679		2,604		1,075		41.3		6,916		5,361		1,555		29.0
Noninterest Income
Insurance income	690		581		109		18.8		1,316		1,130		186		16.5
Wealth management income	345		289		56		19.4		686		621		65		10.5
Service charges on deposits	253		202		51		25.2		511		507		4		0.8
Residential mortgage income	117		341		(224)		(65.7)		217		586		(369)		(63.0)
Investment banking and trading income	317		274		43		15.7		657		392		265		67.6
Card and payment related fees	225		171		54		31.6		425		358		67		18.7
Lending related fees	94		66		28		42.4		194		133		61		45.9
Operating lease income	66		83		(17)		(20.5)		134		160		(26)		(16.3)
Commercial real estate related income	138		49		89		181.6		181		93		88		94.6
Income from bank-owned life insurance	46		45		1		2.2		96		89		7		7.9
Securities gains (losses)	—		300		(300)		NM		—		298		(298)		NM
Other income (loss)	114		22		92		NM		185		17		168		NM
Total noninterest income	2,405		2,423		(18)		(0.7)		4,602		4,384		218		5.0
Noninterest Expense
Personnel expense	2,207		2,008		199		9.9		4,349		3,980		369		9.3
Professional fees and outside processing	341		289		52		18.0		691		536		155		28.9
Net occupancy expense	182		243		(61)		(25.1)		391		464		(73)		(15.7)
Software expense	246		216		30		13.9		456		426		30		7.0
Amortization of intangibles	142		178		(36)		(20.2)		286		343		(57)		(16.6)
Equipment expense	122		120		2		1.7		235		236		(1)		(0.4)
Marketing and customer development	66		56		10		17.9		132		140		(8)		(5.7)
Operating lease depreciation	47		77		(30)		(39.0)		97		148		(51)		(34.5)
Loan-related expense	55		56		(1)		(1.8)		109		118		(9)		(7.6)
Regulatory costs	31		30		1		3.3		56		59		(3)		(5.1)
Merger-related and restructuring charges	297		209		88		42.1		438		316		122		38.6
Loss (gain) on early extinguishment of debt	—		235		(235)		(100.0)		(3)		235		(238)		(101.3)
Other expense	275		161		114		70.8		384		308		76		24.7
Total noninterest expense	4,011		3,878		133		3.4		7,621		7,309		312		4.3
Earnings
Income before income taxes	2,073		1,149		924		80.4		3,897		2,436		1,461		60.0
Provision for income taxes	415		191		224		117.3		766		415		351		84.6
Net income	1,658		958		700		73.1		3,131		2,021		1,110		54.9
Noncontrolling interests	1		3		(2)		(66.7)		(3)		6		(9)		(150.0)
Net income available to the bank holding company	1,657		955		702		73.5		3,134		2,015		1,119		55.5
Preferred stock dividends and other	98		53		45		84.9		241		127		114		89.8
Net income available to common shareholders	$	1,559	$	902	$	657	72.8	%	$	2,893	$	1,888	$	1,005	53.2	%
Earnings Per Common Share
Basic	$	1.16	$	0.67	$	0.49	73.1	%	$	2.16	$	1.40	$	0.76	54.3	%
Diluted	1.16		0.67		0.49		73.1		2.14		1.39		0.75		54.0
Weighted Average Shares Outstanding
Basic	1,338,302		1,347,512		(9,210)		(0.7)		1,341,963		1,345,942		(3,979)		(0.3)
Diluted	1,349,492		1,355,834		(6,342)		(0.5)		1,354,210		1,356,809		(2,599)		(0.2)
NM - not meaningful

Truist Financial Corporation 3


Consolidated Statements of Income - Five Quarter Trend
	Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions, except per share data, shares in thousands)	2021		2021		2020		2020		2020
Interest Income
Interest and fees on loans and leases	$	2,901	$	3,002	$	3,158	$	3,174	$	3,377
Interest on securities	497		443		408		393		444
Interest on other earning assets	45		49		45		56		67
Total interest income	3,443		3,494		3,611		3,623		3,888
Interest Expense
Interest on deposits	36		47		67		96		201
Interest on long-term debt	147		148		165		152		211
Interest on other borrowings	15		14		13		13		28
Total interest expense	198		209		245		261		440
Net Interest Income	3,245		3,285		3,366		3,362		3,448
Provision for credit losses	(434)		48		177		421		844
Net Interest Income After Provision for Credit Losses	3,679		3,237		3,189		2,941		2,604
Noninterest Income
Insurance income	690		626		545		518		581
Wealth management income	345		341		332		324		289
Service charges on deposits	253		258		266		247		202
Residential mortgage income	117		100		193		221		341
Investment banking and trading income	317		340		308		244		274
Card and payment related fees	225		200		203		200		171
Lending related fees	94		100		105		77		66
Operating lease income	66		68		77		72		83
Commercial real estate related income	138		43		123		55		49
Income from bank-owned life insurance	46		50		44		46		45
Securities gains (losses)	—		—		—		104		300
Other income (loss)	114		71		89		102		22
Total noninterest income	2,405		2,197		2,285		2,210		2,423
Noninterest Expense
Personnel expense	2,207		2,142		2,108		2,058		2,008
Professional fees and outside processing	341		350		393		323		289
Net occupancy expense	182		209		207		233		243
Software expense	246		210		215		221		216
Amortization of intangibles	142		144		172		170		178
Equipment expense	122		113		121		127		120
Marketing and customer development	66		66		58		75		56
Operating lease depreciation	47		50		54		56		77
Loan-related expense	55		54		65		59		56
Regulatory costs	31		25		32		34		30
Merger-related and restructuring charges	297		141		308		236		209
Loss (gain) on early extinguishment of debt	—		(3)		—		—		235
Other expense	275		109		100		163		161
Total noninterest expense	4,011		3,610		3,833		3,755		3,878
Earnings
Income before income taxes	2,073		1,824		1,641		1,396		1,149
Provision for income taxes	415		351		311		255		191
Net income	1,658		1,473		1,330		1,141		958
Noncontrolling interests	1		(4)		1		3		3
Net income available to the bank holding company	1,657		1,477		1,329		1,138		955
Preferred stock dividends and other	98		143		101		70		53
Net income available to common shareholders	$	1,559	$	1,334	$	1,228	$	1,068	$	902
Earnings Per Common Share
Basic	$	1.16	$	0.99	$	0.91	$	0.79	$	0.67
Diluted	1.16		0.98		0.90		0.79		0.67
Weighted Average Shares Outstanding
Basic	1,338,302		1,345,666		1,348,493		1,347,916		1,347,512
Diluted	1,349,492		1,358,932		1,361,763		1,358,122		1,355,834

4 Truist Financial Corporation


Segment Financial Performance - Preliminary
	Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020
Consumer Banking and Wealth
Net interest income (expense)	$	1,688	$	1,752	$	1,818	$	1,856	$	1,843
Net intersegment interest income (expense)	430		383		380		341		320
Segment net interest income	2,118		2,135		2,198		2,197		2,163
Allocated provision for credit losses	(4)		100		116		181		270
Noninterest income	925		920		997		997		1,008
Noninterest expense	1,922		1,910		1,949		1,930		1,969
Income (loss) before income taxes	1,125		1,045		1,130		1,083		932
Provision (benefit) for income taxes	263		245		266		256		220
Segment net income (loss)	$	862	$	800	$	864	$	827	$	712




Corporate and Commercial Banking
Net interest income (expense)	$	1,182	$	1,208	$	1,271	$	1,235	$	1,351
Net intersegment interest income (expense)	32		6		15		42		(59)
Segment net interest income	1,214		1,214		1,286		1,277		1,292
Allocated provision for credit losses	(399)		(35)		60		311		534
Noninterest income	809		694		789		608		621
Noninterest expense	850		781		842		852		886
Income (loss) before income taxes	1,572		1,162		1,173		722		493
Provision (benefit) for income taxes	345		250		257		146		91
Segment net income (loss)	$	1,227	$	912	$	916	$	576	$	402




Insurance Holdings
Net interest income (expense)	$	25	$	24	$	26	$	31	$	33
Net intersegment interest income (expense)	(4)		(4)		(4)		(7)		(10)
Segment net interest income	21		20		22		24		23
Allocated provision for credit losses	(1)		1		2		—		6
Noninterest income	698		633		562		524		598
Noninterest expense	515		479		451		446		448
Income (loss) before income taxes	205		173		131		102		167
Provision (benefit) for income taxes	49		42		32		25		41
Segment net income (loss)	$	156	$	131	$	99	$	77	$	126
















Other, Treasury & Corporate (1)
Net interest income (expense)	$	350	$	301	$	251	$	240	$	221
Net intersegment interest income (expense)	(458)		(385)		(391)		(376)		(251)
Segment net interest income	(108)		(84)		(140)		(136)		(30)
Allocated provision for credit losses	(30)		(18)		(1)		(71)		34
Noninterest income	(27)		(50)		(63)		81		196
Noninterest expense	724		440		591		527		575
Income (loss) before income taxes	(829)		(556)		(793)		(511)		(443)
Provision (benefit) for income taxes	(242)		(186)		(244)		(172)		(161)
Segment net income (loss)	$	(587)	$	(370)	$	(549)	$	(339)	$	(282)


Total Truist Financial Corporation
Net interest income (expense)	$	3,245	$	3,285	$	3,366	$	3,362	$	3,448
Net intersegment interest income (expense)	—		—		—		—		—
Segment net interest income	3,245		3,285		3,366		3,362		3,448
Allocated provision for credit losses	(434)		48		177		421		844
Noninterest income	2,405		2,197		2,285		2,210		2,423
Noninterest expense	4,011		3,610		3,833		3,755		3,878
Income (loss) before income taxes	2,073		1,824		1,641		1,396		1,149
Provision (benefit) for income taxes	415		351		311		255		191
Net income	$	1,658	$	1,473	$	1,330	$	1,141	$	958

(1) Includes financial data from subsidiaries below the quantitative and qualitative thresholds requiring disclosure.

Truist Financial Corporation 5


Consolidated Ending Balance Sheets - Five Quarter Trend
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020
Assets
Cash and due from banks	$	5,077	$	5,097	$	5,029	$	4,194	$	5,116
Interest-bearing deposits with banks	21,480		27,035		13,839		32,914		36,081
Securities borrowed or purchased under resale agreements	1,242		1,349		1,745		1,300		1,345
Trading assets at fair value	5,945		5,094		3,872		4,670		3,824
Securities available for sale at fair value	139,879		123,807		120,788		86,132		77,805

Loans and leases:
Commercial:
Commercial and industrial	130,924		135,432		138,354		140,874		147,141
CRE	25,399		25,899		26,595		27,474		27,963
Commercial construction	6,160		6,559		6,491		6,772		6,891
Lease financing	4,957		4,883		5,240		5,493		5,783
Consumer:
Residential mortgage	44,036		44,298		47,272		50,379		51,671
Residential home equity and direct	25,334		25,333		26,064		26,558		26,935
Indirect auto	26,696		26,438		26,150		25,269		24,509
Indirect other	11,039		10,631		11,177		11,527		11,592
Student	7,341		7,478		7,552		7,480		7,484
Credit card	4,599		4,560		4,839		4,801		4,856

Total loans and leases held for investment	286,485		291,511		299,734		306,627		314,825
Loans held for sale	3,009		5,668		6,059		5,522		6,323
Total loans and leases	289,494		297,179		305,793		312,149		321,148
Allowance for loan and lease losses	(5,121)		(5,662)		(5,835)		(5,863)		(5,702)
Premises and equipment	3,699		3,787		3,870		3,968		4,002
Goodwill	24,374		24,356		24,447		23,869		23,882
Core deposit and other intangible assets	2,665		2,825		2,984		2,840		3,016
Mortgage servicing rights	2,231		2,365		2,023		1,991		2,077
Other assets	30,999		30,305		30,673		31,019		31,742
Total assets	$	521,964	$	517,537	$	509,228	$	499,183	$	504,336
Liabilities
Deposits:
Noninterest-bearing deposits	$	138,623	$	136,555	$	127,629	$	124,297	$	122,694
Interest checking	107,993		107,082		105,269		98,694		99,005
Money market and savings	134,118		132,733		126,238		121,856		123,974
Time deposits	17,545		19,192		21,941		25,900		30,562

Total deposits	398,279		395,562		381,077		370,747		376,235
Short-term borrowings	5,652		5,889		6,092		6,244		5,700
Long-term debt	37,969		37,753		39,597		41,008		42,133
Other liabilities	11,728		10,457		11,550		11,211		11,385
Total liabilities	453,628		449,661		438,316		429,210		435,453
Shareholders' Equity:
Preferred stock	6,673		7,124		8,048		8,048		7,143
Common stock	6,674		6,724		6,745		6,741		6,738
Additional paid-in capital	34,898		35,360		35,843		35,774		35,676
Retained earnings	21,139		20,184		19,455		18,834		18,373
Accumulated other comprehensive loss	(1,048)		(1,516)		716		470		847
Noncontrolling interests	—		—		105		106		106
Total shareholders' equity	68,336		67,876		70,912		69,973		68,883
Total liabilities and shareholders' equity	$	521,964	$	517,537	$	509,228	$	499,183	$	504,336

6 Truist Financial Corporation


Average Balance Sheets
	Quarter Ended								Year-to-Date
	June 30				Change				June 30				Change
(Dollars in millions)	2021		2020		$		%		2021		2020		$		%
Assets
Securities available for sale at amortized cost:
U.S. Treasury	$	9,070	$	2,237	$	6,833	NM		$	5,435	$	2,255	$	3,180	141.0	%
U.S. government-sponsored entities (GSE)	1,840		1,844		(4)		(0.2)		1,840		1,850		(10)		(0.5)
Mortgage-backed securities issued by GSE	124,251		70,374		53,877		76.6		121,228		70,595		50,633		71.7
States and political subdivisions	437		505		(68)		(13.5)		441		518		(77)		(14.9)
Non-agency mortgage-backed	17		162		(145)		(89.5)		8		174		(166)		(95.4)
Other	32		37		(5)		(13.5)		32		38		(6)		(15.8)
Total securities	135,647		75,159		60,488		80.5		128,984		75,430		53,554		71.0
Loans and leases:
Commercial:
Commercial and industrial	133,646		152,991		(19,345)		(12.6)		134,843		142,367		(7,524)		(5.3)
CRE	25,645		27,804		(2,159)		(7.8)		25,926		27,425		(1,499)		(5.5)
Commercial construction	6,359		6,748		(389)		(5.8)		6,457		6,578		(121)		(1.8)
Lease financing	4,893		5,922		(1,029)		(17.4)		4,933		5,996		(1,063)		(17.7)
Consumer:
Residential mortgage	43,605		52,380		(8,775)		(16.8)		44,708		52,687		(7,979)		(15.1)
Residential home equity and direct	25,238		27,199		(1,961)		(7.2)		25,447		27,381		(1,934)		(7.1)
Indirect auto	26,444		24,721		1,723		7.0		26,403		24,848		1,555		6.3
Indirect other	10,797		11,282		(485)		(4.3)		10,823		11,116		(293)		(2.6)
Student	7,396		7,633		(237)		(3.1)		7,457		7,710		(253)		(3.3)
Credit card	4,552		4,949		(397)		(8.0)		4,598		5,242		(644)		(12.3)

Total loans and leases held for investment	288,575		321,629		(33,054)		(10.3)		291,595		311,350		(19,755)		(6.3)
Loans held for sale	4,390		4,806		(416)		(8.7)		4,640		5,741		(1,101)		(19.2)
Total loans and leases	292,965		326,435		(33,470)		(10.3)		296,235		317,091		(20,856)		(6.6)

Interest earning trading assets	5,061		3,700		1,361		36.8		4,902		5,017		(115)		(2.3)
Other earning assets	21,592		41,531		(19,939)		(48.0)		19,515		32,641		(13,126)		(40.2)
Total earning assets	455,265		446,825		8,440		1.9		449,636		430,179		19,457		4.5
Nonearning assets	63,509		67,895		(4,386)		(6.5)		64,196		65,956		(1,760)		(2.7)
Total assets	$	518,774	$	514,720	$	4,054	0.8	%	$	513,832	$	496,135	$	17,697	3.6	%
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	137,892	$	113,875	$	24,017	21.1	%	$	133,261	$	103,505	$	29,756	28.7	%
Interest checking	106,121		97,863		8,258		8.4		105,436		91,435		14,001		15.3
Money market and savings	134,029		126,071		7,958		6.3		131,680		123,504		8,176		6.6
Time deposits	18,213		33,009		(14,796)		(44.8)		19,379		34,289		(14,910)		(43.5)

Total deposits	396,255		370,818		25,437		6.9		389,756		352,733		37,023		10.5
Short-term borrowings	6,168		8,998		(2,830)		(31.5)		6,448		13,949		(7,501)		(53.8)
Long-term debt	36,873		55,537		(18,664)		(33.6)		37,344		51,042		(13,698)		(26.8)
Other liabilities	10,813		12,504		(1,691)		(13.5)		10,932		12,274		(1,342)		(10.9)
Total liabilities	450,109		447,857		2,252		0.5		444,480		429,998		14,482		3.4
Shareholders' equity	68,665		66,863		1,802		2.7		69,352		66,137		3,215		4.9
Total liabilities and shareholders' equity	$	518,774	$	514,720	$	4,054	0.8	%	$	513,832	$	496,135	$	17,697	3.6	%
Average balances exclude basis adjustments for fair value hedges.
NM - not meaningful

Truist Financial Corporation 7


Average Balance Sheets - Five Quarter Trend
	Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020
Assets
Securities available for sale at amortized cost:
U.S. Treasury	$	9,070	$	1,759	$	2,049	$	2,218	$	2,237
U.S. government-sponsored entities (GSE)	1,840		1,839		1,841		1,842		1,844
Mortgage-backed securities issued by GSE	124,251		118,171		97,660		75,232		70,374
States and political subdivisions	437		444		469		499		505
Non-agency mortgage-backed	17		—		—		—		162
Other	32		33		34		37		37
Total securities	135,647		122,246		102,053		79,828		75,159
Loans and leases:
Commercial:
Commercial and industrial	133,646		136,051		139,223		143,452		152,991
CRE	25,645		26,211		27,030		27,761		27,804
Commercial construction	6,359		6,557		6,616		6,861		6,748
Lease financing	4,893		4,975		5,401		5,626		5,922
Consumer:
Residential mortgage	43,605		45,823		48,847		51,500		52,380
Residential home equity and direct	25,238		25,658		26,327		26,726		27,199
Indirect auto	26,444		26,363		25,788		24,732		24,721
Indirect other	10,797		10,848		11,291		11,530		11,282
Student	7,396		7,519		7,519		7,446		7,633
Credit card	4,552		4,645		4,818		4,810		4,949

Total loans and leases held for investment	288,575		294,650		302,860		310,444		321,629
Loans held for sale	4,390		4,891		5,328		5,247		4,806
Total loans and leases	292,965		299,541		308,188		315,691		326,435

Interest earning trading assets	5,061		4,742		4,538		4,056		3,700
Other earning assets	21,592		17,417		23,887		35,819		41,531
Total earning assets	455,265		443,946		438,666		435,394		446,825
Nonearning assets	63,509		64,887		64,515		65,432		67,895
Total assets	$	518,774	$	508,833	$	503,181	$	500,826	$	514,720
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing deposits	$	137,892	$	128,579	$	127,103	$	123,966	$	113,875
Interest checking	106,121		104,744		99,866		96,707		97,863
Money market and savings	134,029		129,303		124,692		123,598		126,071
Time deposits	18,213		20,559		23,605		27,940		33,009

Total deposits	396,255		383,185		375,266		372,211		370,818
Short-term borrowings	6,168		6,731		6,493		6,209		8,998
Long-term debt	36,873		37,820		40,284		40,919		55,537
Other liabilities	10,813		11,050		10,993		11,853		12,504
Total liabilities	450,109		438,786		433,036		431,192		447,857
Shareholders' equity	68,665		70,047		70,145		69,634		66,863
Total liabilities and shareholders' equity	$	518,774	$	508,833	$	503,181	$	500,826	$	514,720
Average balances exclude basis adjustments for fair value hedges.

8 Truist Financial Corporation


Average Balances and Rates - Quarters
	Quarter Ended
	June 30, 2021						March 31, 2021
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities available for sale at amortized cost:
U.S. Treasury	$	9,070	$	16	0.73	%	$	1,759	$	4	0.89	%
U.S. government-sponsored entities (GSE)	1,840		11		2.33		1,839		11		2.33
Mortgage-backed securities issued by GSE	124,251		466		1.50		118,171		426		1.44
States and political subdivisions	437		4		3.55		444		4		3.52
Non-agency mortgage-backed	17		—		2.46		—		—		—
Other	32		—		1.88		33		—		1.92
Total securities	135,647		497		1.47		122,246		445		1.45
Loans and leases:
Commercial:
Commercial and industrial	133,646		1,024		3.07		136,051		1,040		3.10
CRE	25,645		183		2.84		26,211		189		2.90
Commercial construction	6,359		45		2.95		6,557		48		3.04
Lease financing	4,893		48		3.91		4,975		53		4.28
Consumer:
Residential mortgage	43,605		474		4.35		45,823		507		4.42
Residential home equity and direct	25,238		361		5.74		25,658		368		5.81
Indirect auto	26,444		409		6.20		26,363		426		6.56
Indirect other	10,797		185		6.86		10,848		187		6.98
Student	7,396		72		3.90		7,519		73		3.96
Credit card	4,552		99		8.73		4,645		106		9.24

Total loans and leases held for investment	288,575		2,900		4.03		294,650		2,997		4.11
Loans held for sale	4,390		28		2.57		4,891		32		2.59
Total loans and leases	292,965		2,928		4.01		299,541		3,029		4.09

Interest earning trading assets	5,061		37		2.82		4,742		32		2.79
Other earning assets	21,592		9		0.19		17,417		16		0.37
Total earning assets	455,265		3,471		3.06		443,946		3,522		3.20
Nonearning assets	63,509						64,887
Total assets	$	518,774					$	508,833
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	106,121	15		0.06		$	104,744	15		0.06
Money market and savings	134,029		8		0.03		129,303		10		0.03
Time deposits	18,213		13		0.28		20,559		22		0.44

Total interest-bearing deposits (3)	258,363		36		0.06		254,606		47		0.07
Short-term borrowings	6,168		15		0.98		6,731		14		0.82
Long-term debt	36,873		147		1.60		37,820		148		1.57
Total interest-bearing liabilities	301,404		198		0.26		299,157		209		0.28
Noninterest-bearing deposits (3)	137,892						128,579
Other liabilities	10,813						11,050
Shareholders' equity	68,665						70,047
Total liabilities and shareholders' equity	$	518,774					$	508,833
Average interest-rate spread					2.80						2.92

Net interest income/ net interest margin - taxable equivalent			$	3,273	2.88	%			$	3,313	3.01	%
Taxable-equivalent adjustment			$	28					$	28
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.

(3) Total deposit costs were 0.04% and 0.05% for the three months ended June 30, 2021 and March 31, 2021, respectively.

Truist Financial Corporation 9


Average Balances and Rates - Quarters
	Quarter Ended
	December 31, 2020						September 30, 2020						June 30, 2020
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities available for sale at amortized cost:
U.S. Treasury	$	2,049	$	9	1.62	%	$	2,218	$	10	1.78	%	$	2,237	$	10	1.88	%
U.S. government-sponsored entities (GSE)	1,841		11		2.33		1,842		10		2.33		1,844		12		2.33
Mortgage-backed securities issued by GSE	97,660		385		1.58		75,232		366		1.95		70,374		413		2.35
States and political subdivisions	469		3		3.52		499		7		5.03		505		4		3.57
Non-agency mortgage-backed	—		—		—		—		—		—		162		7		16.71
Other	34		—		1.98		37		1		1.99		37		—		2.27
Total securities	102,053		408		1.60		79,828		394		1.97		75,159		446		2.37
Loans and leases:
Commercial:
Commercial and industrial	139,223		1,091		3.12		143,452		1,087		3.02		152,991		1,204		3.16
CRE	27,030		197		2.88		27,761		203		2.88		27,804		227		3.26
Commercial construction	6,616		51		3.13		6,861		55		3.26		6,748		61		3.70
Lease financing	5,401		65		4.82		5,626		52		3.71		5,922		70		4.71
Consumer:
Residential mortgage	48,847		542		4.44		51,500		576		4.47		52,380		608		4.65
Residential home equity and direct	26,327		388		5.86		26,726		394		5.86		27,199		391		5.78
Indirect auto	25,788		416		6.41		24,732		405		6.51		24,721		407		6.63
Indirect other	11,291		195		6.87		11,530		204		7.05		11,282		201		7.18
Student	7,519		80		4.23		7,446		80		4.30		7,633		87		4.55
Credit card	4,818		114		9.35		4,810		109		9.03		4,949		114		9.27

Total loans and leases held for investment	302,860		3,139		4.13		310,444		3,165		4.06		321,629		3,370		4.21
Loans held for sale	5,328		47		3.54		5,247		37		2.78		4,806		36		3.04
Total loans and leases	308,188		3,186		4.12		315,691		3,202		4.04		326,435		3,406		4.19

Interest earning trading assets	4,538		33		2.89		4,056		32		3.23		3,700		39		4.19
Other earning assets	23,887		12		0.20		35,819		24		0.26		41,531		28		0.28
Total earning assets	438,666		3,639		3.31		435,394		3,652		3.34		446,825		3,919		3.52
Nonearning assets	64,515						65,432						67,895
Total assets	$	503,181					$	500,826					$	514,720
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	99,866	17		0.07		$	96,707	15		0.06		$	97,863	55		0.23
Money market and savings	124,692		10		0.03		123,598		19		0.06		126,071		57		0.18
Time deposits	23,605		40		0.66		27,940		62		0.89		33,009		89		1.09

Total interest-bearing deposits (3)	248,163		67		0.11		248,245		96		0.15		256,943		201		0.32
Short-term borrowings	6,493		13		0.77		6,209		13		0.85		8,998		28		1.24
Long-term debt	40,284		165		1.64		40,919		152		1.48		55,537		211		1.52
Total interest-bearing liabilities	294,940		245		0.33		295,373		261		0.35		321,478		440		0.55
Noninterest-bearing deposits (3)	127,103						123,966						113,875
Other liabilities	10,993						11,853						12,504
Shareholders' equity	70,145						69,634						66,863
Total liabilities and shareholders' equity	$	503,181					$	500,826					$	514,720
Average interest-rate spread					2.98						2.99						2.97

Net interest income/ net interest margin - taxable equivalent			$	3,394	3.08	%			$	3,391	3.10	%			$	3,479	3.13	%
Taxable-equivalent adjustment			$	28					$	29					$	31
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.

(3) Total deposit costs were 0.07%, 0.10%, and 0.22% for the three months ended December 31, 2020, September 30, 2020, and June 30, 2020, respectively.

10 Truist Financial Corporation


Average Balances and Rates - Year-To-Date
	Year-to-Date
	June 30, 2021						June 30, 2020
	(1)		(2) Interest		(2)		(1)		(2) Interest		(2)
	Average		Income/		Yields/		Average		Income/		Yields/
(Dollars in millions)	Balances		Expense		Rates		Balances		Expense		Rates
Assets
Securities available for sale at amortized cost:
U.S. Treasury	$	5,435	$	20	0.76	%	$	2,255	$	21	1.91	%
U.S. government-sponsored entities (GSE)	1,840		22		2.33		1,850		22		2.33
Mortgage-backed securities issued by GSE	121,228		892		1.47		70,595		874		2.48
States and political subdivisions	441		8		3.54		518		9		3.57
Non-agency mortgage-backed	8		—		2.45		174		15		16.71
Other	32		—		1.90		38		—		2.65
Total securities	128,984		942		1.46		75,430		941		2.49
Loans and leases:
Commercial:
Commercial and industrial	134,843		2,064		3.08		142,367		2,623		3.70
CRE	25,926		372		2.87		27,425		514		3.75
Commercial construction	6,457		93		2.99		6,578		137		4.27
Lease financing	4,933		101		4.09		5,996		135		4.49
Consumer:
Residential mortgage	44,708		981		4.39		52,687		1,202		4.56
Residential home equity and direct	25,447		729		5.78		27,381		843		6.19
Indirect auto	26,403		835		6.38		24,848		835		6.76
Indirect other	10,823		372		6.92		11,116		402		7.27
Student	7,457		145		3.93		7,710		191		4.97
Credit card	4,598		205		8.99		5,242		247		9.49

Total loans and leases held for investment	291,595		5,897		4.07		311,350		7,129		4.60
Loans held for sale	4,640		60		2.58		5,741		89		3.10
Total loans and leases	296,235		5,957		4.05		317,091		7,218		4.57

Interest earning trading assets	4,902		69		2.81		5,017		103		4.09
Other earning assets	19,515		25		0.27		32,641		120		0.74
Total earning assets	449,636		6,993		3.13		430,179		8,382		3.91
Nonearning assets	64,196						65,956
Total assets	$	513,832					$	496,135
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Interest checking	$	105,436	30		0.06		$	91,435	184		0.41
Money market and savings	131,680		18		0.03		123,504		235		0.38
Time deposits	19,379		35		0.36		34,289		203		1.19

Total interest-bearing deposits (3)	256,495		83		0.07		249,228		622		0.50
Short-term borrowings	6,448		29		0.90		13,949		111		1.60
Long-term debt	37,344		295		1.58		51,042		483		1.90
Total interest-bearing liabilities	300,287		407		0.27		314,219		1,216		0.78
Noninterest-bearing deposits (3)	133,261						103,505
Other liabilities	10,932						12,274
Shareholders' equity	69,352						66,137
Total liabilities and shareholders' equity	$	513,832					$	496,135
Average interest-rate spread					2.86						3.13

Net interest income/ net interest margin - taxable equivalent			$	6,586	2.95	%			$	7,166	3.34	%
Taxable-equivalent adjustment			$	56					$	68
Applicable ratios are annualized.
(1) Excludes basis adjustments for fair value hedges.
(2) Amounts are on a taxable-equivalent basis utilizing the federal income tax rate of 21% for the periods presented. Interest income includes certain fees, deferred costs, and dividends.

(3) Total deposit costs were 0.04% and 0.35% for the six months ended June 30, 2021 and 2020, respectively.

Truist Financial Corporation 11


Credit Quality
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020
Nonperforming Assets
Nonaccrual loans and leases:
Commercial:
Commercial and industrial	$	397	$	451	$	532	$	507	$	428
CRE	25		58		75		52		42
Commercial construction	12		13		14		7		13
Lease financing	5		23		28		32		56
Consumer:
Residential mortgage	302		290		316		205		198
Residential home equity and direct	165		172		205		180		192
Indirect auto	148		158		155		137		155
Indirect other	6		6		5		4		3


Total nonaccrual loans and leases held for investment	1,060		1,171		1,330		1,124		1,087
Loans held for sale	78		72		5		130		102
Total nonaccrual loans and leases	1,138		1,243		1,335		1,254		1,189
Foreclosed real estate	13		18		20		30		43

Other foreclosed property	41		38		32		30		20
Total nonperforming assets	$	1,192	$	1,299	$	1,387	$	1,314	$	1,252
Troubled Debt Restructurings (TDRs)
Performing TDRs:
Commercial:
Commercial and industrial	$	144	$	142	$	78	$	84	$	57
CRE	24		47		47		36		22
Commercial construction	—		—		—		1		36
Lease financing	58		59		60		1		1
Consumer:
Residential mortgage	727		733		648		640		533
Residential home equity and direct	107		109		88		71		71
Indirect auto	389		399		392		336		342
Indirect other	7		7		6		5		4
Student	13		8		5		5		4
Credit card	32		35		37		38		37
Total performing TDRs	1,501		1,539		1,361		1,217		1,107
Nonperforming TDRs	190		207		164		140		111
Total TDRs	$	1,691	$	1,746	$	1,525	$	1,357	$	1,218
Loans 90 Days or More Past Due and Still Accruing
Commercial:
Commercial and industrial	$	14	$	14	$	13	$	6	$	9
CRE	—		—		—		8		3

Lease financing	—		—		—		—		1
Consumer:
Residential mortgage	976		975		841		573		521
Residential home equity and direct	7		11		10		5		9
Indirect auto	2		2		2		8		10
Indirect other	1		1		2		3		3
Student	1,046		1,037		1,111		570		478
Credit card	22		32		29		24		38

Total loans 90 days past due and still accruing	$	2,068	$	2,072	$	2,008	$	1,197	$	1,072
Loans 30-89 Days Past Due
Commercial:
Commercial and industrial	$	128	$	117	$	83	$	155	$	282
CRE	7		9		14		7		6
Commercial construction	1		4		5		—		1
Lease financing	18		35		6		9		10
Consumer:
Residential mortgage	543		577		782		796		703
Residential home equity and direct	73		82		98		103		108
Indirect auto	428		328		495		321		265
Indirect other	47		45		68		52		50
Student	548		556		618		666		442
Credit card	31		35		51		39		34

Total loans 30-89 days past due	$	1,824	$	1,788	$	2,220	$	2,148	$	1,901

12 Truist Financial Corporation



	As of/For the Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020
Allowance for Credit Losses
Beginning balance	$	6,011	$	6,199	$	6,229	$	6,133	$	5,611


Provision for credit losses	(434)		48		177		421		844

Charge-offs:
Commercial:
Commercial and industrial	(51)		(73)		(84)		(112)		(123)
CRE	—		(4)		(19)		(44)		(14)
Commercial construction	—		(2)		(8)		(19)		—
Lease financing	(2)		(6)		(4)		(44)		(4)
Consumer:
Residential mortgage	(4)		(11)		(6)		(4)		(35)
Residential home equity and direct	(57)		(55)		(46)		(52)		(65)
Indirect auto	(69)		(105)		(84)		(72)		(80)
Indirect other	(11)		(17)		(14)		(8)		(20)
Student	(3)		(3)		(3)		(6)		(6)
Credit card	(42)		(40)		(35)		(44)		(50)

Total charge-offs	(239)		(316)		(303)		(405)		(397)
Recoveries:
Commercial:
Commercial and industrial	20		19		34		20		21
CRE	4		1		1		—		4
Commercial construction	1		1		1		2		7
Lease financing	3		—		—		4		—
Consumer:
Residential mortgage	5		2		3		3		2
Residential home equity and direct	20		18		20		16		15
Indirect auto	27		22		24		22		18
Indirect other	7		6		5		4		7
Student	—		—		—		—		1
Credit card	10		9		10		8		6

Total recoveries	97		78		98		79		81
Net charge-offs	(142)		(238)		(205)		(326)		(316)
Other	1		2		(2)		1		(6)
Ending balance	$	5,436	$	6,011	$	6,199	$	6,229	$	6,133
Allowance for Credit Losses:
Allowance for loan and lease losses (excluding PCD loans)	$	4,979	$	5,506	$	5,668	$	5,675	$	5,408
Allowance for PCD loans	142		156		167		188		294
Reserve for unfunded lending commitments (RUFC)	315		349		364		366		431
Total	$	5,436	$	6,011	$	6,199	$	6,229	$	6,133

Truist Financial Corporation 13



















































	As of/For the Year-to-Date
	Period Ended June 30
(Dollars in millions)	2021		2020
Allowance for Credit Losses
Beginning balance	$	6,199	$	1,889
CECL adoption - impact to retained earnings before tax	—		2,762
CECL adoption - reserves on PCD assets	—		378
Provision for credit losses	(386)		1,737
Charge-offs:
Commercial:
Commercial and industrial	(124)		(162)
CRE	(4)		(15)
Commercial construction	(2)		(3)
Lease financing	(8)		(6)
Consumer:
Residential mortgage	(15)		(46)
Residential home equity and direct	(112)		(133)
Indirect auto	(174)		(222)
Indirect other	(28)		(38)
Student	(6)		(14)
Credit card	(82)		(103)

Total charge-offs	(555)		(742)
Recoveries:
Commercial:
Commercial and industrial	39		38
CRE	5		4
Commercial construction	2		8
Lease financing	3		—
Consumer:
Residential mortgage	7		4
Residential home equity and direct	38		30
Indirect auto	49		41
Indirect other	13		14
Student	—		1
Credit card	19		14

Total recoveries	175		154
Net charge-offs	(380)		(588)
Other	3		(45)
Ending balance	$	5,436	$	6,133



	As of/For the Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
	2021		2021		2020		2020		2020
Asset Quality Ratios
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.64	%	0.61	%	0.74	%	0.70	%	0.60	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.72		0.71		0.67		0.39		0.34
Nonperforming loans and leases as a percentage of loans and leases held for investment	0.37		0.40		0.44		0.37		0.35
Nonperforming loans and leases as a percentage of loans and leases (1)	0.39		0.42		0.44		0.40		0.37
Nonperforming assets as a percentage of:
Total assets (1)	0.23		0.25		0.27		0.26		0.25
Loans and leases plus foreclosed property	0.39		0.42		0.46		0.39		0.37
Net charge-offs as a percentage of average loans and leases (2)	0.20		0.33		0.27		0.42		0.39
Allowance for loan and lease losses as a percentage of loans and leases	1.79		1.94		1.95		1.91		1.81
Ratio of allowance for loan and lease losses to:
Net charge-offs	8.98X		5.87X		7.15X		4.52X		4.49X
Nonperforming loans and leases	4.83X		4.84X		4.39X		5.22X		5.24X
Asset Quality Ratios (Excluding PPP and other Government Guaranteed)
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.04	%	0.04	%	0.04	%	0.03	%	0.04	%
Applicable ratios are annualized.
(1)Includes loans held for sale.
(2)The third quarter of 2020 includes $97 million of charge-offs on PCD assets directly related to the implementation of CECL.
							As of/For the Year-to-Date
							Period Ended June 30
							2021		2020
Asset Quality Ratios
Net charge-offs as a percentage of average loans and leases							0.26	%	0.38	%
Ratio of allowance for loan and lease losses to net charge-offs							6.68X		4.82X
Applicable ratios are annualized.

14 Truist Financial Corporation



	June 30, 2021
					Past Due 30-89					Past Due 90+
(Dollars in millions)	Current Status				Days					Days					Total
Troubled Debt Restructurings
Performing TDRs: (1)
Commercial:
Commercial and industrial	$	144	100.0	%	$	—		—	%	$	—		—	%	$	144
CRE	24		100.0		—			—		—			—		24

Lease financing	58		100.0		—			—		—			—		58
Consumer:
Residential mortgage	475		65.3		95			13.1		157			21.6		727
Residential home equity and direct	101		94.4		6			5.6		—			—		107
Indirect auto	333		85.6		56			14.4		—			—		389
Indirect other	6		85.7		1			14.3		—			—		7
Student	13		100.0		—			—		—			—		13
Credit card	29		90.6		2			6.3		1			3.1		32
Total performing TDRs (1)	1,183		78.8		160			10.7		158			10.5		1,501
Nonperforming TDRs (2)	89		46.9		16			8.4		85			44.7		190
Total TDRs (1)(2)	$	1,272	75.2	%	$	176		10.4	%	$	243		14.4	%	$	1,691
(1)Past due performing TDRs are included in past due disclosures.
(2)Nonperforming TDRs are included in nonaccrual loan disclosures.

					Quarter Ended
					June 30			March 31		Dec. 31			Sept. 30		June 30
					2021			2021		2020			2020		2020
Net Charge-offs as a Percentage of Average Loans and Leases:
Commercial:
Commercial and industrial					0.09		%	0.16	%	0.15		%	0.25	%	0.27		%
CRE					(0.05)			0.04		0.27			0.63		0.15
Commercial construction					(0.06)			0.08		0.39			1.02		(0.43)
Lease financing					(0.04)			0.44		0.20			2.92		0.33
Consumer:
Residential mortgage					(0.01)			0.08		0.03			0.01		0.25
Residential home equity and direct					0.59			0.58		0.39			0.53		0.73
Indirect auto					0.63			1.28		0.92			0.76		1.03
Indirect other					0.17			0.39		0.31			0.21		0.41
Student					0.16			0.16		0.17			0.28		0.31
Credit card					2.75			2.74		2.11			3.00		3.50

Total loans and leases					0.20			0.33		0.27			0.42		0.39
Applicable ratios are annualized.


Credit Quality - Allowance with Fair Value Marks

	As of/For the Quarter Ended
	June 30			March 31			Dec. 31			Sept. 30			June 30
(Dollars in millions)	2021			2021			2020			2020			2020

ALLL	$	5,121		$	5,662		$	5,835		$	5,863		$	5,702

Unamortized fair value mark (1)	1,777			2,067			2,395			2,676			3,077
Allowance plus unamortized fair value mark	$	6,898		$	7,729		$	8,230		$	8,539		$	8,779

Loans and leases held for investment	$	286,485		$	291,511		$	299,734		$	306,627		$	314,825
Unamortized fair value mark (1)	1,777			2,067			2,395			2,676			3,077
Gross loans and leases	$	288,262		$	293,578		$	302,129		$	309,303		$	317,902

Allowance for loan and lease losses as a percentage of loans and leases - GAAP	1.79		%	1.94		%	1.95		%	1.91		%	1.81		%
Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases - Adjusted (1) (2)	2.39			2.63			2.72			2.76			2.76

(1)Unamortized fair value mark includes credit, interest rate and liquidity components.

(2)Allowance for loan and lease losses and unamortized fair value mark as a percentage of gross loans and leases is a non-GAAP measurement of credit reserves that is calculated by adjusting the ALLL and loans and leases held for investment by the unamortized fair value mark. Truist's management uses these measures to assess loss absorption capacity.

Truist Financial Corporation 15


Rollforward of Intangible Assets and Selected Fair Value Marks (1)
	As of/For the Quarter Ended
	June 30		March 31		Dec. 31		Sept. 30		June 30
(Dollars in millions)	2021		2021		2020		2020		2020







Loans and Leases (2)
Beginning balance unamortized fair value mark	$	(2,067)	$	(2,395)	$	(2,676)	$	(3,077)	$	(3,539)

Accretion	285		316		356		367		440

Purchase accounting adjustments and other activity	5		12		(75)		34		22
Ending balance	$	(1,777)	$	(2,067)	$	(2,395)	$	(2,676)	$	(3,077)
Core deposit and other intangible assets
Beginning balance	$	2,825	$	2,984	$	2,840	$	3,016	$	3,168

Additions - acquisitions	—		14		320		—		—
Amortization of intangibles	(142)		(144)		(172)		(170)		(178)
Amortization in net occupancy expense	(3)		(3)		(4)		(6)		(6)
Purchase accounting adjustments and other activity	(15)		(26)		—		—		32
Ending balance	$	2,665	$	2,825	$	2,984	$	2,840	$	3,016
Deposits (3)
Beginning balance unamortized fair value mark	$	(15)	$	(19)	$	(26)	$	(37)	$	(54)

Amortization	3		4		7		11		17
Ending balance	$	(12)	$	(15)	$	(19)	$	(26)	$	(37)
Long-Term Debt (3)
Beginning balance unamortized fair value mark	$	(196)	$	(216)	$	(238)	$	(262)	$	(285)

Amortization	20		20		22		24		23

Ending balance	$	(176)	$	(196)	$	(216)	$	(238)	$	(262)

(1)Includes the merger with SunTrust. This summary includes only selected information and does not represent all purchase accounting adjustments.

(2)Purchase accounting marks on loans and leases includes credit, interest and liquidity components, and are generally recognized using the level-yield or straight-line method over the remaining life of the individual loans or recognized in full in the event of prepayment.

(3)Purchase accounting marks on liabilities represents interest rate marks on time deposits and long-term debt and are recognized using the level-yield method over the term of the liability.


Capital Information - Five Quarter Trend
	As of/For the Quarter Ended
	June 30			March 31			Dec. 31			Sept. 30			June 30
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2020			2020			2020
Selected Capital Information	(preliminary)
Risk-based capital:
Common equity tier 1	$	38,688		$	38,267		$	37,869		$	37,879		$	37,107
Tier 1	45,359			45,388			45,915			45,925			44,248
Total	53,640			54,245			55,011			55,030			53,436
Risk-weighted assets	379,620			378,458			379,153			377,420			382,826
Average quarterly assets for leverage ratio	496,390			484,961			478,608			476,868			490,203
Average quarterly assets for supplementary leverage ratio	576,858			546,470			530,716			513,230			518,010
Risk-based capital ratios:
Common equity tier 1	10.2		%	10.1		%	10.0		%	10.0		%	9.7		%
Tier 1	11.9			12.0			12.1			12.2			11.6
Total	14.1			14.3			14.5			14.6			14.0
Leverage capital ratio	9.1			9.4			9.6			9.6			9.0
Supplementary leverage	7.9			8.3			8.7			8.9			8.5
Equity as a percentage of total assets	13.1			13.1			13.9			14.0			13.7
Common equity per common share	$	46.20		$	45.17		$	46.52		$	45.86		$	45.74

	June 30			March 31			Dec. 31			Sept. 30			June 30
(Dollars in millions, except per share data, shares in thousands)	2021			2021			2020			2020			2020
Calculations of Tangible Common Equity and Related Measures: (1)
Total shareholders' equity	$	68,336		$	67,876		$	70,912		$	69,973		$	68,883
Less:
Preferred stock	6,673			7,124			8,048			8,048			7,143
Noncontrolling interests	—			—			105			106			106
Intangible assets, net of deferred taxes	26,296			26,413			26,629			25,923			26,083
Tangible common equity	$	35,367		$	34,339		$	36,130		$	35,896		$	35,551







Outstanding shares at end of period (in thousands)	1,334,770			1,344,845			1,348,961			1,348,118			1,347,609
Tangible Common Equity Per Common Share	$	26.50		$	25.53		$	26.78		$	26.63		$	26.38

(1)Tangible common equity and related measures are non-GAAP measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses these measures to assess the quality of capital and returns relative to balance sheet risk. These measures are not necessarily comparable to similar measures that may be presented by other companies.

16 Truist Financial Corporation


Selected Mortgage Banking Information & Additional Information
	As of/For the Quarter Ended
	June 30			March 31			Dec. 31			Sept. 30			June 30
(Dollars in millions, except per share data)	2021			2021			2020			2020			2020
Residential Mortgage Income
Residential mortgage production revenue	$	122		$	140		$	229		$	339		$	344
Residential mortgage servicing revenue	139			141			150			152			159
Realization of expected residential MSR cash flows	(175)			(208)			(209)			(212)			(176)
Residential mortgage income before MSR valuation	86			73			170			279			327
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(188)			360			62			(54)			(28)
MSRs hedge gains (losses)	219			(333)			(39)			(4)			42
Net MSRs valuation	31			27			23			(58)			14
Total residential mortgage income	$	117		$	100		$	193		$	221		$	341
Commercial Real Estate Related Income
Commercial mortgage production revenue	$	131		$	40		$	117		$	49		$	42
Commercial mortgage servicing revenue	17			17			16			16			18
Realization of expected commercial MSR cash flows	(11)			(15)			(11)			(10)			(8)
Commercial real estate related income before MSR valuation	137			42			122			55			52
Income statement impact of mortgage servicing rights valuation:
MSRs fair value increase (decrease)	(4)			13			3			1			(6)
MSRs hedge gains (losses)	5			(12)			(2)			(1)			3
Net MSRs valuation	1			1			1			—			(3)
Commercial real estate related income	$	138		$	43		$	123		$	55		$	49
Other Mortgage Banking Information
Residential mortgage loan originations	$	14,301		$	13,075		$	13,235		$	15,346		$	14,631
Residential mortgage servicing portfolio (1):
Loans serviced for others	178,004			179,836			188,341			198,881			209,070
Bank-owned loans serviced	46,031			48,800			50,693			54,587			56,365
Total servicing portfolio	224,035			228,636			239,034			253,468			265,435
Weighted-average coupon rate on mortgage loans serviced for others	3.66		%	3.76		%	3.84		%	3.92		%	3.98		%
Weighted-average servicing fee on mortgage loans serviced for others	0.313			0.314			0.317			0.317			0.315

Additional Information

Fair value of derivatives, net	2,614			2,222			3,282			3,646			3,766
Common stock prices:
High	62.89			61.26			49.72			42.04			46.53
Low	52.61			46.71			37.86			33.47			26.41
End of period	55.50			58.32			47.93			38.05			37.55
Banking offices	2,557			2,556			2,781			2,884			2,916
ATMs	3,779			3,807			4,082			4,237			4,354
FTEs (2)	52,248			53,207			53,693			55,000			55,769

(1)Amounts reported are unpaid principal balance.

(2)FTEs represents an average for the quarter.

Truist Financial Corporation 17


Selected Items (1)
	Favorable (Unfavorable)
(Dollars in millions)			After-Tax at
Description	Pre-Tax		Marginal Rate
Selected Items
Second Quarter 2021
Charitable contribution	$	(200)	$	(153)
Incremental operating expenses related to the merger ($137 million professional fees and outside processing, $42 million personnel expense, and $11 million other)	(190)		(146)

First Quarter 2021
Incremental operating expenses related to the merger ($120 million professional fees and outside processing, $42 million personnel expense, and $13 million other)	$	(175)	$	(134)
Acceleration for cash flow hedge unwind	(36)		(28)

Fourth Quarter 2020
Incremental operating expenses related to the merger ($124 million in professional fees and outside processing, $47 million in personnel expense, and $8 million in other expense)	$	(179)	$	(138)

Third Quarter 2020
Incremental operating expenses related to the merger ($99 million in professional fees and outside processing, $48 million in personnel expense, and $5 million in other expense)	$	(152)	$	(115)
Charitable contribution	(50)		(38)

Second Quarter 2020
Incremental operating expenses related to the merger ($64 million in professional fees and outside processing, $49 million in personnel expense, and $16 million in other expense)	$	(129)	$	(99)

First Quarter 2020
Incremental operating expenses related to the merger ($44 million in personnel expense, $20 million in professional fees and outside processing, and $10 million in other expense)	$	(74)	$	(57)

(1)Includes costs not classified as merger-related and restructuring charges that are excluded from adjusted disclosures.


Non-GAAP Reconciliations
	Quarter Ended															Year-to-Date
	June 30			March 31			Dec. 31			Sept. 30			June 30			June 30			June 30
(Dollars in millions)	2021			2021			2020			2020			2020			2021			2020
Efficiency Ratio (1)
Efficiency Ratio Numerator - Noninterest Expense - GAAP	$	4,011		$	3,610		$	3,833		$	3,755		$	3,878		$	7,621		$	7,309
Merger-related and restructuring charges, net	(297)			(141)			(308)			(236)			(209)			(438)			(316)
Gain (loss) on early extinguishment of debt	—			3			—			—			(235)			3			(235)
Incremental operating expense related to the merger	(190)			(175)			(179)			(152)			(129)			(365)			(203)
Amortization of intangibles	(142)			(144)			(172)			(170)			(178)			(286)			(343)
Charitable contribution	(200)			—			—			(50)			—			(200)			—



Acceleration for cash flow hedge unwind	—			(36)			—			—			—			(36)			—






Efficiency Ratio Numerator - Adjusted	$	3,182		$	3,117		$	3,174		$	3,147		$	3,127		$	6,299		$	6,212














Efficiency Ratio Denominator - Revenue (2) - GAAP	$	5,650		$	5,482		$	5,651		$	5,572		$	5,871		$	11,132		$	11,482
Taxable equivalent adjustment	28			28			28			29			31			56			68
Securities (gains) losses	—			—			—			(104)			(300)			—			(298)





Gains on divestiture of certain businesses	—			(37)			—			—			—			(37)			—


Efficiency Ratio Denominator - Adjusted	$	5,678		$	5,473		$	5,679		$	5,497		$	5,602		$	11,151		$	11,252



Efficiency Ratio - GAAP	71.0		%	65.8		%	67.8		%	67.4		%	66.1		%	68.5		%	63.7		%
Efficiency Ratio - Adjusted	56.1			56.9			55.9			57.3			55.8			56.5			55.2

(1)The adjusted efficiency ratio is non-GAAP in that it excludes securities gains (losses), amortization of intangible assets, merger-related and restructuring charges, and other selected items. Truist's management uses this measure in their analysis of the Corporation's performance. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges. These measures are not necessarily comparable to similar measures that may be presented by other companies.

(2)Revenue is defined as net interest income plus noninterest income.

18 Truist Financial Corporation






	Quarter Ended															Year-to-Date
	June 30			March 31			Dec. 31			Sept. 30			June 30			June 30			June 30
(Dollars in millions)	2021			2021			2020			2020			2020			2021			2020
Return on Average Tangible Common Shareholders' Equity (1)
Net income available to common shareholders	$	1,559		$	1,334		$	1,228		$	1,068		$	902		$	2,893		$	1,888
Plus: Amortization of intangibles, net of tax	107			111			131			130			137			218			262
Tangible net income available to common shareholders	$	1,666		$	1,445		$	1,359		$	1,198		$	1,039		$	3,111		$	2,150

Average common shareholders' equity	$	61,709		$	62,252		$	61,991		$	61,804		$	61,484		$	61,979		$	60,854
Less: Average intangible assets, net of deferred taxes	26,366			26,535			25,930			25,971			26,161			26,450			26,295
Average tangible common shareholders' equity	$	35,343		$	35,717		$	36,061		$	35,833		$	35,323		$	35,529		$	34,559

Return on average common shareholders' equity	10.1		%	8.7		%	7.9		%	6.9		%	5.9		%	9.4		%	6.2		%
Return on average tangible common shareholders' equity	18.9			16.4			15.0			13.3			11.8			17.7			12.5


	Quarter Ended										Year-to-Date
	June 30		March 31		Dec. 31		Sept. 30		June 30		June 30		June 30
(Dollars in millions, except per share data)	2021		2021		2020		2020		2020		2021		2020
Diluted EPS (1)
Net income available to common shareholders - GAAP	$	1,559	$	1,334	$	1,228	$	1,068	$	902	$	2,893	$	1,888
Merger-related and restructuring charges	228		108		237		181		160		336		242
Securities (gains) losses	—		—		—		(80)		(230)		—		(228)
Loss (gain) on early extinguishment of debt	(1)		(2)		—		—		180		(3)		180
Incremental operating expenses related to the merger	146		134		138		115		99		280		156


Charitable contribution	153		—		—		38		—		153		—



Acceleration for cash flow hedge unwind	—		28		—		—		—		28		—





















Net income available to common shareholders - adjusted	$	2,085	$	1,602	$	1,603	$	1,322	$	1,111	$	3,687	$	2,238

Weighted average shares outstanding - diluted	1,349,492		1,358,932		1,361,763		1,358,122		1,355,834		1,354,210		1,356,809

Diluted EPS - GAAP	$	1.16	$	0.98	$	0.90	$	0.79	$	0.67	$	2.14	$	1.39
Diluted EPS - adjusted	1.55		1.18		1.18		0.97		0.82		2.72		1.65

(1)The adjusted diluted earnings per share is non-GAAP in that it excludes merger-related and restructuring charges and other selected items, net of tax. Truist's management uses this measure in their analysis of the Corporation's performance. Truist's management believes this measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods, as well as demonstrates the effects of significant gains and charges.

Truist Financial Corporation 19

TRUIST FINANCIAL CORP - FORM 8-K - EX-99.2 - July 15, 2021

Attached files

TRUIST FINANCIAL CORP Reports