TFC 10-Q Quarterly Report June 30, 2025

TRUIST FINANCIAL CORP

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tfc-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________

FORM 10-Q

_________________________________________________________________

☒ Quarterly Report Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

For the quarterly period ended: June 30, 2025

Commission File Number: 1-10853

TRUIST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

_________________________________________________________________


North Carolina		56-0939887
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

214 North Tryon Street
Charlotte,	North Carolina	28202
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:		(844)	487-8478

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

_________________________________________________________________

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

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $5 par value

TFC

New York Stock Exchange

Depositary Shares each representing 1/4,000th interest in a share of Series I Perpetual Preferred Stock

TFC.PI

New York Stock Exchange

5.853% Fixed-to-Floating Rate Normal Preferred Purchase Securities each representing 1/100th interest in a share of Series J Perpetual Preferred Stock

TFC.PJ

New York Stock Exchange

Depositary Shares each representing 1/1,000th interest in a share of Series O Non-Cumulative Perpetual Preferred Stock

TFC.PO

New York Stock Exchange

Depositary Shares each representing 1/1,000th interest in a share of Series R Non-Cumulative Perpetual Preferred Stock

TFC.PR

New York Stock Exchange

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

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

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

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

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

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At June 30, 2025, 1,289,435,167 shares of the registrant’s common stock, $5 par value, were outstanding.

TABLE OF CONTENTS

TRUIST FINANCIAL CORPORATION

FORM 10-Q

June 30, 2025

Page No.

PART I - Financial Information

Glossary of Defined Terms

Forward-Looking Statements and Other Terms

Item 1.

Financial Statements

Consolidated Balance Sheets (Unaudited)

Consolidated Statements of Income (Unaudited)

Consolidated Statements of Comprehensive Income (Unaudited)

Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)

Consolidated Statements of Cash Flows (Unaudited)

Notes to Consolidated Financial Statements (Unaudited)

Note 1. Basis of Presentation

Note 2. Discontinued Operations

Note 3. Securities Financing Activities

Note 4. Investment Securities

Note 5. Loans and ACL

Note 6. Goodwill and Other Intangible Assets

Note 7. Loan Servicing

Note 8. Other Assets and Liabilities

Note 9. Borrowings

Note 10. Shareholders’ Equity

Note 11. AOCI

Note 12. Income Taxes

Note 13. Benefit Plans

Note 14. Commitments and Contingencies

Note 15. Fair Value Disclosures

Note 16. Derivative Financial Instruments

Note 17. Computation of EPS

Note 18. Operating Segments

Item 2.

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

Executive Overview

Analysis of Results of Operations

Analysis of Financial Condition

Risk Management

Liquidity

Capital

Share Repurchase Activity

Regulatory and Supervisory Update

Critical Accounting Policies

Item 3.

Quantitative and Qualitative Disclosures About Market Risk (see Market Risk in MD&A)

Item 4.

Controls and Procedures

PART II - Other Information

Item 1.

Legal Proceedings

Item 1A.

Risk Factors

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities - (none)

Item 4.

Mine Safety Disclosures - (not applicable)

Item 5.

Other Information

Item 6.

Exhibits

Glossary of Defined Terms

The following terms may be used throughout this report, including the consolidated financial statements and related notes.


Term			Definition
ACL			Allowance for credit losses
AD and CL			Acquisition and development and commercial land
AFS			Available-for-sale
Agency MBS			Mortgage-backed securities issued by a U.S. government agency or GSE

ALCO			Asset and Liability Committee
ALLL			Allowance for loan and lease losses

AOCI			Accumulated other comprehensive income (loss)





Board			Board of Directors of Truist Financial Corporation
BRC			Joint Risk Committee of the Boards of Directors of Truist Financial Corporation and Truist Bank




CCAR			Comprehensive Capital Analysis and Review

CD			Certificate of deposit
CDI			Core deposit intangible
CECL			Current expected credit loss model
CEO			Chief Executive Officer of Truist Financial Corporation
CET1			Common equity tier 1
CFO			Chief Financial Officer of Truist Financial Corporation
CFPB			Consumer Financial Protection Bureau




CODM			Chief Operating Decision Maker
Company			Truist Financial Corporation and its subsidiaries (interchangeable with “Truist” below)
CP			Construction to permanent

CRE			Commercial real estate

CSBB			Consumer and Small Business Banking, an operating segment
DIF			Deposit Insurance Fund administered by the FDIC



EPS			Earnings per common share



Exchange Act			Securities Exchange Act of 1934, as amended
EVE			Economic value of equity
FASB			Financial Accounting Standards Board
FDIC			Federal Deposit Insurance Corporation


FHLB			Federal Home Loan Bank
FHLMC			Federal Home Loan Mortgage Corporation

FNMA			Federal National Mortgage Association
FRB			Board of Governors of the Federal Reserve System

GAAP			Accounting principles generally accepted in the United States of America

GDP			Gross Domestic Product


GSE			U.S. government-sponsored enterprise

HFI			Held for investment
HQLA			High-quality liquid assets
HTM			Held-to-maturity
IDI			Insured depository institution

IPV			Independent price verification

IRR			Interest rate risk


LCR			Liquidity Coverage Ratio
LHFS			Loans held for sale

LOCOM			Lower of cost or market
Market Risk Rule			Market risk capital requirements issued jointly by the OCC, FRB, and FDIC
MBS			Mortgage-backed securities
MD&A			Management’s Discussion and Analysis of Financial Condition and Results of Operations

MRO			Model Risk Oversight
MSR			Mortgage servicing rights

NA			Not applicable


NII			Net interest income
NIM			Net interest margin, computed on a TE basis
NM			Not meaningful
NPA			Nonperforming asset
NPL			Nonperforming loan
NSFR			Net stable funding ratio

OAS			Option adjusted spread
OCC			Office of the Comptroller of the Currency
OCI			Other comprehensive income (loss)

OPEB			Other post-employment benefit
OREO			Other real estate owned
OT&C			Other, Treasury, and Corporate

Parent Company			Truist Financial Corporation, the parent company of Truist Bank and other subsidiaries

PCD			Purchased credit deteriorated loans


ROU assets			Right-of-use assets


RUFC			Reserve for unfunded lending commitments

Truist Financial Corporation 1


Term			Definition
S&P			Standard & Poor’s

SBIC			Small Business Investment Company
SCB			Stress Capital Buffer
SEC			Securities and Exchange Commission




TBVPS			Tangible book value per common share
TE			Taxable-equivalent
TIH			Truist Insurance Holdings, LLC, an entity sold on May 6, 2024
TRS			Total Return Swap
Truist			Truist Financial Corporation and its subsidiaries (interchangeable with the “Company” above)
Truist Bank			Truist Bank, a North Carolina-chartered bank
U.S.			United States of America

U.S. Treasury			United States Department of the Treasury
UPB			Unpaid principal balance


VaR			Value-at-risk
VIE			Variable interest entity
WB			Wholesale Banking, an operating segment

2 Truist Financial Corporation

Forward-Looking Statements and Other Terms

From time to time we have made, and in the future will make, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “believe,” “expect,” “anticipate,” “intend,” “pursue,” “seek,” “continue,” “estimate,” “project,” “outlook,” “forecast,” “potential,” “target,” “objective,” “trend,” “plan,” “goal,” “initiative,” “priorities,” or other words of comparable meaning or future-tense or conditional verbs such as “may,” “will,” “should,” “would,” or “could.” Forward-looking statements convey our expectations, intentions, or forecasts about future events, circumstances, or results.

This report, including any information incorporated by reference in this report, contains forward-looking statements. We also may make forward-looking statements in other documents that are filed or furnished with the SEC. In addition, we may make forward-looking statements orally or in writing to investors, analysts, members of the media, and others. All forward-looking statements, by their nature, are subject to assumptions, risks, and uncertainties, which may change over time and many of which are beyond our control. You should not rely on any forward-looking statement as a prediction or guarantee about the future. Actual future objectives, strategies, plans, prospects, performance, conditions, and results may differ materially from those set forth in any forward-looking statement. While no list of assumptions, risks, and uncertainties could be complete, some of the factors that may cause actual results or other future events or circumstances to differ from those in forward-looking statements include:

• evolving political, geopolitical, business, social, economic, and market conditions at local, regional, national, and international levels;

• monetary, fiscal, and trade laws or policies, including tariffs or responses to rates of inflation above target levels;

• the legal, regulatory, and supervisory environment, including changes in financial-services legislation, regulation, policies, or government officials or other personnel;

• our ability to address heightened scrutiny and expectations from supervisory or other governmental authorities and to timely and credibly remediate related concerns or deficiencies;

• judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings that create uncertainty for or are adverse to us or the financial-services industry;

• the outcomes of judicial, regulatory, and administrative inquiries, examinations, investigations, proceedings, disputes, or rulings to which we are or may be subject (either directly or indirectly through our ownership interests in other entities) and our ability to absorb and address any damages or other remedies that are sought or awarded and any collateral consequences;

• evolving accounting standards and policies;

• the adequacy of our corporate governance, risk-management framework, compliance programs, and internal controls over financial reporting, including our ability to control lapses or deficiencies in financial reporting, to make appropriate estimates, or to effectively mitigate or manage operational risk;

• any instability or breakdown in the financial system, including as a result of the actual or perceived soundness of another financial institution or another participant in the financial system;

• disruptions and shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including financial or systemic shocks and volatility or changes in market liquidity, interest or currency rates, or valuations;

• our ability to cost-effectively fund our businesses and operations, including by accessing long- and short-term funding and liquidity and by retaining and growing client deposits;

• changes in any of our credit ratings;

• our ability to manage any unexpected outflows of uninsured deposits and avoid selling investment securities or other assets at an unfavorable time or at a loss;

• negative market perceptions of our investment portfolio or its value;

• adverse publicity or other reputational harm to us, our service providers, or our senior officers;

• business and consumer sentiment, preferences, or behavior, including spending, borrowing, or saving by businesses or households;

• our ability to execute on strategic and operational plans, including accelerating growth, improving profitability, investing in talent, technology, and risk infrastructure, maintaining expense, credit, and risk discipline, and returning capital to shareholders;

• changes in our corporate and business strategies, the composition of our assets, or the way in which we fund those assets;

• our ability to successfully make and integrate acquisitions and to effect divestitures;

• our ability to develop, maintain, and market our products or services or to absorb unanticipated costs or liabilities associated with those products or services;

• our ability to innovate, to anticipate the needs of current or future clients, to successfully compete, to increase or hold market share in changing competitive environments, or to deal with pricing or other competitive pressures;

• our ability to maintain secure and functional financial, accounting, technology, data processing, or other operating systems or infrastructure, including those that safeguard personal and other sensitive information;

• our ability to appropriately underwrite loans that we originate or purchase and to otherwise manage credit risk;

• our ability to satisfactorily and profitably perform loan servicing and similar obligations;

• the credit, liquidity, or other financial condition of our clients, counterparties, service providers, or competitors;

• our ability to effectively deal with economic, business, or market slowdowns or disruptions;

• the efficacy of our methods or models in assessing business strategies or opportunities or in valuing, measuring, estimating, monitoring, or managing positions or risk;

• our ability to keep pace with changes in technology that affect us or our clients, counterparties, service providers, or competitors or to maintain rights or interests in associated intellectual property;

• our ability to attract, hire, and retain key teammates and to engage in adequate succession planning;

• the performance and availability of third-party service providers on whom we rely in delivering products and services to our clients and otherwise in conducting our business and operations;

• our ability to detect, prevent, mitigate, and otherwise manage the risk of fraud or misconduct by internal or external parties;

• our ability to manage and mitigate physical-security and cybersecurity risks, including denial-of-service attacks, hacking, phishing, social-engineering attacks, malware intrusion, data-corruption attempts, system breaches, identity theft, ransomware attacks, environmental conditions, and intentional acts of destruction;

• natural or other disasters, calamities, and conflicts, including terrorist events, cyber-warfare, and pandemics;

• widespread outages of operational, communication, and other systems;

• our ability to maintain appropriate corporate responsibility practices, oversight, and disclosures;

• policies and other actions of governments to manage and mitigate climate and related environmental risks, and the effects of climate change or the transition to a lower-carbon economy on our business, operations, and reputation; and

• other assumptions, risks, or uncertainties described in the Risk Factors (Item 1A), Management’s Discussion and Analysis of Financial Condition and Results of Operations (Item 7), or the Notes to the Consolidated Financial Statements (Item 8) in our Annual Report on Form 10-K or described in any of the Company’s subsequent quarterly or current reports.

Any forward-looking statement made by us or on our behalf speaks only as of the date that it was made. We do not undertake to update any forward-looking statement to reflect the impact of events, circumstances, or results that arise after the date that the statement was made, except as required by applicable securities laws. You, however, should consult further disclosures (including disclosures of a forward-looking nature) that we may make in any subsequent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, or Current Report on Form 8-K.

Unless the context otherwise requires, “sale of TIH” and similar phrases refer to the sale of our majority stake in TIH on May 6, 2024.

Truist Financial Corporation 3

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED BALANCE SHEETS

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions, except per share data, shares in thousands)	Jun 30, 2025		Dec 31, 2024
Assets
Cash and due from banks	$	5,157	$	5,793
Interest-bearing deposits with banks	36,294		33,975
Securities borrowed or purchased under agreements to resell	2,656		2,550
Trading assets at fair value	5,963		5,100
AFS securities at fair value	66,390		67,464
HTM securities (fair value of $ 39,611 and $ 40,286 , respectively)	48,973		50,640
LHFS (including $ 1,105 and $ 1,233 at fair value, respectively)	1,203		1,388
Loans and leases (including $ 12 and $ 13 at fair value, respectively)	318,796		306,383
ALLL	( 4,899 )		( 4,857 )
Loans and leases, net of ALLL	313,897		301,526
Premises and equipment	3,197		3,225
Goodwill	17,125		17,125
CDI and other intangible assets	1,399		1,550
Loan servicing rights at fair value	3,612		3,708
Other assets (including $ 1,977 and $ 1,271 at fair value, respectively)	37,967		37,132

Total assets	$	543,833	$	531,176
Liabilities
Noninterest-bearing deposits	$	106,442	$	107,451
Interest-bearing deposits (including $ 396 and $ 192 at fair value, respectively)	299,680		283,073
Short-term borrowings (including $ 2,199 and $ 1,896 at fair value, respectively)	16,631		29,205
Long-term debt	44,427		34,956
Other liabilities (including $ 1,812 and $ 2,286 at fair value, respectively)	11,813		12,812

Total liabilities	478,993		467,497
Shareholders’ Equity
Preferred stock	5,907		5,907
Common stock, $ 5 par value	6,447		6,580
Additional paid-in capital	34,620		35,628
Retained earnings	24,759		23,777
AOCI, net of deferred income taxes	( 6,893 )		( 8,213 )

Total shareholders’ equity	64,840		63,679
Total liabilities and shareholders’ equity	$	543,833	$	531,176
Common shares outstanding	1,289,435		1,315,936
Common shares authorized	2,000,000		2,000,000
Preferred shares outstanding	216		216
Preferred shares authorized	5,000		5,000

The accompanying notes are an integral part of these consolidated financial statements.

4 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions, except per share data, shares in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Interest Income
Interest and fees on loans and leases	$	4,657	$	4,879	$	9,150	$	9,744
Interest on securities	961		838		1,936		1,643
Interest on other earning assets	536		634		1,056		1,148
Total interest income	6,154		6,351		12,142		12,535
Interest Expense
Interest on deposits	1,844		2,016		3,580		3,980
Interest on long-term debt	431		446		840		928
Interest on other borrowings	292		362		628		728
Total interest expense	2,567		2,824		5,048		5,636
Net Interest Income	3,587		3,527		7,094		6,899
Provision for credit losses	488		451		946		951
Net Interest Income After Provision for Credit Losses	3,099		3,076		6,148		5,948
Noninterest Income
Wealth management income	348		361		692		717
Investment banking and trading income	205		286		478		609
Card and payment related fees	232		230		452		454
Service charges on deposits	227		232		457		457
Mortgage banking income	107		112		215		209
Lending related fees	99		89		194		185
Operating lease income	47		50		100		109


Securities gains (losses)	( 18 )		( 6,650 )		( 19 )		( 6,650 )
Other income	153		78		223		144
Total noninterest income	1,400		( 5,212 )		2,792		( 3,766 )
Noninterest Expense
Personnel expense	1,653		1,661		3,240		3,291
Professional fees and outside processing	373		308		737		586
Software expense	231		218		461		442
Net occupancy expense	179		160		342		320
Equipment expense	89		89		171		177
Amortization of intangibles	73		89		148		177
Marketing and customer development	82		63		157		119
Operating lease depreciation	33		34		68		74

Regulatory costs	55		85		124		237
Restructuring charges	28		33		66		84


Other expense	190		354		378		540
Total noninterest expense	2,986		3,094		5,892		6,047
Earnings
Income (loss) before income taxes	1,513		( 5,230 )		3,048		( 3,865 )
Provision (benefit) for income taxes	273		( 1,324 )		547		( 1,092 )
Net income (loss) from continuing operations	1,240		( 3,906 )		2,501		( 2,773 )
Net income from discontinued operations	—		4,828		—		4,895
Net income	1,240		922		2,501		2,122

Noncontrolling interests from discontinued operations	—		19		—		22

Preferred stock dividends and other	60		77		164		183
Net income available to common shareholders	$	1,180	$	826	$	2,337	$	1,917
Basic EPS from continuing operations	$	0.91	$	( 2.98 )	$	1.80	$	( 2.21 )

Basic EPS	0.91		0.62		1.80		1.43
Diluted EPS from continuing operations	0.90		( 2.98 )		1.78		( 2.21 )

Diluted EPS	0.90		0.62		1.78		1.43
Basic weighted average shares outstanding	1,292,292		1,338,149		1,299,833		1,336,620
Diluted weighted average shares outstanding	1,305,005		1,338,149		1,314,779		1,336,620

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Net income	$	1,240	$	922	$	2,501	$	2,122
OCI, net of tax:
Net change in net pension and postretirement costs	2		34		7		35
Net change in cash flow hedges	275		( 38 )		704		( 228 )
Net change in AFS securities	16		4,664		494		4,088
Net change in HTM securities	59		57		109		108
Other, net	5		1		6		( 1 )
Total OCI, net of tax	357		4,718		1,320		4,002
Total comprehensive income	$	1,597	$	5,640	$	3,821	$	6,124
Income Tax Effect of Items Included in OCI:
Net change in net pension and postretirement costs	$	( 1 )	$	11	$	—	$	11
Net change in cash flow hedges	84		( 12 )		217		( 70 )
Net change in AFS securities	( 10 )		1,439		139		1,262
Net change in HTM securities	12		18		27		33

Total income taxes related to OCI	$	85	$	1,456	$	383	$	1,236

The accompanying notes are an integral part of these consolidated financial statements.

6 Truist Financial Corporation

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES




Unaudited (Dollars in millions, shares in thousands)	Shares of Common Stock	Preferred Stock		Common Stock		Additional Paid-In Capital		Retained Earnings		AOCI		Noncontrolling Interests		Total Shareholders’ Equity
Balance, April 1, 2024	1,338,096	$	6,673	$	6,690	$	36,197	$	22,483	$	( 13,222 )	$	232	$	59,053
Net income	—	—		—		—		903		—		19		922
OCI	—	—		—		—		—		4,718		—		4,718


Issued in connection with equity awards, net	127	—		1		( 12 )		( 3 )		—		—		( 14 )



Cash dividends declared on common stock	—	—		—		—		( 696 )		—		—		( 696 )
Cash dividends declared on preferred stock	—	—		—		—		( 77 )		—		—		( 77 )
Equity-based compensation expense	—	—		—		103		—		—		—		103

Sale of remaining stake in TIH	—	—		—		—		—		—		( 197 )		( 197 )
Other, net	—	—		—		76		( 7 )		—		( 54 )		15
Balance, June 30, 2024	1,338,223	$	6,673	$	6,691	$	36,364	$	22,603	$	( 8,504 )	$	—	$	63,827
Balance, April 1, 2025	1,309,539	$	5,907	$	6,548	$	35,178	$	24,252	$	( 7,250 )	$	—	$	64,635
Net income	—	—		—		—		1,240		—		—		1,240
OCI	—	—		—		—		—		357		—		357

Issued in connection with equity awards, net	105	—		—		—		( 3 )		—		—		( 3 )

Repurchase of common stock, including excise tax	( 20,209 )	—		( 101 )		( 656 )		—		—		—		( 757 )

Cash dividends declared on common stock	—	—		—		—		( 670 )		—		—		( 670 )
Cash dividends declared on preferred stock	—	—		—		—		( 60 )		—		—		( 60 )
Equity-based compensation expense	—	—		—		98		—		—		—		98


Balance, June 30, 2025	1,289,435	$	5,907	$	6,447	$	34,620	$	24,759	$	( 6,893 )	$	—	$	64,840
















Balance, January 1, 2024	1,333,743	$	6,673	$	6,669	$	36,177	$	22,088	$	( 12,506 )	$	152	$	59,253
Net income	—	—		—		—		2,100		—		22		2,122
OCI	—	—		—		—		—		4,002		—		4,002


Issued in connection with equity awards, net	4,480	—		22		( 55 )		( 5 )		—		—		( 38 )



Cash dividends declared on common stock	—	—		—		—		( 1,390 )		—		—		( 1,390 )
Cash dividends declared on preferred stock	—	—		—		—		( 183 )		—		—		( 183 )
Equity-based compensation expense	—	—		—		166		—		—		—		166
Sale of remaining stake in TIH	—	—		—		—		—		—		( 197 )		( 197 )

Other, net	—	—		—		76		( 7 )		—		23		92
Balance, June 30, 2024	1,338,223	$	6,673	$	6,691	$	36,364	$	22,603	$	( 8,504 )	$	—	$	63,827
Balance, January 1, 2025	1,315,936	$	5,907	$	6,580	$	35,628	$	23,777	$	( 8,213 )	$	—	$	63,679
Net income	—	—		—		—		2,501		—		—		2,501
OCI	—	—		—		—		—		1,320		—		1,320

Issued in connection with equity awards, net	4,963	—		24		( 83 )		( 6 )		—		—		( 65 )

Repurchase of common stock, including excise tax	( 31,464 )	—		( 157 )		( 1,103 )		—		—		—		( 1,260 )

Cash dividends declared on common stock	—	—		—		—		( 1,349 )		—		—		( 1,349 )
Cash dividends declared on preferred stock	—	—		—		—		( 164 )		—		—		( 164 )
Equity-based compensation expense	—	—		—		178		—		—		—		178



Balance, June 30, 2025	1,289,435	$	5,907	$	6,447	$	34,620	$	24,759	$	( 6,893 )	$	—	$	64,840

The accompanying notes are an integral part of these consolidated financial statements.

Truist Financial Corporation 7

CONSOLIDATED STATEMENTS OF CASH FLOWS (1)

TRUIST FINANCIAL CORPORATION AND SUBSIDIARIES



Unaudited (Dollars in millions)	Six Months Ended June 30,
	2025		2024
Cash Flows From Operating Activities:
Net income	$	2,501	$	2,122
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	946		951

Depreciation	284		315

Amortization of intangibles	148		198


Securities (gains) losses	19		6,650
Gain on sale of TIH, net of tax	—		( 4,814 )
Net change in operating assets and liabilities:
LHFS	128		( 432 )

Pension asset	( 145 )		( 95 )
Derivative assets and liabilities	( 1,106 )		( 470 )
Trading assets	( 863 )		( 1,226 )

Other assets and other liabilities	( 561 )		( 3,595 )

Other, net	309		251
Net cash from operating activities	1,660		( 145 )
Cash Flows From Investing Activities:
Proceeds from sales of AFS securities	1,109		27,607
Proceeds from maturities, calls and paydowns of AFS securities	8,079		7,911
Purchases of AFS securities	( 6,879 )		( 26,048 )
Proceeds from maturities, calls and paydowns of HTM securities	1,812		1,810

Originations of loans and leases, net of principal collected	( 12,860 )		5,347
Purchases of loans and leases	( 668 )		( 39 )
Sales of loans and leases	358		411

Net cash received (paid) for securities borrowed or purchased under agreements to resell	( 106 )		40

Net cash received (paid) for asset acquisitions, business combinations, and divestitures	—		12,060

Other, net	( 181 )		953
Net cash from investing activities	( 9,336 )		30,052
Cash Flows From Financing Activities:
Net change in deposits	15,598		( 11,996 )
Net change in short-term borrowings	( 12,556 )		( 2,015 )
Proceeds from issuance of long-term debt	28,642		8,204
Repayment of long-term debt	( 19,486 )		( 12,242 )
Repurchase of common stock	( 1,250 )		—


Cash dividends paid on common stock	( 1,349 )		( 1,390 )
Cash dividends paid on preferred stock	( 164 )		( 183 )


Other, net	( 76 )		( 50 )
Net cash from financing activities	9,359		( 19,672 )
Net Change in Cash and Cash Equivalents	1,683		10,235
Cash and Cash Equivalents of Continuing and Discontinued Operations, January 1	39,768		30,644
Cash and Cash Equivalents of Continuing and Discontinued Operations, June 30	$	41,451	$	40,879
Supplemental Disclosure of Cash Flow Information:
Net cash paid (received) during the period for:
Interest expense	$	4,967	$	5,791
Income taxes	170		379

(1) Cash flows of discontinued operations are reflected within operating, investing, and financing activities in the Consolidated Statements of Cash Flows. The cash balances of these operations were reported as assets of discontinued operations on the Consolidated Balance Sheets prior to the sale of TIH. Refer to “Note 2. Discontinued Operations” for additional information related to discontinued operations.

The accompanying notes are an integral part of these consolidated financial statements.

8 Truist Financial Corporation

NOTE 1. Basis of Presentation

General

See the Glossary of Defined Terms at the beginning of this Report for terms used herein. These consolidated financial statements and notes are presented in accordance with the instructions for Form 10-Q, and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations, and cash flow activity required in accordance with GAAP. In the opinion of management, all normal recurring adjustments necessary for a fair statement of the consolidated financial position and consolidated results of operations have been made. The year-end consolidated balance sheet data was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The information contained in the financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2024 should be referred to in connection with these unaudited interim consolidated financial statements. There were no significant changes to the Company’s accounting policies from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 that could have a material effect on the Company’s financial statements.

Reclassifications

Certain amounts reported in prior periods’ consolidated financial statements have been reclassified to conform to the current presentation.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for securities, MSRs, trading assets and liabilities, and derivative assets and liabilities; goodwill and other intangible assets; income taxes; and pension and postretirement benefit obligations.

Changes in Accounting Principles and Effects of New Accounting Standards

The following table provides a summary of significant accounting standards not yet adopted:


Standard / Adoption Date	Description	Effects on the Financial Statements




Standards Not Yet Adopted
Improvements to Income Tax Disclosures / December 31, 2025	Improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. Permits either a prospective or retrospective transition approach.	Truist is evaluating the impact of this standard on its disclosures, which includes aggregating newly required information in the format required. While its evaluation is ongoing, Truist does not expect that the implementation of this disclosure-only standard will have a material impact on its financial statements.
Expense Disaggregation Disclosures / December 31, 2027	Introduces new requirements to disclose additional information about certain types of expenses, including employee compensation, depreciation, intangible asset amortization, and selling expenses. Banks that present a caption for salaries and benefits under SEC rules would be permitted to retain their current definition. Permits either a prospective or retrospective transition approach.	Truist is evaluating the impact of this standard on its disclosures. This standard relates to footnote disclosures only.

Truist Financial Corporation 9

NOTE 2. Discontinued Operations

On February 20, 2024, the Company entered into an agreement to sell the remaining stake of the common equity in TIH to an investor group led by Stone Point Capital LLC and Clayton, Dubilier & Rice for a purchase price that implied an enterprise value for TIH of $ 15.5 billion. The divestiture of TIH represented a strategic shift that had a major effect on our operations and financial results. The Company reclassified all of the assets and liabilities of TIH to discontinued operations in connection with the announcement of the disposition of the business. As such, financial information attributed to TIH has been recast to reflect discontinued operations for the periods presented herein. On May 6, 2024, the Company completed the sale.

The following footnotes exclude discontinued operations for TIH, unless otherwise noted: “Note 6. Goodwill and Other Intangible Assets,” “Note 8. Other Assets and Liabilities,” “Note 12. Income Taxes,” “Note 13. Benefit Plans,” “Note 17. Computation of EPS,” and “Note 18. Operating Segments.”

The following presents operating results of TIH classified as discontinued operations:




(Dollars in millions)	Three Months Ended June 30, 2024		Six Months Ended June 30, 2024
Interest Income
Interest on other earning assets	$	7	$	31
Total interest income	7		31
Noninterest income
Insurance income	427		1,319
Other income	4		9
Total noninterest income	431		1,328
Noninterest expense
Personnel expense	251		885
Professional fees and outside processing	37		85
Software expense	8		25
Net occupancy expense	5		20
Equipment expense	2		11
Amortization of intangibles	—		21
Marketing and customer development	5		15

Restructuring charges	63		82
Other expense	26		84
Total noninterest expense	397		1,228
Earnings
Gain on sale of TIH	6,903		6,903
Income before income taxes from discontinued operations	6,944		7,034
Provision for income taxes	2,116		2,139
Net income from discontinued operations	4,828		4,895
Noncontrolling interests	19		22
Net income from discontinued operations attributable to controlling interest	$	4,809	$	4,873

The components of net cash provided by operating, investing, and financing activities of discontinued operations included in the Consolidated Statements of Cash Flows are as follows:




(Dollars in millions)	Six Months Ended June 30, 2024
Net cash from operating activities	$	71
Net cash from investing activities	12,056
Net cash from financing activities	( 41 )

10 Truist Financial Corporation

NOTE 3. Securities Financing Activities

Securities purchased under agreements to resell are primarily collateralized by U.S. government or agency securities and are carried at the amounts at which the securities will be subsequently sold, plus accrued interest. Securities borrowed are primarily collateralized by corporate securities. The Company borrows securities and purchases securities under agreements to resell as part of its securities financing activities. On the acquisition date of these securities, the Company and the related counterparty agree on the amount of collateral required to secure the principal amount loaned under these arrangements. The Company monitors collateral values daily and calls for additional collateral to be provided as warranted under the respective agreements.

For securities sold under agreements to repurchase, the Company would be obligated to provide additional collateral in the event of a significant decline in fair value of the collateral pledged. This risk is managed by monitoring the liquidity and credit quality of the collateral, as well as the maturity profile of the transactions. Refer to “Note 14. Commitments and Contingencies” for additional information related to pledged securities.

The agreements that govern the Company's securities financing transactions provide for a right of setoff in the event of default or bankruptcy with respect to either party to such transactions. The following table presents the Company's securities financing transactions, including those executed under master netting (or similar) arrangements. Refer to "Note 16. Derivative Financial Instruments" for information about the Company's derivative instruments subject to master netting (or similar) arrangements.


	June 30, 2025														December 31, 2024
(Dollars in millions)			Amount in Consolidated Balance Sheets (1)				Received/Pledged Financial Instruments (2)				Net Amount				Amount in Consolidated Balance Sheets (1)		Received/Pledged Financial Instruments (2)		Net Amount
Assets:
Securities purchased under agreements to resell			$	1,171			$	( 1,166 )			$	5			$	1,322	$	( 1,313 )	$	9
Securities borrowed	1,485				( 1,452 )				33				1,228		( 1,192 )		36
Total securities borrowed or purchased under agreements to resell	$	2,656			$	( 2,618 )			$	38			$	2,550	$	( 2,505 )	$	45
Liabilities:
Securities sold under agreements to repurchase			$	( 3,657 )			$	3,657			$	—			$	( 9,675 )	$	9,675	$	—

(1) There were no securities financing transactions subject to legally enforceable master netting arrangements that were eligible for balance sheet netting for the periods presented.

(2) The fair value of received/pledged financial instruments is limited to the carrying amount of the associated asset or liability. The fair value of collateral received that was permitted to be resold or repledged was $ 2.6 billion as of June 30, 2025 and $ 2.5 billion as of December 31, 2024. Of the fair value of collateral permitted to be resold or repledged, the fair value of securities repledged or resold was $ 2.2 billion as of June 30, 2025 and $ 1.6 billion as of December 31, 2024.

The following table presents additional information related to the Company’s securities sold under agreements to repurchase, by collateral type and remaining contractual maturity:


	June 30, 2025				December 31, 2024
(Dollars in millions)	Overnight and Continuous		Up to 30 days		Total		Overnight and Continuous		Up to 30 days		30-90 days		Total
U.S. Treasury	$	232	$	—	$	232	$	—	$	2,445	$	300	$	2,745
State and Municipal	291		6		297		350		100		—		450

Agency MBS – residential	—		2,500		2,500		—		5,750		—		5,750
Corporate and other debt securities	409		219		628		450		280		—		730
Total securities sold under agreements to repurchase	$	932	$	2,725	$	3,657	$	800	$	8,575	$	300	$	9,675

Truist Financial Corporation 11

NOTE 4. Investment Securities

The following tables summarize the Company’s AFS and HTM securities:


June 30, 2025 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	13,389	$	114	$	( 32 )	$	82	$	13,471
GSE	459		3		( 27 )		( 24 )		435
Agency MBS – residential	54,173		116		( 4,834 )		( 4,718 )		49,455
Agency MBS – commercial	3,247		6		( 600 )		( 594 )		2,653
States and political subdivisions	369		11		( 19 )		( 8 )		361

Other	15		—		—		—		15
Total AFS securities, excluding portfolio level basis adjustments	71,652		250		( 5,512 )		( 5,262 )		66,390
Portfolio level basis adjustments (1)	89						( 89 )		—
Total AFS securities	$	71,741	$	250	$	( 5,512 )	$	( 5,351 )	$	66,390
HTM securities:


Agency MBS – residential	$	48,973	$	—	$	( 9,362 )	$	( 9,362 )	$	39,611





December 31, 2024 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	14,279	$	156	$	( 24 )	$	132	$	14,411
GSE	441		1		( 39 )		( 38 )		403
Agency MBS – residential	55,769		6		( 5,816 )		( 5,810 )		49,959
Agency MBS – commercial	2,938		—		( 645 )		( 645 )		2,293
States and political subdivisions	390		11		( 19 )		( 8 )		382

Other	16		—		—		—		16
Total AFS securities, excluding portfolio level basis adjustments	73,833		174		( 6,543 )		( 6,369 )		67,464
Portfolio level basis adjustments (1)	( 385 )						385		—
Total AFS securities	$	73,448	$	174	$	( 6,543 )	$	( 5,984 )	$	67,464
HTM securities:


Agency MBS – residential	$	50,640	$	—	$	( 10,354 )	$	( 10,354 )	$	40,286

(1) Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual securities. For additional information, refer to “Note 16. Derivative Financial Instruments.”

The amortized cost and estimated fair value of certain MBS securities issued by FNMA and FHLMC that exceeded 10% of shareholders’ equity are shown in the table below:


	June 30, 2025
(Dollars in millions)	Amortized Cost		Fair Value
FNMA	$	29,017	$	24,713
FHLMC	29,349		24,842

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may be shorter than the contractual maturities because borrowers have the right to prepay their obligations with or without penalties.

12 Truist Financial Corporation


	Amortized Cost										Fair Value
June 30, 2025 (Dollars in millions)	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		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		Total
AFS securities:
U.S. Treasury	$	4,362	$	7,859	$	430	$	738	$	13,389	$	4,383	$	7,944	$	428	$	716	$	13,471
GSE	—		—		1		458		459		—		—		1		434		435
Agency MBS – residential	—		1		40		54,132		54,173		—		1		40		49,414		49,455
Agency MBS – commercial	—		169		255		2,823		3,247		—		171		254		2,228		2,653
States and political subdivisions	21		66		147		135		369		21		68		146		126		361

Other	—		7		8		—		15		—		7		8		—		15
Total AFS securities	$	4,383	$	8,102	$	881	$	58,286	$	71,652	$	4,404	$	8,191	$	877	$	52,918	$	66,390
HTM securities:


Agency MBS – residential	$	—	$	—	$	—	$	48,973	$	48,973	$	—	$	—	$	—	$	39,611	$	39,611

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:


	Less than 12 months				12 months or more				Total
June 30, 2025 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	2,731	$	( 21 )	$	242	$	( 11 )	$	2,973	$	( 32 )
GSE	105		( 2 )		208		( 25 )		313		( 27 )
Agency MBS – residential	10,300		( 122 )		25,721		( 4,712 )		36,021		( 4,834 )
Agency MBS – commercial	35		—		2,118		( 600 )		2,153		( 600 )
States and political subdivisions	178		( 16 )		37		( 3 )		215		( 19 )

Other	8		—		7		—		15		—
Total	$	13,357	$	( 161 )	$	28,333	$	( 5,351 )	$	41,690	$	( 5,512 )
HTM securities:


Agency MBS – residential	$	—	$	—	$	39,611	$	( 9,362 )	$	39,611	$	( 9,362 )








	Less than 12 months				12 months or more				Total
December 31, 2024 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

AFS securities:
U.S. Treasury	$	1,579	$	( 6 )	$	352	$	( 18 )	$	1,931	$	( 24 )
GSE	146		( 4 )		230		( 35 )		376		( 39 )
Agency MBS – residential	20,546		( 322 )		26,788		( 5,494 )		47,334		( 5,816 )
Agency MBS – commercial	105		( 1 )		2,111		( 644 )		2,216		( 645 )
States and political subdivisions	20		( 1 )		202		( 18 )		222		( 19 )

Other	—		—		7		—		7		—
Total	$	22,396	$	( 334 )	$	29,690	$	( 6,209 )	$	52,086	$	( 6,543 )
HTM securities:


Agency MBS – residential	$	—	$	—	$	40,286	$	( 10,354 )	$	40,286	$	( 10,354 )

At June 30, 2025 and December 31, 2024, no ACL was established for AFS or HTM securities. Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans. The Company does not expect to incur any credit losses on investment securities.

The following table presents gross securities gains and losses recognized in earnings:


(Dollars in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Gross realized gains	$	—	$	—	$	2	$	—
Gross realized losses (1)	( 18 )		( 6,650 )		( 21 )		( 6,650 )

Securities gains (losses), net	$	( 18 )	$	( 6,650 )	$	( 19 )	$	( 6,650 )

(1) Includes $ 485 million pre-tax gain on terminated hedges for the three and six months ended June 30, 2024.

Truist Financial Corporation 13

NOTE 5. Loans and ACL

The following tables present loans and leases HFI by aging category. Government guaranteed loans are not placed on nonperforming status regardless of delinquency because collection of principal and interest is reasonably assured.


	Accruing
June 30, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due (1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	161,629	$	122	$	2	$	520	$	162,273
CRE	20,108		34		—		128		20,270
Commercial construction	8,261		15		—		1		8,277

Consumer:
Residential mortgage	56,477		695		465		191		57,828
Home equity	9,424		54		6		107		9,591
Indirect auto	23,736		582		—		240		24,558
Other consumer	30,795		239		24		64		31,122

Credit card	4,758		70		49		—		4,877

Total	$	315,188	$	1,811	$	546	$	1,251	$	318,796
(1) Includes government guaranteed loans of $ 424 million in the residential mortgage portfolio.

	Accruing
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days Or More Past Due (1)		Nonperforming		Total
Commercial:
Commercial and industrial	$	154,140	$	168	$	19	$	521	$	154,848
CRE	20,004		60		1		298		20,363
Commercial construction	8,514		3		—		3		8,520

Consumer:
Residential mortgage	54,233		719		481		166		55,599
Home equity	9,457		60		9		116		9,642
Indirect auto	22,208		622		—		259		23,089
Other consumer	29,070		236		23		66		29,395

Credit card	4,792		81		54		—		4,927

Total	$	302,418	$	1,949	$	587	$	1,429	$	306,383
(1) Includes government guaranteed loans of $ 430 million in the residential mortgage portfolio.

14 Truist Financial Corporation

The following tables present the amortized cost basis of loans by origination year and credit quality indicator:


June 30, 2025 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2025		2024		2023		2022		2021		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	21,413	$	17,868	$	11,417	$	17,086	$	9,577	$	16,905	$	61,709	$	—	$	( 213 )	$	155,762
Special mention	227		240		179		166		294		183		849		—		—		2,138
Substandard	251		477		506		555		218		591		1,255		—		—		3,853
Nonperforming	6		99		60		58		19		30		248		—		—		520
Total	21,897		18,684		12,162		17,865		10,108		17,709		64,061		—		( 213 )		162,273
Gross charge-offs	6		22		42		27		11		5		109		—		—		222
CRE:
Pass	2,868		1,442		1,892		3,552		1,874		4,335		1,309		—		( 63 )		17,209
Special mention	1		145		48		135		242		172		15		—		—		758
Substandard	188		252		316		673		207		420		119		—		—		2,175
Nonperforming	1		1		14		27		8		77		—		—		—		128
Total	3,058		1,840		2,270		4,387		2,331		5,004		1,443		—		( 63 )		20,270
Gross charge-offs	—		27		28		1		—		52		—		—		—		108
Commercial construction:
Pass	427		715		1,307		1,152		304		29		1,802		—		—		5,736
Special mention	13		90		79		459		232		—		87		—		—		960
Substandard	—		171		287		1,014		67		—		41		—		—		1,580
Nonperforming	—		1		—		—		—		—		—		—		—		1
Total	440		977		1,673		2,625		603		29		1,930		—		—		8,277








Consumer:
Residential mortgage:

Current	3,998		4,404		2,643		12,294		15,018		18,120		—		—		—		56,477
30 - 89 days past due	15		20		40		58		62		500		—		—		—		695
90 days or more past due	—		19		65		50		31		300		—		—		—		465
Nonperforming	—		1		6		32		27		125		—		—		—		191
Total	4,013		4,444		2,754		12,434		15,138		19,045		—		—		—		57,828
Gross charge-offs	—		—		1		—		—		1		—		—		—		2
Home equity:

Current	—		—		—		—		—		—		6,278		3,146		—		9,424
30 - 89 days past due	—		—		—		—		—		—		39		15		—		54
90 days or more past due	—		—		—		—		—		—		4		2		—		6
Nonperforming	—		—		—		—		—		—		37		70		—		107
Total	—		—		—		—		—		—		6,358		3,233		—		9,591
Gross charge-offs	—		—		—		—		—		—		6		—		—		6
Indirect auto:

Current	6,523		7,306		2,486		4,076		2,053		1,299		—		—		( 7 )		23,736
30 - 89 days past due	27		105		101		149		87		113		—		—		—		582

Nonperforming	3		37		44		67		44		45		—		—		—		240
Total	6,553		7,448		2,631		4,292		2,184		1,457		—		—		( 7 )		24,558
Gross charge-offs	2		42		62		84		37		54		—		—		—		281
Other consumer:

Current	7,213		7,714		4,984		4,197		1,836		2,178		2,644		25		4		30,795
30 - 89 days past due	23		51		66		47		19		24		7		2		—		239
90 days or more past due	2		5		10		4		—		—		2		1		—		24
Nonperforming	2		11		15		12		11		13		—		—		—		64
Total	7,240		7,781		5,075		4,260		1,866		2,215		2,653		28		4		31,122
Gross charge-offs	19		67		83		60		27		31		13		—		—		300







Credit card:
Current	—		—		—		—		—		—		4,726		32		—		4,758
30 - 89 days past due	—		—		—		—		—		—		65		5		—		70
90 days or more past due	—		—		—		—		—		—		46		3		—		49

Total	—		—		—		—		—		—		4,837		40		—		4,877
Gross charge-offs	—		—		—		—		—		—		138		6		—		144
Total	$	43,201	$	41,174	$	26,565	$	45,863	$	32,230	$	45,459	$	81,282	$	3,301	$	( 279 )	$	318,796
Gross charge-offs	$	27	$	158	$	216	$	172	$	75	$	143	$	266	$	6	$	—	$	1,063

Truist Financial Corporation 15


December 31, 2024 (Dollars in millions)	Amortized Cost Basis by Origination Year												Revolving Credit		Loans Converted to Term		Other (1)
	2024		2023		2022		2021		2020		Prior								Total
Commercial:
Commercial and industrial:
Pass	$	22,675	$	14,595	$	20,976	$	11,449	$	6,607	$	13,087	$	58,790	$	—	$	( 199 )	$	147,980
Special mention	460		302		377		407		80		254		830		—		—		2,710
Substandard	481		608		618		234		180		484		1,032		—		—		3,637
Nonperforming	28		98		64		31		11		60		229		—		—		521
Total	23,644		15,603		22,035		12,121		6,878		13,885		60,881		—		( 199 )		154,848
Gross charge-offs	33		126		66		14		6		42		108		—		—		395
CRE:
Pass	1,704		2,696		3,788		1,955		1,557		3,649		1,794		—		( 64 )		17,079
Special mention	262		65		331		197		52		29		91		—		—		1,027
Substandard	252		207		374		356		157		499		114		—		—		1,959
Nonperforming	7		134		52		7		34		64		—		—		—		298
Total	2,225		3,102		4,545		2,515		1,800		4,241		1,999		—		( 64 )		20,363
Gross charge-offs	14		48		111		1		32		110		—		—		—		316
Commercial construction:
Pass	721		1,603		1,521		516		37		71		1,461		—		—		5,930
Special mention	100		106		701		158		70		95		79		—		—		1,309
Substandard	54		95		752		308		—		—		69		—		—		1,278
Nonperforming	2		—		1		—		—		—		—		—		—		3
Total	877		1,804		2,975		982		107		166		1,609		—		—		8,520







Consumer:
Residential mortgage:

Current	4,174		2,754		12,743		15,471		5,298		13,793		—		—		—		54,233
30 - 89 days past due	21		30		69		70		49		480		—		—		—		719
90 or more days past due	7		53		44		31		34		312		—		—		—		481
Nonperforming	—		4		22		26		7		107		—		—		—		166
Total	4,202		2,841		12,878		15,598		5,388		14,692		—		—		—		55,599
Gross charge-offs	—		—		—		—		—		3		—		—		—		3
Home equity:

Current	—		—		—		—		—		—		6,135		3,322		—		9,457
30 - 89 days past due	—		—		—		—		—		—		42		18		—		60
90 days or more past due	—		—		—		—		—		—		6		3		—		9
Nonperforming	—		—		—		—		—		—		39		77		—		116
Total	—		—		—		—		—		—		6,222		3,420		—		9,642
Gross charge-offs	—		—		—		—		—		—		9		—		—		9
Indirect auto:

Current	8,904		3,130		5,279		2,814		1,299		791		—		—		( 9 )		22,208
30 - 89 days past due	80		113		177		110		58		84		—		—		—		622

Nonperforming	17		49		78		53		28		34		—		—		—		259
Total	9,001		3,292		5,534		2,977		1,385		909		—		—		( 9 )		23,089
Gross charge-offs	23		120		216		98		47		87		—		—		—		591
Other consumer:

Current	9,945		6,285		5,172		2,340		1,198		1,498		2,608		21		3		29,070
30 - 89 days past due	44		71		63		25		12		14		6		1		—		236
90 days or more past due	5		10		5		1		—		—		2		—		—		23
Nonperforming	5		18		16		12		5		10		—		—		—		66
Total	9,999		6,384		5,256		2,378		1,215		1,522		2,616		22		3		29,395
Gross charge-offs	90		193		159		70		35		31		28		—		—		606







Credit card:
Current	—		—		—		—		—		—		4,778		14		—		4,792
30 - 89 days past due	—		—		—		—		—		—		80		1		—		81
90 days or more past due	—		—		—		—		—		—		53		1		—		54

Total	—		—		—		—		—		—		4,911		16		—		4,927
Gross charge-offs	—		—		—		—		—		—		287		9		—		296
Total	$	49,948	$	33,026	$	53,223	$	36,571	$	16,773	$	35,415	$	78,238	$	3,458	$	( 269 )	$	306,383
Gross charge-offs	$	160	$	487	$	552	$	183	$	120	$	273	$	432	$	9	$	—	$	2,216

(1) Includes certain deferred fees and costs and other adjustments.

16 Truist Financial Corporation

ACL

The following tables present activity in the ACL:








(Dollars in millions)	Balance at Apr 1, 2024		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Jun 30, 2024
Commercial:
Commercial and industrial	$	1,360	$	( 83 )	$	14	$	46	$	1	$	1,338
CRE	663		( 97 )		5		90		—		661
Commercial construction	198		—		1		7		—		206

Consumer:
Residential mortgage	222		( 1 )		2		( 18 )		—		205
Home equity	90		( 3 )		4		( 3 )		—		88
Indirect auto	923		( 136 )		30		128		—		945
Other Consumer	959		( 141 )		28		112		—		958

Credit card	388		( 74 )		9		84		—		407

ALLL	4,803		( 535 )		93		446		1		4,808
RUFC	297		—		—		5		—		302
ACL	$	5,100	$	( 535 )	$	93	$	451	$	1	$	5,110

(Dollars in millions)	Balance at Apr 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Jun 30, 2025
Commercial:
Commercial and industrial	$	1,307	$	( 120 )	$	31	$	96	$	( 5 )	$	1,309
CRE	604		( 38 )		3		( 6 )		—		563
Commercial construction	280		—		1		( 22 )		—		259

Consumer:
Residential mortgage	227		( 1 )		—		( 6 )		—		220
Home equity	93		( 4 )		4		( 1 )		—		92
Indirect auto	955		( 127 )		28		134		—		990
Other consumer	989		( 146 )		31		177		—		1,051

Credit card	415		( 70 )		12		58		—		415

ALLL	4,870		( 506 )		110		430		( 5 )		4,899
RUFC	296		—		—		58		—		354
ACL	$	5,166	$	( 506 )	$	110	$	488	$	( 5 )	$	5,253



















(Dollars in millions)	Balance at Jan 1, 2024		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Jun 30, 2024
Commercial:
Commercial and industrial	$	1,404	$	( 180 )	$	46	$	68	$	—	$	1,338
CRE	616		( 200 )		12		233		—		661
Commercial construction	174		—		1		31		—		206

Consumer:
Residential mortgage	298		( 2 )		3		( 94 )		—		205
Home equity	89		( 6 )		9		( 4 )		—		88
Indirect auto	942		( 290 )		58		235		—		945
Other consumer	890		( 306 )		56		318		—		958

Credit card	385		( 151 )		18		155		—		407

ALLL	4,798		( 1,135 )		203		942		—		4,808
RUFC	295		—		—		9		( 2 )		302
ACL	$	5,093	$	( 1,135 )	$	203	$	951	$	( 2 )	$	5,110

Truist Financial Corporation 17


(Dollars in millions)	Balance at Jan 1, 2025		Charge-Offs		Recoveries		Provision (Benefit)		Other (1)		Balance at Jun 30, 2025
Commercial:
Commercial and industrial	$	1,284	$	( 222 )	$	55	$	196	$	( 4 )	$	1,309
CRE	643		( 108 )		10		18		—		563
Commercial construction	257		—		1		1		—		259

Consumer:
Residential mortgage	204		( 2 )		2		16		—		220
Home equity	89		( 6 )		8		1		—		92
Indirect auto	955		( 281 )		53		263		—		990
Other consumer	994		( 300 )		61		296		—		1,051

Credit card	431		( 144 )		23		105		—		415

ALLL	4,857		( 1,063 )		213		896		( 4 )		4,899
RUFC	304		—		—		50		—		354
ACL	$	5,161	$	( 1,063 )	$	213	$	946	$	( 4 )	$	5,253

(1) Includes the amounts for the ALLL for PCD acquisitions and other activity.

The commercial ALLL decreased $ 60 million, and the consumer and credit card ALLL increased $ 89 million, in the three months ended June 30, 2025. The decrease in the commercial ALLL primarily reflects a decrease in reserves related to the CRE portfolio that was partially offset by loan growth. The increase in the consumer and credit card ALLL was primarily driven by loan growth in the indirect auto and other consumer portfolios that was partially offset by a release of reserves in the residential mortgage and home equity portfolios. The commercial ALLL decreased $ 53 million, and the consumer and credit card ALLL increased $ 95 million, in the six months ended June 30, 2025. The driving factors of these year-to-date changes are generally consistent with those described above.

The quantitative models have been designed to estimate losses using macro-economic forecasts over a reasonable and supportable forecast period of two years, followed by a reversion to long-term historical loss conditions over a one-year period. Forecasts of macroeconomic variables used in loss forecasting include unemployment trends, U.S. real GDP, corporate credit spreads, property values, home price indices, and used car prices.

The overall economic forecast incorporates a third-party baseline forecast adjusted to reflect Truist’s interest rate outlook. Management also considers optimistic and pessimistic third-party macro-economic forecasts in order to capture uncertainty in the economic environment. These forecasts, along with the primary economic forecast, are weighted 40% baseline, 30% optimistic, and 30% pessimistic in the June 30, 2025 ACL, unchanged since December 31, 2024. While the scenario weightings were unchanged, the macroeconomic forecasts are dynamic and evolve with current and expected economic conditions. Risks, including tariff and inflation-related uncertainty not fully captured by the quantitative models and scenario weightings, are incrementally reflected in the qualitative component. The economic outlook continues to reflect risks related to the potential impacts of tariffs and increases to inflation and showed deterioration in the forecasted unemployment rate compared to the earlier quarter. The economic forecasts shaping the quantitative model outcomes of the ACL estimate as of June 30, 2025 included low single-digit GDP growth and a mid-to-high single-digit unemployment rate.

Quantitative models have certain limitations with respect to estimating expected losses, particularly in times of rapidly changing macro-economic conditions and forecasts. As a result, management believes that the qualitative component of the ACL, which incorporates management’s judgment related to expected future credit losses, will continue to be an important component of the ACL for the foreseeable future. The June 30, 2025 ACL estimate includes adjustments to consider the impact of current and expected events or risks not captured by the loss forecasting models, the outcomes of which are uncertain and may not be completely considered by quantitative models. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information.

18 Truist Financial Corporation

NPAs

The following table provides a summary of nonperforming loans and leases, excluding LHFS:


	June 30, 2025				December 31, 2024
	Recorded Investment				Recorded Investment
(Dollars in millions)	Without an ALLL		With an ALLL		Without an ALLL		With an ALLL
Commercial:
Commercial and industrial	$	76	$	444	$	52	$	469
CRE	7		121		32		266
Commercial construction	—		1		—		3

Consumer:
Residential mortgage	4		187		1		165
Home equity	1		106		1		115
Indirect auto	—		240		23		236
Other consumer	—		64		—		66


Total	$	88	$	1,163	$	109	$	1,320

The following table presents a summary of nonperforming assets and residential mortgage loans in the process of foreclosure:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Nonperforming loans and leases HFI	$	1,251	$	1,429
Nonperforming LHFS	12		—
Foreclosed real estate	4		3
Other foreclosed property	49		45
Total nonperforming assets	$	1,316	$	1,477
Residential mortgage loans in the process of foreclosure	$	187	$	169

Truist Financial Corporation 19

Loan Modifications

The following tables summarize the amortized cost basis and the weighted average financial effect of loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification granted.


Three Months Ended June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	359	$	—	$	—	$	—	$	—	$	—	$	20	$	379	0.23	%
CRE	278		—		—		—		—		—		—		278		1.37
Commercial construction	45		—		—		—		—		—		—		45		0.54
Consumer:					—
Residential mortgage	—		23		—		26		41		81		17		188		0.33
Home equity	—		—		—		—		—		—		2		2		0.02
Indirect auto	—		12		—		—		567		—		8		587		2.39
Other consumer	—		10		—		—		—		—		—		10		0.03
Credit card	—		—		8		—		—		—		—		8		0.16
Total	$	682	$	45	$	8	$	26	$	608	$	81	$	47	$	1,497	0.47

Six Months Ended June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	528	$	—	$	—	$	—	$	46	$	—	$	20	$	594	0.37	%
CRE	476		—		—		—		—		—		—		476		2.35
Commercial construction	73		—		—		—		—		—		—		73		0.88
Consumer:
Residential mortgage	—		39		—		61		58		162		38		358		0.62
Home equity	—		—		—		—		—		—		3		3		0.03
Indirect auto	—		17		1		—		987		—		16		1,021		4.16
Other consumer	—		19		—		—		—		—		1		20		0.06
Credit card	—		—		16		—		—		—		—		16		0.33
Total	$	1,077	$	75	$	17	$	61	$	1,091	$	162	$	78	$	2,561	0.80


Three Months Ended June 30, 2024 (Dollars in millions)	Renewals		Term Extensions		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	198	$	—	$	—	$	—	$	—	$	52	$	250	0.16	%
CRE	31		—		—		—		—		—		31		0.14
Commercial construction	5		—		—		—		—		—		5		0.06
Consumer:
Residential mortgage	—		24		14		25		59		15		137		0.25
Home equity	—		1		—		—		—		2		3		0.03
Indirect auto	—		6		—		642		—		7		655		2.98
Other consumer	—		10		—		—		—		1		11		0.04
Credit card	—		—		—		—		—		10		10		0.20
Total	$	234	$	41	$	14	$	667	$	59	$	87	$	1,102	0.36

Six Months Ended June 30, 2024 (Dollars in millions)	Renewals		Term Extensions		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total Modified Loans		Percentage of Total Class of Financing Receivable
Commercial:
Commercial and industrial	$	321	$	—	$	—	$	2	$	—	$	67	$	390	0.25	%
CRE	170		—		—		—		—		13		183		0.84
Commercial construction	45		—		—		—		—		—		45		0.58
Consumer:
Residential mortgage	—		43		26		33		112		25		239		0.44
Home equity	—		1		—		—		—		5		6		0.06
Indirect auto	—		12		—		989		—		15		1,016		4.62
Other consumer	—		19		—		1		—		2		22		0.08

Credit card	—		—		—		—		—		20		20		0.40
Total	$	536	$	75	$	26	$	1,025	$	112	$	147	$	1,921	0.63

20 Truist Financial Corporation

Three Months Ended June 30, 2025

Loan Type

Financial Effect

Renewals

Commercial and industrial

Extended the term by 14 months and increased the interest rate by 0.4%.

CRE

Extended the term by 13 months and increased the interest rate by 0.2%.

Commercial construction

Extended the term by 2 months.

Term Extensions

Residential mortgage

Extended the term by 90 months.

Indirect auto

Extended the term by 28 months.

Other consumer

Extended the term by 32 months.

Interest Rate Adjustments

Credit card

Decreased the interest rate by 17%.

Capitalizations

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.

Payment Delays

Residential mortgage

Provided 235 days of payment deferral.

Indirect auto

Provided 247 days of payment deferral.

Combination - Capitalization and Term Extension

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 94 months.

Six Months Ended June 30, 2025

Loan Type

Financial Effect

Renewals

Commercial and industrial

Extended the term by 12 months and increased the interest rate by 0.4%.

CRE

Extended the term by 15 months and increased the interest rate by 0.1%.

Commercial construction

Extended the term by 6 months.

Term Extensions

Residential mortgage

Extended the term by 96 months.

Indirect auto

Extended the term by 28 months.

Other consumer

Extended the term by 29 months.

Interest Rate Adjustments

Indirect auto

Decreased the interest rate by 7%.

Credit card

Decreased the interest rate by 17%.

Capitalizations

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.

Payment Delays

Commercial and industrial

Provided 180 days of payment deferral.

Residential mortgage

Provided 230 days of payment deferral.

Indirect auto

Provided 246 days of payment deferral.

Combination - Capitalization and Term Extension

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 96 months.

Truist Financial Corporation 21

Three Months Ended June 30, 2024

Loan Type

Financial Effect

Renewals

Commercial and industrial

Extended the term by 28 months and increased the interest rate by 0.05%.

CRE

Extended the term by 15 months and increased the interest rate by 0.01%.

Commercial construction

Extended the term by 10 months and increased the interest rate by 0.8%.

Term Extensions

Residential mortgage

Extended the term by 103 months.

Home equity

Extended the term by 170 months.

Indirect auto

Extended the term by 26 months.

Other Consumer

Extended the term by 22 months.

Capitalizations

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.

Payment Delays

Residential mortgage

Provided 198 days of payment deferral.

Indirect auto

Provided 193 days of payment deferral.

Combination - Capitalization and Term Extension

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 82 months.

Six Months Ended June 30, 2024

Loan Type

Financial Effect

Renewals

Commercial and industrial

Extended the term by 22 months and increased the interest rate by 0.2%.

CRE

Extended the term by 8 months and increased the interest rate by 0.27%.

Commercial construction

Extended the term by 12 months and increased the interest rate by 0.1%.

Term Extensions

Residential mortgage

Extended the term by 105 months.

Home equity

Extended the term by 161 months.

Indirect auto

Extended the term by 26 months.

Other consumer

Extended the term by 24 months.

Capitalizations

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance.

Payment Delays

Commercial and industrial

Provided 97 days of payment deferral.

Residential mortgage

Provided 198 days of payment deferral.

Indirect auto

Provided 186 days of payment deferral.

Other consumer

Provided 157 days of payment deferral

Combination - Capitalization and Term Extension

Residential mortgage

Capitalized a portion of forborne loan and other advanced payments into the outstanding loan balance and extended the term by 83 months.

The tables above exclude trial modifications totaling $ 42 million and $ 48 million as of June 30, 2025 and 2024, respectively. Such modifications will be included in the modification activity disclosure if the borrower successfully completes the trial period and the loan modification is finalized.

As of June 30, 2025 and December 31, 2024, Truist had $ 430 million and $ 336 million, respectively, in unfunded lending commitments to lend additional funds to borrowers experiencing financial difficulty for which Truist has modified the terms of the loans in the ways described above during the twelve months preceding June 30, 2025 and December 31, 2024, respectively.

Upon Truist’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the ACL is adjusted by the same amount.

22 Truist Financial Corporation

Truist closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table summarizes the period-end delinquency status and amortized cost of loans that were modified in the last 12 months. The period-end delinquency status of loans that were modified are disclosed at amortized cost and reflect the impact of any paydowns, payoffs, or charge-offs that occurred subsequent to modification.


	Payment Status
June 30, 2025 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	922	$	3	$	23	$	948
CRE	678		—		1		679
Commercial construction	143		—		—		143
Consumer:
Residential mortgage	343		111		132		586
Home equity	4		—		—		4
Indirect auto	1,021		220		32		1,273
Other consumer	31		2		1		34
Credit card	18		4		3		25
Total	$	3,160	$	340	$	192	$	3,692
Total nonaccrual loans included above	$	166	$	35	$	104	$	305

	Payment Status
December 31, 2024 (Dollars in millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
Commercial:
Commercial and industrial	$	974	$	44	$	18	$	1,036
CRE	313		7		3		323
Commercial construction	79		—		—		79
Consumer:
Residential mortgage	279		95		102		476
Home equity	9		—		—		9
Indirect auto	1,025		213		35		1,273
Other consumer	32		3		1		36
Credit card	20		3		2		25
Total	$	2,731	$	365	$	161	$	3,257
Total nonaccrual loans included above	$	232	$	78	$	91	$	401

Truist Financial Corporation 23

The following table provides the amortized cost basis of financing receivables that were modified in the last twelve months and were in payment default at period end:


June 30, 2025 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	23	$	—	$	—	$	—	$	—	$	—	$	—	$	23
CRE	1		—		—		—		—		—		—		1

Consumer:
Residential mortgage	—		11		—		5		69		40		7		132

Indirect auto	—		1		—		—		29		—		2		32
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		3		—		—		—		—		3
Total	$	24	$	13	$	3	$	5	$	98	$	40	$	9	$	192
















December 31, 2024 (Dollars in millions)	Renewals		Term Extensions		Interest Rate Adjustments		Capitalizations		Payment Delays		Combination - Capitalization and Term Extension		Other		Total
Commercial:
Commercial and industrial	$	18	$	—	$	—	$	—	$	—	$	—	$	—	$	18
CRE	3		—		—		—		—		—		—		3

Consumer:
Residential mortgage	—		13		—		6		44		33		6		102

Indirect auto	—		1		—		—		32		—		2		35
Other consumer	—		1		—		—		—		—		—		1
Credit card	—		—		2		—		—		—		—		2
Total	$	21	$	15	$	2	$	6	$	76	$	33	$	8	$	161

Unearned Income, Discounts, and Net Deferred Loan Fees and Costs

The following table presents additional information about loans and leases:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Unearned income, discounts, and net deferred loan fees and costs	$	526	$	595

24 Truist Financial Corporation

NOTE 6. Goodwill and Other Intangible Assets

The Company monitored events and circumstances during the period from January 1, 2025 to June 30, 2025, including macroeconomic and market factors, industry and banking sector events, Truist specific performance indicators, a comparison of management’s forecast and assumptions to those used in its October 1, 2024 quantitative impairment test, and the sensitivity of the October 1, 2024 quantitative results to changes in assumptions as of June 30, 2025. Based on these considerations, Truist concluded that it was not more-likely-than-not that the fair value of one or more of its reporting units is below its respective carrying amount as of June 30, 2025.

The Company most recently performed its annual goodwill impairment test for its CSBB, WB, and Wealth reporting units as of October 1, 2024. Based on the results of the quantitative analyses, the Company concluded that the fair values of the CSBB, WB and Wealth reporting units exceeded their respective carrying values; therefore, there was no goodwill impairment. However, for the WB reporting unit, the fair value of the reporting unit exceeded its carrying value by approximately 10%, indicating that the goodwill of the WB reporting unit may remain at risk of impairment. The fair values of the CSBB, WB, and Wealth reporting units were estimated using the income approach and a market-based approach, each weighted 50%.

The changes in the carrying amount of goodwill attributable to operating segments are reflected in the table below. Activity during 2024 primarily relates to the segment realignment and the divestiture of Sterling Capital Management, LLC. Refer to “Note 18. Operating Segments” for additional information on segments and “Note 21. Operating Segments” of the Annual Report on Form 10-K for the year ended December 31, 2024 for additional information on the segment realignment.



(Dollars in millions)	CSBB		WB		Total



Goodwill, January 1, 2024	$	13,503	$	3,653	$	17,156

Segment realignment	( 1,498 )		1,498		—
Divestitures	—		( 32 )		( 32 )

Adjustments and other	—		1		1
Goodwill, December 31, 2024	12,005		5,120		17,125





Goodwill, June 30, 2025	$	12,005	$	5,120	$	17,125

The following table, which excludes fully amortized intangibles, presents information for identifiable intangible assets:


		June 30, 2025									December 31, 2024
(Dollars in millions)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount			Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount
CDI		$	2,410		$	( 1,880 )		$	530		$	2,453		$	( 1,837 )		$	616
Other, primarily client relationship intangibles		1,462			( 593 )			869			1,458			( 524 )			934
Total		$	3,872		$	( 2,473 )		$	1,399		$	3,911		$	( 2,361 )		$	1,550

Truist Financial Corporation 25

NOTE 7. Loan Servicing

The Company acquires servicing rights, and retains servicing rights related to certain of its sales or securitizations of residential mortgages, commercial mortgages, and other consumer loans. Servicing rights are capitalized by the Company as Loan servicing rights on the Consolidated Balance Sheets. Income earned by the Company on its loan servicing rights is derived primarily from contractually specified servicing fees, late fees, net of curtailment costs, and other ancillary fees.

Residential Mortgage Activities

The following tables summarize residential mortgage servicing activities:



(Dollars in millions)	Jun 30, 2025			Dec 31, 2024
UPB of residential mortgage loan servicing portfolio	$	270,750		$	273,412
UPB of residential mortgage loans serviced for others, primarily agency conforming fixed rate	213,002			218,475
Mortgage loans sold with recourse	138			146
Maximum recourse exposure from mortgage loans sold with recourse liability	87			91
Indemnification, recourse and repurchase reserves	27			44

As of / For the Six Months Ended June 30, (Dollars in millions)	2025			2024
UPB of residential mortgage loans sold from LHFS	$	4,990		$	4,651
Pre-tax gains recognized on mortgage loans sold and held for sale	35			34
Servicing fees recognized from mortgage loans serviced for others	309			294
Approximate weighted average servicing fee on the outstanding balance of residential mortgage loans serviced for others	0.28		%	0.28		%
Weighted average interest rate on mortgage loans serviced for others	3.70			3.63

The following table presents a roll forward of the carrying value of residential MSRs recorded at fair value:




(Dollars in millions)	2025		2024
Residential MSRs, carrying value, January 1	$	3,430	$	3,088

Additions	102		78
Sales	—		( 2 )
Change in fair value due to changes in valuation inputs or assumptions	( 31 )		88
Realization of expected net servicing cash flows, passage of time, and other	( 151 )		( 135 )
Residential MSRs, carrying value, June 30	$	3,350	$	3,117

The sensitivity of the fair value of the Company’s residential MSRs to changes in key assumptions is presented in the following table:


	June 30, 2025							December 31, 2024
	Range				Weighted Average			Range				Weighted Average
(Dollars in millions)	Min		Max					Min		Max
Prepayment speed	6.3	%	13.5	%	7.4		%	6.3	%	11.2	%	7.1		%
Effect on fair value of a 10% increase					$	( 94 )						$	( 89 )
Effect on fair value of a 20% increase					( 181 )							( 172 )
OAS	1.4	%	12.2	%	4.8		%	1.8	%	12.5	%	4.8		%
Effect on fair value of a 10% increase					$	( 70 )						$	( 70 )
Effect on fair value of a 20% increase					( 137 )							( 138 )
Composition of loans serviced for others:
Fixed-rate residential mortgage loans					99.7		%					99.7		%
Adjustable-rate residential mortgage loans					0.3							0.3
Total					100.0		%					100.0		%
Weighted average life					7.5 years							7.6 years

The sensitivity calculations above are hypothetical and should not be considered predictive of future performance. As indicated, changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in the above table, the effect of an adverse variation in one assumption on the fair value of the MSRs is calculated without changing any other assumption; while in reality, changes in one factor may result in changes in another, which may magnify or counteract the effect of the change. See “Note 15. Fair Value Disclosures” for additional information on the valuation techniques used.

26 Truist Financial Corporation

Commercial Mortgage Activities

The following table summarizes commercial mortgage servicing activities:



(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
UPB of CRE mortgages serviced for others	$	27,007	$	27,845
CRE mortgages serviced for others covered by recourse provisions	9,731		9,985
Maximum recourse exposure from CRE mortgages sold with recourse liability	2,866		2,940
Recorded reserves related to recourse exposure	11		11
CRE mortgages originated during the year-to-date period	277		1,467
Commercial MSRs at fair value	238		265

NOTE 8. Other Assets and Liabilities

Lessee Operating and Finance Leases

The Company leases certain assets, consisting primarily of real estate, and assesses at contract inception whether a contract is, or contains, a lease. The following tables present additional information on leases, excluding leases related to the lease financing businesses:




	June 30, 2025						December 31, 2024
(Dollars in millions)	Operating Leases			Finance Leases			Operating Leases			Finance Leases
ROU assets	$	1,042		$	17		$	1,015		$	17
Lease liabilities	1,303			19			1,301			19
Weighted average remaining term	6.7 years			7.7 years			6.7 years			7.8 years
Weighted average discount rate	3.6		%	5.1		%	3.5		%	5.1		%


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Operating lease costs	$	69	$	66	$	137	$	143

Lessor Operating Leases

The Company’s two primary lessor businesses are equipment financing and structured real estate with income recorded in Operating lease income on the Consolidated Statements of Income. The following table presents a summary of assets under operating leases held for investment. This table excludes subleases on assets included in premises and equipment.


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Assets held under operating leases (1)(2)	$	1,917	$	1,843


Accumulated depreciation	( 534 )		( 539 )
Net	$	1,383	$	1,304

(1) Includes certain land parcels subject to operating leases that have indefinite lives.

(2) Excludes operating leases held-for-sale that totaled $ 22 million and $ 18 million at June 30, 2025 and December 31, 2024, respectively.

Truist Financial Corporation 27

NOTE 9. Borrowings

The following table presents a summary of long-term debt:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024


Truist Financial Corporation: (1)
Fixed rate senior notes	$	21,821	$	22,134

Fixed rate subordinated notes (2)	1,823		1,828
Capital notes (2)	636		634

Truist Bank: (1)
Fixed rate senior notes	1,748		1,744

Fixed rate subordinated notes (2)	4,796		4,771

Floating rate FHLB advances	12,150		2,400
Other long-term debt (3)	1,453		1,445


Total long-term debt	$	44,427	$	34,956

(1) Certain senior and subordinated notes convert from fixed to floating one year prior to maturity, and are callable within the final year of maturity at par.

(2) Subordinated and capital notes with a remaining maturity of one year or greater qualify under the risk-based capital guidelines as Tier 2 supplementary capital, subject to certain limitations.

(3) Includes debt associated with finance leases, tax credit investments, and other.

In July 2025, Truist redeemed all $ 1.5 billion principal amount outstanding of its fixed-to-floating rate senior holding company notes due July 28, 2026.

In July 2025, Truist issued $ 1.5 billion principal amount of fixed-to-floating rate senior bank notes with an interest rate of 4.42 % due July 24, 2028 and $ 500 million floating rate senior bank notes due July 24, 2028.

NOTE 10. Shareholders’ Equity

Dividends on Common and Preferred Stock

The following table presents total dividends declared per share of common and preferred stock:


(Dollars in millions, except per share data)	Dividends Per Share								Aggregate Dividends
	Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,			Six Months Ended June 30,
	2025		2024		2025		2024			2025		2024		2025		2024
Common stock	$	0.52	$	0.52	$	1.04	$	1.04		$	670	$	696	$	1,349	$	1,390
Preferred stock:
Series I	1,286.86		1,598.23		2,588.71		3,159.45			2		3		4		5
Series J	1,315.93		1,628.26		2,646.85		3,218.54			2		2		3		3
Series L	—		2,269.81		—		4,481.17			—		16		—		33
Series M	2,562.50		2,562.50		2,562.50		2,562.50			13		13		13		13
Series N	—		—		833.63		600.00			—		—		56		41
Series O	328.13		328.13		656.25		656.25			7		7		15		15
Series P	618.75		618.75		618.75		618.75			25		25		25		25
Series Q	—		—		637.50		637.50			—		—		26		26
Series R	296.88		296.88		593.75		593.75			11		11		22		22
Total preferred stock										$	60	$	77	$	164	$	183

Share Repurchase Activity

In June 2024, Truist announced that the Board had authorized the repurchase of up to $ 5.0 billion of common stock beginning in the third quarter of 2024 through 2026 as part of Truist’s overall capital distribution strategy. For the six months ended June 30, 2025, the Company repurchased $1.3 billion of common stock, including excise tax, which represented 31.5 million shares, through open market repurchases. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. At June 30, 2025, Truist had remaining authorization to repurchase up to $ 2.8 billion of common stock under the Board approved repurchase plan.

28 Truist Financial Corporation

NOTE 11. AOCI

AOCI includes the after-tax change in unrecognized net costs related to defined benefit pension and OPEB plans as well as unrealized gains and losses on cash flow hedges, AFS securities, and HTM securities previously transferred from AFS securities.






(Dollars in millions)	Pension and OPEB Costs		Cash Flow Hedges		AFS Securities		HTM Securities		Other, net		Total
AOCI balance, April 1, 2024	$	( 1,078 )	$	( 490 )	$	( 9,354 )	$	( 2,296 )	$	( 4 )	$	( 13,222 )
OCI before reclassifications, net of tax	34		( 99 )		( 325 )		—		1		( 389 )

Amounts reclassified from AOCI:
Before tax	—		79		6,529		75		—		6,683
Tax effect	—		18		1,540		18		—		1,576
Amounts reclassified, net of tax	—		61		4,989		57		—		5,107
Total OCI, net of tax	34		( 38 )		4,664		57		1		4,718
AOCI balance, June 30, 2024	$	( 1,044 )	$	( 528 )	$	( 4,690 )	$	( 2,239 )	$	( 3 )	$	( 8,504 )
AOCI balance, April 1, 2025	$	( 643 )	$	( 432 )	$	( 4,095 )	$	( 2,075 )	$	( 5 )	$	( 7,250 )
OCI before reclassifications, net of tax	1		205		69		—		5		280

Amounts reclassified from AOCI:
Before tax	1		92		( 66 )		71		—		98
Tax effect	—		22		( 13 )		12		—		21
Amounts reclassified, net of tax	1		70		( 53 )		59		—		77
Total OCI, net of tax	2		275		16		59		5		357
AOCI balance, June 30, 2025	$	( 641 )	$	( 157 )	$	( 4,079 )	$	( 2,016 )	$	—	$	( 6,893 )

(Dollars in millions)	Pension and OPEB Costs		Cash Flow Hedges		AFS Securities		HTM Securities		Other, net		Total









AOCI balance, January 1, 2024	$	( 1,079 )	$	( 300 )	$	( 8,778 )	$	( 2,347 )	$	( 2 )	$	( 12,506 )
OCI before reclassifications, net of tax (1)	35		( 331 )		( 780 )		—		( 1 )		( 1,077 )

Amounts reclassified from AOCI:
Before tax	—		134		6,371		141		—		6,646
Tax effect	—		31		1,503		33		—		1,567
Amounts reclassified, net of tax	—		103		4,868		108		—		5,079
Total OCI, net of tax	35		( 228 )		4,088		108		( 1 )		4,002
AOCI balance, June 30, 2024	$	( 1,044 )	$	( 528 )	$	( 4,690 )	$	( 2,239 )	$	( 3 )	$	( 8,504 )
AOCI balance, January 1, 2025	$	( 648 )	$	( 861 )	$	( 4,573 )	$	( 2,125 )	$	( 6 )	$	( 8,213 )
OCI before reclassifications, net of tax	6		563		612		—		6		1,187

Amounts reclassified from AOCI:
Before tax	1		185		( 151 )		136		—		171
Tax effect	—		44		( 33 )		27		—		38
Amounts reclassified, net of tax	1		141		( 118 )		109		—		133
Total OCI, net of tax	7		704		494		109		6		1,320
AOCI balance, June 30, 2025	$	( 641 )	$	( 157 )	$	( 4,079 )	$	( 2,016 )	$	—	$	( 6,893 )
Primary income statement location of amounts reclassified from AOCI	Other expense		Net interest income		Securities gains (losses) and Interest on securities		Interest on securities		Other income

(1) Includes the impact of the remeasurement of the pension plan and the reduction of pension benefit obligations following the sale of TIH. Refer to “Note 13. Benefit Plans” for additional information.

Truist Financial Corporation 29

NOTE 12. Income Taxes

For the three months ended June 30, 2025, the provision for income taxes was $ 273 million compared to a benefit from income taxes of $1.3 billion for the three months ended June 30, 2024, representing effective tax rates of 18.0 % and 25.3 %, respectively. For the six months ended June 30, 2025, the provision for income taxes was $ 547 million compared to a benefit from income taxes of $1.1 billion for the six months ended June 30, 2024, representing effective tax rates of 17.9 % and 28.3 %, respectively. The benefit from income taxes for the three and six months ended June 30, 2024 was driven by the discrete impact of the balance sheet repositioning of securities. The Company calculated the provision for income taxes by applying the estimated annual effective tax rate to year-to-date pre-tax income and adjusting for discrete items that occurred during the period.

NOTE 13. Benefit Plans

The components of net periodic (benefit) cost for defined benefit pension plans are summarized in the following table:


		Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Service cost (1)	Personnel expense / Net income from discontinued operations	$	69	$	84	$	137	$	180
Interest cost	Other expense	114		112		228		220
Estimated return on plan assets	Other expense	( 242 )		( 238 )		( 485 )		( 482 )
Amortization and other	Other expense	—		—		—		1
Net periodic (benefit) cost		$	( 59 )	$	( 42 )	$	( 120 )	$	( 81 )

(1) Includes $ 2 million and $ 10 million for the three and six months ended June 30, 2024, respectively, of service cost reported in net income from discontinued operations for the qualified defined benefit pension plan for employees of TIH.

Truist may make contributions to the qualified pension plans up to the maximum amount deductible for federal income tax purposes. Truist did not make a discretionary contribution to the qualified pension plan during the six months ended June 30, 2025.

30 Truist Financial Corporation

NOTE 14. Commitments and Contingencies

Truist utilizes a variety of financial instruments to mitigate exposure to risks and meet the financing needs and provide investment opportunities for clients. These financial instruments include commitments to extend credit, letters of credit and financial guarantees, derivatives, and other investments. Truist also has commitments to fund certain affordable housing investments and contingent liabilities related to certain sold loans.

Tax Credit and Certain Equity Investments

The following table summarizes certain tax credit and certain equity investments:


(Dollars in millions)	Balance Sheet Location	Jun 30, 2025		Dec 31, 2024
Investments in affordable housing projects and other qualified tax credits:
Carrying amount	Other assets	$	7,743	$	7,782
Amount of future funding commitments included in carrying amount	Other liabilities	2,410		2,667
Lending exposure	Loans and leases for funded amounts	2,220		2,376

Renewable energy investments:
Carrying amount	Other assets	840		551
Amount of future funding commitments not included in carrying amount	NA	503		702
SBIC and certain other equity method investments:
Carrying amount	Other assets	947		878
Amount of future funding commitments not included in carrying amount	NA	598		613

The following table presents a summary of tax credits and amortization expense associated with the Company’s tax credit investment activity. Activity related to the Company’s renewable energy investments, other than qualified tax credits, was immaterial.


		Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Tax credits:


Investments in affordable housing projects, other qualified tax credits, and other community development investments	Provision for income taxes	$	209	$	185	$	420	$	370

Amortization and other changes in carrying amount:
Investments in affordable housing projects and other qualified tax credits	Provision for income taxes	$	186	$	170	$	374	$	341
Other community development investments	Other noninterest income	3		3		5		5

Letters of Credit and Financial Guarantees

In the normal course of business, Truist utilizes certain financial instruments to meet the financing needs of clients and to mitigate exposure to risks. Such financial instruments include commitments to extend credit and certain contractual agreements, including standby letters of credit and financial guarantee arrangements.

The following is a summary of selected notional amounts of off-balance sheet financial instruments:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Commitments to extend, originate, or purchase credit and other commitments	$	221,244	$	210,645
Residential mortgage loans sold with recourse	138		146
CRE mortgages serviced for others covered by recourse provisions	9,731		9,985
Other loans serviced for others covered by recourse and other provisions	2,388		2,022
Letters of credit	8,399		7,532

Truist Financial Corporation 31

Total Return Swaps

The Company enters into TRS transactions with third-party clients, whereby a VIE purchases reference assets identified by a client. The Company financially supports the VIE’s purchases of the reference assets. Reference assets are typically fixed income instruments primarily composed of syndicated bank loans. The TRS contracts pass through interest and other cash flows on the reference assets to the third-party clients, along with exposing those clients to decreases in value on the reference assets and providing them with the rights to appreciation on the reference assets. The terms of the TRS contracts require the third-party clients to post initial margin collateral, as well as ongoing variation margin as the fair values of the underlying reference assets change. The following table provides a summary of the TRS transactions with the associated VIE reference assets, which include trading loans and bonds:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Total return swaps:
VIE assets	$	2,396	$	1,854
Trading loans and bonds	2,014		1,473
VIE liabilities	379		356

The Company concluded that the associated VIEs should be consolidated because the Company has (i) the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) the obligation to absorb losses and the right to receive benefits, which could potentially be significant. The activities of the VIEs are restricted to buying and selling the reference assets, and the risks/benefits of any such assets owned by the VIEs are passed to the third-party clients via the TRS contracts.

Pledged Assets

Certain assets were pledged to secure municipal deposits, securities sold under agreements to repurchase, certain derivative agreements, and borrowings or borrowing capacity, as well as to fund certain obligations related to nonqualified defined benefit and defined contribution retirement plans and for other purposes as required or permitted by law. Assets pledged to the FHLB and FRB are subject to applicable asset discounts when determining borrowing capacity. The Company has capacity for secured financing from both the FRB and FHLB and letters of credit from the FHLB. The Company’s letters of credit from the FHLB can be used to secure various client deposits, including public fund relationships. Excluding assets related to nonqualified benefit plans, the majority of the agreements governing the pledged assets do not permit the other party to sell or repledge the collateral. The following table provides the total carrying amount of pledged assets by asset type:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Pledged securities	$	36,759	$	48,058

Pledged loans:
FRB	103,542		93,497
FHLB	73,185		71,931
Unused borrowing capacity:
FRB	80,374		72,040
FHLB	30,417		31,411

Legal Proceedings and Other Matters

Truist is routinely named as a defendant in or a party to numerous actual or threatened legal proceedings and other matters and is or may be subject to potential liability in connection with them. The legal proceedings and other 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. Claims may be based in law or equity—such as those arising under contracts or in tort and those involving banking, consumer-protection, securities, antitrust, tax, employment, and other laws—and some present novel legal theories, allegations of substantial or indeterminate damages, demands for injunctive or similar relief, and requests for fines, penalties, restitution, or alterations in Truist’s business practices. Our legal proceedings and other matters exist in varying stages of adjudication, arbitration, negotiation, or investigation and span our business lines and operations.

The course and outcome of legal proceedings and other 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. As a result, we often are unable to determine how or when actual or threatened legal proceedings and other matters will be resolved and what losses may be incrementally and ultimately incurred. It is possible that the ultimate resolution of these matters, including the matter described below, if unfavorable, may be material to the consolidated financial position, consolidated results of operations, or consolidated cash flows of Truist, or cause significant reputational consequences.

32 Truist Financial Corporation

Truist establishes accruals for legal proceedings and other matters when potential losses become 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 and others. No assurance exists that our accruals will not need to be adjusted in the future. Actual losses may be higher or lower than any amounts accrued, possibly to a significant degree.

The Company estimates reasonably possible losses, in excess of amounts accrued, of up to approximately $ 375 million as of June 30, 2025. This estimate does not represent Truist’s maximum loss exposure, and actual losses may vary significantly. Also, the outcome of a particular matter may be one that the Company did not take into account in its estimate because the Company judged the likelihood of that outcome to be remote. In addition, the matters underlying this estimate may change from time to time. Estimated losses, like accruals, are based upon currently available information and involve considerable uncertainties and judgment.

For certain matters, Truist may be unable to estimate the loss or range of loss, even if it believes that a loss is probable or reasonably possible, until developments in the matter provide additional information sufficient to support such an estimate. These matters are not accrued for and are not reflected in the estimate of reasonably possible losses.

The following is a description of a legal proceeding in which Truist is involved:

Bickerstaff v. SunTrust Bank

This class action case was filed in Fulton County State Court on July 12, 2010, and an amended complaint was filed on August 9, 2010. Plaintiff alleges that all overdraft fees charged to his account which related to debit card and ATM transactions are actually interest charges and therefore subject to the usury laws of Georgia. The amended complaint asserts claims for violations of civil and criminal usury laws, conversion, and money had and received, and seeks damages on a class-wide basis, including refunds of challenged overdraft fees and pre-judgment interest. On October 6, 2017, the trial court granted plaintiff’s motion for class certification and defined the class as “Every Georgia citizen who had or has one or more accounts with SunTrust Bank and who, from July 12, 2006, to October 6, 2017 (i) had at least one overdraft of $500.00 or less resulting from an ATM or debit card transaction (the “Transaction”); (ii) paid any Overdraft Fees as a result of the Transaction; and (iii) did not receive a refund of those Fees,” and the granting of a certified class was affirmed on appeal. The class sought a return of up to $ 452 million in paid overdraft fees plus prejudgment interest, which based on this amount of claimed fees would have been estimated at approximately $ 447 million as of June 30, 2025. A court-ordered mediation was held on February 28, 2024, but no resolution was reached. On March 4, 2024, the trial court issued an order granting in part and denying in part Truist’s motions to amend the class definition to narrow the scope of the class, to compel arbitration against certain class members, and for summary judgment. Truist and the class separately appealed the trial court’s order to the Georgia Court of Appeals.

On February 20, 2025, the Court of Appeals ruled on the appeals and affirmed in part and reversed in part the trial court’s March 4, 2024 order. Truist and the class filed motions to reconsider with the Court of Appeals, which were denied on March 19, 2025. On April 8, 2025, Truist filed a petition for a writ of certiorari with the Georgia Supreme Court, which remains pending. The class did not seek such a writ, and therefore, the rulings by the Court of Appeals in favor of Truist are final.

Truist Financial Corporation 33

NOTE 15. Fair Value Disclosures

Recurring Fair Value Measurements

Accounting standards define fair value as the price that would be received on the measurement date to sell an asset or the price paid to transfer a liability in the principal or most advantageous market available to the entity in an orderly transaction between market participants, with a three-level measurement hierarchy:

• Level 1: Quoted prices for identical instruments in active markets

• Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets

• Level 3: Valuations derived from valuation techniques in which one or more significant inputs are unobservable

The following tables present fair value information for assets and liabilities measured at fair value on a recurring basis:


June 30, 2025 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments (1)
Assets:
Trading assets:
U.S. Treasury	$	220	$	—	$	220	$	—	$	—
GSE	42		—		42		—		—


States and political subdivisions	796		—		796		—		—

Corporate and other debt securities	1,720		—		1,720		—		—
Loans	2,184		—		2,184		—		—
Equity securities	916		916		—		—		—
Other	85		—		85		—		—
Total trading assets	5,963		916		5,047		—		—
AFS securities:
U.S. Treasury	13,471		—		13,471		—		—
GSE	435		—		435		—		—
Agency MBS – residential	49,455		—		49,455		—		—
Agency MBS – commercial	2,653		—		2,653		—		—
States and political subdivisions	361		—		361		—		—

Other	15		—		15		—		—
Total AFS securities	66,390		—		66,390		—		—
LHFS at fair value	1,105		—		1,105		—		—
Loans and leases	12		—		—		12		—
Loan servicing rights at fair value	3,612		—		—		3,612		—
Other assets:
Derivative assets	1,647		1,212		2,121		6		( 1,692 )
Equity securities	330		278		52		—		—


Total assets	$	79,059	$	2,406	$	74,715	$	3,630	$	( 1,692 )
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	396	$	—	$	396	$	—	$	—
Short-term borrowings:
Securities sold short	1,999		497		1,502		—		—
Other trading liabilities	200		—		200		—		—
Other liabilities:
Derivative liabilities	1,812		546		4,024		26		( 2,784 )
Total liabilities	$	4,407	$	1,043	$	6,122	$	26	$	( 2,784 )

34 Truist Financial Corporation


December 31, 2024 (Dollars in millions)	Total		Level 1		Level 2		Level 3		Netting Adjustments (1)
Assets:
Trading assets:
U.S. Treasury	$	143	$	—	$	143	$	—	$	—
GSE	41		—		41		—		—


States and political subdivisions	786		—		786		—		—

Corporate and other debt securities	1,679		—		1,679		—		—
Loans	1,671		—		1,671		—		—
Equity securities	413		413		—		—		—
Other	367		267		100		—		—
Total trading assets	5,100		680		4,420		—		—
AFS securities:
U.S. Treasury	14,411		—		14,411		—		—
GSE	403		—		403		—		—
Agency MBS – residential	49,959		—		49,959		—		—
Agency MBS – commercial	2,293		—		2,293		—		—
States and political subdivisions	382		—		382		—		—

Other	16		—		16		—		—
Total AFS securities	67,464		—		67,464		—		—
LHFS at fair value	1,233		—		1,233		—		—
Loans and leases	13		—		—		13		—
Loan servicing rights at fair value	3,708		—		—		3,708		—
Other assets:
Derivative assets	966		1,147		1,675		2		( 1,858 )
Equity securities	305		298		7		—		—


Total assets	$	78,789	$	2,125	$	74,799	$	3,723	$	( 1,858 )
Liabilities:
Interest-bearing deposits:
Brokered time deposits	$	192	$	—	$	192	$	—	$	—
Short-term borrowings:
Securities sold short	1,694		358		1,336		—		—
Other trading liabilities	202		—		202		—		—
Other liabilities:
Derivative liabilities	2,286		569		4,088		43		( 2,414 )
Total liabilities	$	4,374	$	927	$	5,818	$	43	$	( 2,414 )

(1) Refer to “Note 16. Derivative Financial Instruments” for additional discussion on netting adjustments.

At June 30, 2025 and December 31, 2024, investments totaling $ 584 million and $ 535 million, respectively, have been excluded from the table above as they are valued based on net asset value as a practical expedient. These investments primarily consist of certain SBIC funds.

For additional information on the valuation techniques and significant inputs for Level 2 and Level 3 assets and liabilities that are measured at fair value on a recurring basis, see “Note 18. Fair Value Disclosures” of the Annual Report on Form 10-K for the year ended December 31, 2024.

Truist Financial Corporation 35

Activity for Level 3 assets and liabilities is summarized below:




Three Months Ended June 30, 2025 and 2024 (Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives
Balance at April 1, 2024	$	14	$	3,417	$	( 21 )
Total realized and unrealized gains (losses):
Included in earnings	—		30		( 4 )


Issuances	—		52		12
Sales	—		( 1 )		—
Settlements	—		( 88 )		( 7 )


Balance at June 30, 2024	$	14	$	3,410	$	( 20 )
Balance at April 1, 2025	$	12	$	3,628	$	( 33 )
Total realized and unrealized gains (losses):
Included in earnings	—		27		2


Issuances	—		54		13

Settlements	—		( 97 )		( 2 )


Balance at June 30, 2025	$	12	$	3,612	$	( 20 )
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	27	$	4

Six Months Ended June 30, 2025 and 2024 (Dollars in millions)	Loans and Leases		Loan Servicing Rights		Net Derivatives













Balance at January 1, 2024	$	15	$	3,378	$	( 19 )
Total realized and unrealized gains (losses):
Included in earnings	—		112		( 7 )


Issuances	—		84		11
Sales	—		( 2 )		—
Settlements	( 1 )		( 162 )		( 5 )




Balance at June 30, 2024	$	14	$	3,410	$	( 20 )
Balance at January 1, 2025	$	13	$	3,708	$	( 41 )
Total realized and unrealized gains (losses):
Included in earnings	—		( 29 )		8


Issuances	—		111		17

Settlements	( 1 )		( 178 )		( 4 )



Balance at June 30, 2025	$	12	$	3,612	$	( 20 )
Change in unrealized gains (losses) included in earnings for the period, attributable to assets and liabilities still held at June 30, 2025	$	—	$	( 29 )	$	1
Primary income statement location of realized gains (losses) included in earnings	Other income		Mortgage banking income		Mortgage banking income and other income

Fair Value Option

The following table details the fair value and UPB of certain loans and time deposits that were elected to be measured at fair value:


	June 30, 2025						December 31, 2024
(Dollars in millions)	Fair Value		UPB		Difference		Fair Value		UPB		Difference
Trading loans	$	2,184	$	2,240	$	( 56 )	$	1,671	$	1,697	$	( 26 )
Loans and leases	12		13		( 1 )		13		14		( 1 )
LHFS at fair value	1,105		1,084		21		1,233		1,232		1
Brokered time deposits	396		399		( 3 )		192		195		( 3 )

36 Truist Financial Corporation

Nonrecurring Fair Value Measurements

The following table provides information about certain assets measured at fair value on a nonrecurring basis still held as of period end with valuation adjustments recorded during the period. The carrying values represent end of period values, which approximate the fair value.


(Dollars in millions)	Fair Value Hierarchy	Jun 30, 2025		Dec 31, 2024
Carrying value:
LHFS	Level 2	$	60	$	—
LHFS	Level 3	3		4
Loans and leases (1)	Level 3	293		525
Other	Level 3	103		147

(1) Total loans and leases measured at fair value on a nonrecurring basis still held as of period end were $ 485 million and $ 682 million at June 30, 2025 and December 31, 2024, respectively.

The following table provides information about valuation adjustments for certain assets measured at fair value on a nonrecurring basis. The valuation adjustments represent the amounts recorded during the period regardless of whether the asset is still held at period end.


	Six Months Ended June 30,
(Dollars in millions)	2025		2024
Valuation adjustments:
LHFS	$	( 68 )	$	( 16 )
Loans and leases	( 420 )		( 557 )
Other	( 148 )		( 166 )

LHFS with valuation adjustments in the table above consisted primarily of residential mortgages and commercial loans that were valued using market prices and measured at LOCOM.

Loans and leases consist of larger commercial loans and leases that are collateral-dependent and other secured loans and leases that have been charged-off to the fair value of the collateral. Valuation adjustments for loans and leases are primarily recorded in the Provision for credit losses in the Consolidated Statement of Income. Refer to “Note 1. Basis of Presentation” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional discussion of individually evaluated loans and leases.

Other includes foreclosed real estate, other foreclosed property, partnership investments, premises and equipment, OREO, and held for sale operating leases, and consists primarily of residential homes, commercial properties, vacant lots, and automobiles. Partnership investments are measured based on discounted expected future cash flows. The remaining assets are measured at LOCOM, less costs to sell.

Truist Financial Corporation 37

Financial Instruments Not Recorded at Fair Value

For financial instruments not recorded at fair value, estimates of fair value are based on relevant market data and information about the instruments. Values obtained relate to trading without regard to any premium or discount that may result from concentrations of ownership, possible tax ramifications, estimated transaction costs that may result from bulk sales, or the relationship between various instruments.

An active market does not exist for certain financial instruments. Fair value estimates for these instruments are based on current economic conditions and interest rate risk characteristics, loss experience, and other factors. Many of these estimates involve uncertainties and matters of significant judgment and cannot be determined with precision. Therefore, the fair value estimates in many instances cannot be substantiated by comparison to independent markets. In addition, changes in assumptions could significantly affect these fair value estimates. Financial assets and liabilities not recorded at fair value are summarized below:


		June 30, 2025				December 31, 2024
(Dollars in millions)	Fair Value Hierarchy	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
HTM securities	Level 2	$	48,973	$	39,611	$	50,640	$	40,286
Loans and leases HFI, net of ALLL	Level 3	313,885		309,836		301,513		294,190
Financial liabilities:
Time deposits	Level 2	47,271		47,147		36,532		36,377
Long-term debt	Level 2	44,427		44,610		34,956		34,917

The carrying value of the RUFC, which approximates the fair value, was $ 354 million and $ 304 million at June 30, 2025 and December 31, 2024, respectively. Cash and due from banks, interest-bearing deposits with banks, securities borrowed or purchased under agreements to resell, and short-term borrowings are reflected in the Consolidated balance sheets at cost, which approximates the fair value due to the short-term nature of these instruments and their limited inherent credit risk.

38 Truist Financial Corporation

NOTE 16. Derivative Financial Instruments

Impact of Derivatives on the Consolidated Balance Sheets

The following table presents the gross notional amounts and estimated fair value of derivative instruments employed by the Company:


	June 30, 2025						December 31, 2024
	Notional Amount		Fair Value				Notional Amount		Fair Value
(Dollars in millions)			Assets		Liabilities				Assets		Liabilities
Cash flow hedges:
Interest rate contracts:

Swaps hedging commercial loans	$	66,335	$	—	$	—	$	66,585	$	—	$	—
Fair value hedges:
Interest rate contracts:
Swaps hedging long-term debt	23,258		—		—		17,368		—		—


Swaps hedging AFS securities	28,587		—		—		30,126		—		—

Total	51,845		—		—		47,494		—		—
Not designated as hedges:
Client-related and other risk management:
Interest rate contracts:
Swaps	165,734		537		( 1,104 )		146,194		488		( 1,706 )
Written options	9,662		17		( 31 )		9,623		16		( 49 )
Purchased options	9,660		25		( 1 )		11,321		29		( 1 )
Futures and forwards	3,685		3		( 7 )		4,782		1		( 2 )

Foreign exchange contracts:
Swaps	10,126		468		( 415 )		7,397		128		( 114 )
Futures and forwards	21,766		339		( 368 )		21,966		311		( 270 )
Other	2,342		43		( 38 )		760		5		( 4 )
Equity contracts:
Written options	30,712		13		( 2,025 )		28,228		12		( 2,102 )
Purchased options	15,761		1,392		( 94 )		11,956		1,366		( 23 )
Other	1,220		38		( 28 )		1,730		6		( 41 )
Commodity contracts	10,357		402		( 379 )		10,988		318		( 297 )
Credit contracts:
Credit default swaps	1,529		—		( 1 )		685		—		—
Total return swaps	2,013		15		( 5 )		1,485		25		( 13 )
Risk participation agreements	7,666		—		( 3 )		7,388		—		( 2 )


Total	292,233		3,292		( 4,499 )		264,503		2,705		( 4,624 )
MSRs and mortgage banking:
Interest rate contracts:
Swaps	16,312		—		—		20,696		—		—
Written options	748		10		—		1,932		32		( 6 )
Purchased options	8,084		16		( 80 )		8,910		60		( 46 )
Interest rate lock commitments	922		6		( 2 )		939		2		( 13 )
When issued securities, forward rate agreements, forward commitments, and futures	4,526		15		( 15 )		5,261		25		( 11 )


Total	30,592		47		( 97 )		37,738		119		( 76 )







Total derivatives not designated as hedges	322,825		3,339		( 4,596 )		302,241		2,824		( 4,700 )
Total derivatives	$	441,005	3,339		( 4,596 )		$	416,320	2,824		( 4,700 )
Gross amounts in the Consolidated Balance Sheets:
Amounts subject to master netting arrangements and exchange traded derivatives			( 1,543 )		1,543				( 1,408 )		1,408
Cash collateral (received) posted for amounts subject to master netting arrangements			( 149 )		1,241				( 450 )		1,006

Net amount			$	1,647	$	( 1,812 )			$	966	$	( 2,286 )

Truist Financial Corporation 39

The following table presents the offsetting of derivative instruments including financial instrument collateral related to legally enforceable master netting agreements and amounts held or pledged as collateral. GAAP does not permit netting of non-cash collateral balances in the Consolidated Balance Sheets. Refer to "Note 3. Securities Financing Activities" for information about the Company's securities financing transactions subject to master netting (or similar) arrangements.


June 30, 2025 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments (1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,942	$	( 1,147 )	$	795	$	—	$	795
Derivatives not subject to master netting arrangement or similar arrangement	185		—		185		—		185
Exchange traded derivatives	1,212		( 545 )		667		—		667
Total derivative assets	$	3,339	$	( 1,692 )	$	1,647	$	—	$	1,647
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	( 3,349 )	$	2,239	$	( 1,110 )	$	99	$	( 1,011 )
Derivatives not subject to master netting arrangement or similar arrangement	( 701 )		—		( 701 )		—		( 701 )
Exchange traded derivatives	( 546 )		545		( 1 )		—		( 1 )
Total derivative liabilities	$	( 4,596 )	$	2,784	$	( 1,812 )	$	99	$	( 1,713 )

December 31, 2024 (Dollars in millions)	Gross Amount		Amount Offset		Net Amount in Consolidated Balance Sheets		Held/Pledged Financial Instruments (1)		Net Amount
Derivative assets:
Derivatives subject to master netting arrangement or similar arrangement	$	1,599	$	( 1,293 )	$	306	$	—	$	306
Derivatives not subject to master netting arrangement or similar arrangement	78		—		78		—		78
Exchange traded derivatives	1,147		( 565 )		582		—		582
Total derivative assets	$	2,824	$	( 1,858 )	$	966	$	—	$	966
Derivative liabilities:
Derivatives subject to master netting arrangement or similar arrangement	$	( 3,379 )	$	1,849	$	( 1,530 )	$	94	$	( 1,436 )
Derivatives not subject to master netting arrangement or similar arrangement	( 752 )		—		( 752 )		—		( 752 )
Exchange traded derivatives	( 569 )		565		( 4 )		—		( 4 )
Total derivative liabilities	$	( 4,700 )	$	2,414	$	( 2,286 )	$	94	$	( 2,192 )

(1) The fair value of held/pledged financial instruments is limited to the carrying amount of the associated derivative asset or liability.

The following table presents the carrying amount of hedged items in fair value hedging relationships:


	June 30, 2025						December 31, 2024
	Carrying Amount of the Hedged Assets and Liabilities (1)		Hedge Basis Adjustment				Carrying Amount of the Hedged Assets and Liabilities (1)		Hedge Basis Adjustment
(Dollars in millions)			Items Currently Designated		Discontinued Hedges				Items Currently Designated		Discontinued Hedges
AFS securities (2)	$	41,809	$	91	$	14	$	43,621	$	( 503 )	$	15
Loans and leases	209		—		4		297		—		5

Long-term debt	28,931		122		( 452 )		29,469		( 121 )		( 533 )

(1) Carrying value shown represents amortized cost.

(2) As of June 30, 2025, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $ 29.7 billion, of which $ 17.4 billion was designated as hedged. As of December 31, 2024, closed portfolios of securities hedged under the portfolio layer method have an amortized cost of $ 30.5 billion, of which $ 18.0 billion was designated as hedged. The remaining amount of amortized cost is from securities with terminated hedges where the basis adjustment is being amortized into earnings using the effective interest method over the contractual life of the security and hedges not designated under the portfolio-layer method.

40 Truist Financial Corporation

Impact of Derivatives on the Consolidated Statements of Income and Comprehensive Income

Derivatives Designated as Hedging Instruments under GAAP

No portion of the change in fair value of derivatives designated as hedges has been excluded from effectiveness testing.

The following table summarizes amounts related to cash flow hedges, which consist of interest rate contracts:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Pre-tax gain (loss) recognized in OCI:
Commercial loans	$	267	$	( 129 )	$	736	$	( 432 )




Pre-tax gain (loss) reclassified from AOCI into interest expense or interest income:




Commercial loans	( 92 )		( 79 )		( 185 )		( 134 )

The following table summarizes the impact on net interest income related to fair value hedges:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Investment securities:
Amounts related to interest settlements	$	70	$	115	$	141	$	278
Recognized on derivatives	( 199 )		185		( 591 )		627
Recognized on hedged items	210		( 172 )		611		( 608 )
Net income (expense) recognized (1)	81		128		161		297
Loans and leases:


Recognized on hedged items	—		—		( 1 )		( 1 )






Long-term debt:
Amounts related to interest settlements	( 18 )		( 51 )		( 40 )		( 90 )
Recognized on derivatives	92		( 63 )		244		( 295 )
Recognized on hedged items	( 128 )		41		( 323 )		252
Net income (expense) recognized	( 54 )		( 73 )		( 119 )		( 133 )
Net income (expense) recognized, total	$	27	$	55	$	41	$	163

(1) Includes $ 9 million and $ 18 million of income recognized for the three and six months ended June 30, 2025, respectively, and $ 10 million and $ 20 million for the three and six months ended June 30, 2024, respectively, from securities with terminated hedges that were reclassified to HTM. The income recognized was offset by the amortization of the fair value mark.

Truist Financial Corporation 41

The following table presents information about the Company’s cash flow and fair value hedges:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Cash flow hedges:
Net unrecognized after-tax gain (loss) on active hedges recorded in AOCI	$	( 13 )	$	( 722 )
Net unrecognized after-tax gain (loss) on terminated hedges recorded in AOCI (to be recognized in earnings through 2029)	( 144 )		( 139 )

Maximum time period over which Truist is hedging a portion of the variability in future cash flows for forecasted transactions excluding those transactions relating to the payment of variable interest on existing instruments	4 years		5 years
Fair value hedges:
Unrecognized pre-tax net gain (loss) on terminated hedges (1)	$	( 115 )	$	( 180 )

(1) Includes deferred gains that are recorded in AOCI as a result of the reclassification to HTM of previously hedged securities of $ 355 million at June 30, 2025 and $ 373 million at December 31, 2024.

Of the after-tax net loss on active and terminated cash flow hedges in OCI as of June 30, 2025, losses of $ 173 million after-tax are expected to be reclassified into earnings in the next 12 months.

Derivatives Not Designated as Hedging Instruments under GAAP

The Company also enters into derivatives that are not designated as accounting hedges under GAAP to economically hedge certain risks as well as in a trading capacity with its clients.

The following table presents pre-tax gain (loss) recognized in income for derivative instruments not designated as hedges:


		Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	Income Statement Location	2025		2024		2025		2024
Client-related and other risk management:
Interest rate contracts	Investment banking and trading income and other income	$	10	$	27	$	21	$	66
Foreign exchange contracts	Investment banking and trading income and other income	( 164 )		36		( 213 )		101
Equity contracts	Investment banking and trading income, other income, and personnel expense	( 38 )		7		15		( 10 )
Credit contracts	Investment banking and trading income and other income	( 26 )		14		( 12 )		( 10 )
Commodity contracts	Investment banking and trading income	3		4		6		6
MSRs and mortgage banking:
Interest rate contracts	Mortgage banking income	( 18 )		( 24 )		19		( 122 )




Total		$	( 233 )	$	64	$	( 164 )	$	31

42 Truist Financial Corporation

Credit Derivative Instruments

As part of the Company’s investment banking and capital markets business, the Company enters into contracts that are, in form or substance, written guarantees; specifically, risk participation agreements, TRS, and credit default swaps. The Company accounts for these contracts as derivatives.

Truist has entered into risk participation agreements to share the credit exposure with other financial institutions on client-related interest rate derivative contracts. Under these agreements, the Company has guaranteed payment to a dealer counterparty in the event the counterparty experiences a loss on the derivative due to a failure to pay by the counterparty’s client. The Company manages its payment risk on its risk participations by monitoring the creditworthiness of the underlying clients through the normal credit review process that the Company would have performed had it entered into a derivative directly with the obligors. At June 30, 2025, the remaining terms on these risk participations ranged from less than one year to nine years . The potential future exposure represents the Company’s maximum estimated exposure to written risk participations, as measured by projecting a maximum value of the guaranteed derivative instruments based on scenario simulations and assuming 100% default by all obligors on the maximum value.

The Company has also entered into TRS contracts on loans and bonds. To mitigate its credit risk, the Company typically receives initial margin from the counterparty upon entering into the TRS and variation margin if the fair value of the underlying reference assets deteriorates. For additional information on the Company’s TRS contracts, see “Note 14. Commitments and Contingencies.”

The Company enters into credit default swaps to hedge credit risk associated with certain loans and leases. The Company accounts for these contracts as derivatives, and accordingly, recognizes these contracts at fair value.

The following table presents additional information related to interest rate derivative risk participation agreements and total return swaps:


(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Risk participation agreements:


Maximum potential amount of exposure	$	429	$	381
Total return swaps:

Cash received for variation margin	15		25
Cash and other collateral received for initial margin	506		329

Truist Financial Corporation 43

NOTE 17. Computation of EPS

Basic and diluted EPS calculations are presented in the following table:


	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions, except per share data, shares in thousands)	2025		2024		2025		2024
Net income (loss) available to common shareholders from continuing operations	$	1,180	$	( 3,983 )	$	2,337	$	( 2,956 )
Net income available to common shareholders from discontinued operations	—		4,809		—		4,873
Net income available to common shareholders	$	1,180	$	826	$	2,337	$	1,917
Weighted average number of common shares	1,292,292		1,338,149		1,299,833		1,336,620
Effect of dilutive outstanding equity-based awards	12,713		—		14,946		—
Weighted average number of diluted common shares	1,305,005		1,338,149		1,314,779		1,336,620
Basic EPS from continuing operations	$	0.91	$	( 2.98 )	$	1.80	$	( 2.21 )
Basic EPS from discontinued operations	—		3.60		—		3.64
Basic EPS	$	0.91	$	0.62	$	1.80	$	1.43
Diluted EPS from continuing operations	$	0.90	$	( 2.98 )	$	1.78	$	( 2.21 )
Diluted EPS from discontinued operations	—		3.60		—		3.64
Diluted EPS	$	0.90	$	0.62	$	1.78	$	1.43
Anti-dilutive awards	174		11,975		5		12,082

44 Truist Financial Corporation

NOTE 18. Operating Segments

Truist operates and measures business activity across two segments: CSBB and WB, with functional activities included in OT&C. The Company’s business segment structure is based on the manner in which financial information is evaluated by management as well as the products and services provided or the type of client served. The Chairman and CEO is the Truist CODM. The CODM regularly reviews segment net income and its significant components in comparison to expected results as part of evaluating segment performance and optimizing resource allocation. In this regular review, segment net income typically excludes amortization of intangibles, restructuring charges, and goodwill impairment which are separately presented in the table below.

Consumer and Small Business Banking

CSBB serves retail, premier, and small business clients, providing checking, money market, savings, time and other deposits, payment services, and lending solutions through digital banking, an extensive network of community banking branches, ATMs, virtual service centers, and other channels. Lending solutions include credit cards, personal and unsecured loans originated through the branch network and digital channels; national indirect lending services providing a comprehensive set of technology-enabled consumer lending solutions, including point-of-sale offerings for autos, recreational vehicles, outdoor power sports, outdoor power equipment, and home improvement; and real estate lending providing residential mortgages through retail, direct, and correspondent channels, and home equity loans delivered through the branch network.

Wholesale Banking

WB provides a comprehensive set of products, solutions, and advisory services to commercial, corporate, institutional, and wealth clients. Banking expertise and product capabilities are delivered through a combination of regional coverage across the Truist footprint and national industry coverage for real estate, investment banking, and capital markets clients. WB works with clients to meet their core banking needs, including traditional and specialized credit solutions and commercial payments to manage deposits and liquidity, payables, and receivables. Through investment banking capabilities, clients have full access to strategic advisory services, debt and equity capital markets, leveraged finance, and securitizations, with distribution channels and market making across both fixed income and equity markets. WB also invests in certain affordable housing, New Market Tax Credit, and renewable energy tax credit investments. For additional information on these investments, see “Note 14. Commitments and Contingencies”. The wealth business delivers asset management, trust, brokerage, and investment management, as well as specialized commercial products, while aligning closely with regional and industry banking coverage.

Other, Treasury & Corporate

OT&C includes management of the Company’s investment securities portfolio, long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management and most bank-owned real estate assets, as well as the Company’s functional activities such as finance, enterprise risk, legal, and enterprise technology and management, among others. Additionally, OT&C houses intersegment eliminations, including intersegment net referral fees and residual interest rate risk.

Truist promotes revenue growth by bringing the full breadth and depth of Truist’s products and services to meet clients’ financial needs. The objective is to deepen client relationships and deliver the best financial experience in the marketplace. Revenues of certain products and services are reflected in the results of the segment providing those products and services and are also allocated to CSBB and WB. These allocated revenues between segments are reflected as net referral fees in noninterest income and eliminated in OT&C.

The segment results are presented based on internal management methodologies that were designed to support Truist’s strategic objectives. Unlike financial accounting, there is no comprehensive authoritative body of guidance for management accounting equivalent to GAAP. The performance of the segments is not comparable with Truist’s consolidated results or with similar information presented by other financial institutions. Additionally, because of the interrelationships between the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities.

Because business segment results are presented based on management accounting practices, the transition to the consolidated results prepared under GAAP creates certain differences, which are reflected as residuals in OT&C. Business segment reporting conventions include the items as detailed below.

Segment net interest income reflects matched maturity funds transfer pricing, which ascribes credits or charges based on the economic value or cost created by assets and liabilities of each segment. Residual differences between these credits and charges are captured in OT&C.

Truist Financial Corporation 45

In the first quarter of 2025, deposit net intersegment interest income and expense methodology was enhanced to reflect a change to funds transfer pricing. Prior period results were revised to conform to the current allocation methodology. As a result of this methodology change, CSBB net interest income decreased $ 128 million for three months ended June 30, 2024 and $ 261 million for the six months ended June 30, 2024, with off-setting increases in OT&C net interest income. For the same reason, WB net interest income decreased $ 45 million for three months ended June 30, 2024 and $ 94 million for the six months ended June 30, 2024, with off-setting increases in OT&C net interest income.

Noninterest income includes inter-segment referral fees, as well as federal and state tax credits that are grossed up for the WB segment on a pre-tax equivalent basis, related primarily to certain community development investments. Recoveries for these allocations are reported in OT&C.

Corporate expense allocations, including overhead or functional expenses that are not directly charged to the segments, are allocated to segments based on various drivers (number of FTEs, number of accounts, loan balances, net revenue, etc.). Recoveries for these allocations are reported in OT&C.

Provision for credit losses represents net charge-offs by segment combined with an allocation to the segments for the provision attributable to each segment’s quarterly change in the ALLL. Provision for income taxes is calculated using a blended income tax rate for each segment and includes reversals of the noninterest income tax adjustments described above. The difference between the calculated provision for income taxes at the segment level and the consolidated provision for income taxes is reported in OT&C.

The application and development of management reporting methodologies is an active process and undergoes periodic enhancements. The implementation of these enhancements to the internal management reporting methodology may materially affect the results disclosed for each segment, with no impact on consolidated results. When significant changes to management reporting methodologies take place, the impact of these changes is quantified, and prior period information is revised as practicable.

46 Truist Financial Corporation

The following table presents results by segment:


Three Months Ended June 30, (Dollars in millions)	CSBB				WB				OT&C (1)			Total
	2025		2024		2025		2024			2025		2024		2025		2024
Net interest income (expense)	$	1,488	$	1,291	$	1,880	$	2,182		$	219	$	54	$	3,587	$	3,527
Net intersegment interest income (expense)	871		1,216		( 219 )		( 559 )			( 652 )		( 657 )		—		—
Segment net interest income (expense)	2,359		2,507		1,661		1,623			( 433 )		( 603 )		3,587		3,527
Allocated provision for credit losses	384		308		104		142			—		1		488		451
Noninterest income	519		504		942		986			( 61 )		( 6,702 )		1,400		( 5,212 )
Personnel expense	409		417		559		586			685		658		1,653		1,661
Amortization of intangibles	39		45		35		41			( 1 )		3		73		89
Restructuring charges	1		1		7		8			20		24		28		33

Other direct noninterest expense (2)	281		265		200		186			751		860		1,232		1,311
Total direct noninterest expense	730		728		801		821			1,455		1,545		2,986		3,094
Expense Allocations	970		934		526		447			( 1,496 )		( 1,381 )		—		—
Total noninterest expense	1,700		1,662		1,327		1,268			( 41 )		164		2,986		3,094
Income (loss) before income taxes from continuing operations	794		1,041		1,172		1,199			( 453 )		( 7,470 )		1,513		( 5,230 )
Provision (benefit) for income taxes	193		250		236		239			( 156 )		( 1,813 )		273		( 1,324 )
Segment net income (loss) from continuing operations	$	601	$	791	$	936	$	960		$	( 297 )	$	( 5,657 )	$	1,240	$	( 3,906 )

Identifiable assets (period end) of continuing operations	$	152,221	$	144,217	$	214,793	$	207,484		$	176,819	$	168,152	$	543,833	$	519,853

Six Months Ended June 30, (Dollars in millions)	CSBB				WB				OT&C (1)			Total
	2025		2024		2025		2024			2025		2024		2025		2024
Net interest income (expense)	$	2,915	$	2,558	$	3,772	$	4,413		$	407	$	( 72 )	$	7,094	$	6,899
Net intersegment interest income (expense)	1,729		2,427		( 518 )		( 1,175 )			( 1,211 )		( 1,252 )		—		—
Segment net interest income (expense)	4,644		4,985		3,254		3,238			( 804 )		( 1,324 )		7,094		6,899
Allocated provision for credit losses	712		621		235		329			( 1 )		1		946		951
Noninterest income	1,022		1,002		1,891		1,966			( 121 )		( 6,734 )		2,792		( 3,766 )
Personnel expense	817		822		1,107		1,166			1,316		1,303		3,240		3,291
Amortization of intangibles	78		91		71		83			( 1 )		3		148		177
Restructuring charges	1		2		8		15			57		67		66		84

Other direct noninterest expense (2)	556		509		392		362			1,490		1,624		2,438		2,495
Total direct noninterest expense	1,452		1,424		1,578		1,626			2,862		2,997		5,892		6,047
Expense Allocations	1,911		1,824		1,051		975			( 2,962 )		( 2,799 )		—		—
Total noninterest expense	3,363		3,248		2,629		2,601			( 100 )		198		5,892		6,047
Income (loss) before income taxes from continuing operations	1,591		2,118		2,281		2,274			( 824 )		( 8,257 )		3,048		( 3,865 )
Provision (benefit) for income taxes	387		510		459		448			( 299 )		( 2,050 )		547		( 1,092 )
Segment net income (loss) from continuing operations	$	1,204	$	1,608	$	1,822	$	1,826		$	( 525 )	$	( 6,207 )	$	2,501	$	( 2,773 )

Identifiable assets (period end) of continuing operations	$	152,221	$	144,217	$	214,793	$	207,484		$	176,819	$	168,152	$	543,833	$	519,853

(1) As described above, includes the Company’s investment securities portfolio, most long-term debt, derivative instruments used for balance sheet hedging, short-term liquidity and funding activities, balance sheet risk management, most bank-owned real estate assets, as well as functional activities such as finance, enterprise risk, legal, and enterprise technology and management. Additionally, houses intersegment eliminations, including for residual interest rate risk, intersegment net referral fees, and expense allocations. May also include financial data from business units below the quantitative and qualitative thresholds requiring disclosure.

(2) Other direct noninterest expense within the table above includes expenses for occupancy and equipment, professional fees and outside processing, regulatory costs, and other expenses.

Truist Financial Corporation 47

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MD&A is intended to assist readers in their analysis of the accompanying Consolidated Financial Statements and supplemental financial information. It should be read in conjunction with the Consolidated Financial Statements, the accompanying Notes to the Consolidated Financial Statements in this Form 10-Q, other information contained in this document, as well as with Truist’s Annual Report on Form 10-K for the year ended December 31, 2024.

A description of certain factors that may affect our future results and risk factors is set forth in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Executive Overview

We delivered strong second-quarter results, driven by strategic loan growth and higher net interest income derived from continued strong production from our business. Our performance reflects the value of our client-centric business model and momentum in our strategy, as we see tangible results from investments we have made in talent and technology across our platforms.

Asset quality remained strong, and our capital position continues to support both our growth initiatives and our ability to return capital to shareholders. We returned $1.4 billion of capital to our common shareholders through $670 million of common stock dividends and $750 million of common share repurchases during the second quarter of 2025. As of June 30, 2025, we had $2.8 billion remaining under our $5.0 billion common share repurchase authorization through the end of 2026.

Financial Results

Net income available to common shareholders for the second quarter of 2025 of $1.2 billion was up 43% compared with the second quarter of 2024. On a diluted per common share basis, earnings for the second quarter of 2025 were $0.90, an increase of $0.28, or 45%, compared to the second quarter of 2024. Truist’s results of operations for the second quarter of 2025 produced an annualized return on average assets of 0.93% and an annualized return on average common shareholders’ equity of 8.1% compared to prior year returns of 0.70% and 6.1%, respectively.

Net income from continuing operations was $1.2 billion for the second quarter of 2025, compared to a net loss from continuing operations of $3.9 billion for the second quarter of 2024.

• Results from continuing operations for the second quarter of 2025 included restructuring charges of $28 million ($21 million after-tax, or $0.02 per share) and securities losses of $18 million ($13 million after-tax, or $0.01 per share).

• Results from continuing operations for the second quarter of 2024 included securities losses of $6.7 billion ($5.1 billion after-tax, or $3.80 per share) from the strategic balance sheet repositioning of a portion of the available-for-sale investment securities portfolio, a charitable contribution to the Truist Foundation of $150 million ($115 million after-tax, or $0.09 per share), and restructuring charges of $33 million ($26 million after-tax, or $0.02 per share).

TE net interest income for the second quarter of 2025 was up $55 million, or 1.5%, compared to the second quarter of 2024. Net interest margin was 3.02%, flat compared to the second quarter of 2024.

• The yield on the average total loan portfolio was 6.01%, down 43 basis points due to the impact of variable rate loans repricing. The yield on the average securities portfolio was 3.16%, up 40 basis points, reflecting the balance sheet repositioning in the second quarter of 2024 and reinvesting cash flows into higher yielding securities.

• The average cost of total deposits was 1.85%, down 24 basis points. The average cost of short-term borrowings was 4.47%, down 111 basis points. The average cost of long-term debt was 5.02%, up 15 basis points.

Noninterest income was up $6.6 billion for the second quarter of 2025 compared to the second quarter of 2024 primarily due to securities losses resulting from the balance sheet repositioning in 2024 and higher other income, partially offset by lower investment banking and trading income. Excluding securities losses, noninterest income was down $20 million, or 1.4%, compared to the second quarter of 2024.

Noninterest expense was down $108 million, or 3.5%, for the second quarter of 2025 compared to the second quarter of 2024 due to lower other expense and lower regulatory costs, partially offset by higher professional fees and outside processing expense. The second quarter of 2024 included a charitable contribution of $150 million (other expense) and a FDIC special assessment adjustment of $13 million (regulatory costs). Restructuring charges for both quarters include severance as well as costs associated with facilities optimization initiatives. Adjusted noninterest expense, which excludes the charitable contribution, the FDIC special assessment adjustment, and restructuring charges, increased $60 million, or 2.1%, compared to the earlier quarter.

48 Truist Financial Corporation

The second quarter of 2025 reflects a provision for income taxes while the second quarter of 2024 reflects a benefit for income taxes driven by the discrete impact of the balance sheet repositioning of securities.

Asset quality remained strong during the second quarter of 2025.

• Nonperforming loans and leases held for investment were 0.39% of loans and leases held for investment at June 30, 2025, down nine basis points compared to March 31, 2025.

• Loans 90 days or more past due and still accruing totaled $546 million at June 30, 2025, down three basis points as a percentage of loans and leases compared with March 31, 2025. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.04% at June 30, 2025, down one basis point compared to March 31, 2025.

• The allowance for credit losses was $5.3 billion and included $4.9 billion for the allowance for loan and lease losses and $354 million for the reserve for unfunded commitments. The ALLL ratio was 1.54%, down four basis points from March 31, 2025.

• The provision for credit losses was $488 million compared to $451 million for the second quarter of 2024, reflecting a higher allowance build.

• The net charge-off ratio was 51 basis points, down seven basis points compared to the second quarter of 2024, primarily driven by lower net charge-offs in the CRE portfolio, partially offset by higher net charge-offs in the commercial and industrial portfolio.

Capital ratios remained strong during the second quarter of 2025.

• Truist’s CET1 ratio was 11.0% as of June 30, 2025, down 30 basis points compared to March 31, 2025 due to capital returned to shareholders and an increase in risk-weighted assets, partially offset by current quarter earnings.

• Truist declared common dividends of $0.52 per share during the second quarter of 2025 and repurchased $750 million of common stock. For the second quarter of 2025, the dividend payout ratio was 57%, and the total payout ratio was 121%.

• Truist’s average consolidated LCR was 110% for the three months ended June 30, 2025, compared to the regulatory minimum of 100%.

• Truist completed the 2025 CCAR process and received a preliminary SCB requirement of 2.5% for the period October 1, 2025 to September 30, 2026, down 30 basis points from the SCB requirement for the period October 1, 2024 to September 30, 2025. The FRB will provide Truist with its final SCB requirement by August 31, 2025.

Truist Financial Corporation 49

Analysis of Results of Operations

Net Interest Income and NIM

TE net interest income for the second quarter of 2025 was up $55 million, or 1.5%, compared to the second quarter of 2024. Net interest margin was 3.02%, flat compared to the second quarter of 2024.

• Average earning assets increased $6.8 billion, or 1.4%, primarily due to an increase in average total loans of $6.3 billion, or 2.0%.

• Average deposits increased $12.4 billion, or 3.2%, and average long-term debt decreased $2.5 billion, or 6.8%.

TE net interest income for the six months ended June 30, 2025 was up $185 million, or 2.6%, compared to the six months ended June 30, 2024 primarily due to the balance sheet repositioning in the second quarter of 2024. Net interest margin was 3.02%, up seven basis points compared to the prior period.

• Average earning assets increased $3.3 billion, or 0.7%, compared to the prior period primarily due to an increase in other earning assets of $4.3 billion, or 12%, and an increase in average total loans of $2.2 billion, or 0.7%, partially offset by a decline in average securities of $3.8 billion, or 3.0%. The increase in average other earning assets and decrease in average securities primarily reflects the aforementioned balance sheet repositioning.

• The yield on the average total loan portfolio was 5.99% for 2025, down 42 basis points, compared to the prior period primarily due to the impact of variable rate loans repricing. The yield on the average securities portfolio was 3.16% for 2025, up 56 basis points compared to the prior period, reflecting the balance sheet repositioning and reinvesting cash flows into higher yielding securities.

• Average deposits increased $7.8 billion, or 2.0%, average short-term borrowings increased $2.2 billion, or 8.2%, and average long-term debt decreased $5.4 billion, or 14%.

• The average cost of total deposits was 1.82% for 2025, down 24 basis points compared to the prior period. The average cost of short-term borrowings was 4.48% for 2025, down 112 basis points compared to the prior period. The average cost of long-term debt was 5.04% for 2025, up 24 basis points compared to the prior period.

The major components of net interest income and the related annualized yields as well as the variances between the periods caused by changes in interest rates versus changes in volumes are summarized below.

50 Truist Financial Corporation


Table 1-1: Taxable-Equivalent Net Interest Income and Rate / Volume Analysis
Three Months Ended June 30, (Dollars in millions)	Average Balances (1)				Annualized Yield/Rate (2)				Income/Expense (2)				Incr. (Decr.)		Change due to
	2025		2024		2025		2024		2025		2024				Rate		Volume
Assets
AFS and HTM securities at amortized cost:
U.S. Treasury	$	14,034	$	11,138	5.20	%	3.66	%	$	181	$	101	$	80	$	49	$	31
GSE	463		382		3.73		3.27		5		3		2		—		2
Agency MBS	106,947		108,358		2.89		2.66		772		720		52		61		(9)
States and political subdivisions	370		420		4.20		4.14		4		5		(1)		—		(1)
Non-agency MBS	—		1,480		—		2.56		—		10		(10)		(5)		(5)
Other	15		18		4.53		5.29		—		—		—		—		—

Total securities	121,829		121,796		3.16		2.76		962		839		123		105		18
Interest earning trading assets	5,896		5,515		5.98		6.11		88		84		4		(2)		6
Other earning assets (3)	39,417		39,250		4.51		5.56		448		551		(103)		(105)		2
Loans and leases, net of unearned income:

Commercial and industrial	158,491		157,043		5.72		6.53		2,262		2,550		(288)		(312)		24
CRE	19,687		21,969		6.22		6.93		308		381		(73)		(37)		(36)
Commercial Construction	8,613		7,645		6.85		7.85		144		147		(3)		(21)		18


Residential mortgage	56,789		54,490		4.08		3.86		579		525		54		31		23
Home equity	9,586		9,805		7.47		8.02		178		195		(17)		(13)		(4)
Indirect auto	24,158		22,016		7.32		6.95		441		381		60		21		39
Other consumer	30,387		28,326		8.37		8.25		634		581		53		9		44

Credit card	4,890		4,905		11.35		12.14		139		148		(9)		(9)		—

Total loans and leases HFI	312,601		306,199		6.01		6.44		4,685		4,908		(223)		(331)		108
LHFS	1,240		1,384		6.15		6.56		19		22		(3)		(1)		(2)
Total loans and leases	313,841		307,583		6.01		6.44		4,704		4,930		(226)		(332)		106
Total earning assets	480,983		474,144		5.16		5.42		6,202		6,404		(202)		(334)		132
Nonearning assets	56,086		50,109
Assets of discontinued operations	—		2,641
Total assets	$	537,069	$	526,894
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-checking	$	116,193	$	103,894	2.51		2.74		726		707		19		(62)		81
Money market and savings	135,607		135,264		2.22		2.60		751		873		(122)		(124)		2
Time deposits	41,997		41,250		3.50		4.24		367		436		(69)		(77)		8

Total interest-bearing deposits	293,797		280,408		2.52		2.89		1,844		2,016		(172)		(263)		91
Short-term borrowings	26,241		26,016		4.47		5.58		292		362		(70)		(73)		3
Long-term debt	34,213		36,721		5.02		4.87		431		446		(15)		14		(29)
Total interest-bearing liabilities	354,251		343,145		2.91		3.31		2,567		2,824		(257)		(322)		65
Noninterest-bearing deposits	106,686		107,634
Other liabilities	11,897		13,318
Liabilities of discontinued operations	—		1,120
Shareholders’ equity	64,235		61,677
Total liabilities and shareholders’ equity	$	537,069	$	526,894
Average interest-rate spread					2.25	%	2.11	%
NIM/net interest income - TE (2)					3.02	%	3.02	%	$	3,635	$	3,580	$	55	$	(12)	$	67
Less: TE adjustment									48		53
Net interest income									$	3,587	$	3,527
Memo: Total deposits	$	400,483	$	388,042	1.85	%	2.09	%	$	1,844	$	2,016	$	(172)

(1) Represents daily average balances. Unrealized gains and losses on available-for-sale securities are included in nonearning assets. Active hedge basis adjustments for fair value hedges are included in nonearning assets and other liabilities.

(2) Yields are stated on a TE basis, which represents a non-GAAP measure, utilizing a federal tax rate of 21%. Interest income includes certain fees, deferred costs, and dividends. The change in interest not solely due to changes in rate or volume has been allocated based on the pro-rata absolute dollar amount of each.

(3) Includes cash equivalents, interest-bearing deposits with banks, FHLB stock, and other earning assets.

Truist Financial Corporation 51




Table 1-2: Taxable-Equivalent Net Interest Income and Rate / Volume Analysis

Six Months Ended June 30, (Dollars in millions)	Average Balances (1)				Annualized Yield/Rate (2)					Income/Expense (2)					Incr. (Decr.)	Change due to
	2025		2024			2025		2024			2025		2024						Rate		Volume
Assets
AFS and HTM securities at amortized cost:
U.S. Treasury	$	14,448	$	10,496		5.19	%	2.64	%		$	372	$	138			$	234	$	168	$	66
GSE	462		385			3.74		3.34			9		6				3		1		2
Agency MBS	107,643		112,828			2.88		2.58			1,549		1,455				94		163		(69)
States and political subdivisions	370		420			4.20		4.14			8		9				(1)		—		(1)
Non-agency MBS	—		2,578			—		2.87			—		37				(37)		(18)		(19)
Other	16		19			4.63		5.32			—		—				—		—		—

Total securities	122,939		126,726			3.16		2.60			1,938		1,645				293		314		(21)
Interest earning trading assets	5,763		5,180			5.85		6.29			168		163				5		(12)		17
Other earning assets (3)	39,208		34,909			4.52		5.60			889		987				(98)		(206)		108
Loans and leases, net of unearned income:

Commercial and industrial	156,861		157,714			5.71		6.53			4,446		5,122				(676)		(649)		(27)
CRE	19,759		22,185			6.17		6.94			610		770				(160)		(81)		(79)
Commercial Construction	8,673		7,389			6.84		7.84			289		284				5		(40)		45


Residential mortgage	56,226		54,780			4.06		3.85			1,141		1,053				88		59		29
Home equity	9,578		9,868			7.47		7.97			355		391				(36)		(25)		(11)
Indirect auto	23,705		22,195			7.26		6.82			853		753				100		49		51
Other consumer	29,843		28,306			8.35		8.12			1,236		1,142				94		32		62

Credit card	4,870		4,913			11.47		12.05			277		294				(17)		(14)		(3)

Total loans and leases HFI	309,515		307,350			5.99		6.41			9,207		9,809				(602)		(669)		67
LHFS	1,187		1,155			6.04		6.49			36		37				(1)		(2)		1
Total loans and leases	310,702		308,505			5.99		6.41			9,243		9,846				(603)		(671)		68
Total earning assets	478,612		475,320			5.14		5.33			12,238		12,641				(403)		(575)		172
Nonearning assets	55,753		48,516
Assets of discontinued operations	—		5,112
Total assets	$	534,365	$	528,948
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-checking	$	112,720	$	103,716		2.44		2.70			1,366		1,391				(25)		(140)		115
Money market and savings	136,249		134,979			2.21		2.54			1,494		1,705				(211)		(227)		16
Time deposits	41,104		41,594			3.53		4.27			720		884				(164)		(154)		(10)

Total interest-bearing deposits	290,073		280,289			2.49		2.86			3,580		3,980				(400)		(521)		121
Short-term borrowings	28,275		26,123			4.48		5.60			628		728				(100)		(155)		55
Long-term debt	33,320		38,721			5.04		4.80			840		928				(88)		44		(132)
Total interest-bearing liabilities	351,668		345,133			2.89		3.28			5,048		5,636				(588)		(632)		44
Noninterest-bearing deposits	106,293		108,261
Other liabilities	12,269		13,101
Liabilities of discontinued operations	—		2,109
Shareholders’ equity	64,135		60,344
Total liabilities and shareholders’ equity	$	534,365	$	528,948
Average interest-rate spread						2.25	%	2.05	%
NIM/net interest income - TE (2)						3.02	%	2.95	%		$	7,190	$	7,005			$	185	$	57	$	128
Less: TE adjustment											96		106
Net interest income											$	7,094	$	6,899
Memo: Total deposits	$	396,366	$	388,550		1.82	%	2.06	%		$	3,580	$	3,980			$	(400)

(3) Includes cash equivalents, interest-bearing deposits with banks, FHLB stock, and other earning assets.

52 Truist Financial Corporation

Provision for Credit Losses

The provision for credit losses was $488 million for the second quarter of 2025 compared to $451 million for the second quarter of 2024. The net charge-off ratio for the current quarter of 0.51% was down seven basis points compared to the prior quarter.

• The increase in the current quarter provision expense primarily reflects a higher allowance build.

• The net charge-off ratio for the current quarter was down compared to the second quarter of 2024 primarily driven by lower net charge-offs in the CRE portfolio, partially offset by higher net charge-offs in the commercial and industrial portfolio.

The provision for credit losses was $946 million for the six months ended June 30, 2025 compared to $951 million for the six months ended June 30, 2024. The net charge-off ratio for the current period of 0.55% was down six basis points compared to the prior period.

• The net charge-off ratio was down compared to the prior period driven by lower net charge-offs in the CRE portfolio, partially offset by higher net charge-offs in the commercial and industrial portfolio.

Refer to “Note 5. Loans and ACL” for additional discussion of the ACL.

Noninterest Income

Noninterest income is a significant contributor to Truist’s financial results. Management focuses on diversifying its sources of revenue to reduce Truist’s reliance on traditional spread-based interest income, as certain fee-based activities are a relatively stable revenue source during periods of changing interest rates. The following table provides a breakdown of Truist’s noninterest income:


Table 2: Noninterest Income
	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
(Dollars in millions)	2025		2024		2025 vs. 2024		2025		2024			2025 vs. 2024
Wealth management income	$	348	$	361	(3.6)	%	$	692	$	717		(3.5)	%
Investment banking and trading income	205		286		(28.3)		478		609			(21.5)
Card and payment related fees	232		230		0.9		452		454			(0.4)
Service charges on deposits	227		232		(2.2)		457		457			—
Mortgage banking income	107		112		(4.5)		215		209			2.9
Lending related fees	99		89		11.2		194		185			4.9
Operating lease income	47		50		(6.0)		100		109			(8.3)
Securities gains (losses)	(18)		(6,650)		(99.7)		(19)		(6,650)			(99.7)
Other income	153		78		96.2		223		144			54.9
Total noninterest income	$	1,400	$	(5,212)	NM		$	2,792	$	(3,766)		NM

• Other income increased due to higher income from certain solar and other investments.

• Investment banking and trading income decreased due to lower trading income and capital markets activity.

Noninterest income was up $6.6 billion for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to securities losses resulting from the balance sheet repositioning in 2024 and higher other income, partially offset by lower investment banking and trading income and wealth management income. Excluding securities losses, noninterest income was down $73 million, or 2.5%, compared to the prior period.

• Other income increased due to higher income from certain solar and other investments.

• Investment banking and trading income decreased due to lower trading income, merger and acquisition fees, and capital markets activity.

• Wealth management income decreased due to the impact of the sale of Sterling Capital Management LLC in 2024.

Truist Financial Corporation 53

Noninterest Expense

The following table provides a breakdown of Truist’s noninterest expense:


Table 3: Noninterest Expense
	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
(Dollars in millions)	2025		2024		2025 vs. 2024		2025		2024			2025 vs. 2024
Personnel expense	$	1,653	$	1,661	(0.5)	%	$	3,240	$	3,291		(1.5)	%
Professional fees and outside processing	373		308		21.1		737		586			25.8
Software expense	231		218		6.0		461		442			4.3
Net occupancy expense	179		160		11.9		342		320			6.9
Equipment expense	89		89		—		171		177			(3.4)
Amortization of intangibles	73		89		(18.0)		148		177			(16.4)
Marketing and customer development	82		63		30.2		157		119			31.9
Operating lease depreciation	33		34		(2.9)		68		74			(8.1)
Regulatory costs	55		85		(35.3)		124		237			(47.7)
Restructuring charges	28		33		(15.2)		66		84			(21.4)

Other expense	190		354		(46.3)		378		540			(30.0)
Total noninterest expense	$	2,986	$	3,094	(3.5)		$	5,892	$	6,047		(2.6)

• Professional fees and outside processing expense increased due to higher investments in technology and risk infrastructure.

Noninterest expense was down $155 million, or 2.6%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 primarily due to a $150 million charitable contribution to the Truist Foundation (other expense), the FDIC special assessment and related adjustments ($88 million for the six months ended June 30, 2024), lower personnel expense, and lower amortization of intangibles, partially offset by higher professional fees and outside processing expense. Restructuring charges decreased $18 million; both periods included restructuring charges for severance as well as facilities optimization costs. Adjusted noninterest expense, which excludes the charitable contribution, the FDIC special assessment adjustment, and restructuring charges, increased $101 million, or 1.8%.

• Professional fees and outside processing expense increased due to higher investments in technology and risk infrastructure.

• Personnel expense decreased due to lower employee benefit expense, partially offset by higher salaries.

Segment Results


Table 4: Net Income from Continuing Operations by Reportable Segment
	Three Months Ended June 30,				% Change		Six Months Ended June 30,				% Change
(Dollars in millions)	2025		2024		2025 vs. 2024		2025		2024		2025 vs. 2024
Consumer and Small Business Banking	$	601	$	791	(24.0)	%	$	1,204	$	1,608	(25.1)	%
Wholesale Banking	936		960		(2.5)		1,822		1,826		(0.2)
Other, Treasury & Corporate	(297)		(5,657)		(94.7)		(525)		(6,207)		(91.5)
Truist Financial Corporation	$	1,240	$	(3,906)	NM		$	2,501	$	(2,773)	NM

54 Truist Financial Corporation

Consumer and Small Business Banking

CSBB net income was $601 million for the second quarter of 2025, a decrease of $190 million compared to the second quarter of 2024.

• Segment net interest income decreased $148 million primarily driven by lower funding credit on deposits.

• The allocated provision for credit losses increased $76 million reflecting an allowance build in the current period, partially offset by a decrease in charge-offs in the indirect auto portfolio.

• Noninterest income increased $15 million primarily due to an increase in residential mortgage income driven by MSR valuations.

• Noninterest expense increased $38 million compared to the earlier quarter driven by higher enterprise operations and functional support charges, partially offset by lower loan processing expense.

CSBB average loans and leases held for investment increased $6.0 billion, or 4.8%, for the second quarter of 2025 compared to the second quarter of 2024, primarily due to higher loan balances within indirect lending driven by the prime auto and Service Finance portfolios and within real estate lending driven by mortgage, partially offset by lower balances in the small business portfolio.

CSBB average total deposits increased $1.0 billion, or 0.5%, for the second quarter of 2025 compared to the second quarter of 2024, primarily driven by increases in money market and savings and noninterest-bearing deposits, partially offset by decreases in interest checking and time deposits.

Wholesale Banking

WB net income was $936 million for the second quarter of 2025, a decrease of $24 million compared to the second quarter of 2024.

• Segment net interest income increased $38 million primarily due to higher deposit balances, partially offset by lower loan yields.

• The allocated provision for credit losses decreased $38 million which reflects a decrease in both net charge-offs and net reserve build compared to the prior quarter.

• Noninterest income decreased $44 million compared to the earlier quarter driven by lower trading income, capital markets activity, and commercial mortgage income, as well as decreases in wealth management income attributable to the sale of Sterling Capital Management LLC in 2024, partially offset by higher income from certain solar and other investments.

• Noninterest expense increased $59 million compared to the earlier quarter primarily due to higher enterprise operations and functional support charges, partially offset by lower personnel expense from reduced incentives and lower regulatory costs.

WB average loans held for investment increased $391 million, or 0.2%, for the second quarter of 2025 compared to the second quarter of 2024, primarily due to increases in average commercial and industrial and commercial construction loan balances, partially offset by decreases in commercial real estate loan balances.

WB average total deposits increased $10.0 billion, or 7.1%, for the second quarter of 2025 compared to the second quarter of 2024, primarily due to specific client increases in interest checking balances, which were short-term in nature and withdrawn in July 2025, partially offset by declines in average noninterest-bearing deposits and money market and savings.

Other, Treasury & Corporate

OT&C generated a net loss of $297 million in the second quarter of 2025, compared to a net loss of $5.7 billion in the second quarter of 2024.

• Segment net interest income increased $170 million primarily due to lower funding credit on deposits to other segments and increased yield in the securities portfolio due to the balance sheet repositioning in the second quarter of 2024 and reinvesting cash flows into higher yielding securities, partially offset by lower funding charges on commercial loans to other segments.

• Noninterest income increased $6.6 billion primarily due to securities losses resulting from the balance sheet repositioning in 2024.

• Noninterest expense decreased $205 million compared to the earlier quarter primarily due to lower other expense due to a charitable contribution to the Truist Foundation in 2024 and increased credit from other segments for technology project support, partially offset by increases in professional fees and outside processing.

Truist Financial Corporation 55

Consumer and Small Business Banking

CSBB net income was $1.2 billion for the six months ended June 30, 2025, a decrease of $404 million compared to the prior year.

• Segment net interest income decreased $341 million primarily driven by lower funding credit on deposits.

• The allocated provision for credit losses increased $91 million primarily reflecting a net reserve build in the current period compared to a release in the same period last year, partially offset by lower charge-offs in the other consumer and indirect auto portfolios.

• Noninterest income increased $20 million primarily due to increased residential mortgage income.

• Noninterest expense increased $115 million due to higher enterprise operations and functional support charges, partially offset by lower regulatory costs and loan processing expense.

CSBB average loans and leases held for investment increased $4.1 billion, or 3.3%, for the six months ended June 30, 2025 compared to the prior year driven primarily by increases in indirect auto loans, Service Finance, and mortgage loan balances, partially offset by decreases in the small business and unsecured and personal lending portfolios.

CSBB average total deposits decreased $278 million, or 0.1%, for the six months ended June 30, 2025 compared to the prior year primarily due to decreases in average interest-bearing checking and time deposits, partially offset by increases in money market and savings and noninterest-bearing deposits.

Wholesale Banking

WB net income was $1.8 billion for the six months ended June 30, 2025, flat compared to the prior year.

• Segment net interest income increased $16 million primarily due to lower cost of deposits and higher funding credit driven by higher deposit balances, partially offset by lower loan balances and yields.

• The allocated provision for credit losses decreased $94 million, which primarily reflects a decrease in net charge-offs as well as a decrease in the allowance build compared to the earlier period.

• Noninterest income decreased $75 million primarily due to decreases in income from investment banking and trading as well as lower wealth management income driven by the impact of the sale of Sterling Capital Management LLC in 2024, partially offset by increased income from certain solar and other investments.

• Noninterest expense increased $28 million primarily due to increases in enterprise operations and functional support charges, partially offset by lower regulatory costs, lower personnel expense from reduced incentives, and lower enterprise payments costs.

WB average loans and leases held for investment decreased $2.0 billion, or 1.1%, for the six months ended June 30, 2025 compared to the prior year driven by decreases in average commercial real estate balances and commercial and industrial loan balances, partially offset by increases in the commercial construction portfolio.

WB average total deposits increased $6.4 billion, or 4.6%, for the six months ended June 30, 2025 compared to the prior year primarily due to specific client increases in average interest-bearing checking balances, which were short-term in nature and withdrawn in July 2025, partially offset by decreases in noninterest-bearing deposits and money market and savings balances.

Other, Treasury, and Corporate

OT&C generated a net loss of $525 million for the six months ended June 30, 2025, compared to a net loss of $6.2 billion in the prior year.

• Segment net interest income increased $520 million due to lower funding credit on deposits to other segments, the balance sheet repositioning in the prior period, and reinvesting cash flows into higher yielding securities, partially offset by the lower funding charges primarily on loans to other segments.

• Noninterest income increased $6.6 billion primarily due to securities losses resulting from the balance sheet repositioning in 2024.

• Noninterest expense decreased $298 million primarily driven by lower other expense due to a charitable contribution to the Truist Foundation in 2024 and increased credit from other segments for enterprise technology support expense, partially offset by increased professional fees and outside processing expense.

56 Truist Financial Corporation

Analysis of Financial Condition

Investment Activities

The securities portfolio totaled $115.4 billion at June 30, 2025, compared to $118.1 billion at December 31, 2024. U.S. Treasury, GSE, and Agency MBS represented 99.7% of the total securities portfolio as of June 30, 2025 and December 31, 2024. The overwhelming majority of the portfolio is in agency MBS.

• The decrease in 2025 includes paydowns and maturities of $9.9 billion and sales of $1.1 billion, partially offset by purchases of $6.9 billion.

• As of June 30, 2025 and December 31, 2024, 41% of the investment securities portfolio was classified as held-to-maturity based on amortized cost, excluding portfolio level basis adjustments associated with certain AFS securities.

• As of June 30, 2025, approximately 3.3% of the securities portfolio was variable rate, excluding the impact of swaps, compared to 3.0% as of December 31, 2024.

• The effective duration of the AFS securities portfolio was 5.0 years at June 30, 2025 and December 31, 2024, excluding the impact of swaps, or 3.3 years at June 30, 2025 and December 31, 2024, including the impact of swaps. The effective duration of the HTM securities portfolio was 7.1 years at June 30, 2025 and 7.0 years at December 31, 2024.

Lending Activities

The following table presents the composition of average loans and leases:


Table 5: Average Loans and Leases
	Three Months Ended
(Dollars in millions)	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024
Commercial:
Commercial and industrial	$	158,491	$	155,214	$	153,209	$	154,102	$	157,043
CRE	19,687		19,832		20,504		21,481		21,969
Commercial construction	8,613		8,734		8,261		7,870		7,645

Consumer:
Residential mortgage	56,789		55,658		54,390		53,999		54,490
Home equity	9,586		9,569		9,675		9,703		9,805
Indirect auto	24,158		23,248		22,790		22,121		22,016
Other consumer	30,387		29,291		29,355		29,015		28,326

Credit card	4,890		4,849		4,926		4,874		4,905

Total average loans and leases HFI	$	312,601	$	306,395	$	303,110	$	303,165	$	306,199

Average loans and leases HFI were $312.6 billion for the second quarter of 2025, an increase of $6.2 billion, or 2.0%, compared to the first quarter of 2025.

• Average commercial loans increased 1.6% due to an increase in the commercial and industrial portfolio.

• Average consumer loans increased 2.7% due to growth in the residential mortgage, other consumer, and indirect auto portfolios.

End of period loans and leases HFI were $318.8 billion at June 30, 2025, up $10.2 billion, or 3.3%, compared to March 31, 2025 primarily due to increases in the commercial and industrial, residential mortgage, and other consumer portfolios.

At June 30, 2025 and December 31, 2024, 54% and 53% of loans and leases HFI were variable rate, respectively.

Truist Financial Corporation 57

Asset Quality

The following tables summarize asset quality information:


Table 6: Asset Quality
(Dollars in millions)	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024
NPAs:
NPLs:
Commercial and industrial	$	520	$	586	$	521	$	575	$	459
CRE	128		294		298		302		360
Commercial construction	1		2		3		1		—

Residential mortgage	191		179		166		156		161
Home equity	107		114		116		118		123
Indirect auto	240		248		259		252		244
Other consumer	64		65		66		63		64

Total NPLs HFI	1,251		1,488		1,429		1,467		1,411
Loans held for sale	12		77		—		5		9
Total nonperforming loans and leases	1,263		1,565		1,429		1,472		1,420
Foreclosed real estate	4		4		3		3		5
Other foreclosed property	49		49		45		53		51
Total nonperforming assets	$	1,316	$	1,618	$	1,477	$	1,528	$	1,476

















Loans 90 days or more past due and still accruing:
Commercial and industrial	$	2	$	5	$	19	$	5	$	8
CRE	—		—		1		—		—
Commercial construction	—		—		—		—		1

Residential mortgage – government guaranteed	424		468		430		394		375
Residential mortgage – nonguaranteed	41		62		51		39		27
Home equity	6		6		9		7		7
Indirect auto	—		—		—		—		1
Other consumer	24		23		23		22		19


Credit card	49		52		54		51		51

Total loans 90 days or more past due and still accruing	$	546	$	616	$	587	$	518	$	489
Loans 30-89 days past due and still accruing:
Commercial and industrial	$	122	$	118	$	168	$	116	$	109
CRE	34		12		60		10		8
Commercial construction	15		—		3		4		—

Residential mortgage – government guaranteed	330		284		318		305		340
Residential mortgage – nonguaranteed	365		347		401		366		392
Home equity	54		57		60		63		58
Indirect auto	582		484		622		596		592
Other consumer	239		246		236		233		214


Credit card	70		71		81		76		78

Total loans 30-89 days past due and still accruing	$	1,811	$	1,619	$	1,949	$	1,769	$	1,791

Nonperforming assets totaled $1.3 billion at June 30, 2025, down $302 million compared to March 31, 2025, due to decreases in the CRE, commercial and industrial, and LHFS portfolios. Nonperforming loans and leases were 0.39% of loans and leases held for investment at June 30, 2025, down nine basis points compared to March 31, 2025.

Loans 90 days or more past due and still accruing totaled $546 million at June 30, 2025, down three basis points as a percentage of loans and leases compared with the prior quarter. Excluding government guaranteed loans, the ratio of loans 90 days or more past due and still accruing as a percentage of loans and leases was 0.04% at June 30, 2025, down one basis point compared to March 31, 2025.

Loans 30-89 days past due and still accruing totaled $1.8 billion at June 30, 2025, up $192 million, or five basis points, as a percentage of loans and leases, compared to the prior quarter primarily due to an increase in the indirect auto and residential mortgage portfolios.

58 Truist Financial Corporation

Problem loans include NPLs and loans that are 90 days or more past due and still accruing as disclosed in Table 6. In addition, for the commercial portfolio segment, loans that are rated special mention or substandard performing are closely monitored by management as potential problem loans. Refer to “Note 5. Loans and ACL” for the amortized cost basis of loans by origination year and credit quality indicator as well as additional disclosures related to NPLs.


Table 7: Asset Quality Ratios
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024
Loans 30-89 days past due and still accruing as a percentage of loans and leases	0.57	%	0.52	%	0.64	%	0.58	%	0.59	%
Loans 90 days or more past due and still accruing as a percentage of loans and leases	0.17		0.20		0.19		0.17		0.16
NPLs as a percentage of loans and leases	0.39		0.48		0.47		0.48		0.46
NPLs as a percentage of total loans and leases (1)	0.39		0.51		0.46		0.48		0.46
NPAs as a percentage of:
Total assets (1)	0.24		0.30		0.28		0.29		0.28
Loans and leases plus foreclosed property	0.41		0.50		0.48		0.50		0.48
Net charge-offs as a percentage of average loans and leases	0.51		0.60		0.59		0.55		0.58
ALLL as a percentage of loans and leases	1.54		1.58		1.59		1.60		1.57
Ratio of ALLL to:
Net charge-offs	3.1x		2.6x		2.7x		2.9x		2.7x
Nonperforming loans and leases	3.9x		3.3x		3.4x		3.3x		3.4x
Loans 90 days or more past due and still accruing as a percentage of loans and leases, excluding government guaranteed (2)	0.04	%	0.05	%	0.05	%	0.04	%	0.04	%

(1) Includes LHFS.

(2) This asset quality ratio has been adjusted to remove the impact of government guaranteed loans. Management believes the inclusion of such assets in this asset quality ratio results in distortion of this ratio because collection of principal and interest is reasonably assured.


Table 8: Asset Quality Ratios
											As of/For the Year-to-Date
	Three Months Ended										Period Ended June 30
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		2025		2024
Net charge-offs as a percentage of average loans and leases:
Commercial:
Commercial and industrial	0.22	%	0.20	%	0.27	%	0.18	%	0.18	%	0.21	%	0.17	%
CRE	0.71		1.29		0.66		1.12		1.67		1.00		1.70
Commercial construction	(0.02)		(0.02)		(0.02)		(0.01)		(0.05)		(0.02)		(0.04)

Consumer:
Residential mortgage	—		—		(0.01)		(0.01)		(0.01)		—		—
Home equity	(0.04)		(0.07)		(0.07)		(0.11)		(0.03)		(0.05)		(0.06)
Indirect auto	1.63		2.26		2.33		1.89		1.94		1.94		2.10
Other consumer	1.54		1.71		1.63		1.73		1.60		1.62		1.78

Credit card	4.84		5.21		5.10		5.04		5.33		5.02		5.44
Total	0.51		0.60		0.59		0.55		0.58		0.55		0.61

Ratio of ALLL to net charge-offs	3.1x		2.6x		2.7x		2.9x		2.7x		2.9x		2.6x

Ratios are annualized, as applicable.

Truist Financial Corporation 59

The following table presents activity related to NPAs:


Table 9: Rollforward of NPAs
(Dollars in millions)	2025		2024
Balance, January 1	$	1,477	$	1,488
New NPAs	1,594		1,725
Advances and principal increases	240		331
Disposals of foreclosed assets (1)	(303)		(308)
Disposals of NPLs (2)	(243)		(118)
Charge-offs and losses	(619)		(673)
Payments	(692)		(760)
Transfers to performing status	(138)		(187)
Other, net	—		(22)
Ending balance, June 30	$	1,316	$	1,476

(1) Includes charge-offs and losses recorded upon sale of $130 million and $129 million for the six months ended June 30, 2025 and 2024, respectively.

(2) Includes gains, net of charge-offs and losses recorded upon sale of $6 million and $0 million for the six months ended June 30, 2025 and 2024, respectively.

Commercial Credit Concentrations

Truist has established the following general practices to manage commercial credit risk:

• limiting the amount of credit that Truist may extend to a borrower;

• establishing a process for credit approval accountability;

• initial underwriting and analysis of borrower, transaction, market, and collateral risks;

• evaluating the diversity of the loan portfolio in terms of type, industry, and geographical concentration;

• ongoing servicing and monitoring of individual loans and lending relationships;

• continuous monitoring of the portfolio, market dynamics, and the economy; and

• periodically reevaluating the Company’s strategy and overall exposure as economic, market, and other relevant conditions change.

Truist monitors various segments of its credit portfolios to assess potential concentration risks. Management is involved in the credit approval and review process, and risk acceptance criteria are adjusted as needed to reflect the Company’s risk appetite. Consistent with established risk management objectives, the Company utilizes various risk mitigation techniques, including collecting collateral and security interests, obtaining guarantees, and, to a limited extent, through the purchase of credit loss protection via third-party insurance or use of credit derivatives such as credit default swaps.

In the commercial portfolio, risk concentrations are evaluated regularly on both an aggregate portfolio level and on an individual client basis. The Company manages its commercial exposure through portfolio targets, limits, and transactional risk acceptance criteria as well as other techniques, including loan syndications/participations, loan sales, collateral, structure, covenants, and other risk reduction techniques.

The following tables provide industry distribution by major types of commercial credit exposure and the geographical distribution of commercial exposures. Industry classification for commercial and industrial loans is based on the North American Industry Classification System. CRE loans are classified based on type of property. For the geographic disclosures, amounts are generally assigned to a state based on the physical billing address of the client or physical property address.

60 Truist Financial Corporation


Table 10: Commercial and Industrial Portfolio Industry and Geography
	June 30, 2025				December 31, 2024

(Dollars in millions)	LHFI		% of Total			NPL		LHFI		% of Total		NPL
Industry:
Finance and insurance	$	26,290	16.2	%		$	7	$	24,271	15.7	%	$	28
Manufacturing	13,672		8.4			84		12,298		7.9		62
Retail trade	12,448		7.7			22		12,488		8.1		66
Health care and social assistance	12,016		7.4			7		12,154		7.8		129
Real estate and rental and leasing	11,387		7.0			4		11,354		7.3		3
Public administration	8,722		5.4			—		8,860		5.7		—
Wholesale trade	8,033		5.0			48		7,428		4.8		45
Information	7,292		4.5			158		5,235		3.4		66
Utilities	5,761		3.6			—		4,096		2.6		—
Educational services	5,143		3.2			—		4,478		2.9		—
Transportation and warehousing	4,486		2.8			34		4,634		3.0		34
Professional, scientific, and technical services	4,406		2.7			5		4,125		2.7		8
Arts, entertainment, and recreation	3,897		2.4			8		3,599		2.3		6
Accommodation and food services	3,315		2.0			8		2,935		1.9		9
Construction	3,257		2.0			7		2,607		1.7		10
Administrative and support and waste management and remediation services	3,105		1.9			28		3,022		2.0		—
Other (1)	11,295		6.9			23		12,211		7.9		23
Subtotal	144,525		89.1			443		135,795		87.7		489
Business owner occupied	17,748		10.9			77		19,053		12.3		32
Total commercial and industrial	$	162,273	100.0	%		$	520	$	154,848	100.0	%	$	521

Geography:
Florida	$	18,619	11.5	%		$	33	$	18,258	11.8	%	$	172
Texas	16,345		10.1			53		14,728		9.5		47
North Carolina	12,156		7.5			14		12,167		7.9		16
Georgia	11,715		7.2			12		11,240		7.3		10
New York	11,555		7.1			10		11,379		7.3		50
California	9,269		5.7			21		8,115		5.2		8
Virginia	9,225		5.7			4		9,343		6.0		7
Pennsylvania	6,999		4.3			139		6,466		4.2		9
Maryland	6,862		4.2			4		6,781		4.4		3
Tennessee	5,914		3.6			46		5,729		3.7		51
New Jersey	4,207		2.6			12		3,947		2.5		5
South Carolina	4,191		2.6			22		4,151		2.7		23
Illinois	4,174		2.6			18		3,639		2.4		20
Ohio	3,776		2.3			—		3,482		2.2		1
Other (2)	37,266		23.0			132		35,423		22.9		99
Total commercial and industrial	$	162,273	100.0	%		$	520	$	154,848	100.0	%	$	521

(1) Represents other remaining industries that are deemed to be individually insignificant.

(2) Includes non-U.S. loans of $4.4 billion and $4.1 billion at June 30, 2025 and December 31, 2024, respectively. The remainder represents other remaining states that are deemed to be individually insignificant.

Truist has noted that the CRE and commercial construction portfolios have the potential for heightened risk in the current environment. Truist seeks to maintain a high-quality portfolio through disciplined risk management and prudent client selection.

Truist’s CRE and commercial construction portfolios totaled $28.5 billion as of June 30, 2025, which includes 37% related to multifamily residential, 22% related to industrial, 13% related to office, 13% related to retail, and the remainder composed of hotel and other commercial real estate.

Our combined CRE and commercial construction office portfolio is primarily composed of multi-tenant, non-gateway properties located within Truist Bank’s footprint. As of June 30, 2025, approximately 94% of these properties are multi-tenant or medical. Additionally, as of June 30, 2025, 14% and 28% of these exposures are scheduled to mature in 2025 and 2026, respectively, with the remainder scheduled to mature in 2027 and beyond.

Truist Financial Corporation 61


Table 11: CRE Portfolio Property Type and Geography
	June 30, 2025				December 31, 2024

(Dollars in millions)	LHFI		% of Total			NPL		LHFI		% of Total		NPL
Industry:
Multifamily	$	6,042	29.8	%		$	3	$	5,508	27.0	%	$	27
Industrial	4,681		23.1			—		4,303		21.1		3
Retail	3,570		17.6			28		3,530		17.3		33
Office	2,763		13.6			89		3,459		17.0		228
Hotel	1,718		8.5			—		1,891		9.3		—
Other (1)	1,496		7.4			8		1,672		8.3		7
Total CRE	$	20,270	100.0	%		$	128	$	20,363	100.0	%	$	298

Geography:
Florida	$	2,532	12.5	%		$	8	$	2,594	12.7	%	$	26
Georgia	2,355		11.6			17		2,010		9.9		80
North Carolina	2,235		11.0			3		2,212		10.9		10
Texas	2,033		10.0			5		1,599		7.9		6
New York	1,618		8.0			2		1,491		7.3		2
California	1,582		7.8			—		1,683		8.3		—
Pennsylvania	1,326		6.5			1		1,218		6.0		1
Virginia	1,041		5.1			—		1,108		5.4		3
Tennessee	713		3.5			—		715		3.5		1
Massachusetts	679		3.3			25		860		4.2		27
Maryland	656		3.2			—		713		3.5		8
Other (2)	3,500		17.5			67		4,160		20.4		134
Total CRE	$	20,270	100.0	%		$	128	$	20,363	100.0	%	$	298

(1) Represents other remaining property types that are deemed to be individually insignificant.

(2) Includes non-U.S. loans of $54 million at December 31, 2024. The remainder represents other remaining states that are deemed to be individually insignificant.


Table 12: Commercial Construction Portfolio Property Type and Geography
	June 30, 2025				December 31, 2024

(Dollars in millions)	LHFI		% of Total			NPL		LHFI		% of Total		NPL
Industry:
Multifamily	$	4,602	55.6	%		$	—	$	4,918	57.7	%	$	—
Industrial	1,763		21.3			—		1,680		19.7		—
Single Family - CP	873		10.5			—		664		7.8		2
Office	412		5.0			—		627		7.4		—
Hotel	196		2.4			—		130		1.5		—
Other (1)	431		5.2			1		501		5.9		1
Total commercial construction	$	8,277	100.0	%		$	1	$	8,520	100.0	%	$	3

Geography:
Texas	$	1,339	16.2			$	—	$	1,345	15.8		$	—
Georgia	1,165		14.1			—		1,294		15.2		—
Florida	1,118		13.5			—		1,138		13.4		—
North Carolina	1,014		12.3			—		992		11.6		1
California	547		6.6			—		492		5.8		—
Other (2)	3,094		37.3			1		3,259		38.2		2
Total commercial construction	$	8,277	100.0	%		$	1	$	8,520	100.0	%	$	3

(1) Represents other remaining property types that are deemed to be individually insignificant.

(2) Represents other remaining states that are deemed to be individually insignificant.

See additional information on the commercial portfolios in “Note 5. Loans and ACL,” including loans by origination year and credit quality indicator.

62 Truist Financial Corporation

ACL

Activity related to the ACL is presented in the following tables:


Table 13: Activity in ACL
	Three Months Ended										Six Months Ended June 30,
(Dollars in millions)	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		2025		2024
Balance, beginning of period	$	5,166	$	5,161	$	5,140	$	5,110	$	5,100	$	5,161	$	5,093


Provision for credit losses	488		458		471		448		451		946		951

Charge-offs:
Commercial and industrial	(120)		(102)		(119)		(96)		(83)		(222)		(180)
CRE	(38)		(70)		(51)		(65)		(97)		(108)		(200)


Residential mortgage	(1)		(1)		(1)		—		(1)		(2)		(2)
Home equity	(4)		(2)		(2)		(1)		(3)		(6)		(6)
Indirect auto	(127)		(154)		(158)		(143)		(136)		(281)		(290)
Other consumer	(146)		(154)		(148)		(152)		(141)		(300)		(306)

Credit card	(70)		(74)		(74)		(71)		(74)		(144)		(151)

Total charge-offs	(506)		(557)		(553)		(528)		(535)		(1,063)		(1,135)
Recoveries:
Commercial and industrial	31		24		15		26		14		55		46
CRE	3		7		17		5		5		10		12
Commercial construction	1		—		—		1		1		1		1

Residential mortgage	—		2		2		1		2		2		3
Home equity	4		4		3		4		4		8		9
Indirect auto	28		25		24		38		30		53		58
Other consumer	31		30		28		26		28		61		56

Credit card	12		11		11		9		9		23		18
Total recoveries	110		103		100		110		93		213		203
Net charge-offs	(396)		(454)		(453)		(418)		(442)		(850)		(932)
Other	(5)		1		3		—		1		(4)		(2)
Balance, end of period	$	5,253	$	5,166	$	5,161	$	5,140	$	5,110	$	5,253	$	5,110


ACL:
ALLL	$	4,899	$	4,870	$	4,857	$	4,842	$	4,808
RUFC	354		296		304		298		302
Total ACL	$	5,253	$	5,166	$	5,161	$	5,140	$	5,110

The allowance for credit losses was $5.3 billion at June 30, 2025 and included $4.9 billion for the allowance for loan and lease losses and $354 million for the reserve for unfunded commitments. The ALLL ratio was 1.54%, down four basis points compared with March 31, 2025. The ALLL covered nonperforming loans and leases held for investment 3.9x, compared to 3.3x at March 31, 2025. At June 30, 2025, the ALLL was 3.1x annualized net charge-offs, compared to 2.6x at March 31, 2025.

The following table presents an allocation of the ALLL. The entire amount of the allowance is available to absorb losses occurring in any category of loans and leases.


Table 14: Allocation of ALLL by Category
	June 30, 2025						December 31, 2024
(Dollars in millions)	Amount		% ALLL in Each Category		% Loans in Each Category		Amount		% ALLL in Each Category		% Loans in Each Category
Commercial and industrial	$	1,309	26.6	%	50.9	%	$	1,284	26.4	%	50.7	%
CRE	563		11.5		6.4		643		13.2		6.6
Commercial construction	259		5.3		2.6		257		5.3		2.8

Residential mortgage	220		4.5		18.1		204		4.2		18.1
Home equity	92		1.9		3.0		89		1.8		3.1
Indirect auto	990		20.2		7.7		955		19.7		7.5
Other consumer	1,051		21.5		9.8		994		20.5		9.6

Credit card	415		8.5		1.5		431		8.9		1.6
Total ALLL	4,899		100.0	%	100.0	%	4,857		100.0	%	100.0	%
RUFC	354						304
Total ACL	$	5,253					$	5,161

Truist Financial Corporation 63

Truist monitors the performance of its home equity loans and lines secured by second liens similarly to other consumer loans and utilizes assumptions specific to these loans in determining the necessary ALLL. Truist also receives notification when the first lien holder, whether Truist or another financial institution, has initiated foreclosure proceedings against the borrower. When notified that the first lien is in the process of foreclosure, Truist obtains valuations to determine if any additional charge-offs or reserves are warranted. These valuations are updated at least annually thereafter.

Truist has limited ability to monitor the delinquency status of the first lien, unless the first lien is held or serviced by Truist. Truist estimates credit losses on second lien loans where the first lien is delinquent based on historical experience; the increased risk of loss on these credits is reflected in the ALLL. As of June 30, 2025, Truist held or serviced the first lien on 33% of its second lien positions.

Other Assets

The components of other assets are presented in the following table:


Table 15: Other Assets as of Period End
(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Tax credit and other private equity investments	$	9,627	$	9,303
Bank-owned life insurance	7,846		7,801
Prepaid pension assets	7,383		7,238
Accounts receivable	2,094		1,904
Accrued income	2,017		2,069
Derivative assets	1,647		966
DTAs, net	1,627		1,945
Leased and related assets	1,451		1,352
FHLB stock	1,103		965
Prepaid expenses	1,098		1,061
ROU assets	1,042		1,015

Other	1,032		1,513
Total other assets	$	37,967	$	37,132

64 Truist Financial Corporation

Funding Activities

Deposits

The following table presents average deposits:


Table 16: Average Deposits
	Three Months Ended
(Dollars in millions)	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024
Noninterest-bearing deposits	$	106,686	$	105,895	$	107,968	$	106,080	$	107,634
Interest checking	116,193		109,208		107,075		103,899		103,894
Money market and savings	135,607		136,897		138,242		136,639		135,264
Time deposits	41,997		40,204		36,757		37,726		41,250

Total average deposits	$	400,483	$	392,204	$	390,042	$	384,344	$	388,042

Average deposits for the second quarter of 2025 were $400.5 billion, an increase of $8.3 billion, or 2.1%, compared to the first quarter of 2025.

Average noninterest-bearing deposits increased 0.7% compared to the prior quarter and represented 26.6% of total deposits for the second quarter of 2025 compared to 27.0% for the first quarter of 2025. Average interest checking deposits increased 6.4% primarily due to short-term client deposits. Average money market and savings accounts decreased 0.9%. Average time deposits increased 4.5%.

Borrowings

At June 30, 2025, short-term borrowings totaled $16.6 billion, a decrease of $12.6 billion compared to December 31, 2024. Average short-term borrowings were $28.3 billion and $26.1 billion for the six months ended June 30, 2025 and 2024, respectively.

Long-term debt provides funding and, to a lesser extent, regulatory capital, and primarily consists of senior and subordinated notes issued by the Parent Company and Truist Bank. Long-term debt totaled $44.4 billion at June 30, 2025, an increase of $9.5 billion compared to December 31, 2024. During the six months ended June 30, 2025, the Company had:

• Net issuances of $9.7 billion floating rate FHLB advances.

• Maturities and redemptions of $3.1 billion of senior notes.

• Issuances of $2.5 billion fixed-to-floating rate senior notes with interest rates between 4.67% and 5.07% due between May 20, 2027 and May 20, 2031.

In July 2025, Truist redeemed all $1.5 billion principal amount outstanding of its fixed-to-floating rate senior holding company notes due July 28, 2026.

In July 2025, Truist issued $1.5 billion principal amount of fixed-to-floating rate senior bank notes with an interest rate of 4.42% due July 24, 2028 and $500 million floating rate senior bank notes due July 24, 2028.

Truist Financial Corporation 65

Shareholders’ Equity

Truist’s book value per common share and TBVPS are presented in the following table:


Table 17: Book Value per Common Share
(Dollars in millions, except per share data, shares in thousands)	Jun 30, 2025		Dec 31, 2024
Common equity per common share	$	45.70	$	43.90
Non-GAAP capital measure: (1)
Tangible common equity per common share	$	31.63	$	30.01
Calculation of tangible common equity: (1)
Total shareholders’ equity	$	64,840	$	63,679
Less:
Preferred stock	5,907		5,907

Goodwill and intangible assets, net of deferred taxes	18,143		18,274
Tangible common equity	$	40,790	$	39,498

Common shares outstanding at end of period	1,289,435		1,315,936

(1) Tangible common equity is a non-GAAP measure that excludes the impact of intangible assets, net of deferred taxes. This measure is useful for evaluating the performance of a business consistently, whether acquired or developed internally. Truist’s management uses this measure to assess balance sheet risk and shareholder value.

Total shareholders’ equity was $64.8 billion at June 30, 2025, an increase of $1.2 billion from December 31, 2024. This increase includes $2.5 billion in net income and $1.3 billion in OCI, partially offset by $1.5 billion in common and preferred dividends and $1.3 billion in common share repurchases, including excise taxes. For the second quarter of 2025, the dividend payout ratio was 57% and the total payout ratio was 121%. Truist’s book value per common share at June 30, 2025 was $45.70, compared to $43.90 at December 31, 2024. Truist’s TBVPS of $31.63 at June 30, 2025, increased 5.4% compared to December 31, 2024.

66 Truist Financial Corporation

Risk Management

Truist seeks to maintain a comprehensive risk management framework supported by people, processes, and systems to identify, measure, monitor, manage, and report significant risks arising from its exposures and business activities. A key objective of the Company’s risk management framework is to promote the execution of strategic goals and objectives in alignment with its risk appetite.

Truist has developed a risk management taxonomy to provide for the identification and classification of risk elements at Truist. The objective of the risk management taxonomy is to define enterprise-wide categorization for elements used in risk management activities, establish consistently applied language, and enable data analysis, aggregation, and reporting.

Truist is committed to fostering a culture that supports the identification and escalation of risks across the organization. All teammates are responsible for upholding the Company’s purpose, mission, and values, and are encouraged to speak up if there is any activity or behavior that is inconsistent with the Company’s culture. The Truist code of ethics influences the Company’s decision making and informs teammates on how to act in the absence of specific guidance.

Truist seeks an appropriate return for the risk taken in its business operations. Risk-taking activities must be evaluated and prioritized to identify those that present attractive risk-adjusted returns, while preserving asset value and capital.

Market Risk

Market risk is the risk to current or anticipated earnings, capital, or economic value arising from changes in interest rates, spreads, or prices of financial instruments, and the corresponding impact on the composition of the balance sheet or trading and fair value positions. Market risk results from changes in the level, volatility, or correlations among financial market risk factors or prices, including interest rates, credit spreads, foreign exchange rates, equity, and commodity prices.

Truist’s most significant market risk exposure is to interest rate risk in its balance sheet; however, market risk also results from underlying product liquidity risk, price risk, and volatility risk of instruments held in Truist’s business units. Interest rate risk results from: differences between the timing of rate changes and the timing of cash flows associated with assets and liabilities (re-pricing risk); changing rate relationships among different yield curves affecting bank activities (basis risk); changing rate relationships across the spectrum of maturities (yield curve risk); and interest-related options inherently embedded in bank products (options risk).

The primary objectives of market risk management are to minimize adverse effects from changes in market risk factors on net interest income, net income, and capital, and to offset the risk of price changes for certain assets and liabilities recorded at fair value. At Truist, market risk management also includes the enterprise-wide IPV function.

Interest Rate Market Risk

As a financial institution, Truist is exposed to interest rate risk from assets, liabilities, and off-balance sheet positions. Truist primarily monitors this risk through two measurement types, (i) NII at risk and (ii) economic value of equity. Truist manages this risk with securities, derivatives, and broader asset liability management activities. Truist uses derivatives to hedge interest income variability of floating rate loans and to hedge valuation changes of long-term debt and investment securities.

IRR measurement is reported monthly through the ALCO. Monthly IRR reporting includes exposure and historical trends relative to risk limit scenarios, impacts to a wide range of rate scenarios, and sensitivity tests of key assumptions. IRR reporting is provided to the BRC quarterly.

IRR measurement is influenced by data, assumptions, and models. Due to their high sensitivity to market rates, mortgage (loan and security) prepayments leverage an industry model that results in varying prepayment speeds across rate scenarios. Prepayments for non-mortgage loans leverage a mix of dynamic models (varying results based on market rates) and static prepayment assumptions based on historical experience. Our analysis incorporates dynamic client deposit balance levels, the mix across product types, and deposit rate paid across alternate rate scenarios based on modeled changes in client and bank behavior. The use of dynamic deposit balance models results in rotation to higher cost funding products (e.g., CDs) when market rates increase and to lower cost funding products (e.g., non-maturity deposits) when market rates decrease. The use of dynamic rate paid models results in varying deposit betas based on the timing and conditions within market rate cycles.

Truist Financial Corporation 67

NII at risk measures the change in NII under alternate interest rate scenarios relative to Truist’s baseline scenario, which incorporates Truist’s current balance sheet and off-balance sheet hedges as well as expectations for new business over the forecast horizon. Truist’s baseline scenario relies on assumptions including expectations of the economy and interest rates – which are influenced by market conditions, new business volume, pricing, and client behavior. In measuring NII at risk, Truist assumes that changes in key factors, such as prepayments and deposit pricing (betas), largely move in line with those it has experienced in prior rate cycles. However, future behavior of key factors may vary from Truist’s assumptions. NII at risk measurement assumes, when applicable, that U.S. interest rates floor at zero and Truist does not take any balance sheet or hedging actions in response to the rate scenarios.

Truist evaluates a wide range of alternate scenarios including instantaneous and gradual as well as parallel and non-parallel changes in interest rates. The table below presents the estimated change to NII over the following 12 months for select parallel alternate scenarios, expressed as a percentage change relative to baseline NII.




Table 18: Interest Sensitivity Simulation Analysis
	Jun 30, 2025		Dec 31, 2024
Up 200bps gradual change in interest rates	2.0	%	1.1	%
Up 50bps instantaneous change in interest rates	0.8		0.6
Down 50bps instantaneous change in interest rates	(1.0)		(0.8)
Down 200bps gradual change in interest rates	(3.0)		(2.1)

Truist performs and monitors sensitivity tests of key assumptions used in NII risk including:

• Asset prepayment speeds

• New loan volume pricing spreads

• Interest-bearing deposit betas

• Non-interest-bearing demand deposit balance runoff, replaced by market funding

EVE measures changes in the economic value of Truist’s current balance sheet and off-balance sheet hedges under alternate rate scenarios relative to starting economic value. Truist uses EVE as a longer-term measure of interest rate risk. Truist performs and monitors sensitivity tests of key assumptions used in EVE including:

• Asset prepayment speeds

• Mortgage spreads (mortgage loan and security valuations)

• Interest-bearing deposit beta

• Deposit runoff / decay

Key assumption tests are generally performed by increasing and decreasing the assumption, whether static or dynamically modeled, relative to their respective starting values and then measuring the resulting impact to NII and EVE under baseline and alternate rate scenarios.

The identification and testing of key assumptions are influenced by market conditions and management views of key risks. The results of key assumption sensitivity tests are reported to ALCO and BRC at least quarterly. Key assumptions and their associated sensitivity tests are reviewed with ALCO and BRC at least annually.

Market Risk from Trading Activities

As a financial intermediary, Truist provides its clients access to derivatives, foreign exchange, and securities markets, which generate market risks. Trading market risk is managed using a multi-faceted risk management approach, which includes measuring risk using VaR, stress testing, and sensitivity analysis. Risk metrics are monitored against a suite of limits at both the trading desk level and at the aggregate portfolio level.

Truist is also subject to risk-based capital guidelines for market risk under the Market Risk Rule.

68 Truist Financial Corporation

Covered Trading Positions

Covered positions subject to the Market Risk Rule include trading assets and liabilities, specifically those held for the purpose of short-term resale or with the intent of benefiting from actual or expected short-term price movements or to lock in arbitrage profits. Truist’s trading portfolio of covered positions results primarily from market making and underwriting services for the Company’s clients, as well as associated risk mitigating hedging activity. The trading portfolio, measured in terms of VaR, consists primarily of four sub-portfolios of covered positions: (i) credit trading, (ii) fixed income securities, (iii) interest rate derivatives, and (iv) equity derivatives. As a market maker across different asset classes, Truist’s trading portfolio also contains other sub-portfolios, including foreign exchange, loan trading, and commodity derivatives; however, these portfolios do not generate material trading risk exposures.

Valuation policies and methodologies exist for all trading positions. Additionally, these positions are subject to independent price verification. See “Note 16. Derivative Financial Instruments,” “Note 15. Fair Value Disclosures,” and “Critical Accounting Policies” herein for discussion of valuation policies and methodologies.

Securitizations

As of June 30, 2025, the aggregate market value of on-balance sheet securitization positions subject to the Market Risk Rule, which were non-agency asset backed securities positions, was $93 million. Consistent with the Market Risk Rule requirements, the Company performs pre-purchase due diligence on each securitization position to identify the characteristics, including deal structure and the asset quality of the underlying assets, that materially affect valuation and performance. Securitization positions are subject to Truist’s risk management framework, which includes daily monitoring against a suite of limits. There were no off-balance sheet securitization positions during the reporting period.

Correlation Trading Positions

The trading portfolio of covered positions did not contain any correlation trading positions as of June 30, 2025.

VaR-Based Measures

VaR measures the potential loss of a given position or portfolio of positions at a specified confidence level and time horizon. Truist utilizes a historical VaR methodology to measure and aggregate risks across its covered trading positions. For risk management purposes, the VaR calculation is based on a historical simulation approach and measures the potential trading losses using a one-day holding period at a one-tail, 99% confidence level. For Market Risk Rule purposes, the Company calculates VaR using a 10-day holding period and a 99% confidence level. Due to inherent limitations of the VaR methodology, such as the assumption that past market behavior is indicative of future market performance, VaR is only one of several tools used to measure and manage market risk. Other tools used to manage market risk include stress testing, scenario analysis, and stop loss limits.

The trading portfolio’s VaR profile is influenced by a variety of factors, including the size and composition of the portfolio, market volatility, and the correlation between different positions. A portfolio of trading positions is typically less risky than the sum of the risk from each of the individual sub-portfolios, because, under normal market conditions, risk within each category partially offsets the exposure to other risk categories. The following table summarizes certain VaR-based measures for the three and six months ended June 30, 2025 and 2024. Average VaR measures in the three and six-months ended June 30, 2025 were higher compared to the three and six-months ended June 30, 2024 primarily due to tariff related market volatility in April.

Truist Financial Corporation 69


Table 19: VaR-based Measures
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
(Dollars in millions)	10-Day Holding Period		1-Day Holding Period		10-Day Holding Period		1-Day Holding Period		10-Day Holding Period		1-Day Holding Period		10-Day Holding Period		1-Day Holding Period
VaR-based Measures:
Maximum	$	63	$	13	$	25	$	7	$	63	$	15	$	27	$	12
Average	28		10		20		6		24		9		21		8
Minimum	16		5		14		5		9		4		14		5
Period-end	23		11		23		7		23		11		23		7
VaR by Risk Class:
Interest Rate Risk			6				7				6				7
Credit Spread Risk			6				10				6				10
Equity Price Risk			7				3				7				3
Foreign Exchange Risk			1				—				1				—
Portfolio Diversification			(8)				(13)				(8)				(13)
Period-end			11				7				11				7

Stressed VaR-based measures

Stressed VaR, another component of market risk capital, is calculated using the same internal models as used for the VaR-based measure. Stressed VaR is calculated over a ten-day holding period at a one-tail, 99% confidence level and employs a historical simulation approach based on a continuous twelve-month historical window selected to reflect a period of significant financial stress for the Company’s trading portfolio. The following table summarizes Stressed VaR-based measures:


Table 20: Stressed VaR-based Measures - 10 Day Holding Period
	Three Months Ended June 30,				Six Months Ended June 30,
(Dollars in millions)	2025		2024		2025		2024
Maximum	$	248	$	209	$	287	$	209
Average	125		148		153		131
Minimum	70		82		70		69
Period-end	96		154		96		154

Specific Risk Measures

Specific risk is a measure of idiosyncratic risk that could result from risk factors other than broad market movements (e.g., default or event risks). The Market Risk Rule provides fixed risk weights under a standardized measurement method while also allowing a model-based approach, subject to regulatory approval. Truist utilizes the standardized measurement method to calculate the specific risk component of market risk regulatory capital. As such, incremental risk capital requirements do not apply.

VaR Model Backtesting

In accordance with the Market Risk Rule, the Company evaluates the accuracy of its VaR model through daily backtesting by comparing aggregate daily trading gains and losses (excluding fees, commissions, reserves, net interest income, and intraday trading) from covered positions with the corresponding daily VaR-based measures generated by the model. As illustrated in the following graph, there was one Company-wide VaR backtesting exception during the twelve months ended June 30, 2025. The backtesting exception was driven by tariff-related market volatility. The total number of Company-wide VaR backtesting exceptions over the preceding twelve months is used to determine the multiplication factor for the VaR-based capital requirement under the Market Risk Rule. The capital multiplication factor increases from a minimum of three to a maximum of four, depending on the number of exceptions. All Company-wide VaR backtesting exceptions are reviewed in the context of VaR model use and performance. There was no change in the capital multiplication factor over the preceding twelve months.

70 Truist Financial Corporation

Model Risk Oversight

MRO is responsible for the independent model validation of all decision models, including trading market risk models. As part of ongoing monitoring efforts, the performance of all trading risk models is reviewed regularly to evaluate model performance with emerging developments in financial markets, assess evolving modeling approaches, and identify potential model enhancement.

Stress Testing

The Company uses a range of stress testing techniques to help monitor risks across trading desks and to augment standard daily VaR and other risk limits reporting. The stress testing framework is designed to quantify the impact of extreme, but plausible, stress scenarios that could lead to large, unexpected losses. Stress tests include simulations for risk factor sensitivities, historical repeats, and hypothetical scenarios with varying liquidity horizons of key risk factors. All trading positions within each applicable market risk category (i.e., interest rate risk, equity risk, foreign exchange rate risk, credit spread risk, and commodity price risk) are included in the Company’s stress testing framework. Management reviews stress testing scenarios and makes updates on an ongoing basis. Management also utilizes stress analyses to support the Company’s capital adequacy assessment standards. See the “Capital” section of MD&A for additional discussion of capital adequacy.

Liquidity

Liquidity is the ability to fund increases in assets and meet obligations as they come due, all without incurring unacceptable costs. In addition to the level of liquid assets, such as cash, cash equivalents, and highly liquid unencumbered securities, other factors affect the ability to meet liquidity needs, including access to a variety of funding sources, maintaining borrowing capacity, growing core deposits, loan repayment, and the ability to securitize or package loans for sale.

Truist has a liquidity risk management process designed to identify, measure, and monitor key liquidity risks to assess whether Truist is operating within its liquidity risk appetite. The liquidity risk appetite is outlined using a qualitative statement and more granular detailed risk appetite statements aligned to Truist’s risk taxonomy; risk statements form the basis for aligning risk appetite with risk management goals and strategy. Using the risk appetite statements, key risk indicators are developed that represent quantitative metrics which measure current risk exposure relative to Truist’s risk appetite, which help the Board and management monitor liquidity risk taking activity. Truist’s key risk indicators are designed to support the following objectives:

• maintain (i) a diversified, but client deposit centric, funding base, (ii) a level of liquid, readily monetized assets sufficient to satisfy business as usual and stressed cash flow needs across multiple liquidity horizons, and (iii) an appropriate level of contingent funding to meet any unexpected needs;

• limit concentration risk from individual, correlated counterparties, and funding concentrations in tenors that may negatively impact Truist from an unforeseen idiosyncratic or market event; and

• maintain sufficient liquidity in the holding company to serve as a source of strength to its subsidiaries.

Truist Financial Corporation 71

Internal Liquidity Stress Testing

Liquidity stress testing is conducted for Truist and Truist Bank using a variety of institution-specific and market-wide adverse scenarios. Each liquidity stress test scenario applies defined assumptions to execute sources and uses of liquidity over varying planning horizons. The types of expected liquidity uses during a stressed event may include deposit attrition, contractual maturities, reductions in unsecured and secured funding, increased draws on unfunded commitments, and the potential need to post additional collateral for derivatives. To mitigate liquidity outflows, Truist has identified sources of liquidity; however, access to these sources of liquidity could be affected within a stressed environment.

Truist maintains a liquidity buffer of cash on hand and highly liquid unencumbered securities that is designed to meet the projected 30-day net stressed cash-flow needs. Truist’s liquidity buffer is substantially the same in composition to what qualifies as HQLA under the LCR Rule. Truist periodically monetizes a representative sample of the liquidity buffer to assess operational readiness through available monetization channels.

Contingency Funding Plan

Truist has a contingency funding plan designed to address ongoing obligations and commitments, particularly in the event of a liquidity contraction. This plan is designed to examine and quantify the organization’s liquidity under the various internal liquidity stress scenarios and is periodically tested to assess the plan’s reliability. Additionally, the plan provides a framework for management and other teammates to follow in the event of a liquidity contraction or in anticipation of such an event. The plan addresses authority for activation and decision making, liquidity options, and the responsibilities of key departments in the event of a liquidity contraction. On a quarterly basis, Truist conducts testing of market access for alternative sources of funds (e.g. discount window, standing repo facility, etc.) to test operational readiness. On a periodic basis, Truist conducts a table-top test of the Contingency Funding Plan to assess reliability of the plan during liquidity stress events and to simulate the operational elements of the plan such as communications, coordination, and decision-making.

LCR, NSFR, and HQLA

The LCR rule requires that Truist and Truist Bank maintain an amount of eligible HQLA that is sufficient within the parameters of the rule to meet their estimated total net cash outflows over a prospective 30 calendar-day period of stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy operational requirements of the LCR rule. Truist and Truist Bank are subject to the Category III reduced LCR requirements. Truist held average weighted eligible HQLA of $93.0 billion and Truist’s average LCR was 110% for the three months ended June 30, 2025.

The NSFR rule defines a minimum amount of stable, long-term funding that Truist and Truist Bank must maintain in relation to their asset composition and off-balance sheet activities. Truist and Truist Bank are subject to the Category III reduced NSFR requirements. At June 30, 2025, Truist was compliant with this requirement.

Sources of Funds

Truist funds its balance sheet through diverse sources of funding including client deposits, secured and unsecured capital markets funding, and shareholders’ equity. Truist Bank’s primary source of funding is client deposits. Continued access to client deposits is highly dependent on public confidence in the stability of Truist Bank and its ability to return funds to clients when requested.

Truist Bank maintains a number of diverse funding sources to meet its liquidity requirements. These sources include unsecured borrowings from the capital markets through the issuance of senior or subordinated bank notes, institutional CDs, overnight and term Federal funds markets, and retail brokered CDs. Truist Bank also maintains access to secured borrowing sources, including FHLB advances, repurchase agreements, and the FRB discount window. Available investment securities could be pledged to create additional secured borrowing capacity. The following table presents a summary of Truist Bank’s available secured borrowing capacity and eligible cash at the FRB:


Table 21: Selected Liquidity Sources
(Dollars in millions)	Jun 30, 2025		Dec 31, 2024
Unused borrowing capacity:
FRB	$	80,374	$	72,040
FHLB	30,417		31,411
Available investment securities (at fair value)	75,441		68,212
Available secured borrowing capacity	186,232		171,663
Eligible cash at the FRB	35,082		33,717
Total	$	221,314	$	205,380

72 Truist Financial Corporation

At June 30, 2025, Truist Bank’s available secured borrowing capacity represented approximately 5.5 times the amount of wholesale funding maturities in one year or less.

Parent Company

The Parent Company serves as the primary source of capital for its operating subsidiaries. The Parent Company’s assets consist primarily of cash on deposit with Truist Bank, equity investments in subsidiaries, advances to subsidiaries, and notes receivable from subsidiaries. The principal obligations of the Parent Company are payments on long-term debt. The main sources of funds for the Parent Company are dividends and management fees from subsidiaries, repayments of advances to subsidiaries, and proceeds from the issuance of equity and long-term debt. The primary uses of funds by the Parent Company are investments in subsidiaries, advances to subsidiaries, dividend payments to common and preferred shareholders, repurchases of common stock, payments on and, from time-to-time, potential repurchases or redemptions of long-term debt of the Parent Company (as may be permitted by the terms of each respective series), and the redemption of preferred stock. See “Note 22. Parent Company Financial Information” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding dividends from subsidiaries and debt transactions.

Access to funding at the Parent Company is more sensitive to market disruptions. Therefore, Truist manages cash levels at the Parent Company to exceed a minimum of 12 months of projected cash outflows. In determining the buffer, Truist considers cash requirements for common and preferred dividends, unfunded commitments to affiliates, serving as a source of strength to Truist Bank, and being able to withstand sustained market disruptions that could limit access to the capital markets. At June 30, 2025, the Parent Company held cash on hand to meet these requirements.

Credit Ratings

Credit ratings are forward-looking opinions of rating agencies as to the Company’s ability to meet its financial commitments and repay its securities and obligations in accordance with their terms of issuance. Credit ratings influence both borrowing costs and access to the capital markets. The Company’s credit ratings are continuously monitored by the rating agencies and are subject to change at any time. As Truist seeks to maintain high-quality credit ratings, management meets with the major rating agencies on a regular basis to provide financial and business updates and to discuss current outlooks and trends. See Item 1A, “Risk Factors” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional information regarding factors that influence credit ratings and potential risks that could materialize in the event of downgrade in the Company’s credit ratings.

The following table presents the credit ratings and outlooks of the Parent Company and Truist Bank as of June 30, 2025:

Table 22: Credit Ratings of Truist Financial Corporation and Truist Bank

Moody’s

S&P

Fitch

DBRS Morningstar

Truist Financial Corporation:

Issuer

Baa1

A- / A-2

A / F1

AAL / R-1M

Senior unsecured

Baa1

A-

AAL

Subordinated

Baa1

BBB+

Preferred stock

Baa3(hyb)

BBB-

Truist Bank:

Issuer

A / A-1

A / F1

AA / R-1H

Senior unsecured

Deposits

A1 / P-1

A+ / F1

Subordinated

(P) A3

A-

AAL

Ratings outlook:

Credit trend

Stable

Truist Financial Corporation 73

Capital

The maintenance of appropriate levels of capital is a management priority and is monitored on a regular basis. Truist’s principal goals related to the maintenance of capital are to provide adequate capital to support Truist’s risk profile consistent with the Board-approved risk appetite, provide financial flexibility to support future growth and client needs, comply with relevant laws, regulations, and supervisory guidance, achieve optimal credit ratings for Truist, for the Parent Company to remain a source of strength for the Parent Company’s subsidiaries, and provide a competitive return to shareholders. Risk-based capital ratios, which include CET1 capital, Tier 1 capital, and Total capital are calculated based on regulatory guidance related to the measurement of capital and risk-weighted assets.

Management regularly monitors the capital position of Truist on both a consolidated and bank-level basis. In this regard, management’s objective is to maintain capital at levels that are in excess of internal capital limits, which are above the regulatory “well-capitalized” minimums. Truist also regularly performs stress testing on its capital levels and is required to periodically submit the Company’s capital plans and stress testing results to the banking regulators. Management has implemented internal stress capital ratio minimums that serve as limits which are measured under internally-developed stress testing scenarios to evaluate whether capital ratios calculated under hypothetical stress, and after the effect of alternative capital actions, are likely to remain above internal stressed minimums. Breaches of internal capital limits or projected breaches of internal stress capital ratio minimums under hypothetical stress result in the activation of Truist’s capital contingency plan.


Table 23: Capital Requirements
	Minimum Capital		Well-Capitalized				Minimum Capital Plus Stress Capital Buffer (1)
			Truist		Truist Bank
CET1	4.5	%	NA		6.5	%	7.3	%
Tier 1 capital	6.0		6.0	%	8.0		8.8
Total capital	8.0		10.0		10.0		10.8
Leverage ratio	4.0		NA		5.0		NA
Supplementary leverage ratio	3.0		NA		NA		NA

(1) Reflects a SCB requirement of 2.8% applicable to Truist as of June 30, 2025. Truist’s SCB requirement, received in the 2024 CCAR process, is effective from October 1, 2024 to September 30, 2025. Under the 2025 CCAR process, Truist was notified its preliminary SCB requirement would be 2.5% from October 1, 2025 through September 30, 2026.

The Parent Company’s capital ratios are presented in the following table:


Table 24: Capital Ratios - Truist Financial Corporation
(Dollars in millions)	Jun 30, 2025			Dec 31, 2024
Risk-based:	(preliminary)
CET1	11.0		%	11.5		%
Tier 1 capital	12.3			12.9
Total capital	14.3			15.0
Leverage ratio	10.2			10.5
Supplementary leverage ratio	8.5			8.8
Risk-weighted assets	$	434,892		$	418,337

Capital Contingency Plan

In the event of a realized or potential capital shortfall, Truist has a capital contingency plan that is designed to facilitate improvement of the Company’s capital position through the execution of specific contingency actions which either increase capital, decrease risk-weighted assets, or both. The plan provides a framework designed to monitor for the occurrence of these events by establishing mechanisms to detect capital contraction, including market and economic stress that could adversely impact the Company’s capital position. The plan also establishes governance protocols for activation or deactivation and decision making, lists capital contingency options and associated key information, and addresses the responsibilities of key departments.

Capital ratios remained strong compared to the regulatory requirements for well capitalized banks. Truist’s CET1 ratio was 11.0% as of June 30, 2025, down 30 basis points compared to March 31, 2025 due to capital returned to shareholders and an increase in risk-weighted assets, partially offset by current quarter earnings.

Truist declared common dividends of $0.52 per share during the second quarter of 2025 and repurchased $750 million of common stock. For the second quarter of 2025, the dividend payout ratio was 57%, and the total payout ratio was 121%.

74 Truist Financial Corporation

Truist completed the 2025 CCAR process and received a preliminary SCB requirement of 2.5% for the period October 1, 2025 to September 30, 2026, down 30 basis points from the SCB requirement for the period October 1, 2024 to September 30, 2025. The FRB will provide Truist with its final SCB requirement by August 31, 2025.

Share Repurchase Activity


Table 25: Share Repurchase Activity
(Dollars in millions, except per share data, shares in thousands)	Total Number of Shares Purchased (1)	Average Price Paid Per Share (2)(3)		Total Number of Shares Purchased as part of Publicly Announced Plans	Approximate Dollar Value of Shares that may yet be Purchased Under the Plans (3)(4)
April 1, 2025 to April 30, 2025	20,209	$	37.11	20,209	$	2,750
May 1, 2025 to May 31, 2025	—	—		—	2,750
June 1, 2025 to June 30, 2025	—	—		—	2,750
Total	20,209	$	37.11	20,209

(1) Includes shares exchanged or surrendered in connection with the exercise of equity-based awards under equity-based compensation plans.

(2) Excludes commissions.

(3) Excludes excise taxes on share repurchases.

(4) In June 2024, Truist announced that the Board had authorized the repurchase of up to $5.0 billion of common stock beginning in the third quarter of 2024 through 2026 as part of Truist’s overall capital distribution strategy. Repurchased shares revert to the status of authorized and unissued shares upon repurchase. The share-repurchase program enables Truist to acquire shares through open-market purchases or privately negotiated transactions, including through Rule 10b5-1 plans and other programs, at the discretion of management and on terms (including quantity, timing, and price) that management determines to be advisable. Actions in connection with the share-repurchase program will be subject to various factors, including Truist's capital and liquidity positions and related internal frameworks, 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), Truist's financial and operational performance, alternative uses of capital, the trading price of Truist's common stock, and general market conditions. The share-repurchase program does not obligate Truist to acquire a specific dollar amount or number of shares and may be extended, modified, or discontinued at any time.

Regulatory and Supervisory Update

We are subject to significant regulatory frameworks that affect the products and services that we may offer and the manner in which we may offer them, the risks that we may take, the ways in which we may operate, and the corporate and financial actions that we may take.

The description below summarizes an update to the regulatory and supervisory framework applicable to Truist since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024. This update does not summarize all actual, proposed, or possible changes in statutes, regulations, and other laws applicable to Truist and is not intended to be a substitute for those laws. Refer to “Regulatory and Supervisory Considerations” in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024 for additional disclosures.

In December 2024, the CFPB issued a final rule to financial institutions with more than $10 billion in assets to either limit the cost of overdraft services to the amount of their costs and losses or adhere to a fee cap of $5. The rule was expected to take effect on October 1, 2025. In May 2025, the President signed a Congressional Review Act resolution to overturn this rule. As a result, the rule will not become effective and banks with more than $10 billion in assets, including Truist Bank, will not be required to change their overdraft fee structures to comply with the rule.

Truist Financial Corporation 75

Critical Accounting Policies

The accounting and reporting policies of Truist are in accordance with GAAP and conform to the accounting and reporting guidelines prescribed by bank regulatory authorities. Truist’s financial position and results of operations are affected by management’s application of accounting policies, including estimates, assumptions, and judgments made to arrive at the carrying value of assets and liabilities, and amounts reported for revenues and expenses. Different assumptions in the application of these policies could result in material changes in the consolidated financial position or consolidated results of operations, and related disclosures. Material estimates that are particularly susceptible to significant change include the determination of the ACL; determination of fair value for securities, MSRs, trading assets and liabilities, and derivative assets and liabilities; goodwill and other intangible assets; income taxes; and pension and postretirement benefit obligations. Understanding Truist’s accounting policies is fundamental to understanding the consolidated financial position and consolidated results of operations. The critical accounting policies are discussed in MD&A in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024. Significant accounting policies and changes in accounting principles and effects of new accounting pronouncements are discussed in “Note 1. Basis of Presentation” in Form 10-K for the year ended December 31, 2024. Disclosures regarding the effects of new accounting pronouncements are included in “Note 1. Basis of Presentation” in this report. There have been no other changes to the critical accounting policies during 2025.

Goodwill and Other Intangible Assets

The Company’s three reporting units with goodwill balances were CSBB, WB, and Wealth. The Company performs goodwill impairment analysis annually as of October 1 or more often if events or circumstances indicate that it is more-likely-than-not that the fair value of a reporting unit is below its carrying value.

The quantitative valuations of these reporting units use the income approach and a market-based approach, each weighted at 50%. The inputs and assumptions specific to each reporting unit are incorporated in the valuations, including projections of future cash flows, discount rates, and applicable valuation multiples based on the comparable public company information. The income approach utilizes a discounted cash flow analysis of multi-year financial forecasts developed for each reporting unit by considering several inputs and assumptions such as net interest margin, expected credit losses, noninterest income, noninterest expense, and required capital. The market-based approach utilizes comparable public company information, key valuation multiples, and considers a market control premium associated with cost synergies and other cash flow benefits that arise from obtaining control over a reporting unit, and guideline transactions, when applicable.

Truist also assesses the reasonableness of the aggregate estimated fair value of the reporting units by comparison to its market capitalization over a reasonable period of time, including consideration of expected acquirer expense synergies, historic bank control premiums, and the current market.

The projection of net interest margin and noninterest expense are the most significant inputs to the financial projections of the CSBB, WB, and Wealth reporting units. The long-term growth rate used in determining the terminal value of each reporting unit was 3% as of October 1, 2024, based on management’s assessment of the minimum expected terminal growth rate of each reporting unit. Discount rates are estimated based on the Capital Asset Pricing Model, which considers the risk-free interest rate, market risk premium, beta, and unsystematic risk adjustments specific to a particular reporting unit. The discount rates are also calibrated based on risks related to the projected cash flows of each reporting unit. The discount rates utilized for the CSBB, Wealth, and WB reporting units as of October 1, 2024 were 12.5%, 12.0%, and 10.5%, respectively.

Based on the results of the Company’s annual impairment analyses, the Company concluded that the fair values of the CSBB, WB and Wealth reporting units exceeded their respective carrying values; therefore, there was no goodwill impairment. However, for the WB reporting unit, the fair value of the reporting unit exceeded its carrying value by approximately 10%, indicating that the goodwill of the WB reporting unit may remain at risk of impairment. Circumstances that could negatively impact the fair value for the WB reporting unit in the future include a sustained decrease in Truist’s stock price, a decline in industry peer multiples, an increase in the applicable discount rate, and deterioration in the reporting unit’s forecast.

The estimated fair value of a reporting unit is highly sensitive to changes in management’s estimates and assumptions; therefore, in some instances, changes in these assumptions could impact whether the fair value of a reporting unit is greater than its carrying value. The valuation of the WB reporting unit as of October 1, 2024 indicated that if the discount rate were increased more than 100 basis points, with other cash flow assumptions unchanged, the reporting unit’s fair value would be less than its carrying value, indicating a goodwill impairment under the income approach. Ultimately, future potential changes in management’s assumptions may impact the estimated fair value of a reporting unit and cause the fair value of the reporting unit to be below its carrying value. Additionally, a reporting unit’s carrying value could change based on market conditions, change in the underlying makeup of the reporting unit, or the risk profile of those reporting units, which could impact whether the fair value of a reporting unit is less than carrying value.

76 Truist Financial Corporation

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, management of the Company, under the supervision and with the participation of the Company’s CEO and CFO, carried out an evaluation of the effectiveness of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by the report.

Changes in Internal Control over Financial Reporting

Management of Truist is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act. The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.

There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Refer to the Legal Proceedings and Other Matters section in “Note 14. Commitments and Contingencies,” which is incorporated by reference into this item.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in Truist’s Annual Report on Form 10-K for the year ended December 31, 2024. Additional risks and uncertainties not currently known to Truist or that management has deemed to be immaterial also may materially adversely affect Truist’s business, financial condition, or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Refer to the Share Repurchase Activity section in the MD&A, which is incorporated by reference into this item.

ITEM 5. OTHER INFORMATION

(c) During the three months ended June 30, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Truist Financial Corporation 77

ITEM 6. EXHIBITS

Exhibit No.

Description

Location

2.1

Equity Interest Purchase Agreement, dated as of February 20, 2024, by and among Trident Butterfly Investor, Inc., Panther Blocker I, Inc., Panther Blocker II, Inc., Truist Bank, Truist TIH Holdings, Inc., Truist TIH Partners, Inc., TIH Management Holdings, LLC, TIH Management Holdings II, LLC and Truist Insurance Holdings, LLC.

Incorporated herein by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed February 20, 2024.

2.2

Amendment No. 1 to Equity Interest Purchase Agreement, dated as of May 6, 2024, by and among Trident Butterfly Investor, Inc., Panther Blocker I, Inc., Panther Blocker II, Inc., Truist Bank, Truist TIH Holdings, Inc., Truist TIH Partners, Inc., TIH Management Holdings, LLC, TIH Management Holdings II, LLC and Truist Insurance Holdings, LLC

Incorporated herein by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed May 10, 2024.

10.1*

Truist Financial Corporation Non-Qualified Defined Contribution Plan (January 1, 2025 Restatement)

Filed herewith.

31.1

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed herewith.

31.2

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Filed herewith.

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Filed herewith.

101.INS

XBRL Instance Document – the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Filed herewith.

101.SCH

XBRL Taxonomy Extension Schema.

Filed herewith.

101.CAL

XBRL Taxonomy Extension Calculation Linkbase.

Filed herewith.

101.LAB

XBRL Taxonomy Extension Label Linkbase.

Filed herewith.

101.PRE

XBRL Taxonomy Extension Presentation Linkbase.

Filed herewith.

101.DEF

XBRL Taxonomy Definition Linkbase.

Filed herewith.

104

Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101).

Filed herewith.

* Management compensatory plan or arrangement.

78 Truist Financial Corporation

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

TRUIST FINANCIAL CORPORATION

(Registrant)

Date:

July 31, 2025

By:

/s/ Michael B. Maguire

Michael B. Maguire

Senior Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Date:

July 31, 2025

By:

/s/ Cynthia B. Powell

Cynthia B. Powell

Executive Vice President and Corporate Controller

(Principal Accounting Officer)

Truist Financial Corporation 79

TABLE OF CONTENTS

Item 1. Financial Statements Note 1. Basis Of Presentation Note 2. Discontinued Operations Note 3. Securities Financing Activities Note 4. Investment Securities Note 5. Loans and Acl Note 6. Goodwill and Other Intangible Assets Note 7. Loan Servicing Note 8. Other Assets and Liabilities Note 9. Borrowings Note 10. Shareholders Equity Note 11. Aoci Note 12. Income Taxes Note 13. Benefit Plans Note 14. Commitments and Contingencies Note 15. Fair Value Disclosures Note 16. Derivative Financial Instruments Note 17. Computation Of Eps Note 18. Operating Segments Item 2. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 4. Controls and Procedures Part II. Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 5. Other Information Item 6. Exhibits

Exhibits

2.1 Equity Interest Purchase Agreement, dated as of February 20, 2024, by and among Trident Butterfly Investor, Inc., Panther Blocker I, Inc., Panther Blocker II, Inc., Truist Bank, Truist TIH Holdings, Inc., Truist TIH Partners, Inc., TIH Management Holdings, LLC, TIH Management Holdings II, LLC and Truist Insurance Holdings, LLC. Incorporated herein by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed February 20, 2024. 2.2 Amendment No. 1 to Equity Interest Purchase Agreement, dated as of May 6, 2024, by and among Trident Butterfly Investor, Inc., Panther Blocker I, Inc., Panther Blocker II, Inc., Truist Bank, Truist TIH Holdings, Inc., Truist TIH Partners, Inc., TIH Management Holdings, LLC, TIH Management Holdings II, LLC and Truist Insurance Holdings, LLC Incorporated herein by reference to Exhibit 2.1 of the Current Report on Form 8-K, filed May 10, 2024. 10.1* Truist Financial Corporation Non-Qualified Defined Contribution Plan (January 1, 2025 Restatement) Filed herewith. 31.1 Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. 31.2 Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith. 32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.

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TFC 10-Q Quarter ended June 30, 2025

Exhibits